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Atlanta Business Litigation Attorneys at Robbins Firm

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At Robbins Firm we specialize in business litigation. Call us today to schedule a consultation and find out how we can help you best settle your dispute.

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So you're ready to start your small business in Georgia? One of the best ways to get your competitive edge is by learning about the various laws you'll need to abide.

For business owners in Savannah, Atlanta or Augusta, it's important to understand state and federal laws and know how to proceed when a legal issue develops. LawInfo has the Georgia small business law information you need from paying business taxes to registering intellectual property.

Common Employment Law Issues in Georgia

Employees in the United States possess more employment rights than those in other countries. This means that small business owners who cut corners to save money could face employment lawsuits. While it may be tough to compete in Georgia as a startup or small business, be wary of some of the common employment law issues your peers and competitors often face, including:

Discrimination in hiring, promoting or terminating employees;

Retaliation against employees for obeying the law or reporting employer misconduct;

Misclassifying an employee as an independent contractor or vice versa;

Withholding vacation and overtime benefits from non-exempt employees;

Denying maternity leave to pregnant employees;

Refusing to compensate an employee's work-related injury; and

Demanding a tipped employee to surrender all of their tip money.

Typical Small Business Legal Issues in Georgia

Legal issues crop up for all businesses, be it contracts, taxes or employment. Legal questions and issues will vary widely by industry and it's a good idea to consult a business attorney beforehand. But a small business owner may encounter legal issues such as:

Which legal structure to select (such as a corporation, partnership or limited liability company);

Extending credit and collecting on past due amounts in accordance with Georgia and federal laws;

Protecting inventions and trademarks through intellectual property law;

Maintaining the required level of workers' compensation insurance coverage;

Hiring and managing employees in accordance with Georgia and federal employment laws; and

Complying with health and safety regulations when constructing or preparing a work site.

Georgia Small Business Taxes

Small businesses in Georgia are subject to state and federal business taxes. Most businesses will pay the same taxes while other businesses will be responsible for special business taxes. Additionally, every business is partly responsible for paying some of their employee's taxes.

A few of the taxes you or your business may be responsible for paying include:

Employee withholding tax-Georgia employers are responsible for withholding specific percentages of their employee's income to pay for their federal income, social security and Medicare taxes. Employers must provide employees with their W2, 1099 or G-1003 tax return forms at the end of each tax year for filing.

Corporate income tax-Corporations that do business, own property or receive income in Georgia must pay a six percent tax on their taxable net income. Shareholders of S-corporations are required to pay the corporate income tax on their personal tax returns.

Corporate net worth tax-This is similar to a franchise tax, which many states levy against companies for doing business in those states. The tax can range from $10 for corporations with a net worth of less than $10,001 to $5,000 for a net worth of $22 million or more.

Sales and use taxes-Georgia charges a four percent tax on the sale or use of products within the state. Georgia counties may charge additional sales and use taxes.

Speak to an Experienced Business Law Attorney Today

This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified business lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact an attorney in your area from our directory to discuss your specific legal situation.

Your Next Step:
Enter your location below to get connected with a qualified Business Law attorney today.

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So you're ready to start your small business in Georgia? One of the best ways to get your competitive edge is by learning about the various laws you'll need to abide. For business owners in Savannah, Atlanta or Augusta, it's important to understand state and federal laws and know how to proceed when a legal issue develops.

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Is Your Non-Compete Agreement Enforceable under Georgia Law?

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Is Your Non-Compete Agreement Enforceable under Georgia Law?

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A "Non-Competition Agreement" protects proprietary information, technology or processes by preventing former employees from using them in future employment situations. In 2011, the Georgia legislature amended its Non-Competition Agreement law to establish a better balance between the rights of workers and their former employers. That said, knowledgeable business litigation attorneys should be consulted to ensure any existing Non-Competition Agreements comply with the new law and avoid unnecessary competition by former employees.

Fundamentals of Non-Compete Contracts: Double Sided Protections

Most businesses have proprietary assets such as customer lists, trade secrets, and retention and acquisition strategies that give them an exclusive edge over their competitors. A Non-Competition Agreement allows employees access to those assets while working for the company but prohibits former workers from using them after they leave that job. The Non-Competition Agreement is signed by both the employer and the employee and defines the rights of each to utilize corporate assets for profit after the employment relationship ends.

Georgia Changes its Law

The 2011 Georgia "Restrictive Covenants Act" (RCA) made significant changes to the state's Non-Compete Agreements policies:

In General

Prior law stated that the entire Agreement was unenforceable if any one of its terms was not enforceable. The new law allows courts to strike individually unenforceable terms from the Agreement while maintaining the enforceability of the rest of the document. This change is the single largest modification caused by the law. Accordingly, you should be sure to review your existing Non-Compete document to discover and modify unenforceable elements to comply with the new law.

A Non-Competitive Agreement Protects Both Sides to the Agreement

Protecting Former Employers
* The RCA changes the enforceability requirements of clauses that address the non-disclosure of "confidential information." The new law removes the requirement to include a timeframe associated with non-disclosure clause which prohibits a former worker from acting on the former employer's confidential information. Moving forward, companies will comply with the law so long as they follow the statutory definition of "confidential information."

* The RCA also expands the "non-solicitation of customers" clause to prevent former workers from contacting previous customers known to that employee because - the former worker coordinated that customer's activities:
o The employee gained knowledge of the customer's identity through access to the employer's confidential information
o That employee received compensation while working with the customer within two years of leaving the job

Protecting Former Employees

* The RCA prohibits workers from competing against former employers only when their new job includes:
o Soliciting prospective customers
o Regular engagement in sales activities
o Managing a part or all of a business, including the capacity to manage, hire or fire two or more employees
o Working as a "key" or "professional" employee

Other Essential Elements of the RCA

The RCA does not affect unskilled or non-specialist workers, nor are employees or employers affected who entered into such agreements before January 1, 2011. For them, the old law still applies.

