When you’re a business owner, a breach of contract is a big deal. You may suffer severe financial and reputational damage if you don’t handle the situation carefully and professionally. This is when an attorney skilled in resolving breach of contract disputes (and trying them to conclusion in court) steps in. An attorney with a strong track record addressing breach of contract claims, years of experience, and education in contract law can negotiate a resolution, so you can save time and money in the long run. However, not all attorneys are created equal. You must look for qualified attorneys to help you in the road ahead.
In this guide, we cover the qualities of good attorneys who handle contract breaches, what makes them so essential, how to hire one, and when to hire an attorney.
When Do You Need to Hire an Attorney Skilled in Breach of Contract Disputes?
A skilled attorney can be vital in several situations. These events include:
- The other party accused you of a breach;
- The other party breached the contract or refuses to cooperate;
- You need to terminate or rescind a contract;
- You need to draft or revise a contract; and
- You want to settle a dispute through mediation, arbitration, or litigation.
In any of these situations, an attorney who handles business litigation can evaluate your situation and determine the best action plan.
Key Qualities of an Effective Breach of Contract Attorney
While many attorneys work in contract law, not all can help you in your situation. When researching breach of contract attorneys, look for the following qualities to reach a successful resolution.
Expertise in Contract Law
One of the most important things to consider when hiring a lawyer is their experience. Contract disputes can be complex, and you’ll need an attorney who understands contract law principles, including how to form, enforce, and courts interpret contracts in legal disputes. The attorney should be able to identify enforceable and unenforceable provisions, spot ambiguities and forecast how the court will resolve them, determine whether a breach has occurred based on the agreement’s language and the parties’ conduct, and explain the damages recoverable because of the breach of contract.
The breach of contract lawyer you hire must be familiar with applicable California laws that apply to your contract. For example, if your contract addresses the sales of goods, the lawyer must be familiar with the California Commercial Code because it will govern how the dispute is resolved.
The attorney you hire should have experience handling different types of breach issues, including:
- Interpretation of an ambiguous contract;
- Whether a breach was material (justifying action to resolve it) or minor;
- Whether an anticipatory breach occurred (i.e., when one party says they will not fulfill their duties, either unintentionally or intentionally);
- Whether you should pursue rescission;
- Liquidated damages provisions;
- The California Commercial Code;
- Prevailing party attorney provisions;
- Mandatory mediation and binding arbitration provisions;
- Whether there has been a breach of the contract that justifies pursuing legal remedies and
- How to calculate breach of contract damages.
A lawyer with this experience can navigate where the situation lands and what actions you should take.
Strong Negotiation and Trial Skills
Regardless of where your breach of contract claim leads, you need an attorney familiar with negotiating favorable settlements and trying breach of contract claims to conclusion in binding arbitration and court. Lawyers with trial and arbitration experience speak with authority and send a clear message to your adversary: “if you don’t deal with my contract in good faith and resolve this dispute reasonably, my lawyer is not afraid to take you to court.” Your lawyer needs strong negotiation skills to achieve the most successful outcome. Even if a lawsuit gets filed, negotiations continue as most cases settle before a judge enters judgment. More than anything, your lawyer should understand your goals, your legal budget, and your tolerance for adversarial proceedings – and advise you every step of the way.
Experience with Similar Cases
Your attorney should have a successful history of handling breach of contract cases. The more experience they have, the better. Attorneys who have handled a variety of breach of contract claims can better assess the strengths and weaknesses of a case, anticipate opposing arguments, and craft a tailored legal strategy. They can identify when a case is best suited for settlement versus litigation, which can help you make an informed decision that meets your financial and business goals.
Clear and Effective Communication
Good attorneys are effective communicators. Some attorneys use legal jargon, which can be confusing. An experienced and communicative attorney will break down the available legal options, your rights, and the potential next steps.
Competent counsel are responsive. They promptly respond to emails and calls. This facilitates the legal process to run smoothly.
Effective communication indicates that your attorney cares about your interests. Your attorney should spend time understanding your priorities, protecting your business relationships, securing your financial position, and avoiding unnecessary legal expenses.
Practical Considerations When Choosing an Attorney
Before meeting with a breach of contract attorney, you should gather the contract and key correspondence material to the dispute and consider preparing a timeline of key events and an accounting of what you understand your damages are. Determine your goals and articulate them to your attorney so your attorney can say whether your goals are achievable. Your attorney cannot do a good job unless you are cooperative and honest. Do not hide “bad” facts from your lawyer. Provide your attorney with a transparent summary of what happened, and then let the attorney do their job.
Understanding Fee Structures and Costs
Economics should play a substantial role in the decision to hire an attorney. It usually does not make economic sense to hire an attorney to handle small-dollar disputes. It almost never makes economic sense to engage in litigation unless there is a lot of money at issue because, otherwise, the legal fees and costs can exceed the amount in dispute.
