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In Contract Disputes, is Negligence a Defense to a Breach of Contract?

This past week, the Louisiana Supreme Court issued an opinion in Lamar Contractors, Inc. v. Kacco, Inc., No. 2015-C-1430 (La. 05/03/2016), 2016 WL 2337957, — So.3d —, which bears on the issue of the extent to which a party liable for breach of contract may cite the other non-breaching party’s negligence to reduce its liability.

In Lamar Contractors, the Louisiana Supreme Court held that in circumstances in which there is no evidence that the non-breaching party violated an obligation owed under the contract, there is no basis to reduce the non-breaching party’s recovery through comparative fault principles.

If you are the victim of a breach of contract, it is critical that you document compliance with all contractual obligations to ensure that your recovery is not reduced, and seek legal advice when warranted. 

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