Under Bidding Question

[Brett A]

Jurisdiction

Louisiana

Hi there,

I live in Louisiana and work for a local company (A) that's INC-incorporated. There is one owner and some employees. I essentially run the business. The owner just collects a check. The business has been over charging a company (B) for our related work for at least a couple of years. Not that it matters about over billing, because the said company (B) either doesn't care or must not worry about it. This company (B) is currently our only client.

I've got my own fledgling company in the same field of logistics. Because I know how much the owner is charging a company (B), is it breaking any laws if I break from my current role and also bid on the same company (B)?? I did not sign any non-compete clause or anything else that would keep me from working for another company, though the owner tried years ago to have all employees sign such a document. No one signed.

To me, it would kind of feel like insider trading or something like that, since I know how much to under bid. I still might not do it because of moral issues, but I am asking the question. Would I be breaking any laws?
Thanks....Brett

 

[zddoodah]

The business has been over charging a company (B) for our related work for at least a couple of years.

Without any actual facts, this conclusory allegation is rather meaningless.

Because I know how much the owner is charging a company (B), is it breaking any laws if I break from my current role and also bid on the same company (B)?

So...you want to steal your current employer's only client? Are you planning on quitting your job? If not, how are you going to do whatever it is that your current employer does for Company B? In any event, without knowing anything about the two company's or the nature of the work being done, no one can intelligently reach a conclusion with certainty, but it probably wouldn't break any laws. However, it might give your current employer a basis to sue you.

In my view, it would be monumentally foolish to do this without advice from a local attorney who has been fully apprized of all relevant facts.

 

[PayrollHRGuy]

What are you going to do if the client just makes a call to your boss?

 

[adjusterjack]

To me, it would kind of feel like insider trading or something like that, since I know how much to under bid. I still might not do it because of moral issues, but I am asking the question. Would I be breaking any laws?

I don't know if there are any criminal statutes that address your reprehensible plan, but it's certainly something you are likely to get sued for. A lawsuit could cost you tens of thousands in lawyer fees which is likely to put you out of business and bankrupt while your former employer replaces you and continues to work with Company B.

Even if the court absolves you of responsible you still get nothing for it but a big lawyer bill, no job, and no client.

In my view it would be monumentally foolish to do this. Period.

 

[Brett A]

So...you want to steal your current employer's only client? Are you planning on quitting your job? If not, how are you going to do whatever it is that your current employer does for Company B? However, it might give your current employer a basis to sue you.

Ironically, the idea came from the owner, who did this very thing to their last company. I wouldn't need to quit, the current contract would just end. As mentioned, I run the business, so there wouldn't be issues with continuing same service. Another company can come in and bid on the contract. They couldn't get sued, but this is why I'm here asking the question. If there's a chance to get sued (Because I know inside info), I wouldn't pursue it.

 

[Brett A]

What are you going to do if the client just makes a call to your boss?

Why would they, if I could save them 10's of thousands ($). But, to your question, if they did call....I guess I'd have to deal with it. As mentioned, to zddoodah, if getting sued is an option, that's not an option I want to mess with.

 

[Brett A]

I don't know if there are any criminal statutes that address your reprehensible plan, but it's certainly something you are likely to get sued for.

You would probably not think it so reprehensible if you knew all that I do and have done for this company, above and beyond, to keep the doors open for the last 3 years, and not get the compensation for doing such. But, as you and others have mentioned, it wouldn't be worth getting sued, which is why I'm here asking questions in the first place. Luckily, I do still like what I do here, so no need to look for another job at this time. Owning the business would have been a different story.

 

[PayrollHRGuy]

Why would they, if I could save them 10's of thousands ($). But, to your question, if they did call....I guess I'd have to deal with it. As mentioned, to zddoodah, if getting sued is an option, that's not an option I want to mess with.

For the same reason they don't seem to be worried about being overcharged. Whatever that is.

And just because there isn't a law or you haven't signed a non-compete agreement doesn't mean you can't be sued. It may mean they can't when but they could cost you lots of money in court. This will suck for someone without a job.

 

[adjusterjack]

Ironically, the idea came from the owner, who did this very thing to their last company.

Oh, the "he did it before, so I did it to him" defense.

You would probably not think it so reprehensible if you knew all that I do and have done for this company, above and beyond, to keep the doors open for the last 3 years, and not get the compensation for doing such.

If you worked your tail off without appropriate compensation, that's on you.

Owning the business would have been a different story.

Why not offer to buy the contract (or the business) from your employer? That would be honest and everybody would be happy if he says OK.

 

[zddoodah]

I wouldn't need to quit, the current contract would just end. As mentioned, I run the business, so there wouldn't be issues with continuing same service. Another company can come in and bid on the contract. They couldn't get sued, but this is why I'm here asking the question. If there's a chance to get sued (Because I know inside info), I wouldn't pursue it.

Is this basically a part time gig? If not, I don't see how you could keep the current job for the current employer and, after the client switch, ALSO do the same job as your own boss. But that's not legally relevant.

Getting sued is always a possibility. Based on what you've written, I'd say your employer would have a pretty solid case.