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Contrary to popular belief, most business disputes do not go to trial. If your business is facing a dispute, litigation may not be the only option to resolve it. You may be able to resolve your dispute with the help of alternative dispute resolution (ADR) methods. If you do not understand your options for resolving disputes, you may need to seek the guidance of an experienced business law attorney. Our team of attorneys at Robinson Bradford LLP can evaluate your situation to help you decide on the best course of action in your case. Also, we pride ourselves on guiding our clients towards success. We represent clients with all types of alternative dispute resolution options and litigation in Stockton, California, as well as Temecula and Costa Mesa. What Is Alternative Dispute Resolution (ADR)? Alternative dispute resolution refers to methods that allow the parties to resolve disputes less formally outside of the courtroom. As the name implies, ADR methods are an alternative to litigation. When resolving a dispute through ADR, parties to a dispute work with a neutral third party (a mediator) to negotiate a mutually agreeable solution or let a neutral decision-maker (an arbitrator) make a legally binding decision for them. According to the U.S. Department of Labor, alternative dispute resolution (ADR) provides a forum for the parties to a dispute to work out a voluntary agreement without having a judge to decide for them. ADR methods are commonly used to resolve both employment and business disputes. Common Alternative Dispute Resolution Methods Three of the more commonly used alternative dispute resolution methods are: Mediation. This ADR method allows the parties to work with a neutral, third-party mediator to resolve their dispute. The mediator facilitates communication between the parties to a dispute to help them reach a voluntary and mutually acceptable agreement. However, the mediator does not make the decision for the parties. Arbitration. This ADR method is slightly different from mediation. The parties refer their dispute to an arbitrator or a panel of arbitrators who apply the law to the facts of the dispute and make a legally binding decision for the parties. Unlike mediators, who do not have decision-making power, arbitrators can decide the case when the parties cannot agree on their own. Med-Arb. Med-Arb is a hybrid ADR method that combines mediation and arbitration processes. As the name implies, the parties first agree to mediate their dispute. If their attempts to resolve the dispute through mediation fail, their case will proceed to arbitration, where an arbitrator will make a binding decision for the parties. If you are not sure which ADR method to choose to resolve your dispute, you must contact a knowledgeable attorney to explore your options. Our business law attorneys at Robinson Bradford LLP help businesses in Stockton, Temecula, and Costa Mesa resolve their disputes through ADR methods or litigation, depending on the facts of the dispute and the parties’ willingness to negotiate. What Are the Benefits of ADR? There are many benefits of choosing alternative dispute resolution over litigation, including but not limited to: Cost. ADR methods such as mediation and arbitration are generally much more cost-effective compared to taking a dispute to trial. Time. Litigation can be extremely time-consuming when resolving business disputes. ADR is generally quicker than going to court. Depending on the complexity of the dispute, the litigation proceedings could last for months or years. Disruption. Pending litigation can disrupt your business operations in different ways. Choosing ADR methods, on the other hand, is generally less disruptive. Publicity. Litigation is public, which means your business and its operations will be subject to public scrutiny. ADR methods such as mediation and arbitration are private forms of dispute resolution. Even if your business dispute does not go to court, you still need an attorney to protect your interests and help you navigate the dispute resolution process. Discover Your Options The business law attorneys at Robinson Bradford LLP recognize that business disputes are sometimes best resolved through alternative dispute resolution methods such as mediation and arbitration. ADR methods are generally less expensive and time-consuming and bring less disruption to businesses. Get a free consultation today to discuss the available ADR methods in your particular case. Our team has the knowledge, resources, and experience necessary to assist your specific situation in Stockton, California, as well as Temecula and Costa Mesa.
