tag:blogger.com,1999:blog-482637978806704812024-03-21T19:19:48.266-07:00Seattle Business Attorney James W TalbotLegal developments in Washington State
http://www.jwtalbotlaw.comjwtalbothttp://www.blogger.com/profile/02436416610261808747noreply@blogger.comBlogger35125tag:blogger.com,1999:blog-48263797880670481.post-16984402337532067392013-12-13T05:43:00.000-08:002013-12-13T05:43:58.599-08:00The Business of Going into Business: Using the Letter of the Law (and More) For Your Business Startup<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsvXMeVqsfGGmAb6RIMNKoL-ZMTBYAd0k-YQAdGPTp_p853ato3G4PpehieIxnRi7MlJZcqA4gOuCzKTIz-Y4hFMSJxmB8aBRojkmQsXBKuUGkkCbrpF355thmRQlTdQ_ybjPyolgqn7s/s1600/business-startup-law.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsvXMeVqsfGGmAb6RIMNKoL-ZMTBYAd0k-YQAdGPTp_p853ato3G4PpehieIxnRi7MlJZcqA4gOuCzKTIz-Y4hFMSJxmB8aBRojkmQsXBKuUGkkCbrpF355thmRQlTdQ_ybjPyolgqn7s/s1600/business-startup-law.jpg" /></a></div>
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<span style="font-family: "Century Gothic","sans-serif";">Unfortunately, the U.S.
economy is not rebounding as fast as anyone would like. High unemployment rates have many Americans
considering establishing their own businesses. If this is something you’re
contemplating, remember, it's one thing to start a business...and quite another
to start a <b><u>successful</u></b> business.
So before you decide to hang out a shingle, </span><a href="http://seattlebusinesslawyer.blogspot.com/2013/07/protecting-your-business-with-operating.html"><span style="font-family: "Century Gothic","sans-serif";">here are a few best practices</span></a><span style="font-family: "Century Gothic","sans-serif";">, both legal and practical,
for you to consider. </span><o:p></o:p></div>
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<b><span style="font-family: "Century Gothic","sans-serif";">Getting
Started – Make a List and Check it Twice</span></b><o:p></o:p></div>
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<span style="font-family: "Century Gothic","sans-serif";">You probably
don’t head to the grocery store without making a shopping list. Your new business should not be of any less
importance. Here is a basic (but
certainly not exhaustive) list of some business essentials:<br /></span><o:p></o:p></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal"><span style="font-family: "Century Gothic","sans-serif";">Decide on a business
entity. This is the most important
step. Will this be a Limited
Liability Company (LLC)? A corporation?
A partnership? A qualified
CPA or attorney will be able to walk you through the process of obtaining
the correct documents to establish your business identity. Note:
This decision can impact your personal assets directly; more on
this in the next section.</span><o:p></o:p></li>
<li class="MsoNormal"><span style="font-family: "Century Gothic","sans-serif";">Get a place, and some
space. Will you be working out of
your home or are you planning to have a “brick and mortar” establishment
for your customers? Make sure your
work environment has enough space to allow for potential employees,
customers, and products. And be
sure you have enough funds on hand for a monthly lease or rent.</span><o:p></o:p></li>
<li class="MsoNormal"><span style="font-family: "Century Gothic","sans-serif";">Set up the proper bank accounts
(and get checks) at your financial institution. Consider banks other than the national
chains. Smaller banks, such as </span><a href="http://www.tcbwa.com/"><span style="font-family: "Century Gothic","sans-serif";">The
Commerce Bank of Washington</span></a><span style="font-family: "Century Gothic","sans-serif";">
offer fantastic customer service for small and growing businesses. </span><o:p></o:p></li>
<li class="MsoNormal"><span style="font-family: "Century Gothic","sans-serif";">You'll want to establish
a Federal Tax ID number. Some
business owners use a Social Security Number, but it might be a better
idea to file for a Federal Tax ID.
You'll also need a State Unified Business Identifier (UBI)
number. Also file a Master Business
Application and a City Business license to make sure you’re following
local and state ordinances.</span><o:p></o:p></li>
<li class="MsoNormal"><span style="font-family: "Century Gothic","sans-serif";">An Electronic Federal
Tax Payment System (EFTPS) makes paying taxes for employees a breeze. Alternately, consider outsourcing your
payroll and tax payment needs to a bookkeeping service. In Seattle, I
recommend </span><a href="http://www.pearsonbizgroup.com/"><span style="font-family: "Century Gothic","sans-serif";">Pearson Business
Management Services</span></a><span style="font-family: "Century Gothic","sans-serif";">.
