Business Disputes / Litigation

Business disputes are inevitable: contractual issues, internal disputes, tort claims against the business.  If you are in business long enough, you are eventually going to have a disagreement.  If managing them effectively with minimal cost and disruption to your business is essential, then finding the right legal counsel to assist you is critical. 

Business litigation involves disputes related to or stemming from business transactions between individuals or companies. These disputes originate from some kind of contract, statutory obligations, or disagreements between business owners. 

Every dispute is different, and we will work closely with you to understand your business plans and map out a strategy that is designed to meet your goals. You will be well-informed throughout every stage of the legal process and receive timely responses to your questions or concerns.

If possible, we will resolve disputes as efficiently and as effectively as possible through negotiations. If we are forced into a courtroom, you can be assured that you will be represented by a seasoned litigator. 

Do you need legal advice in avoiding a potential business dispute, or managing one that has already started?  Please take advantage of our Frequently Asked Questions and Answers below and check out our Resources page.  

Ready to talk now?  Contact CASHMAN LAW to set up a free consultation.

FAQS

At CASHMAN LAW we believe informed clients make the best clients.  Whether you have retained the firm or are just looking for some general information before or after your free consultation, please make use of our FAQs and other resources found on this website.

General frequently asked questions

I should wait until I am ready to file a lawsuit, or until a lawsuit has been filed against me before I contact a lawyer, right?

Well that is a technique, and one frequently used by many businesspeople.  A better method of resolving disputes is contacting legal counsel as things are developing so you understand the strength of your position and ways in which it can be resolved before a lawsuit is filed.  Sometimes lawsuits are necessary, but frequently disputes can be resolved before they reach the lawsuit level.  Often businesspeople attempt to engage in resolving a dispute without the benefit of legal counsel and end up digging a hole for themselves deeper than they would have been if they had contacted legal counsel first.  Let us help you map out a strategy to resolve things so you can get back to work.

Contact CASHMAN LAW today for a free consultation to see how we might assist. 

What are some “Red Flags” that I should contact a business litigation attorney?

Sometimes the indications are obvious, other times if you are unsure whether it’s the right time, it is wise to have a quick consultation call and find out.  If you are served with a lawsuit; receive correspondence demanding payment and/or alleged wrongful conduct; or are threatened by conduct detrimental to the business or your personal assets, these are clear indicators that you would benefit immediately from legal counsel.

The mere fact you are reading these FAQs may be a good indicator that contacting an attorney now may head off a more complicated and expensive situation in the future. Let’s discuss your legal rights and help you plan a resolution strategy.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What Are Some Common Misconceptions About Business Litigation?

“It is easy and inexpensive.”  If you have been involved in a lawsuit in the past you can appreciate the cost, complexity, and disruption to your business and personal life.  At CASHMAN LAW we are dedicated to providing you the most cost-effective resolutions.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Who pays the expenses in litigation?

The general rule is that each party is responsible for their own court costs and attorneys’ fees.  There are a few exceptions.  Depending on the types of claims brought and whether a contract or law exists that would allow the prevailing party to recover their attorneys’ fees and costs.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Why is it critical to hire a business litigation attorney?

So you can understand the process, weigh the legal risks, and make informed decisions on how to proceed. Business litigation is specialized and often complex. Experienced business litigation lawyers may be able to head off a lawsuit before it is filed, or if not, guide a client to an early resolution.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

If I become involved in a dispute, what are three things I should do immediately?

Great question.

1. Seek legal counsel.  But you knew that one was coming.
2. Don’t discuss your dispute with anyone except your lawyer, or until your lawyer advises you how to discuss it. Discussions with your lawyer are privileged and therefore protected from future disclosure in court.  Communications with others, even co-workers, are typically not. Making the mistake of fact-finding, brainstorming, or just venting can have a detrimental effect on your later position in litigation.  A short call with your attorney will help you focus your efforts.
3. Retain your documents. If you are aware of a dispute and the reasonable chance of litigation, you have an obligation to retain your documents and communications on the topic. Save your records, they may help your case. One of the most important things you can do is to retain all paperwork regarding the dispute. Not only does a paper trail make your lawyer more efficient, but judges and juries may find your case more credible with documents that support your position.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What should I prepare for our first meeting?

It is not necessary to have anything prepared for your initial consultation.  We will guide you through the process.  If you have been served a lawsuit, we will need a copy of that document immediately.  If not, it is better we talk first so we can provide you with some guidance on what information you need to gather. Resolving a dispute can be expensive, time-consuming, and disruptive to your business.  If it becomes necessary that we move forward, we will likely ask you for a written chronology of events and a list of potential witnesses.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Is filing a lawsuit my only option if our business has been harmed?

