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Engineering firm sues energy company for breach of contract in LA


Contract disputes can be of significant concern to business relationships, which is why understanding the legal resources available in contract dispute situations can be important.

An engineering firm in Louisiana is bringing a breach of contract lawsuit against an oilfield and marine contractor for a failure to pay for services. The engineering consultancy alleges that it performed work on behalf of the energy company and that it is owed $39,105 for engineering services that it provided on two projects. The engineering firm is accusing the energy company of breach of contract, as it alleges the energy company has failed to make payments according to the contract. The engineering firm is seeking damages in the amount it claims it is owed, as well as attorney's fees.

Disputes can arise during a business interaction that either require a party to pursue a breach of contract action or defend against one. In either situation, financial harm can occur. Sometimes, contract disputes related to business contracts may require litigation, but in other cases, negotiation may resolve the contract dispute.

A business contract creates obligations that parties have to one another. If a party fails to honor an obligation of a contract, it can be considered a breach of contract. Breaches can occur when a party to a contract fails to timely perform an obligation under the contract, fails to perform an obligation in accordance with the contract or fails to perform at all. In any of these circumstances, the non-breaching, aggrieved party may be able to bring a claim against the breaching party for the recovery of damages.

Breach of contract can be a serious concern for businesses. When a contract dispute occurs, a trained business attorney can help guide and advise a client through the process, whether it ultimately involves litigation or not.

Source: The Louisiana Record, "Oilfield and marine contractor sued by engineering firm," Kyle Barnet, Feb. 26, 2014

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