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Trucking company faces breach of contract claim

| Aug 15, 2019 | Contract Disputes |

The sudden termination of a business arrangement could have a significant impact on the future of each party involved. In some cases, there could also be provisions within the terms of the previous arrangement that might prevent a company in Florida from seeking a similar arrangement with another party. PKE Western Truck Leasing has recently filed a lawsuit against Rich Transport, LLC, accusing the company of breach of contract.

According to reports, the incident began when PKE entered into an arrangement in which it agreed to provide tractor capacity and dedicated carriers to Rich. In exchange, the other party reportedly agreed to pay PKE more than $80,000 each month, along with weekly mileage fees. However, eight months into the arrangement, Rich reportedly sent a letter informing PKE that it had decided to end the arrangement.

According to the letter, Rich accused the other company of failing to provide the necessary capacity agreed upon in the contract. PKE reportedly denies any wrongdoing and asserts that a provision within the contract has caused it to suffer substantial financial harm by preventing its employees from seeking work with another party. The company has filed a breach of contract lawsuit against Rich and is reportedly seeking more than $37 million in restitution.

There are a multitude of scenarios in which contract disputes could arise and the outcome of these disputes can affect all parties involved in various ways. Those who feel that a breach of contract has occurred could choose to consult with an attorney for guidance in understanding each of their available options for legal recourse. An attorney in Florida can work with a client in forming a strategy to protect his or her legal rights and business interests through the proper outlets.