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Construction contract disputes are common in business litigation

On Behalf of | Jul 26, 2018 | Business Litigation

Claims of breach of contract between parties to construction agreements are a common source of litigation in the Oregon state and federal courts. One of the most basic business litigation claims is that a company hired to do construction work did not perform acceptably under the terms of the agreement, thereby committing a breach of the contract. For example, in another state an individual in the body shop and collision repair business contracted with a local contractor to construct an auto body shop.

Generally, such an agreement would contain various specifications and conditions, including a specific promise that the property would be constructed in a skillful manner acceptable in the industry, and that it would pass code regulations when finished. The individual filed a recent lawsuit against ABC Contracting. It is alleged that the contractor did not use concrete suitable for a body shop construction and that it failed to install roof trusses and other failures to provide the necessary workmanship expected under the circumstances.

The plaintiff filed the lawsuit in a West Virginia state court where it was assigned to a judge.  The first step in business litigation of this kind will be the exchange of information and documents, which is part of the discovery process. It is necessary for both sides to have all of the relevant documentation that may shed light on the work performed, any deficiencies that are recorded or documented, and the communications between the contracting parties. Sometimes, the exchanges between each of the contracting parties and outside third parties will also be relevant.

Discovery often clarifies what took place and may reveal a factual scenario that tends to support one of the parties’ version of the events. The case may be settled after the exchange of information or in some cases it can be settled earlier in the proceedings where the parties are highly motivated. However, business litigation disputes in Oregon often do not settle until after the court rules on dispositive motions filed by the parties, such as a motion for summary judgment.