Articles Posted in Business Litigation

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Any company with employees is aware of the fact that conflicts between people are inevitable. Conflicts can arise due to disagreements about work-related matters or because of issues that are purely personal. Fortunately, these kinds of conflicts are often resolved informally and without the intervention of an employment attorney or even the human resources department. In some cases, however, an employee may file a lawsuit against his or her employer in an attempt to hold it liable for discriminatory policies, discriminatory acts committed by management, or even the failure to address inappropriate conduct between one employee towards another.Fotolia_61516923_Subscription_Yearly_M-300x149

There are several steps that California employers can take to minimize their legal liability as a result of discrimination lawsuits, some of which are detailed below.

Have an employee handbook

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Selling a business is a major decision that often has the potential to leave entrepreneurs with significant financial freedom. In fact, in many cases, entrepreneurs start a business with the intention of selling it once they reach a certain valuation point. One only has to look at the recent sales of Instagram to Facebook ($1 billion) or Beats Audio to Apple ($3 billion) to see why selling a business can be an attractive proposition to many entrepreneurs. Of course, these billion-dollar examples represent a fraction of the kinds of mergers & acquisitions that regularly occur in the business marketplace. That being said, a deal worth a fraction of these sums could still put a hefty sum of life-changing money into an entrepreneur’s pocket.Fotolia_74847478_Subscription_Yearly_M-300x180

As a result, it is important for people who are considering selling their business to do so with the guidance of legal counsel that understands the legal issues that often arise in selling an existing venture. Below are four tips for entrepreneurs who are thinking of putting their business on the market.

  • Determine your goals – Of course, everyone who puts a business on the market is ultimately looking to make money. Some people, however, have a set amount that they feel that they need to obtain in order to make a sale worth it. For others, it is extremely important to stay involved with their “baby” after a sale has been made.
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When drafted properly, employee handbooks encourage open communication in the workplace, set employee expectations, and shield businesses from the financial burden of legal liability. Here are 3 reasons why your business should have an employee handbook.

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3 Reasons Why Your Company Should Have an Employee Handbook

  1. Establish Your Company’s Character
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Last year, California legislators passed the Healthy Workplace Healthy Family Act of 2014, which provided the opportunity to accrue paid time off for sick leave to almost every California employee. The law allows qualifying employees who have worked at least 30 days to begin accrual and to use that sick time after 90 days of employment. The law covers temporary, part-time, and full-time employees with very few exceptions. Such exceptions only apply to certain employees with collective bargaining agreements, some air carrier employees, and in-home providers of supportive services.

Because the new law so widely affects California employers, all business owners should thoroughly familiarize themselves with it to avoid legal disputes or sanctions for noncompliance.

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Basic requirements for employer compliance

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Some of the world’s most successful companies started as partnerships. Microsoft, Apple, McDonald’s, Warner Bros., Ben & Jerry’s, and Google are only some examples of now corporate giants that began with only two people working together to start a business. Unfortunately, many partnerships do not work as well, often because of disputes between the partners. Many of these disputes may be avoided by simply drafting and signing a valid and appropriate partnership agreement at the beginning of operations. An experienced business attorney can help you identify which issues need to be addressed in your particular partnership arrangement.

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The law does not require an agreement

Anytime two or more people begin business operations, they automatically have a partnership. Much like a sole proprietorship, a partnership requires no filings with the Secretary of State or other formalities in order to establish the business entity. If you do not have a partnership agreement and a dispute arises, you will have little control over how the dispute is resolved. In cases without an agreement in place, California law will govern the situation and not the wishes of the respective partners, which can be problematic in many cases. For example, California law allows each partner an equal say in the management of the business, as well as an equal share in profits. This would not be fair if one partner contributed substantially more time, effort, or money to the business than the other. Therefore, not only will a partnership agreement help to avoid misunderstandings in the first place, but may also lead to a fairer resolution of any legal issues.

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The robust expansion of the Internet and increased accessibility of Internet-enabled devices has provided entrepreneurs and existing businesses an easy and relatively inexpensive way to reach millions of people. One only needs to look the meteoric rise of companies like Amazon and Netflix to see the growth potential of an Internet-based business.  In fact, many types of businesses which once were required to have a bricks-and-mortar presence can now operate solely online, significantly cutting their overhead costs. One only needs to look at the rise of companies like Amazon and Netflix to see the growth potential of an Internet-based business.Fotolia_78106111_Subscription_Yearly_M-300x210

Because of this potential, more and more people are choosing to start their own online business selling goods or services to people around the country and even the world. While the Internet has removed many of the barriers of entry that have traditionally kept many people from starting a business, it has also created significant and new legal issues that business owners must consider before building a website and selling their product. It is for this reason that anyone considering starting an online business should discuss their situation with an experienced lawyer. Some of the more important issues related to starting an online business are discussed below.

Type of business entity

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There are pros and cons to including an arbitration clause as part of your contractual agreements. Arbitration is a popular and can be effective forum for settling disputes between individuals, businesses, in real estate contracts and in employment settings under the right circumstances. There are two types or arbitration clauses:  non-binding and binding.

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Non-Binding Arbitration

In non-binding arbitration, the arbitrator makes a decision to determine which party is liable and then suggests possible compensation for damages. Neither party is obligated to follow through with these guidelines.

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If you suspect you may be sued due to an incident at your company, or if you’ve been served with a lawsuit, it’s important to act swiftly to protect yourself and by extension any evidence that may be relevant to your lawsuit.

Gathering and saving documentation is an important first step in protecting yourself. In court, there can be severe penalties if you fail to save all evidence that is relevant to your case, documentary or otherwise. Here are 4 things to consider in advance of a lawsuit to help ensure you aren’t accused of withholding information.

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4 Considerations if You Suspect You May Be Sued

  1. Hire Counsel

Hiring an attorney will help protect you and your business. An experienced attorney knows the ins and outs of the legal system and can advise you on how best to prepare if a lawsuit is coming. An attorney may also be able to help you avoid the lawsuit in the first place. Continue reading ›

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If you’ve just been served with a lawsuit summons, you must work quickly to ensure you don’t compromise any of your rights. There are firm deadlines when it comes to lawsuits and steep penalties for missing them. Here are 5 things to keep in mind once you’ve been served.

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What to do When You’ve Been Sued: 5 Things to Keep in Mind

  1. Don’t Go At It Alone

Consult an experienced attorney who can help guide you through the litigation process. Getting sued is naturally stressful and draining and having a seasoned professional by your side will put you at ease. A lawyer will be able to explain the claims against you and what they mean, and advise you of your options. Continue reading ›

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Sometimes, avoiding litigation in a legal dispute is the best way to achieve a resolution. Mediation and arbitration may be viable alternatives to reduce the time and money spent litigating. Here are some pros and cons to choosing mediation vs. arbitration when deciding whether or not to opt for avoiding litigation.

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The Pros & Cons of Mediation
Pros:
1. Control

In mediation, you must sign in agreement of the final decision. This gives you control over your approval of the ruling. You also reserve the right to litigate if the mediation fails, making this a less costly alternative to heading straight to court. Continue reading ›