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Barge owners sue renters for breach of contract in Louisiana

As Louisiana business owners may know, if they are subject to a breach of contract, it could have financial consequences. A contract dispute was recently taken to court in Louisiana by the owners of two barge boats against renters of the barge boats. The owners of the barge boats have accused the renters of failing to pay invoices and with breach of contract. The company that was renting the two barge boats to the other company at the rate of $1,000 per boat, per day, brought the claim against the renters for breach of contract and negligence.

According to the lawsuit, the renters had possession of the barges from January 2015 to June 2015. The renters were billed $141,765.90 for the rental of the barges per the contract rental rate, but the owners claim they have not received any payment. Additionally, the owners of the barges retained the right to clean at least one of the barges when it was returned but the renters had one of the barges cleaned themselves. Subsequent to having the cleaning performed, the renters allegedly did not pay for the cleaning services, which resulted in liens being placed on the barges. The liens totaled $130,720.

The owners of the barge boats are suing for a number of damages related to the unpaid rent and barge lien. Contract terms represent an important agreement between parties, and violating contract terms can result in harm to the non-breaching party. When a contract has been violated, it is important for businesses and individuals to know how to respond. There are specific options and remedies that may be available when the terms of a contract have been violated and a party to the contract has suffered harm.

In addition to the different options that are available to respond to a breach of contract situation, there are different methods for responding. Negotiation, settlement or litigation may be possible depending on the circumstances and goals of the non-breaching party. Because of the importance of contracts in most business situations, it is important for the non-breaching party to be aware of the resources in their arsenal when the terms of a contract have been breached.

Source: The Louisiana Record, "Owners of two barge boats allege breach of contract from renters," Hoang Tran, March 26, 2016

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