So you should discuss the economics of your case and the potential legal expenses you will incur when you interview attorneys. Accurately forecasting legal expenses is difficult because there are so many unknowns (e.g., whether the attorney will be able to negotiate a resolution before filing suit; if a lawsuit gets filed, how aggressive will the other side be; and whether the lawsuit will settle or get tried to conclusion).
Lawyers typically get paid in the following ways:
- Hourly — the lawyer keeps track of all the time they and their staff work on your case and bill you an hourly fee for that work)
- Contingency – the lawyer receives compensation only if they recover money for you and the compensation is based on a percentage of the recovery (e.g., one-third);
- Hybrid – the lawyer receives compensation based on a reduced hourly fee and also receives a reduced contingency fee.
Rarely, lawyers will accept some assignments on a flat fee basis. Flat fee assignments are best suited for assignments like drafting a will, trust, or contract.
Most lawyers require a retainer – or deposit – before they start working. Most of the time, lawyers will bill against that deposit, but you must replenish that retainer monthly. California permits attorneys to charge “true retainers” for which lawyers remain available for clients, but “true retainers” are rare, and you should agree to them with great caution because there are plenty of competent lawyers available who do not charge them.
When interviewing lawyers, ask them how they charge their fees. Also ask,
- How frequently do you send invoices?
- What minimum increments of time do you use to bill your time?
- Are there additional costs, such as court filing or expert witness fees?
- Do you require an upfront retainer, and how is it applied to my case?
- Will I receive detailed invoices outlining billable hours and expenses?
A transparent attorney will answer these questions so you can make an informed decision about their services.
Evaluating Client Reviews and Case Outcomes
You can read client reviews to gauge whether an attorney can help you find a successful resolution to your contract breach dispute. These serve as a test for the attorney’s reputation. When looking at testimonials or online reviews, look for descriptions of the attorney’s responsiveness, competence, and how they handled the case. Don’t get overly influenced by an outlier negative review or two. Sometimes, lawyers get hired by unreasonable clients who vent their anger at attorneys who cannot achieve the result the difficult client wanted.
You can also use the State Bar of California to search for your attorney’s credentials, check for disciplinary actions, and confirm your standing as a licensed practitioner. This can help you avoid hiring an attorney who isn’t licensed or has a poor track record.
Hiring Based on Approach
You should evaluate an attorney based on their approach compared to your business goals. Suppose your goal is to resolve a breach of contract and avoid litigation at all costs. An overly aggressive attorney who antagonizes the other side will not be a good fit. On the other hand, if litigation is inevitable, you want a trial lawyer with an excellent track record.
To find out the attorney’s approach, ask questions like,
- Do you prioritize negotiation before recommending litigation?
- What are your thoughts about mediation?
- What is your experience trying breach of contract cases to verdict?
- What is your win/loss ratio at trial?
Frequently Asked Questions About Hiring a Breach of Contract Attorney
What Does a Breach of Contract Attorney Do?
A breach of contract attorney represents individuals and businesses in enforcing contracts, defending against breach claims, and recovering financial losses through litigation. They can negotiate settlements and represent clients in mediation, binding arbitration, and trial to uphold contractual agreements.
When Should I Hire an Attorney?
You should hire an attorney if the other party refuses to honor a contract, if someone accuses you of breaching an agreement, or if the dispute has resulted in material financial harm. Legal counsel is especially important when dealing with high-value contracts or complex agreements.
How Much Does It Cost to Hire a Breach of Contract Attorney?
The cost varies depending on the complexity of the case and the attorney’s fee structure. Some attorneys charge hourly rates, contingency-based fees, or a combination of both — a hybrid fee arrangement. Discussing billing details during an initial consultation is crucial to understand potential costs.
Can an Attorney Help Me Avoid Litigation?
Yes, a skilled attorney who understands contract law can often resolve disputes through negotiation or mediation, helping you avoid costly litigation. However, litigation may be necessary to protect your rights if the other party refuses to cooperate or settlement efforts fail.
What Should I Look for in a Breach of Contract Attorney?
Look for an attorney with expertise in contract law, a history of successfully handling contractual disputes, excellent negotiation skills, and clear communication skills. Find an attorney whose approach aligns with your business goals, whether that means mediation or litigation.
What Happens If I Ignore a Breach of Contract Claim Against Me?
Ignoring a breach of contract claim can result in financial judgments and damage to your business reputation. If you receive notice of a claim, consult an attorney immediately to develop a defense strategy.
Can an Attorney Help with Contract Drafting?
Many attorneys can help you prevent a contract dispute by drafting and reviewing your contracts before you sign them.
Hire Klein & Wilson For Your Breach of Contract Dispute Today
Finding a competent business litigation attorney can be challenging — doing your due diligence is essential to finding the right attorney for your specific legal issue. Klein & Wilson’s attorneys have years of experience in breach of contract disputes and have successfully resolved complex dispute resolutions. We have recovered over $300 million for our plaintiff clients, saved over $1.5 billion for our defendant clients, and have won over 90 percent of the cases we have taken to trial or arbitration. Contact us to set up a consultation and get started today!