Detroit-area housing co-ops have an obligation to maintain shared amenities, including outdoor spaces. Depending on the structure of co-op buildings, the co-op may have responsibility for lawn maintenance, as well as for snow removal during the colder months.
Contracting with local businesses for lawn maintenance, snow removal and autumn leaf removal can give back to the community in which a co-op operates. Unfortunately, some small businesses and self-employed professionals may not follow through with their obligations.
The illness of an owner-operator or other challenges that could result in the co-op going weeks between mowings, which could lead to municipal enforcement actions and complaints from property owners. Delays in snow and ice removal could lead to injuries and lawsuits. If a service provider has failed to uphold a contract with a housing co-op, there may be several remedies available through legal action in civil court.
1. Contract rescission
A judge has the authority to terminate contractual obligations in response to a breach by one party. The failure to provide services as agreed upon with the co-op could be justification for the co-op to ask the courts to terminate the contract, thereby preventing the service provider from making claims regarding unpaid invoices. Contract rescission creates an opportunity to hire a different company to provide those services.
2. A request for damages
In scenarios where municipal authorities became involved, there could be fees or fines to address. On the other hand, the co-op may have incurred substantial expense hiring a service provider for immediate completion of the unperformed work or addressing winter slip-and-fall injuries.
A breach of contract lawsuit can result in a judge awarding damages based on the actual economic impact of the contractual default of one party. Provided that the co-op incurred costs due to enforcement actions, injuries or the need to hire a different professional to provide the services outlined in the contract, a judge may agree to award the co-op damages for the impact of the service provider’s nonperformance.
3. Contract enforcement
Judges can issue injunctions or orders of specific performance that hold service providers accountable for failing to fulfill contractual obligations. A court order may be more compelling than a contract and may convince a service provider to perform the work previously left incomplete.
Working with an attorney familiar with contract law and housing co-op regulations can help prevent contract breaches from snowballing into costly citations or reputation damage for a community. If the service provider doesn’t uphold their contract, legal action may be necessary to appropriately resolve the situation.