What Is a Breach of Contract?
Generally speaking, a breach of contract occurs when one party performs poorly or fails to uphold their contractual obligations. In order to have a valid claim for breach of contract there must be evidence that the terms and conditions of the contract were breached, the performance was not authorized by the other party and the other party suffered damages as a result. California courts uphold that the damages need not be measurable, but they must be shown that substantial harm occurred.
There are a number of different types or levels of breach of contract. Minor Breach- This occurs when one party fails to meet some of the contractual terms, yet the other party still receives the major benefit of the agreement. In such cases, the non-breaching party is liable to the breaching party for damages that are created by the breach. Contrary to popular belief, while a minor breach may technically be a breach of contract, they are often too small to be of too much concern. Material Breach- This type of breach occurs when a party fails to meet a number of the obligations and/or the breaches are of such a serious nature that the non-breaching party would not have entered into the contract if he or she knew that the breaches would have occurred. Here , the non-breathing party can sue for damages, but also has the right to not perform under the contract (i.e. failure to perform any further contractual obligations), treat the agreement as being void or rescind the agreement altogether. Anticipatory Breach- This type of breach occurs when a party states that they will violate the agreement prior to its performance or when circumstances make it clear that a party will violate the terms of the agreement. In such circumstances the non-breathing party can sue for damages in advance of the breach. Innocent Breach- This type of breach occurs when one party believes that the other party will not uphold their obligations of the contract. The breach is unintentional but it still allows the complaining party to seek damages. Fundamental Breach- This type of breach occurs when a party violates the terms of the contract so significantly that it destroys the point or purpose of the contract. Other terms of the contract are irrelevant and there is no way that the contract can be fulfilled after this fundamental breach.
Benefits of Retaining a San Diego Attorney
Whether your San Diego business contract dispute is relatively small or large, with respect to the parties potentially involved, you will want someone on your side with more than just a general knowledge of California laws. Hiring a San Diego contract attorney gives you the benefit of an advocate who knows the local laws and keeps up to date on the latest changes. Your San Diego breach of contract attorney also has the knowledge of not just the laws, but the San Diego courts and judges. As with any serious legal issue, having a San Diego contract lawyer you can trust is invaluable when facing a potential or current business dispute.
Hiring the Right San Diego Contract Lawyer
When it comes to hiring a breach of contract attorney in San Diego, there are several important factors that should guide your selection. As with any area of the law, experience is key. You want an attorney who has handled cases similar to yours and has achieved positive results for their clients. While no outcome can be guaranteed, an attorney with a proven track record of success will have the negotiation skills and litigation savvy necessary to represent you effectively.
Specialization is also important. The law is a vast and often convoluted web of complex rules and regulations. Breach of contract cases, therefore, require an extensive understanding of numerous statutes and common law precedents. An attorney who has dedicated their practice to this area of the law will be in the best position to advise you as to your legal options and counsel you on whether or not it would make sense to litigate your case.
Finally, client reviews can be a valuable tool. In the Information Age, researching an attorney or law firm online is easier than ever. You will find a wealth of information on almost any practicing attorney by just typing their name into a search engine. It is therefore important to peruse an attorney’s reviews online and even, if possible, check some of their references. Keep in mind, however, that one negative review does not mean that an attorney is not a great fit for your case.
Overview of San Diego’s Civil Courts
San Diego has a well-established legal framework for resolving contract disputes. The most common disputes arise from breaches of written or oral sales agreements, vendor contracts, and employment agreements. Other disputes may involve restrictive covenants, such as non-competition agreements, or licensing agreements. The California Commercial Code governs contracts for the sale of goods, while the California Civil Code contains provisions addressing other contracts. When brought before the courts, these matters are primarily resolved in the Superior Court’s Department 61-Civil Limited jurisdiction branch. Litigants may also seek relief in the federal courts for matters that involve parties outside of California.
San Diego County Residents may rely on resources such as the San Diego County Bar Association, the American Bar Association, and the State Bar of California to learn more about the local litigation landscape. These Bar Associations provide information on local attorney referral services, online libraries, and other resources for and about lawyers.
