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Creditors' Rights Litigation in State and Federal Courts
Breach of Contract Litigation
The Elements of a Breach of Contract Claim
A creditor may assert a breach of contract action against a debtor where the creditor and debtor entered into an agreement and the debtor then breached that agreement.
In order to prevail on a breach of contract claim against a debtor, a creditor must generally be able to demonstrate that there was a contract between the debtor and the creditor, that the creditor performed its obligations per the contract, that the debtor breached the contract by failing to perform that debtor’s obligations, and that as a result of the debtor’s breach the creditor experienced damages.
A Creditor May Move for Summary Judgment in Connection With its Breach of Contract Claim
If a creditor has a straightforward claim for breach of contract against a debtor, a creditor may consider attempting to resolve its case with a motion for summary judgment.
A creditor can move for summary judgment on its breach of contract claim when there are no issues of material fact as to whether the creditor is entitled to a judgment against a debtor in connection with its breach of contract claim. A creditor can move for summary judgment on its breach of contract claim where the debtor has no defense to the action.
A creditor demonstrates that a debtor has no such defense where the creditor establishes each element of its claim and the debtor is unable to demonstrate that there is a triable issue of fact as to the cause of action.
A motion for summary judgment can be an efficient means for a creditor to resolve a straightforward breach of contract claim without the time and expense of going to trial.
If the Debtor Defaults the Creditor Can Obtain a Default Judgment
If the debtor ignores a breach of contract lawsuit or any other lawsuit, a default judgment may be entered against the debtor. In other words, if the debtor ignores a lawsuit, the creditor may be able to prevail in the lawsuit by means of a relatively straightforward uncontested process whereby the creditor can obtain a default judgment against the debtor.
After the creditor obtains a default judgment against a debtor, the creditor may utilize all of the remedies available to a judgment creditor to collect on a default judgment.
A Creditor May Obtain Interest in Connection With its Breach of Contract Claims
A debtor’s contractual debt to a creditor is subject to interest. In California, where a contract is silent on the issue, prejudgment interest on a breach of business contract claim accrues at ten percent per annum. Cal. Civ. Code § 3289(b). In California, post-judgment interest generally accrues on a judgment at a rate of 10 percent per annum. C.C.P. § 685.010.
In Arizona, prejudgment interest on a business breach of contract claim is ten percent per annum, unless certain exceptions apply. A.R.S. §44-1201(A)(2). In Arizona, post-judgment interest is generally the lesser of ten percent per annum or a rate that is equal to the prime rate plus one percent, unless certain exceptions apply. A.R.S. §44-1201(B).
Kluewer Law P.C.
Breach Of Contract Attorney
Los Angeles, California, San Francisco, California, Phoenix, Arizona
Kluewer Law P.C. has successfully obtained substantial recoveries on behalf of creditors in breach of contract litigations.
Kluewer Law P.C. represents plaintiff creditors from all over the country and the world in breach of contract litigations in California and Arizona.
Kluewer Law P.C. is headquartered in Los Angeles, California and has locations in San Francisco, California and Phoenix, Arizona.