Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Health care consultants claim unlawful no-hiring agreement, (Oct 19, 2015)

By Greg Hammond, J.D.

Two health care consulting companies entered into an unlawful no-hiring agreement that eliminated competition between them for skilled health care consultants, thereby restraining trade in violation of Section 1 of the Sherman Act and the Arizona Antitrust Act, according to a complaint filed by two former employees in the federal district court in Phoenix (Murray v. Blue Cottage Consulting, Inc., October 16, 2015).

Blue Cottage Consulting, Inc. and FDI Planning Consultants, Inc. entered into a consulting agreement in 2012, allegedly restricting their ability to recruit and hire employees of the other company, two former FDI employees claim. Blue Cottage is an independent, health care consulting firm that specializes in visioning, strategy, and operations and facility planning. FDI is a consulting firm that provides services from the design phase through occupancy for health care facility construction and expansion projects. The consulting agreement, according to the former employees, reduced Blue Cottage’s and FDI’s incentives and ability to compete for employees and restricted employees’ mobility. As a result, the no-hiring agreement harmed employees by depriving them of better job opportunities between the two companies.

The employees assert that the no-hiring agreement constitutes a naked restraint of trade that is per se unlawful under Section 1 of the Sherman Act. The six-count complaint also lodged claims for violations of the Arizona Antitrust Act and Arizona Blacklisting Statute, as well as claims for promissory estoppel, negligence, and tortious interference with contract or business expectancy.

The employees seek a judgment that the no-hiring agreement is an illegal restraint of trade; treble, general, special, punitive, and exemplary damages; pre-judgment interest; and attorney fees and costs.

The case is No. 2:15-cv-02077-SRB.

Attorneys: Tod F. Schleier (Schleier Law Offices, PC).

Companies: Blue Cottage Consulting, Inc.; FDI Planning Consultants, Inc.

News: Antitrust ArizonaNews