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When breach of contract leads to financial loss

After signing a contract for services with any type of company, a person in Houston should be able to count on that business to fulfill the terms of the contract. Failure to do so results in a breach of contract, and the person who is wronged may be able to file litigation and win if he or she can prove that the contract and the damages are valid, and that there was a failure to perform the services as promised.

A couple in Houston have filed a lawsuit to cover the costs of damages to their home sustained by inclement weather, as well as expenses related to the case. They claim that those responsible for inspecting, adjusting and paying insurance claims did not fulfill their duty as defined by the contract, which led to further destruction of the residence.

The plaintiffs claim the insurance companies did not properly inspected the home after the first storm and covered the costs of repairs, and the denial of sufficient coverage left the home vulnerable to a subsequent storm. They contend that the defendants are guilty of violating the Texas Insurance Code, and are claiming breach of contract and fraud.

Breach of contract often results in financial hardship for those who have had their rights infringed, but they may be able to recover compensation for the losses through the legal system. An attorney who is familiar with federal and state laws regarding contract disputes may be able to provide legal advice to someone who is the victim of another’s failure to honor the terms of an agreement.

Source: SE Texas Record, “Texas couple accuses multiple entities of breach of contract,” Philip Gonzales, Aug. 18, 2016

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