We obtained an excellent settlement for a client named as a defendant in a breach of contract lawsuit. The client, a restaurant, entered into a contract with a supplier for the weekly delivery of linens. Roughly one month into the contract the linen supplier, without notice, removed its linens from the restaurant and refused to perform any further on the contract.
Soon thereafter the linen supplier filed suit against the restaurant for unpaid invoices. In addition to seeking payment for the outstanding invoices, which totaled around $2,000.00, the linen supplier sought $13,000.00 from the restaurant pursuant to a liquidated damages provision in the contract. The supplier alleged that the restaurant breached the contract by failing to pay and it was forced to terminate as the restaurant was carrying four weeks of unpaid invoices. In addition to the claimed $15,000.00 worth of damages, the supplier sought the attorney’s fees incurred in the collection case.
We filed numerous affirmative defenses in response to the complaint. Most importantly, following a careful review of the contract between the parties, we asserted a defense that the supplier failed to comply with a contractual provision requiring a 30 day notice prior to terminating the contract. In addition, discovery revealed that the supplier never even sent a demand for payment. The supplier, realizing that it failed to comply with the contractual language in terminating the contract, agreed to settlement for less than 20% of the total damages sought. With our assistance, the client was able to resolve a case for a small percentage of the $20,000.00 that could have been at issue.
Since 1983, KSN has been a legal resource for condominium, homeowner, and townhome associations. Additionally, we represent clients in real estate transactions, collections, landlord/tenant issues, and property tax appeals. We have four office locations, serving hundreds of clients and thousands of communities throughout Illinois, Indiana, and Wisconsin. Our attorneys are also licensed in Arizona, Florida, and Missouri.
If our law firm can be of assistance, please call 855-537-0500 or visit www.ksnlaw.com.
By KSN Attorney Brandon Wilson