Problems Often Arise If Contract Dispute Goes Unresolved

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Friday, July 29, 2016.

California business owners are undoubtedly not strangers to various challenges that arise when the terms of a signed agreement are not honored or another type of disagreement erupts in between signature parties. If left unresolved, a contract dispute can cause lasting and devastating negative effects for business owners and workers alike. In a recent situation in another state, a business relationship that has been in effect for 30 years is coming to an end because of a contract disagreement.

The collaboration between a university research center and a state's mental health facilities has been functioning for three decades. During that time, researchers say they created a new system for treating those with mental illnesses. In order to implement the plan, the researchers would offer training to mental health workers at many of the state community mental health centers. The recent contract dispute will apparently cause that cooperative effort to cease.

One spokesperson for the state said that changes in the contract were needed to ensure that Medicaid funds used to support the research center's efforts were being spent appropriately. A research center spokesperson responded by saying that the center could not accept the offer made by the state because of certain provisions in the offer. Reportedly, there was a deadline for contract resolution in place and that has since passed. 

Due to the fact that the contract issues were not resolved, the business and community efforts between the two entities will now come to an end. Many people have been laid off from their jobs. The research center is being closed. To avoid similar outcomes, a California business owner may want to act alongside a skilled business attorney who has experience negotiating contract disputes and who has achieved successful results for others.

Source: kmuw.org, "Mental Health Contract Dispute Sparks Criticism Of Brownback Policies", Jim Mclean, July 13, 2016


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