</span><o:p></o:p></li>
<li class="MsoNormal"><span style="font-family: "Century Gothic","sans-serif";">You'll need to keep
track of every dollar coming in and going out. Unless you hire a CPA, you'll need
business and accounting software to keep all of those financial columns in
line.</span><o:p></o:p></li>
<li class="MsoNormal"><span style="font-family: "Century Gothic","sans-serif";">Malpractice insurance,
employee health insurance, business insurance: make sure all your insurable
exposure is covered.</span><o:p></o:p></li>
<li class="MsoNormal"><span style="font-family: "Century Gothic","sans-serif";">Head to the Office
Supply Store. Marketing materials,
computer equipment, furniture, copier, phones, postage meter, stationery,
business cards are just some of the items you'll need.</span><span style="font-family: Symbol; text-indent: -0.25in;"><span style="font-family: 'Times New Roman'; font-size: 7pt;"> </span></span></li>
<li class="MsoNormal"><span style="font-family: 'Century Gothic', sans-serif; text-indent: -0.25in;">Set
up your mail accounts. Don't open those
doors without setting up accounts with UPS, FedEx, or whatever postal and/or
delivery service you plan to use.</span></li>
</ul>
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<b><span style="font-family: "Century Gothic","sans-serif";">Protect
Your Assets</span></b><o:p></o:p></div>
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<span style="font-family: "Century Gothic","sans-serif";">As
I mentioned earlier, protecting your assets is the most important step during a
business startup. If you choose to go
into business as yourself (e.g.: John A. Smith's Shoe Repair), you run the risk
of unlimited liability against your personal assets – your bank account, your
house, your car – in the event something goes wrong. It's much better to do business as an LLC or
a corporation so that your personal assets are kept separate from your business
assets. Discuss with your attorney or
accountant the potential benefits of filing taxes as an S-Corp, an option
available to both corporations and most limited liability companies. </span><o:p></o:p></div>
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<span style="font-family: "Century Gothic","sans-serif";">Personally,
I recommend LLC over a corporation.
There are a lot of formalities associated with becoming a corporation: annual
meetings, reports to shareholders, bylaws, amendments, etc. With an LLC, you have the flexibility of
being recognized by the IRS as an S company without all of the
formalities. </span><o:p></o:p></div>
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<span style="font-family: "Century Gothic","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-bidi-language: AR-SA; mso-fareast-font-family: "Arial Unicode MS"; mso-fareast-language: EN-US;">Obviously,
there's a lot to think through before becoming your own boss. If it is something you’re seriously
considering, contact us to discuss all of the options available to you to
protect your assets, and put your new business legally in the best position to
succeed.</span>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com1tag:blogger.com,1999:blog-48263797880670481.post-28367153270598641802013-11-22T14:51:00.000-08:002013-11-22T14:51:07.427-08:00Your Career and the Right Employment Agreement<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjopO85L5-waY98Is4Pgx1xVdOmWCfrPUntJiwApZtW9tcxBAvYhR_tQaFPy3OBV58eS8_K8ZB4Dbs6cCu_2MbNSj3wHw92Wu3mIMD1wr2bDl2umMoMa-5tTia6wA1Sgas4NlfZNJizcRE/s1600/employment-agreement-your-career.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjopO85L5-waY98Is4Pgx1xVdOmWCfrPUntJiwApZtW9tcxBAvYhR_tQaFPy3OBV58eS8_K8ZB4Dbs6cCu_2MbNSj3wHw92Wu3mIMD1wr2bDl2umMoMa-5tTia6wA1Sgas4NlfZNJizcRE/s200/employment-agreement-your-career.jpg" width="200" /></a></div>
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<span style="font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">In
</span><a href="http://seattlebusinesslawyer.blogspot.com/2013/10/choosing-employment-agreement-thats.html"><span style="font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">part
one</span></a><span style="font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> of this two part series, I went over some items
that employers should focus on in an effective employment agreement. These
included the need for a good employee handbook, policies on equal opportunity
and harassment, considerations for social media postings and email, and the definition
of contract employment.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">Here in part two, we will examine the other side of
the agreement, focusing on items that protect the interests of the employee.<o:p></o:p></span></div>
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<u><span style="font-family: "Century Gothic","sans-serif";"><b>Detailed
job duty description:</b></span></u><span style="font-family: "Century Gothic","sans-serif";">
Both sides will want to have a clear understanding of what is expected of the
employee in their new job. The agreement should include clear language
describing the employee’s duties and the employer’s expectations of the job.
