Breach of Contract Disputes
A claim for breach of contract in Pennsylvania requires (1) the existence of an enforceable contract, (2) the occurrence of a material (versus minor) breach, (3) causation of some harm, and (4) proof of actual damages. Our 7 lawyer firm handles breach of contract disputes throughout Western Pennsylvania. Call or email today! 412.342.0992
We can tell you fairly quickly whether a valid agreement exists and what damages can be recovered. Each Pittsburgh lawyer at our firm advances and defends such claims in state or federal court.
Breach of Contract: Different Agreements
The consequences for breach of contract vary depending on the agreement. For example, a court will enforce a "non-compete agreement" much differently than it will a claim for non-payment of a loan. The same goes for commercial disputes (between businesses) versus consumer transactions, where consumer protection law will often supersede contract law.
The Breach of Contract Disputes We Litigate
We handle all kinds of contractual disputes. Each Pittsburgh attorney in our firm focuses on both plaintiff and defense side representation, for:
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- Construction and Renovation of Property (for more)
- Breach of a non-compete clauses (for more)
- Credit Card Debt Disputes (for more)
- Bad Faith Insurance Practices (for more)
- Consumer Protection Law (for more)
- Commercial litigation (for more)
- Home Inspection Contracts (for more)
- Claims where the Government is Party to a Contract (Board of Claims)
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Breach of Agreements that Are Oral, Written or Have Unique Facts
Our Pennsylvania lawyers litigate claims in state in federal court to recover money damages for breach of any oral or written agreement. We charge a very reasonable flat fee for a block of time to review your claims and defense. This way, you obtain the peace of mind to know right upfront whether a claim or defense will be worth pursuing.
For example: what if the agreement is partly oral, partly written? Or, what if there was some performance but not the performance expected? Likewise, what if the breach of the agreement is clear, but what damages are recoverable?
Who pays the winner's attorney fees?
Call Any Time & See FAQs Below
A Pittsburgh attorney with our firm will chat with you over the phone about any contractual dispute. We put your mind at ease. We charge a flat fee of only $200 to review your case and speak with you over the phone for up to an hour.
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Frequently Asked Questions
What Essential Elements Are Needed for a Binding Contract in PA?
Contract law professors teach students that a contract requires a "meeting of the minds," through an "offer" and "acceptance." That is to say, one party makes an offer, which is "accepted" through some objective manifestation of intent.
Sometimes, however, the PA's appellate courts don't look for an "offer" or "acceptance."
Pennsylvania's Superior Court has opined: "[b]efore a contract can be found, all of the essential elements of the contract must exist. Therefore, in determining whether an agreement is enforceable, we must examine whether both parties have manifested an intent to be bound by the terms of the agreement, whether the terms are sufficiently definite, and whether consideration existed. If all three of these elements exist, the agreement shall be considered valid and binding. Burkett v. Allstate Insurance Co., 368 Pa.Super. 600, 534 A.2d 819 (1987), vacated on other grounds, 520 Pa. 94, 552 A.2d 1036 (1988)," see Johnston the Florist v. TEDCO CONST., 657 A.2d 511, 441 Pa. Superior Ct. 281, 441 Pa. Super. 281 (Super. Ct. 1995). To learn more about how an "offer" can be accepted, or what constitutes sufficient "consideration," click here or simply contact a Pittsburgh lawyer at our firm!
What Must the Plaintiff Assert in a Claim for Breach of an Agreement in PA?
In Pennsylvania, "[a] cause of action for breach of contract must be established by pleading (1) the existence of a contract, including its essential terms, (2) a breach of a duty imposed by the contract and (3) resultant damages. See Gen. State Auth. v. Coleman Cable & Wire Co., 27 Pa.Cmwlth. 385, 365 A.2d 1347, 1349 (1976). While not every term of a contract must be stated in complete detail, every element must be specifically pleaded. See Snaith v. Snaith, 282 Pa.Super. 450, 422 A.2d 1379, 1382 (1980)," See CoreStates Bank, NA v. Cutillo, 723 A.2d 1053 (Pa. Super. Ct. 1999).
What Type of Contracts Must be In Writing in Pennsylvania?
