Job transitions from client A to client C

[Astraljump]

I am currently working with Company A who is a consulting company and is in contract with the PRIME VENDOR B. PRIME VENDOR B is in a MSA (Master Service Agreement) with client C

Me (employee) >> Company A >> Prime Vendor B >> Client C

FYI I have signed an employment agreement with company A which states that they are liable to charge me loss of revenue if I break the contract and join the client directly.

Client C who is the end client has offered me a full time position and Prime Vendor B is ok with it as the MSA is to have a right to hire clause after a consultant / contractor finishes minimum of 6 months of work. However, the company A who doesn't seem to have any connection with company C is asking to pay money in form of penalty for the loss of revenue for the remaining term of the contract. In an event if I am unable to pay for the loss of revenue he has indicated that a law suit may follow to collect the penalty.

Questions: Am I required to pay any sum to company A when company C is trying to hire me? Have I breached the contract in any way?

 

[army judge]

If you and A can't agree, he claims he'll sue.
You don't have to pay because another person demands you pay.
A judge can issue an order you owe A $5,000, if A prevails at trial.
Until a trial happens and you lose, all A has is chatter.
You still don't have to pay.
A has to chase you and try to collect.
In essence, you get decide how great a risk you wish to take.
But be careful, burning bridges can get you trapped alone and without friends.

 

[Astraljump]

Thanks for your advise. However, i am confused as Company A does not have any MSA or direct connection with Client C and so I am not breaching any contract by joining the direct client. For Company A the direct client will be Prime Vendor B and I am not joining the Vendor B, but will be joining client C. So, how am I liable to pay anything to company A?

 

[cbg]

When you showed this agreement to an attorney in your state and asked him this question after he had been able to read the agreement in full, what did he say?

 

[army judge]

Thanks for your advise. However, i am confused as Company A does not have any MSA or direct connection with Client C and so I am not breaching any contract by joining the direct client. For Company A the direct client will be Prime Vendor B and I am not joining the Vendor B, but will be joining client C. So, how am I liable to pay anything to company A?

I never said you were liable for anything.
I simply supposed A might carry out the threat to sue.
If you are sued, you defend.
You can't prevent being sued.

If you are sued, you'll learn why A belivs you breached the contract.
There's no way you or I could know what A will do, until it has been done.
If A sues you, you'll then learn the theory of his case.
If A never sues you, anything else is simply speculation and Chicken Little rantings, "the sky is falling".

No one is liable for anything unless a court issues an award to the opposing party.
Even if such an award is ever issued, liability isn't absolute because the then party with the judgment has to stalk the other party and attempt to wrest away the award from the party declared liable.
That isn't easy, in fact, suing is easier than collecting.

 

[Betty3]

Have the agreement reviewed by an employment or contract attorney in your area. That's your best bet.