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How to sue someone for breach of contract?

Published in Breach of Contract Lawsuit 7 mins read

To sue someone for breach of contract, you generally begin by filing a formal complaint in the appropriate civil court to recover your damages, detailing the problem and explaining your case to the judge and the other party, which then must be delivered to the defendant.

Understanding Breach of Contract

A breach of contract occurs when one party fails to fulfill their obligations as specified in a legally binding agreement. Before initiating a lawsuit, it's crucial to ensure you have a valid claim.

Key Elements of a Breach of Contract Claim

For a successful breach of contract lawsuit, you typically need to demonstrate three core elements:

  • A Valid Contract: There must be a legally enforceable agreement, whether written, oral, or implied. Essential elements include offer, acceptance, consideration (something of value exchanged), and mutual intent to be bound.
  • Breach of Contract: One party failed to perform a term of the contract, performed defectively, or made it impossible for the other party to perform. The breach must be "material," meaning it's significant enough to undermine the entire contract.
  • Damages: The breach must have caused you actual financial loss or harm. The lawsuit aims to recover these damages.

Preliminary Steps Before Suing

Before filing a lawsuit, consider these preparatory actions, which can sometimes resolve the issue without litigation or strengthen your case if a lawsuit becomes necessary:

  1. Review the Contract: Carefully read the contract to understand the exact terms, obligations, and any clauses regarding dispute resolution (e.g., mediation, arbitration).
  2. Gather Evidence: Collect all relevant documents, including the contract itself, emails, text messages, invoices, receipts, performance records, and any correspondence related to the breach.
  3. Send a Demand Letter: Often, a formal demand letter from an attorney outlining the breach, the damages, and a clear request for resolution can prompt the other party to comply or negotiate.
  4. Consider Alternative Dispute Resolution (ADR): Mediation or arbitration can be faster, less expensive, and less adversarial than litigation. Many contracts even require ADR before a lawsuit can be filed.

The Lawsuit Process: Step-by-Step Guide

If preliminary steps don't resolve the dispute, suing for breach of contract involves several stages:

Step 1: Determine the Proper Court

You must file your lawsuit in the correct court, which depends on factors like the amount of money involved (the "amount in dispute") and the location of the parties or the contract.

Court Type Typical Characteristics
Small Claims Court Handles disputes involving smaller sums (limits vary by state, often a few thousand dollars). Simplified procedures, often without lawyers.
Civil Court (District, Superior, or County Courts) Handles larger monetary disputes. More complex rules of procedure and evidence.

Step 2: Draft and File the Complaint

You begin by preparing and filing a complaint in the appropriate civil court. A complaint is a technical legal document that formally describes the problem and explains your case to the judge and the other party. It typically includes:

  • Identification of Parties: Names and addresses of the plaintiff (you) and the defendant.
  • Jurisdiction: Why the court has the authority to hear the case.
  • Facts of the Case: A clear, concise narrative of how the contract was formed, the terms, and how the defendant breached it.
  • Damages: A detailed explanation of the financial losses you incurred due to the breach.
  • Prayer for Relief: What you are asking the court to do (e.g., award specific damages, order specific performance).

Once drafted, the complaint, along with a summons, is filed with the court clerk, usually involving a filing fee.

Step 3: Serve the Defendant

After filing, the complaint and summons must then be served, i.e., formally delivered to the defendant. Proper service ensures the defendant is legally notified of the lawsuit and has an opportunity to respond. Service is typically done by a process server, sheriff, or certified mail, following strict legal rules.

Step 4: Defendant's Response

Once served, the defendant typically has a specific timeframe (e.g., 20-30 days) to respond. Their response might include:

  • Answer: A formal document admitting or denying the allegations in your complaint and possibly raising affirmative defenses.
  • Counterclaim: A separate lawsuit filed by the defendant against you, alleging you breached the contract or committed other wrongs.
  • Motion to Dismiss: A request to the court to throw out the case for legal reasons (e.g., lack of jurisdiction, failure to state a claim).

Step 5: Discovery Phase

This is a crucial pre-trial stage where both parties exchange information and evidence relevant to the case. Common discovery methods include:

  • Interrogatories: Written questions that must be answered under oath.
  • Requests for Production of Documents: Demands for relevant documents, emails, and other records.
  • Depositions: Out-of-court, sworn testimony given by witnesses or parties, recorded by a court reporter.

Step 6: Pre-Trial Motions and Settlement Discussions

During and after discovery, attorneys may file various motions asking the court to make rulings on specific issues (e.g., motions for summary judgment to decide the case without a trial if no material facts are in dispute). Settlement discussions, often involving mediation, are common throughout this stage, as most contract disputes are resolved before trial.

Step 7: Trial

If no settlement is reached, the case proceeds to trial. During the trial, both parties present their evidence, call witnesses, and make legal arguments before a judge or jury. The goal is to prove your case by a "preponderance of the evidence" – meaning it's more likely than not that your version of events is true.

Step 8: Judgment and Enforcement

If you win your case, the court will issue a judgment in your favor, typically for a specific amount of money. However, winning a judgment doesn't automatically mean you get paid. You may need to take further steps to enforce the judgment, such as wage garnishment, bank levies, or property liens.

Types of Damages You Can Claim

In a breach of contract lawsuit, the primary goal is usually to put the non-breaching party in the position they would have been in had the contract been performed. Common types of damages include:

  • Compensatory Damages: These are the most common type, intended to directly compensate for losses caused by the breach. This can include direct losses (e.g., lost profits) and incidental losses (e.g., costs incurred to find a substitute performance).
  • Consequential Damages: Indirect losses that occur as a result of the breach, but are foreseeable. For example, if a delay in delivery caused you to lose a separate business opportunity.
  • Liquidated Damages: Damages specified within the contract itself, agreed upon by the parties, to be paid in the event of a breach. These clauses must be reasonable and not act as a penalty.
  • Specific Performance: Instead of monetary damages, the court may order the breaching party to perform their specific obligations under the contract, particularly when the subject matter is unique (e.g., real estate, unique artwork).

Important Considerations

  • Statute of Limitations: There are strict time limits (statutes of limitations) within which you must file a lawsuit. These vary by state and the type of contract (written vs. oral). Missing this deadline can permanently bar your claim.
  • Legal Costs and Attorney Fees: Litigation can be expensive, involving court fees, discovery costs, and attorney fees. Some contracts include clauses that allow the prevailing party to recover legal fees.
  • Hiring an Attorney: While not always required (especially in small claims court), navigating contract law and litigation procedures is complex. An experienced attorney can provide invaluable guidance, draft legal documents, represent you in court, and help maximize your chances of success.