Do You Have a Breach of Contract Case?

I’m often asked by client’s potential clients if they had a breach of contract case.

The facts usually determine whether or not there is a breach of contract case. Often times the first questions I ask my clients is, what’s the value at issue?  Is it a situation where you’ve lost a substantial sum or money or some very minor amount of money? Is it a situation where you need some type of injunction otherwise your business may be very, very damaged? A lot of times that simple question is going to answer whether or not they should pursue an action.

For example if you have a contract with someone and you believe it has been breached the result of that breach is you’re not paid $1,000. You may in fact have a valid claim for breach of contract but this is not one that you may not want to engage an attorney to handle. That’s because your attorney’s fees are going to outweigh the value of the recovery in many circumstances. Additionally I often advise clients in those situations where it’s a lawsuit for less than $5,000 they can pursue that on their own in small claims court. It’s not a situation where an attorney is required. There’s a specific system set up in court for those smaller monetary amounts.

Now when you’re facing a situation where you’re owed $50,000 or $100,000 or millions of dollars those are much more serious in nature. Those are cases where it is very beneficial to have an attorney involved and those are typically cases that you should pursue for a breach of contract.

The other types of cases where it’s often times beneficial to pursue for a breach of contract involve cases where you may need an injunction to stop someone from harming your business. There may not be a specific monetary amount at issue but your business could be harmed to a degree that it may not recover but for getting some type of injunction. Those are two primary cases where I would advise yes you have a cause of action for breach of contract and yes you should pursue it.

So again the facts are going to determine what type of case you have what’s the monetary amount at issue but consult with an attorney. Ask them what’s my best option?