Wifiland LLP v. R.V.C. Inc.
A contract that requires the parties to make good-faith efforts to resolve disputes, prior to resorting to legal action, requires the parties to make sincere efforts to engage in discussions and to consider reasonable possibilities to resolve matters in dispute. The plaintiff, Wifiland, provides wireless Internet access to parks and camps. In March 2010, the parties signed a license agreement. The defendant, which owns a recreational park and campground, sent pictures of the installation process to the plaintiff. The plaintiff's representatives provided instructions and indicated potential problems. In April and May, the parties attempted to resolve power and connection problems. The system experienced random outages, and the defendant complained that service disruptions were not acceptable. The defendant repeatedly asked the plaintiff to send a technician. In June, the defendant asked the plaintiff to retrieve the plaintiff's equipment. The plaintiff responded that the defendant had breached the license agreement. The defendant objected that the defendant installed the equipment and that ongoing maintenance difficulties were the plaintiff's responsibility. The defendant recanted, requested time to review the contract and agreed to re-wire the equipment. The plaintiff rejected the defendant's attempts to compromise. The plaintiff sued the defendant in Connecticut Superior Court, alleging breach of contract, because the defendant allegedly refused to install the equipment properly. The defendant removed the suit to District Court. The court found that the defendant performed the installation and that the parties' issues could have been resolved, if the plaintiff's representative had visited the defendant's property. The contract required the parties to make good-faith attempts to resolve disputes, prior to resorting to legal action. Good-faith efforts are sincere efforts to engage in discussions and to discuss reasonable possibilities to resolve matters in dispute. The defendant offered a good faith, reasonable resolution. If the plaintiff had been willing to send a technician, the parties' issues probably could have been resolved. The court granted judgment to the defendant on the plaintiff's allegations of breach of contract. The court ordered the plaintiff to remove the plaintiff's equipment from the defendant's property.