Spokane Industries Inc. filed a lawsuit against Jet Fleet Management LLC. Jet Fleet is a Florida-based company that leases, charters and manages aircraft. Spokane alleges Jet Fleet breached their contract duties.
Spokane was not paid for merchandise
The alleged incidents occurred in February and March 2016. Spokane stated it sold and delivered tires, tubes and towbars to Jet Fleet. The company claims they were not paid in full, and the airplane equipment cost $18,867. This resulted in a breach of contract.
Spokane is seeking the full $18,867, court costs and any other compensation the court deems fit. They have requested a trial by jury.
Proving breach of contract
When businesses sign a contract, they agree to certain terms. If a company fails to perform those duties, they may be in breach of contract.
To prove breach of contract, you must demonstrate the contract was valid. Then you prove the other business did not perform the duties as agreed upon. This can occur if the other business does not deliver on time, does not do what is described in the contract or does not fulfill the contract at all. The company suing must demonstrate they did perform their contracted duties. The company must also inform the defendant about the lawsuit, usually in writing.
Immaterial vs. material breach
Depending on the severity of the breach, it is categorized as a material or immaterial breach. A material breach seriously affects the ability of a company to conduct their business. If a company was contracted to deliver tires and it did not, this would likely be considered a material breach.
If the same company was late, but they delivered the tires, this will likely be an immaterial breach. However, if timely delivery was specified in the contract, this could be a material breach.
With a material breach, the other company may seek damages. However, with an immaterial breach, the wronged company cannot seek damages. If the breach of contract is deemed intentional and particularly harmful, the plaintiff may be awarded punitive damages. Punitive damages are given as a punishment for another company’s misdeeds.