Law Suit Question

[sigur_ros]

Thankfully I do not anticipate being involved in litigation anytime soon but am wondering about this sort of situation: Say my company owes someone a half-million dollars for services rendered, and I decide not to pay them obviously they sue. What sort of damages is the court likely to award? Obviously they’ll award the half-million if thats what I owed, but then what (legal costs aside)…interest? Punitive (I think thats the right word) damage for not paying me when they were supposed to?

thanks.

[Abbie_Carmichael]

Um, can you rephrase that?

You decide not to pay someone, so there’s a lawsuit and you’re wondering how much money you’d get?

What kind of business is it? What kind of work was done? The more details, the better. Your location is a must-know, too.

[Flipshod]

As with any law question, it would depend on the factual details and the jurisdiciton, but I would think that the plaintiff here would have a good shot at the money owed, reasonable interest, and attorney fees because that would be the amount that would make it whole, as if not screwed over by your company. Punitive damages arise when there is some sort of ergegious malice or ill will in a tort and don’t usually come up in a contract case like your hypo.

Not a lawyer. Not legal advice. And probably fatally flawed in some way.

[ouryL]

@Flipshod

As with any law question, it would depend on the factual details and the jurisdiciton, but I would think that the plaintiff here would have a good shot at the money owed, reasonable interest, and attorney fees because that would be the amount that would make it whole, as if not screwed over by your company. Punitive damages arise when there is some sort of ergegious malice or ill will in a tort and don’t usually come up in a contract case like your hypo.

Not a lawyer. Not legal advice. And probably fatally flawed in some way.

In other words, punitive damages are not usually awarded in contract cases.

[Random]

@Flipshod

As with any law question, it would depend on the factual details and the jurisdiciton, but I would think that the plaintiff here would have a good shot at the money owed, reasonable interest, and attorney fees because that would be the amount that would make it whole, as if not screwed over by your company. Punitive damages arise when there is some sort of ergegious malice or ill will in a tort and don’t usually come up in a contract case like your hypo.

Not a lawyer. Not legal advice. And probably fatally flawed in some way.

Well, you’re right about the punitive damages. Otherwise, no. Absent a contractual provison saying that the prevailing party is entitled to attorneys’ fees, the standard American rule is that the plaintiff does not get to recover attorneys’ fees. Interest would depend on the state, but in most breach of contract cases, prejudgment interest is not available either.

IAAL, but probably not in your jurisdiction. Even if I am, I’m not your lawyer. This is general information about a hypothetical situation, and not meant to be reliable legal advice. See a lawyer licensed in your state for that.

[Flipshod]

@Flipshod

And probably fatally flawed in some way.

Random: Thank you sir. May I have another.

[sigur_ros]

I think the query was meant to establish what the legal system does to encourage parties to abide by monetary contractual obligations. I mean if I stiff someone on a huge amount of money, and I know the worst thing that could happen is that in two years or whatever I will just have to pay them what I owe them, plus maybe some legal fees (but I also have the chance to win the suit) then why bother paying? Of course no business will be able to succeed if they get a reputation for stiffing ppl, but if it was a disperportionately large one-time deal, why not take a chance and stiff them to try saving a ton of money, so long as there is no risk of punitive damages for being a jerk for two years.