When drafting an employment contract, an operating agreement for a Limited Liability Company (LCC) or any other business agreements, an important component of these instruments should be a noncompete clause.
The owner of a Massachusetts office building sued the developer of a $1.6 billion project for allegedly not paying rent and attempting to get the building's tenants to relocate. The contract dispute pitted the owner against the redevelopment company that was charged with revitalizing downtown Quincy. The redeveloper was hit with a breach of contract suit in the amount of $12.9 million, which was the agreed-upon price for the owner to be paid for the building. A partner with Street-Works reported that the dispute was almost settled.
Massachusetts coffee drinkers may have heard that Starbucks has been ordered to pay Kraft Foods Group $2.76 billion as a result of arbitration hearings. The heart of the issue is a contract dispute over an agreement between the companies under which Kraft had sole rights to distribution, marketing and sales of roast and ground coffee made by Starbucks in grocery stores and other retail establishments. The contract reportedly netted Kraft $500 million in revenue during 2010. However Starbucks terminated the relationship with Kraft towards the end of that year.
A Massachusetts hospital has been engaged in a two-year dispute with the nurses' union over proposed changes to overtime pay. In a union membership meeting on the issue, all but one of the attendees voted to use arbitration to resolve the contract dispute. However, the hospital president does not feel that it is in anyone's best interest to have an outsider make the decision.
School nurses in a Massachusetts school district have asked state mediators to intervene in a contract dispute with school administrators that goes back to October 2011. Medford school nurses claim that they are paid 20 percent less than other school personnel even though the nurses are required to meet the same educational standards. The group includes 11 school nurses who serve more than 5,000 students in nine schools.
Massachusetts residents understand the need to have insurance contracts that provide adequate coverage for disasters and the importance of having the terms of the contracts carried out. United States-based insurer, HCI, has won a breach of contract dispute that it filed against Aon Benfield (AON). According to HCI, in 2009, it signed a revenue sharing agreement (RSA) with AON. AON helped HCI secure reinsurance coverage for catastrophes like hurricanes and, in turn, received fees from the reinsurers. When HCI signed with another intermediary the following year, AON refused to pay HCI the amounts it owed under the 2009 RSA.