Should My Company File A Lawsuit If Our Business Has Been Harmed?

If your company has been adversely affected by the actions of an individual or corporation you are probably wondering whether or not you should sue them. In most cases, business issues can be resolved through mediation. However, there are sometimes when you may have to litigate if your business has been harmed or if you have not gotten a fair return on your investment.

There are several types of business conflicts that may result in the need to file a lawsuit. Whether you settle things by negotiating or end up in court, you will want to hire an experienced Florida business attorney.

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Shareholder And Partner Disputes

When conflicts arise between the partners or shareholders in a corporation, the results can be catastrophic for a business. There are a few typical partnership disputes to avoid.

Whenever parties agree to enter into a business partnership, they agree that they will assume losses and share profits. You should always make a partnership agreement in writing, no matter how small the business is or who your partners are. Your attorney will be able to create a partnership agreement for you.

If a partner walks away from their responsibilities, or if they misappropriate the funds of your business, you can sue them for compensatory damages. The amount of money that a company would normally sue for would be the amount of money the partner lost for the company.

If you actually sue a partner or ex-partner for this, a judge may or may not take any future losses you will experience into consideration. You will also have to subtract the amount of money the partner has invested in your company from the amount of money for which you are suing. This may not be worth the time and expense of an actual lawsuit. A trained business lawyer should be able to help you come to an arrangement with an ex-partner.

Breach Of A Non-Competition Clause

A non-compete clause in a contract ensures that an employee, contractor, or partner agrees not to work for or start a similar business.  A business generally does this to ensure that a former employee or partner will not use confidential information for their own gain or for the gain of a company for which they work. In the state of Florida, these kinds of agreements are generally enforceable for up to two years. They must also protect a legitimate business interest of a company.

A legitimate breach of a non-competition clause may include taking a list of customers’ phone numbers from an old company to a new company or sharing trade secrets with a competing company.

If you have had an employee violate a non-competition agreement, you will want to talk to your attorney about the best course of action to take. A lawsuit may result in bad publicity for the company. Most companies will choose to settle such matters out of court.

Independent Contractor Disputes

If a contractor has failed to live up to the job that they agreed to do for you, you may be able to sue them for breach of contract. If they did not finish a job or if they did exceptionally shoddy work, it may be in the best interest of a company to sue them.

Business lawsuits are complex and they take the knowhow of a good attorney. If you have the proper representation, you should be able to get a worthy settlement. Click here for more information.

If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.

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