This will help prevent any confusion or misunderstanding regarding job
performance down the line.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">Employee
Handbook:</span></u></b><span style="font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"> This document is important to the employee as well
as the employer. The employee should examine the handbook closely to determine
how job performance will be monitored and what the various company policies are
that would need to be followed. Understanding
what’s in the handbook is a good way for the employee to ensure that they do
the right things at work to keep their job.</span><span style="font-family: "Century Gothic","sans-serif";"><o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Access to employment file:</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> The employer will be keeping
many records about the employee while they work there; and the employment
agreement is a good place to set forth what the employee’s access to those
records will be, if any. The employer may have specific guidelines for how and
when the file can be requested by the employee and whether it’s an open record
or maintained for the sole use of management.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">I
usually recommend that the employee have access to their own file, but it’s
also important to spell out who else can see it. For example, do co-employees have
the ability to view the file? It’s usually best that access is limited solely to
upper level management for purposes of evaluation, promotions, a raise, etc.,
and that this limitation be spelled out in the employment agreement.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Attendance and leave
policies:</span></u></b><span style="font-family: "Century Gothic","sans-serif";">
This is another area where it is best to have documentation of what’s expected.
Employees should be mindful of taking time off in case of emergency, family matters,
illness, etc. By examining these topics at the beginning of employment, they can
help prevent conflicts with their employer in the future when unforeseen events
happen. <o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Alternative dispute
resolution:</span></u></b><span style="font-family: "Century Gothic","sans-serif";">
It’s best that every employment agreement provide that before an employee can
sue the employer for misconduct or discrimination, the two sides should go to
mediation. <o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">Another
strong recommendation for this section is that employers, before termination of
an employee, go to mediation to resolve the perceived disciplinary problems. This
approach can significantly reduce litigation costs as parties can first sit
down and try to talk through issues rather than immediately resorting to the
courts. <o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Confidentiality agreement:</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> Both parties will want to
have this language in place. This is simply an agreement between employer and
employee that neither side should disclose confidential information to third
parties. <o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Termination:</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> It may not be the topic one
wants to consider when starting a job, but it’s good to at least keep it in
mind — how can the employee be terminated? Can one individual manager terminate
the employment; or does the decision go to upper-level management? This should
be clearly outlined in writing for both sides. It’s usually best that no single
manager be able to dismiss an employee — upper level management should be in
charge of this — but it’s not always the case, so setting it out in the
employment agreement eliminates confusion should the event ever come to
fruition.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Severance pay upon
termination for no-cause:</span></u></b><span style="font-family: "Century Gothic","sans-serif";">
Generally when an employer wants to retain employees with a certain skill or expertise,
they will offer some incentive to stay with the company. A severance package is
a good way to accomplish this. Discuss with the employer what will happen in
certain scenarios. For example, should the employee leave voluntarily, will they
still get a severance package — then make sure language covering all the
possibilities is included in the employment agreement. <o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">If
you are an employee examining an employment agreement and need assistance, </span><a href="http://www.jwtalbotlaw.com/Contact.shtml"><span style="font-family: "Century Gothic","sans-serif";">contact
my office</span></a><span style="font-family: "Century Gothic","sans-serif";">.
