Can a company sue for loss of revenue?

TwoTwoLeft said:
If you don't like it, leave. Contract or not, they can't keep you there. If they're forcing you to break regs, then they don't have a leg to stand on if they take you to court. Gather as much dirt on them as you can while you're there, keep good records of it, and throw it back in their face if they try to take action against you for breaking contract.
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Again, this may be good advice. One thing the OP's lawyer will ask the OP, if he consults one, is how well he's documented his concerns to the employer. The legal concept is called "Notice." In other words, can he prove (in writing hopefully) that he informed the employer of his concerns? If the OP has no written record of giving Notice, then he's more vulnerable. He should be ready to answer this question. "Notice."

But the Notice advice is tricky. If the employee pesters his employer with emails and letters complaining about working conditions (giving Notice), the employer will likely fire him/her. So if the employee wants to document or paper-trail a history of Notice, it should be done subtly and in a non-threatening manner. Tricky to do.

TwoTwoLeft said:
....Gather as much dirt on them as you can while you're there, keep good records of it, and throw it back in their face if they try to take action against you for breaking contract.
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Again, I agree with this. But one word of warning about an idiosyncrasy in U.S. Employment Law regarding records collection and retention. Something that I don't like about dealing with employment law cases. You'll need evidence of the employer's indiscretions, but in most cases you cannot take copies of documents, proving your allegations, from their building. Not even a copy. Their lawyer will file a motion to rule it "inadmissible" , and they can then use your "theft of Company documents" against you. Tape recordings can also get you into legal trouble, depending on the situation and State law. So consult local counsel before you start gathering evidence.

Here's what the OP should do - Keep a diary on these issues. That is admissible and of some value. Document dates of conversations and document/outline the exact incriminating docs that his lawyer should subpoena during the discovery phase.

Here is what the OP's lawyer (and I) cannot advise him to do :rolleyes: - Keep copies of incriminating documents, but only for his own records, don't admit he has them, and don't EVER tell his own lawyer about them (the lawyer does not want to know). If he admits to his lawyer that he has possession of the evidence, the lawyer is obligated to disclose them to the Court and to the former employer during the discovery phase. The OP is not protected by attorney-client privilege on that. However, he may want copies of the docs so he can refer to them when seeking their disclosure through the Court (discovery phase). If the documents eventually supplied to his lawyer have been altered or "sanitized" by an employer trying to hide incrimination evidence, the OP will know it. (However, as I said, I could not advise him to do that. Might be illegal. ;) )
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2fly4ever said:
........ My current company told me that they can sue for "loss of revenue" if I leave before my contract goes into effect. Iam finding out that my current company tried to screw other people in the past and setting pilots up for violations. I feel like Iam going to lose my license or even worse if I continued to fly for this company. I have already declined trips for bad equipment and being fatigued. Any help will be appriciated.
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A few years ago I got a phone call from a pilot seeking advice on the same issue, flying for a foreign regional on a Dutch island in the Caribbean. US law was not applicable, but the situation was close enough to yours to be worth a mention.

"Loss of revenue" doesn't sound quite right to me. "Breach of Contract" sounds more likely. In the Caribbean case the Company was afraid to let the pilot bolt without suffering any consequences for "breach of contract," in which case other pilots would feel free to flee. Your employer may feel obligated to hold you to the contract also in order to avoid a mass exodus and risk reducing their employment contracts to toilet paper. You have not shared your evidence with us. But, if you really feel that you have the proof of substantive employer violations (according to law, not just your opinion), then strategically you might consider serving Notice of resignation through an attorney. In that letter, your lawyer can fashion some convincing wording, strongly implying that you have the evidence of employer violations, and that it might be best to work together in constructing a face-saving exit explanation suitable to both parties (like, you were called to the White House to provide advice for the President, and out of an abundance of patriotism, your Company decided that the Country must come first). Their lawyer may advise them that it would be best to fabricate a mutual cover-story for your departure that won't cause either party any problems later.
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If the contract is in effect, is there any precedent with previous employees leaving?

