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Construction company sued for breach of contract damages


Remedies for breach of contract are typically somewhat situation specific. A construction company and its owner are being sued by a Louisiana shoring company for allegedly defaulting on a $500,000 payment for a modular building. According to the shoring company, it entered into a contract with the construction company to purchase a modular building for $510,000. According to the contract, the shoring company asserts, the construction company was obligated to pay a deposit of $51,000 and the remaining balance of $459,000 within 30 days of the contract.

A check for $459,000 was provided to the shoring company by the construction company but it was returned. Because the funds were never tendered, the shoring company asserts that the construction company still owes the remaining amount of $459,000 according to the contract terms. The shoring company has accused the construction company of breach of contract. Whenever a violation of contract terms has occurred, the non-breaching party to the contract may wonder what remedies may be available.

As noted previously in this blog, remedies may depend on the nature of the breach and whether the court considers it a minor or material breach. In general, however, damages to compensate the victim for the breach of contract, or compensatory damages, may be available to the non-breaching party. A breaching party may also be required to return funds collected, such as when work promised under the contract was no performed but payment had been collected. In some circumstances, if a party has performed part of the contract, when the other party breaches the contract, such as the completion of construction of a portion of a building, the breaching party may be required to repay the non-breaching party for the portion of the work performed.

Additionally, the breaching party may be ordered to perform the contract, which is called specific performance, in some circumstances. There are a variety of remedies available for breach of contract which depends on the unique nature of the circumstances of each situation. Because of this, it is important to be informed of the various options and remedies when facing breach of contract.

Source: The Louisiana Record, "Construction company accused of defaulting on $459K balance due," Kyle Barnett, Nov. 17, 2014

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