I've heard stories about people abandoning fellowships but want to know how common it is and what the implications are. Has any resident ever been sued for doing this? Let's say hypothetically that someone has accepted a fellowship at Program A and is then offered a fellowship at a much more desirable program, Program B. What are the legal implications of abandoning Program A? Let's assume that this person has not signed a contract but has acknowledged in writing that they'll take Program A's offer.
This has been discussed on this forum recently. Basically, it is your training at stake, so do what is best for you. The only reason I can see for not going to a more desirable program is if you will be burning bridges with people that have connections you need for one reason or another. But, if you back out early enough, I don't think there will be too many hurt feelings. However, if you are backing out of a position that starts in July of this year, people will be a bit po'd because they may not find a suitable replacement on such short notice.
It is very common. Actually, declining an offer is part of the process.
I personally declined a fellowship offer after signing the letter. I never heard about any case of legal action taken against the candidate. However, give the program enough time to search for others (the list is usually very long!) and do not decline the offer few days or weeks before the starting date unless it is very compelling to do so (please do not lie or fabricate stories). Write a professional letter of offer decline (Google it and you will find plentry of free samples). Try to be honest and truthful. Always do what works best for your life, family, and career and do not care much about the program (not very difficult for a program to find an alternative) as long as you do things within professional limits.
I've heard of people backing out of verbal or informal/semi-formal written acceptances (emails, letters of intent which probably have no legal oomph, etc.), but can't think of anyone I personally know who has done so. I've never heard of a program attempting legal action, and have had a couple of attendings at such places comment that, for them at that time at least, it simply wasn't worth the time, money, anguish, and probable lack of success -- the walk-away is certainly not going to come work for a program after THAT, and it's unlikely the walk-away has anything worthwhile to obtain even if the program HAPPENS to sucessfully sue, unless they garnish future wages.
Not condoning the practice, but it happens -- apparently with some regularity -- and for programs, IMO, is one of the downfalls of the current non-system.