Dinn, Hochman & Potter, LLC

Breach of contract leads to layoffs and possible litigation

Business managers throughout Ohio make business decisions on a daily basis. It is their job to make sure that each business is operated in the manner in which its shareholders expect. Furthermore, when problems arise, it is the business manager's responsibility to investigate the problem and remedy the situation. In some cases, this remedy can appear to others to be a breach of contract.

Recently, a grocery store chain and the company it hired to staff and manage its warehouse facility reached an impasse. According to the grocery store company, the management company is failing in its ability to manage the facility. As a result, they are terminating their contract with the management company.

On the other hand, the management company claims that the grocery chain rushed completion of the facility, thus negatively affecting their ability to manage it. Furthermore, as a result of the breach of contract, the management company is in a position where it is finding it necessary to lay off in excess of 200 warehouse employees. They claim that the grocery store company currently owes them over $1 million. As a result, the management company has sued the grocery chain for breach of contract.

In a situation such as this one, it would be prudent for both sides to be represented by experienced legal counsel. Breach of contract can carry with it significant financial concerns for all involved. As such, it is possible that Ohio businesses that find themselves in a similar situation will find it necessary for the courts to assist in settling the matter.

Source: progressivegrocer.com, "Schnucks Warehouse Operator Cutting Jobs", March 3, 2017

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