Dunham LLPDunham LLP2024-03-13T08:56:41Zhttps://www.dunhamllp.com/feed/atom/WordPress/wp-content/uploads/sites/1203436/2019/10/dunhamOG-75x75.jpgOn Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=532482024-02-22T14:28:38Z2024-02-22T14:28:38Zmanaging public perception and safeguarding your company’s image in the event of litigation.
Communicate transparently
Transparent communication with stakeholders, including employees, customers and investors, is essential. Providing clear and accurate information about the situation helps to maintain trust. It's important to balance transparency with legal constraints by offering reassurance about the steps being taken to address the issue without compromising the legal strategy.
Maintain operational excellence
Ensuring that your company continues to deliver high-quality products or services during litigation demonstrates resilience and reliability. Maintaining operational excellence reinforces a positive image of your company, which shows that legal challenges don’t detract from your business’ commitment to your customers and stakeholders.
Leverage professional support
Engaging with a public relations (PR) professional can be beneficial in managing the narrative around the litigation. PR experts can help craft messages that present the company’s side of the story in a thoughtful and strategic manner, potentially mitigating negative publicity. The campaigns should accurately reflect the situation, but the method of relaying it can greatly impact public perception of your company.
Focus on long-term relationships
Fostering and maintaining positive relationships with all stakeholders can cushion the company against reputational damage. This involves regular engagement to ensure stakeholders feel valued and informed throughout the litigation process.
Litigation is a challenging ordeal for any business. It carries the risk of significant financial implications and potential damage to a company’s reputation. Thankfully, businesses can navigate these challenges more effectively by understanding and implementing strategies to protect their image. Working with a legal representative who can offer guidance about every aspect of the litigation process is generally wise, given how much tends to be at stake in such matters.]]>On Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=532472024-02-16T20:03:49Z2024-02-16T20:03:49ZA real property lien
Someone who owns their own home may feel as though they don't need to worry about their credit anymore. They may not care if they have numerous accounts showing past-due status on their credit report or lenders trying to take them to court for failing to make payments. However, their home can potentially serve as a source of leverage for frustrated creditors. A debt-related judgment can sometimes lead to a lien against real property. The debtor could then need to pay the creditor in full before they can transfer the title to someone else or move forward with a refinancing attempt.
A levy against property
The law in Texas authorizes judges to grant a levy against personal property, such as bank accounts. A levy allows a creditor to lay claim to certain resources, including the balance in someone's financial accounts. Levies can lead to a lump-sum payment in some cases if creditors can identify resources worth a significant amount.
Garnishment of someone's wages
When someone doesn't own their own home or much valuable property, creditors may need to look at their income instead. Texas law permits the garnishment of someone's wages to force the repayment of certain financial obligations. Wage garnishment can lead to a slow but steady stream of revenue for a creditor who cannot convince a debtor to make voluntary payments.
Although it can take months to complete the process, many creditors frustrated by less aggressive collection efforts may find that a collections-related lawsuit is the best option for securing repayment. Initiating a lawsuit against a recalcitrant debtor can lead to numerous viable solutions for an unpaid debt.]]>On Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=532322023-12-15T20:37:16Z2023-12-15T20:37:16ZThe business may need to file a lawsuit
Occasionally, employees might forget about a non-compete agreement or assume that a company will not enforce the agreement. Such assumptions could lead to a worker unintentionally violating a non-compete agreement. If the company discovers the violation, they may send a warning letter to the former employee advising them of the infraction. Occasionally, people cease their unfair competition when notified of the violation. Other times, they will double down and assert that they have every right to start their own business or work for a competitor.
The company that formerly employed them must then decide between ignoring what could be a major breach and litigating. Initiating a lawsuit to enforce a non-compete agreement can be a viable solution or an organization. Judges in Texas can uphold non-compete agreements provided that they have appropriate limitations integrated and meet other necessary legal standards. The agreement should be part of a valid contract, and the worker should typically receive something of appropriate value given the concessions they have made. Although most organizations do not like the idea of suing a former employee, doing so might be the best way to prompt them into voluntary compliance.
The vast majority of business-related lawsuits settle outside of court. Someone facing litigation might agree to enter negotiations with their former employer or cease the activity that violates the terms of their non-compete agreement. If a settlement or compromise is not possible, then the worker and their former employer may each need to present their side of the case to a judge.
A Texas civil law judge can uphold a non-compete agreement. They can issue an injunction preventing future infractions or even award a business financial damages. Reviewing the contract in question with an attorney and documenting the infraction are good initial steps to take when there is a dispute about a non-compete agreement in Texas.]]>On Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=532312023-12-07T13:54:07Z2023-12-07T13:54:07ZPromising more than one can provide is a risk
Over-promising and under-delivering can lead to criminal charges for financial professionals. Ponzi schemes are a perfect example. Historically, there have been several massive cases of securities fraud that grew in scope because of the promise of sizable financial returns.
