Legal Question in Business Law in California

Breach of contract/disclosure

One condition of our settlement agreement with a city in CA (stemming from an inverse condemnation suit), states the city will convey a portion of their land to us, which borders ours. But upon reviewing the paperwork, we see only half the land is being conveyed. Upon questioning, they now say they didn't/can't include it because they are ''using it'' for stormwater. The agreement states that if any terms need to be enforced, the prevailing party recovers fees and costs - but I don't think they CAN legally convey it.... It also says that if a dispute arises, we go to mediation. So my questions are:

1) Is this considered a breach of contract? It's not a dispute, is it? Will the judge DEFINITEVELY make them pay our new costs to renegotiate/mediate? We do not want to incur additional legal expenses, but also feel we are entitled to be compensated for that item, and may have to fight for it..

2) They never disclosed to us that they were not complying with the terms - were they not supposed to do so?? We feel certain this was an offer they had no intention of delivering from the start. What remedies might be available to us??

Thank You Very Much


Asked on 12/22/08, 1:00 pm

2 Answers from Attorneys
Todd Stevenson Stevenson Law Office

Re: Breach of contract/disclosure

Were you represented by an attorney or law firm? Did you read the contract carefully before signing it? It sounds like the City is not in breach, unless there was some sort of fraud that I am not hearing on these facts.

Who has to pay for mediation should be defined by the alternative dispute resolution clause in the agreement.

You might consider hiring (or consulting) with an attorney to review the documents and advise you on your options.

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Answered on 12/24/08, 11:45 am
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Breach of contract/disclosure

If the city is refusing to convey part of what the settlement agreement said it would convey, then it is breaching the agreement. You can ask the judge to enforce the agreement; if the city really can't live up to the terms, the judge will probably order it to compensate you in some other manner -- especially if the city should have seen this problem sooner. If the city had no reason to anticipate the problem, though, the judge may let it out of the settlement agreement and put the case back on course for trial.

I can't say that the court will "definitely" make the city pay your fees when you seek to enforce your rights. From what you have written, however, it seems the court will have a hard time justifying a denial of those fees (assuming, of course, that you request them properly and that you haven't waived your right to recover them).

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Answered on 12/22/08, 2:06 pm


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