Pay, or Else: How forcing a debtor into bankruptcy is a viable collection strategy

January 14th, 2010 by admin | No Comments

Having a hard time collecting money from one of your customers? Don’t want to subject yourself to a long, complicated and sometimes expensive lawsuit?

Depending on the situation, you may have an interesting, little-known option: Force your customer into involuntary bankruptcy and collect when the assets of your customer are liquidated. READ MORE

Halt irreparable damage to your business by filing for emergency injunctive relief

January 14th, 2010 by admin | No Comments

A salesperson quits, goes to a competing firm with your customer list and begins soliciting your customers. A competitor falsely advertises that your product causes injury to children. Must you sit back and wait months for your day in court while your company suffers irreparable harm? The answer to that question is a resounding “no.” Injunctive relief is sometimes the only way to prevent irreparable injury to your business. READ MORE

E-mails and litigation: What companies need to know

January 14th, 2010 by admin | No Comments

When companies, or their employees, become entangled in litigation, all e-mails become evidence.

How have e-mails become potential sources of litigation for companies?

Every e-mail message has the potential to become evidence in a lawsuit because it documents a communication between people. This is especially important because people are often careless about what they put in e-mail messages. READ MORE

Spoliation of evidence: How the destruction of records can result in a judgment for or against your company

January 14th, 2010 by admin | No Comments

Spoliation is the intentional or negligent withholding, hiding or destruction of relevant evidence in a legal proceeding.

What types of evidence are most susceptible to spoliation claims?

Spoliation occurs when a company has lost or destroyed evidence that it knew — or should have known — to preserve for a lawsuit. Awareness of potential litigation imposes a duty on the manager or the corporate officers to preserve evidence that may relate to that lawsuit. READ MORE

Tough times can force your customers to seek legal protection.

January 11th, 2010 by admin | No Comments

Perhaps the only thing worse than a customer whose payments are 60 days overdue is one who notifies you that it is declaring bankruptcy. What you do in the days after a debtor declares bankruptcy has a major effect on what, if anything, you collect.

If I hear that a client is declaring bankruptcy, what should I do first?

The safest thing is to confirm that filing by contacting the debtor and obtaining a case number and/or name and telephone number of the debtor’s attorney. Alternatively, most attorneys can confirm the filing through the bankruptcy court’s online filing system, PACER. READ MORE

Contract pitfalls: Why companies should pay attention to boilerplate

January 11th, 2010 by admin | No Comments

They say no one ever reads the “fine print.” But when it comes to boilerplate, attention is necessary.

What is boilerplate?

Boilerplate is the colloquial term for all of those miscellaneous provisions that typically appear at the end of most contracts or other written agreements. Common examples include: notice provisions, governing law, severability, assignment and counterparts. READ MORE

Minimize financial risk: Avoiding successor liability after an asset acquisition

January 8th, 2010 by admin | No Comments

What is successor liability?

Successor liability generally describes the result of a court’s application of various legal theories to an acquisition transaction to hold the buyer responsible for liabilities the buyer did not explicitly agree to assume. Two of the significant theories of successor liability include the de facto merger doctrine and the continuity of enterprise doctrine. READ MORE