I really need help, breach of contract, what are the chances?

[Mo T]

Hello folks,

Glad I found this forum.

A supplier in Texas was unable to deliver a machine in the specifications requested by a foreign company I work for, so in an attempt to request a refund we hired a lawyer and requested a refund and breach of contract from the supplier.

Both myself and my lawyer are confident we will win this case, so upon the first attempt the defendant refused to refund our payment, so I did some research and found that defendant business does not have any assets in which he (defendant) can use to refund our payment, what are the chances we will win the case in court yet do not get a refund for our payments and all lawyer costs?

So far we have paid lots of money to the lawyer (14% of total refund value) and my company is afraid we will end up getting nothing in return, initial amount is slightly over $100,000 and lawyer costs thus far are close to $14,000.

Where could such case endup?

Thanks for your help is advanced, greatly appreciated.

 

[tranquility]

A company does not have the assets to return your $100K? What do YOU think will happen if you get a judgment? I am uncertain as to how you have $14K in legal fees before getting to court on a breach of contract case like this, but it is certainly possible. I think you need a sit down with the attorney to see how much more he will need to bring this case home to judgment. Because, if the company does not have the assets to pay you, they don't have the assets. Are you making a piercing argument? Or, is the supplier just a sole proprietorship or partnership?

 

[Mo T]

A company does not have the assets to return your $100K? What do YOU think will happen if you get a judgment? I am uncertain as to how you have $14K in legal fees before getting to court on a breach of contract case like this, but it is certainly possible. I think you need a sit down with the attorney to see how much more he will need to bring this case home to judgment. Because, if the company does not have the assets to pay you, they don't have the assets. Are you making a piercing argument? Or, is the supplier just a sole proprietorship or partnership?

Many thanks for your reply.

Usually machine suppliers do not invest heavily in equipments, they just get parts from other shops, integrate the parts together and build machinery. And this particular source has built his assembly shop on rented land, so no assets are involved other than some low value tools.

Can I hire someone to study my case other than my current attorney? He may be slowing things down just to get more hours consumed which means more money spent.

Thanks

 

[tranquility]

Many thanks for your reply.

Usually machine suppliers do not invest heavily in equipments, they just get parts from other shops, integrate the parts together and build machinery. And this particular source has built his assembly shop on rented land, so no assets are involved other than some low value tools.

Can I hire someone to study my case other than my current attorney? He may be slowing things down just to get more hours consumed which means more money spent.

Thanks

You can, but I think the real key is a talk with your attorney where you ask for specifics and not accept a generalized "these things take time" and a realistic assessment about the chance of getting any money from the other party if you do win.