The Law Office of Lynnette Ariathurai A Professional Corporation

Lawsuit filed following business contract dispute

Contracts form the foundation of most business relationships, both in California and across the nation. These legal documents are the source of information concerning the expectations held by all parties of a business agreement, and they are the first thing that individuals turn to when there is a question or concern. When a problem arises that cannot be worked through by the parties to the contract, a business contract dispute begins. In some cases, these matters end up going before a court to seek resolution.

Such is the case for a current dispute between one state and the company contracted to remove scrap metal from several landfills. The matter began with a 2003 contract in which the state hired a recycling company to remove scrap metal from two landfills. The reason behind the work was an order from the Environmental Protection Agency that stated that the landfills must be cleaned up.

The contract stated that the recycling company was to remove scrap metal from the two landfills, as long as the county paying for the cost of the work had certified funds available to make payment. The duration of the contract was given as 10 years. However, the county issued a letter to the recycling company within that 10-year time frame, stating that there was no obligation to pay for scrap metal collected from the landfills after a cap was imposed two years prior.

Within the business contract dispute lawsuit, the recycling company claims that the work performed was contracted for before the county made the decision to place a cap on the amount of scrap metal that would be collected from the landfill sites. It is asserted that the county owes $3.6 million for work already completed, as well as an additional $1.8 million in interest. As the matter moves forward, many business owners in California and across the nation may watch to see how the case is resolved.

Source: staradvertiser.com, "Big Island recycler sues Hawaii County over contract dispute", Feb. 19, 2015

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