Posts Tagged ‘breach of contract’

South Florida Business News: Week Ending February 13

February 13th, 2010

By Mark Schecter | No Comments »

City of Hallandale Beach Wins Breach of Contract Case

Arbitrator Lawrence Kellogg, Esq of the American Arbitration Association panel recently ruled that Reuter Recycling of Florida, Inc breached its contract with the City of Hallandale Beach by taking actions which destroyed the essence of the parties’ contract which originally provided that the waste stream generated by four cities would be composted by Reuter to accomplish waste reduction goals.

Damages of $525,000 were awarded to the City of Hallandale Beach. In addition, a counter claim against the City of Hallandale Beach for $2 million was involuntarily dismissed by the Arbitrators at the hearing.

The estimated cost savings to the City as a result of having the remaining term of the solid waste contract terminated is estimated to be more than $1 million.

Read more here…

Lennar Homes files Breach of Contract Lawsuit Against Several

Lennar Homes, a Miami-based homebuilder, filed a breach of contract lawsuit against 5 drywall installers in Lee County, a couple of Chinese drywall manufacturers, and several other companies on January 30, 2010.

Lennar sued eight drywall suppliers for product liability and breach of implied warranty, as well as 12 installers for breach of contract and breach of express and implied warranty.

Contractors J.D.M. Builders, Florida Style Services, Ocean Construction, B&B Stucco and Harrell’s Drywall, whose primary place of business is in Lee County, according to the suit, were among about 20 companies being sued along with Taishan Gypsum Co. and Knauf Gips KG, a German company whose affiliate is Knauf Plasterboard Tianjin Co., a Chinese manufacturer, the suit said.

The lawsuit alleges the Chinese manufacturers were negligent and liable for damages because they produced drywall for a dozen or so homes in Lee County that may have been corroded by air conditioning coals, wiring and other copper fixtures.

Read more here…

Whether you’re a company contemplating filing a breach of contract lawsuit against others or a contractor being sued, the lawyers of Schecter Law may be able to assist you. Contact our law office today to discuss your matter.

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Posted in In the News, breach of contract, business | No Comments »

Outsource to Contract Lawyer to Deal with Layoffs

February 11th, 2010

By Mark Schecter | No Comments »

If you follow the local and national news, you are aware of the US economy and rising unemployment rate. It’s difficult to ignore the dismal news as the topic is frequently covered in all areas of the media, from morning and afternoon talk shows, to radio and newspaper ads.

As a business owner, you constantly struggle with the thought of cutting back your costs and budget, and the possibility of having to lay off employees and add to the rising unemployment rate. But the fact remains, you are responsible for finding ways to keep your company viable while you deal with the current crisis. That means in many companies, layoffs are inevitable.

While you work hard to cut your budget and control your costs to deal with the business losses you’ve experienced, you may find you’re forced to downsize the number of employees in your company.

With that said, it’s not always simple to determine who will be laid off. While you may be able to fade out certain positions, you’ll find there are others you cannot afford to dissolve.

For instance, it may not be a good idea to completely fade out the legal services your in-house attorney provides to protect your company. In fact, it may be an absolute wrong decision as claims of wrongful termination and other employment disputes tend to increase when layoffs occur.

So, what can you do?

You can outsource to a local contract attorney many of the same legal services an in-house attorney offers. Does this mean you must completely dissolve your company’s legal department? No. But it does mean a contract lawyer can prevent you from having to hire more salaried in-house attorneys and support staff.

Although much of the news we hear focus on the loss of jobs once held by middle Americans, there are other industries that are often overlooked. The legal industry has been hard hit by the economy. It was already heavily saturated and very competitive, and the economy has only exacerbated that reality.

Now, instead of hiring more in-house salaried lawyers, many corporations hire contract attorneys to provide legal services they need. In many instances, a lawyer working on a contract basis has the same (and sometimes more) education and work experience as the typical in-house attorney.

Has your company considered outsourcing to fill in-house attorney positions following layoffs?

http://www.schecterlaw.com/litigationblog/legal-services-local-corporate-attorneys-offer

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Posted in Corporate Outsourcing, Outsourcing Trends, South Florida | No Comments »

Which Statute of Limitations Applies to your Florida Case?

August 22nd, 2009

By Mark Schecter | No Comments »

monthly-calendarLast week we discussed the basics you should know about Florida’s statute of limitations law. Today, we’re going to review the standard statute of limitations associated with specific matters that often result in civil litigation.

