Business Litigation Law

Business Litigation Breach of Contract Lawsuits

Webb Law Group, APC has a team of business litigation attorneys who excel in both bringing and defending breach of contract lawsuits. Our Southern California contract litigation team has the necessary experience to handle breach of contract lawsuits for you, your corporation, LLC, or partnership.

Contracts are essential to conducting business in the modern world. Anytime you make a purchase or transact business you are entering into an agreement with someone else and you both have certain rights and obligations that stem from this transaction. Because our society relies on these transactions to operate, it is important that the integrity of contractual relations be preserved by the legal system.

Unfortunately, it is common that parties to a contract fail to live up to their end of the bargain or that circumstances occur which render the performance of the contract not possible. When one party does not comply with their obligations under either a written or verbal contract, they might be held liable for damages for breaching the contract. This breach could end up causing you, your family, or your business financial losses. There are many reasons why a party would breach a contract. Some of these might be excused. And others are not. Without a valid excuse, the consequences of one party breaching a contract are usually the same. The other party suffers economic damages, losses, and is denied the benefit of the contract.

When there is a potential breach of contract, there are four key elements that the court will consider when evaluating the case:

  • Was there was a contract?
  • Did the plaintiff comply with the terms of the contract?
  • Did the defendant fail to comply with the terms of the contract, or breach the contract?
  • As a result of this breach of the agreed upon terms, did the plaintiff suffer damages?

Our top-ranked Southern California contract litigation attorneys have the skills to analyze the claims and to advise you on the best course of action to take when handling a breach of contract claim. There are many different defenses that could potentially be raised in the lawsuit or different approaches you could take to your contract dispute. You need to make certain your California contract litigation attorney has experience with similar cases in the past and is prepared to fight for the best outcomes for your business. At Webb Law Group, APC, our experienced business litigation attorneys have seen it all and can provide you with the best legal options for handling the lawsuit. Call us today at (619) 399-7700 to schedule a consultation with one of our San Diego contract law attorneys.

We handle matters ranging from straightforward contract disputes to incredibly complex multimillion-dollar disputes and liability claims. Our San Diego based commercial litigation attorneys are some of the top talent in Southern California, and we practice with successful results statewide. You will have easy access to our attorneys and peace of mind knowing that our team is handling all legal aspects of your case, allowing you to focus on continuing to operate your business.

Our team of business litigation attorneys can provide you with advice in determining if a settlement is an appropriate course of action. If you do not wish to settle, you can progress to a civil court proceeding or potentially an arbitration depending on the matter. Our San Diego and Southern California based contract litigation attorneys will help you to prepare to present evidence or introduce arguments in court aimed at either proving there was a breach of contract that you are entitled to compensation. On the other side, we excel at defending and excusing your performance on a contract. Our team of experienced litigation attorneys has taken numerous cases through trial and we are not afraid to fight until the very end if after consultation with our client both parties have determined that it is necessary to protect your rights.

Breach of Fiduciary Duty Lawsuits

Webb Law Group, APC has a team of business law attorneys who are experienced in vindicating the rights of business owners. Our San Diego business lawyers have the knowledge of how to best preserve your rights as a business owner when a partner is not being loyal or does not have you and your business’ best interest at heart.

A fiduciary duty is an obligation to act in a person’s best interest, due to the nature of the relationship with the person. There are relationships wherein one party places their trust and confidence in another. And this means that person then has a fiduciary duty to protect and uphold that trust and act in the other person’s best interest. Under California law, a fiduciary relationship is defined as “any relation existing between parties to a transaction wherein one of the parties is in duty bound to act with the utmost good faith for the benefit of the other party.”

While fiduciary duties can be found in many relationships, they are commonly encountered in businesses. This means that when you are part of a partnership, a corporation, or an LLC, there could be fiduciary duties owed by the other participants to you. If you have placed your trust and confidence in another person, you may be owed a fiduciary duty.

For example, in the state of California, in a member-managed LLC, a member of the LLC owes the LLC and the other members the duties of loyalty and care. The duty of loyalty requires the member: (1) to account to the LLC and act as trustee for it any property, profit, or benefit derived by the member in the conduct or winding up of the activities of the LLC or derived from use of the LLC property, including the appropriation of an LLC opportunity; (2) to refrain from dealing with the LLC as or on behalf of a person having an adverse interest to the company; and (3) to refrain from competing against the LLC. Likewise, the duty of care requires that the member refrain from engaging in (1) grossly negligent or reckless conduct; (2) intentional misconduct; and (3) any knowing violation of the law, in its activities with the LLC.

