when is there a breach of contract in attorney client cases

by Wayne Abbott 5 min read

If you hired an attorney to represent you in court and then found that your attorney failed to follow the specific terms that were laid out within the contract held between the two of you for the duration of the case, then this could mean that your attorney has breached contract.

Full Answer

What is the law on breach of contract?

In contract law, a breach of contract gives rise to a cause of action where the innocent party has: in some cases, may obtain specific performance of the contract, or an injunction to restrain further breaches of contract.

What does breach of contract mean in a lawsuit?

Updated November 19, 2020: Breach of contract law stipulates that a breach of contract happens when one of the parties to the contract fails to live up to his part of the agreement. A breach of contract varies in severity and can be partial, material, anticipatory, or fundamental. For a court to accept to hear a breach of contract case, the aggrieved party must prove the following:

What are the elements of a breach of contract claim?

What are the elements of a breach of contract claim?

  • The existence of a contract;
  • Performance by the plaintiff or some justification for nonperformance;
  • Failure to perform the contract by the defendant; and,
  • Resulting damages to the plaintiff.

Do I need a lawyer for a contract dispute?

To protect yourself from this type of situation, it is a great idea to speak with a contract dispute attorney. They can look at the contract and make sure it is fair to both parties before you sign it. Never trust the other party if they say that you shouldn’t worry about a particular clause or statement.

What is breach of contract law?

Breach of contract law stipulates that a breach of contract happens when one of the parties to the contract fails to live up to his part of the agreement. 3 min read

What are the conditions for a court to take up a breach of contract lawsuit?

Conditions for Courts Taking Up Breach of Contract Lawsuits. Courts have standards for hearing cases involving breach of contract violations. In many states, there are four main conditions that have to be fulfilled for a court to accept to hear a breach of contract lawsuit: The contract should be valid.

What are the different types of breach of contract?

There are four basic types of breach of contract scenarios: A Minor or Partial Breach: This involves the breach of some terms of the agreement. A partial breach does not excuse the aggrieved party from living up to his side of the bargain. An Anticipatory Breach: An anticipatory breach is one that has not happened yet.

What is the best way to deal with a breach of contract?

Courts have many options in dealing with proven breach of contract violations: Issuing court orders. The court may give an order obligating the party that breached the contract to fulfill its side of the contract. This is normally the case for minor or partial contract violations. Awarding damages.

What is fundamental breach?

Fundamental Breach: A fundamental breach of contract is one of the most serious contract violation levels. In such a breach, the aggrieved party can sue and get damages.

Why do we sign contracts?

Contracts are signed with the intention of reducing the possibility of future misunderstandings. Because of some changes in the circumstances or financial affairs of the parties to the contract, one party may fail to live up to his expected terms in the agreement. This is called a breach of contract.

Can a contract award monetary damages?

The contract may award monetary damages to the aggrieved party. Courts can award general damages, punitive damages, and nominal damages depending on the circumstances of the lawsuit. If you need help with contract law, including breach of contract issues, you can post your legal need on UpCounsel's marketplace.

What happens if you don't fulfill your contract?

If either of the parties do not fulfill their end of the contract, a breach of contract has occurred. At that time, you can try to resolve the issue with a letter or by negotiation. If all attempts fail, you may end up in a breach of contract case in a civil court. When you are faced with a breach of contract, it is always wise to seek ...

How to prove a contract was reasonable in Arizona?

Send a summons to your former employee. Follow the rules of discovery and answer and crossclaims. Prepare for court by gathering all your necessary proof. Also, bring to court with you information regarding the legal basis of your claim, so you can prove the contract was reasonable under Arizona law.

Why is it frustrating to negotiate a case?

This case seems frustrating because the other party is being evasive and dishonest. Negotiation will be difficult if not impossible with a party attempting to trick you. However, you may be able to get results when you try the same methods with an attorney. While the offending party may not take you or the situation seriously, the threat of legal action up front may be more persuasive.

What to do when faced with breach of contract?

When you are faced with a breach of contract, it is always wise to seek the advice of a business attorney who is experienced in that area. Your attorney will work to find the solution that is best and most efficient for you.

Why do people enter into contracts?

People enter into contracts for mutual advantage because each has something the other party wants. It may be something as simple as buying a product for money, or something more complicated such as an employment contract with a no-compete clause. If either of the parties do not fulfill their end of the contract, a breach of contract has occurred.

What to do if your former employee doesn't comply with your contract?

