Overview of a Breach of Contract in California
Under California law, a breach occurs when a party fails to perform a promise that was made to perform in a certain way or by a certain time, or to do an act at all. A breach may be "major" or "minor." A minor breach does not go to the essence of a contract, whereas a major breach does.
Minor Breaches
Generally speaking, if the breach is minor, the party with the right to enforce it will be entitled only to damages (and not some other type of relief). For example, if the defendant had promised that the work would be completed by December 31st, but the plaintiff could not show any actual damages suffered as a result of the work not being completed on time, the plaintiff would not be able to recover anything except the costs that it actually incurred because of the delay .
Major Breaches
However, if a breach is major, the party with the right to enforce the contract does not need to show that it suffered damages in order to recover. With major breaches, the party with the right to enforce the contract also may be entitled to "specific performance," which is a request to a court asking that a certain act be performed; or "recission," which is a request to a court to undo a contract. Any damages or other claims for relief that arise out of a breach will be determined using a reasonable person standard. In other words, what would a reasonable person believe in that scenario?
Benefit of Retaining a Local San Diego Area Attorney
When facing a breach of contract lawsuit, or preparing to file one, having a lawyer who understands the local San Diego courts and legal environment is crucial to your success. California law is complex and differs significantly from state to state; hiring a local San Diego breach of contract attorney can save you a lot of time, money and headaches further down the line.
California is a common law state, meaning that legal questions are generally addressed by judicial opinions rather than statutes. Some important exceptions to this general rule are areas like employment law and property law, which have been codified in the California Labors Code and Civil Code.
Disputes regarding contracts are governed by common law precedent in California, and rulings can vary regionally throughout the state. For example, some areas are more restrictive than others in allowing claims for emotional damage in cases of breach of contract. Being able to file a civil suit as opposed to a small claims suit can also make a significant difference in outcome.
California very broadly allows for damages to be recovered for breach of contract. For instance, if a broken contract leads to lost business, damages can potentially extend to fees and expenses incurred in setting up the infrastructure of the business. Many areas of California, including the San Diego area, allow for damages to be recovered for any amount that was available to the plaintiff by virtue of the contract, even if it involves loss of a potential future transaction.
California penalizes parties that try to shield themselves from liability for breach with an invalid non-compete clause. Unlike many other states, California does not limit the contract to the employer-employee relationship. It is clear in its position that it considers non-compete clauses to be void in any context.
The rules for contracts involving California real estate are codified in the Civil Codes. In addition to property issues, family law issues such as divorce settlement agreements are also explicitly covered in the California Codes. These contract law issues can affect anyone who participates in the economy of California, either as an individual or as a business.
Given the legal environment in California, it is important to work with a local attorney who is knowledgeable in all of the ways that California laws differ from those in other states. Breach of contract warrants serious consideration, and finding the right lawyer can make a significant difference in the outcomes of your current and future cases.
Attributes of an Effective Breach of Contract Attorney
A successful breach of contract litigation outcome typically requires a lawyer with certain key qualities:
A. Knowledgeable
Clearly, all potential breach of contract attorneys should have an in-depth knowledge of the elements required to establish a breach of contract claim.
For example, California courts have held that the four basic elements of a breach of contract are:
- the contract,
- plaintiff’s performance or excuse for nonperformance,
- defendant’s breach, and
- damage to plaintiff therefrom.
B. Experience with Breach of Contract Actions
It is important that you consider retaining an attorney that will handle your case. There are innumerable breach of contract actions. The law firm you contact should be experienced in litigation, trial, mediation and settlement negotiation. This knowledge will allow the law firm to properly assess your case and advise you of your options and potential outcomes.
Phases of a Breach of Contract Action
Generally, the process of a breach of contract suit includes an initial consultation meeting with the lawyer, followed by evidence preparation, filing the lawsuit, going to trial, and collecting on a judgment. An initial consultation meeting with a San Diego County breach of contract lawyer will usually center on the following questions: (1) does a valid contract exist between the parties; (2) if so, have the other party’s contractual duties under the contract been performed or excused; (3) did the party who did not perform breach the contract; (4) does the party who claims breach have damages as a result of the breach, and if so, what are these damages; and (5) does the party who did not perform have any defenses to liability for breach of contract. All of the above questions will need to be answered before the lawsuit can proceed. Once a breach of contract action is initiated, the court may require the parties to engage in formal discovery. There are numerous types of formal discovery requests, including interrogatories, many of which are pre-printed forms which allow you to merely fill in the blanks with requested information. These discovery requests can also include requests for admissions to admit or deny certain facts, requests for documents, and for oral examination by deposition. Formal discovery is ordinarily followed up by informal attempts to cooperate by the parties themselves. For example, a party could make, and the responding party could agree to, a stipulation to write off certain items, or to informally agree that an item is not in contention. It is important to remember that at all times, only relevant information will be admitted into evidence. The system is designed to keep out irrelevant information and evidence that is merely hearsay. Finally, the case may go to trial where a jury or court will decide whether a breach occurred and, if so, what damages were caused.