Companies that seek enforcement of a Non-Compete Agreement must respond to an employee's request for clarification within 30 days after receiving the request; That employee can use their failure to do so against them in court.

Get Protected with Sound Legal Advice

Your company's competitiveness relies on keeping its proprietary information private. If you have former employees working at similar jobs in your region and your Non-Compete Agreement doesn't meet the standards of the RCA, they may be using your information to further their new employer's goals. Protect your business today with advice from skilled legal professionals.

ABOUT THE AUTHOR: Jason Alloy
Jason Alloy has over 10 years of experience in handling business disputes and has been recognized as a Georgia Super Lawyer in Business Litigation by Law & Politics, as well as Atlanta Magazine. His significant experience also includes appeals before state and federal courts.

Copyright Robbins Ross Alloy Belinfante Littlefield LLC

Disclaimer: Every effort has been made to ensure the accuracy of this publication at the time it was written. It is not intended to provide legal advice or suggest a guaranteed outcome as individual situations will differ and the law may have changed since publication. Readers considering legal action should consult with an experienced lawyer to understand current laws and.how they may affect a case. For specific technical or legal advice on the information provided and related topics, please contact the author.

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is your non-compete agreement enforceable under georgia law?

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Is Your Non-Compete Agreement Enforceable under Georgia Law?

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A "Non-Competition Agreement" protects proprietary information, technology or processes by preventing former employees from using them in future employment situations. In 2011, the Georgia legislature amended its Non-Competition Agreement law to establish a better balance between the rights of workers and their former employers.

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Atlanta Business Lawyer | Non-Compete and Non-Solicitation Agreements

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The lawyers at Robbins Firm provide skilled employment and business law representation involving restrictive covenants. Schedule a consultation today.

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Robbins Alloy Belinfante Littlefield LLC

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Robbins Alloy Belinfante Littlefield LLC

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500 14th Street, NW
Atlanta, GA 30318

Phone: (678) 701-9381
Fax: (404) 856-3250

https://www.robbinsfirm.com

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Without a doubt, litigation can be expensive and time-consuming. For many businesses, it is simply not a cost-effective means of resolving their disputes. As a result, alternative dispute resolution The term "litigation" typically refers to legal proceedings in court. In other words, one of the parties to a dispute files a lawsuit. Once filed, there are rules regarding how you must proceed, strict deadlines, and various steps along the way. The legal process can be complicated and, depending on the complexity of the dispute, may take months or even years to get resolved. has become increasingly popular and is even considered standard in some industries. However, you need to understand what alternative dispute resolution means for you before agreeing to it. If you are mired in a dispute but are reluctant to file a lawsuit, a business dispute attorney can help you understand your options and what may be the best means for resolving your business disputes.
What is Alternative Dispute Resolution?
Meditation typically involves the parties attempting to resolve the dispute with a trained mediator. The mediator is a neutral party, and their role will be focused on facilitating a resolution. They will not make a decision or determine whether one party is right or wrong. By involving a neutral third party who is solely focused on helping the parties resolve their dispute, mediation can be a great way to solve a problem when the relationship between the parties is fragile or deteriorating.

Each party will summarize the facts and circumstances that have led to the dispute from their perspective.

The parties will discuss potential solutions with the mediator. This may be done with or without the opposing party present.

If the parties agree, they will collaborate on preparing a written agreement. The mediator may offer some guidance in writing the document, but it is primarily up to the parties to decide which terms are appropriate or agreeable.

By contrast, then, alternative dispute resolution (ADR) refers to any method of resolving a dispute outside of litigation. Generally speaking, alternative dispute resolution is less expensive, offers greater flexibility, and is less time-consuming than traditional litigation. For these reasons, it has become a popular option for settling business disputes. However, you should be aware that alternative dispute resolution has some limitations. Accordingly, it is important to understand what methods may be available to you and the implications of pursuing ADR instead of traditional litigation.

There are two main types of ADR that deserve consideration:

Unfortunately, these two terms are often used interchangeably even though they are fundamentally different in several important ways.

What is Mediation?

Mediation is typically voluntary, which means that both parties have to agree to mediate. You can agree to go to mediation at any time during your dispute, even after a lawsuit has been filed. The process is relatively informal but will usually involve holding a conference of some sort, either in-person or via conference or video call. The parties may be represented by counsel but are not required to have an attorney present. The conference will usually incorporate the following elements:

The Advantages of Mediation

Mediation is an attractive option for many parties for several reasons, but it isn't for everyone or every dispute. Below are some of the advantages of mediation that can make it an attractive option:

Despite these advantages, mediation does have its limitations. You should discuss your dispute with a business attorney and carefully consider your options.

When you participate in arbitration, your dispute is heard by an arbitrator who will decide the outcome of your dispute.

Arbitrators are often lawyers and retired judges who can consider complex legal issues.

While arbitration may be less formal than litigation, the proceeding itself can be quite complex. For this reason, the parties engaged in arbitration will often hire attorneys to help them prepare and present their cases at the hearing.

The Disadvantages of Mediation

While meditation is inexpensive and allows for the parties to resolve their disputes on their own terms, there are some disadvantages to the process that you should consider.
As businesses look to control their legal expenses in the event of disputes, mediation and arbitration clauses are becoming increasingly prevalent in all types of business contracts and other agreements such as partnership agreements and executive contracts.
It's important to keep in mind that mediation requires the parties to negotiate. If the relationship has deteriorated or become adversarial, it is unlikely that they will resolve their dispute via mediation.

What is Arbitration?

Arbitration is the second main type of alternative dispute resolution. It is less formal than litigation but more formal than mediation. Many people refer to it as a quasi-judicial proceeding, as it looks more similar to litigation than mediation. Similar to mediation, it is less time-consuming and less expensive than litigation. However, it differs from mediation in some key respects:

Arbitration often involves a much more significant investment from the parties and often carries more severe consequences. However, it is ideally suited for parties that cannot resolve their dispute on their own or for business disputes with complex legal issues. If you are considering arbitration, an Atlanta business dispute attorney can provide you with invaluable guidance.

