When a contract is breached, the victimized party may never again want to work with the entity that caused the breach. This is an understandable reaction, though it isn’t always the case — nor does it always make financial sense. Some breach of contract claims that are filed in New Jersey and end in favor of the plaintiff afford the opportunity for the plaintiff to once again work with the defendant. One of these types of breach of contract claims is when the claim is between organizations.
A recycling company had its contract terminated by a New Jersey municipality. Officials in leadership positions at the municipality claimed that the recycling company had not performed its duties as expected. Thus, the company was informed that its services would not be needed any longer.
The recycling company saw this termination as a breach of contract, due to extenuating circumstances surrounding its alleged poor performance. For instance, the recycling company believed that the municipality did not prepare residents properly regarding the types of recyclables the company would pick up. Additionally, the recycling company claimed that the municipality had not clearly informed residents of the pickup dates and times. Finally, the recycling company said it was not given the opportunity to respond to the charges made against it. Thus, the company filed a breach of contract suit against the municipality.
The court ultimately sided with the recycling company, finding that the breach of contract claims regarding the municipality’s actions were valid. The court ruled that the recycling company could continue to provide residents with recycling as per the initial agreement. Although some members of the local government have gone on the record that the recycler cannot continue to perform the duties as assigned until further negotiation, it would seem the courts have denigrated that interpretation.
Source: Roselle Park News, “ERS May Return As Recycler Due To Governing Body Breach Of Contract“, Saul Qersdyn, June 29, 2014