Business Litigation

Businesses today are faced with a raft of litigation risks from shareholders, consumers and others. Businesses are spending greater time and resources responding to these litigation risks. In today ever changing world, the nature of litigation and liability risks faced by businesses are also changing.

According to Attorney Govind Chirayil a Wall Street Attorney, an increasing number of small businesses are resorting to Alternative dispute resolution (ADR) to settle disputes. Alternative dispute resolution is a term generally used to refer to informal dispute resolution processes in which the parties meet with a professional third party who helps them resolve their dispute. While ADR is not a solution in all cases, the authorities encourage small businesses to consider this approach, as a first step in resolving most civil disputes. In fact a few states require most business contracts to have an ADR clause. Attorney Chirayil adds that small businesses are increasingly opting for an ADR clause in their contracts because can cut lawyers' fees, keep you out of court, and resolve issues faster than a trial.

 

Two common methods are by using a mediator or an arbitrator to resolve legal disputes.    Arbitration is a process in which both sides present arguments in front of a neutral third party, the arbitrator. The arbitrator needs to be agreed upon in advance by both parties, who typically agree to abide by the arbitrator’s decisions. The arbitrator reviews the arguments of both sides and renders a decision which considered binding. The decision whether arbitration will be binding or not must be agreed upon in advance, though binding arbitration is part of most contractual agreements. In mediation, a neutral third party tries to find common ground on which to bring two sides of a dispute to the table to talk. Mediation is generally used in employment disputes and helps open the lines of communication between the parties. The mediator establishes guidelines by which the two parties will meet and oversees settlement discussions. But, unlike arbitration, the mediator does not make a ruling - no legal decision results from mediation.

Rafi Rasul, Partner of Rasul & Associates, a New York based law and CPA firm, forum shopping is another developing trend in small business litigation. In forum shopping, the plaintiff looks for a court that is deemed likely to render a favorable result. The party which files the first complaint in a case makes the first choice of which court is to be the forum. This may be a state court or a Federal District Court. The defendant may try to move the case to a different court. The great majority of plaintiffs elect to file trademark and related unfair competition cases in the Federal Courts for a number of reasons. It is recognized that the Federal Courts, for historical reasons, have far more experience in adjudicating trademark cases than do the state courts. Plaintiffs frequently have to sue defendants in places where the defendants are located but where the plaintiffs have no local ties.

 

The US trademark law is largely developed in Federal cases and there is a greater chance of predicting a result especially in a Federal Circuit with a rich collection of precedents and experienced trial and appellate judges. Further, plaintiffs recognize that, even if they file complaints in state courts, the defendants may, and often will, remove them to Federal courts. Some courts have become notoriously famous for giving favorable verdicts. The district court for the eastern district of Texas in Marshall, TX is a favorite with plaintiff in patent lawsuits. Mr. Rasul further adds that the trend of forum shopping has made it difficult for businesses to prepare themselves for litigation. The advantages of forum shopping can include access to faster or slower outcomes and to particular remedies that may not be available elsewhere.

Another increasing trend according to Attorney Chirayil is the rise in third party funding of litigations. In third party litigation funding, a third party offers financial support to the claimant (plaintiff). In return the third party generally gets a share of damages if the plaintiff is successful. The third party could be anyone – an insurer, a wealthy individual. The rise in third party litigation funding has seen a rise in litigations. The easy availability of funds encourages lawsuits that would have otherwise been considered too expensive, or too risky, to pursue. Attorney Chirayil says that third party litigation funding is set to grow. For one thing, the investment opportunities it provides are potentially independent of economic conditions, since the prospects of winning a case depend on its merits, not the economy. This may be especially attractive to capital in current economic conditions.

From a small business’s stand point, the risk of litigation is ever increasing. The present economic climate has only added to the woes. Today, a business can be sued in any corner of the world. Physical presence has become almost redundant. Liability insurance has become a must these days. Again, any finding of fraud by the court in a suit filed against the business will void the liability insurance. There is no prescribed plan to handle litigation. While a small business can do all it can to reduce the chances of any liability, there is no way to predict where and how a lawsuit will be filed against the business. Small businesses might find it difficult to defend lawsuits with huge claims filed in a jurisdiction where the business has no physical presence.

 

Personal jurisdiction, the power of a court to issue a judgment ordering a named defendant to do or not to do a specified act or to pay a money judgment, depends, in broad terms, on where a defendant resides or is incorporated, or does business, or caused the harm for which a plaintiff seeks relief. Venue, the location of the court in which a case will be heard, is a different and separate question. More than one Federal District Court may have personal jurisdiction over a defendant. Third party litigation funding is here to stay. There isn’t much a business can do to prevent third party litigation funding. Presently third party litigation funding is perfectly legal.

These trends are the present trends. However they will change as years go by. Until then, one can say for sure that consumer lawsuits, forum shopping and third party litigation funding are here to stay.

