Dinn, Hochman & Potter, LLC

Contract disputes can affect company production

Businesses often rely upon vendors to supply necessary parts to produce the end product. While the Ohio business and the vendor may be physically thousands of miles apart, they still have a working relationship and often a contractual obligation with each other. Most of the time things go smoothly and both parties uphold their end of the agreement; however, there are times when there are contract disputes and the company needs legal clarification and/or assistance to remedy the situation.

In one recent situation, a contract dispute resulted in a production stoppage of a company's product. At the center of this dispute are Pratt & Whitney Canada, an aircraft engine manufacturer, and Nordam, an aerospace company. Nordam has been contracted to build component parts to be used in the production of Gulfstream Business Jets. However, as a result of the contract dispute, Nordam has ceased production.

Both parties indicate that they have worked diligently to resolve the conflict, but it appears that both parties believe the other has not successfully answered the challenges presented. In many similar instances, the companies involved could simply choose to do business with others; however, in a specialized market such as this one, that is not always possible. While it is easy to say that business will be taken elsewhere, there may not be anywhere else for it to go and both companies may suffer as a result until the problem is resolved.

Contract disputes can be a problem for both large and small companies throughout Ohio. While they can best be avoided by beginning with a carefully worded contract, it may be too late for this plan of action. However, experienced legal counsel can work with the company to solve current problems and possibly prevent future ones from occurring.

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