Business competition can sometimes be ruthless, but just competing with another entity for customers, sales, and profits is not generally illegal. However, both California contract law and tort law allow for legal action when a third party wrongfully interferes with a contract or ongoing business relationship to the detriment of the affected party. This type of action falls under the general label of tortious interference. A tort, unlike a crime, is a civil wrong that can be addressed in civil court. Generally, there are three types of tortious interference recognized in California. One is interference with contractual relationships (IWCR). Another is interference with prospective economic advantage (IWEP). A third type, not based on intentional acts, is negligent interference with an economic advantage when no contract is involved. If you feel your business is being harmed by tortious or negligent interference, contact the business law attorneys at Robinson Bradford LLP. With offices in Stockton, Temecula, and Costa Mesa, we proudly serve business clients in the Golden State. With a combined half-century of experience, our attorneys can examine the circumstances of your claim, advise you of your legal options, and help you mount any legal or other action necessary to protect your business interests. Understanding Tortious Interference Perhaps the most famous case of tortious interference in the United States came in 1984 when Texaco interfered with efforts by Pennzoil to purchase Getty Oil. Pennzoil prevailed and was awarded $10 billion in economic and punitive damages, with the two parties later agreeing on $3 billion. Tortious interference is not a single statute on the books in California or any other state but evolves through court cases and precedents set. In fact, as recently as 2020, the California Supreme Court was still interpreting the requirements for proving any type of tortious interference. In Ixchel Pharma, LLC v. Biogen, Inc., the court ruled that in any type of tortious interference claim, the plaintiff must show “independent wrongfulness” by the defendant or interfering party. Otherwise, it said, legitimate business competition could be chilled and restrained. Types of Tortious Interference As referenced earlier, there are three forms of tortious interference – two intentional, one negligent, one involving contracts, and the others ongoing or prospective business relationships. These are: INTENTIONAL INTERFERENCE WITH CONTRACTUAL RELATIONSHIPS: In this type, there needs to be a written or oral contract governing the activities of the parties to the contract. For instance, Company A may contract with Company B to supply chips to power its line of manufacturing plant robots. Company C steps in and offers Company B more for its chips. B agrees and either shortchanges its shipments to A, eliminates them altogether, or says it won’t comply until the higher price is met. C has intentionally interfered with a contracted agreement. INTENTIONAL INTERFERENCE WITH PROSPECTIVE ECONOMIC ADVANTAGE: Here there may not yet be a contract, but A and B are in the stages of agreeing on a business plan that will benefit both. C interferes to siphon off any prospective advantage to itself. The business arrangement between A and B may already be ongoing, and C’s actions threaten to or actually do disrupt the advantages enjoyed or envisioned by A and B. NEGLIGENT INTERFERENCE WITH PROSPECTIVE ECONOMIC ADVANTAGE: Here the interference by C may result in the same loss of advantage by A and B, or one or the other, but the interference need not be shown to be intentional. The standard is that the defendant, or interfering agent, knew or should have known about the relationship and economic prospects enjoyed by A and B but interfered anyway. Proving Tortious Interference If you go to court and prevail, you can generally recover damages, usually lost profits. Punitive damages are also available if the interfering party acted with “malice, fraud or oppression.” In other words, the defendant not only intended to interfere but also aimed to cause deliberate harm. In any tortious interference lawsuit, the plaintiff alleging the interference must show: There was an existing contract or business relationship based on economic necessity. The interfering party knew or should have known about this relationship. The defendant, intentionally or wrongfully, interfered with that relationship. The interference caused economic and/or other losses to the plaintiff. Turn to Skilled Legal Guidance If you suspect someone or another business is interfering with your contracts, business relationship, or prospective economic advantage, you need skilled and experienced legal counsel on your side to assess the situation and propose legal options going forward. The business law attorneys at Robinson Bradford LLP stand ready to help you with any tortious interference claim. Not every instance needs to go to court, but all need to be dealt with and resolved, either through negotiations and confrontation or filing a lawsuit. Contact Robinson Bradford LLP when you feel your business is illegally interfered with in Stockton, Temecula, or Costa Mesa, California.
