Added on 04/30/2025, Updated on 05/06/2025
Sometimes parties have a dispute about the amounts owed under a contract. For example, many types of contracts require payment that is not always a fixed amount per month. Examples of this can include payments based on the number of employees (like benefits contracts) or based on the revenue of the business (such as franchise agreements). Sometimes one party asserts that a certain amount of money is owed and the other party thinks that amount is mistaken. So, how do such disputes get resolved?
Can you give an example of a type of client you have represented?
Yes. Keeping in mind that I cannot exact details due to client confidentiality. I have had multiple clients who fit a similar profile to this description. Imagine you are a provider of professional coders or IT workers to other companies. So, you might have a contract with another company to provider workers who are billed out at a certain price. Those workers are billed at a markup to their cost. Then, the customer company who did not pay is the company that my client ends up suing for non-payment.
Contract Review Process
The first step is a careful review of the contract, including certain key factors:
- The date of the contract and its validity
- what events or items trigger a payment obligation
- how that payment obligation is determined
- collection of relevant data or contracts to show the amounts needed to calculate the amount owed
- checking the data for accuracy or errors
- checking the contract to see if there are exceptions to the monies owed (sometimes certain items may be excluded from the payment requirements)
After a review of the contract, the parties will need to exchange information and explanations of why they feel their position is supported by documentation.
Complex contract disputes require thorough analysis and strategic approach. An experienced business attorney can help you navigate the contract review process and build a strong case for your position.
What are the claims that may be relevant to a situation like that?
There are claims for breach of contract and the loss based on what was the expected benefit of the bargain by the contract. The contract must also be reviewed to see if there is a clause that allows attorney’s fees and costs under the contract. While attorney’s fees and costs may be claimed in a suit, these can be questioned by a Court for reasonableness and may be reduced and may not even be paid in a settlement. In addition, a party can often claim interest if the amount can be calculated, which is about 10% simple interest per year.
Below is an image of the Pages from a Form Complaint for breach of contract. This is a sample format that can be used (along with the other required forms) to file a lawsuit for breach of contract.
What happens if the dispute can’t be resolved?
If the dispute can’t be resolved, then it may lead to a breach of contract lawsuit or arbitration on the issue. Nick Heimlich has experience dealing with breach of contract lawsuits in both state and federal courts in San Jose, CA and the surrounding bay area.
What should I do if I get sued for breach of contract?
Contact an attorney promptly to review the facts and to start working to see if resolution can occur. If a quick resolution is not possible, then the lawyer should be a lawyer that is willing to litigate and has litigated cases like Nick Heimlich on many occasions. When you have a dispute, it makes sense to go to a litigation lawyer such as Nick Heimlich for your legal disputes as he understands the local courts and their customs, procedures and deadlines.
When facing a breach of contract lawsuit, time is critical. A skilled business lawyer with extensive litigation experience can protect your interests and work toward the best possible outcome.
What are other important considerations when deciding whether to file suit?
Generally speaking, one has to determine if it is worth the time and trouble to file a lawsuit. If the amount involved in small, unless you really need that money, it is probably not worth your time to file a lawsuit.
What dollar size of contracts does Law Office of Nick Heimlich handle?
Generally, Nick Heimlich handles disputes that are over $35,000 (with just the contracted amount alone, not including any interest, attorney’s fees or other types of damages) as smaller disputes don’t justify the attorney’s fees and costs to involve a lawyer.
What cases are too small for Law Office of Nick Heimlich to handle?
In calculating these amounts, I don’t include the following:
- Interest on the amount owed, or late fees.
- Emotional distress damages
- Punitive damages
- Consequential damages (like lost wages or lost profits).
Cases that are too small: Small Claims (Individuals can sue for up to $12,500 per claim).
- Businesses and LLCs can sue for $6,250 in small claims. Limited Civil Cases, which are up to $35,000 for the claim.
Does the Law Office of Nick Heimlich offer consultations?
Yes, Nick Heimlich offers paid consultations at his regular hourly rate at the time contacted. Generally, Nick Heimlich does not offer free consultations.
Does the Law Office of Nick Heimlich take cases on a percentage of recovery basis?
No, Nick Heimlich does not take cases on a percentage basis or contingency. Litigation is taken on an hourly basis, with a retainer paid upfront that is billed against and replenished. Some items, like reviews of a contract or a franchise agreement may be on a fixed price fee.
Resolve Your Contract Payment Dispute with Expert Legal Guidance
Contract payment disputes can be complex and costly if not handled properly. Whether you’re owed money under a contract or being sued for alleged non-payment, having experienced legal representation can make the difference between a favorable resolution and an expensive loss.
Contact Nick Heimlich Law to discuss your contract dispute. Our experienced litigation team understands local court procedures and has successfully handled numerous breach of contract cases in San Jose and throughout the Bay Area. Don’t let contract disputes drag on – get the professional legal guidance you need to protect your interests and resolve the matter efficiently.
