Contract Disputes 101
In its simplest terms, a contract dispute is any dispute arising out of or relating to an agreement. Although contracts can be formed verbally, through the conduct of the parties, or in writing, because the terms of the agreement are often in writing, it is a document – whether typically referred to as a written contract, a purchase order, a bill of sale, a warranty, an operating agreement, a termination agreement, etc. – that brings parties together to form a legally enforceable promise and a contract dispute when one of the parties fails to live up to his or her obligations. Contract disputes can, and often do, arise from the failure of one party to perform under a written contract or simply refusing to do what the party was expected to do under the contract. This is sometimes referred to as a breach of contract. More often than not, this occurs because the performing party either misunderstood his or her obligations under the contract , does not agree with the position of the other party regarding his or her obligations, or has no intention of performing under the contract due to certain issues, such as being unable to secure financing to complete the project undertaken by the contract. In commercial real estate purchases and sales, for instance, issues involving financing is not uncommon and often leads to litigation. Regardless of the business context in which contract issues may arise, contract disputes usually require the assistance of a lawyer to commence a lawsuit for specific performance of the contract, if possible, or require lawsuit under a fraud theory. Because contract disputes, per the engagement letter, sometimes are billed at an hourly fee, the sum of the entire contract must be considered to determine whether the dispute warrants the cost typically involved in litigating in state court. As the adage goes, always (and only) retain an attorney when the contract in dispute is worth litigating over!
Benefits of Hiring a Contract Dispute Attorney
The most reliable way to find the appropriate local contract dispute attorneys is to ask people you know who have been through the same situation. Your network will give you constructive feedback even if they have lost their case. In addition to that feedback, it is always a good idea to check their Avvo ratings and reviews online. Avvo is an online lawyer referral and rating service that provides ratings of local attorneys on a scale of 1-10. When a lawyer refers to themselves as an expert in contract disputes, it is likely that they already have 3 or 4 significant verdicts to obtain a high rating.
There are many reasons why it is best to hire a contract dispute attorney with experience handling similar cases. First, unlike a general litigator, a lawyer who handles contract disputes has seen many cases like yours and has experience and knowledge about the issues that may be unique that your case presents. Another benefit is that they are usually well acquainted with judges and court personnel that may be necessary for your case.
A contract dispute lawyer can help you efficiently resolve a particular issue. Most experienced contract dispute lawyers are good at spotting issues that arise and finding solutions for them. Finding problems when they arise is usually much better than letting someone throw you off track.
Top Characteristics of the Best Contract Dispute Lawyers
When seeking the right contract dispute lawyers, there are crucial qualities and credentials one must consider to ensure they are well equipped to handle the complexities of contract disputes. A proven track record in contract litigation is vital; they should have successfully represented clients in similar disputes, demonstrating their ability to navigate the legal system effectively.
Moreover, experience with and understanding of the specific contexts in which contractual issues arise is equally important, as it enables them to provide tailored legal advice. For instance, a contract dispute lawyer who specializes in construction contracting law will be familiar with the industry-specific regulations and standards that govern the formation and enforcement of contracts within that sector.
It is also crucial for a contract dispute lawyer to possess strong negotiation skills, as many contract disputes can be resolved through negotiation and settlement rather than litigation. Being knowledgeable about alternative dispute resolution procedures is also important, as this may help save clients time and legal fees.
An equally important quality is the ability to clearly and effectively communicate complex legal concepts and terms in a way that is easy to understand for someone without a legal background. This is essential to ensure that clients fully comprehend their rights and obligations in relation to their contract dispute.
A contract dispute lawyer should also be personable, as it is important that the legal relationship is based on mutual trust and understanding. A contract dispute lawyer must be strategic and critical in their thinking and have the flexibility to adapt to the dynamic nature of negotiations and litigation.
Further, effective contract dispute lawyers actively stay abreast of changes and developments in this complex area of the law. The right contract dispute lawyer should be able to provide reliable legal advice on complex issues that could affect any viable resolution of a contract dispute.
