When a business fulfills its contractual obligations—delivering goods, completing services, or meeting deadlines—payment is rightfully expected. Yet, for many in South Florida, nonpayment remains a constant issue. A client delays, a partner evades, or a vendor fails to settle up, leaving your business shortchanged. What recourse exists when a contract is breached? This article outlines the enforcement process under Florida law, offering a clear path forward for those seeking to recover what they’re owed.
Initial Step: Issuing a Demand Letter
The process often begins with a demand letter—a formal notice asserting the debt. It specifies the amount due, ties it to the contract’s terms (such as a payment deadline), and sets a firm date for compliance. In Florida, if the agreement provides, interest or attorney’s fees may also be demanded. Frequently, this step alone prompts payment, averting further escalation.
Building the Case: Assembling Evidence
What happens if the party ignores the demand letter? The next task is to gather supporting documentation, such as the contract, invoices, emails, and other records establishing the agreement and its violation. This evidence forms the backbone of any claim, demonstrating that obligations were met on one side and ignored on the other. Thorough preparation at this stage strengthens your position significantly.
Legal Action: Pursuing a Lawsuit
Filing a breach of contract lawsuit may be necessary with recalcitrant parties. Florida courts enforce written contracts by their express terms, provided that those terms are unambiguous. Claims can be brought in a county court for smaller sums (under $50,000) or a circuit court for larger disputes (more than $50,000). The process requires proving the valid contract’s existence, the breach of the contract, and the resulting financial loss (damages). On a successful claim, a court may award damages and, where applicable, attorneys’ fees or interest.
Securing Payment: Enforcing a Judgment
A court victory is a milestone, but payment must still be collected. With a judgment, options like garnishment of wages or bank accounts become available, though Florida law shields certain personal assets. For businesses with liquid resources, however, recovery is feasible. This final step demands diligence to convert a legal win into actual funds.
Do Not Delay
Timing is critical in enforcement efforts. Florida’s statute of limitations allows five years to file suit on a written contract (Fla. Stat. § 95.11). Justice delayed is justice denied. Evidence may degrade—documents disappear, memories fade—and parties may dispense assets. Prompt action preserves both the claim’s viability and the likelihood of recovery.
Conclusion
For businesses facing nonpayment, a structured process exists to enforce contracts: issuing a demand, compiling evidence, pursuing litigation if needed, and collecting on a judgment. Those navigating such disputes may find value in consulting an attorney familiar with Florida’s legal system.