Is It Worth Suing For Breach Of Contract in Oklahoma?

Many ask whether it’s worth suing for a breach of contract, as the breach can cause significant losses and disruptions. In Oklahoma, a lawsuit for breach of contract can be an effective way to recover damages, enforce the terms of an agreement, or deter future breaches. However, deciding to sue involves weighing several important factors, including the strength of your case, the potential damages you could recover, and the time and cost involved in litigation.

What are the Criteria?

Before filing a lawsuit, it is essential to determine whether you have a valid, enforceable contract and sufficient evidence to prove that the other party breached its terms. A valid contract generally requires the following elements:

• Offer and acceptance
• Mutual consideration (exchange of value)
• Legal capacity of both parties
• Clear terms and obligations

Additionally, you must be able to show that the other party failed to fulfill their contractual obligations and you suffered damages as a result. If your case meets these criteria, you may have a strong foundation for a breach of contract claim. However, if there are disputes over the existence or terms of the contract, you may face additional challenges.

What Types of Damages Can You Recover?

One of the primary reasons to sue for breach of contract is to recover damages caused by the breach. In Oklahoma, the following types of damages are commonly awarded in breach of contract cases:

• Compensatory Damages: These damages compensate you for actual losses, such as lost profits or expenses incurred due to the breach.
• Consequential Damages: These cover indirect losses, provided they were foreseeable at the time the contract was formed.
• Specific Performance: In some cases, the court may order the breaching party to fulfill their contractual obligations rather than pay damages.
• Liquidated Damages: If the contract specifies a pre-agreed amount of damages in the event of a breach, the court may enforce that provision.

Assessing the potential damages you could recover is critical in determining whether suing is worth the time, effort, and expense.

How Much Will It Cost to Sue for Breach of Contract?

Litigation costs are a significant factor in deciding whether to pursue a breach of contract claim. These costs may include:

• Attorney’s fees
• Court filing fees
• Expert witness fees
• Discovery costs (e.g., depositions, document production)

In Oklahoma, parties are generally responsible for their own legal fees unless the contract includes an attorney’s fees provision. If your contract contains a clause stating that the prevailing party is entitled to attorney’s fees, you may be able to recover those costs if you win.

Are There Alternative Dispute Resolution Options?

Before initiating a lawsuit, it is often worth exploring alternative dispute resolution (ADR) options, such as mediation or arbitration. These methods can be faster, less expensive, and more private than going to court. Mediation involves a neutral third party who helps both sides negotiate a settlement, while arbitration is a more formal process where a neutral arbitrator hears the case and makes a binding decision.

If your contract contains an arbitration clause, you may be required to pursue arbitration instead of litigation. ADR can help resolve disputes more efficiently and preserve business relationships.

What Are the Chances of Collecting a Judgment?

Even if you win and are awarded damages, you must consider whether the breaching party has the ability to pay. If the other party is insolvent or unwilling to pay, you may have difficulty collecting your judgment.

In some cases, you may need to take additional legal steps, such as:

• Garnishing wages or bank accounts
• Placing a lien on property
• Seizing assets

Before suing for a breach of contract, evaluate the breaching party’s financial status and whether they have the means to satisfy a judgment.

What Are the Risks of Suing for a Breach of Contract?

Litigation involves certain risks, including:

• Counterclaims: The other party may file a counterclaim against you, alleging that you breached the contract or caused damages.
• Unfavorable Outcomes: The court may rule against you, leaving you responsible for your own legal fees and potentially for the other party’s costs.
• Damage to Relationships: Suing a business partner, vendor, or customer can damage existing relationships and harm your reputation.

Weigh these risks carefully before deciding to move forward with a breach of contract lawsuit.

Tulsa Civil Litigation Lawyers

Deciding whether suing for a breach of contract is a good idea requires a careful analysis of your case’s strength, the potential damages, and the costs and risks involved. While litigation can be an effective way to resolve disputes and recover losses, it is not always the best option. Exploring alternative dispute resolution methods, assessing the other party’s ability to pay, and consulting with an experienced attorney can help you make an informed decision.

If you are considering a breach of contract lawsuit in Oklahoma, contact the Tulsa business law attorneys at Kania Law Office by calling us at (918)–743-2233 or online.