Is a company not paying a settlement a breach of contract?

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Is a company not paying a settlement a breach of contract?

A payout of an on the job injury has been reached but the company has not met the terms of the settlement. It had 31 days to pay but it has been almost 2 months and they claim to have sent the checks to the lawyers’ office.

Asked on July 31, 2018 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If they have not paid when they should have, they are in breach of contract: you can sue them for breach of contract--since a settlement is a contract--to enforce the agreement's terms and get the money to which you are entitled. Your lawyer should be contacting them to let the other side know that they will be sued unless they pay you. If they have sent out the payment, they should be able to provide documentation (e.g. tracking numbers for its delivery; proof of who received, cashed, or deposited any funds; etc.). If they cannot prove that you were paid, you should have an easy time winning.


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