This is very general, but, if they have not gone after the past 20 guys, then suddenly changing tack and going after you makes it "more challenging ". Not saying they can't sue you though.

Example, Colgan used to "posture" and apparently went after one or two eventually, but were not able to enforce the contract.
 
TUCKnTRUCK said:
If the contract is in effect, is there any precedent with previous employees leaving?

This is very general, but, if they have not gone after the past 20 guys, then suddenly changing tack and going after you makes it "more challenging ". Not saying they can't sue you though.

Example, Colgan used to "posture" and apparently went after one or two eventually, but were not able to enforce the contract.
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Unfortunately, while this would seem to be common logic, it is not applicable in the legal sense. Unless you want to do down the discrimination road, yes, a company can choose who they go after, and who they don't.
 
Patrick said:
Unfortunately, while this would seem to be common logic, it is not applicable in the legal sense. Unless you want to do down the discrimination road, yes, a company can choose who they go after, and who they don't.
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We had a few street CA's leave inside their contract, the company did go after them, and lost out. Shortly after they simply did away with the employment contract.

Like I said, it doesn't mean they can't sue, and I wouldn't recommend trusting that.

In the OP he said before the contract goes into effect. If that's the case, if your gut is telling you to run, do it.
 
TUCKnTRUCK said:
We had a few street CA's leave inside their contract, the company did go after them, and lost out. Shortly after they simply did away with the employment contract.

Like I said, it doesn't mean they can't sue, and I wouldn't recommend trusting that.

In the OP he said before the contract goes into effect. If that's the case, if your gut is telling you to run, do it.
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If you're willing to spend enough $$$ fighting, virtually all of these contracts, in virtually states, can be beaten. However, there's a saying in the legal world that "Principle can be spelled two ways."
 
2fly4ever said:
Iam trying to quit my current flying job before my contract goes into effect. I already have two job offers with two very companies that is going to treat me like a human being. My current company told me that they can sue for "loss of revenue" if I leave before my contract goes into effect. Iam finding out that my current company tried to screw other people in the past and setting pilots up for violations. I feel like Iam going to lose my license or even worse if I continued to fly for this company. I have already declined trips for bad equipment and being fatigued. Any help will be appriciated.
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Instead of going for greener pastures, why don't you just honor your word, like you said you would. And next time, take more time before you commit to the first offer dangled in front of you.
 
Nihon_Ni said:
Instead of going for greener pastures, why don't you just honor your word, like you said you would. And next time, take more time before you commit to the first offer dangled in front of you.
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Would you advocate breaking the FAR's before quitting in order to "honor your word?" Because I think that's what is at issue here.
 
Patrick said:
If you're willing to spend enough $$$ fighting, virtually all of these contracts, in virtually states, can be beaten. However, there's a saying in the legal world that "Principle can be spelled two ways."
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right, but it costs just as much initially to go after the pilot for the contract. if you sue and lose, you get no pay out, owe legal fees, and potentially the legal fees for the guy you sued. it can be a big gamble if youre only going after 5000 bucks.

its been my experience, that in reality, they dont go after the contracts.
 
jtrain609 said:
Would you advocate breaking the FAR's before quitting in order to "honor your word?" Because I think that's what is at issue here.
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If that language is contained in the contract and he signed it, then it's a contract between idiots and they should both keep their word.
 
TUCKnTRUCK said:
right, but it costs just as much initially to go after the pilot for the contract. if you sue and lose, you get no pay out, owe legal fees, and potentially the legal fees for the guy you sued. it can be a big gamble if youre only going after 5000 bucks.

its been my experience, that in reality, they dont go after the contracts.
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Most companies with half a brain at the management level see it this way. Unfortunately, there are a select few who do not.
 
