When a Contracting Party Does Not Perform
A breached contract produces a measurable loss for the party that performed. We represent businesses across Alabama, Georgia, and South Carolina in breach of contract litigation, demand enforcement, and negotiated resolutions.
Serving Alabama, Georgia & South Carolina · Commercial litigation and dispute counsel
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Three States
Alabama, Georgia & South Carolina
Contract deadlines and forums differ across the three states we serve. South Carolina gives half the time Alabama and Georgia do. Choose the state where your dispute sits for the law that applies to your company.
A commercial contract matters most at the point it has to be enforced. In Alabama and Georgia, written contract claims must be filed within six years. South Carolina allows three. Those periods are outer limits rather than targets, and evidence tends to degrade well before they run. Our contract dispute lawyers serve contractors, industrial service providers, professional services firms, and commercial businesses throughout Jefferson County, Shelby County, and the greater Birmingham-Hoover metro.
Contracts govern nearly every commercial relationship. When another party fails to perform, misrepresents material facts, or declines to honor its obligations, the loss falls on the business that performed. Our business contract dispute attorneys represent contractors, industrial service providers, professional services firms, and other businesses across Alabama, Georgia, and South Carolina in breach of contract litigation. We work to preserve the record, document damages, and pursue the remedies the contract and the governing law make available - including specific performance, compensatory damages, and attorneys' fees where permitted. The subject matter varies: a construction subcontract, a service agreement, a vendor relationship, a commercial lease. The method does not.
Alabama's construction and industrial services sectors operate on complex, multi-party contracts involving general contractors, subcontractors, suppliers, owners, and sureties. A single breach - an unpaid change order, a scope dispute, a termination for convenience - can cascade through an entire project. We understand how these contracts are structured, where disputes arise, and how Alabama courts handle them.
A contract dispute can quietly drain a profitable business. When a customer stops paying, a vendor fails to deliver, or a partner reinterprets the deal you thought you struck, the financial damage is rarely limited to the dollar amount in question. It ties up cash flow, distracts your team, and threatens relationships you depend on. Understanding how your state treats contract disputes before you are in one puts you in a far stronger position when a disagreement does arise.
This guide explains, in plain language, how contract disputes actually work in Alabama, Georgia, and South Carolina: what counts as a breach, what you can recover, how long you have to act, and what practical steps protect your position. It is written for the business owner who wants to understand the landscape, not for lawyers. If after reading it you would like to talk through your specific situation, that conversation is free.
Not every disappointment is a breach, and not every breach is worth pursuing. In all three states we serve, a breach of contract claim requires the same four things: a valid contract, your own performance (or a valid excuse for non-performance), the other party's failure to perform, and damages that resulted from that failure. The first and last elements are where most disputes are won or lost.
Courts in Alabama, Georgia, and South Carolina all distinguish between a 'material' breach, which goes to the heart of the bargain and excuses your further performance, and a 'minor' breach, which entitles you to damages but still requires you to hold up your end. Knowing which category you are in determines whether you can walk away, withhold payment, or must continue performing while you pursue a claim. Getting this wrong is one of the most common and expensive mistakes a business makes.
The default remedy in every state is 'compensatory damages,' meaning money intended to put you in the position you would have occupied had the contract been performed. That includes the direct value of what you were promised plus, in many cases, lost profits and consequential damages that were reasonably foreseeable when the contract was formed.
Some contracts shift attorneys' fees to the losing party, and courts in all three states will generally enforce those provisions. Punitive damages are available only where the breach is accompanied by an independent tort such as fraud; a breach of contract by itself, even one made in bad faith, does not support them. In limited cases, a court can order 'specific performance,' compelling the other side to actually do what they promised, though this is reserved for situations where money alone cannot make you whole.
Alabama and Georgia generally give you six years to file suit on an ordinary written contract (Ala. Code Section 6-2-34; O.C.G.A. Section 9-3-24), while South Carolina allows only three (S.C. Code Section 15-3-530). Those headline numbers hide important exceptions: contracts for the sale of goods are governed by the Uniform Commercial Code with its own limit, oral contracts and open accounts can run on different clocks, and companion claims like fraud can be shorter still. Because the right deadline depends on the type of agreement and on which state's law governs, you should never assume the longest window applies to your situation.
Even when you do have years to act, the practical reality is different. Witnesses move on, emails get deleted, and the longer you wait the easier it is for the other side to argue you accepted the situation.
A demand that arrives promptly, supported by organized documentation, is harder to set aside. A claim that surfaces years later invites the argument that the breach did not much matter at the time.
Gather the signed contract, all amendments, purchase orders, invoices, emails, and text messages. In all three states, the course of dealing between parties can matter as much as the written terms, so informal communications are often critical evidence.
Before sending an angry email or withholding performance, understand whether the breach is material. Acting on a wrong assumption can convert you from the injured party into the party in breach.
A clear, professional demand letter often resolves disputes without litigation and, if it does not, becomes valuable evidence of your good faith and the other side's refusal to cure.
Recoverable damages are broader than the unpaid invoice. Document lost profits, cover costs, and downstream consequences so nothing is left on the table.
A failure to perform that is significant enough to defeat the purpose of the contract, generally excusing the non-breaching party from further performance.
Losses that flow indirectly from a breach but were reasonably foreseeable, such as lost profits from a halted project.
A court order requiring a party to actually perform its contractual obligations, used when money damages are inadequate.
A pre-agreed dollar amount the parties set in the contract as the remedy for a particular breach, enforceable in all three states if it is a reasonable estimate and not a penalty.
Yes. Arbitration is a different forum, not a barrier. We handle commercial arbitration proceedings from demand through award, including AAA, JAMS, and ad hoc proceedings. Arbitration is often faster and more confidential than circuit court, though the appellate rights are narrower. That trade-off is worth discussing before the demand is filed.
Alabama and Georgia allow six years for written contract claims. South Carolina allows three. Those are the outer limits for filing, not a recommended schedule. Records are discarded, personnel leave, and the practical cost of proving the claim rises the longer it sits. An early review lets us identify the documents worth preserving and the notice provisions that may carry their own shorter deadlines.
We represent small and mid-size businesses in disputes with large corporations and their in-house legal departments. The size of the opposing party affects the resources on the other side of the case. It does not change how the claim is evaluated or how it is prepared.
Yes. Alabama recognizes oral contracts in many circumstances, though they are harder to prove. We evaluate the available evidence - emails, text messages, invoices, course of dealing, and witness testimony - to determine what the parties actually agreed to. The absence of a signed document raises the evidentiary burden. It does not by itself defeat the claim.
Construction projects generate complex disputes over payment, defective work, delays, and scope. We represent owners, contractors, and subcontractors across Alabama, Georgia, and South Carolina when projects go wrong.
Some commercial disputes are resolved in negotiation. Others are tried. We represent businesses across Alabama, Georgia, and South Carolina in commercial litigation from pre-suit demand through verdict and appeal.
Unpaid invoices and delinquent accounts tie up capital a business has already earned. We handle commercial debt collection and judgment enforcement for creditors across Alabama, Georgia, and South Carolina.