Business Litigation for Businesses and Employees

breach of contract

A breach of contract can result in a very serious legal issue.

Every type of business involves complicated legal processes, such as contracts, workers’ compensation, and many other complicated issues.  With concerns such as this, things can often become quickly complicated.  If either the employee or the company feels as though their contract or a policy has been breached, they can seek to file a civil or business litigation suit.  These issues can often be drawn out and very damaging for all parties involved and should, therefore, be handled by skilled business litigation experts, according to a post for McFarlin Law’s website.

Businesses can be severely harmed by civil litigation suits.  Simple complications, misunderstandings, and clear violations may result in serious legal issues; specifically, suits often arise in areas such as civil rights issues, breach of contract, trade secrets, fraud, misrepresentation, employment disputes, and corporate disputes.  Businesses can either accuse someone of breaching a contract or be the accused; either way, the case can be drawn out and very damaging to the businesses reputation, resulting in long-term affects for the company, both in regards to reputation and financial ramifications.

Employees can also be affected by business litigation cases.  After all, much as businesses are able to play either role, employees can as well; they can either be in violation of breaking a contract, or have had a contract broken by their employer.  Businesses can breach their contracts, dispute proper pay for work and target the individual with discriminatory actions.  In addition to this, any illegal actions taken by the business affects all of its employees and reflects on their reputation as well.  The result can be a loss of pay or employment for the employee.  No matter the size of the company or the size of the offense, it is in the employee’s right to seek fair compensation through civil litigation cases.  Doing so with an attorney skilled in business litigation can result in receiving fair payment for any retributions.

Fiduciary Duties and Businesses

Fiduciary Duties

One’s Fiduciary Duty is to look out for someone’s best interest.

Fundamentally, a fiduciary duty is the legal requirement of an individual to act in the best interest of another.  In this arrangement, all parties that owe this duty are called fiduciaries and those that are owed the duty are referred to as principals.  For example, lawyers have a fiduciary duty to their clients; guardians have the same duty to their wards.  Specifically, in terms of business law, an article from McFarlin Law, LLP notes that directors and officers of a corporation owe a fiduciary duty to the company and to their shareholders.  Disputes, therefore, often arise as a direct result of allegations that an officer or director breached his or her fiduciary duty.  However, these accusations shouldn’t be made or taken lightly; such declarations can have long-lasting financial and professional consequences for the officer or director.

To help officers and directors of corporations avoid such accusations, the article provides several means through which fiduciary duty can be breached. These examples have several themes, starting with a focus on competition; fiduciary duty is breached when an officer choose to start a competing business or help a business competitor.  Funds also account for a large portion of the possible ways to break fiduciary duty.  Many methods are discussed, including mixing business and personal funds, spending corporate funds on things that do not benefit the corporation, and fraud, incompetence or misappropriation of funds.  Finally, a general code of ethics must play a role, as ethical violations or negligent errors also can serve as a breach of fiduciary duty.

In the case that accusations are made, a review will be conducted by the court, which will look at the actions of the officer in question.  The court will have to determine if an ordinarily prudent person would have acted the same way under similar circumstances.  For instance, did the officer act on good faith?  Would someone else have made the same decisions in the same situation?