If you have a relationship with another party or entity where they have a duty of care to act in your company’s best interest but violate this duty, they may have breached their fiduciary duty to your company. When this happens, it could be possible to take legal action and come to a resolution to fix the wrongs that were done or obtain compensation for losses. Filing a legal suit when a breach of contract or fiduciary duty is possible, and a suit can result in securing financial compensation.
Business owners in California that have experienced a breach of contract could have suffered significant damages. It is imperative that these damages be accounted for and made up. However, given the busy schedules and many responsibilities that business owners have on their plate on any given day, working with an attorney to manage a legal suit can be beneficial. Handling such an endeavor alone can take away from focusing on the work that goes into keeping a business operational.
Business owners who have questions about their legal rights when a contract has been broken by another party can call on the experienced Los Angeles business and civil attorney at the Leiva Law Firm for sound legal guidance and representation.
Business Owners Seeking Financial Compensation for a Breach of Contract
When another party does not follow through with certain tasks or actions they agreed to take on, this can result in a company suffering significant losses. Fortunately, when this happens a business is not without legal options to remedy such a situation.
A lawsuit may be a means to force another party to provide certain services or take specific actions that they were contractually obligated to do but failed. A suit can also secure financial compensation.
Financial compensation from a breach of contract claim may include the following damages:
- Expectations or General Damages
These damages are the first-hand losses that a business suffers from a breach of contract. For example, if a bakery has a contract with a wholesale supplier of a certain type of flour at a specific cost, the supplier is expected to deliver the flour on the appropriate dates and for the agreed-upon sum. If the flour supplier does not show up and make their delivery, forcing the bakery to go out and buy flour from another provider who charges more, that difference in price may be considered an expectational damage reimbursable through a claim.
- Consequential Damages
A breach of contract can have far-reaching negative consequences for a company. Consequential damages follow in the aftermath of a breach of contract. For example, let’s look at the bakery again. During the time the bakery had to search for new a new flour provider, they may have been unable to make their baked goods and, as a result, could not open their bakery for business. In this case, they may be able to sue for the loss of sales they would have had if they didn’t have to take time away from operations to search for a new provider in the midst of their contracted wholesaler’s breach of duty.
Speak with an Attorney At Leiva Law Firm Today
A breach of contract or fiduciary duty can cause plenty of economic hardships for a company. To make up for those financial losses, a lawsuit may be appropriate. Call the Leiva Law Firm today at (818) 519-4465 to schedule a free consultation with an experienced attorney.