Put Your Business on the Right Path

Legal Consultations at Nevada Corporate Headquarters.

In today’s litigious society it is much too risky to move your small business forward without seeking any legal expertise at all.  Each type of business entity has different tax and liability implications, so it is critical to be able to distinguish your company’s legal status immediately.

If you need to make sure that your entity is legally correct, or simply have questions about legal concerns or issues that could arise in the future, our legal experts are here to help. Getting fast, accurate answers to your business and personal legal questions is necessary for all businesses. With Nevada Corporate Headquarters, Inc., you can expect all this and more.

The professional advice you can receive from a legal consultation with the NCH legal team is an investment in your business’ future. NCH employs an experienced lawyer and legal staff to assist entrepreneurs with business legal advice concerning their small businesses.

Whether your business has already encountered a legal issue, major or minor, or you are just being cautious, Nevada Corporate Headquarters, Inc. offers a valuable and affordable legal consulting plan to meet the needs of small business owners across the country.

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Understanding The Books For Your Small Business

Often, people associate small businesses with expertise in some field. You know all there is to know about fishing, so you open a tackle shop. Your friend loves to do hair and makeup, so she buys a salon. What people don’t think about when they dream of having a small business is that you have to do it all. You have to be a janitor, repair person, accountant, marketer, psychologist, negotiator … the list goes on.

Accountant? That’s the one that usually terrifies people. If you can’t afford an accountant, you have to do your own books. Many people don’t know how to do the books and simply ignore them. This is a recipe for disaster for your business. Understanding basic accounting concepts will take away some of the intimidation and allow to approach your finances like a pro.

Accounting Basics: Credits And Debits

Every transaction that your business does has two sides – a credit and a debit. Credits increase one account, while debits decrease a corresponding account. For instance, if you pay cash (or write a check or use your business debit card) for new computers for your business, your cash account is debited, or decreased. Your new computers, however, are an asset to your company, so your asset account is credited, or increases, with the value of the computers. Just remember that for EVERY SINGLE TRANSACTION, something must go up and something else must go down.

Assets And Liabilities

Assets are those things that you own or have a right to. Your business’s furniture, equipment, computers and so forth are assets. If you own the building where you are located, that is an asset. You may also have intangible assets, like a copyright or patent. Your accounts receivable, that money that customers owe you, are an asset because you have a right to collect that money.

Liabilities are those things that represent obligations of your company. If you took out a loan to buy machinery, that loan is a liability. Your accounts payable, that money that you owe other people, are a liability. If you offer a layaway program to your customers, the money they pay you before they receive their goods is a liability because it creates an obligation for you to provide them with products in the future. Any obligation is a liability.

Income And Expenses

Income, of course, is money you receive. Most of your income will probably be from sales, but you may have interest income or investment income, for instance, that also belongs to your business. Expenses are those things you pay for. Employee salaries, utility bills, the rent or lease payment, and maintenance and repair costs are common expenses.

Owners’ Equity

Simply put, owners’ equity is the difference between assets and liabilities. If your assets are greater than your liabilities, you have money, or at least hypothetical money, in the bank. Your assets may be largely in your business’s very expensive equipment, for example. The idea is that you could sell your assets, pay off all your liabilities, and have money left over.

Small business accounting software will go a long way toward helping you straighten all this out, but you still need to understand why you put the numbers where you do. Understanding your books is the first step in running a successful business.

Disclaimer: The views expressed on Cort Christie are solely those of the Cort Christie, and do not necessarily reflect the views of other organizations with which the author is associated, or other authors.

 

10 Hiking Destinations For A Holiday

The Alps This impressive mountain range is ideal for hikers who wish to revel in the many cultural delights of Europe whilst enjoying some outstanding scenery. The larger peaks such as Mont Blanc (the highest mountain in Western Europe) are particularly popular with experienced hikers but can also be dangerous due to the risk of avalanches and sudden changes in weather conditions. A popular resort is Chamonix (France) which is an ideal base from which to hike across the popular mountains of Aiguille de Bionnassay, Aiguille du Midi and Dômes de Miage.

Yosemite National Park,The incredible scenery of Yosemite in California is perfect for all hikers, from beginners upwards. Experienced hikers can take a cable car up Half Dome or head up to the top of Yosemite Falls and enjoy phenomenal panoramic views from there.

Iceland Hot springs, dramatic caves and cliffs, impressive waterfalls and the unique, vibrant Nordic culture has given Iceland a reputation as one of the world's premier hiking destinations. During the months of June and July, hikers can enjoy almost constant daylight and witness stunning ‘near' sunsets lasting for hours around the midnight twilight, when the sun stays just above the horizon before rising again.

The Rocky Mountains, USA These mountain ranges are a haven for hikers. Camping holidays are hugely popular in this wilderness and there is no shortage of outstanding scenery, with clear blue lakes, snow capped peaks and beautiful forests attracting millions of tourists to the Rocky Mountains every year.

