Breach of contract claims are one very common form of litigation in which businesses can become involved. Contracts are ubiquitous in the business world and govern a wide variety of interactions between businesses.
In the construction industry, in particular, contract disputes are very common. Contract disputes can arise not only between contractors and clients, but also between contractors and subcontractors, as well as contractors and insurance companies. A recent example of the latter type of case is a suit filed against Travelers Insurance Company by a construction company here in Louisiana.
The construction company accuses Travelers of failing to process a claim stemming from a client’s allegations against a subcontractor. The client apparently accused the subcontractor of leaving work uncompleted or defective and failing to finish on time under the terms of their contract. The subcontractor apparently said the primary contractor is responsible for providing a defense against the lawsuit.
For its part, the primary contractor says Travelers is obligated to defend against the claim and pay the expenses. The construction company reportedly has six commercial general liability policies and filed a claim back in March, though that claim had not been answered at the beginning of August.
When disputes arise as to a party’s obligations under a contract, a lot of money can potentially be as stake. Just how much depends, of course, on the circumstances and the terms of the contract. Sorting out contractual obligations is not always as simple as glancing at a contract. In some cases, complex legal issues come up and it really becomes necessary to work with an experienced attorney to ensure one’s rights are protected. Even in less complex cases, having an advocate can help a great deal in navigating a dispute.