Breach of Contract Litigation

Contracts help define the terms of business relationships. Although a contract should facilitate a smooth transaction, a party’s failure to perform their obligations can lead to a breach of contract dispute and litigation. When you have a legal dispute over a contract, you need dedicated legal counsel to guide you through the litigation process and pursue a favorable resolution. Contact Parker Shaffie LLP for an initial case review with a litigation lawyer to discuss your legal options in your breach of contract dispute.

Understanding Breaches of Contract

A breach of contract occurs when a party fails to perform an obligation under a written or oral agreement. A party may commit a minor or material breach of a contract. A minor breach of contract involves the failure to perform an obligation not essential to the contract’s primary purpose(s). The non-breaching party must continue to perform their obligations after a minor breach, but may pursue a legal claim to recover compensation for their losses. When a material breach occurs, the non-breaching party typically has the right to terminate the agreement and seek financial compensation for their losses.

In a breach of contract claim, a claimant must prove:

The existence of a valid, enforceable contract between the parties
The claimant has performed their obligations under the agreement
The other party failed to perform one or more of their obligations
The claimant suffered financial or reputational harm due to the breach

Types of Contracts Commonly Involved in Litigation

At Parker Shaffie LLP, our attorneys can advocate for your rights and interests in breach of contract cases involving agreements such as:

Sale of Goods
Business Purchase/Sale Agreements
Construction
Personal Services Agreements
Transportation/shipping agreements
Insurance contracts
Entertainment contracts
Real estate agreements
Service provider/vendor agreements
Joint venture agreements

Remedies Available in Breach of Contract Claims

In a breach of contract claim, a non-breaching party may pursue various forms of relief. In most cases, a non-breaching party will seek financial compensation for losses they sustained due to the breach. Monetary compensation in a breach of contract case may include compensatory damages, which aim to restore the non-breaching party to their original position before the breach, and consequential damages, which include indirect losses that foreseeably result from the breach of contract, such as lost profits, lost business opportunities, or reputational harm.

Contracts may also include “liquidated damages” clauses, under which a breaching party agrees to pay a specific amount of money for breaching the contract. Parties may include liquidated damages clauses in contracts for transactions where determining compensatory or consequential losses may become impractical or impossible.

A non-breaching party may file a breach of contract lawsuit to seek equitable remedies from a breaching party, such as:

Specific Performance – In some instances, a court may award specific performance as a form of relief, requiring the breaching party to perform their contractual obligations. Courts may award specific performance in cases where financial compensation cannot provide adequate relief to a non-breaching party, such as in a contract to purchase real estate, as the buyer cannot acquire that same property elsewhere.
Injunctive Relief – A court may issue an injunction against a breaching party, requiring them to perform a specific action or refrain from taking a particular action.
Rescission – Cancels the parties’ contract, with the court potentially ordering additional relief as needed to put the parties in as near the same position they were in before entering the contract.

The Litigation Process for Breach of Contract

When a party pursues legal action for an alleged breach of contract, the litigation process may begin with a notice of default or a demand letter, depending on the requirements of the parties’ agreement. Parties may informally negotiate a settlement of a breach of contract claim or pursue alternative dispute resolution, especially if their contract mandates mediation or arbitration.

In the absence of a settlement or alternative dispute resolution, parties may pursue court litigation to resolve breach of contract claims. Breach of contract litigation can become complex due to the need for extensive discovery to exchange emails, text messages, status reports, invoices, and other documentation. Discovery may also involve depositions of individuals with relevant information. A breach of contract lawsuit may result in a settlement if the parties continue to negotiate during litigation. Alternatively, parties may proceed to a bench or jury trial to present their evidence and arguments.

Defenses to Breach of Contract Claims

Common defenses that parties raise against breach of contract claims include:

Lack of Mutual Agreement – A defendant may assert that the parties never reached a “meeting of the minds” for a contractual agreement, such as when a party does not accept a counteroffer or makes a counteroffer to an original offer.
Plaintiff Materially Breached the Contract – A party may deny liability for a breach of contract by claiming that the plaintiff materially breached the agreement first, relieving the defendant of any further obligation to perform under the contract.
Illegal or Unenforceable Contract – Defendants may claim that an alleged contract involves illegal or unenforceable subject matter, such that the law will not hold a party liable for breaching such an agreement.
Impossibility or Impracticability – A defendant may seek to avoid liability for breaching a contract by claiming impossibility or impracticability in performing their contractual obligations, especially when an agreement contains a force majeure clause relieving the parties of any liability for circumstances outside of their control that prevent performance under the contract.
Waiver or Modification of Terms – A defendant may claim that the plaintiff in a breach of contract case waived the defendant’s breach. Alternatively, defendants may argue that the parties modified the terms of their agreement, such that the defendant’s actions did not constitute a breach of the contract.
Expiration of the Statute of Limitations – Parties with breach of contract claims must file lawsuits within the statute of limitations under the applicable law. A defendant in a lawsuit filed after the applicable limitations period expired on a breach of contract claim can file a motion to dismiss the case.

Why Choose Our Firm?

Whether you have a breach of contract claim or face allegations of violating your contractual obligations, hiring experienced legal counsel can help you seek a favorable resolution. Turn to a contract litigation attorney from Parker Shaffie LLP to advocate for your rights and interests because:

Our firm has almost three decades of experience representing businesses ranging from small to Fortune 500 companies across California, the U.S., and the world. We take pride in distinguishing ourselves from other firms by our aggressive yet cost-conscious approach to legal representation and our dedication to serving our clients.
We take the time to get to know our clients to understand their needs and goals.
Our attorneys work diligently to meet budgets, maintain consistent communication with clients, and swiftly adjust our strategies to respond to changing situations.
Our firm also represents clients in appellate practice in contract litigation.
We have built a reputation in the legal community as the firm that other firms call. Our attorneys represent plaintiffs and defendants, helping our clients navigate challenging legal issues.

Contact Us Today to Discuss Your Breach of Contract Case

When you find yourself in a contractual dispute, you need experienced legal guidance to protect your financial and legal rights and interests. Contact Parker Shaffie LLP today for a confidential consultation with a contract litigation lawyer to discuss how our firm can assist you with pursuing a favorable resolution to your legal dispute.

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