1.     Written and verbal contracts

Some of the most common civil actions arise out of breach of contract claims. If your business has sustained financial or other damages as a result of a matter involving a written contract, the standard statute of limitations period is five (5) years. If the matter involves an oral/verbal contract or agreement, the SOL period is only four (4) years.

2.    Slander, libel and/or defamation

I often say, “It takes your whole life to develop your word and your reputation. It takes a second to lose it.”

When it comes to building a business, the last thing you need is for someone to defame or slander you or your business to your current or potential customers. If you’re a victim of slander, libel or defamation, you may have sustained damages to your personal and professional reputations, in addition to substantial monetary damages. In order to legally recover those damages, you must file a civil action in Florida courts within two (2) years of the incident or injury.

3.    Fraudulent actions of another

Unfortunately, in this economy incidents of fraud continue to rise. Although you cannot control the actions of another, you can do your very best to protect your own interests. If you’ve suffered financial, physical or emotional damages due to the fraudulent actions of another person or entity, you have four (4) years from the date you were injured to seek legal remedy for your losses.

4.    Professional and medical malpractice

Because we’re all humans, there is no shortage of injuries arising from professional or medical malpractice. You have only two (2) years to file a civil action seeking recovery for incidents of malpractice. If you fail to file a civil action within the time allotted, assuming there are no other legal exceptions applicable to your situation, you will be unable to recover damages or any other legal remedies.

The statute of limitations period is rarely set in stone and can be contingent on other factors. It is in your best interests to consult an experienced Florida attorney sooner rather than later to discuss which statute of limitations period is applicable to your claim. The most disheartening news for any injured person is to learn they cannot recover from injuries and damages they sustained due to the negligence or wrongful conduct of another person or entity.

So, if you believe you or your business is a victim of any wrongdoing, contact the attorneys of Schecter Law today to discuss which Florida statute of limitations is applicable to your case, and how you should move forward to protect your interests and your right to legal remedies.

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Posted in business, contract law | No Comments »

Do you have a Breach of Contract Case?

July 29th, 2009

By Mark Schecter | 3 Comments »

torn-contract

At the time you enter into a legally binding contract with another party you’re not expecting them to renege on their promises. You’re relying on them to fulfill their obligations and to perform as agreed. In fact, in most instances the other party doesn’t set out to defraud you. However, life happens, circumstances change, priorities shift, and before long you’re out of time, money and a whole lots more.

At What Point is a Contract Breached?

Generally, a breach of contract occurs under one of these three circumstances:

1. A party acts or fails to act in a way that prevents another party from performing his duties as per the contract.

2. A party refuses to perform as promised.

3. One or more parties “intend” not to perform as agreed.

Some contract breaches are more severe and damaging than others. Contracts can be breached in whole or in part. When a whole (aka material) breach occurs the injured party can ask the court to order the other party to perform as agreed, and can recover damages as well. With a minor (aka partial) breach, performance cannot be ordered although damages can be sought and recovered.

Does your Breach of Contract Case Satisfy Florida Law?

Under Florida law, not every contract breach meets the legal requirements to justify a lawsuit. This is referred to as the ‘cause of action’ threshold. If your case does not satisfy the legal requirements, you cannot file a lawsuit seeking recovery of damages sustained as a result of the breach.

So, how do you know if your case meets the threshold established by Florida law?

According to Florida state law, four elements must be satisfied in order for you to have an actionable breach of contract case. Ask yourself these four questions to see if your case meets the legal requirements:

1. Is there a legally binding contract?
You must first prove that a legally binding contract exists between the parties. Obviously, with a written contract or agreement this requirement is easier to satisfy. If you do not have a written contract of any kind, you will need to prove that the parties entered into a verbal agreement.

2. Did you perform as expected?
Before you attempt to sue another party for breaching a contract let’s first confirm you performed as agreed. Is there anything you should have done but did not do? If you fulfilled your obligations as per the agreement, consider this element satisfied.

3. Was the contract breached?
Once you’ve established that a contract existed and that you kept your end of the bargain, you must prove that the other party failed to perform, leaving their contractual obligations unfulfilled, or that he/she performed unsatisfactory.

4. Did you sustain damages due to the breach?
This last requirement is just as important as the first. A breach can exist; however, if it did not result in damages to you, you cannot satisfy this requirement. You must provide that you sustained damages (i.e. monetary loss) as a result of the other party’s breach.

If you’re dealing with a breach of contract issue in Florida and your situation satisfies the four requirements above, you should consult the knowledgeable Florida contract law attorneys of Schecter Law. In order to recover for your damages, you must act before the Florida statute of limitations expires.