For the vast majority of agreements in Pennsylvania, there is no requirement for a "writing." However, a few exceptions exist: contracts for the sale of goods over $500, real estate leases greater than three years, the sale of interests in property, and contracts for home improvement pursuant to Pennsylvania's Home Improvement and Consumer Protection Law. Click here to learn more about what constitutes true "home improvement" or call a Pittsburgh attorney in our group.
Must the Party Suing for Breach of Contract Attach the Areement to the Lawsuit?
It depends. For cases in state court (but not small claims), Pennsylvania Rule of Civil Procedure 1019 requires the Plaintiff to (a) plead whether the contract was written or oral and (b) attach the written contract, or say why the writing is unavailable. Click here for more.
Note, however, the rules are less formal for (a) claims involving disputes of $3,000 or less in state / County court (the Court of Common Plea, (b) claims in small claims court even up to $12,000, and (c) all cases in federal court, including multi-million dollar cases. For each of these, the Plaintiff need not attach the contract to the lawsuit or explain why the contract is unavailable.
What is the Statute of Limitations For Breach of Contract in Pennsylvania?
According to Title 42, § 5525 from our legislature in Pennsylvania, the statute of limitations for breach of contract is four (4) years. This applies to both written and oral contracts. However, Pennsylvania has one very odd -- and narrow -- exception, where the statute of limitations is twenty years! Harkening back to merry ol' England, an instrument "under seal" (stamped in wax) afforded a party to said agreement a full twenty years to enforce it, including such documents as a mortgage. Pennsylvania is one of only a few states, such as Georgia, which still follows this antiquated rule:
It is well-established that, although a vestige of the past, the contract under seal may still operate to lengthen the statute of limitation. ... [T]his court has held, in accord with many cases written by our Supreme Court, that when a party signs a contract which contains a pre-printed word "SEAL," that party has presumptively signed a contract under seal. Klein v. Reid, 282 Pa.Super. 332, 422 A.2d 1143 (1980).
When Does The Statute of Limitations For Breach of Contract Start to Run?
The four year statute of limitations for breach of contract in Pennsylvania does not begin to run until the aggrieved party has reason to believe he's been harmed by the breach. In other words, the statute of limitations is "tolled" (or extended) until the injured party -- using due diligence -- first learns of the harm. Citing to Pocono International Raceway, Inc. v. Pocono Produce, Inc., 503 Pa. 80, 84, 468 A.2d 468, 471 (1983),, Pennsylvania's Supreme Court has opined:
"Pursuant to application of the discovery rule, the point at which the complaining party should reasonably be aware that he has suffered an injury is a factual issue "best determined by the collective judgment, wisdom and experience of jurors." White v. Owens-Corning Fiberglas Corp., 447 Pa.Super. 5, 22, 668 A.2d 136, 144 (1995) (quoting Petri v. Smith, 307 Pa.Super. 261, 271-72, 453 A.2d 342, 347 (1982)., appeal denied, White v. Owen-Corning, 546 Pa. 648, 683 A.2d 885 (1996).
What Damages Can Be Recovered For Breach of an Agreement?
The purpose of contract law is to give a party the benefit he would have received, had the contract been carried out as intended. So for example, if you agreed to pay a contractor to update and replace your bathroom, for $15,000, that's all it should cost to have the work done correctly. If the contractor either doesn't finish the job, or finishes the job but causes damages (called "consequential damage"), you're entitled to the difference between $15,000 and the extra costs you incurred to finish the job and fix any damages caused by the contractor to your property.
The courts enforcing a contract give each party the "benefit of her bargain." For example, let's say you have a contract to purchase a new car from Dealer #1. The purchase price is $50,000, which is $5,000 below the sticker price of $55,000, only, Dealer #1 sells the car -- the last one its kind at that dealership -- to someone else. So, you shop around; the best price you can find is $55,000 from another dealer. Thus, the benefit of your bargain with Dealer #1 was $5,000, which is the amount you may seek from Dealer #1.
Can I File a Suit For Breach of Contract In My Local County?
No, not necessarily.
Here, it's very important to read your contract -- or simply ask one of our lawyers to assist, cost-effectively. You see, the parties to a contract can agree -- in the contract -- that disputes can only be brought in certain places. This is called a "forum selection clause" or "choice of forum clause."
