Breach of Contract Settlement Financing

RD Legal Funding can help by accelerating settled legal fees for breach of contract cases. To secure immediate post-settlement financing, please fill out the brief online application located to your right. Or you can call RD Legal toll-free at 800-565-5177 to speak with one of our legal finance experts.

Breach of Contract Law

To breach a contract is to fail to perform any of the contract’s terms, either written or oral, without a legitimate reason. Common examples of breach of contracts include:

  • Failing to complete a job
     
  • Not paying in full or on time
     
  • Failing to deliver all goods
     
  • Substituting inferior or significantly different goods
     
  • Not providing a bond when required
     
  • Being late without excuse
     
  • Any act which shows the party will not complete the work (anticipatory breach)

The person or business that breaches a contract is known as the breacher. The other, non-breaching party to the agreement is entitled to a remedy under the law, usually one of the following:

  • Damages. Payment is the usual remedy for breach of contract. The goal of compensatory damages is to bring the non-breaching party back to where they were before the breach. Punitive damages above and beyond compensatory damages are meant to discourage the breacher from repeating their offending behavior. Nominal damages are small amounts awarded when no serious monetary loss resulted from the breach. When specified in the original contract, liquidated damages are awarded, usually consisting of a reasonable estimate of what the actual damages are expected to be.
  • Specific performance. If damages are not sufficient compensation, the non-breaching party may attempt to have the court order the performance of the duty stipulated in the original contract.
  • Cancellation and restitution. If the non-breaching party has already given a benefit to the breaching party, they may decide to cancel the contract and sue for restitution. Cancellation voids the original contract and relieves both parties of their obligations. The goal of restitution is to return the non-breaching party to the position they were in before the breach.

When disputes over contracts involve small sums of money — $3,000 to $7,500 depending on the state — they are handled in small claims court. However breach of contract cases can involve millions of dollars. In January 2013, Southwest Airlines settled a breach of contract class action suit for $29 million. The airline sold millions of alcoholic beverage vouchers for $5.00 each, without expiration dates. On August 1, 2010, with 5.8 million of the vouchers still unredeemed, Southwest announced a change of policy. The vouchers would now only be valid on the flight in which the voucher was purchased and the policy would be retroactive. One Illinois man brought the suit, representing himself and all other Southwest passengers who had purchased the vouchers but had not yet redeemed them. As part of the settlement, Southwest agreed to put an expiration date on all future vouchers and to honor all the outstanding vouchers.
 
Most lawsuits lodged to keep sports teams from moving are based on breach of contract. Starbucks CEO Howard Schultz sued the owner of the Seattle Sonics for breach of contract, in a complicated legal gambit intended to keep the Sonics in Seattle. However, breach of contract allegations are also lodged against sports figures. When golfer Rory McIlroy signed a $200 million deal with Nike Golf, apparel-maker Oakley sued him for breach of contract. The Yankees are said to be considering whether Alex Rodriguez breached his contract by taking medical treatment from an outside doctor without the team’s authorization. 

RD Legal Provides Post-Settlement Funding to Attorneys and Plaintiffs

Post-settlement legal funding, also known as our Fee Acceleration product, is a cash flow solution for attorneys waiting on slow-paying legal fees. Call RD Legal Funding at 800-565-5177 to speak with a legal funding specialist. Or fill out the brief form on this page to begin the application process.

 


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