Investors were so eager to maximize the profits derived from investing that they may have failed to do their due diligence. A Ponzi scheme is one form of securities fraud that begins with a promise of high returns on investments. People trust in a professional's track record when they claim to have yielded massive returns for prior or existing clients. Those returns come from paying clients with the capital secured from new investors instead of actual investment returns. Regardless of how many new clients someone brings into a Ponzi scheme, inevitably they will owe returns to more people than they can pay and the scheme will fall apart.
Even if someone does invest as promised, they may not be able to meet the expectations of clients demanding high returns and could end up accused of misrepresenting what they can offer investors. Making concrete statements indicating a specific rate of return on investments, particularly if someone promises to return profits well beyond those reported by most investment firms at any given moment, could open someone up to allegations of securities fraud because of that financial misrepresentation.
Everything from statements made during meetings with investors to marketing materials could contribute to the allegations against an investment professional unable to meet the expectations of those utilizing their services. Someone investigated for securities fraud due to a high-return investment scheme could face criminal prosecution that could effectively end their career.
As a result, mounting a thorough defense to allegations of financial misconduct can help professionals preserve their careers and reduce the likelihood of a criminal conviction.]]>On Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=532302023-10-20T13:10:44Z2023-10-20T13:10:44ZWhy honesty is the best policy in real estate
In real estate, withholding information about property defects is a risky game. Prospective buyers rely on the information provided to make informed decisions, and a failure to disclose can lead to misunderstandings and disputes. One of the fundamental elements of a successful real estate transaction is trust. Buyers need to trust that they are getting accurate information about the property they’re interested in. Concealing defects erodes this trust and can lead to dissatisfaction.
Real estate agents also face potential liability issues when they fail to disclose property defects. To help protect their reputation and avoid legal problems, agents should always encourage sellers to be forthright about any known issues.
Understanding the legal ramifications of failing to disclose
If a seller conceals property defects, it can be considered a breach of the sales contract. The buyer may have the right to withdraw from the deal or seek compensation for the undisclosed issues. Moreover, concealing property defects can be considered fraudulent misrepresentation, a serious offense. This can result in a lawsuit and substantial financial penalties.
Real estate agents and sellers can suffer significant damage to their reputations if they’re involved in cases where property defects were not disclosed. Building and maintaining a good reputation is crucial in the real estate industry.
Impact on buyers
Buyers are at the forefront of any real estate transaction, and their experience can be negatively affected when property defects are not disclosed. Undisclosed property defects can lead to unexpected repair costs for the buyer. This can strain their finances and lead to buyer’s remorse. Discovering property defects after the purchase can also cause emotional stress and dissatisfaction. Buyers may feel that they were taken advantage of, inspiring them to take legal action.
Have you realized that your real estate seller failed to disclose property defects? If so, seeking legal guidance is important, as a legal professional can help you chart the most effective way forward.]]>On Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=532052023-08-26T00:10:18Z2023-08-26T00:10:18ZBusiness disparagement may lead to litigation
Freedom of speech is a very basic value upheld by the courts and the laws across the country. However, just because the government can't directly prosecute an individual for speaking or publishing something does not mean that other parties impacted by those actions have to stand by without recourse.
Those affected by the misconduct of others often have a right to ask the Texas civil courts for compensation or to intervene and prevent future actions. A business disparagement or defamation case brought in accordance with Texas law could result in financial compensation for the business unfairly maligned by others. A successful suit could also result in a court order to remove online content or add new contacts to claims made about the business.
Generally, disparagement or defamation claims require evidence that the claims are untrue. Both outright fabrications and malicious exaggerations that harm a business's standing with the community could constitute defamation or disparagement and leave the party making those accusatory or negative statements open to civil action.
Although there are people who will claim that any publicity is good publicity, a brand's reputation can have a direct impact on how many customers it attracts and even the caliber of employees that it can hire. Identifying and fighting back against business disparagement can help owners and executives seek accountability for those who want to harm their company by damaging its reputation by vocalizing claims that are simply untrue.
]]>On Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=532042023-08-11T01:05:46Z2023-08-11T01:05:46ZModern securities fraud takes on many different forms, but the three below are among the most broad-reaching and common forms of securities fraud.
Ponzi schemes
Perhaps the best-known form of investment fraud is the notorious Ponzi scheme. Often a single investor will make promises about returns to clients that their financial records seem to support. However, instead of actually making smart investments, what they do is take the money invested from new clients to pay returns to old clients. By the time people uncover Ponzi schemes, the majority of the invested resources may already be long gone.
Insider trading or pump-and-dump schemes
Sometimes, Securities fraud does not involve mismanaging or misappropriating the funds provided by a single investor or entity but rather manipulating the overall market. Insider trading occurs when one party with access to non-public information tries to leverage that knowledge for personal financial gain. They may buy or sell stock because they know about an upcoming bankruptcy filing or merger that will have major economic consequences. Other times, the manipulation involves artificially inflating public sentiment toward an organization or investment, often by generating online chatter. So-called pump-and-dump schemes convince numerous parties to invest in stocks or businesses with minimal value while others sell their investments for a high return.