If your former employee doesn’t comply at that point, draft your complaint and explain what you are asking for. In this case, you may be asking for the Court to order compliance instead of asking for monetary damages. Make copies of everything.

How long can a non-compete clause be enforced in Arizona?

In Arizona, non-compete clauses are enforceable as long as they protect legitimate business interests, are reasonable in scope and duration, and as long as they don’t violate public policy. Your business stays ahead of the competition with some innovative training and methods, and you only require former employers not to work for local competitors for one year after separation from your company.

Do I have a breach of contract case?

A breach of contract is a failure to perform one’s duties under a legally binding agreement. Often, when two or more people make a contract, they specify certain things that are agreed to be done under the contract. Legally, these things agreed to be done are terms of the contract and they are essentially promises.

How do I get damages for a breach of contract?

To get damages for a breach of contract, you have to show that there was a valid contract between you and the other party. You must also show that the actions of the other party caused a breach of the contract and this resulted in loss to you.

What remedies can I obtain in my breach of contract case?

These usually fall into two categories: monetary damages and equitable remedies.

Should I consult an attorney about my breach of contract case?

Due to the fact that it is one of the oldest areas of law, breach of contract cases involve many complicated legal rules. Although these rules were created to protect the rights of parties, they can be very difficult to understand.

How much does a breach of contract attorney cost?

The cost to hire a breach of contract attorney often depends on several factors. This includes the possible length and difficulty of your case. Due to this, it is often impossible to tell with certainty what an attorney will cost.

Are Attorney Fees Considered Damages in a Breach of Contract?

Whether attorney fees will be considered damages in a breach of contract lawsuit depends on the terms of the contract. Attorney fees provisions can often ensure that the parties work in good faith towards resolving any disputes before they result in litigation.

How Can I Get My Attorney Fees Paid For in a Breach of Contract Claim?

For example, in a breach of contract action against an individual, you would include a request that the Court grant you a judgment in the amount of your attorney’s fees as a result of you having to hire an attorney to pursue an action against the breaching party.

Do I Need a Lawyer If I Am Facing a Breach of Contract?

If you are involved in a breach of contract dispute, you should consult with a skilled and knowledgeable contract attorney. An experienced business attorney can review your contract and advise you on how best to proceed in recovering damages.

What is the remedy for a non-breaching party?

The specific type of remedy that the non-breaching party may be entitled to will largely be determined by the severity of the breach of contract, as well as the damage done by the breaching party. Compensatory damages are the most commonly awarded in suits involving breach of contract. This remedy is intended to compensate ...

What is restitution in contract law?

Restitution may be ordered so the breaching party must pay the injured party back, with the intent to restore the injured party to the position they were in prior to the breach . These damages do not generally include lost profits or earnings caused by the breach of contract.

What are punitive damages?

Some other types of damages include punitive damages, which are intended to punish the breaching party for their breach, and remedies in equity. This occurs when a court orders a party to do something as opposed to paying out monetary damages.

What happens if a plaintiff takes too long to file a lawsuit?

However, if the plaintiff takes too long to file their lawsuit, the defendant may be able to assert that they, the breaching party, actually suffered some type of harm or prejudice. The breaching party may then seek to prevent the plaintiff from filing the lawsuit, which is known as estoppel by laches.

What is 212 in the legal profession?

212 The Journal of the Legal Profession tual relationship from unlawful or unjustified interference under certain fact situations. The interfering party can be an insurance adjuster, employer, spouse, some financial consultant, or an attor- ney. The inducement of the breach may take the form of a settle- ment of a pending claim directly with the client (especially if the settlement is unfair), threats against the client if he does not dis- charge his attorney, malicious prosecution, or some other action showing unjustified or unlawful interference resulting in some bene-

What are some examples of inducements by third parties to breach the attorney-client relationship?

Situations involving insurance adjusters and claims representa- tives are not the only examples of inducements by third parties to breach the attorney-client relationship. Take for example the case in which the employer of the attorney's client threatens to fire the client and to withhold injury compensation funds if the client- employee does not discharge his attorney. In fear of losing all means of support, the client thus discharges his attorney. Such extortion- ate behavior by the employer clearly seems to be malicious interfer- ence with the attorney-client relationship and it has been so judi- cially inter~reted.~' A harder case, however, arises when the em- ployer does not threaten the employee who has retained an attorney but instead convinces the employee-client that it is in his best inter- est to settle out of court and not to sue. As a result, the client discharges the attorney. The result of such a case would seem to depend on the manner in which the employer convinces his em- ployee not to bring suit. If the employer induces a breach of the attorney-client contract in an unjustifiable or unlawful manner, however, one can analogize from the insurance adjuster cases to find the employer liable for inducing a breach of the relationship.

