Business Litigation
3-Things Never to Include in an Operating Agreement
An Operating Agreement that includes three things is destined to cause problems. My practice is 100% litigation and trial of business and commercial disputes. However, I have had the same conversation with new clients hundreds of times about how they ended up in my office. Many cases that end up in litigation were destined for…
Read MoreAttorney’s Fees for the Wrong of Another
Most states, including Colorado, follow the American Rule when it comes to awarding attorney’s fees. This means that attorney’s fees are not awardable to the winning party in a lawsuit unless a contract or statute allows it. Attorney’s fees are also awardable for certain constitutional claims. The doctrine of wrong of another is a further…
Read MoreCan I sue a dissolved company?
A dissolved company can be sued. Under C.R.S. §7-80-803, a dissolved limited liability company continues in existence for the purpose of winding up its affairs and discharging of liabilities. Corporations similarly continue their existence for winding up the affairs of the company. The dissolution only prohibits the company from engaging in future transactions – not…
Read MoreFrivolous Lawsuits Defense
For a small business a frivolous lawsuit is not just a nuisance. If it’s not handled competently and efficiently – it can significantly impact profitability. There have been several noteworthy frivolous lawsuits reported. People contesting the authority of the U.S. Government to levy an income tax (the 16th Amendment is pretty clear on this). The lawsuit…
Read MoreBusiness about to be sued? Here’s what to do.
Don’t panic. I’m not sure there are many situations where falling into a panic is useful. But, it’s definitely not helpful if you think you’ll be sued. Keep a level head. You’ll get through this. Don’t be an Enron. In the days leading to the collapse of the energy and commodities behemoth Enron, the company and…
Read MoreWhy I Don’t Write Demand Letters
Occasionally, a potential client calls me and asks if I would “just write a demand letter” to the recalcitrant company or person on the other side of a dispute. I don’t do this. When I’m hired to pursue a claim for a client, I will rarely send a demand letter before filing the lawsuit. The reason is simple: it’s a waste of time and frequently puts clients at a disadvantage.
Read MoreContingency Fees and Business Litigation
A Fortune 500 company may have a sizeable legal department and a significant budget for legal expenditures. Most small businesses don’t have legal departments or budgets to hire lawyers to pursue legitimate claims. I frequently talk with small business owners about a potential lawsuit but they’re weary of pursuing it because of the cost of…
Read MoreCredibility in the Courtroom
I was in a mediation recently with a retired judge as the mediator. He is a respected jurist that served for more than 40-years in various judicial roles. During the downtime between the long back and forth of the mediation, we talked about his time on the bench, the cases he decided and the lawyers…
Read MoreReal Estate Deals Gone Bad
While most people today use a mortgage to purchase commercial and residential real estate, there is an anachronism still used today to buy real estate without a mortgage. It’s commonly referred to as a “contract for deed”, “installment land contract” or sometimes a “land sale contract.” The purpose of these real estate agreements is…
Read MoreWhen Out of State Companies Can’t Sue in Colorado
There is a scenario where an out of state company can’t sue in in Colorado. Colorado law prohibits an out of state company from defending or maintaining a lawsuit against a Colorado resident unless they have filed certain paperwork with the Secretary of State: No foreign entity transacting business or conducting activities in this state…
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