Alternative Dispute Resolution Clauses

These clauses can be relatively simple but can also be extraordinarily complex. Some of the potential issues you may encounter are as follows:

These provisions can be complex and are often subject to misinterpretation. If you are engaged in a dispute that is heading towards ADR, a business dispute attorney can help you navigate the process.

Frequently Asked Questions About ADR

1. What does voluntary and mandatory mean in the context of ADR?

Voluntary ADR requires that both parties agree to participate in mediation or arbitration. Mandatory ADR, on the other hand, requires the parties to submit their dispute to either mediation or arbitration, typically pursuant to a contract or other agreement. As a result, you may be required to participate in ADR even if you don't want to.

2. What is the difference between binding and non-binding?

When mediation or arbitration is binding it means that the parties agree to be bound by the outcome. This means that you may not be able to file a lawsuit or otherwise appeal the result except in very limited circumstances.

In non-binding ADR, the parties are not obligated to comply with the outcome of the proceeding. Either party may proceed with litigation if they are dissatisfied with the outcome.

Mediation is often non-binding, while arbitration is often binding.

3. Do I need a lawyer to participate in arbitration or mediation?

You are not required to hire a lawyer to participate in either arbitration or mediation. However, you are allowed, perhaps even encouraged, to have a lawyer present at either type of proceeding. Business disputes are often complex and working with a lawyer can ensure the best possible outcome.

4. I'm in a dispute and the other party says we have to go through ADR. Is this true?

This depends on whether your dispute is subject to a contract or other agreement that has a mandatory arbitration clause. If there is no contractual requirement, it is likely that you are not required to go through ADR - you are not obligated to agree to ADR even though the other party would prefer that option.

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What You Need to Know About Alternative Dispute Resolution

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Without a doubt, litigation can be expensive and time-consuming. For many businesses, it is simply not a cost-effective means of resolving their disputes. As a result, alternative dispute resolution The term " litigation " typically refers to legal proceedings in court. In other words, one of the parties to a dispute files a lawsuit.

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If you own or operate a business, you know that sooner or later you will have to face disagreement. Unfortunately, these disagreements are often unexpected and can be extremely unpredictable. While it's virtually impossible to avoid disputes altogether, careful planning and preparation can help you avoid them.

Eventually, however, you need to be prepared for the day when you have to protect your business interests, which could mean aggressive litigation. Whether you are on the verge of litigation or already named as a defendant, a business lawyer with broad experience in different types of disputes can provide the guidance you need.

1. Shareholder or Partnership Disputes

These disputes tend to arise at critical moments in the life of your business. The owners of the business may disagree over the direction the business is taking, whether to pursue new opportunities or how to change course in the face of adversity. Of course, disputes can also arise when there are disagreements over compensation or respective contributions. Here are some other ways that shareholder or partnership disputes can arise:

Ethical breaches. Ethical breaches can create a lot of controversy, even if they don't directly involve the partners or shareholders. They often lead to accusations over whether there were obvious problems that were overlooked or intentionally ignored. They also tend to lead to sharp disagreements over how to move forward.

Minority shareholder frustrations. Minority shareholders are always at a disadvantage given their position. However, feelings of being ignored, disrespected, or frozen out can lead to acrimony and dissent.

Disputes involving the shareholder or partner agreement. These agreements are often drafted and forgotten about. They later come under intense scrutiny when they prevent an individual or group of owners from leaving the business, selling their interests, or taking some other action prohibited by the agreement.

These disputes are often very difficult to resolve and often wind up in litigation. If you're facing a shareholder or partnership dispute, an experienced business dispute attorney can help you get a handle on the situation.

2. Breach of Contract Disputes

Contract disputes are among the most common types of business disputes you may face. These can range from small-dollar disputes to disagreements that threaten the stability of your business. These disputes tend to fall into the following categories:

Breach of performance. These occur when one party does not do what they are contractually obligated to do. This can be a failure to make payment, a failure to provide services, or a failure to deliver goods or products.

Ambiguity. These are disputes that arise when the contract is unclear, which is often a problem with form contracts. Each side has a good-faith interpretation of certain terms and cannot come to an agreement over how the contract should be interpreted.

Depending on the complexity of the contract, these disputes can be very complicated.

3. Business-to-Business Disputes

Business-to-business disputes can arise between competitors or partners in a variety of contexts. These can include the following:

Unfair or deceptive trade practices. This can include engaging in fraudulent or other deceptive activities such as false advertising, non-compliance with industry standards, or deceptive pricing.

Unlawful interference. Sometimes referred to as "tortious interference of contract," this occurs when one business claims that another has intentionally interfered in their relationship with a third business, resulting in economic harm.

Breach of contract. We covered this above, but breach of contract disputes can arise in joint ventures and other relationships with business partners.

These disputes can not only be difficult to resolve, but they can absorb precious time, money, and other resources that could be devoted to your core business. An Atlanta business lawyer can not only help you diffuse costly business-to-business disputes but can also help you resolve them cost-effectively when litigation is inevitable.

4. Non-Compete and Non-Solicitation Agreements

Non-compete clauses, non-solicitation agreements, and other restrictive covenants have become increasingly common in recent years. Unfortunately, they can also lead to a fair amount of controversy in a competitive economy. Overly restrictive employment agreements can be intended primarily to dissuade employees from leaving while being unenforceable. At the same time, many employees take on new jobs without realizing the conflict that will inevitably arise. A business lawyer can help you draft fair and enforceable restrictive covenants that prevent disputes. They can also help you negotiate a fair resolution when these disputes arise.

5. Executive Contract Disputes

To attract the right talent, businesses will often offer executives employment contracts that can be very complex. While the complexity of these agreements may be a necessary evil, it can lead to disputes when the employee and the business decide to part ways. Disputes over compensation and termination are the most common issues involved when it comes to executive contracts. To further complicate matters, these contracts also often contain mandatory arbitration or mediation provisions that govern how you must proceed in resolving the dispute.

