Contract disputes can occur in a variety of circumstances and situations while, it is important to note, the parties to a contract have legal recourse when one has been breached.
The subcontractor on a Louisiana school construction project is suing the main contractor on the project for failing to pay following completion of the project. The subcontractor alleges that it contracted with the main contractor to provide construction work on a private school. In the lawsuit, the subcontractor asserts that it completed the work in a “professional, competent and workmanlike manner.”
The subcontractor alleges that it is owed $82,396.17, however, acknowledges that amount was reduced after contractor paid $14,345.79 directly to the subcontractor’s suppliers. The contractor is accused of breach of contract and the subcontractor is seeking damages for the amount owed, penalties and attorney’s fees; the amount of damages the subcontractor is seeking was not specified.
Business contracts, such as contracts for builders, development contracts or construction management contracts, create obligations that are to be fulfilled by the parties that enter into the contract. When a party fails to fulfill that party’s portion of the contract, legally speaking, that is termed a breach of contract. When an alleged breach of contract has taken place, the party that is not in breach may wish to seek enforcement of the contract or seek damages for financial harm resulting from the breach through the litigation process.
An experienced business and real estate attorney can help a party facing a contract dispute determine what is the best course of action for the party to take. By listening to the party’s goals for the outcome of the contract dispute, the best course of action can be recommended and the attorney can serve to guide the party through the process.
Source: The Louisiana Record, “Contractor sued by subcontractor over alleged non-payment of school project,” Kyle Barnett, Dec. 4, 2013