Questions & Answers
How to sue a subcontractor for breach of trust and conflict of interest?
Greetings,
We have issued a Letter of Purchase Order (LPO) to our subcontractor for a project. The payment from the main contractor has been delayed.
To speed up the process, we have asked the main contractor to pay the subcontractor on our behalf through a No Objection Certificate (NOC). Since the LPO is from our company, the subcontractor has asked us to give a security cheque in case the payment is further delayed.
We have issued the cheque along with a letter stating that they have to return the cheque upon receiving the cheque from the main contractor.
The guarantee cheque was used after 3 months even after getting the payment from the main contractor. The subcontractor has started communicating with the main contractor without keeping us in the loop.
Due to cash flow problems, we were supposed to leave the project.
Can I approach the court asking for the same/twice the amount as compensation due to a breach of trust and a similar amount as a conflict of interest?
Dear Sir/Madam,
Good day!
You may approach the court for the breach of trust if the subcontractor violated any NCA/NDA Clauses (if any) or the payment terms.
You may demand compensation if any ancillary loss happened due to the subcontractor's actions provided that such loss can be proved with material evidence.
Kindly share the copy of the LPO with the below contact via phone or email to provide you with better advice.
Adv Abdul Haq
Legal Consultant