Does the law bind a client to an attorney?

In the recent case of Jackson v. Traveler's Insurance Co., the Federal District Court for the Middle District of Tennessee stated: "While the law does not bind a client to an attorney merely because [the client] has entered into a contingent fee contract, the court will vigorously protect the contractual relationship when a third party wilfully interferes with this relationship by inducing the plaintiff-client to discharge [his] attorney and settle with the third party."' This language is typical of the approach taken by many courts in protecting an attorney from third parties who attempt to induce a breach of the attorney-client relation~hip.~ Generally the law protects the attorney from third-party in- ducement of a breach of his relationship with a client by giving the attorney an action in tort for damages. The general theory of recov- ery has been based on the traditional liability for tortious interfer- ence with a valid ~ontract.~ However, to speak in terms of such abstract generalities is not really helpful in an analysis of the prob- lem, for courts formulate and decide issues upon a consideration of fact situations. Different fact situations call for different arguments by the parties and, consequently, for different treatments by the courts. Although these principles apply in the inducement to breach cases, it is possible to group fact situations in this area into three broad headings. Accordingly, the discussion below analyzes the in- ducement to breach problem in cases in which (1) insurance compa- nies are involved in the inducement; (2) other non-lawyers are in- volved; and (3) lawyers themselves induce the breach.

Is a non-contractual rela- tionship between attorney and client a significant extension of protection?

Expanding the cause of action to include tort liability for unjustified interference with some non-contractual rela- tionship between attorney and client would seem to be a significant extension of protection to both attorney and his client. Personal and confidential in nature, the attorney-client relationship may be more easily disturbed than a less sensitive contractual relati~nship.~~ Vig- orous protection by the courts is desirable.

Answers to common questions

Not always. Probably 80% of attorneys in private practice in Arizona are covered by insurance, but it is not required by the State Bar.

Suing an Attorney for Breach of Contract

While an attorney usually signs a written contract agreeing to represent a client, known as a “retainer,” the grounds upon which a negligent Arizona attorney may be sued are generally not contractual. This is for the benefit of the client, in that it prevents the attorney from drafting a contract hugely to the attorney’s advantage.

Duties of an Attorney

Regardless of what is in the retainer contract, the law imposes a duty of care and duties of honesty, loyalty and fidelity on an attorney relative to the client. For this reason, suits against attorneys are generally under a negligence or fiduciary breach theory, not a breach of contract theory.

Breach of Contract Example Cases

For instance, in Hill v. Williams, 74 Conn. App. 654, 813 A.2d 130 (Conn. App. 2003), the retainer stated that the lawyer would represent the client in four separate, specifically identified litigations. The lawyer did not represent the client in any of the four cases and the client sued for breach of contract.

Contact a Breach of Contract Attorney

If you’ve worked with an attorney that was not holding their end of the required contract, talk to our breach of contract attorney today. We’ll help explain your legal situation and help you recover compensation. Contact us using our online form or call (800) 955-3457 to start building your case.

What are the problems with attorney client contracts?

Several potential problem areas that I have observed in attorney-client contracts are: 1) termination provisions, 2) non-refundable retainer provisions, 3) consent to settle provisions; and 4) arbitration provisions. Usually, the reason these particular provisions pose a problem is a result of the lawyer’s failure to appreciate his ethical duties ...

Why are attorney contracts unique?

Attorneyclient contracts are unique because of the special relationship between attorneys and their clients. Attorneys cannot circumvent their ethical obligations by inserting language to the contrary in a contract with the client. The Texas Supreme Court has refused to allow attorneys to contract away their ethical obligations.

What is required to disclose in an arbitration agreement?

