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NRA files breach of contract claim over confidential information

A lot of contract disputes are about money. Breached terms can lead to lost revenues or lost purchase costs, which can leave a business in financial trouble. Therefore, proving financial loss is often a key part of a breach of contract case.

But there are instances where the harm involved in a contract dispute goes beyond the financial. In these instances, it can be much harder to show the full extent of damages suffered.

This issue may be front and center in a contract dispute involving the National Rifle Association and its long-time advertising partner, Ackerman McQueen. According to reports, the NRA claims that the advertising agency has released classified information to third parties with interests that are hostile to the organization.

The NRA further claims that the leaking of the information was intended to cause harm to the organization because, as it alleges, Ackerman McQueen wanted to retaliate after being denied a takeover of the NRA. The legal claim, which also claims a breach of fiduciary duty, seeks more than $40 million in damages.

As this case illustrates, breach of contract can have an impact on a business's reputation and goodwill. The NRA is likely concerned about how the public and its own members will view the organization if certain information is released in violation of the terms of its contract with Ackerman McQueen. These same issues can confront a number of businesses facing breach of contract issues, from grocery stores to manufacturers and fabricators.

As we've discussed previously on this blog, the best way to avoid a contract dispute is to only enter into fully understood and ironclad agreements. An experienced legal professional can help negotiate and draft these agreements, but he or she can also assist in any breach of contract issues that may arise, even if that means litigating the matter in front of a judge and jury. Therefore, those dealing with a contract dispute should consider contacting a business law professional of their choosing.

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