Gorges du Verdon, France This is the second largest canyon in the world (after the better known Grand Canyon) and undoubtedly one of the world's great hiking Destinations. Explore this deep gorge with a boat ride along the Verdon River by starting off at the stunning mountain village of Moustiers-Sainte-Marie before finishing off in beautiful Castellane several days later.

New Zealand, The colors and natural light of New Zealand are so distinctive to these islands that New Zealand has sometimes been described as the world's best country for hiking. The dramatic mountains, rivers, lakes, volcanoes and marvelous clean beaches are popular with hikers from around the globe, particularly British tourists.

Blue Mountains, Australia Just a short drive from the city of Sydney, the Blue Mountains contain exceptional rock formations and caves, such as the Three Sisters and Jenolan Cave and beautiful waterfalls including the Wentworth Falls and Katoomba Falls.

South Africa, The view of Table Mountain is one of the finest in Africa and is relatively easy to reach. Deep in the rural wilderness of this country there are many hiking routes and organisations that provide appropriate safety equipment and resources. The scenery here is much greener and more temperate in its appearance than that of the rest of the continent.

Norway Dramatic fjords, a rugged coastline and magnificent mountain walks make Norway a premier destination for hikers during the spring and summer in particular. The very long days between May and July allow even more time to enjoy the wonderful scenery here.

The Amazon Rain-forest, This is a unique destination for hiking, with its superb range of wildlife and stunning tropical plants. A paradise for nature lovers and also ideal for those who don't mind the high humidity and consistently high temperatures.

About the Author Article by Simply Hike
Simply Hike are a UK-based online shop selling camping gear, hiking equipment and outdoor accessories. Stocking everything you need in preparation for the great outdoors.

First Time Hikers

You can always recognize a first time hiker the minute you see him approach, hobbling under at least 50 pounds on the back for a two-night trip! comprised of a backcountry pack that is the equivalent of the Beverly Hillbillies’ flatbed, a 10-pound tent, a pair of running shoes, a dozen bagels, and lots more watchamaccallits which he insists might come in handy during the trip. It’s an amusing picture, to be sure, but true for almost every hardened backcountry veteran out there the first time they started hiking. Not to worry though. If you’re one of the newbies to hiking, it won’t take long for you to put enough miles on the boots. As time goes, you’ll find yourself picking up some decent sense of fine-tuning your art along the way, until your pack finally no longer resembles a truck and you no longer carry nearly as many bagels. In the meantime, here are some hiking tips and advice for you live by before you decide to learn under Experience when your degree from On-the-Trail University. Have Fun That’s what hiking is all about. Sure, there are a number of reasons why you put on those boots, but in the end, all of that boils down to one thing – fun. Without that, then it’s not worth it. Who wants to endure so much the hardships of hiking when all they get out of it are countless bug bites and maybe a few scrapes here and there? If it wasn’t fun, would anyone even bother? So take this advice: have fun. Take your time. Watch a cloud form. Breathe the air. The number one rule in the woods is “No Stress.” Breaking that rule is not an option. Be Prepared Just because hiking is fun doesn’t mean that you can forget about safety all together. Remember: this is the outdoors. Anything could happen. Ill-preparedness is the cause of too many backcountry disasters and near-misses. Inadequate clothing, lack of route-finding ability, bad judgment calls – all of these have led to life-threatening situations in hiking. The best way to be prepared while backcountry hiking is knowing what conditions you’re going into. Once you do, figure out a way to deal with them and pack accordingly. You may also inquire at park management who could give you valuable advice on local conditions and permitting procedures. Know Your Equipment Being a trail dork isn’t so bad, especially if your life is on the line. And knowing which insulation your sleeping bag uses doesn’t ruin your “cool” image in anyway if it turns out a storm is brewing and the night is going to be most likely freezing cold. Knowing your equipment is always a good idea because your gear may well be called upon to save your life one day.

Maximizing Your Deductions

CORT W. CHRISTIE is the founder of Nevada Corporate Headquarters, Inc., the premier business formation and consulting firm in Las Vegas. A national expert on entrepreneurship, Cort has an extensive background in the financial services and business consulting industries. He has distinguished himself as a nationally recognized speaker and has appeared as a featured guest on some of the largest radio shows across the country. He has also hosted his own radio program in San Diego and Las Vegas television appearances include cable networks MSNBC and CNBC.

For more than 15 years, Cort Christie has been helping entrepreneurs find their path in the business world. Cort Christie believes that all people should follow their dreams and develop a plan that will not only reward them upon completion but a route map that is also fun and enjoyable to travel. Cort Christie has been an advocate of small business owners and entrepreneurs. He continues to fight for lesser taxes and business privacy nationwide. Cort Christie was born and raised in a small northern Minnesota town and is a proud husband and father.