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Louisiana company alleges breach of salvage contract

When two companies in Louisiana enter into a contract, they expect that the terms will be followed to the benefit of both parties. However, as one recent example shows, when one party fails to hold up its end of the bargain, it can lead to a contract dispute.

Rozel Operating Co., out of Lafayette, Louisiana, has filed a lawsuit against Z.E. Services, LLC. Rozel Operating Co. claims that the construction solutions provider breached the parties' contract when it did not finish a salvage operation on time.

The lawsuit maintains that the companies entered into a contract last August, in which Z.E. Services LLC reportedly agreed to retrieve and salvage a barge that had sunk in the Gulf of Mexico. But, Rozel Operating Co. claims that not only did the company fail to meet its end of the bargain on the agreed-upon time, but also that it hired subcontractors without first getting permission.

Rozel Operating Co. wants a jury trial. It is pursuing $467,500, which is the entire contract amount. It also claims that it is not obligated to pay anything else to Z.E. Services LLC, and that the contract should be dissolved.

Time will tell how this lawsuit will unfold. In the end though, it is important to understand that valid contracts are legally binding. If one party does not fulfill its obligations under the contract, the aggrieved party may pursue legal action. In such situations, it's important to have experienced legal guidance. A business law attorney can help parties draft legally binding contracts and represent parties, if the contract is breached.

Source: Louisiana Record, "A Louisiana firm is suing construction solutions provider for alleged breach of contract," Lhalie Castillo, June 1, 2017

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