Breach of Contract

Understanding Breach of Contract in California's Financial Sector

California Securities Attorney

Breach of contract refers to the failure to perform any term of a contract, whether it is written or oral, and without a legitimate excuse. When it comes to the financial industry, many claims by investors against stockbrokers, investment advisers, and financial planners involve "breach of contract," and these arise when the broker fails to comply with the terms of their contract with the investor.

Financial matters are arguably one of the most important issues that anyone will have to deal with in their lifetime. There is no question that when making decisions regarding one's retirement, paying for their children's college education, purchasing a home, and making investments an investor relies heavily on his or her broker. Stockbrokers and other investment professionals play an integral role in their clients' lives, especially since most people don't have the time or training to manage their own financial affairs. Investors place a significant amount of trust and power in their financial advisors, and this power cannot be underestimated. Unfortunately, not all brokers operate with their clients' best interests in mind and they can be more concerned about their own financial motivation than that of their clients.

Protect Your Rights with a Skilled Breach of Contract Attorney

When a contract is broken, it can have serious implications for your business or personal finances. Our team of experienced breach of contract attorneys at The Law Offices of Jonathan W. Evans & Associates is dedicated to helping clients in Studio City, CA and the surrounding areas navigate the complexities of contract disputes.

Our attorneys can assist with:

Reviewing and analyzing contracts
Negotiating contract terms and settlements
Filing breach of contract claims
Representing clients in court or arbitration

Don't let a breach of contract jeopardize your rights and financial interests. Contact our Studio City law firm today to schedule a consultation with a knowledgeable breach of contract attorney.

Contact The Law Offices of Jonathan W. Evans & Associates to discuss your options with a breach of contract lawyer near you.

Identifying Broker Misconduct and Its Consequences

When an investor comes to a brokerage firm, they complete an application or other written agreement (including an arbitration agreement) and open a brokerage account with their stockbroker or other financial professional, and the broker or dealer that the broker represents. This written agreement is a legally binding contract which requires that the stockbroker and the firm comply with its terms. These agreements typically state that the stockbroker and the firm agree to comply with all applicable laws and regulations of the U.S. Securities and Exchange Commission (SEC), state laws, and the Financial Industry Regulatory Authority (FINRA). When the broker or the firm fails to comply with any of these rules, laws or regulations, then it is said that they breached their agreement with the client and if this breach caused the client to sustain losses (damages), then the broker or firm may be liable for the harm they caused for the client.

What are the common types of broker misconduct related to breach of contract?

The majority of claims by investors against their brokers, investment advisors, and financial planners involve:

Unsuitable recommendations
Unauthorized trading
Misrepresentations and omissions
Failure to execute trades
Churning
Negligence
Breach of fiduciary duty
Failure to supervise
Misappropriation

It is never acceptable for a broker to make an unauthorized trade on behalf of their client. Whether the broker fails to consult with his or her client before making the trade in a nondiscretionary account, or whether the broker buys stocks on margin without authority or if they ignore the client's specific instructions with respect to the discretionary account, such unauthorized trading can result in claims for breach of contract or fraud depending on the facts of the case.

Commonly Asked Questions

What should I do if I've experienced a breach of contract?

If you believe you have been a victim of a breach of contract, your first step should be to gather all relevant documents, including your contracts, correspondence with your broker or financial advisor, and any evidence of the breach. This documentation will be essential for legal proceedings. Next, consult with a knowledgeable attorney who has experience in breach of contract claims in the financial sector. The Law Offices of Jonathan W. Evans & Associates can guide you through the process, from filing a claim to potential representation in court or arbitration, working hard to guard your rights.

How can a breach of contract attorney help me with my financial disputes?

A breach of contract attorney plays a critical role in navigating the complexities of financial disputes. They can review your contracts to identify any breaches, negotiate settlements, and guide you through filing claims for damages resulting from the breach. Moreover, if the situation escalates, they can represent you in court or arbitration, advocating for your financial interests. By hiring an attorney from The Law Offices of Jonathan W. Evans & Associates, you gain access to our experience and understanding of California financial law, which can enhance your chances of a favorable outcome in your case.

Legal Recourse for Breach of Contract in California

When a broker or firm breaches a contract, then the investor has a specific period of time for which they may file a lawsuit or arbitration claim. Most investor cases are heard in mandatory binding arbitration as a result of an arbitration clause buried in the new account agreement documents. In a FINRA arbitration claim, the FINRA rules provide a Claimant must file an arbitration claim within six years of the event or occurrence giving rise to the claim.

If an investor somehow can file a lawsuit rather than an arbitration claim, then the suit is governed by the statute of limitations. In the state of California the statute of limitations for breach of contract depends of the type of contract in question. Under Section 337 of the California Code of Civil Procedure, the statute of limitations for a written contract is four years. For oral contracts the statute of limitations is two years under Section 339(1). Often, brokerage firms will try to import statutes of limitations into arbitration claims to try to shorten the window in which a claim may be made.

Seek Justice with a Trusted California Securities Attorney

If your broker or financial advisor violated the terms of your agreement or contract, then we urge you to contact a California securities attorney from The Law Offices of Jonathan W. Evans & Associates. We are extremely familiar with the rules and regulations set forth by the SEC, and FINRA. We can review your situation and determine if your broker has violated any such rules which in turn may give you the legal right to seek compensation for your losses. In practice since 1975, our founding attorney, Jonathan W. Evans focuses about 95% of his practice on securities arbitration matters, and he limits his representation to only public customers. To find out what your best course for legal actions is, please contact us today to schedule a consultation with an attorney from our firm.

Contact The Law Offices of Jonathan W. Evans & Associates to discuss your options with a breach of contract attorney near you.

California Breach of Contract FAQ

What are common claims involving breach of contract in the financial industry?

Common claims by investors against stockbrokers, investment advisers, and financial planners involve unsuitable recommendations, unauthorized trading, misrepresentations and omissions, failure to execute trades, churning, negligence, breach of fiduciary duty, failure to supervise, and misappropriation.

What is the statute of limitations for breach of contract in California?

In the state of California, the statute of limitations for a written contract is four years, and for oral contracts, it is two years.

What is the timeframe for filing a lawsuit or arbitration claim for breach of contract?

In a FINRA arbitration claim, the Claimant must file within six years of the event or occurrence giving rise to the claim. If filing a lawsuit, the timeframe is governed by the statute of limitations, which varies based on the type of contract in question.

What should I do if I've experienced a breach of contract?

How can a breach of contract attorney help me with my financial disputes?

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