No, not necessarily.  Mapping out a strategy to avoid litigation is our first goal.  Sometimes a lawsuit may be the only way to protect you and your company’s interests: you may have been sued and don’t have a choice but to defend yourself; you may have attempted to settle and are dealing with an unreasonable adversary; you may be faced with a situation where even though the dollar amount is low, it will send the wrong message to other parties involved in your business dealings. We will discuss your particular situation and the various legal options to amicably resolve the matter without a lawsuit.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

I haven’t done anything wrong, why am I being sued?

We have a very open legal system in the United States. One of the common refrains from our international clients is that it is perhaps too open.  To file a lawsuit, all a party needs is a reasonable, good-faith belief that they have been wronged and that the law provides them a recourse. The litigation process itself determines if they are correct.

If you have been served with a truly frivolous lawsuit, we can work to have that dismissed as soon as possible.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Do I need an attorney, or can I settle this dispute on my own?

We frequently recommend clients attempt to engage in one-on-one negotiations after talking with clients about their dispute and providing an initial assessment. Often, the knowledge that one party has retained counsel can make the other side defensive and less open to a quick resolution.  We can provide guidance on communications, and negotiation tactics.  We may even draft or review written correspondence before it is sent so you don’t prejudice your position should you be unable to quickly resolve a dispute.

In other instances, attempting to resolve a matter yourself only makes things worse.  Having seasoned counsel represent you directly in the early part of the process is necessary.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What is the Statute of Limitations?

Almost all legal claims are limited by a time period.  If you have a claim, the law requires you to bring this claim into court before that time period expires.  If you don’t, you can be prevented from bringing it in the future, no matter how meritorious.  Even if you are actively negotiating a dispute, and are hopeful that it will resolve amicably, you need to be aware of the specific time limits for each type of claim, so that should your efforts fail you are not left without any recourse.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Tell me the process to hire your firm?

We ask you to schedule a call or meeting so we can discuss your case. Should you choose to retain us, we will provide an engagement letter that outlines our services and our representation. Our next step is for you to provide some specific information and documents necessary to conduct a review of your dispute. We then map out a strategy with your goals in mind. Then we advise you of a projected budget and suggested courses of action so you can make informed decisions on how to proceed.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Litigation Procedures frequently asked questions

What does the litigation process entail?

The civil litigation process is relatively uniform and is controlled by federal or state court rules in the jurisdiction where the case is filed.  It involves a considerable volume of work, whether or not the case actually goes to trial.

Initially, the parties file and serve initial pleadings: a “Complaint” by the plaintiff and an “Answer” by the defendant (and possibly counterclaims or third-party actions).  Beyond the pleading process, the parties engage in “Discovery” which are formal requests to each other, or non-parties, for information and documents relevant to the claims or defenses in the case.  After discovery, a trial is set and the court renders a judgment.  If a party finds a legal error in the judgment, they may choose to file an appeal.

At CASHMAN LAW we pride ourselves in providing clients the necessary counsel to make informed decisions.  This includes a litigation budget so you understand upfront the potential costs of litigation.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

How long does litigation take?

Litigation cases typically take 1-2 years from the filing of the complaint until the verdict at trial.  The vast majority of cases settle before trial. Even with the settlement, a litigated matter typically does not settle until preliminary discovery is complete, which can be a six to twelve-month process.

Infrequently, the parties are willing to mediate early and a case can be resolved in a matter of months.  A case on appeal can last for several more years until a verdict is final.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

How Do You Define A “Win?"

If a client prevails at trial, but the costs of litigation are financially devastating, I would not consider it a “win.” Likewise, a trial victory only to find that you cannot collect on the resulting judgment because the other party is insolvent, is rarely seen as a “win.” In other circumstances, it is a necessary goal for the business owners to “take a case to the mat.”

Ultimately our clients want a return on their investment for legal services.  We seek to understand your business, the importance of your case in relation to your overall business, and tailor a litigation strategy that provides you with the highest potential return on investment possible.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Types Of Disputes frequently asked questions

What Are some examples business disputes you can help me resolve?

Common issues in business (or commercial) litigation include business torts, contract disputes, non-compete agreement issues, trade secret copyright litigation, shareholder disputes, employment issues, and landlord-tenant disputes.

The majority of business disputes involve a contract, or some other legal document: contract for purchase or sale of goods or services, employment agreement, or partnership or shareholder disputes. In other words, there was an agreement, usually in writing, for someone to do something and another party to that agreement is claiming that thing has not been done.

Business litigation can also involve legally recognized rights in the absence of a contractual agreement. These may be brought separately, or sometimes in conjunction with a contract claim. Such claims, or torts, include breach of fiduciary duty, defamation, fraud, misuse of intellectual property, theft of trade secrets, and/or tortious interference.

