Breach of Contract

[bgp5740]

We shut down our business in order to save the home that's been in the family for years. When the home partially collapsed, the owner requested, and received, at great sacrifice, full-time services by us to keep the home from completely collapsing. After the house was saved, the agreement (shown below) was to be executed upon the next stage, which was hiring a contractor and obtaining a mortgage on a now mortgageable house.

The owner did sign on August 6, 2009, a Contract to place titles to the properties in a new Corporation. This would be a Montana corporation for property in Massachusetts. The agreement states that 51% ownership of said Corporation was, and is to be issued to Jesse E. Torres III, (son) and the remaining 49% to Sophie J. Torres (mother). We relied on this agreement when we agreed to thousands of hours labor and considerable personal funds for materials and tools.

The bank stated for the record that the house was 69% completed when the owner stopped construction, changed the locks and threw us off of the property, the sole reason being our legal action for monies she owes her son, in a separate lawsuit.

The demand letter and agreement can be found at: http://eviction.jetiii.com/Exhibits/ExhibitB.pdf.
The agreement says (Note: 345 Carriage Shop is the location of the farmhouse for which the work was done as well as the adjoining 5+ acres, Uncle Fred's house the the home in which Sophie Torres lives):
1) Form Torres Farm Trust, Inc.
2) Mom will transfer 345 Carriage Shop and Uncle Fred's property to new corporation.
3) 51% of stock will be issued to Jesse E. Torres III.
4) 49% of stock will be issued to Sophie J. Torres.
5) Jet will receive an option on all Mom's stock when she dies for $100.00
Signed by both parties August 6, 2009

Therefore, our question is: What is the best litigation tactic to enforce the agreement in, we believe, federal court?

Any help you can give will be greatly appreciated.

[sharone]

I don't think this is a federal court issue but I think you can sue for the time and material costs you put into it before the other person cancelled the contract. I would hope you have proof of all of this though.

[bgp5740]

Thank you for your reply Sharone. It's not a federal case if the property is in Massachusetts and the corporation is in Montana?
We are indeed suing for the time and material costs and we do have proof.

[sharone]

No, I don't think so. I think it would be federal if the crime (or civil offense) occured in two different states at the same time otherwise the federal courts would be very backlogged because a lot of corporations have offices in different states. Anyone disagree?