California Contract Litigation
The intent of signing a contract is to protect both parties. Contracts are agreements between at least two parties that are typically in writing but can also be verbal or implied. When one party believes the other party isn’t living up to their responsibilities in the contract, they have the option to sue.
This is done through contract litigation. Sometimes, parties will simply settle outside of court, but when a formal process is needed to resolve a contract dispute, you need an attorney who will aggressively defend your best interests.
Litigating Breach of Contract
Contracts cover a vast array of arrangements from rental agreements and loans to employment agreements and purchase agreements. When there is a breach of any of these contracts that can’t be resolved between the parties on their own, it may be time to escalate the matter into litigation. Whether you are the one who wants to sue or are the one being sued, you will need skilled representation.
Things to Consider Before Suing
Before suing for breach of contract, your lawyer will take a look at the contract because even if it seems like you should be able to start a civil suit, there may be other considerations.
Your contract may be subject to a statute of limitations, arbitration and mediation requirements, venue and choice of law stipulations, and designated responsibility of attorney fees and court costs.
Your lawyer will help you figure out whether contract litigation is a possibility and whether it will be financially worthwhile.
Statute of Limitations
For most lawsuits in California, there is a statute of limitations. Usually, a person has four years from when the breach of contract happens to file a lawsuit. If the contract is a verbal contract though, they only have two years.
Arbitration and Mediation Requirements
Your contract may specify that arbitration or mediation is required before you can sue or be sued. Some contracts even say that arbitration is the only option.
Venue and Choice of Law
For contract litigation, a lawsuit must be filed in either the county where the defendant lives or works, the county where the contract was made, the county where the contract was to be performed, or the county where the contract was broken. The contract may specify exactly where any lawsuit must be filed. The contract itself might also indicate that either side that wants to sue must sue in a particular state following that state’s laws.
Attorney Fees and Court Costs
The contract might indicate who pays for attorney and court costs. Your lawyer will look at this to determine your financial risks of suing or defending against a lawsuit.
Contract Breach Requirements for Litigation
There are four elements needed to demonstrate that there has been a breach of contract. Without a breach of contract, there isn’t much of a case to litigate.
The lawsuit will have to be able to show each element:
- That a contract exists
- That the plaintiff has performed their duties listed in the contract
- That the defendant failed to perform their duties listed in the contract
- That the plaintiff suffered damages
If any one of these elements is missing, there is no breach of contract, legally speaking. In California, oral agreements are enforceable, but unlike written agreements, they can be hard to prove.
Fortunately, with emails and text messaging taking the place of phone calls and in-person meetings more often, there are frequently several ways to provide supporting evidence for oral contracts. California does require certain types of agreements to be in writing, though, like transfer of title for real estate or home improvement projects over $500.
Contract Litigation Lawyer in California
The types of contracts that could require litigation are nearly endless.
Some examples of contracts we frequently litigate include the following:
- Lease agreements
- Real estate contracts
- Condominium covenants
- Construction contracts
- Confidentiality and non-compete agreements
- Insurance policy contracts
- Business contracts
- Employment contracts
- Purchase agreements
If you need representation for contract litigation and are located anywhere in California or Texas, contact us for a free consultation. We are dedicated to our clients’ best interests both inside and outside the courtroom. When you are facing litigation, it may feel overwhelming regardless of which side you are on, but the compassionate team at LloydWinter, P.C. will fight for you.
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