How Contract Breaches Are Handled in Civil Court
Contracts form the backbone of countless business dealings and personal agreements. However, when one party fails to hold up their end of the deal, it can often lead to significant financial and legal consequences. In these situations, civil court becomes the venue where disputes are addressed, responsibilities are assessed, and remedies are provided.
At Garcia & Ramires, PLLC, based in Arlington, Texas, we assist individuals and businesses across Fort Worth, Dallas, Tarrant, Ellis, Johnson, Rockwall, Collin, and Denton County who are dealing with contract disputes.
Our attorneys will explain how a breach of contract is addressed through civil litigation and what parties can expect when they enter the courtroom. Contact our firm today to learn more or schedule a consultation.
What Constitutes a Breach of Contract?
A breach of contract happens when one party fails to perform a duty or promise outlined in the agreement. Contracts can be written or oral, though written contracts typically hold more weight in court due to the clarity they provide. Contract breaches can take several forms, including but not limited to the following:
Material breach: This is a significant failure that affects the core of the agreement. For example, if a builder uses the wrong materials in constructing a home, that may be considered a material breach.
Minor (or partial) breach: This involves a small deviation from the contract that doesn’t fundamentally alter the outcome. The non-breaching party might still be obligated to perform its duties.
Anticipatory Breach: Occurs when one party communicates in advance that they won't fulfill their contractual obligations.
Actual Breach: This is when a party simply doesn’t perform as promised, either partially or entirely.
For contract breaches to be actionable in civil court, the contract must be valid, the breach must be proven, and damages must be demonstrated.
How to File a Lawsuit for Breach of Contract
If informal resolution efforts fail, the next step would typically be filing a lawsuit in civil court. In Texas, most contract disputes fall under the jurisdiction of district courts or county courts at law, depending on the value of the claim. To start a case, you will need to file a petition that outlines the following aspects:
The existence of a valid contract.
The specific terms of the agreement.
How the defendant breached the contract.
The damages suffered as a result of the breach.
Once the breach of contract has been filed and validated by the court, the court will issue a citation, which must be served on the defendant. This notifies them of the lawsuit and provides them with an opportunity to respond. Once both parties have entered the case, it proceeds to the discovery phase.
The Discovery Phase
Discovery is the pre-trial process where both sides exchange information relevant to the case. This process helps uncover facts, gather evidence, and identify witnesses. Some common discovery tools include the following.
Interrogatories: Written questions that must be answered under oath.
Requests for production: Demands for documents such as contracts, emails, or invoices.
Depositions: In-person questioning of witnesses or parties, recorded by a court reporter.
Requests for admissions: Statements the opposing party must admit or deny.
This stage is critical. Strong evidence gathered here often leads to favorable settlements or strengthens a party’s position at trial. Once discovery is complete, the court may encourage or require mediation to attempt to resolve the dispute without going to trial.
Trial Proceedings in Breach of Contract Cases
If no settlement is reached, the case will proceed to trial. Contract trials can be decided by a judge (bench trial) or a jury, depending on the parties’ preferences and the challenging nature of the issues. During the trial, both sides present their evidence and arguments. The plaintiff must prove several elements, including:
That a valid contract existed.
That the plaintiff fulfilled their contractual obligations.
That the defendant failed to perform as agreed.
That the plaintiff suffered damages as a result.
The defendant can counter by arguing that:
No valid contract existed.
The plaintiff failed to perform their obligations first.
The breach was justified due to external conditions.
The contract was ambiguous or unenforceable.
After hearing all the evidence, the court will issue a ruling. If the plaintiff prevails, the court will award a remedy.
Legal Remedies Available for Breach of Contract
When a party wins a breach of contract case, civil courts can award different types of remedies depending on the circumstances. The goal is to place the non-breaching party in the position they would have been in had the contract been performed correctly. Some common types of remedies include the following.
Compensatory damages: Financial compensation for losses directly caused by the breach. This includes lost profits, costs incurred, or other measurable financial harm.
Consequential damages: Damages that extend beyond the contract itself, such as lost business opportunities resulting from the breach. These must be foreseeable at the time the contract was formed.
Liquidated damages: Pre-agreed damages written into the contract. The court will enforce these if they're considered reasonable.
Specific performance: The court can order the breaching party to fulfill their obligations under the contract. This is usually reserved for unique goods or real estate.
Rescission: The contract is canceled, and both parties are returned to their pre-contract positions.
Reformation: The court alters the contract to reflect the parties’ true intentions if a mistake or misrepresentation occurred.
Common Defenses for Breaches of Contract
In a breach of contract, there are several legal defenses you may be able to employ to avoid liability. Even if a breach occurred, these defenses can often help reduce or eliminate damages. Some common defenses include:
Lack of capacity: One party lacked the legal capacity to enter into the contract (e.g., due to age or mental incapacity).
Duress or coercion: The contract was signed under pressure or threat.
Fraud or misrepresentation: False information induced one party to enter the agreement.
Impossibility of performance: Circumstances beyond the party’s control made performance impossible.
Statute of limitations: In Texas, most breach of contract claims must be filed within four years. If too much time has passed, the claim may be barred.
Mutual mistake: Both parties misunderstood a key element of the contract.
Successfully proving one of these defenses can drastically affect the case’s outcome. If you are facing a breach of contract case, reach out to an experienced civil litigation attorney today.
Reach Out to an Experienced Civil Litigation Attorney Today
In Texas, civil courts offer a structured process to address contract breaches and resolve disputes when informal efforts fail. From filing the initial petition to presenting evidence at trial, each step determines whether a party will receive compensation or be held responsible for failing to meet its obligations.
At Garcia & Ramires, PLLC, we guide our clients through each phase of the process, helping them protect their rights and pursue fair outcomes when agreements fall apart. With offices in Arlington, Fort Worth, and Dallas, Texas, we serve clients in Tarrant, Ellis, Johnson, Rockwall, Collin, and Denton County.
If you're facing a contract dispute and need clarity on your legal options, civil court may provide the resolution you’re looking for. Knowing how contract breaches are handled is the first step toward taking informed action. Contact our firm today to schedule a consultation.