How to Search for Nearby Contract Dispute Attorneys
Finding, interviewing and hiring a leading contract dispute lawyer or law firm may seem to be time consuming; however, don’t hire "blindly." Hiring the right contract dispute lawyer can make all the difference in the world between winning or losing your case.
There are a number of ways to find a great contract litigation law firm. First, join an industry trade association. In some cases, these associations can assist you in finding a great contract dispute lawyer. However, always do your own due diligence on any recommendation.
Second, search reputable online directories. For example, there are a number of online directories that list the best contract dispute lawyers in an area or state. A few that we recommend:
(1) Law Guru’s Lawyer Directory – a nationwide directory of lawyers that includes lawyer listings by area of practice, expertise, location, and more. The Law Guru Directory contains contact information, links to individual home pages (if available), and historical information, such as when the attorney was admitted to the bar. All attorneys listed in this directory have a State Bar number.
(2) FindLaw Directory – Another nationwide directory that helps users find lawyers by area of law and location.
Third, check out Internet reviews. Internet reviews can be a real source of information. A few that we recommend:
(1) Yelp.com- Consumers can read and write reviews of businesses. While more commonly used by consumers to find restaurants and other retail establishments, Yelp can be a good resource for locating lawyers. Yelp allows consumers to review their lawyers’ services and provide ratings. Yelp gets high traffic around the country.
(2) Google+ Local – Google offers consumer reviews on local businesses and other service providers in a number of categories.
Questions to Ask a Prospective Lawyer
When you first meet with a business litigation attorney, you should go into the meeting equipped with questions that provide you with a deeper understanding of the lawyer’s qualifications and approach to a contract dispute. Although every case is different, as a potential client, you are entitled to learn about the lawyer’s background and general experience:
QUESTION 1 – Certified Specialist
This is a good question to ask a potential lawyer. Only five percent of California attorneys are certified as specialists by the State Bar. There are several different practice areas in which a lawyer can be certified as a specialist. The most common areas of specialization for Orange County contract dispute lawyers are: Tax, Estate Planning Trust and Probate Law, Employment Law (only as it relates to the negotiation of employment contracts), Bankruptcy Law, Family Law and Personal Injury Law. For example, for business litigation matters consultants will use a law firm that specialize in construction contract litigation. If you need a contractor default claim, you will need to find a lawyer that specializes in construction contract dispute. A business law firm that does not have that certification will get up to date training on the latest CCIM, Nasstrac or CGL education. If you are looking for payment bond default issues, the lawyer needs to have experience in an appellate court to win .
QUESTION 2 – Experience
Experience and history in litigation should be a critical component to assessing whether you want to hire a lawyer. The lawyer that you hire should have actual years of experience to be on your side. The lawyer’s experience must be relevant to the matter. Any lawyer in California can handle a routine contract dispute, but a highly complex litigation requires a lawyer with experience, knowledge and ability to defend smartly and effectively against a tough dispute. The lawyer should have experience in all aspects of litigation: from pleadings to discovery to pre-trial motions, settlement and trial.
QUESTION 3 – Affiliations
The lawyer that you are looking to hire should be highly recognized as a lawyer in the community. The lawyer should be a member of several professional organizations, including but not limited to the following: The lawyer should also have been on board in a number of local, state and national committees dealing with contract law. Many of the best lawyers have attended reputable law schools. For example, the best lawyers attended Harvard, Stanford, Yale Law School and University of Southern California Gould School of Law. If your lawyer is a member of any of these associations, it is worth noting. But don’t assume that every lawyer attending these schools graduated at the top of the class.
How to Prepare for Your Initial Consultation
When we look at the types of business litigation cases that result in court filings the most popular deal with contract disputes. These are the cases where a vendor isn’t getting paid. Or a customer believes he or she is being over charged. It could be even more complex than that and it is always wise to seek out help on these types of cases, especially when you want to know whether the dispute can be resolved by an agreement with the parties or not. To get there we have to prepare for the first meeting where the lawyer will get the information needed for initial case analysis.
