Dunn Lambert, LLC
We mean business
Comprehensive legal services for businesses in New Jersey and New York call 201-957-0874
Dunn Lambert, LLC
comprehensive legal services for businesses call 201-957-0874

New Jersey city investigates possible breach of contract claim

In every contract, the parties' rights and obligations are defined within the terms. These terms should include what is expected from each party and how each of the obligations can be fulfilled. However, sometimes despite the contract terms a party fails to uphold the contract -- either on accident or on purpose -- and a breach of contact occurs. When this happens it is likely that a contract dispute will ensue over the breach.

A New Jersey city, Seaside Heights, is in the middle of investigating whether a breach of contract took place between the city and a towing company. This investigation could lead to a contract dispute, litigation and contract termination if a breach occurred.

Since 2010, the towing company has been the only company allowed to tow vehicles from the city under the terms of a three year contract. However, that contract has been called into question after Hurricane Sandy. According to residents of the town, the towing company was charging extremely high amounts to tow cars following the storm. These allegations are being investigated by the Ocean County Prosecutor's office and by the Division of Consumer Affairs. The company could face criminal charges.

Seaside Heights is also conducting an investigation into the claims to see if a breach of the contract occurred. If Seaside Heights concludes that price gouging occurred then the contract will be considered breached. The town could completely end its relationship with the towing company and terminate the contract.

The towing company claims this was all a misunderstanding. It claims that the employee responsible for making the billing errors was fired. However, while the investigation continues, Seaside Heights has signed a 30 day contract with another towing company.

This case shows the serious repercussions a breach of contract can have on the companies involved. Business contracts need to be taken serious or financial consequences can follow.

Source: Asbury Park Press, "Seaside Heights hires new towing firm amid probes," Kristi Funderburk, Jan. 7, 2013

No Comments

Leave a comment
Comment Information

Office Location

Dunn Lambert, LLC
East 80 Route 4 Suite 170
Paramus, NJ 07652

Paramus Law Office Map

Dunn Lambert, LLC
1745 Broadway, 17th Floor
New York, NY 10019
New York Law Office Map
Phone: 201-957-0874
Fax: 201-291-0140
Telephone: 212-768-0700
Fax: 212-519-9804
Best Lawyers | Best Law Firms | U.S.News & world report | 2016

GET ANSWERS from a firm
with a sense of business.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Review US
Subscribe to This Blog's Feed FindLaw Network