So, for example, if you live in Pittsburgh -- but your contract requires you to sue the opposing party in New York, alone (since he lives there) -- you may not file suit here in Allegheny County. In fact, by doing so, you could be in breach of the agreement. As a result, you could also be forced to pay the opposing party's attorney fees, for defending your misfiled action in PA, if the contract allows for it. Thus, in this example, you may need to retain local counsel in the state where your contract requires suit to be filed. Click here for more.
Can You Recover Your Attorney Fees in a Claim for Breach of Contract in PA?
The answer is yes, but only in two instances.
Attorneys Fee Clause. The first instance is where the contract expressly allows one party to recover his attorney fees. The contract must expressly provide for it, however. Otherwise, the general rule in Pennsylvania is that each side pays his own attorney fees.
Consumer Protection Law. The other exception is where the parties' dealings are covered by consumer protection law or another statute expressly providing for a recovery for attorney fees. For example, Pennsylvania's Home Improvement and Consumer Protection Act (click here) or the Unfair Trade Practices and Consumer Protection Law. Note, however, that neither of these statutes pertain to commercial transactions, such as purchases primarily for your business or commercial gain.
Is There Punitive Damages (Or Penalty Fees) For Breach of Contract in PA?
The answer is no.
In civil cases, our appellate courts note that a claim for breach of contract is to simply give a person the benefit of his bargain. “Punishment is inconsistent with traditional contract theories,” DiGregorio v. Keystone Health Plan East, 840 A. 2d 361 (Pa.Super. 2003), citing to Johnson v. Hyundai Motor America, 698 A.2d 631, 639 (Pa.Super.1997), which held:
[I]n contract actions, damages are awarded to compensate an injured party for the loss suffered due to the breach, the purpose of punitive damages is to punish outrageous and egregious conduct done in a reckless disregard of another's rights; it serves a deterrence as well as a punishment function. Johnson, Id. at 639.
Even in the criminal courts, Pennsylvania has purported to have done away with "debtor's prison," per 42 Pa. C.S. § 5108:
(a) Constitutional restriction. The person of a debtor, where there is not strong presumption of fraud, shall not be continued in prison after delivering up his estate for the benefit of his creditors in such manner as shall be provided or prescribed by law.
(b) Statutory restriction. Except in an action for fines and penalties, or as punishment for contempt, or to prevent departure from the Commonwealth, a defendant may not be arrested in any civil matter.
Thus, we have a policy in PA against "punishment" for non-payment of debts. Thus, a clause in contract for a "penalty" -- sounding punitive -- should not be enforceable, unless the amount is a reasonable approximation of damages to the non-breaching party. So a "penalty fee" of $50 -- for you being ten minutes late on your rent payment -- is not likely a fair approximation of the "harm" resulting from your breach.
Is There Punishment For Violation of Consumer Protection Law?
Yes. The penalty for violating Pennsylvania's Home Improvement and Consumer Protection Law or the Unfair Trade Practices and Consumer Protection Law is treble (or triple) damages plus attorney fees.
Can a Court Re-Write a Contract To Make It "Fair"?
No, but with one exception.
You see, our modern economy is premised on the freedom to enter into contracts and the expectation that a court will award us the "benefit of our bargain." Otherwise, there would be no incentive to take risks or make deals, if we could expect a court to save the "loser" from a bad deal he entered freely. Thus, contract law -- and the enforcement of an agreement -- has nothing to do with "fairness." It's mainly a set of rules so parties can know how much money he can expect to recover, if the other party breaches the agreement.
But there are two exceptions.
- A request For an Injunction. A court can -- and often will -- re-write a contract if the party enforcing the contract is asking the court to physically restrain someone from doing something via an injunction. Think of an employment contract containing a non-compete provision, where an employer is asking a court for an injunction (not just a money judgment) to physically restrain a former employee from working for a competitor. Here, the judge may rewrite the contract to impose fair and reasonable restriction on the covenant not to compete. Click here for more. The same applies with a non-disclosure agreement or NDA, where a party is asking a court to enjoin -- or restrain -- a party to restrain another from speaking about a certain topic. The court can impose a fair and reasonable restrictions on the NDA.