What do we need? First, we need the document. No matter what your side of the story you need to be able to read the agreement and communication about the agreement at your first meeting. For example, if you are being sued for breach of contract then you need the contract that has been breached. Likewise, if you are the one doing the suing because someone breached the contract you have to able to read the contract to determine how you are damaged by the breach.
Then the lawyer needs to have all of the supporting documents that explain the contract and the communication back and forth about the contract. Contracts are not static things. They are living and breathing just like people. Modification is common. The correspondence, emails, letters and texts can show intent on the part of the parties and their actions as they move forward with the contract.
Outlining your main concerns is also recommended so that the lawyer doesn’t just get a lot of information that doesn’t make sense in the context of the larger picture. When you go in the lawyer needs to know what points you think should be evaluated. After all, the lawyer takes the information and then applies case law to the situation. Certain issues become hot button and the judge decides which one gets the attention based on the capacity of the contract to resolve the dispute.
Most contract issues can be resolved with alternative dispute resolution techniques such as mediation and arbitration. Furthermore, there is no trigger for filing a lawsuit, but it certainly has negative perceptions associated with it. Managing your reputation whether you are the plaintiff or the defendant is part of the game. If there is a strong likelihood of negative perception then go to court to win at trial. Otherwise, see if the other side wants to negotiate a settlement.
An Overview of Legal Fees
While most of us have an idea of how lawyers get paid, it’s always good to reiterate. There are generally four types of arrangements: hourly, flat fee, contingency, and retainer. Hourly means you pay for all time spent working on the matter, including communications with you. Flat fees are just that – a flat price. Contingency is where you pay nothing unless you win, and the fee is a percentage of the winnings. Retainer is often ambiguous, but usually refers to a partial upfront payment of services.
With contract dispute attorneys, though, such things as flat fee and contingency arrangements do not typically apply. Because there is no "winning" in such matters, getting a piece of the pie is impossible. Oftentimes, however, happy attitudes can be purchased with flat fees – the firm will agree to take your case for a flat price. It’s best to avoid these kinds of arrangements, however, as happy attitudes do not solve problems. The cheapest flat fee is fine if you’re getting your simple will done, but isn’t enough if you need a full lawsuit completed.
Hourly or retainer are by far the best ways to hire your contract dispute lawyers. An hourly rate allows you to only pay for what’s needed, in real-time. Some firms also offer retainer arrangements, where a client pays the firm upfront for certain services or hours worth of work. These can be useful ways to save money, and are always discussed by the client and firm in much more detail than we can here. Regardless, budgeting is key to any successful legal representation, especially contract law cases which are notoriously more time-consuming and expensive.
All that said, discussing costs with prospective counsel doesn’t have to be overly formal or serious. Open and honest communication about what you want, what you can afford, and how to make it happen goes a long way toward clearing up the financial picture right off the bat. If price can’t be resolved, then you probably shouldn’t be hiring that firm anyway.
As a quick note, contracts have inherent risks that cannot be eliminated. Sometimes businesses or individuals don’t have the funds to enter into a contract, and the deal can collapse. We do not believe a firm should turn away a viable client based on price alone, so we offer interest-free financing as a benefit. This can be in a fixed monthly payment over a period of time, or broken into several payments at set intervals during representation.
Case Studies and Reviews
Success stories and positive client testimonials are vital indicators in determining whether a particular lawyer is the right contractor dispute lawyer for you. Each success story or positive client testimonial demonstrates the lawyer’s commitment to serving clients and to getting winning results in contract dispute cases.
Reading client testimonials can give you an idea of how the lawyer works, how they feel about the law they practice, and how well they do their job. If you are impressed by their work, you may feel confident in choosing them to represent you .
Lawyers as a rule are accustomed to dealing with victims of contract disputes who are dealing with a wide range of other emotions, from embarrassment to frustration to anger. So, finding testimonials from former clients can help reassure you that the lawyer is familiar with your situation and the varied emotions you are dealing with.
The lawyer should be able to point you to some testimonials. If testimonials are not available online or from the lawyer, you may want to continue reviewing the choices available to you for contract dispute lawyers.
