If you find yourself in a contract dispute and you cannot come to an agreement with the other party, you may have to take legal action. If you are in this situation, you must choose between arbitration and litigation. Litigation refers to filing a lawsuit. Each option has its benefits and drawbacks. However, litigation is better in many situations. We are the top contract litigation lawyers in Marietta.
Of course, before filing a lawsuit you should ensure that you have legal grounds for a suit. Additionally, you should determine whether your contract includes an arbitration clause. This clause must be legally enforceable. It is also a good idea to familiarize yourself with the kinds of damages that you could win.
Read on to learn more about contract litigation in Georgia.
Litigation vs. Arbitration
If the contract in question does not have an arbitration clause, you may have the choice of going to arbitration instead of filing a suit. Arbitration is faster and less expensive (though the costs of arbitration are rising). However, it has significant drawbacks.
Perhaps the most significant drawback of arbitration is that the arbiter’s decision is very difficult to overturn. It cannot be appealed to a higher court, which is an option if you feel your initial judge’s decision is unfair. It is technically possible to file a suit seeking to overturn an arbiter’s decision, but such suits are rarely successful. This problem is exacerbated by the fact that arbiters or arbitration agencies often have pre-existing business relationships with one of the parties involved in the case, which calls their objectivity into question.
Grounds for Contract Litigation
It is vital that you have legal justification for a contract suit. Otherwise, a judge may throw your case out immediately. Of course, the most common justification for a contract lawsuit is the other party not performing the duties required by the terms of the contract. However, this is far from the only justification for a contract lawsuit.
You may also have grounds for a suit if the other party did perform the duties required of them, but their performance was so poor that they clearly did not make a good faith effort to live up to the terms of the contract.
Litigating If the Contract Includes an Arbitration Clause
It is quite common for contracts to include a clause that requires arbitration rather than litigation. If this is the case, you may not be able to pursue litigation. However, there are two ways that you will still be able to pursue litigation.
Both Parties Agree To Litigation
The first way that you could still pursue litigation if you have signed a contract with an arbitration clause is if both you and the other party agree to litigation. This is unlikely to happen, as the other party probably doesn’t want to get sued.
The Arbitration Clause is Legally Unenforceable
The other way that you could still pursue litigation if the contract in question includes an arbitration clause is if the arbitration clause is legally unenforceable. This would not require you to get the other party’s permission to pursue litigation. There are several reasons that an arbitration clause could be deemed legally unenforceable.
First, the clause could be deemed unenforceable if the contract was negotiated under false pretenses. Secondly, contracts agreed to under duress or undue influence may be invalid. Finally, a contract is invalid if one of the parties did not have the capacity to understand what they were signing.
Damages That May Be Awarded After Contract Litigation
There are multiple types of damages that may be awarded by a judge once contract litigation has finished. First, the losing party may have to pay compensation for costs or loss of revenue that were directly related to the breach of contract. Second, a judgment may require the losing party to pay for the other party’s legal expenses.
Contact The Barnwell Group Today For Expert Contract Litigation Representation
If you find yourself involved in contract litigation or you are considering filing a suit yourself, it’s very important that you hire an experienced contract litigation attorney as soon as possible. Contract law can be extremely complex and difficult to understand, especially for a layperson. Also, there’s a good chance that the other party will be hiring an experienced lawyer. While it may be tempting to represent yourself (especially if the matter seems straightforward), you will have a reduced chance of success if you do so. Instead, contact The Barnwell Law Group, the top contract litigation lawyers in Marietta, for quality legal representation.