Alternative dispute resolution, or ADR, is a
method for parties to a disagreement to settle the dispute without filing suit,
and with the help of a neutral third party. While it is not right for every
disagreement, a business litigation lawyer like the ones at Zarco Einhorn
Salkowski & Brito, P.A. can advise you as to whether ADR is appropriate in
your situation.
What Is Mediation?
Mediation of a business dispute requires a
neutral mediator to work with each party to reach a settlement that everyone
can agree on. However, if the parties do not agree upon a settlement, the
mediator does not have the authority necessary to impose an agreement.
Mediation is a non-binding process. As opposed to trials, which are public,
mediation is confidential and private. It is almost always less expensive than
a trial.
What Is Arbitration?
With arbitration, an arbitrator acts as judge,
evaluating evidence and making a binding decision. Arbitration is more formal
than mediation, and the arbitrator is appointed by agreement from the parties
to the dispute. With arbitration, rules of evidence differ from rules of
evidence in trials. Arbitration generally takes less time than a trial and
costs less. Unless provision for an appeal is included in an arbitration
clause, there is no appeal option.
What Are the Advantages of ADR?
A commercial litigation attorney can advise
you if ADR is to your advantage in a business dispute. Advantages of ADR
include:
- Multi-party dispute suitability
- Generally less time and money is required
- Confidentiality
- Better preservation of reputation
- Practical resolutions can be tailored to parties' needs
What Should I Do in the Event of a Business
Dispute?
If you find yourself involved with a
business-related dispute, your first step should be consulting with an
experienced commercial litigation attorney like the ones at Zarco Einhorn
Salkowski & Brito, P.A. In some cases ADR is the best way to proceed, but
that is by no means true in all cases. Business litigation in the court system
is sometimes the best way to solve a business dispute, and in these cases it is
critical that you have outstanding legal counsel.
Opening a franchise allows you to use
a proven business model, and for this reason alone franchises are popular. When
buying a franchise, you should have reasonable expectations about the
franchisor's profitability record, procedures, and ease of duplication of the
business model. Costs should be laid out in the all-important Franchise
Disclosure Document (FDD). A franchise lawyer like those at Zarco Einhorn Salkowski
& Brito, P.A. can help you understand the FDD.
Franchisors Not Necessarily Protected
by Franchise Disclosure Document
FDDs typically disclaim promises of
profitability. These documents are worded carefully to avoid promises of
profitability in general and related to specific circumstances of the franchise
sale. The FDD, however, is not a perfect shield for protecting franchisors from
franchisee claims if the franchise is unsuccessful. This is particularly true
if the franchisor gives financial performance representations that are not
included in the FDD.
Fraud Harder to Prove than Violation
of Florida Franchise Act
If a franchisor, outside the FDD,
makes representations about profitability and the franchisee relies on the
franchisor's words or conduct about profitability, the franchisee could prove a
violation of Florida's Franchise Act if he or she suffered financially based on
the representations. Proving fraud requires an intentional false statement on
the part of the franchisor and is more difficult to prove.
Buying from a New Franchisor
If you want to buy a franchise from a
relatively new franchisor, working with a franchise law firm like Zarco Einhorn
Salkowski & Brito, P.A. is a good idea. Disclaimers concerning guarantees
of profitability or warranties do not necessarily successfully fend off claims
by failed franchisees when the franchisor makes negligent misrepresentations.
If you are considering buying from a franchisor without a lengthy track record,
you should work with a franchise attorney to help you protect your interests.
Financial Performance Representations
Are Key
Experienced franchisors know that any
financial performance representations such as projections are risky.
Franchisors can be held personally responsible for misrepresentations if there
is no basis in fact for financial representations. Experienced franchisors
protect themselves legally, and every potential franchisee should do the same
by working with a franchise law firm from the very beginning.
If you're building a start-up company
you are rightfully excited about your venture. Don't make the mistake of
putting off intellectual property concerns until later. Without paying
attention to your company's intellectual property, you could inadvertently
cause growth of your business to slow or stop. An intellectual property lawyer
like those at Zarco Einhorn Salkowski & Brito, P.A. can be an invaluable
ally in protecting your hard work.
Originating an Idea Is Not the Same as
Owning It
If you are considering starting your
own business and are currently employed, do not use employer resources like
computers, fax machines, or photocopiers, in the development of any ideas that
could become protected intellectual property. Doing so could give your employer
reason to assert rights to that intellectual property. Even an unrelated new
venture could prompt action from a former employer and their business litigation attorney.
Securing Rights from Contractors Is
Critical
Use of contractors and outsourcing is
the norm today, and it is essential that you proceed with contractors only
after having an agreement addressing intellectual property rights. Without this
type of agreement, technology developed by your contractor could result in a
dispute over intellectual property ownership and a call from a business
litigation attorney. Having an intellectual property attorney create an IP
agreement for contractors is a very wise move.
Premature Disclosure Can Jeopardize IP
Rights
It is only natural that you are eager
to announce your ideas. But without careful planning, a public announcement
could hinder your ability to secure some intellectual property rights. As just
one example, disclosure of confidential information could jeopardize trade
secret rights, and public disclosure of an invention could result in loss of
patent rights outside the United States.
Not Staying on Top of IP Issues Can
Cause Big Problems
While inventing and creating are
exciting, intellectual property law often is not. But it is critical to the
success of your business that you invest in counsel on intellectual property
rights with an IP law firm like Zarco Einhorn Salkowski & Brito, P.A. Ignoring
mounting IP issues can cause problems with loss of rights and missed
opportunities.