Legal Question in Business Law in California

Options for Breach of contract

We are an IT services and solutions providing company, we provide consultants on a temporary basis for client projects .For one of our client projects we provided a consultant from one of the vendors as we did not have the required resource in house, we had the contract agreement and all the related documents signed from the vendor .After 4 months one fine day we came to know that the resource has left the client site without providing prior notice and left the county .We have a contract with the vendor which clearly states that the vendor needs to give us a prior notice of about 2 weeks before quitting the project and we have lost the contract with the client because of this .The current contract was supposed to last till the end of 2010. Now how we can go after the vendor to recover our damages .we have held on to the vendor payments because of this , now the vendor is saying that he will go to the collection agency if we do not release the payments.

We have lost around 100,000 of potential revenue for our company because of this, so how we can go about it and what options we have?


Asked on 4/14/09, 11:15 pm

5 Answers from Attorneys

Timothy J. Walton Internet Attorney

Re: Options for Breach of contract

Moving quickly may possibly avoid the vendor's use of a collection agency, as many collection agencies will not want to get involved in a lawsuit.

Find a competent business litigation attorney in your area and seek advice about the specifics of your situation.

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Answered on 4/15/09, 11:15 am
Cathy Cowin Law Offices of Cathy Cowin

Re: Options for Breach of contract

How do you go about it? This depends on the situation and your goals. Analysis may include vendor solvency (i.e. how likely is my investment in legal fees to result in actual payment of money) and strength of damages evidence (i.e. linking loss of client to actions of consultant). An attorney demand letter would be an appropriate start. Also consider ADR (Alternative Dispute Resolution) options, which are usually quicker and less expensive than filing a lawsuit. For instance, is there an arbitration clause in the contract? Would all parties consider mediation? Assuming ADR is not an option, file a lawsuit. An attorney would review the contract as well as your evidence and recommend a strategy for your particular situation. The information in the post is not sufficient to make such a recommendation, but I would be pleased to speak with you further to answer more specific questions. (Please note that an attorney-client relationship cannot be formed until a conflict check is done and my firm sends an engagement letter.)

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Answered on 4/15/09, 11:21 am
Terry A. Nelson Nelson & Lawless

Re: Options for Breach of contract

You hire experienced counsel to take all appropriate legal actions, and defend all claims and actions brought against you, based upon whatever facts and evidence you actually have. It may also be possible to negotiate your way out these problems without litigation. You won't know until you and your counsel try. Feel free to contact me if serious about doing so; I'll be happy to help you.

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Answered on 4/15/09, 1:03 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Options for Breach of contract

Your company will need to initiate a process starting with letters from your attorney and probably proceeding to a lawsuit, or more accurately a lawsuit and countersuit.

You will need to gather and preserve all records and other evidence. Any further answer depends on what the contract says.

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Answered on 4/14/09, 11:31 pm
Daniel Bakondi The Law Office of Daniel Bakondi

Re: Options for Breach of contract

There are a number of factors to consider before filing a lawsuit, if that is the proper course. Feel free to contact my office to discuss. Have your contract handy as I will have a few questions.

Best,

Daniel Bakondi, Esq.

IMPORTANT:

No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this communication, and nothing herein constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.

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Answered on 4/14/09, 11:31 pm


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