Jones & Walden, LLC - Bankruptcy

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Construction and development are important to cities for various reasons. If a city or town wishes to make improvements, enlisting the help of construction companies and developers is often necessary. When a company is chosen, a contract is typically created to come to terms about the construction project. However, if one party believes a breach of contract has occurred, litigation could ensue.

Georgia readers may be interested in such a lawsuit that was recently filed in another state. According to reports, the city had entered into a contract with a construction company for the development and improvement of the area. Apparently, the construction company is trying to end the contract, but the terms of the contract purportedly state that one party does not have the ability to terminate the contract once construction has begun.

The construction company reportedly claims that construction has not started, but representatives for the city say that the project began two years ago when demolition in the downtown area started. It was noted that no progress has been made on the project since demolition. A statement from the developer indicated that the contract was mutually abandoned.

When a company faces an accusation of breach of contract, it can add serious complications to an already sensitive matter. If Georgia construction companies or developers find themselves facing this type of challenge, they will certainly want to ensure that they understand their options. Discussing the matter their experienced business law attorneys could help them determine which courses of action could help them combat such allegations.