The government considered the agreements between DaVita, Inc. and the three competitors to be an illegal scheme to restrict the movement of employees between healthcare companies.
Colorado – August 17, 2022 – Employers should ensure that any labor arrangements with third parties conform with the Federal Antitrust laws. DaVita is a Fortune 500 company based in Denver that employs roughly 67,000 people and the government alleges that the company’s ex-CEO Kent Thiry made a series of agreements with three of DaVita’s competitors between 2012 and 2019, namely Surgical Care Affiliates, Hazel Health and Radiology Partners, whereby the companies agreed not to solicit DaVita employees. As part of the agreements, workers were required to tell their DaVita bosses if they were being considered for a position elsewhere. The government considered the agreements between DaVita, Inc. and the three competitors to be an illegal scheme to restrict the movement of employees between healthcare companies. Contracts and employee agreements must be written within the scope of the state and federal laws. When one party to a contract does not hold up their end of an agreement, seasoned attorneys at Semler & Associate Breach of Contract Law Firm in Denver can assist.
A contract is a promise between two, or more parties outlining certain arrangements for each party to complete, or refrain from, and is considered a legally binding agreement. Contracts have three components: the offer, the acceptance, and the consideration which is the value of the contract. Colorado requires certain contracts to be in writing under Colorado Revised Statutes, Section 38-10-112, or they are considered void agreement. Parties to a contract should talk to breach of contract lawyers in Denver to ascertain if they have a case for action to settle the breach of an existing contract in accordance with Colorado and federal laws.
Employee non-compete agreement
A non-compete agreement is a legal agreement between an employer and an employee regarding business activities that are conducted, often containing business secrets, or proprietary information that should remain inside the business. In most instances, employees, contractors, and consultants must sign these types of agreements and the document may restrict an ex-employee from seeking work with competing businesses for a designated amount of time. The goal of a non-compete is to protect an employer from unfair competition.
Consultation with skilled business lawyers is important for individuals to achieve their desired outcome when the terms of an executed contract are not fulfilled. Common examples of breaches of contract in Colorado courts may include real estate transactions, employment contracts, violations of non-compete clauses in employment contracts, and/or the fraudulent transfer of funds, or assets in business.
Parties to a contract can take legal action and sue a defendant for breach if:
- The defendant entered a contract with the plaintiff to provide services, or goods as outlined in the contract,
- The defendant failed in their performance to provide the services, or goods as outlined in the contract, and/or failed to justify why they did not perform,
- The plaintiff performed, or complied with their agreed upon portion of the contract, but the defendant did not,
- The plaintiff experienced losses because of the lack of performance, or breach of the contract by the defendant.
Plaintiffs who succeed in a breach of contract claim in a Colorado court can pursue damages for monetary amounts that would make them whole again. It is important to understand that a plaintiff can only recover economic damages based on the specific terms of the contract in Colorado’s “economic loss” rule.
Value of attorneys
The legalities involved in the enforcement of contracts are based on the specific language outlined in the legal document, and any ability for parties to waive certain restrictions that may alter the performance and deliverables required to complete the contract. Hiring a breach of contract attorney to look at the pertinent documents is necessary before deciding on a court action in a Denver breach of contract case.