6. Technology Disputes

Technology has become the cornerstone of today's modern economy. In addition to the ever-evolving tech sector, just about every business leverages technology to better serve their customers or simply to remain competitive. At their core, these disputes may ultimately be governed by a contract or other traditional legal doctrines, but the context of these disputes requires an Atlanta business lawyer with broad experience in technology matters. Some of the issues that can arise include the following:

Breach of warranty claims where it is unclear whether the defect is the fault of the customer or the vendor

Intellectual property infringement claims

Disputes over agreements to provide tech services or equipment

Litigation involving parts manufacturers

Technology disputes can be incredibly complex and yet carry enormous potential consequences for your business.

7. Disputes Involving Trade Secrets

Trade secrets can be vital to the value of your business, which is why businesses aggressively protect and defend any such information. Conversely, allegations that you have misappropriated someone else's trade secrets can do grave damage to your business and your reputation. Trade secret disputes can include the following:

Misappropriation of customer/client lists

Obtaining and using confidential information such as financial or pricing data

Copying and using business plans or presentations

These disputes commonly arise between a business and a former employee or employees who have started another venture or gone to work for a competing business. These cases can move very quickly and often involve numerous complex legal issues.

8. Loans and Debt Disputes

For many businesses, access to credit is essential for them to operate. Business loans are common, but complex disputes can arise over the following issues:

Wrongful foreclosures

Guarantor obligations

Disputes involving the terms of the loan

Valuation disputes

Lenders can be extremely aggressive in enforcing the terms of their loans which can do irrevocable harm to your business. Even if you are in default, an Atlanta business lawyer can help you negotiate a fair settlement that allows you to clear the debt yet continue operating.

9. Regulatory, Disciplinary, and Compliance Disputes

There are local, state, and federal laws and regulations that apply to almost every industry. These laws and regulations can change quickly, and business owners can be caught unaware. Unlike most of the other disputes on this list, regulatory and compliance disputes are usually between the business and whatever governmental or other regulatory body is responsible for ensuring your compliance. These kinds of disputes are especially common in the following industries:

Healthcare

Gaming

Professional licensing boards

Alcoholic beverages

Securities

Land use and zoning

These are highly complex areas of the law. A compliance or enforcement action can derail your business and threaten your livelihood. A knowledgeable lawyer can provide the counsel you need to navigate the applicable regulations, challenge regulatory actions, and successfully resolve disputes.

10. Real Estate Disputes

For many business owners, their real estate holdings are a secondary concern, but the reality is that every business needs an office, a storefront, a warehouse, or some other type of facility. Whether you own the property or rent, you may experience one of the following types of disputes:

Land use and zoning disputes

Eminent domain and condemnation proceedings

Environmental issues

Mortgage disputes

Purchase or sale contract disputes

Landlord-tenant disputes

There is often a great deal of money or value at stake in these disputes, and the issues can be complicated. An adverse result in a real estate dispute can have both immediate and long-term negative consequences for your business so it is important that they are handled appropriately.

How to Build Business Resiliency

It's inevitable that disputes will arise, despite your best efforts. Rather than attempting to guard against every possible contingency, you should focus your efforts on building a resilient business that can withstand the potential disputes you may encounter. Here are some of the ways that you can build a strong, resilient business:

Identify your potential risks, both internal and external

Develop sound policies and procedures to help manage those risks

Be proactive instead of reactive - disputes are often a result of neglect or carelessness

Stay abreast of industry trends and any changes in the laws or regulations relevant to your business

Invest in professional services - consultants, accountants, and attorneys can be powerful partners

Unfortunately, many business owners focus only on their day-to-day business operations and core business activities. Later, they find themselves facing a dispute that threatens everything they have worked so hard for.

When You Can't Resolve Your Dispute

Disputes are sometimes unavoidable and, unfortunately, cannot always be resolved without going to court. In the event that litigation becomes necessary, we strongly encourage you to work with a business lawyer who has extensive experience with all stages and forms of the litigation process:

Pre-litigation dispute resolution

Settlement negotiations

Discovery

Motions practices

Trials

Appeals

Arbitration and mediation

Business litigation often involves complex issues with significant value at risk. Your lawyer should be able to provide a global perspective paired with cost-effective, seasoned legal counsel that can help you achieve your business goals.

Business Litigation: Understand It, Don't Fear It

No one wants to go to litigation. Unfortunately, many business owners sacrifice their success because they are worried about what it may cost or what the outcome may be. While litigation always involves careful consideration of the risks and potential rewards, pursuing litigation can be an investment in the future success of your business.

Of course, you may feel like you don't have a choice if you or your business has been named in a lawsuit. That said, many business owners respond out of fear and elect to settle their case, doing considerable damage to their reputation and their brand. While the costs of litigation should always be taken seriously, sometimes you must defend yourself aggressively in order to protect the future of your business.

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The Ten Types of Business Disputes You Can Face

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If you own or operate a business, you know that sooner or later you will have to face disagreement. Unfortunately, these disagreements are often unexpected and can be extremely unpredictable. While it's virtually impossible to avoid disputes altogether, careful planning and preparation can help you avoid them.

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The inherent purpose of a contract is to crystalize an agreement between two parties. Despite your best efforts to the contrary, contract disputes can still unfortunately arise. Some disputes arise because the contract is unclear, while other disputes arise because one of the parties is failing or refusing to perform the obligations required by the contract. Before you decide to terminate the contract or pursue legal action, you should first carefully consider some of the questions we've outlined below. In the heat of the dispute, however, it can be difficult to determine your priorities and understand your options. If you are facing a contract dispute and aren't sure which way to turn, an Atlanta contract litigation attorney can provide valuable guidance.

Is Negotiation an Option?

Sometimes there is a dispute and the parties immediately adopt an adversarial posture, thus prohibiting them from reaching other, more cost-effective resolutions. Before threatening litigation, you should ask yourself whether it is possible to negotiate a solution that allows you to resume your relationship with the other party with minimal disruption to your business.

