Legal Question in Business Law in California

I have a dispute with a company that contracted me for consulting services and terminated the contract without cause. There two actions they are taking; (1) withholding my last four invoices covering services prior to the termination, as the contract permits, with no dispute of the invoices for 3 months now, and (2) providing no Notice of Dispute for the termination which is a required step to enter required arbitration, basically obstructing due process in settling the dispute. My question is, is breach of contract only a tort or are there instances where there may be criminal liability for the breach?

Thank you.


Asked on 4/02/14, 10:57 am

4 Answers from Attorneys

You have to go to some place like Abu Dhabi or Thailand to find a jurisdiction that makes breach of contract a crime. Breach of contract, except in VERY exceptional circumstances is not even a tort.

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Answered on 4/02/14, 11:15 am
Carl Starrett Law Offices of Carl H. Starrett II

Breach of contract is not a tort, but you do have a civil remedy in that you can file a lawsuit to collect the money you believe that you are owed. Unless the contract is explicitly illegal like someone contracting without a license, the police will be very reluctant to get involved at all.

The term tort is a broad term for most types of civil claims that do not involve a contract. If someone negligently hits you with their car, that is a tort. Defamation is a tort and so is punching someone in the face.

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Answered on 4/02/14, 12:48 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Even in the good ol' United States, it may be possible for someone to do an act or omission that simultaneously breaches a contract and is chargeable as a crime. However, (a) the prosecution of crimes is left to the district attorney, not private parties, and (b) what you describe has neither the hallmarks of a crime nor a tort.

I recommend that you consult with a local business-law attorney as to your potential remedies, including whether you should serve a Notice of Dispute on the client, which apparently is what you should do to kick off an arbitration.

Also, what are your contacts at the client company telling you? Are they dissatisfied with your services, or your billing procedures? Are they having a cash crisis? Knowing more about their reasons for nonpayment would be useful, going forward.

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Answered on 4/02/14, 12:48 pm
Anthony Roach Law Office of Anthony A. Roach

Breach of contract is a cause of action, and is not a tort or a crime in and of itself. You would need other elements to prove fraud, which is a tort and can be a crime.

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Answered on 4/03/14, 8:29 am


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