Corporations may have fiduciary duties for certain individuals as well. While not all shareholders will have these duties, directors and officers who are running the business will. In addition to the statutory duty of care to use sound business judgment, corporate directors and officers owe the corporation a fiduciary duty of loyalty. A duty of loyalty requires a corporate officer or director to always act in the corporation’s best interest. And it forbids the officer or director from engaging in “self-dealing.” Self-dealing is when a corporate officer or director takes advantage of his or her position in the corporation to benefit his or her own interests instead of the corporation or shareholders.

If you suspect that a business partner is not acting in the utmost good faith you may have a claim for breach of fiduciary duty. If a partner, an LLC member, or corporate officer or director is engaging in self-dealing and using their position to better themselves while not looking out for the business’ best interest this may be a claim. Also, if a partner, an LLC member, or corporate officer or director is competing with your business they may be breaching their duty of loyalty which could result in damages being done to your business.

Speak to an Experienced Business Law Attorney

Webb Law Group, APC has a long history of representing businesses and business owners in situations where they have been taken advantage of by partners or former partners. If you suspect that your business partner is violating their duty of loyalty or care to you and is not treating you fairly, please contact Webb Law Group, APC., at (619) 399-7700 to schedule a consultation with one of our business law attorneys.

Frequently Asked Questions

A breach of contract is any situation in which one or both parties fail to perform their duties or deliver products agreed upon in a contract. This includes failing to perform any term of a contract, written or oral, without a legitimate legal excuse. For example, this could be not completing a job, not paying in full or on time, failing to deliver all the goods, substituting inferior or significantly different goods, not providing a bond when required, being late without excuse. Breach of contract is one of the most common causes of lawsuits for damages and/or court-ordered “specific performance” of the contract. It is important to have an experienced business litigation attorney on your side in a contract dispute in order to protect your rights under the contract.
Yes. In fact, there are many possible defenses to breach of contract claims. The other side’s waiver of their rights under the contract, being prevented by the other side from completing the contract, impossibility of completion of the contract are just a few. If the other side repudiates the contract first, you also may be able to make an argument of anticipatory repudiation, meaning that your breach was justified because the other side told you they were going to breach first. These contract defenses are complex and vary depending on the situation, so it is important to consult with an experienced attorney if you are in a breach of contract situation in order to preserve your rights and defenses.
Answer: It depends on your contract. Under the American legal system, typically each side bears their own litigation fees, meaning that even if you successfully prosecute or defend claims, you may still need to pay for your own attorneys. However, there is an exception when you have a lawsuit based on a contract that states you are entitled to your fees for winning the lawsuit.
If your contract states that you are entitled to fees for prevailing in the lawsuit, you may be able to recover attorney’s fees for winning the lawsuit.

Most likely yes. Typically, a member of an LLC will owe to the LLC and the other members a duty of utmost loyalty, meaning that they cannot compete against the business. However, the operating agreement for each LLC is different and the rights of the individuals involved will be impacted by this document. It is important to have counsel experienced in breach of fiduciary duty claims to evaluate the operating agreement in this situation.

It can be under certain circumstances. The duty of care provides that a corporate director is able to rely on the opinions of others, whether it be other officers or employees in order to make business decisions. This is so long as the director acts in good faith and makes a reasonable inquiry into the circumstances. If they do not take ordinary care and act in bad faith, then there could be a claim for their negligent or reckless behavior in running the business.

Yes. In fact, attorneys owe fiduciary duties to their clients to act in their best interest. Stockbrokers, real estate professionals, investment advisors, could all owe fiduciary duties to their clients depending on the circumstances. Trustees and beneficiaries are another area where these duties can be owed. Our litigation team at Webb Law Group APC has experience in a multitude of areas and can be assistance with these types of breaches of fiduciary duty as well.

Contact Webb Law Group

If you would like to schedule a free, no-risk consultation* with Webb Law Group, call or text (559) 431-4888 or (619) 399-7700 between 7am and 5:30pm Monday – Friday. You can also submit a request through our online form. If we cannot answer you inquiry immediately, we will be in touch within 24 hours.

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