Business Litigation

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…

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…

Sometimes a LLC may refuse to take legal action to pursue a legal claim of the LLC. A derivative action allows a member of the LLC to sue on behalf of the LLC when it refuses to act. The general rule is an individual member of an LLC cannot maintain a personal action against a…

Should I file a lawsuit? My entire practice is filing and defending business and commercial lawsuits. So, I get this question a lot. Deciding to file a lawsuit is a business decision as much as a legal tactical analysis. For any case, it’s a three-legged stool. First, there has to be liability – a legal…

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…

An LLC is a legal entity created by statute. Therefore, the rights of LLC members are governed by statute. The rights and responsibilities of managers of an LLC are also controlled by statute. While the members of an LLC can change some of these by agreement, some of these cannot be changed even by agreement. Duties…

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…