Typical Defenses Against a Breach of Contract Allegation
There are several legal defenses that can potentially be used to counter a breach of contract claim. Below are some of the more commonly utilized defenses:
1. The Contract Was Void or Voidable
If the subject of the contract was illegal or invalid, then the contract can be voided. A contract may also potentially be voidable on the basis of: lack of capacity, fraud or misrepresentation, mistake, duress, unconscionable contract terms, or estoppel.
2. Mutual Mistake
If the parties were mistaken about an essential term of the contract, then it is considered to be voidable due to mutual mistake.
3. Frustration of Purpose
If an unexpected event has made a contract as a whole essentially worthless to one of the parties, that party may be able to void the contract because of the frustration of purpose .
4. Statute of Limitations
All contracts have a statutory limits to how long you have to file a breach of contract lawsuit after the breach occurred. In California the statute of limitation for contracts is four years; however, not all states are exactly the same, so it is essential that you know where you need to file the lawsuit and the statute of limitations for that state.
5. Waiver and Estoppel
If both parties acted as if the contract existed and therefore he has partially performed on its terms, this may bar a claim for breach of contract, because the very existence of the contract is called into question.
Cost Considerations When Hiring a Lawyer
When you’re hiring a breach of contract lawyer in San Diego for your case, you’ll need to have an understanding of the various cost considerations that could be involved in the process. Depending on the specifics of your situation and those of the other party involved, costs could be comparatively minimal, or they could be much more substantial.
The good news is that there is a wide range of options for the fees a breach of contract lawyer will charge to be hired. Here are just some of the options:
Contingency fee retainer agreements are the most attractive to clients because clients don’t owe a lawyer anything if he or she loses the case. The lawyer absorbs all of the risk in these situations, and for that reason they reserve them for cases they believe they can win. Important to note, however, is that the portion of your recovery that goes to the lawyer is also typically higher than in other payment arrangements.
Hourly rates are very common for legal work, and most lawyers will break down their rates by increment of time. Hourly rates are a good option if you’re expecting the work to be limited, and it is preferable to a flat fee arrangement, because the total cost tied to your legal representation will correlate to the amount of time the lawyer spends on your case.
A flat fee arrangement could be beneficial for simple cases where the outcomes are basically certain. Any cases that obviously require less time and effort than most would be suitable for a flat fee. A client then pays the same amount regardless of how much time the lawyer works on the case.
Monthly retainer agreements involve paying the lawyer a retainer upfront and then paying them hourly for the duration of the case. This gives the attorney some assurance of compensation and allows them to commit their time to the matter without worrying for the immediate impact on their ability to get paid. Without the upcoming payments they’re owed, they would have to spend less time on your case.
How to Retain a Reliable San Diego Lawyer
When searching for a reputable contract breach lawyer in San Diego, there are several proven strategies that can be employed. While some may be less time consuming than others, no single method of obtaining local representation should be ignored. A combination of methods is recommended for the best results. First, try to get recommendations from trusted acquaintances. Those with legal backgrounds are often ideal sources of referrals, but friends and family may also be able to recommend representation based on their own personal experiences. Second, do not hesitate to read customer reviews online. There are many peer-reviewed services available to the public . You can find out what others have experienced when working with a particular lawyer or law group. Look out for complaints about how a lawsuit was handled, if the lawyer had adequate communication with the client, and if the result was satisfactory. Third, hire a lawyer with local ties. Those practicing contract law in San Diego are available only because they passed the requirements of the state bar. This means that they are adequately prepared to handle client cases, and they cannot practice elsewhere without first regaining licensure. Be wary of any outside lawyers who primarily operate in other states but have a small office in San Diego.