At times, Miami companies find themselves embroiled in business litigation that begins because of an alleged contract breach. A breach of contract can be frustrating for both sides of the dispute, no matter how it originates. Recently, an energy company in another state filed suit against the city which leased certain city property to it. The breach of contract claims arose from the fact that the city later denied the energy company the right to drill oil and gas minerals on the site, which the company points out was its sole reason for entering into the lease with the city.
One company representative claims that this is a clear case of contract breach. He says that the city accepted the company’s $19 million payment after making promises to it that the drilling would be allowed. Ultimately, however, the city council voted against allowing Trinity East Energy the permits it needed in order to construct a compressor station at the northwestern border of the city, and to then drill the oil and gas minerals the company needs.
City officials, however, claim that they are acting appropriately to protect public safety. According to them, the company is welcome to propose other sites that would be more appropriate. A company official states that Trinity East worked with city officials at each stage of the project and that the site proposals they submitted for the drilling had been approved by those city officials.
Miami companies that suffer damage by another party’s apparent breach of contract have the right to seek financial restitution and related relief in a civil court of law. Additionally, in some cases, a court may force the other party to make good on the promises of the original contract. Successfully navigating this type of litigation typically requires a strong understanding of applicable contract law and the formulation of a strong legal strategy.
Source: bizjournals.com, Trinity East Energy sues the city of Dallas over breach of contract for denied wells, Nicholas Sakelaris, Feb. 13, 2014