You’ve worked hard to negotiate a favorable contract and hold the other party accountable to its terms. But when breach occurs, you might have to take the matter to court to secure a judgment in your favor. Yet, even after obtaining a clear court order that requires the other party to pay you damages or that requires specific performance, the other party might balk at their obligations. This can upend your business finances, and it could set your operations behind by a considerable amount. So, what can you do in those circumstances to ensure that your best interests are protected?
Using a contempt hearing to protect your business interests
If the other party willfully violates a court order, then they’re in contempt of court. To get a contempt of court finding, you’ll have to file a motion for rule to show cause, where you ask the court to order the other party to appear before the judge and give “cause” for why they shouldn’t be held in contempt. In this motion, you have to be very specific about the order that’s been violated and how the other party has willfully done so.
If contempt is found, then the court can use its power to coerce the other party into compliance with the court’s order. This may include forcing them to pay a fine, especially if you’ve continued to suffer damages, or, in some instances, send the other party to jail. The latter is very rare in the business context, but the mere threat could be enough to scare the other party into compliance. Remember, too, that each instance of contempt may result in a fine, which could build up over time.
Use the legal system to your advantage
There are a lot of unexpected issues that can come up when dealing with business issues. You have to know how to navigate the legal landscape, though, otherwise you could be taken advantage of, and your business can suffer as a result. That’s why it’s a good idea to discuss your business litigation issues with professionals as soon as possible so that you can develop a sound legal strategy that protects your interests.