Articles Posted in Business Litigation

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AdobeStock_812365342-300x169Every Texas business faces the risk of lawsuits, regardless of its size and scope. Various factors can lead to potential legal challenges, such as a customer claiming a breach of contract or a former employee alleging discrimination. However, businesses can take specific measures to safeguard their owners and assets. The skilled business litigation attorneys at Structure Law Group in Texas can offer detailed legal advice and representation suited to your unique circumstances.

Structure Your Texas Business as an LLC or Corporation

Many Texas businesses start as a sole proprietorship or general partnership. While such structures are simple and inexpensive to set up, they offer no legal liability protection in case of a lawsuit against the business. To put it bluntly, if you are a sole proprietor, any business creditor can come after your personal assets–including your home–to satisfy a business debt.

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AdobeStock_1422775834-300x164Nobody enters a business partnership or relationship expecting to end up in litigation, but disputes may arise that can only be resolved through a formal legal process. If you are involved in such a lawsuit, the San Jose partnership lawyers at Structure Law Group can provide you with professional advice, guidance, and representation throughout the process.

Why Partnership Lawsuits Happen

Most business partnerships are governed by some form of written contract, such as a partnership agreement, limited liability company (LLC) operating agreement, or corporate bylaws. These documents spell out the legal rights and responsibilities of the owners of the business. So when a lawsuit does arise, it is often because one party to the agreement has alleged a breach or violation on the part of another party.

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AdobeStock_543012960-300x200Running a business in Texas comes with inherent risks, including the potential for litigation. Lawsuits can be expensive and time-consuming, making it essential to take proactive steps to minimize risks and respond effectively when disputes arise. At Structure Law Group, our experienced Texas business litigation attorneys are here to guide you through the litigation process and provide proactive strategies to help you avoid lawsuits whenever possible.

With that in mind, here are a few general tips on how you can strengthen your business against the risk of lawsuits:

Properly Structure Your Business

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AdobeStock_1329871997-300x200Alternative Dispute Resolution (ADR) offers a great way to settle disputes without stepping into a courtroom. Two of the most popular methods of ADR are mediation and arbitration. Both provide efficient, private alternatives to traditional litigation, but they are quite different when it comes to the process and the results. Understanding these differences is key when deciding which option works best for your situation.

Benefits of ADR

Both mediation and arbitration share some key advantages over going to court:

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AdobeStock_38444038-300x201Business Partnership Lawsuits — Disputed Between LLC Members, Shareholders, General Partners, or Limited Partners

Nobody enters a business partnership or relationship expecting to end up in litigation, but disputes may arise that can only be resolved through a formal legal process. If you are involved in such a lawsuit, the San Jose partnership lawyers at Structure Law Group can provide you with professional advice, guidance, and representation throughout the process.

Why Partnership Lawsuits Happen

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AdobeStock_79495533-300x200Business disputes arise for many reasons. For example, a vendor might have a unpaid invoice that is several months overdue. Or an insurance company may refuse to pay on a claim after your factory suffered fire damage. Or perhaps you recently had a fallout with a partner and have been going back-and-forth on how to separate them from the business.

At a certain point in the process, you may need to send a formal document known as a demand letter to try and break the logjam. Conversely, another party may send you a demand letter. In either case, it is always best to work with an experienced California business litigation attorney who can advise you of your rights and responsibilities when it comes to demand letters. The team at Structure Law Group assists many California businesses in this area, and we can put that expertise to work for you.

How a Demand Letter Works

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AdobeStock_600446210-300x200Anytime you wish to file a lawsuit against someone in California, you need to be mindful of the statute of limitations. This is the legal deadline for initiating action on a particular type of claim. Failure to comply with the statute of limitations often means your case will be dismissed without consideration of the merits.

An experienced California business litigation attorney can help ensure that you meet the statute of limitations and all other legally mandated deadlines in your lawsuit. The last thing you want is for your case to be thrown out of court before it has even begun. The team at Structure Law Group can guide you through this process and make sure that does not happen.

What Are the Deadlines?

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AdobeStock_626749959-300x200Litigation is rarely the desired outcome to any business dispute in Texas, but it often becomes necessary when alternative dispute resolution methods such as arbitration or mediation do not produce desired results. When any person is preparing for a possible litigation matter in Texas, they will want to have the assistance of an experienced Austin business litigation attorney.

Businesses have the power to resolve disputes on their own without having to go to court, but there are many times in which two sides will vehemently disagree and not be able to come to a resolution. Litigation is often the most effective way of determining which party is right and awarding any damages.

Making Demands

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AdobeStock_102097403-300x200As of January 1, 2024, all entities that are not exempt in California must file reports on their “beneficial ownership” with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). These reporting rules were part of the Corporate Transparency Act (CTA), which itself was enacted by Congress as part of the 2021 Department of Defense authorization bill. The Los Angeles corporate law attorneys at Structure Law Group, LLP, can advise you on your company’s obligation under the new rules and how to avoid potential regulatory issues with FinCEN.

New Requirements for Disclosing “Beneficial Owners” of Foreign and Domestic Companies

At its core, the CTA is an effort to enhance the Treasury Department’s ability to identify and take legal action against potential money laundering activities. In adopting the CTA, Congress determined that many actors involved in illegal activities like terrorist and tax fraud used “shell” companies to conceal their identities and move their illegally obtained proceeds through the U.S. financial system undetected. Given that corporation law varies from state-to-state, there were no uniform national requirements for reporting the actual or “beneficial” owners of many corporate entities.

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AdobeStock_600446247-300x200Contracts are the lifeblood of California’s economy. Every business, no matter its size, depends on the mutual performance of contractual obligations with individuals and other business entities. When there is a breach of contract, the Los Angeles business litigation attorneys at Structure Law Group can advise you of your rights and represent you in taking (or defending against) legal action to assert those rights.

How Much Time Do You Have to File a Breach of Contract Lawsuit in Los Angeles?

California law imposes a deadline–known as a statute of limitations–on most types of civil actions. For alleged breaches of written contracts, the statute of limitations is four years under Section 337 of the California Code of Civil Procedure. But for most oral contracts, the limitation period is just two years under Section 339. In certain cases, a breach of contract for the sale of goods may instead be by Section 2725 of the Commercial Code, which has a four-year statute of limitations regardless of whether the contract itself was written or oral.

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