Michigan company sues foreign company for breach of contract

Companies depend upon legal contracts to do business because contracts provide a sense of security since all parties will be legally bound to fulfill the terms of the agreement. However, business can be unpredictable and many unforeseen circumstances may jeopardize a business arrangement and prevent a party from fulfilling its agreement in a legal contract with another business in Michigan or in any other state. This can result in a breach of contract which can cause significant monetary losses.

One construction company claims it experienced this type of loss when a foreign company allegedly breached a contract with the construction company. The construction company is now suing the foreign-based company for $118.5 million. A U.S. state court ruled against the foreign-based company’s argument that the plaintiff should have to litigate in a court overseas, which means the lawsuit filed by the construction company in a U.S. court will now proceed.

The dispute started when the defendant company stopped the previously planned construction project which the defendant hired the plaintiff construction company to perform. The foreign-based company hired the construction company as a part of a business partnership with Chrysler. However, the foreign company stopped the construction job after Chrysler backed out of the partnership which was then followed by the foreign company filing bankruptcy. The construction company claims that the foreign-based company’s actions caused monetary damages.

The construction company, which is based in Michigan, will now have to litigate in court in order to obtain reimbursement for its loss which resulted from the alleged breach of contract. The plaintiff will have to first prove that a legal contract was indeed formed between the two companies. Then, the construction company will have to show how the defendant’s actions caused the specified amount of monetary damages to the construction company.

Source: Business Breaking News, $120M lawsuit over Indiana factory moves ahead, No author, Oct. 14, 2013