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Contract Disputes Archives

Court Rules that Federal Arbitration Act Preempts California State Law

arbitration.jpgRecently, the United States District Court for the Northern District of California issued an important opinion in the case of Bell Prods. v. Hosp. Bldg. & Equip. Co. The court ruled that the Federal Arbitration Act (FAA) preempts a California state statute that requires that arbitration proceedings must remain in state. The decision could potentially have significant ramifications for California businesses and contractors who deal with out of state firms.

California Law: Changes to the Claims Resolutions for Public Works Projects

public-works.jpgOn January 1st, 2017, California's Assembly Bill 626 (AB 626) officially became law. This legislation substantially alters the claims process for public works-related disputes. Like any other project, a public works project has the potential to run into problems. As such, it is imperative that companies are able to protect their rights and interests. All contractors and construction firms that are involved in public works projects must understand this new law.

Southern California Edison Awarded $125 Million in Contract Dispute, Liability Cap Prevents Additional Damages

contract.jpgAccording to a report from the Los Angeles Times, Southern California Edison, the single largest subsidiary company of the Edison Corporation, has been awarded $125 million by a three-person arbitration panel. Originally, the company and its business partners were seeking more than $7 billion in damages from Mitsubishi Heavy Industries. While the arbitration panel agreed that additional financial damage occurred, a liability cap in the underlying contract limited the recovery.

Understanding Contract Disputes and Breach of Contract Claims

business-contract.jpgToday, a majority of businesses rely on contracts to fulfill their day-to-day operations. When you sign a contract with another business or individual, you expect them to perform their end of the bargain or agreement. When a party fails to fulfill their end of the bargain or breaches the agreement, your business can quickly run into financial trouble, losing a significant amount of profit, time and resources.

When to Consider Mediation for Business Contract Disputes

mediation-contract-disputes.jpgThe purpose of contracts is to create a binding agreement for business transactions, but unfortunately, there are times when these are not upheld. Contracts can be disputed for their validity, enforceability, and meaning all of which can become complex. When there is a business contract dispute, an alternative resolution solution such as mediation might be suggested.

Business Contracts: What You Need to Know

business-contract-disputes.jpgEntering into a basic contract seems like it should be a simple black and white situation, but there are several factors involved in regards to business transactions. Disputes often arise when there are is question over a contract's meaning, validity, or enforceability. Contracts help protect both businesses and consumers by making an agreement legally binding.