In other cases, the parties waste valuable time and money trying to work out a solution that just isn't feasible. The other party may not be able to perform the contract under any circumstances or the relationship may have deteriorated to the point where constructive negotiation simply isn't an option. In those situations, an Atlanta contract litigation attorney can extricate you from such stall tactics and help you enforce your rights.

Has There Been a Material Breach of the Contract?

Almost all contracts allow you to terminate the contract in the event of a material breach - one of the parties has failed to perform its obligation under the contract in some substantive or significant way. Unfortunately, it isn't always easy to determine what would be a material versus an immaterial breach. However, in the event that you need to go to court to enforce the contract, this is one of the issues that will need to be decided.

An Atlanta contract litigation attorney can use their experience and knowledge of the law to determine whether the breach is immaterial or material. This can save you valuable time and resources in arguing over the breach and determining whether you should pursue litigation.

Is This a Relationship I Want to Keep?

Legal issues aside, business contracts are ultimately about relationships. You may have a fundamental disagreement with the other party, but that party may be one of your most important suppliers or a vendor who provides the best service in your area. Before deciding whether to escalate the dispute, consider whether the value of the relationship makes compromise the better course of action. Similarly, you may generate a significant amount of business for that particular vendor, and you may be able to leverage this fact to quickly resolve the dispute. There may be other factors at play that may color whether or not litigation makes sense. Unfortunately, going to court will typically destroy what has otherwise been a very beneficial relationship.

On the other hand, sometimes businesses struggle to maintain fruitless relationships - the other party simply doesn't meet your needs and other vendors provide a better service or product at a better price. An Atlanta contract litigation attorney can help you identify whether or not you should sever the relationship and proceed with filing a lawsuit.

Does an Amendment to the Contract Make Sense?

Many contracts allow for amendments to be made, provided that both parties agree and the amendments are made in writing. If you are able to resolve your dispute, drafting an amendment to the contract may help prevent disputes going forward. Amendments can be particularly helpful when there is a good faith dispute over the interpretation of certain material provisions of the contract. An amendment can also be effective when you encounter a situation that was not contemplated by the original contract.

What Are the Costs Associated with Enforcing the Contract?

When disputes arise, tempers can flare. While principles are important, you also need to understand that the costs of enforcing the contract can outweigh the potential benefits. Litigation can be expensive. If you are worried about defending against a breach of contract claim, the perspective may be slightly different, but understanding the potential costs can help you determine whether you should try to fulfill the contract or negotiate a resolution.

As with any other business decision, you need to weigh those costs against the potential outcome with no guarantee of success. An experienced Atlanta contract litigation attorney can provide an estimate of what it would cost to litigate and the likelihood of success to help you make an informed decision.

When Does the Contract End?

It's easy to get wrapped up in a dispute and start wondering whether you should terminate or go to litigation to enforce your rights. Sometimes, however, the best thing you can do is simply let the contract run out and not renew if your losses are minimal. Of course, you should make sure that the contract doesn't require you to notify the other party of your intention to not renew.

Can You Terminate the Contract?

If you are bogged down in a contract dispute, you should carefully review the provision regarding termination. Many contracts provide two ways to terminate the contract:

1. Termination with cause. This is when you can terminate the contract due to a material breach. While this may seem like the obvious solution, relying on this provision can be difficult if there is disagreement as to whether there has been a material breach of the contract.

2. Termination without cause. These provisions allow one or both parties to terminate the contract for no specific reason, bypassing disagreements over whether or not termination is justified. However, there may be heightened notice requirements - you have to provide notice in writing 60 days prior to termination rather than 30 days with cause, for example. In addition, termination without cause often requires the terminating party to pay a portion of the contract to the other party upon termination.

Termination provisions can be complicated and difficult to understand. An Atlanta contract litigation attorney can review your contract and help you evaluate your options.

What Does the Contract Say About Breach?

Many business owners get so absorbed in the dispute that they fail to consider the actual terms of the contract. You may have a valid dispute, but the dispute is likely going to be governed by the terms of the contract. For example, the contract will contain provisions that likely address the following:

The contract will likely set forth what steps must be taken in the event of a breach - you may be required to provide notice of the breach and allow the vendor time to solve the problem.

The contract may require disputes to be settled via alternative dispute resolution, either binding or non-binding arbitration or mediation.

The contract may dictate that disputes be litigated in a particular jurisdiction that is not local to you.

The contract may entitle you to pursue attorney's fees and costs or may award them to whoever is the prevailing party in the dispute.

The terms of the contract will shape how you proceed with the dispute. For this reason, you should review the underlying contract at the very outset of the dispute.

Are You at Risk for a Counterclaim?

Before you terminate the contract and pursue litigation, you should consider whether or not the other party could pursue a valid counterclaim against you. If they are successful, their counterclaim could offset any damages you may be entitled to. From a strategic standpoint, you also lose some control over the litigation if you have a counterclaim filed against you - even if you choose to dismiss your lawsuit, the other party can force litigation by pressing on with the counterclaim.

Of course, sometimes the other party will threaten or even file a counterclaim that has no valid basis. Before making up your mind one way or the other, you should have an open and candid conversation with an experienced Atlanta contract litigation attorney. They can evaluate any potential defenses or counterclaims you may encounter.

Can You Withhold Payment or Service?

When disputes arise, many businesses immediately assume they can either refuse to pay or not provide service until the issue is resolved. Fortunately or unfortunately, this is not the case in many contracts - there may be provisions that govern how and when you must raise your dispute but that you are obligated to continue making payment or providing service. In fact, you may be considered to be in breach if you choose to withhold payment or refuse to perform. This is one of the situations where you may find yourself facing a counterclaim even if you believe the other party has breached the contract.

What Remedies Are Available?

Another important question to consider is what remedies may be available at law or pursuant to the contract - for example, some contracts contain "liquidated damages" provisions that limit you to a specific amount of money in the event of a breach. However, the monetary damages may be a small consolation if what you really want is for the other party to perform a particular service or provide a specific product.

