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Louisiana company sues for breach of contract damages


This blog recently discussed the importance of contract negotiation and formation, as well as the importance of understanding how to handle a contract dispute. A Louisiana company is suing another business for breach of contract. The Louisiana company is asserting in its lawsuit that the contract breach forced it to duplicate its costs. The Louisiana company asserts in its lawsuit that the parties had an oral agreement for crane repair parts and services related to the repair of a marine vessel.

The company also asserts, as part of its lawsuit, that it paid a 40 percent down payment prior to the project beginning and planned to pay the remaining amount when the repair project was completed. The Louisiana company stated that it paid $74,196 as a down payment for the work and that repair workers were sent but departed approximately 11 days after arriving, having failed to perform any of the crane repairs. The Louisiana company asserts that the contract breach forced it to hire a third party to complete the work. The Louisiana company is seeking damages in excess of $100,000.

Just as there are a number of different ways that a contract can be formed, there are a number of different ways that a contract dispute may occur and different types of damages that may be suffered as a result of a contract breach. Business owners need to know about each of these important concerns when handling business contracts.

A contract breach can be a significant disruption for a business and can create economic losses which are why contract knowledge and available responses to a breach of contract are important considerations for business owners to understand.

Source: The Louisiana Record, "Business takes contractor to court, alleging unfinished work," Carol Ostow, July 7, 2015

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