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Breach of Contract Disputes

Businesses or business partners also have disputes among themselves. Contractual disputes can arise from an unequal bargaining position of one company or individual with respect to the other. As such, there is typically a situation where one takes advantage of the other or otherwise misuses its influence or difference in size and resources with the other party to either breach a contract or deceive the smaller entity. Our New York City contract litigation attorneys handle cases for small businesses against larger companies for these sometimes complex breaches of contract and fraud claims.

This disparity in bargaining can also arise among individuals. Our firm handles and seeks cases representing professionals i.e. business entrepreneurs, real estate and construction professionals, doctors, lawyers, accountants, and others when they want to effect a “business divorce.” Splitting assets in a business divorce can be messy and difficult depending on the age of the partnership, and the financial, proprietary or emotional investment that one person has in the company. Parties in litigation can have widely differing views on who gave of him/herself more to the company, who provided the initial and seed funds for the company to even begin business, and who contributed to its ultimate growth.

Consumers should also be aware that a breach of contract case is very different than a case of fraud. The time-honored law in New York is that a breach of contract is not always accompanied by a fraud. In fact, judges are wise to finding merely a breach of contract and specifically NOT a fraud. While it is true that a plaintiff is the master of his/her pleading, and that a plaintiff can always plead in the alternative, these two claims are sometimes mutually exclusive. Put differently, a subsequent breach of contract by the offending party will often not be viewed by the court as a fraud at the inception of the contract. As more fully explained in the fraud sections of this site, fraud is essentially a lie: a misrepresentation by one party to another to induce the victim into paying or acting to his/her detriment.

However, the specter of long-term litigation between both parties should also serve as a “hard-pill” to the litigating parties. The cost and aggravation of long-term litigation can usually get the parties to the negotiating table at the early stages of litigation. But depending on the stakes at issue, aggressive litigation may be the only way out. The law surrounding business disputes depends mainly on the agreement between the parties [to the extent it complies with New York Corporation or Partnership law], and the statutory laws themselves. The New York City contract litigation lawyers at The Linden Law Group, P.C. have prosecuted cases under allegations in both the New York Business Corporation Law § 701, et seq., and the New York Limited Liability Company Law for managing members, who allegedly misappropriated company funds. There are numerous other laws that govern business relationships though two significant ones are mentioned here.

An overriding principle in a “business divorce” case is a Court’s general reluctance to dissolve a profitable business. However, Courts can usually not deny that certain parties cannot remain “married” in the business forever. In that instance, an alternative dispute resolution system is most often helpful in getting the parties to get to the table together with their counsel and a neutral and experience arbiter, and work out differences or a division of assets. Mediation or binding arbitration can usually save the parties tens of thousands of dollars in attorneys’ fees, avoiding a contentious litigation process.

A corollary to a total breakup amongst members of a company is perhaps a reorganization of management decisions and responsibilities. If the majority of members agree that a profitable business should keep going, a restructure of the e.g. management of the operations, personnel, appropriation of funds, can sometimes resolve differences. While litigation is usually a last resort, there are options short of litigation that can the parties happy and avoid the tremendous costs of a long, drawn out lawsuit process.

Please contact us online or call us today at (212) 835-1532 for a free initial phone consultation with a contract litigation attorney in New York City.

Client Reviews
I highly recommend this law firm. Attorneys Unger and Benjamin battled a real estate scammer who defrauded me out of substantial money. They were able to get a good result for me after the defendants put up numerous obstacles and delays over 18 months. And they were honest with me regarding their upfront and contingency fees. Definitely hire this firm if you are a victim of fraud or breach of contract. Rebekah W.
Over the years I have had dealings with many of attorneys and I can honestly say that Mr. Benjamin is the best lawyer I have ever worked with. He's conscientious, and takes care of your case as if his own interests were at stake. He's professional, always answered my calls and takes the time to discuss the best course to take. Everything was done timely and efficiently. I couldn't be happier with the result. I wish they were all like him. The best decision I made was to use him for all my legal needs. Nancy O.
Attorney Benjamin is an excellent attorney. He battled a finance company for me for nine years, defeating multiple motions that were thrown at him over the years. He is an honest, compassionate and trustworthy attorney, and was an aggressive advocate for me for a long time. After so many years, he finally got a great result in August, 2015 after defeating still another motion by the lender. I highly recommend Attorney Benjamin. Daniel O.
We hired this Firm on July 20, 2018 to sue a company for fraud. While the case took longer than we wanted, the lawyers battled for 1 year with this nationwide real estate company to expose the scam they inflicted on us. In order to get to settlement, our lawyer Jeffrey Benjamin cut the Firm's fee in order that we could put more money in our pocket and settle. The lawyers here are honest and bent over backwards to make us happy and settle, and not drag out the case for years. We are so happy we went with this Firm. Thank you. K.J.