MIKE
I agree with you, Dane Imhoff.
So let's assume that we can recover some damages. Dane Imhoff, what types of damages are we entitled to?
Dane Imhoff
Compensatory damages: the actual damage Penny Pools suffered when Mrs. Maples breached by not paying. That would include the 3 months of unpaid service fees.
Mike
Yeah, that sounds fair. I just want to be paid for the work we did. She's clearly going through a bad time.
Melissa
This happened months ago and we never did anything about it. Now that I think about it, I didn't even send her the demand letter. Sorry about that...
Mike
Oh no. Dane Imhoff, do you think we have a timing problem with suing months later?
You should be OK. Usually, the statute of limitations to bring a breach of contract claim is a few years, not a few months, but it varies from state to state.
Under federal law, you only have 90 days to file a breach of contract claim. Otherwise, the statute of limitations runs out and you lose your right to sue. Both parties are discharged from any rights and duties under the contract once the statute of limitations has expired.
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