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Posted in business, contract law | 3 Comments »

Common Defenses to Florida Breach of Contract Claims

July 17th, 2009

By Mark Schecter | No Comments »

Over the past few weeks, we’ve discussed the importance of operating your business with a valid contract, the essential elements every Florida contract must have to be valid, and what happens when a breach of contract occurs.

Today, we’re going to review six defenses that are commonly used to defend breach of contract claims. If you’ve been accused of breaching a contract, you’ll want to continue reading this post.

1. Statute of Limitations

In Florida, a breach of contract claim must be brought forward within five years. If not, the claim is permanently barred and will prevent the injured party from recovering damages for their loss.

2. Duress

When one or more parties are pressured, forced or coerced into a contract, this takes away the party’s free will and constitutes duress. According to the Florida court in Franklin v. Wallace, the person accused of breaching the contract can use “duress” as a defense to the alleged breach.

3. Implied Covenant of Good Faith and Fair Dealing

The implied covenant of good faith and fair dealing, which requires every party of a contract to act in accordance with the contract’s purpose, is commonly used as a defense to breach of contract claims. However, in Florida this defense will not negate the express terms of a valid contract.

4. Impossibility of Performance

When a party of a contract is unable to perform as per the contract terms due to circumstances beyond their control, this is referred to as “impossibility of performance.” In Home Design Center v. County Appliances of Naples, Inc., the court established impossibility of performance as a legitimate defense to some breach of contract claims.

5. Unconscionable Contract Terms

A contract may be considered unconscionable if the terms are unjust, unfair or outrageous. In these instances, unconscionability may be a reliable defense to breach of contract claims. In the Florida case Kohl v. Bay Colony Club, the court held that when the terms of the contract are unfair and unreasonable at the time the contract was entered into, unconscionability may be used as a defense to breach of contract claims in the Florida courts.

6. Unilateral or Mutual Mistakes

A unilateral mistake occurs when one party was mistaken about the terms of a contract at the time they entered into it. A mutual mistake happens when both or all parties of a contract were mistaken at the time the contract was signed. Under Florida law, if any party of a contract is mistaken about the terms of a contract at the time the contract went into effect, their mistake may be a legitimate defense for not performing as obligated.

If you’re being sued for breach of contract, it is imperative that you understand how to defend and protect your business and personal interests. Above we discuss a partial list of defenses that are commonly used in breach of contract claims. You should consult an experienced and knowledgeable contract attorney at Schecter Law to discuss which defenses, if any, you can rely on. Depending on the facts and your circumstances, you may find one or more of these defenses applicable to your situation. You may also find additional defenses available to you that have not been covered in this blog post.

So, don’t delay. Protect your interests today!

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Posted in business, contract law | No Comments »

When a Breach of Contract Occurs

July 13th, 2009

By Mark Schecter | 1 Comment »

A contract, verbal or written, is an essential element of any business deal. Last week we discussed the three essential components every Florida business contract must have. Today, we’re going to touch on what happens when a valid contract is present but obligations are not fulfilled as promised.

A savvy businessperson should demand a valid, executed contract prior to performing any services or offering any products. However, despite the existence of a valid contract, there will be times when a party fails to fulfill their obligations as promised.

Generally, a valid contract will conclude in one or two ways: 1) all parties to the contract will perform their duties as agreed without any problems; or 2) one or more parties will not perform or fulfill their obligations, causing a breach of the contract. The latter can result in substantial damage to the party or parties injured by the breach.

Types of Breaches

In Florida, there are basically two types of contract breaches – minor and material. A minor breach may involve failure to perform a specific term of the contract, and usually does not result in any significant damage to either party. A material breach typically occurs when a party totally fails or insufficiently performs as per the agreement. This type of breach can be so severe in nature that it terminates the entire contract, and causes substantial, irreparable damage to one or more parties.

Damages for Breach of Contract

When a breach of contract occurs, regardless of its severity, the injured party can recover damages and other legal remedies through the court. Said party can also be discharged from performing any further duties included in the contract. In essence, a breach of contract terms by one party terminates the valid contract, which in turn releases the injured party from its contractual obligations.

There are three types of damages that can be caused by minor or material breaches. Those damages include monetary damages, liquidated damages, and/or specific performance. Depending on the nature of the breach, an injured party can be entitled to recover one or more of these damages.

Whether your company has been injured by a breach of contract, or is being accused of breaching a contract, you should contact the Florida contract attorneys at Schecter Law to discuss legal remedies you’re entitled to or defenses you can rely on.

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Posted in contract law | 1 Comment »