The Law Office of Lynnette Ariathurai A Professional Corporation

Contract dispute involves inventor and another company

A person who has invented a unique product in California naturally takes pride in their accomplishment. Getting paid for that invention after reaching an agreement with another company is often an important goal. However, if the payments stop coming because the other company fails to follow through with a contract established between the two parties, the relationship can turn sour quickly. One man is facing this scenario in an out-of-state contract dispute.

The man's business creates equipment used in the petrochemical support field. He was interested in selling some of these goods across the United States. He made an agreement with another company that would allow him to be employed there each year, as well as benefit from his products’ royalties for the remainder of his life. In 2003, the man’s business became a division of the other company.

The man started as an employee of the other company in 2004. However, he later started negotiating different contracts, since he was worried about his rights regarding particular inventions as well as his commissions. At that time, he was terminated and wasn’t told why, he said. He said he hadn’t received a single payment since the termination.

The inventor seeks damages, including royalties, commissions and profits lost in the process. He asserts that the breach of contract has caused him emotional distress. When one party does not perform in concert with a business contract entered into with another party, financial losses may accumulate. If the court in this contract dispute determines that the written agreement was materially breached by the employing company, it will adjudicate the monetary damages claimed by the inventor. California business owners facing these issues reserve the right to seek justice through our civil court system.

Source: The Southeast Texas Record, "Inventor sues company for breach of contract, fraud", Melody Dareing, May 9, 2014

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