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Housing authority sued for breach of contract

On Behalf of | Mar 25, 2015 | Contract Disputes |

A housing authority located in another state is being sued by its former director after allegations surfaced that he was owed wages not remitted by the authority. Breach of contract suits are hardly uncommon in the business world, as Florida business insiders are already aware. In this case, if the authority is found to have breached the contract with its former employee, it could be required to pay the amount demanded. 

The suit alleges that on June 13, 2011, the housing board rescinded on the contractual obligation to pay the man’s owed salary, totaling nearly $200,000 per year, along with an $18,000 car allowance. The unofficial reasons the authority gave for the decision to rescind accused the director of negligence and incompetence. He has fired back, vehemently denying any such allegations ring true. 

It is claimed that because no concrete reason for the authority’s decision has been introduced, it should be found in breach of their initial contract. Though no official number has been made public, the complainant has made clear he will be seeking damages for unpaid salary and benefits, accrued interest and legal fees. The case is currently being overseen in a court local to both interests. 

A breach of contract suit can have long-term ramifications for both parties involved. Florida business owners understand that paying out after a successful breach of contract suit does not just mean losing out on those assets immediately, but perhaps also admitting to a dishonest business practice. On the other hand, business agreements must be honored in order for the system to work, and therefore such litigation is necessary to preserve it. 

Source: theledger.com, “Ex-Housing Authority Director Suing Agency; Claiming Breach of Contract“, Eric Pera, March 20, 2015