Conflicts in business happen. Often, business relationships that start out cooperatively and full of promise can become unproductive and even adversarial. This blog is intended to facilitate and understanding of the business dispute resolution process. We hope you find this information useful and welcome your feedback.
$940 MILLION DOLLAR TRADE SECRETS VERDICT
Reuters is reporting that a jury in Wisconsin has awarded Epic Systems, a medical software company, $940 million dollars in damages in a trade secret lawsuit against Tata Consultancies, an Indian information technology provider. This verdict may be one of the largest trade-secrets verdicts on record. More information about the verdict can be found here: http://www.reuters.com/article/us-tata-epic-verdict-idUSKCN0XD135 Read more [...]
Limited Liability Companies (LLC) are increasingly the business entity of choice for many entrepreneurs because of their ease of organization, simple tax structure, and flexibility. An LLC can be governed by just about any set of rules that its members dream up. These rules are typically memorialized in a written operating agreement. But what happens when there is no operating agreement? In that instance, Georgia law imposes a set of default rules, some of which may surprise you.
One Member Read more [...]
In a blog post last summer, we alerted you to a federal judge’s ruling that declared Georgia’s garnishment statute unconstitutional. For many months after, creditors, banks and others were surrounded with uncertainty. Many temporary solutions were hatched.
In the latest session of the Georgia General Assembly, efforts were made at a permanent solution that would address the flaws in the old statute identified by the federal judge. Yesterday, new legislation was agreed on between the Georgia Read more [...]
A common source of friction between business partners occurs when one consumes more than he contributes. In other words, one partner gives less and takes more than his fair share. It’s where conflict begins. It can be as simple as showing up late and leaving early a few times a week while the other partner consistently burns the midnight oil to make the business a success. But often, the parasitic nature of the relationship is more complex and harder to detect.
Two partners might run multiple Read more [...]
Businesses rightfully expect to be paid for the products, services and value they provide. Unfortunately, some customers are more interested in receiving that value than in paying for it. To these customers, an invoice isn’t even due until it is hand delivered by the sheriff along with a summons and complaint.
When it becomes necessary to file a lawsuit to collect a receivable, the law allows for the recovery of more than just the outstanding principal balance. A recent post discussed the recovery Read more [...]
Deciding whether to pursue litigation to resolve a dispute is a business decision. The associated expense is one of many factors to consider. The default rule, known as the "American Rule", is that each party pays its own attorney's fees in court, win or lose. The rationale behind this rule is that fear of the possibly having to pay an adversary’s attorney’s fees should not discourage a party from seeking redress for perceived wrongs in court. This can frustrate business owners, who often Read more [...]
Whether buying an existing business or winding a fledgling business down in anticipation of starting a new one, entrepreneurs would do well to consider the implications of the successor liability doctrine.
A recent Georgia Court of Appeals decision imposed liability on a corporate successor for the debts of its predecessor. In that case, a homeowners association (HOA) hired a contractor to perform extensive repair work, but failed to pay for it. When the contractor filed suit to collect, HOA's Read more [...]
What is a common area of dispute between collaborators in the formation and capitalization of a business? It is the characterization of their respective capital contributions as either the purchase of equity in the enterprise or a loan to it. Often, the pressing circumstances driving the business’s need for the capital can distract those involved from thinking through, agreeing to or properly documenting the nature of the transaction. The passage of time rarely clarifies the confusion.
As Read more [...]
Earlier this week, Judge Marvin Shoob of the United States District Court for the Northern District of Georgia issued a Ruling declaring Georgia’s post-judgment garnishment statute unconstitutional.
Prior to September 8, 2015, Georgia’s post-judgment garnishment statute (O.C.G.A. § 18-4-60 et seq.) provided judgment creditors the right to file a garnishment action against third parties to seize money or property owed to them, such as employee earnings and funds held in Read more [...]
Cyber liability issues are omnipresent in today’s business world. Target, Home Depot, Anthem and Ashley Madison represent just a few recent examples. On Monday, the Third Circuit United States Court of Appeals addressed this issue, making it clear that the Federal Trade Commission (FTC) may take action against organizations that have subpar IT protocols. Based on this ruling, an organization’s potential exposure has multiplied.
Many companies, large or small, are at risk for substantial private Read more [...]