Contract Disputes

If you face litigation involving a contract, don’t wait to talk to a knowledgeable attorney at Murphy & Spagnuolo P.C. about your options for a favorable resolution to your dispute. Since 1979, our hardworking attorneys have served clients with experienced judgment and innovative legal solutions. We take a proactive, results-driven approach to our legal representation. Clients choose us for our high-quality service, years of experience across various legal issues, and proven record of success. We’ve earned a top rating in the state among our legal peers. Contact Murphy & Spagnuolo P.C. today for an initial case evaluation to discuss how our firm can help you protect your interests in litigation arising from a contractual relationship.

Common Causes of Contract Disputes

Contract disputes can arise due to various issues or problems in a contractual relationship. Common causes of contract litigation include:

• Breaches of Contract – Contract disputes arise when one party to an agreement accuses the other of having breached their contractual obligations. A party may commit a minor breach of contract, which does not frustrate the fundamental purpose of the contract; the non-breaching party may not cease performing when a minor breach occurs but may pursue legal action to recover losses caused by the breach. A material breach frustrates the fundamental purpose of the contract and may entitle the non-breaching party to cease performing and pursue legal action for their losses.
• Misrepresentations and Fraud – A party may initiate a contract dispute, alleging that their counterparty misrepresented material facts that induced the party to enter the contract or knowingly made false or fraudulent statements that the party relied upon to their detriment.
• Ambiguities in Contract Terms and Inadequate Contract Language – Ambiguous or unclear contract language can lead to disputes when parties have differing interpretations or expectations based on that language. Furthermore, disputes can occur when a contract has no provisions to govern the parties’ rights and obligations in a specific situation.
• Untimely Performance – A party receiving goods or services under a contract may initiate a dispute when they believe a company has not delivered those goods or services on time. Whether a party has performed promptly under a contract can involve complex factual and legal issues. However, contracts may include “time is of the essence” clauses, which can mean the parties agree that failure to perform in a timely manner constitutes a material breach.
• Non-Payment – Companies that sell products or services may pursue legal action when a customer fails to pay the amount required under the parties’ contract. Disputes may also arise when parties disagree over the specific amount the customer owes.
• Force Majeure – Force majeure refers to circumstances outside parties’ control that make performing their contractual obligations impractical or impossible. Contracts may include force majeure (“act of god”) clauses that define what circumstances constitute a force majeure event and the parties’ respective rights and obligations when an event occurs.

Types of Contract Disputes

At Murphy & Spagnuolo P.C., our litigation attorneys can help you protect your interests and seek a favorable resolution to contract disputes arising from:

• Business and Commercial Contracts – We represent businesses of all sizes from all industries in resolving commercial contract disputes, such as those involving non-performance/non-payment, IP license infringement, shareholder disputes, securities claims, financing deals, and insurance contracts.
• Employment Contracts – Our attorneys work with employers engaged in litigation with current and former employees regarding their contractual agreements. We handle employment contract disputes such as breaches of restrictive covenants, terminations for cause, and grievances under labor agreements.
• Entertainment Contracts – Our firm has extensive experience negotiating and drafting producer, director, and talent agreements, publishing contracts, acquisition agreements, sponsorship agreements, and compensation agreements. Our insights into entertainment contracts allow us to understand your legal rights and options as a producer, director, or talent in a contractual dispute with a studio or other parties.
• Real Estate Agreements – We represent parties involved in legal disputes over real estate agreements, including purchase and sale agreements, residential and commercial leases, financing agreements, and developer agreements.

Legal Solutions for Contract Disputes

When parties find themselves in a contract dispute, they may pursue resolution of their dispute through various means, such as:

• Informal Negotiations and Settlement – Parties in a contract dispute may choose to resolve it as quickly as possible through informal negotiations to reach a settlement. This can help the parties get their contractual relationship back on track or avoid the time and expense of more formal litigation.
• Mediation – Parties may agree to negotiate a settlement of their contract dispute through mediation. In mediation, a neutral third party, called a mediator, helps facilitate the negotiation by helping the parties appreciate the strengths and weaknesses of their cases and suggesting solutions the parties can incorporate into their settlement.
• Arbitration – Arbitration provides a trial-like alternative to court litigation, although arbitrations typically have more streamlined rules and procedures that make the process quicker than a court case. In arbitration, one or more neutral parties, called arbitrators, hear the parties’ evidence, witness testimony, and arguments and consider them to issue a binding decision revolving around the case.
• Lawsuits and Court Litigation – Parties may take their contract dispute to court to have a jury or judge resolve the case following a hearing or trial.

A party who prevails in their contract dispute may pursue various forms of relief, including:

• Monetary Compensation – A non-breaching party may demand compensation for losses arising from the other party’s contract violation, such as unpaid contract price, lost profits, costs of securing replacement performance, or damaged goodwill or reputation. Contracts may also give a prevailing party in a contract dispute the right to seek compensation for the legal expenses incurred in pursuing the dispute.
• Injunctive Relief – A party may seek an injunction against their contractual counterparty to prevent them from taking specific actions. For example, when a party breaches an IP license agreement, the IP holder may obtain an injunction that precludes the breaching party from continuing to use the intellectual property.
• Specific Performance – In rare cases, a court may order a breaching party to fulfill its contractual obligations. Courts usually award specific performance in contract disputes when financial compensation does not make the non-breaching party whole and the contract involves unique subject matter that the non-breaching party cannot replace.

How Our Law Firm Can Help with Your Contract Dispute

A contract dispute can become a stressful, time-consuming process. The legal team at Murphy & Spagnuolo P.C. can help take the stress of the dispute off your shoulders and fight for your rights by:

• Gathering evidence, such as contractual agreements, correspondence, financial records, and witness statements
• Reviewing the facts to evaluate your legal rights and options
• Advising you at each stage of the dispute and preparing you for what to expect, including the potential outcomes
• Vigorously negotiating on your behalf to pursue a fair settlement of the dispute
• Advocating your case in arbitration or court litigation to help you seek the best possible outcome that protects your interests

Contact Us Today to Discuss Your Legal Options

When you have a contract dispute, you need experienced legal advice and advocacy from a dedicated civil litigation attorney to protect your rights and options. Contact Murphy & Spagnuolo P.C. today for a confidential consultation with our legal team. For over 30 years, we’ve taken pride in serving our neighbors and creating close relationships with our clients. Let us guide you through a contract dispute and pursue a favorable resolution to your case.