Generally speaking, the remedies available in a breach of contract claim are as follows:

1. Monetary damages. This is financial compensation to the party harmed by the breach. The amount of damages awarded to you may depend on a variety of factors, and you may have a duty to mitigate your damages (i.e. make an effort to find some way to offset your losses). In general, monetary damages are "compensatory" in that they are intended to compensate you for your financial losses. Punitive damages that go beyond compensatory damages are available only in rare cases.

2. Restitution. Restitution can look very similar to monetary damages in that the injured party is restored to the position they were in prior to the contract. As a result, the breaching party may be ordered to refund a deposit or return other property that was transferred as part of the contract.

3. Specific performance. This is when the breaching party is ordered to carry out its obligations in the contract. For example, consider two parties that have entered into a contract to purchase a commercial property in a prime location for the buyer's business. The purchaser pays the deposit and meets all of the other conditions of the contract, but the seller decides to sell to another buyer for a higher price. Even if the buyer was awarded monetary damages, they do not have the opportunity to buy another property in the same location. Instead, the buyer could sell for specific performance, ordering the seller to sell the property to them at the price that was originally agreed upon.

4. Rescission and reformation. In situations where the contract may be based upon fraud, mistake, undue influence, or similar causes, the court may order the contract to be terminated (i.e. "rescinded"). The court may subsequently reform the contract according to the parties' intent while accounting for the mistake or fraud.

Understanding the remedies that are available can help you decide how to proceed. An Atlanta contract litigation attorney can help you determine which remedies would be appropriate to pursue in your case.

Reach Out to an Atlanta Contract Litigation Attorney to Discuss Your Contract Dispute Today

At Robbins Ross Alloy Belinfante Littlefield LLC, we understand the challenges that business owners face when it comes to deciding how to deal with contract disputes. Using our experience as business litigators, we help our clients find cost-effective solutions to whatever problems they may be facing. From settling contract disputes to aggressive representation in court, an Atlanta contract litigation attorney from our firm had the knowledge, experience, and skill you need to get results. To discuss your case and how we can help, call us today at 678-701-9381 or contact us online to schedule a consultation.

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Robbins Ross Alloy Belinfante Littlefield LLC

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Questions to Ask if You Are Facing a Contract Dispute

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The inherent purpose of a contract is to crystalize an agreement between two parties. Despite your best efforts to the contrary, contract disputes can still unfortunately arise. Some disputes arise because the contract is unclear, while other disputes arise because one of the parties is failing or refusing to perform the obligations required by the contract.

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Ten Common Causes of Partnership Disputes

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Ten Common Causes of Partnership Disputes

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DID YOU KNOW: A BRIEF LOOK AT NON-COMPETE AGREEMENTS IN GEORGIA

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DID YOU KNOW: A BRIEF LOOK AT NON-COMPETE AGREEMENTS IN GEORGIA

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Non-Compete agreements in Georgia must comply with certain rules to be enforceable. An Atlanta business lawyer at Robbins Firm can provide counsel on these contracts.
Perhaps you own a business in Georgia, and you are tired of former employees poaching your customers, or maybe you are a professional that has been offered a job that requires you to sign a non-compete agreement. Either way, you need to understand the basics of these contracts and how they operate in Georgia. An Atlanta business lawyer at Robbins Firm explains.

A non-compete agreement is a contract that states that an employee will not engage in any business or enterprise that competes against their employer's business. Typically, employers ask employees to sign non-compete agreements so that the employee cannot leave the employer to work for a direct competitor. An employer may refuse to hire an employee based on the fact that they will not sign a non-compete agreement.

What Type of Employees Non-Compete Agreements Can Be Enforced Against

Non-compete agreements are addressed in Georgia Code §13-8-53, which states, in part, that they are not permitted against an employee that does not, in the course of their employment:

Customarily & regularly solicit for the employer customers or prospective customers;

Customarily & regularly engage in making sales or obtaining orders or contracts for products or services to be performed by others;

Perform the following duties:

Have a primary duty of managing the enterprise in which the employee is employed or of a customarily recognized department or subdivision thereof;

Customarily and regularly direct the work of two or more other employees; and

Have the authority to hire or fire other employees or have particular weight given to suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees; or

Perform the duties of a key employee or of a professional.

This means that unless an employee performs the above referenced job duties they are not permitted to engage in a non-compete agreement.

Enforceability of Non-Compete Agreements in Georgia

Non-compete agreements must be crafted to comply with prevailing law in order to be enforceable in the state of Georgia. There are several factors which must be properly considered and covered in an effective non-compete agreement. It is always best to have your non-compete agreement drafted or reviewed by an experienced Atlanta business lawyer.

In order for a geographical area prohibition to be held as reasonable in a non-compete agreement, there are some distinctions to consider. For example, how large is the employer? For a small employer that covers only one county, with no plans to expand, it would not make sense to prohibit employees from working for competitors located throughout the entire state. Therefore, if the agreement contains terms prohibiting the employee from working for a competitor anywhere in the state, it may be considered to be unreasonable. Determining what the appropriate geographical area should be in any particular non-compete agreement is a determination best made by an Atlanta business lawyer.

The amount of time a non-compete agreement should be enforceable can vary, but typically two years is considered to be a reasonable amount of time. If the prohibition lasts longer than two years, generally there must be exceptional circumstances that warrant the additional time. The reason behind the two years is because courts do not like to unduly limit a person's ability to work for any longer than necessary. Whether or not a prohibition of longer than two years is considered to be reasonable may vary in different scenarios. Advice from a knowledgeable Atlanta business lawyer is helpful in determining a reasonable time restriction.

A non-compete agreement should not be overburdensome in the scope of activity that it prohibits from a former employee. The agreement may prevent a former employee from engaging in activity that is specific to that industry and their former job duties. Also, a non-compete should only be limited to the same customer type as the employee was engaged with at their former employer.