- Consumer Protection. This only in contracts primarily for a personal or residential (not commercial) use. Here, consumer protection law will supersede the terms of any agreement with a consumer. For example, consumer protection law in PA may void certain clauses or give consumers a period of time to rescind or cancel certain contracts. Click here for more.
What Happens if the Contract is Not Enforceable or No Valid Contract Exists?
Let's say your contract lacks "consideration" (something of value for the parties bargained for exchange) or it was an agreement that needed to be in writing, but wasn't, then what? There are two "quasi-contract" theories that may apply. The first is "unjust enrichment." This is where you had no contract, but you (1) did something that benefited another, and (2) it would be unfair for that person not to pay you. For example, let's say you accidentally build a shed on your neighbor's property, thinking it was yours. This might "enrich" your neighbor. Click here for more about unjust enrichment.
The other theory is called promissory estoppel. This is where (1) you reasonably relied on the promise of another, to your detriment and (2) your reliance was foreseeable. For example, let's say you live in New York. Then, a prospective employer in California offers you at-will employment -- if you move to California. "At-will" means either party may terminate the agreement at any time. However, if your prospective employer terminates your position immediately after you move to California, you may have a claim for your "reliance damages."
What Are the Defenses to Breach of Contract in Pennsylvania?
The party seeking to enforce a contract has the burden to prove -- by a preponderance of evidence (more likely than not ) -- the elements of a claim for breach of contract. These are (1) a contract existed, (2) a breach occurred, and (3) damages resulted. In fact, the plaintiff must prove that the defendant's breach was a material one and not something minor.
Notice all the things that the Plaintiff must prove, before any defense is offered. In fact, the Defendant need not "prove" anything, unless he asserts one of the affirmative defenses to a contract, such as:
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- the statute of limitations (showing the Plaintiff knew that the breach had occurred over for years ago),
- an accord and satisfaction (new agreement showing the parties resolved their dispute),
- the contract is against public policy (involving something illegal, such as the sale of drugs, prostitution, or other activity against the public policy of Pennsylvania,
- impossibility or impracticality (proving that new circumstances arose, making it impossible or impractical for the defendant to have performed), or
- fraud in the inducement of the contract (falsely representing the facts to induce the opposing party to agree).
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Does PA Have an Absolute Right to a Jury Trial?
No.
There exists no absolute right to trial by jury in Pennsylvania for a breach of contract claim. In actuality, neither the federal Constitution nor PA's constitution acknowledge such a right. However, a party seeking money damages (not an injunction) for breach of contract will generally have the right to trial by jury -- in most instances, if timely requested and not waived. Click here for more.
Can I Waive -- Via Contract -- My Rights to Sue in Court and/or Trial by Jury?
Yes.
This is done via an "arbitration clause" or agreement for alternate dispute resolution (ADR). These are enforceable. Click here for more. So let's say you file suit in court for another party's breach of the agreement, but the contract also contains language as follows: "The parties agree to resolve all disputes in binding AAA arbitration." You might not want to file with AAA arbitration, for example (due to the hefty costs), but you might be out of luck. A court will often grant the Defendant's motion to compel arbitration, despite the expense to the parties. But note, the PA superior court recently struck down a ride-share (or "rideshare") arbitration clause by Uber (likely the same for Lyft). Click here for more. Contact one of our contract dispute attorneys about how to best approach this situation.
Let's Get Started!
Contact a Pittsburgh Lawyer about any disputed agreement today!
412.342.0992
Our Pittsburgh based law firm handles civil litigation claims and defenses in state and federal court. Find out whether you can make a claim for money relative to your contract, or whether there are defenses to the agreement. Our Pittsburgh breach of agreement attorneys litigate in Allegheny, Beaver, Butler, Cambria, Westmoreland, Washington and Greene Counties. Call today for an initial consultation.
NEWS AND UPDATES IN THE BREACH OF AGREEMENT LAW:
- October 11, 2022: Pac-12 Networks sue Dish, claiming breach of contract.
- November 10, 2022: Elton Jantjies sued for breach of contract, another story here: Pittsburgh beach of contract suit.
- December 21, 2022, Rolling Stone: DeBaby found not liable in $6,000,000 breach of agreement suit
