What NOT To Do if Your Business Has a Breach of Contract Claim in Florida
In a recent article, we discussed seven steps to take if your business has (or may have) a breach of contract claim in Florida. We covered important steps such as making sure the failure at issue truly constitutes a breach of contract, as well as determining whether the dispute is subject to mandatory mediation or arbitration.
But, when facing a contract dispute, knowing what to do and knowing what not to do are equally important. With this in mind, in this article, a Miami breach of contract lawyer at Edelboim Lieberman explains seven potentially costly mistakes that can have unintended (and adverse) consequences.
7 Mistakes to Avoid When Facing a Contract Dispute in Florida
What should you not do if your business has a breach of contract claim in Florida? Here are seven examples (among many others) of mistakes that business owners and executives must be careful to avoid:
Mistake #1: Waiting to Take Appropriate Legal Action
While it is important not to rush into pursuing legal action before you have a clear understanding of your business’s legal rights, it is equally important not to wait to take appropriate legal action when necessary. If a breach of contract is causing ongoing harm to your business, you should engage a Miami breach of contract lawyer to seek relief immediately.
Not only can acting quickly improve your chances of securing a favorable outcome, but it can also help you avoid allegations of “failure to mitigate.” Other mitigation measures may be necessary as well; and, here too, an experienced lawyer can help you do what is required to protect your business’s legal rights.
Mistake #2: Assuming that You Have a Clear Understanding of Your Business’s Legal Rights
As we discussed in our previous article, it is critical to make sure that you are truly dealing with a breach of contract. If you attempt to take legal action when it is unwarranted, not only will this result in a waste of resources, but it could also threaten a valuable business relationship.
In this same vein, it is important not to assume that you have a clear understanding of your business’s legal rights. Commercial contracts are often exceedingly complex, and they don’t always say what business owners and executives expect them to say. Just as you need to avoid taking unwarranted legal action, you also need to make sure you do not overlook the legal options that your business has available.
Mistake #3: Retaliating Against the Breach
As a general rule, retaliating against a breach of contract is inadvisable. Not only is it more likely to lead to a contentious (and potentially costly) dispute, but it can have other adverse consequences as well.
Generally speaking, one breach does not excuse another. If a breach justifies non-performance, then non-performance is an appropriate remedy, not a retaliatory breach. However, if a breach does not justify non-performance, then a retaliatory breach could lead to a counterclaim that entitles the other party to seek remedies in litigation or alternative dispute resolution (ADR).
Mistake #4: Publicizing the Breach in the Business Community or On Social Media
Along with avoiding attempts at retaliation, business owners and executives should also avoid publicizing the breach in the business community or on social media. Although this can be tempting, it can also have unintended consequences. While it may make sense to discuss your business’s dispute publicly in the future, now most likely isn’t the best time.
Mistake #5: Pursuing ADR if Your Business is Entitled to Injunctive Relief
Commercial contracts frequently include mandatory ADR clauses that require the parties to resolve disputes through mediation or arbitration. However, these clauses are frequently subject to exceptions.
For example, one common exception to mandatory ADR is when a party needs to seek injunctive relief. When injunctive relief is necessary, going through the mediation or arbitration process (which can take several months, if not longer) can lead to additional losses. In contrast, the courts will handle claims for injunctive relief on an emergency basis when necessary, and filing an emergency request for relief can be essential for loss mitigation.
Mistake #6: Filing a Lawsuit if the Dispute is Subject to Mandatory ADR
On the same token, business owners must be careful not to file a lawsuit following a breach if the dispute is subject to mandatory ADR. If no exceptions apply, an agreement between commercial parties to mediate or arbitrate will almost always be enforceable under Florida law. Filing a lawsuit when mediation or arbitration is required can lead to a swift dismissal, a waste of resources and a delay in securing appropriate remedies.
Mistake #7: Overlooking Potential Means of Informal Resolution
Finally, while litigation or ADR will be necessary in some cases, many business disputes get resolved through informal means. If resolving a dispute informally is an option, this will be the best option in most cases. Not only will this minimize the costs of the dispute resolution process, but it can also help to preserve a valuable business relationship that might be lost otherwise.
How will you know if an informal resolution (i.e., a negotiated settlement) is a viable option? This requires a careful assessment on a case-by-case basis. If it is in your business’s best interests to settle, it will most likely be in the breaching party’s best interests to settle a well—and this common ground can set the stage for productive negotiations that avoid unnecessary costs, risks and consequences.
Schedule a Free Consultation with a Miami Breach of Contract Lawyer at Edelboim Lieberman
If you need to know more about pursuing a breach of contract claim in a commercial dispute in Florida, we encourage you to get in touch. Our lawyers can help you understand your business’s legal rights and make informed decisions about your next steps. To schedule a free consultation with a Miami breach of contract lawyer at Edelboim Lieberman, please call 305-768-9909 or tell us how we can help online today.
