Subcontractor files breach of contract lawsuit

Louisiana residents may have heard reports about a subcontractor that is suing their general contractor for breach of contract. According to court documents, sometime between April and May of 2012 a cleaning and restoration company entered into a sub-contractual agreement with another company.

Under the contract agreement, the subcontractor was to perform work at an agreed upon price. The subcontractor claims that the contract that was agreed to by both parties stated clearly what duties were expected of the subcontractor and the amount of compensation for services rendered. However, the subcontractor alleges that when they received payment they were surprised to find the general contractor had not paid the full agreed upon amount stated in their contract.

Apparently, the general contractor deducted over $24,000 dollars. When the subcontractor pointed out the problem and demanded full payment, the general contractor refused, stating that they subtracted the cost of renting out their equipment that they allowed the subcontractor to use in order to fulfill the terms of the contract. In essence, the general contractor charged the subcontractor for using their equipment while performing their subcontracted duties. The general contractor estimated the cost of using their equipment and accordingly deducted thousands of dollars.

The subcontractor acknowledges that they did use the general contractor’s equipment. However, they note in their contract dispute lawsuit that there was no lease agreement for the use of the equipment in question. They argue that since there was no contractual agreement for the use of the aforementioned equipment, they should be paid in full in accordance with the terms of the contract.

Contract disputes between parties can arise for various reasons. Depending on who is affected, these cases can get complex. Any business that is in a contract dispute may find it beneficial to get more information about their legal options.

Source: The Louisiana Record, “Painting and cleaning company sued by subcontractor over use of equipment,” Kyle Barnett, May 7, 2014