This recap blog was written by Curnutt & Hafer, LLP, a PLC member of the Greater Arlington Chamber of Commerce as a part of our Business Resource Sessions.
10 Ways to Avoid a Lawsuit
(or Win it Before it Happens) – A Business Trial Lawyer’s Perspective
Kelly’s presentation, “10 Ways to Avoid a Lawsuit (or Win it Before it Happens) – A Business Trial Lawyer’s Perspective” offers information and insights into preventing legal issues before they can even arise. He draws on his experience in business formation and disputes, oil & gas, serious personal injury, family law, and appeals. These tips can apply not only to individuals, but small and large business owners, and public and private entities.
When it comes to contracts, a handshake is nice, but probably not enough. It’s always a good idea to memorialize the terms of your agreement to writing, whether it’s a formal contract or even a written email. Memories fade, the entities involved may change ownership, and the person you know and trust that you worked with on the deal may retire, move or even pass away. In some cases, such as a real estate transaction, a written contract is required to be enforceable. Although it’s possible to find a form contract online, it may not include all the nuances that you really should cover to protect your interests. Having an attorney review or even draft your agreement could prevent misunderstandings or even a lawsuit.
Collecting fees and invoices for services rendered is not always as simple as we’d like. The more time that passes from the time the service is provided, the harder it can be to collect. To avoid misunderstanding and delay, have a written, clear collections policy in place and follow it consistently to avoid having to hire an attorney to collect a stale debt.
In the area of employment, it’s prudent to determine the nature of the employment right from the start. An independent contractor is not an employee, and more likely is hired for a project with a finite time frame and scope. However, if someone is working part-time, but on a regular schedule and you control the details of how they do their duties, chances are they should be categorized as a part-time employee. This is important for a number of reasons, including whether you should be paying payroll taxes on them, or whether they are handling their own tax filing as an independent contractor.
Although Texas is an “at will” state, meaning an employee can be terminated or resign “at will”, there are still things to consider. You aren’t permitted to fire someone for an illegal reason, such as based on their race, gender, or age, as examples. It’s always wise, if an employee isn’t performing up to expectations, to provide feedback and counseling, and write out a performance improvement place so that everyone is clear on expectations. That way, if you do need to part ways, it doesn’t come as a total surprise.
With some issues, if you’d just not sure how to proceed or you have a gut feeling that something isn’t right, it’s never a bad idea to consult with an attorney to make sure you’re on track. One hour of counseling or planning with a lawyer you trust may ultimately help you prevent a long and expensive lawsuit down the road.
For more information feel free to contact Kelly at KCurnutt@CurnuttHafer.com or visit him online at www.CurnuttHafer.com.