Most importantly, in order for an arbitration agreement to be effective, the lawyer must adequately disclose to the client the differences between litigation and arbitration, and explain the significant advantages and disadvantages of both. Opinion No. 586, The Professional Ethics Committee for the State Bar of Texas (October 2008). This requirement is based upon Rule 1.03 (b), which provides that “ [a] lawyer shall explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation.” The client’s level of sophistication, education, and experience will determine how much information needs to be disclosed. Generally speaking, the more sophisticated the client, the less the amount of information that needs to be disclosed. In some cases of highly sophisticated clients (such as a company with in-house counsel), no disclosure at all may be necessary. On the other hand, in cases where clients have little or no legal experience, more detailed disclosure is required regarding the advantages and disadvantages of arbitration versus litigation. Examples of some information which may need to be disclosed include the following: (1) the relative costs involved with arbitration [there is a common misconception, even among lawyers, that arbitration is less expensive; however, arbitration costs can be significantly higher than litigation, especially if more than 1 arbitrator is used]; (2) the client’s obligation, if any, to pay for arbitration costs; (3) the relative time savings involved with arbitration; (4) waiver of the client’s right to a jury trial [ironically, many lawyers who claim to fight for this invaluable right don’t have a problem forcing their own client to give up this same right by including an arbitration clause in their contract]; (5) reduced amount of discovery in arbitration; (6) relaxed application of rules of evidence in arbitration; (7) loss of right to appeal an arbitration award (based upon the extremely narrow scope of appellate review); and (8) privacy of arbitration proceeding versus open/public nature of litigation. See, Opinion 586.

How much notice can a lawyer give to withdraw from a contract?

For example, a lawyer can’t insert language in the contract which gives him the right to withdraw upon 10 days notice to the client, if that would not be considered “reasonable notice” to the client under the circumstances, and would not allow the client time to employ other counsel.

Can arbitration clauses be used to limit a lawyer's liability?

However, it is important to note that there are limitations on the use of these clauses. Arbitration provisions may not be used to insulate or limit a lawyer’s liability, to which he might otherwise be exposed under common or statutory law, unless the client is independently represented by counsel in making the agreement. In re Hartigan, 107 S.W. 3d at 689. Thus, for example, you can’t include language that would prevent the client from recovering punitive damages from the lawyer (unless the client is represented by separate counsel). This would be in violation of Rule 1.08 (g), which prohibits a lawyer from making an agreement that prospectively limits his liability to a client for malpractice, unless permitted by law and the client is independently represented in making the agreement.

Does a personal injury claim need to be represented by an attorney?

Pursuant to the Texas Arbitration Act, if the claim is one for personal injury, the party must be represented by an attorney, and the party’s attorney must sign the agreement, in order for the arbitration clause to be enforceable. However, there is a split of authority regarding whether legal malpractice constitutes a personal injury, and thus whether the client must be represented by separate counsel. Compare In re Godt, 28 S.W.3d 732, 738-39 (Tex. App.-Corpus Christi 2000, orig. proc.) (legal malpractice claim is a personal injury claim) with Taylor v. Wilson, 180 S.W.3d 627, 629-31 (Tex. App.-Houston [14th Dist.] 2005, pet. denied), Miller v. Brewer, 118 S.W.3d 896, 898-99 (Tex. App.-Amarillo 2003, no pet.). and In re Hartigan, 107 S.W.3d 684, 689-91 (Tex. App.-San Antonio 2003, pet. denied) (each holding that a legal malpractice claim is not a personal injury claim). Although there are more cases holding that a legal malpractice claim is not a personal injury claim, this is still an area where attorneys should exercise caution.

Can an attorney settle a case without consulting with the client?

One Texas case has held that a provision which authorizes the attorney to settle the client’s case, without any further consultation with the client, violates Rule 1.02 and is unenforceable. Sanes v. Clark 25 S.W. 3d 800, 805 (Tex. App. Waco, 2000, pet. denied). Rule 1.02 requires a lawyer to abide by a client’s decision regarding whether to accept an offer of settlement, except as otherwise authorized by law. Comment 3 to this rule states that a “lawyer should consult with the client concerning any such proposal, and generally it is for the client to decide whether or not to accept it.” There are certain exceptions to this rule, such as in class actions, and a few other limited circumstances; however, the point is that a lawyer may not contractually circumvent this ethical obligation to consult with the client about a settlement offer and abide by the client’s decision, by inserting language to the contrary in a contract with the client. This is made crystal clear by comment 5 to Rule 1.02, which says “the client may not be asked to agree to surrender … the right to settle or continue litigation that the lawyer might wish to handle differently.”

What happens if you don't file a substitution of attorney?

If a substitution of attorneys is obtained, be sure it complies with the requirements of the tribunal and that it is filed with the court. Although failure to file a substitution of attorney form alone will not continue the relationship indefinitely, the sounder practice is to follow the rules.

What is the continuous treatment doctrine?

