A breach of contract lawsuit can lead to a variety of negative consequences. One of those consequences may be a temporary injunction imposed against you. These injunctions may have a powerful negative impact on your business, so it is wise to oppose them vigorously, as one software company successfully did in its recent appellate case. Wherever you are in the litigation process, make sure you have experienced South Florida commercial litigation counsel on your side.
Recently, a software vendor-vendee contract was the source of this kind of dispute and ensuing litigation. A “health, home and travel products” company contracted with a software company for the use of the latter’s software, through which the former could allow its customers to make credit card payments. The merchant often paid its $10,000 monthly obligation late, and missed its June, July and August 2017 payments entirely. At some point, the software company stopped delivering on the services it promised in the contract. According to the merchant, that happened before it missed its June 2017 payment.
The products company sued for breach of contract. Specifically, the merchant alleged that the software company owed it $117,000 that the software company had taken into its merchant services account but failed to distribute to the merchant. When you are sued for breach of contract, the other side may undertake various techniques to achieve an outcome it considers successful. One possible outcome is to file a request for an injunction. An injunction, if granted, would force you to refrain from taking certain actions or else face possible contempt-of-court penalties.