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Dear Legal Beagles,
A client commissioned a company to carry out some work via a number of contracts. Work was duly completed on time and budget to the complete client satisfaction and paid for. 2 years later the Client discovered that one of their employees had been secretly moonlighting/working for that company. Contract stated no one from the client side could be employed or paid and conflict of interest must be declared, so this was in clear violation. This person had not signed/issued the contracts however they had actively encouraged others to use them. The client duly sacked the employee and brought a fraud complaint to the police. Client suffered no losses (in fact it could even be argued this employee working for the company meant they received higher quality work). My question is does the client now have the right to request full repayment?
A client commissioned a company to carry out some work via a number of contracts. Work was duly completed on time and budget to the complete client satisfaction and paid for. 2 years later the Client discovered that one of their employees had been secretly moonlighting/working for that company. Contract stated no one from the client side could be employed or paid and conflict of interest must be declared, so this was in clear violation. This person had not signed/issued the contracts however they had actively encouraged others to use them. The client duly sacked the employee and brought a fraud complaint to the police. Client suffered no losses (in fact it could even be argued this employee working for the company meant they received higher quality work). My question is does the client now have the right to request full repayment?
