When your employee told you that they were leaving to work for another company, you were surprised. They had great benefits with you, and you felt like they were treated very well. Unfortunately, even after negotiating, you couldn't get them to stay.
Going into business with someone means that you share a common vision. As you set up the partnership, you can set the terms that will govern the business relationship. Making sure that these are realistic and that they help you to move toward your goal of a successful business is important. But, have you considered what will happen if you and your partner disagree in the future?
Some business litigation lawsuits are based on a breach of fiduciary duty. In the most basic of terms, fiduciary duty means that one party has an obligation to handle financial decisions in the best interest of another party. When that duty is breached, the person who held the fiduciary duty might face a legal action in civil court.
A "trade secret" is any proprietary information that someone possesses that may give them a competitive advantage over others. Anyone who claims rights to a trade secret must be able to clearly define what it is and take reasonable steps to protect it from being made public.
Legal action between companies is often challenging. These matters can be complex, and they might negatively impact the business. For some owners, trying to find the least disruptive method to end the matter might be a priority. Mediation is one option they have.
Employers are required to comply with applicable employment laws, and there are many that you need to be familiar with if you own a business. One of these is the Family and Medical Leave Act (FMLA), which entitles covered workers to take up to 12 weeks off work over the course of a 12-month period.
If you and your business partner have a partnership agreement in place, it may take legal action to end that official relationship. Ideally, the partnership agreement lays out some of the steps to take and the rights you both have, but it's not always that simple.
Litigation may not be the first thought of every business owner when one wakes up in the morning, but it can have a great effect on business' strategy and operations. Issues of liability must be sidestepped or managed so the risk of landing in court is reduced. Court cases can be expensive and time-consuming even when a business or its manages have done nothing wrong.
Most of the time, you're not thinking about the legal background of your business environment. It's one of many elements of operations, like logistics and marketing. But the law matters a lot more during important moments of change, like buying or selling a business.
Businesses do everything possible to protect themselves from lawsuits filed by customers, employees, vendors, contractors and other businesses. Despite this, companies can still wind up in litigation. These lawsuits can force a business to close its doors if they do not have the proper insurance protecting them. So, what are some common reasons businesses end up in litigation?