One of the vendors for a once-successful food ministry has filed suit against the Georgia company, only weeks after the business was shut down. The ministry had been in the business of helping feed the poor through discounted food sales, and at one point had helped feed half a million families. But now they face a breach of contract suit as one of their suppliers is attempting to collect nearly $80,000 in damages.
Despite the ministry’s nonprofit status, the supplier alleges the ministry failed to pay for or return food which had been delivered before the ministry closed its doors. The breach of contract suit also claims that the ministry was aware of its legal obligations but was “stubbornly litigious,” and is therefore attempting to recover court costs from the ministry as well. The ministry began to show signs of financial trouble in September, when it announced that it would not be able to distribute food that month. It blamed the poor economic climate, rather than an ongoing FBI investigation or a previous lawsuit. The ministry claimed it would reorganize and re-launch, but a few weeks later announced it was shutting down permanently.
The breach of contract lawsuit demonstrates how even ceasing business operations does not protect owners from existing legal issues. Therefore, having experienced legal representation is absolutely vital. A skilled lawyer can help protect private assets, while seeking to negotiate an equitable resolution of all outstanding matters. In this case, a settlement in a Georgia courtroom could speed the process of the ministry’s founders getting back to the work of feeding the poor.
Source: The Christian Post, “Angel Food Ministries: Sued for Breach of Contract,” Jeff Schapiro, Oct. 12, 2011