What happens during a breach of contract lawsuit?

Sometimes, the solution to a breach of contract matter is simple and quick. You email your vendor or send a formal letter to a former employee who has violated a restrictive covenant, and they immediately correct the issue.

Unfortunately, not all breach of contract matters are so simple to resolve. Maybe the other party interprets the contract differently and believes they have done nothing wrong. Maybe they are unapologetic about the breach and insist that they will do nothing to resolve the issue.

You may eventually realize that you will need to take them to court to enforce your contract and hold them accountable for the impact of their failings. What can you expect to happen during breach of contract proceedings?

A judge will review your contract

Obviously, the terms included in your contract and its overall validity under state law will play a major role in your breach of contract lawsuit. A judge will typically examine the contract carefully for terms that violate Colorado state law. They may not enforce certain clauses and could invalidate the entire contract in some situations.

The judge will also review the financial and business records that you claim corroborate the allegations of a breach of contract. If the judge rules in your favor, then they will have several means of resolving the issue for you.

What judges can order to resolve a contract issue

Different breach of contract matters require different solutions, depending on the impact of the breach and the circumstances of the parties at the time of litigation. Sometimes, the best solution is to terminate the contract so that neither party has obligations to the other anymore. A judge may order a refund of any amount you have already paid as well.

Judges can also award you damages if you can prove that the breach of contract had financial consequences for your company. Finally, a judge will have the authority to order specific performance, which typically involves the other party needing to complete their obligations under the contract.

Any of these solutions can help compensate you for the impact the breach of contract has had on your company’s solvency and reputation. Knowing what to expect in a breach of contract lawsuit can help you prepare to take another party to civil court.