KSN obtained an excellent settlement for a client named as a defendant in a breach of contract lawsuit.
Allegations and Damages
The client, a restaurant, entered into a contract with a supplier for the weekly delivery of linens. Roughly one month into the contract the linen supplier, without notice, removed its linens from the restaurant and refused to perform any further on the contract.
Soon thereafter the linen supplier filed suit against the restaurant for unpaid invoices. In addition to seeking payment for the outstanding invoices totaling around $2,000, the linen supplier sought $13,000 from the restaurant pursuant to a liquidated damages provision in the contract.
The supplier alleged that the restaurant breached the contract by failing to pay and it was forced to terminate as the restaurant was carrying four weeks of unpaid invoices. In addition to the claimed $15,000 worth of damages, the supplier sought the attorney’s fees incurred in the collection case.
Litigation Process
KSN attorneys filed numerous affirmative defenses in response to the complaint. Most importantly, following a careful review of the contract between the parties, we asserted a defense that the supplier failed to comply with a contractual provision requiring a 30 day notice prior to terminating the contract.
In addition, the discovery process revealed that the supplier never sent a demand for payment. Realizing that it failed to comply with the contractual language in terminating the contract, the supplier agreed to settlement for less than 20% of the total damages sought.
With KSN’s assistance, the client was able to resolve a case for a small percentage of the $20,000.00 that could have been at issue.
Legal Resource
Do not hesitate to contact our law firm if your condominium, homeowner (HOA), and townhome community associations has any legal concerns. Please call 855-537-0500 or visit www.ksnlaw.com.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We represent thousands of clients and community associations throughout the US with offices in several states including Florida, Illinois, Indiana, and Wisconsin.
Please note the material contained in this article is for educational and informational purposes only and does not constitute legal advice. No attorney-client relationship is established by your review or receipt of the information contained in this article. You should not act on the information discussed in this article without first obtaining legal advice from an attorney duly licensed to practice law in your State. While KSN has made every effort to include up-to-date information in this article, the law can change quickly. Accordingly, please understand that information discussed in this article may not yet reflect the most recent legal developments. Material is not guaranteed to be correct, complete, or up to date. KSN reserves the right to revise or update the information and statements of law discussed in the article law at any time, without notice, and disclaims any liability for your use of information or statements of law discussed on the article, or the accessibility of the article generally. This article may be considered advertising in some jurisdictions under applicable law/s and/or ethical rules/regulations. © 2015 Kovitz Shifrin Nesbit, A Professional Corporation.