I don't know the particulars of the facts surrounding Resource Confidential, and if it is one or two employees that got jobs at eRecord Data and that is the only connection between the two companies, there may be nothing wrong with that. But, I think you have to very cautious when you have a "new" company comprised completely of the old staff, doing the same work for the same clients with the same abstractors.
It seems that too often, the only thing that changes is that the "new" company is not responsible for their "old" debts. In this case, I would expect the "new" company to pay for it current work, because they are doing so by NOT paying for other work. Without other significant changes, its only a matter of time until they get caught in the same situation and do it all over again. How many times would you be willing to forgive delinquent invoices to get work from what is essentially the same company.
The abstractors would be better off if they refused the work. If the "new"company can't do the work, those orders would likely go got a more reputable company that doesn't play these games with their abstractors.
Just my opinion on the subject.
Best,
Robert A. Franco
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