The remainder of the FAQs in this section provides some additional information on some of these specific claims.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What are internal corporate or partnership disputes?

Co-owners or business partners sometimes become involved in a dispute over the operation of the company.  Many can be resolved amicably. Other times, the level of discord reaches the point where agreement cannot be reached on important business matters.

Like a marriage, many business owners have disagreements.  When disagreements begin to reach a point where you question the future of your business, it is wise to seek an outside perspective from someone with experience handling such complex legal matters.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What if I suspect my business partner has done something questionable?

Sometimes business relationships get strained. One of the business owners wants to move in a different direction, or perhaps has done something questionable.  If they have done, or are about to do something to endanger the company, (or even something you just don’t agree with) you need to act immediately.

Our first step will be to gather the facts and advise you about your legal options.  With that knowledge, you may be able to rectify the situation without significant attorney involvement.  If not, we will map out a strategy together to resolve the dispute in the most efficient way possible.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What is a breach of contract?

A contract is a promise enforceable by law.  Most contracts are reduced to writing, but some oral contracts are legally enforceable.  When one party to the contract fails to carry out their promise in a material way, that party is said to be in breach.

A breach of contract can cause immediate and imminent harm to a business.  To minimize the risk of significant loss, you should act promptly. Quick action may protect information and preserve resources.

During your first meeting with an attorney, gather copies of any applicable correspondence as well as any contract related to the dispute.  If you have been wronged under a contractual agreement, it is advisable to speak to an attorney as soon as possible.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What can I do if a vendor failed to deliver what they promised?

This is a basic breach of a contract dispute.  The invoice, bill of sale, bill of lading, or other documents associated with the transaction constitute the contract.  We will review the documents and discuss legal options.  In some cases, a firm letter can produce a favorable result.  In other situations, we may be forced to file a lawsuit.  In either case, time is not on the side of the injured party. You will want to act quickly to protect your legal rights.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What is a Non-Compete Clause?

A non-compete clause is a contract term commonly used (and misused) in employment contracts and purchase and sale agreements. If understood and written correctly, it can be a powerful tool for both parties. To be written correctly you must understand how the law is written and enforced in your state.

A well-crafted non-compete clause must be fair to both parties. For the person subject to the agreement not to compete, they receive certain opportunities, including perhaps employment. For the person who benefits from the restrictions, they receive some assurance that their confidential business information is not absconded with and used against them.

In drafting a non-compete clause, both parties need to be aware of its enforceability. Some states allow an employer to limit an employee’s future work with a competitor to certain geographic, scope, and time limits. Other states will only enforce certain protections of business assets, like trade secrets and intellectual property. If the clause is poorly written, some states will “blue line” the agreement, that provides protections to what is legally enforceable while ignoring the rest. Other states will refuse to enforce any of its terms.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What happens if someone has breached a non-compete agreement?

The most common remedy for breach of an enforceable non-compete agreement is an injunction.  In this case, the wronged party would ask the court for an order to stop the violating party from breaching the non-compete agreement. In other cases, the court may order, or a party may request monetary damages instead of an injunction.  If an injunction is ordered, violation of the injunction is considered contempt of court, and further legal action may be brought before the court and the offending party will need to explain why they should not be held in contempt.  If the explanation is not reasonable the court can punish the person in the form of monetary sanctions or even jail time.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What if I bought a business and the seller is not holding up their end of the agreement?

The purchase and sale of a business can be advantageous for both sides.  We have counseled many clients on both sides of the transaction.  In some cases, the seller is not properly represented by counsel and doesn’t understand their obligations.  Other times, they have the benefit of adequate counsel, but just don’t hold up their end of the deal.  Unfortunately, post-sale business disputes are common.

Business sellers generally make a number of promises at the closing: they promise that they own all the business assets they are selling; they promise that they don’t owe any money to anyone; they promise to deliver the title to certain assets after the closing; they promise that they won’t compete with the buyer for a certain amount of time, in a certain area, and within the scope of business.  Sometimes sellers fall short in keeping their promises.

We will review together the sales agreement and any other documents relevant to the transaction.  Then we will discuss your rights under the agreement and the law, map out a strategy to meet your goals.   Often, this begins with a letter to remind the seller of their obligations.  Other times, it is necessary to immediately file a lawsuit or to file for injunctive relief.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What if I sold my business with a payment plan and the buyer has stopped paying?

The purchase and sale of a business can be advantageous for both sides.  We have counseled many clients on both sides of the transaction.  Disputes coming from the seller are less frequent unless payment is not made in full at the time of closing.  Having a payment plan, or partial payment plan to account for outstanding accounts can be a source of conflict if included in the transaction.