18 Under the doctrine, denominated as one of "continuous representation" as applied to attorneys, a plaintiff is relieved of the obligation to commence an action against the attorney until the attorney has ceased to represent the client in the case in which the malpractice first occurred. 19 " [T]he rule recognizes that a person seeking professional assistance has a right to repose confidence in the professional's ability and good faith, and realistically cannot be expected to question and assess the techniques employed or the manner in which the services are rendered." 20 In order to invoke the doctrine, there must be "clear indicia of an ongoing continuous, developing and dependent relationship between the client and the attorney." 21 Consequently, the application of the doctrine is limited to situations where the attorney allegedly responsible for the malpractice continues to represent the client in the same case. "When that relationship ends, for whatever reason, the purpose for applying the continuous representation rule no longer exists." 22 In addition, the representation must be for the same or related services and not the continuation of a general professional relationship. 23

What court found that the public policy interest in having a definitive statute of repose is a public policy interest?

The Britt court acknowledged the public policy interest in having a definitive statute of repose but found that the "interests of judicial economy militate against a rule where litigious criminal defendants can occupy the time of their incarceration by pursuing civil actions against their former attorneys.".

What percentage of claims against attorneys are predicated upon a breakdown in client relations?

To the contrary, statistics demonstrate that 19% of all claims against attorneys are predicated upon a breakdown in client relations 1. More importantly, the Departmental Disciplinary and Grievance Committees regularly address allegations of client neglect, often resulting in disciplinary action 2.

Why did the 3 year statute apply?

Passage of the amendment was described as the legislature's reaffirmance of its intent that the three year statute apply in order to put an end to the concern that "the courts will continue to expand the statute of limitations in general malpractice cases" to be governed by the six year statute .

Why are attorney-client contracts unique?

Attorney-client contracts are unique because there are ethical considerations overlaying the contractual relationship between the parties. Attorneys cannot circumvent their ethical obligations by inserting language to the contrary in a contract with the client. The Texas Supreme Court has explicitly refused to allow attorneys to contract away their ethical obligations. See, Hoover Slovacek L.L.P. v. Walton 206 S.W.3d 557, 560 (Tex. 2006). “When interpreting and enforcing attorney-client fee agreements, it is ‘not enough to simply say that contract is a contract. There are ethical considerations overlaying the contractual relationship.'” Id. at 560.

Can a lawyer prevent a client from firing a lawyer?

A lawyer cannot prevent the client from firing the lawyer, even if the lawyer includes language in the contract which restricts the client’s right to fire the lawyer. The client has the absolute right to discharge a lawyer “for any reason or no reason at all.” Hoover Slovacek L.L.P. v. Walton, 206 S.W.3d at 562. The inclusion of language in a contract which imposes an undue burden on the client’s ability to change counsel violates public policy and is unconscionable as a matter of law. Hoover Slovacek L.L.P. v. Walton, 206 S.W.3d at 563.

Is a contract enforceable by a lawyer?

Clients should know that many lawyers include provisions in their contracts which are not enforceable. Generally speaking, any contractual provision contrary to the lawyer’s ethical duty to the client is unenforceable. If you need assistance in determining whether, a provision in your contract is enforceable, contact Jim Pennington (214) 741-3022.

Levels of Breach of Contract

  • Contracts are signed with the intention of reducing the possibility of future misunderstandings. Because of some changes in the circumstances or financial affairs of the parties to the contract, one party may fail to live up to his expected terms in the agreement. This is called a breach of contract. Contract breaches vary in severity. There are fo...
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Conditions For Courts Taking Up Breach of Contract Lawsuits

  • Courts have standards for hearing cases involving breach of contract violations. In many states, there are four main conditions that have to be fulfilled for a court to accept to hear a breach of contract lawsuit: 1. The contract should be valid. The aggrieved party must prove that the contract in question is legal and meets all the requirements of an enforceable contract. 2. The aggrieved …
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Common Defenses in Breach of Contract Lawsuits

  • When an entity is sued for breach of contract, there are several defenses available: 1. The contract was signed under coercion or deception. The sued party might argue that he was coerced or deceived into signing the contract against his will. Some entities claim that the other party to the contract had undue influenceon them. All of these defenses, if true, are grounds for a court to de…
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How Courts Solve Breach of Contract Lawsuits

  • Courts have many options in dealing with proven breach of contract violations: 1. Issuing court orders. The court may give an order obligating the party that breached the contract to fulfill its side of the contract. This is normally the case for minor or partial contract violations. 2. Awarding damages. The contract may award monetary damages to the aggrieved party. Courts can awar…
See more on upcounsel.com