Building a successful company is a tough endeavor. You face many obstacles, including competition for customers, cash flow problems, supply chain issues, and employee recruitment and retention challenges, to name a few. Odds are, yours will be one of the 90% of businesses that face a lawsuit at some point (if you haven’t already become a part of that statistic). What you do when your business is being sued may be critical to your company’s survival. A failure to respond in the right way and protect your business in the process may lead you to shutter your business and your entrepreneurial goals with it. At Robinson Bradford LLP, we have been helping businesses protect themselves for decades in Stockton, Costa Mesa, and Temecula, California. As a small business, our firm is acutely aware of what’s at stake. As experienced business litigation attorneys, we are dedicated to helping our clients be successful when facing legal challenges. What Business Lawsuits Are Common? Coming in at 12 million annually, contract-related lawsuits are the most common type of business litigation. You may be sued by customers or clients, employees, vendors, landlords, or any party with whom you sign any type of contract or agreement. Personal injury lawsuits are common. Slip-and-fall and other premises liability lawsuits are frequent among businesses with brick-and-mortar locations. Auto accidents involving you or your employees being accused of causing a crash while in the agency of your business occur often. Moreover, as legal protections continue to increase, lawsuits related to discrimination are common, filed primarily by customers, clients, tenants, and employees. Employees may also file workers' compensation claims or lawsuits alleging workplace harassment. In some types of businesses, violations of intellectual property laws are frequent grounds for lawsuits. What Should I Do If My Business Is Sued? There are certain precautions you should take when your business is being sued. These seven steps might protect your business from crumbling under the stress of litigation. When you are served with notice of the filing of a lawsuit that lists you as a defendant, note all deadlines included therein. If there are no specific deadlines mentioned, that does not mean you can ignore it. In California, you generally have 30 days from the date of service to file a formal response with the court in which you are being sued. If you fail to respond in a timely manner, the plaintiff can obtain a default judgment against you. When you are served, or in advance of being served if you know someone intends to sue you, immediately hire an experienced California business litigation attorney. Your attorney will ensure a timely and appropriate response to a lawsuit and will help you prepare a defense against it. If you have insured your business against the type of lawsuit filed, notify your insurance company. For example, if it is a personal injury claim arising from a slip-and-fall, contact your premises liability insurer. If the lawsuit was filed by an employee injured at work, contact your workers’ compensation insurer. Be careful with what you say or do outside the legal process. You need to avoid making the situation worse by committing slander or libel. Do not use social media or any type of communication to air your grievances with the plaintiff. All communication of any kind should be handled via your attorney. If not, you risk having your words and actions used as evidence against you in court. Begin gathering records, correspondence, contracts, and other documents relevant to the allegations the plaintiff has made against you. Your attorney will need these to develop a defense. Conduct your own internal investigation of the allegations and use your attorney’s expertise to help. Remember that your employees and those acting in the agency of your business are your business. As such, you are responsible for their actions. It is important that you rely on guidance from your attorney to make sure you do not make the situation worse. This is especially true if the plaintiff is a current or former employee. Be completely honest and forthcoming with your attorney. Remember that attorney-client privilege applies to your communication with your lawyer, and your legal counsel cannot adequately defend you if you fail to provide any and all information relevant to the lawsuit allegations. Your attorney has only your best interests at heart and will guide and counsel you with those in mind. What Should I Not DonWhen My Business Is Sued? If your business is sued, do not ignore the lawsuit and do not take steps to attempt to conceal evidence or proof of the plaintiff’s allegations. If you do find clear evidence that could support the allegations, do not just continue business as usual. Talk to your attorney about taking steps to rectify the situation immediately. It could curtail the subject lawsuit, but it might certainly keep someone else from filing a similar one in the future. For example, if a new employee policy will keep an event from recurring, implement it right away. Finally, do not draw attention to the lawsuit, especially by lashing out at the plaintiff. Don’t Risk Your Business. Call Now. The odds of having your business sued are great, but the odds of losing your business because of it don’t have to be. The best way to reduce the risks of negative impacts on your business is to hire an experienced and tenacious business litigation attorney right away. If your business is being sued or may be sued in Temecula, Stockton, or Costa Mesa, California, call Robinson Bradford LLP now. We can help.