Consideration is needed in order for a non-compete agreement with a current employee to be enforceable. However, consideration does not have to be monetary. It just needs to be something that has value to the employee. For example, the employee could be given increased job responsibilities, a new title, or some other benefit. However, keep in mind it has been held in Georgia that continued employment with the employer is adequate consideration for a current employee to enter into a non-compete agreement.

Consideration is not needed for a new employee that will soon be starting a job with an employer.

Georgia law has what is called the "Blue Pencil Rule of Severability" when it comes to non-compete agreements. This rule states the court has the ability to modify or otherwise change the terms of the non-compete agreement while leaving the rest of the contract intact as long as the modification will not serve to make the agreement any more restricted or otherwise compromise the agreement's primary and original intent.

Penalties for Violation of Non-Compete Agreements

When an employer decides to pursue a former employee for a violation of a non-compete agreement the penalties can be quite serious. They may include:

The employer may be able to recover for revenue lost due to the breach.

Damages the employer incurred due to the breach

A court order to cease to violate the agreement in the future

Penalties may vary, and it is best to speak with an Atlanta business lawyer to determine what the penalties may be for any particular breach of a non-compete agreement.

Options For Employees When An Employer Insists On A Non-Compete Agreement

An employer may refuse to hire a potential employee, or to keep an employee, if that employee refuses to sign a non-compete agreement. Because of this, an employee may feel that they are in a "take it or leave it" situation when it comes to their rights regarding the non-compete agreement. However, there may be room to negotiate, and it is in the best interest of the employee to speak with an Atlanta business lawyer that can help them understand all their options.

Georgia Non-Compete Agreement Best Practices

There are some best practices that should be observed to ensure that both parties understand and are on board with the terms in the non-compete agreement.

Retain an Attorney: While the employer and employee may be knowledgeable in their field, it is best that each seeks their own Atlanta business lawyer to represent them in the process of creating, negotiating, and executing a non-compete agreement. This way both can rest assured that their best interests have been taken into consideration and they have had an opportunity to have the agreement explained to them in full prior to signing.

Negotiation: It is best to have the employer and employee part of the negotiation of the terms of the non-compete agreement. When both parties have a say in what the contract mandates, it is more likely to be seen as a fair and enforceable agreement.

Outset of Relationship: The best time to approach the non-compete agreement is prior to the beginning of the employment relationship. This strategy helps the parties to be on a more even playing field for negotiations and it will ensure the employee knows what is expected prior to beginning employment.

Fairness: In order to be upheld as enforceable, a non-compete agreement needs to be seen as fair to all parties. Is it too restrictive? If so, then it might be time to re-think the terms.

Even Enforcement: Employers should practice even enforcement of their non-compete agreements. It does not reflect well on an employer when they pick and choose only certain employees to enforce the contract terms upon.

Update the Agreements: Keeping the non-compete agreement up to date is important. Statutes change, and it is important that the agreements reflect the latest in state and federal law.

Assignment Provision: Businesses are often sold, and a purchaser of a business will want to be sure they are not soon competing with the sellers of the business and their employees once the purchase has been completed. When the seller is able to show that there are non-compete agreements in place that can be assigned to the purchaser, they may be more inclined to buy the business.

Job Descriptions: It is important that the non-compete agreement effectively and thoroughly describes the job that the employee performs for the employer. When a dispute arises after a former employee begins working for a competitor, it is often because the parties disagree over the scope of the former employee's job duties while they were employed. By addressing this at the outset, future disagreements and litigation involving an Atlanta business lawyer may be avoided.

Avoid "one-size-fits-all" Agreements: Non-compete agreements need to be crafted to properly address the industry the employer is involved in. It is not enough to execute a general agreement that has not been created or reviewed by an Atlanta business lawyer to ensure that it checks all the boxes for the specific business the employer operates. Some employers may even find a generic template on the internet and feel that this is enough to offer them the protections a non-compete agreement provides. These templates, however, typically do not take into consideration important matters particular to the industry as well as the governing laws.

Include Consideration: When asking a current employee to sign a non-compete agreement, be sure and offer them some sort of consideration to ensure the validity of the agreement. It does not have to be money, and it does not have to be significant.

Choice of Law Provision: It is important, especially for companies that operate in more than one state, that the non-compete agreement clarify which state's laws will govern the agreement. The laws of different jurisdictions vary, so specifying which jurisdiction governs and ensuring compliance with the laws of that jurisdiction is essential. An Atlanta business lawyer can clarify which state's laws should govern. If the non-compete agreement does not specify which jurisdiction's laws will govern, it is typically the laws of the jurisdiction where the employee works.

Non-Disclosure & Non-Solicitation of Employee Provisions in Non-Compete Agreements in Georgia

Georgia law allows for non-compete agreements to include provisions for non-disclosure of confidential information. If information is deemed to be a trade secret, or its confidentiality is crucial to a business, a non-compete agreement can prevent a former employee from sharing that information.

Non-compete agreements in the peach state may also contain provisions which prohibit a former employee from poaching employees at their former employer if they had a prior working relationship with the employee. If they did not have a prior working relationship, they may be allowed to solicit them. Specific questions regarding non-solicitation agreements are best addressed by an Atlanta business lawyer.

The Importance of an Atlanta Business Lawyer

A non-compete agreement is not much use to an employer if it is not enforceable. Because of this, employers need to have their non-compete agreements prepared by, or at a minimum reviewed by, an Atlanta business lawyer. An attorney can ensure the agreement checks all the boxes to be upheld in court if its validity is ever brought into question.

Having a proposed non-compete agreement reviewed and explained by an Atlanta business lawyer prior to signing is also important for employees. The attorney can make certain the contract is not unduly burdensome for the employee and that the employee understands exactly what will be expected if their job with the employer ceases.

