Home>Levelset Community>Legal Help>Is it worth the trouble for a sub contract to sue a general contractor for breach of contract if a payment wasn’t made to the sub? What’s the most i can sue for ? Can i sue for more than the amount owed?
Is it worth the trouble for a sub contract to sue a general contractor for breach of contract if a payment wasn’t made to the sub? What’s the most i can sue for ? Can i sue for more than the amount owed?
I’m a sub wanting to sue a GC for breach of contract
Aug 20, 2018
Whether or not a lawsuit for breach of contract would be worth it is a judgment call for the party contemplating filing suit. Depending on the amount at issue, it may be worth it, and it may not. Generally, a claimant will only be able to sue for the amount that they were injured by the nonperformance of the contract. Typically, this will be limited to the amount that was owed and unpaid as a result of the contract, plus potentially some additional damages. Further, if a claimant wins their suit, it's entirely possible that the court would award attorney fees - so the costs of filing suit could potentially be paid by the other party. Of course, litigation can get expensive fast, and it's unpredictable. But that's true for both sides! Meaning, a threat to file suit for damages can be effective since the other party will not want to deal with the hassle and headache of a lawsuit. Of course, other methods for recovery - such as a mechanics lien or potentially small claims court - will be much more cost effective. Plus, a lien is preferable to a lawsuit on many fronts - a lien does not require an attorney, it's cheaper and easier to file a lien than a lawsuit, and a lien filing brings in the property owner as a potential party from whom payment might be recovered from. As a final note - the best way to determine whether a breach claim would be worthwhile might be to consult a local construction or contract attorney. Often, they'll provide a first consultation at little or no cost to the potential claimant. They'll be able to better assess your situation and provide advice on whether moving forward with a claim would be worthwhile.