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Summary:  Katz Law Group represent the Plaintiff in this case, Data Pioneer, Inc. (“Data Pioneer”). Data Pioneer provides professional consulting services. This case stems from a subcontractor agreement between Boston Technology Corporation (“Boston Technology), the Defendant and Plaintiff in counterclaim, with Data Pioneer to furnish employees to perform various professional services as subcontractors.

Data Pioneer filed suit against Boston Technology on or about April 27, 2012 for failure to make payments due to Data Pioneer in the amount of $18,400.00, fees for services provided by Data Pioneer on behalf of Boston Technology. Subsequently, Boston Technology filed and Answer and Counterclaim against Data Pioneer alleging that Data Pioneer breached the subcontractor agreement when an employee resigned from Data Pioneer to work as an employee for Alere in Ramsey, N.J.. Alere is a non-party entity and a client of CareerDevelopers also based out of N.J. CareerDevelopers was a client of Boston Technology. 

To understand the basis for this case, it is important to outline the following:

  • A non-party entity, Alere, in Ramsey, N.J., contracted a non-party entity, CareerDevelopers also based out of N.J. for services. The services to be provided would be performed specifically by a Sr. Oracle Data Base Administrator that would be furnished to Alere.
  • CareerDevelopers contracted with Boston Technology, who contracted with Data Pioneer to furnish said employee to conduct said services at Alere.
  • Data Pioneer was the employer of Macharla Chander (“Chander”) who was the employee who provided said services at Alere through these channels.
  • At some point during Chander's employment at Alere, he elected to accept a position as an employee with Alere and gave notice to Data Pioneer.

Boston Technology alleges that Chander accepting a position with Alere was in breach of the Agreement between Data Pioneer and Boston Technology. Data Pioneer's position is that the Agreement does not prevent employees of Data Pioneer from accepting a position with Alere. It would only prevent Data Pioneer from accepting, hiring or soliciting employees of Boston Technology or a client of Boston Technology. What in fact transpired in this case was that Data Pioneer lost an employee, Chander, to the client of Boston Technology (Alere), not vice versa. Boston Technology claims that Data Pioneer was in breach of the contract and therefore, is not responsible for payment due is the underlying dispute in this case.

Result: Katz Law Group client was awarded damages of $18,400.

 Arbitration Award

David Katz

Attorney David S.Katz is the founder and managing partner of the Katz Law Group, P.C., located in Westborough, Massachusetts...

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