Pyramid schemes
This devastating form of securities fraud involves entire organizations structured to take advantage of low-level investors and those with entrepreneurial dreams. Pyramid schemes are different from direct marketing and sales in that those that invest in theory make returns on what other people sell as well, meaning that there is an incentive for people not to conduct sales so much as there is to bring in new investors who will sell. Inevitably, those on the bottom tier or late to join the organization will end up investing money with little hope of any return on those investments.
Those taken advantage of in a securities fraud scheme can sometimes take legal action against the individual or business that engaged in fraud. Being able to identify securities fraud when it occurs is often the first step toward pursuing economic justice from those who have engaged in financial misconduct. Seeking legal guidance is usually the second.]]>On Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=531832023-06-25T22:11:30Z2023-06-25T22:11:30ZUnspoken or unclear expectations
One of the biggest mistakes that people make when negotiating a contract involves the use of boilerplate documents. Instead of discussing every aspect of the agreement in detail, they print paperwork that they found online, add no real details beyond names and dates and then expect to have the same protection that they would after signing a customized contract. Whether someone expects a certain standard for the products or services that they will receive or wants to commit to a specific timeline, they need to very clearly communicate those expectations to the other party both during the negotiation process and then in the terms of the contract itself.
Forgetting to be flexible as necessary
Yes, contracts should absolutely include very clear and specific requirements of the parties signing, but there typically also need to be some provisions that allow for flexibility in the future. Force majeure clauses are an example, as they permit a delay in contract performance or the cancellation of an agreement when circumstances outside of someone's control prevent them from fulfilling their agreement. Working in clauses that allow someone to delay contract completion or renegotiate terms because of supply chain issues are also examples of how someone can account for unpredictable challenges in the future.
Not inspiring any accountability
An attempt to handle contract disputes may sometimes lead to a very underwhelming resolution. Regardless of how inconvenient and frustrating one party's breach of the contract was, the other party may have a hard time proving that there were any financial losses generated by that failure and may therefore be at a disadvantage when attempting to take legal action. Having clauses in a contract that impose penalties for non-performance or non-payment can be one way to ensure that there is compensation available if the dispute ends up going to court. It can also provide leverage during negotiations.
Drafting contracts that empower all parties in the event of a dispute can lead to a faster resolution if there are issues with the agreement later. Making this effort could even prevent disputes from damaging the working relationship between those who signed the contract. As a result, seeking legal guidance proactively is often a good idea.]]>On Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=531772023-06-12T11:25:47Z2023-06-12T11:25:47ZDon’t react impulsively
Discovering that your business partner has breached a contract can evoke strong emotions, such as anger, frustration or betrayal. However, it is crucial not to let these emotions dictate your actions. Reacting impulsively can potentially worsen the situation and harm your long-term business interests. Instead, it’s essential to approach the problem with a clear and rational mindset.
Don’t ignore the issue
While it may be tempting to avoid confronting the breach of contract, ignoring the issue will only exacerbate the problem. Failing to address the situation promptly can weaken your legal position and undermine your ability to seek appropriate remedies. Ignoring the breach may also signal to the breaching party that their actions are acceptable, potentially leading to further violations in the future.
Don’t violate the contract terms yourself
In response to a breach of contract, some individuals may be tempted to retaliate by violating their own contractual obligations. Engaging in such behavior can result in severe consequences and weaken your position in any legal proceedings. It’s crucial to act in accordance with the terms of the contract and maintain your integrity, even under challenging circumstances.
Don’t communicate solely through verbal exchanges
While it may seem convenient or familiar to address the breach of contract through verbal exchanges or informal conversations, it’s essential to document all communications related to the issue. Verbal agreements can be challenging to prove in court; you’re better off having a written record of the discussions and correspondences that can significantly strengthen your case should legal action become necessary.
Dealing with a breach of contract by your business partner can be a challenging and distressing experience. However, by avoiding certain actions and following the proper steps, you can help protect your interests effectively and seek appropriate remedies accordingly.]]>On Behalf of Dunham LLPhttps://www.dunhamllp.com/?p=530982023-04-17T13:31:17Z2023-04-17T13:31:17ZThey could seek damages
Patent infringement litigation is a common response to discovering a major intellectual property violation by another company, especially if the organization infringing on the patents does not admit wrongdoing or refuses to stop. It may be necessary to go to court to have a judge prevent one business from continuing to infringe on the patent of another. A judge could also potentially award the patent holder damages based on the scope and impact of the infringement that occurred.
They could negotiate licensing arrangements
Sometimes, patent violations end up being beneficial for both of the organizations involved. The party that holds the patent can negotiate a licensing agreement that will compensate the company for the use of its intellectual property. The business infringing on the patent will benefit by gaining lawful access to the patented idea, process or product.
Typically, enforcement efforts require that an organization proactively monitor its competition to spot warning signs of patent infringement and other intellectual property violations. Providing proper written notice to the infringing party will also be important. The sooner company can identify and address serious patent infringement issues, the less likely the company will be to suffer lasting financial losses related to that infringement.
Timely action in response to patent infringement executed with the assistance of an experienced legal professional can help to protect an organization's intellectual property and its market share.]]>