$900K Award Secured for Maintenance Company in Breach of Contract Arbitration

The $900,000 Wake-Up Call: A Story About Getting What You’re Owed

I want you to imagine something for a second. You run a maintenance company. You’ve spent years building your reputation, hiring the right people, and showing up when the pipes burst or the HVAC fails. You land a big contract—the kind of deal that changes the trajectory of your business. You do the work. You show up. But then, the checks stop coming.

The excuses start small. “Accounting is behind.” “The manager is out.” Then, the silence becomes deafening.

This isn’t a hypothetical nightmare; it’s exactly what happened to one of our clients. They were a dedicated maintenance company caught in a brutal breach of contract dispute. They had done everything right on the ground, but they were being stiffed on a massive scale.

When they came to the Law Office of Paul H. Appel, they weren’t just looking for a lawyer; they were looking for a way to survive. We took the case to arbitration, and the result was a staggering $900,000 award for the maintenance company.

It was a huge win, but honestly? It was also a reminder of how vulnerable service-based businesses are when their contracts aren’t ironclad. Whether you’re a homeowner hiring a crew or the one running the crew, understanding the “why” behind these legal battles can save you years of stress and a whole lot of money.

Why “Handshake Deals” Are a Recipe for Disaster

Look, I get it. We want to live in a world where a person’s word is their bond. In a perfect world, you wouldn’t need a twenty-page service agreement to ensure you get paid for fixing a roof or maintaining a commercial complex.

But here’s the thing: people forget. People rationalize. And unfortunately, when money gets tight, the first person to get squeezed is often the contractor or the maintenance company.

What Actually Is a “Breach”?

In simple terms, a breach of contract happens when one side doesn’t live up to their end of the bargain. It sounds straightforward, right? But in the world of maintenance, it gets messy fast.

  • The Payment Gap: You finish the job, but they only pay 50%.
  • The Scope Creep: They ask for “one more thing” until that one thing becomes ten unpaid hours.
  • The Unjust Termination: They fire you halfway through the project without cause just to avoid the final milestone payment.

When we fought for that $900,000 award, it wasn’t just about one missed invoice. It was about a systemic failure of the other party to respect the legal boundaries of their agreement. If you’ve ever felt like a client was taking advantage of your “good nature,” you’re likely already in the middle of a breach.

The Hidden Power of Arbitration

You might be wondering why this case ended in a “$900K Award” rather than a “Court Judgment.” That’s because of a little thing called Arbitration.

Honestly, most people gloss over the “Dispute Resolution” section of their contracts. They think it’s just legal filler. But that clause is actually the steering wheel for your entire legal strategy.

Arbitration is like a private version of court. It’s often faster, and it’s handled by someone (an arbitrator) who usually has specific expertise in the industry—like construction or commercial maintenance. In our client’s case, we used mediation and arbitration to cut through the red tape of the public court system and get a binding decision that held the other party accountable.

Why this matters for you:

If you’re a homeowner, you want to know how disputes with a maintenance company will be handled before you sign. If you’re the business owner, you need to know if you’ve effectively “signed away” your right to go to court—or if you’ve smartly opted for a faster route to getting your money back.

Expert Insights: What I’ve Learned from the Trenches

After years of handling breach of contract disputes, I’ve noticed a few patterns that almost always lead to trouble. If you want to avoid being the person who needs a $900K rescue mission, keep these “insider” truths in mind:

1. The “Boilerplate” Trap

Most people download a contract template off the internet, change the names, and call it a day. Don’t do this. Those templates are often written for different states or different industries. A contract for a software developer is not going to protect a maintenance company that has equipment on-site and employees to pay.

2. Document Everything (And I Mean Everything)

I’ve seen cases won and lost based on a single text message. If a client tells you over the phone to “go ahead and add the extra landscaping,” send a follow-up email immediately. “Just confirming our call—we’re adding the North Wing lawn care for an additional $500.” Without that paper trail, it’s just your word against theirs.

3. Know Your “Exit”

Every contract needs a clear way out. What happens if the client stops responding? What happens if the maintenance company can’t get the materials due to a supply chain issue? A good contract isn’t just about the “happy path”—it’s about defining the “divorce” before the first date even starts.

How to Apply This to Your Business (or Your Home)

So, how do you take this $900,000 lesson and make it work for you? Whether you are hiring a professional or providing the service, clarity is your best friend.

  • Review your current “Terms”: Take 20 minutes this week to actually read the contract you send to clients (or the one you just signed with a contractor). Does it say what happens if payments are late?
  • Audit your communication: Are you doing too much “verbal” work? Start moving those approvals to email or a project management app.
  • Don’t wait for the disaster: If a client misses two payments, don’t wait for the third to “see if things improve.” That’s usually when the hole gets too deep to climb out of.

If you feel like you’re already in a spot where a vendor isn’t honoring their contract, it’s time to stop being “nice” and start being professional. Being professional means protecting your livelihood.

Common Questions About Maintenance Contracts

Q: Can I still sue if I don’t have a written contract? A: You can, but it’s an uphill battle. Oral contracts are technically binding in many places, but proving the terms of that agreement is a nightmare. It becomes a “he-said, she-said” situation that usually ends in a compromise rather than a full recovery.

Q: Is arbitration cheaper than going to court? A: Not always. You have to pay the arbitrator’s fees. However, because it’s usually much faster than the court system, you often save a fortune in long-term legal fees and—more importantly—you get your award much sooner.

Q: What is the first step if a company breaches a contract with me? A: Send a formal “Notice of Breach.” It sounds fancy, but it’s basically a letter that says, “Hey, you aren’t doing what you promised. You have X days to fix it before we take the next legal step.” Often, this letter alone is enough to get people moving.

Final Thoughts: Protecting Your Hard Work

At the end of the day, that $900,000 award wasn’t just a number. It represented years of labor, payroll for employees, and the survival of a local business.

It’s easy to think, “That won’t happen to me.” But the reality is that the bigger you grow, the bigger the targets on your back. Whether you’re a homeowner looking for reliable help or a maintenance company looking to scale, your legal foundation is what allows you to sleep at night.

Don’t wait until you’re owed a million dollars to care about your contracts. Let’s make sure your business is protected before the first invoice goes out.

Think your contracts might be a bit “thin”? Or maybe you’re already dealing with a client who’s gone quiet? Honestly, don’t let it sit. Feel free to reach out to us at the Law Office of Paul H. Appel. We can take a look at what you’ve got and make sure you aren’t leaving yourself wide open. Let’s get you on solid ground.

This was another win for Paul H Appel PC.