Supplier Accuses General Motors of Breach of Contract in New Lawsuit

Automotive giant General Motors (GM) is at the center of a new lawsuit brought by creditors for a supplier, Clark-Cutler-McDermott Co. (CCM), after the latter made claims of breach of contract, deceptive business practices and fraud.

According to the lawsuit, which was filed last month in Massachusetts, CCM has accused GM of scheming to protect its own interests, while executing a calculated plan to exploit CCM for its own capital gain. CCM previously produced parts for GM vehicles, including dash, floor and pillar insulators, and wheelhouse liners for GM products in North America. In July of this year, GM announced that it had identified other suppliers who could provide similar parts.

Court documents also reference internal GM emails, which CCM argues illustrate the automaker’s intention to exit the partnership, despite an earlier agreement to participate in good-faith negotiations to preserve the relationship.

CCM has also argued that GM’s actions were deceptive and unfair, and ultimately caused irreparable damage to the company and its creditors.

Breach of Contract

Contracts are legally binding documents where individual parties reach an agreement to do (or not do) something. An action may be considered to be a breach of contract if any one of those parties fails to honor the terms of the original agreement.

By failing to uphold their end of the bargain, the breaching party is denying other parties their contractual rights. When this occurs, the breaching party can be held responsible for compensation and other damages, as well as court-related fees.

The most important thing to remember about contracts is that they don’t necessarily have to be formally put into writing in order to be enforceable.

For example, a credit card transaction, or check written between parties, can be used to authenticate the existence of a contract or agreement. In some cases, even oral contracts may be considered valid and open to a lawsuit in the event of a breach.

However, the latter is typically reserved for parties that have a long-standing contractual relationship, like the relationship between vendors, suppliers or service providers.

If you or someone you know are dealing with a potential breach of contract situation, the best thing you can do is consult with a qualified attorney, who can evaluate the contract in question and determine what, if any, options are available for the recovery of damages.

Breach of Contract Attorneys in Oklahoma

That’s where the skilled business attorneys at Rick Dane Moore and Associates come in. Our legal team has many years of experience in handling contract disputes, from both a negotiation and litigation standpoint. Over the course of our firm’s history, we have handled a variety of contractual-based cases, including those complicated by fraud or by breaching a special relationship.

Our team of dedicated attorneys is incredibly knowledgeable when it comes to this area of law, and can provide the sound legal guidance you are looking for during this complicated and difficult time.

If you believe you have a breach of contract case, we encourage you to contact our law office today. To schedule a preliminary consultation to assess your situation, contact the business attorneys at Rick Dane Moore and Associates today at (405) 703-6552.