Ex-Employer (by the name of SRG) Lawsuit for a breach of Contract

ragukripali

Registered Users (C)
----------The case-----
I was interviewed in Toronto by an company from New Jersey by the name of "Software Research Group" (SRG) on the 17th of December, 2005. I was offered a position on the spot for 45000$. At that time, I was unemployed and was looking for work; I accepted.

I came from Canada on Jan-14-2006 on a TN1 (NAFTA) status through them. After coming to the US SRG made me to sign a contract stating that i would work with him for a period of at least 1 year, also would not join any vendors or clients introduced by the company, otherwise i would pay upto $25000 in damages.

SRG had offered me a very low salary of just $45000, even though I am holding two degrees and also have good experience from Canada. Moreover SRG didn't start paying me any salary till Feb-16-2006. Feb 16 was the date I started working for a client "Fannie Mae" in Washington DC. In this assignment, I worked at Fannie Mae site through another vendor company as an SRG's employee.

I started working in DC for these unacceptable wages, and I was not even able to meet my expenses. One day at work, I saw my Purchase order for 84$ an hour. Taking so much money for my services and paying me 45K was not acceptable. I contacted the employer for a raise, but that was no vain. I sent a resignation letter on May 7th, giving one month notice to the company CEO and left the company on June 7, 2006. The other vendor company who I was working through in my assignment, offered me to join. I joined the vendor company.

The CEO never replied to my resignation letter. Although they knew that I had left. SRG did not even pay me for the last 7 days. After 5 months of leaving company, SRG realized that I was working with the same vendor, and they sent me an email to come back and work through them otherwise the company will take legal action. My vendor company contacted SRG and told them to not to bother their employee.

I thought that this was the end of SRG's issue. But unfortunately not. I finished my assignment with Fannie Mae recently in May 2007. I left the vendor company, and started another consulting assignment in Washington DC with another employer. Its been almost a year that I have left SRG, and today I learnt from my relative in Maryland that there have been summons sent in my name from SRG (Received on April 27, 2007). I viewed the summons and they are suing for breach of contract since I left the company before a period of one year.

The last communication from SRG was a W2, which I received in January of 2007; SRG has my updated address in Virginia on which the W2 was sent and that was where they also sent paystubs. But the summons were sent to a MD address, on which I never lived. I wouldn't even have know about these
summons, if the people residing there were my relatives.

Should I even acknowledge receiving the summons? For the case to proceed shouldn't the summons be sent to my correct address? Can I ignore these? Can you give me advice on how to handle this. What can I do to handle this for now?

Thanks
Ragu

p.s: Also some more information, on how this has affected me:

They gave us the contract to sign when we have made the leap from Canada to come to New Jersey. At that time, you pretty much will sign anything. It was very stressful to sign a contract heavily favoring the employer at that time, but I had no choice.

They treated me very badly and gave a lot of emotional stress keeping me in small guest room making me share a single room by three/four people.

They did not pay me for one and half month when I moved from Canada to NJ.

They did not pay me for the last 7 days of work.

Every month end they did not pay; it would require numerous days and many emails back n forth to get payroll sorted out every month. I have record of this - once even the CFO apologized for it in the email. I am family man and getting not paid on time is very stressful.
 
Messing around with employees wages is bad news in any state. It's worse than working illegally. It sounds like you have an interesting and strong case if you can document everything. In addition to that certain non-compete contracts are illegal.

Get an attorney ASAP.
 
You are right - I should get an attorney. But the attorney consultation begins with 250/350$ an hour and then spending 20,000$ as a retainer.

To get started on legal grounds, we are talking about this much money.

Further, I just found out that there are other people and some friends who have received identical notices. They are already negotiating and the employer is agreeing to 10,000$. Should I also do that instead of hiring a lawyer? Any advice?


One biggest question I have is - Am I liable for the summons, even if I am not properly served (i.e.: summons delivered to an address where I never lived?)
 
SRG should be responded to in-kind..

Ragu-

This is not the first story that I have heard about abuses of contractors during fannie mae's restatement activities.

I would suggest that your best course of action is not primarily a legal response.

Realize that the best leverage that you have is to make SRG's life difficult. Your best claim is around the lack of pay, and tell the story that this lack of pay is why you had to quit. This set in motion SRG's legal dispute which is of their own making.. if they had just paid you and paid you on time. (cheap bastards)

I would suggest that you contact Fannie's OCJ (office of corporate justice) and lodge a complaint against SRG. You can do this annonymously if you want. Just call Fannie's main number and ask for OCJ.
Do *not* tell SRG that you are doing this - you can always tell them later. Play up the lack of pay and mistreatment.

In parallel, you should contact Fannie Mae HR & Procurement and tell them about this situation (lack of pay & mistreatment). Fannie Mae is very risk adverse and will probably tell SRG that they are likely not to get future work. Additionally, Fannie is very pissed at contractors who do not paying subs.. so I would play up this part of the story. You may want tell SRG that you did this - after the fact.

I wont go into how I know all this, but clearly I have some experience with FannieMae. I am not an attorney, and you should probably consider all options. However, in this case I believe that SRG's harassment should be responded to in kind.

DC & Virginia are "right to work" states.

Best of luck & down with evil people!
 
Thank you BlackHawk

I agree - I got some advice from my current employer along the same lines.
I appreciate you spending some time on this and thank you for your support.
 
Can anyone please shed some advice on this part??

"" Summons were not sent on my address - they were sent to an address where I never lived. Unluckily (I should say) I was able to see them, since the guy who lived there somehow knew me. ""

Should I even acknowledge receiving the summons? For the case to proceed shouldn't the summons be sent to my correct address? Can I ignore this for now? Can someone give me advice on this.
 
My take, and I'm not a lawyer, in any way, shape, form or education, is that you were not properly served these papers.
However, you have seen them so you <b>may be out of luck</b> using the "sent to wrong address" approach.
Unlike some other posters my advice would be to00000 find a lawyer and counter sue. You probably should have started a govt, state and federal, paper trail the first month you began having pay issues with this employer.
F
 
My take, and I'm not a lawyer, in any way, shape, form or education, is that you were not properly served these papers. However, you have seen them so you may be out of luck using the "sent to wrong address" approach.
Unlike some other posters my advice would be to find a lawyer and counter sue. You probably should have started a govt, state and federal, paper trail the first month you began having pay issues with this employer.
 
I am not a legal advisor, but wanting to help.

Once you signed the contract it should state that you will get paid on certain date of the month. Once SRG didn't meet that time, the contract is already breached by them, and IMHO, revoked. So any later action -as you leaving the company- is not bound to any contract, including the part about paying the $25000. So basically the contract is you work and they pay you ON TIME. Once this did not happen, there is no contract and you might be the one who should sue them for breaching the contract.

I would counter-sue them man..
 
Going to Canada

I received a similar notice, but I have not been served properly and I am in the process of moving to Canada for a job. I am a Canadian citizen. Can anyone suggest if I should worry about this, since I am not going to be here.
What implications does it have, If I ever return after 2-3 years? Can someone shed some light -
Thank you!
 
If the summons was served to you and you do not show up, the plaintiff by default wins and gets a judgement against you. Theoritically, any judgement in a US court can be converted to a judgement in a Canadian court. But this costs dollars and usually the plaintiff gives up chasing you in Canada. A judgement screws up your credit report and score.

If you were not served the summons, then how do you know about it? Somehow the court clerk must know you do not live in that jurisdiction. Then you can get away with it.

However, from what I have read in this thread, you guys should sue the employer for not paying you! Why are you bailing out?!
 
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