Articles Posted in Business Litigation

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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.

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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 ›

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As much as you may want to avoid litigation when it comes to your business, conflicts arise and are sometimes unavoidable as a cost of running a successful business. While you and your business partners may have other philosophies on handling workplace issues, sometimes litigation is the best course of action to deal with messy company separations, distribution of assets, protecting your property, and sometimes even handling suppliers and consumers.

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As a business owner involved in litigation, you don’t need to resort to spending years in litigation or paying unreasonable settlement sums; you need to build strategies with a business lawyer so you can resolve conflicts efficiently and effectively, and maximize your ability to avoid future disputes. When litigation is initiated, it is important that it is done right to avoid unnecessary mistakes that waste all parties’ time and money.

Here are 5 common legal mistakes business owners can make when stepping into legal territory, and how to avoid them.

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A merger or acquisition can be a great way to grow your business. Joining forces or purchasing another company increases your market share and potential profits. There’s no real way to know if the venture will pay off. However, the proper due diligence can provide reassurance that the move you’re making is a good one. Due diligence is a multi-step process, so in this post we’re going to focus on just one part: liabilities.

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Understanding Liabilities

Any merger or acquisition comes with a degree of risk. Liabilities are the debts and obligations incurred through the course of doing business. Loans are considered a liability as are accounts payable and accrued expenses. It’s important to take a look at the total number and dollar value of all liabilities. Also, look at the company’s payment history. Are bills paid on time? Is there a record of default? These are red flags that should give you pause. Remember, once you’ve assumed liabilities the responsibility is yours.

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contract.jpgAny business with multiple owners should have a buy-sell agreement. A buy-sell agreement, provides order and clarity should anything happen to one of the owners. In this post we’ll take a look at buy-sell agreements, how they work and what to include.

Understanding an Agreement

Let’s say you and some family members get together and form a corporation or an LLC. Things are going pretty well, the business is making money and everyone is happy. Then something happens, maybe one of your family members dies or simply decides to leave the business. What happens to that person’s stake in your company? A business without a buy-sell agreement can easily fall into in fighting and costly litigation, not to mention the impact on consumer confidence.

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scale.jpgWith any luck, you or your business will never end up the subject of a lawsuit. Since this isn’t a perfect world, it’s best to start thinking about what to do if the unforeseen happens. Like most things, business litigation is an involved issue. We can’t go through the entire process in one post, so we’ll start with three basic steps to take if you find yourself in legal trouble.

Step 1: Purchase Liability Insurance

This step should happen long before trouble starts. In reality, this is one of the first things you should do as a business owner. Liability insurance protects the purchaser from the risks of liabilities imposed by lawsuits and similar claims. Say a customer slips on a wet spot in your store; your insurance would step in and handle the costs. You may want to add extra protection such as errors and omissions coverage. For businesses that have a Board of Directors it’s a good idea to have directors and officers coverage. This type of coverage protects the corporation as well as the personal liabilities for the directors and officers of the corporation.

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A quick scan of the headlines shows come confusion about the deal between AT&T and DirecTV. Some media outlets are calling it an acquisition while others say the 48 billion dollar purchase is a merger. Mergers and acquisitions are similar with a few important distinctions. In this post we’ll address the key differences between these two kinds of transactions.

What is a Merger?

One component of mergers and acquisitions is relational. Mergers are seen as the more friendly way of doing business. When two firms merge, both shed their old companies to form a new one. A good example is the merger between Daimler-Benz and Chrysler. In this scenario, both companies ceased to exist. They issued new stock as Daimler-Chrysler. Mergers are a common occurrence between two companies of equal size and standing.

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