Likely, if your buyer has stopped paying, you have made some attempt to remind them of their obligations and they have not responded, they may be in financial trouble.

You should contact an attorney immediately to discuss your options.  So long as they are financially stable, a lawsuit for specific performance may be a quick and effective strategy.  If they are financially unstable, we may need to discuss options.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Can I Sue When a Business Interferes with My Clients?

If you believe another company or individual has interfered, or is attempting to interfere, with your contractual or other business relations, you may be able to file a tortious interference lawsuit against them.

In deciding whether to defend your rights against business interference, an important consideration may be protecting yourself from further and future interference.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Resolving Disputes frequently asked questions

Courts are expensive and time consuming, what other options do I have to resolve a dispute?

Protracted litigation is often the last resort.  Other methods of dispute resolution can be effective.  Beyond assisting you with informal negotiations, we can represent you in formal arbitration and mediation procedures or work with certain state and local agencies.

These procedures are referred to as alternative dispute resolution (ADR).  If a contract is involved, it may dictate an ADR procedure.  Depending on the type of claims brought, a state or federal statute may require the parties to bring their dispute before an administrative agency.

Whether required by law or contract or just agreed to by the parties involved in the dispute, ADR can significantly streamline the dispute resolution process.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What are the benefits of alternative dispute resolution?

Alternative dispute resolution (ADR) has many benefits compared to traditional civil litigation and can be required by the subject of the litigation. If not required, the Court in which you file your dispute may “highly encourage” you to participate in some ADR procedures at some point.

In most cases, ADR is faster, less expensive, and less burdensome on the parties. The procedures leading up to a hearing are typically limited, and you will have input on the selection of your mediator or arbitrator.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What is Mediation?

Mediation, as defined under the California code, is a “process in which a neutral person or persons facilitate communication between the disputants to assist them in reaching a mutually acceptable agreement.” The neutral person, or mediator, is selected by the parties with assistance from their legal counsel and is typically a seasoned attorney, former judge, or someone with specific expertise in the area of the dispute.

The mediation process begins with the joint selection of a neutral mediator.  The mediator will typically encourage both parties to provide a written outline of their case to the mediator in advance.  What is discussed during mediation is confidential, so the parties have the ability to speak candidly about their case without having concerns about that information being shared with the opposing side or showing up at trial.

Usually, the mediator will meet separately with each party and discuss the strengths and weaknesses of their case, provide their assessment of the case, and attempt to find common ground for a resolution.  Mediation is not a binding process.  Meaning if the parties choose not to settle, they won’t settle.  Some claims are subject to mandatory mediation, either because of a contractual obligation or because of a law or court rule requiring it.  If not mandatory, many judges will strongly encourage the parties to mediate before trial.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What is Arbitration?

Arbitration is a process where the parties submit their case to a neutral arbitrator, or panel of arbitrators, who renders a binding decision.  In other words, the arbitration process replaces a court trial and binds the parties to a final decision by the arbitrator(s).

Some claims are subject to mandatory arbitration because of a contractual obligation.  In other instances, the parties voluntarily agree to settle their claims by arbitration.  If the claims are subject to mandatory arbitration by contract, the same contract may also specify how the arbitration will take place, i.e. through a certain arbitration forum and under certain rules.  If not, the parties will jointly agree upon these rules.

Typically, the arbitration of claims is less expensive and faster than a court trial.  Therefore, many parties will choose to arbitrate rather than go to trial.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

What is the Difference Between Mediation and Arbitration?

Both processes are similar in that the parties jointly select a neutral third party to listen to their case.  They differ in that mediation is a cooperative process that is non-binding on the parties.  The mediator facilitates consensus building and discussion in the hopes of bringing the parties to an agreeable resolution.

Arbitration, while often less formal than a trial, produces a binding result on the parties.  The parties present their evidence and arguments to the arbitrator, who like a judge and jury, decides who prevails.

Contact CASHMAN LAW today for a free consultation to see how we might assist.

Can we settle outside court?

Likely, yes. Each case is different, but historically over 90% of disputes are resolved before trial. Many factors will influence how quickly this will happen. One of the most significant is whether both sides have seasoned business litigators adequately advising them and setting appropriate expectations. We have unfortunately experienced some litigation with opposing counsel who fails to adequately meet this standard. If we are forced to take a case to trial, we have the experience to do that as well.

Picking the right lawyers, ones who put your needs and goals first may be the most important decision in successfully resolving your business disputes. At CASHMAN LAW our firm values define our service: integrity, competence, and personal service. Don’t settle for less.

Contact CASHMAN LAW today for a free consultation to see how we might assist.