What to do when a business breaches the contract?

Full question:

I own an Executive Search Firm that is owed a fee of $10,000 for the placement of a candidate. How can I collect my fee from this company who does business in PA? I have made my formal demand via e-mail, US postal and left messages. I have also confirmed payment was received for the placement of my candidate via a fax of a cancelled check.

  • Category: Contracts
  • Subcategory: Breach of Contract
  • Date:
  • State: National

Answer:

When someone breaches a contract, the injured party may sue for breach of contract and collect money damages in civil court. An out-of-state defendant may be served with the complaint under a state's long-arm statute if the requirements for exercising long arm
jurisdiction and due process requirements are met. If the defendant is out of state, due process requires that they must be shown to have contacts in the forum state of such a nature that they could reasonably foresee being sued in that state. Whether minimum contacts exist so that
the court has personal jurisdiction over an out-of-state defendant is a determination made based upon the facts and circumstances in each case.

Minimum contacts can be established by consent where a party signs a contract with a forum selection clause, agreeing to litigate in a specified forum. If minimum contacts don't exist, the defendant must be sued in the state where they reside or regularly conduct business.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Executive search firm fees typically range from 20% to 35% of the candidate's first-year salary. The exact fee can depend on the firm's reputation, the complexity of the search, and the industry. Some firms may charge a flat fee or retainers, while others operate on a contingency basis, receiving payment only if a candidate is successfully placed.