San Diego Superior Court Dept. 61 further assists parties by providing a self-help center where users can gain access to various forms, schedules, instructions, and application help. Local rules and forms for civil court litigation can also be found in the San Diego Superior Court, Civil Division, Local Rules and in the Court’s Local Rules and Forms webpage. California’s statewide rules for civil litigation can be found in the California Rules of Civil Procedure.
What Should You Do After a Breach of Contract?
When faced with a breach of contract, time is of the essence in protecting your rights, as you may only have a limited window during which you can act. Depending on the nature of the agreement in question, and whether or not a specific statute exists to address remedies, the best course of action may vary. For example, workers’ compensation claims and medical malpractice lawsuits are governed by highly specific statutes that dictate what types of actions a plaintiff must take before bringing a lawsuit. Even if your claim does not fall under this type of strict limitation, however, it is in your best interest to contact an experienced San Diego breach of contract attorney as soon as possible after suffering from a breach to avoid affecting your chances of recovering damages.
Document Everything
Regardless of whether your breach of contract claim falls under a specific statute , it is critical that you document everything that has occurred in connection with the breach. Your attorney will be able to use this documentation to build your case going forward. Therefore, in addition to accessing a physical copy of the contract as soon as possible, you should also write out a detailed timeline of events. Describe not only the original contract itself, but also the history of your relationship with the other party, any conversations that may or may not have taken place regarding the breach, and how you learned about the other party’s breach.
Arrange a Consultation
Once you have reviewed the contract and documented the circumstances of the breach, reach out to an attorney experienced in contract law to schedule an initial consultation. This consultation is a chance for you to meet with your attorney to discuss your situation. If your attorney believes that you have a case, he or she will be able to walk you through the next steps that you need to take, if any actions on your part are needed, and how your attorney can help.
Available Legal Remedies
When a contract is breached, the injured party has several available legal remedies. In the case of breach of contract by either someone who is supposed to pay to you and someone who has agreed to perform for you, you may be able to recover damages. If you try to sue in contract law and file a breach of contract against the person who breached their contract, you will not recover for damages to your business. You will only recover for the damages that happened to your business from the breach of contract. So the damages prevented you from taking advantage of some opportunity such as a sale or a contract with someone else. You can also recover future damages if there is a continuing breach or continuing damages.
While damages for the actual loss are often awarded to the plaintiff in a breach of contract lawsuit, an important additional consideration for the recovery of damages is the element of time. The calculation of damages requires that the plaintiff be awarded compensation at the appropriate time that any losses were incurred. Failure to do so would make it difficult to achieve fairness in the calculation of damages.
Specifically for San Diego, there are several remedies provided for breach of contract. Specifically for a breach of contract, either the party who breached the contract may specifically be punished for breaching the contract regardless of whether anyone suffered damages or the parties can be put in the positions that they would have been in had the contract not been breached.
If the specific remedy to see that the other person performs their part of the contract is what you want, that is called specific performance. This is ordered when there is no remedy for damages available. Equitable relief, or specific performance, seeks to do more than make the plaintiff whole. Instead it seeks to achieve the terms of the contract in order to benefit both parties through what they initially agreed to do.
Contract Dispute Examples and Notable Cases
In an illustrative San Diego breach of contract case, the plaintiff was a local business that had signed a licensing contract with an industry giant to market its products. However, after the relationship soured, the large company discontinued its contract with the plaintiff without warning or explanation, despite enjoying lucrative profits from the partnership. The plaintiff sought out an experienced breach of contract attorney in San Diego, who was able to prove to a judge’s satisfaction that the discontinuation violated the contract’s "cause" requirement. The plaintiff was awarded $4 million in damages in that case. In another example , a plaintiff hired a breach of contract lawyer in San Diego County after a contractor failed to perform services as agreed in the contract. The attorney helped the plaintiff seek damages to ensure the restoration of the house that the contractor had damaged. These and other similar examples demonstrate the necessity of hiring an experienced, knowledgeable San Diego breach of contract attorney to achieve the best possible outcome in such legal matters.