It’s Business, And It’s Personal

Lack of payment may lead to business litigation in North Carolina

On Behalf of | Aug 15, 2014 | Business Contracts & Disputes |

When two companies enter into an agreement for services, it is likely intended that one of the parties will be paid for the services rendered. However, if a company does not feel that they receive the proper compensation for their services, a dispute could arise. In such a case, a company may decide to pursue business litigation.

North Carolina business owners may be interested in a case that took place in another state regarding similar circumstances. A construction company entered into litigation with a hospital after the company claimed that the hospital failed to pay for services. The company apparently agreed to construct a five-story building, but after not receiving payment, work on the structure ceased and a lawsuit began.

It was recently reported that the two parties came to a settlement regarding the situation. The hospital is to pay the company $7.9 million dollars, pending a potential donation. As a result of the settlement, the construction company is no longer pursuing their case, and they will no longer be working on the project. Representation for the hospital stated that it was “a relief” to have the matter settled.

When a company creates a deal to perform services for payment or other compensation, it can be a considerable setback to not receive that proper payment. Therefore, as this case shows, North Carolina companies that have not been compensated for services rendered may wish to consider their own legal options for pursuing business litigation. Information on how to file a claim in the state may help company owners determine whether legal action could be right for their situation.

Source:, “Tulare hospital settles dispute with Fresno construction firm“, Lewis Griswold, Aug. 14, 2014