Discuss Your Non-Compete Agreement Concerns With An Atlanta Business Lawyer at Robbins Firm

If you need counsel regarding a non-compete agreement, speak with an Atlanta business lawyer at Robbins Firm. We represent employees and employers, and we have the knowledge and experience needed to provide you with the advice and guidance you are looking for. We may be reached by calling 678-701-9381 or via our contact page.

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Did You Know: A Brief Look at Non-Compete Agreements in Georgia. Robbins Alloy Belinfante Littlefield LLC, Atlanta - Directory of companies Cataloxy.us

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Non-Compete agreements in Georgia must comply with certain rules to be enforceable. An Atlanta business lawyer at Robbins Firm can provide counsel on these contracts.

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Is Mediation a Better Option than Arbitration?

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Is Mediation a Better Option than Arbitration?

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Is Mediation a Better Option than Arbitration?

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There Are Multiple Options When it Comes to Alternative Dispute Resolution

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What You Should Expect From Skilled Business Litigation Attorneys

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What You Should Expect From Skilled Business Litigation Attorneys

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Business litigation is an area of the law that requires an attorney to have intimate knowledge of the inner workings of the business world as well as the law. When you own a company or are an executive at a large corporation, it is probable that you will need to retain the services of business litigation attorneys at some point in your career. Knowing when you need to seek counsel from a business litigation lawyer and what to expect from them is key to your success.

A major advantage to having a business litigation lawyer on your side is knowing that you are legally protecting your business as much as possible, as part of the practice involves advising clients on the pros and cons of entering into agreements that are designed to prevent future litigation. Agreements that business litigation attorneys can assist with include:

Non-Compete Agreements: A non-compete agreement is often required of employees. The employee agrees to not enter into an employment position that will require them to be a competitor of the business they are signing the agreement with. There are time periods and geographical requirements for a valid non-compete agreement that must be strictly adhered to for the agreement to be enforceable.

Non-Solicitation Agreements: A non-solicitation agreement allows a former employee to work in the same field as they did with their former employer, but it prevents them from soliciting the clients of their former employer.

Severance Agreements: A severance agreement is a contract typically offered when an employee is terminated from their position. The employee receives compensation, and in turn, releases any claims they may have against the employer.

Confidentiality Agreements: A confidentiality agreement is when parties agree to not disclose information that is confidential to any outside party.

Many business contracts require that parties do not litigate if they disagree, but instead submit to a form of alternative dispute resolution (ADR). Sometimes, if the ADR fails to reach a conclusion that is agreeable to all parties, then the parties are allowed to proceed to litigation. A business litigation attorney can represent you through all stages of ADR, and if an agreement is made, they can ensure the agreement is enforceable and in your best interest. Popular forms of ADR include:

Mediation: Mediation occurs when the parties involved in the dispute meet with a neutral third party known as the mediator to discuss the circumstances of the dispute. Each party is given adequate time to explain their position and what they are seeking as a resolution. The mediator then attempts to find some common ground between the parties and craft an agreement that all parties will accept.

Arbitration: When the parties to a contract enter into arbitration, they are allowed to present their argument to the arbitrator (or arbitrators). The process is similar to being in actual court, and in many cases the decision of the arbitrator(s) is binding. There is a time period during arbitration where either party may stop proceedings and request a trial.

Not every problem in the business world is foreseeable, and there will be situations where a client will need their attorney to act swiftly to protect their interests. This requires having a solid, working relationship with business litigation attorneys that listen when you reach out to them, and act promptly. Examples of situations that require swift action include:

Emergency Relief & Injunctions: Sometimes emergency relief and injunctions are necessary to ensure irreparable harm does not take place, and having an attorney at the ready to file the necessary paperwork is essential. It is also necessary, from a defense perspective, to have an attorney that is able to catch up to speed quickly and defend against emergency relief sought by another party.

Trade Secret Cases: Trade secret cases are often unique in that once a trade secret has been leaked, there is no putting the horse back in the barn. Because of this, it is imperative to move quickly in seeking the relief needed to protect the trade secret from being disclosed.

A business litigation attorney can be expected to provide their clients with strategies to save them time and conserve financial resources. The best example of this is when a client consults with their business litigation attorney for every step of their business establishment process. The attorney, by being well informed on how the business operates, its purpose, and the end goal of the person or entity establishing the business, is able to prepare initial start-up documents and processes that provide the protection the business needs.

The attorney/client relationship can continue and the attorney is able to prepare subsequent documents and provide advice along the way that helps keep the business on track. By being proactive and having a lawyer review procedures and processes on the front end, the business is able to save the time and money which would have been spent repairing the broken system at a later date.

Perhaps the most important expectation you should have of any attorney that represents you or your company is that they will bring you peace of mind. Litigation can cause undue stress and worry which affects every aspect of your life. A solid relationship with business litigation attorneys that understand the goals and expectations you have for yourself and your business can bring you comfort and calm your nerves.

If you are in need of a business lawyer, choose a firm that is focused on obtaining favorable results.

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What You Should Expect From Skilled Business Litigation Attorneys

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Business litigation is an area of the law that requires an attorney to have intimate knowledge of the inner workings of the business world as well as the law. When you own a company or are an executive at a large corporation, it is probable that you will need to retain the services of business litigation attorneys at some point in your career.

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If you are a top player in the business world in Atlanta, at some point in your career you will undoubtedly be involved in a business dispute.

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Georgia Attorney General's Consumer Protection Division

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Georgia Attorney General’s Consumer Protection Division

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The principal law this office enforces, the Georgia Fair Business Practices Act, states as its purpose “to protect consumers and legitimate business enterprises from unfair or deceptive practices in the conduct of any trade or commerce in part or wholly in the state. It is the intent of the General Assembly,” the Act continues, “that such practices be swiftly stopped, and this [law] shall be liberally construed and applied to promote its underlying purposes and policies [O.C.G.A. Section 10-1-391(a)].”

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Choose an Atlanta Business Dispute Attorney That Will Fight for You | Robbins Firm

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Involved in a business dispute? The attorneys at Robbins Firm represent Atlanta employees, companies and more in a variety of fiduciary claims.