The Law Office of Lynnette Ariathurai A Professional Corporation

Guardian Interlock files lawsuit due to contract dispute

Most businesses in California rely on contracts to provide guidance as they plan for the future. For example, if a company agrees to provide a certain amount of a product over a specific period of time, the company can make decisions regarding production numbers and employment. However, a contract dispute can leave a company scrambling while it faces the financial implications of a breach.

Guardian Interlock has recently found itself embroiled in such a dispute. The company manufacturers ignition interlock systems that a person being monitored for driving under the influence of alcohol must blow into before a car will start. Guardian's device also takes a picture of the person. The company has operations in 26 states.

Guardian claims that the Minnesota Department of Public Safety and Driver and Vehicle Services has breached its contract. The contract went into effect in 2011 and was set to extend until next summer. However, the company claims that it was asked to ensure that the devices store a certain percentage of photographs taken. It claims that it met the state's standards in the specified time frame, but the state then demanded that the standard be applied to a smaller subset of data. Because Guardian did not meet that standard, the state decertified the company.

Guardian now claims that it has suffered harm as a result of a standard that is not included in the contract. Because the company must report the decertification to other states, the alleged breach is harmful to Guardian's reputation, and the lawsuit is seeking unspecified damages as well as a temporary restraining order that would allow the company to continue conduct business in the state. Unfortunately, Guardian isn't the only company to become embroiled in a complicated contract dispute. Many companies in California have also been forced to pursue litigation as a result of a breach of contract. Fortunately, there is legal help available to guide those impacted through the process.

Source: startribune.com, "DWI device maker claims breach of contract with state", Chao Xiong, Nov. 13, 2015

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