Nihon_Ni said:
Instead of going for greener pastures, why don't you just honor your word, like you said you would. And next time, take more time before you commit to the first offer dangled in front of you.
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Because in most cases, the company has already not honored there's. But in this messed up world, corporations don't have to honor contracts, but individuals do.
 
Nihon_Ni said:
If that language is contained in the contract and he signed it, then it's a contract between idiots and they should both keep their word.
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My contract is not in effect. I owe the money after it is in effect, which is after my 135 checkride. This loss of revenue is straight from the owners mouth. There is nothing spelled out about leaving the company before my contract goes into effect.
 
2fly4ever said:
My contract is not in effect. I owe the money after it is in effect, which is after my 135 checkride. This loss of revenue is straight from the owners mouth. There is nothing spelled out about leaving the company before my contract goes into effect.
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How does your leaving cause the owner a loss of revenue? If your name is Tom Cruise and pax are showing up just to fly with you, then yes, your leaving could cause him a loss of revenue. If you are the only pilot who can find the secret airport you are flying to, then yes, your leaving could cause a loss of revenue. But is either the case?

Parties claiming damages are obligated to make an attempt to mitigate their damages. If they don't make the attempt, Courts will generally not look favorably on their damage $$$ claim. In your case, is there anything stopping the employer from just hiring another pilot? Is what you do so specialized that any one of thousands of unemployed pilots could not do the job? Is there significant retraining involved? Maybe I missed something.

Your thread title is "Can a company sue for loss of revenue?" I'm curious about where this "loss of revenue" aspect comes in. How does the employer lose revenue if he replaces you with another pilot?
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Pull out one of these:
001.460x325.jpg


Or, if you are chronically underpaid, one of these:
penny.jpg


And tell your (former) employer, one the way out the door: "Do you see this man? This in Abraham Lincoln. Because of him we don't have slavery in this country anymore."

On a more serious note, I can understand your problem. Years ago, someone very close to me went through a similar problem with a 121 airline. 'My Friend's' employer put a suspension (in fact it was a retroactive suspension) on his schedule because 'my friend' was being disloyal to the airline because he was trying to find new gainful employment when the airline was outsourcing all of the jobs to another carrier. In my friend's case, both his union and outside counsel were unable to help him... things worked out for the best in the end. (At least he's doing ok now... and the person messing with him moved on to be the boss at another airline that went belly up.) But, at the time his stomach was churning so hard that he bought all the Tums @ CVS and they didn't do anything.

The best thing, cover your six. (In 'my friend's case' he had screen prints from the scheduling and trip trade software showing that he was never suspended when the other airline was told that he 'lied on his application.') He also didn't sign anything, or even meet with the person trying to destroy his career. He just gathered up his stuff, turned in his badge, and moved on to his next job.

I'd say to the OP - take a deep breath and move on. (And maybe get some kind of pre-paid legal thing just in case you are sued down the road for a breech.)
 
Qutch said:
How does your leaving cause the owner a loss of revenue? If your name is Tom Cruise and pax are showing up just to fly with you, then yes, your leaving could cause him a loss of revenue. If you are the only pilot who can find the secret airport you are flying to, then yes, your leaving could cause a loss of revenue. But is either the case?

Parties claiming damages are obligated to make an attempt to mitigate their damages. If they don't make the attempt, Courts will generally not look favorably on their damage $$$ claim. In your case, is there anything stopping the employer from just hiring another pilot? Is what you do so specialized that any one of thousands of unemployed pilots could not do the job? Is there significant retraining involved? Maybe I missed something.

Your thread title is "Can a company sue for loss of revenue?" I'm curious about where this "loss of revenue" aspect comes in. How does the employer lose revenue if he replaces you with another pilot?
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Iam just another freight pilot. Anyone with 135 mins can replace me. Plus it is a Turbine PIC position.
 
I really appreciate the inputs and opinions. A fellow pilot is trying to leave also and will go to the FAA if the company threaten to sue him.(he is in IOE)
 
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