In December, seven Tim Hortons restaurants located in Minnesota were sued for breach of contract and other claims. This is not the first time Tim Hortons and its parent company, Restaurant Brands, have been involved in litigation involving breach of contract allegations. In June 2017, several Tim Hortons franchisees filed a lawsuit against Restaurant Brands for breach of contract. All this litigation may lead us to question what constitutes a breach of contract and why would it lead to litigation.
Contact Provisions.
Even carefully drafted contracts can be open to interpretation and disputes. Companies change. Intentions change. Regardless of the reason, when one party feels, or knows, that part of a contract is not being followed, breach of contract allegations crop up.
Why Litigation?
It’s not cheap to file and pursue a lawsuit. It’s usually not a particularly quick process. Trying to find out whether a breach occurred can be a fact-intensive investigation that requires combing through corporate documents and communications. Alternatives to litigation may be explored, but if one party fails to cooperate when questioned about the possible breach, a lawsuit will force them to respond.
When one party breaches the terms of a contract, it’s very likely that one or more other parties suffered some kind of economic damage. Often the damage is in an amount that just cannot be ignored. A wronged party deserves compensation for losses due to a breach of contract.
Address a Breach of Contract Head On.
At this point, of course, we can’t know how the Tim Hortons litigation will end. The parties may settle quickly or face years of litigation. However, the Tim Horton litigation highlights the issues parties may face when contracts go wrong.
Assessing a breach of contract claim and determining what course of action to take requires expert advice. At Virtus Law, we have the skill and experience to review and analyze your contracts. We urge you to consult with one of our attorneys as soon as possible. To set up an appointment, call us at 612.888.1000 or send us an email at info@virtuslaw.com. Serving clients in Minneapolis, Edina, Mendota Heights, Red Wing, and surrounding communities.