Transportation Company Sues In Business Contract Dispute

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Thursday, November 5, 2015.

In business, it is problematic when a party to a contract does not fulfill on the terms of the agreement in California. However, it is even more of a problem when terms of an agreement are not followed through twice. It turns out this may have been what happened to a transportation company recently in a business contract dispute.

The transportation company has recently filed a lawsuit against its former client, a motor carrier. The lawsuit was filed in late October and alleges breach of contract. The filing states that the plaintiff transportation company had an agreement with the defendant, Greatwide American, to lease equipment to the motor carrier company. However, the terms of this original agreement were not able to be fulfilled for some unstated reason.

This resulted in the two parties coming to a settlement agreement that allowed both parties to exit the contract. The original contract was expressly terminated in the beginning of 2014. Greatwide American apparently confirmed the terms of the settlement agreement in writing, according to the legal complaint filed by the plaintiff. However, the defendant ended up trying to go back on the settlement agreement, prompting the plaintiff to file the lawsuit.

The plaintiff is now asking for the court to find that the defendant is legally bound by the terms of the settlement agreement. However, just like any business contract dispute in California, the court will decide which side is in the right. This means it would behoove a party to such a business dispute to be as prepared as possible for the litigation process. Having adequate knowledge of applicable laws will be essential for success.

Source: setexasrecord.com, "Transportation business sues Greatwide American, alleging breach of contract", Robbie Hargett, Oct. 30, 2015


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