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University may file breach of contract suit in hospital dispute

Nearly every day, businesses across Georgia are faced with the question of whether to file a lawsuit against another party who does not seem to be fulfilling their part of a contract. By the time companies reach this point, they have usually attempted to rectify the situation without legal action. In some cases, those efforts are successful. When they are not, the best course of action may be to file a breach of contract suit.

Whether to file formal legal action is the decision currently facing the president of a university in a nearby state. The Board of Supervisors recently gave him the authorization to take whatever steps he deems necessary in order to resolve the issue between the university and its hospital manager. Approximately two years ago, a private company took over the management of two of the university's hospitals.

Relations between Louisiana State University and Biomedical Research Foundation of Northwest Louisiana (BRF) have been strained ever since. How LSU believes BRF breached the contract was not reported. However, concerns regarding how BRF is running the hospitals have been publicly expressed up to this point. At one point, LSU was demanding millions of dollars in payments to be turned over to it, and BRF accused the university of not properly managing its clinics.

When a contract dispute arises, both sides may have complaints against each other. Most Georgia companies would not risk a breach of contract suit without believing that their actions are justified. However, several legal and business issues need to be considered before taking any action that could potentially harm the business. A review of the contract and the current circumstances is most likely in order to determine what course of action will best serve the business. If litigation is warranted, a business and commercial law attorney can help in navigating the court system and fighting for a just  result.

Source: washingtontimes.com, "Decision on breach of contract lawsuit rests with Alexander", Melinda Deslatte, June 19, 2015

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