How To Avoid Multi-Million Dollar Litigation, Part 5
Five Part Series by Sean Callagy of Callagy Law, your law firm in Paramus, Bergen County, New Jersey.
Spread the word now!
Who is a business owner you know or an accountant, financial or money manager or any trusted advisor for business owners? Please pass this entire series along and take action in sending it to your contacts and implementing its principles.
Call me, Sean Callagy now at 201-261-1700.
1. Vendor Agreements
2. Client Agreements
3. Employment Agreements
A vendor agreement is any agreement with an outside person entity that will do work for your business.
Examples of vendors are accountants, financial services, payroll, web design, IT, builders, painters, advertisers, marketing services, strategic relationships and so on.
All of these relationships can be incredible, and ripe for costly commercial litigation.
I’ve seen clients be ripped off continuously, from thousands of dollars to millions of dollars by not following these simple rules:
1. Have a loser pays attorney’s fees and costs provision
2. Agree specifically on costs for exactly what you are getting
3. Agree on timelines and reporting with penalties for failure to achieve deadlines
I have been personally burned a half dozen times not following these rules in the past, especially when I liked people.
Also, we’ve had cases in past years for over tens of thousands to millions in dispute with vendors.
Client contracts and employment contracts also need great care and attention.
Clients may be incentivized to not pay you three thousand dollars because they think litigating will be too costly for you.
How about restrictive covenants versus non-solicitation provisions with fee and cost provisions for employees?
Do you have these? Are key clients and liquidated damages spelled out?
All of these are areas every business owner needs to cover, in detail, or risk unnecessary commercial litigation that is unnecessarily long and costly.
The true cost of commercial litigation is not merely attorney’s fees and costs.
No, commercial litigation costs you and your business time, money in lost opportunity, focus, energy, joy, and happiness.
Commercial litigation is also a breeding ground for negative emotions and behavior.
This is why you need to handle matters NOW, even if you don’t feel like it.
I have a ton of clients who will be happy to explain to you how much they wish they knew these rules years ago.
If, however, you have issues you have to deal with now, then we are also the right people to be at your side in your battle.
We believe in integrity, truth, justice and all of the appropriate aggression, within the bounds of ethics and the law to get you through your potential or actual commercial litigation matter.
If you are a business owner, call me, Sean Callagy now at 201-261-1700. I would love to speak with you.
Make today the day you tackle these issues.
In your service,
If you do not have an ownership agreement, or know someone who may be without a fee shifting provision in an ownership agreement, please contact me, Sean Callagy now at 201-261-1700. You can also contact Sean Callagy or Callagy Law on LinkedIn, Facebook, Google+ or by Email.