We can discuss the particulars of the employment agreement that is being
considered and how it could affect you and your career. <o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;">Disclaimer<i>: </i></span><i><span style="font-family: "Century Gothic","sans-serif";">Nothing
in this posting should be construed as legal advice or the commencement of an
attorney-client relationship. The opinions are solely those of the author
acting in his capacity as an author, not an attorney.<o:p></o:p></span></i></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-51890523824920271452013-10-29T05:45:00.001-07:002013-10-29T05:45:38.901-07:00Choosing an Employment Agreement that’s best for your Business<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKgBGKZfCdAdXb9B6NgjRoTsXs1mZV2GS6nweZ_9wjADbUWSKegj5GEXPBtSQmGN-OuYEq2-1cT6xxMexBLhdMP-_9hBwiR0MxcILDNBbxPuAVX-Btu-kXJryJuFnp5l8YyfoQRXrwReU/s1600/employment-agreement.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="141" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiKgBGKZfCdAdXb9B6NgjRoTsXs1mZV2GS6nweZ_9wjADbUWSKegj5GEXPBtSQmGN-OuYEq2-1cT6xxMexBLhdMP-_9hBwiR0MxcILDNBbxPuAVX-Btu-kXJryJuFnp5l8YyfoQRXrwReU/s200/employment-agreement.jpg" width="200" /></a></div>
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<span style="font-family: "Century Gothic","sans-serif";">In the employer-employee
relationship, creating a thorough employment agreement is important not only
for the employer, but also the employee.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">This
is part one of a two-part series in which I will review some provisions that
should be considered for both businesses and employees when entering into an
employment agreement. In this article, we will examine the employer’s
point-of-view and items that should be included to protect their best
interests.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Employee handbook:</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> The handbook should cover
the policies, terms and conditions that an employee is expected to adhere to
while working at the business. Important topics like work hours, attendance
policies, sick time, and vacations should be covered. The handbook is also a
good place for employers to plainly state to employees that both parties have
entered into an at-will arrangement, meaning that the employee can be
terminated for any reason or no reason whatsoever, at any time.<i> Likewise, the employee can terminate the
employment arrangement at any time for any reason, or no reason whatsoever.<o:p></o:p></i></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Policy on equal opportunity
& harassment:</span></u></b><span style="font-family: "Century Gothic","sans-serif";">
This is where the employer conveys that there will not be any discrimination
based on race, color, religion, gender, sexual orientation or national origin. This
is a sound business practice, and ensures compliance by the employer with the
laws of the state of Washington. Presenting this policy helps protect employers
against lawsuits while demonstrating to employees that the business is fair and
will not tolerate discrimination. <o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Progressive discipline policy:</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> An employment agreement should
include a progressive discipline policy. That is, if there is misconduct or a
complaint about an employee, proper procedures should be followed to ensure the
employee is given an opportunity to correct the behavior.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">In
this regard, the employer is protected from harmful acts by the employee. Issuing
a warning is an opportunity to correct the behavior or conduct, but if the
behavior or conduct is not corrected, then the employee could be terminated.
There should be a firm understanding on both sides what the conduct is, as well
as what the practices are for warning an employee of misbehavior, misconduct, and
problems with their employment.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Email/Internet/social media
policy:</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> With the expansion of social media, policies
with regards to email, Facebook, Twitter, and other social media postings
should be addressed. No information gleaned about the employer or clients
through the course of employment should be shared on social networking sites at
any time. With regards to email, it should be clearly stated that the employee
should not expect a guarantee of privacy using a workplace email account. In
other words, employers can look at individual work email accounts at any time. <o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Full-time employees vs.
contractors: <o:p></o:p></span></u></b></div>
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<span style="font-family: "Century Gothic","sans-serif";">More
often than not, employers want to retain people as contractors rather than
employees. They do this to save on employment taxes, but solely relying on this
arrangement can become problematic, especially if the work is closely overseen.
As a business, it’s very important that you inform any independent contractors
that they are free to work their own hours and at a location of their choosing.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Documentation of job
performance:</span></u></b><span style="font-family: "Century Gothic","sans-serif";">
Employers need to keep documentation of each employee’s job performance for
discussion during periodic performance reviews. Employers should clearly lay
out the specifics of such reviews. For example, at what interval will they be performed;
who should be present (certain members of management); will evaluations be
given in writing or orally, etc. A detailed written job description is also
needed not only for performance reviews, but also so that both parties have a
clear understanding of what the duties and expectations of a position are.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Severance pay:</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> Employers need to find ways
to retain valued employees and their beneficial skills and expertise. A
severance package can be a good incentive for an employee to stay with the
company. However, it should be conveyed that if an employee leaves voluntarily,
he or she will not be awarded a severance package. <o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";">Confidentiality agreement:</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> Both sides should
automatically agree that confidentiality is essential to their best interests.
In my opinion, the employer and employee should always agree in writing to keep
information between them confidential, and out of the hands of a third party.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">In
<b><u>part 2</u></b>, I’ll review items
that pertain to employees and what they should be mindful of when reaching an
employment agreement.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">If
you have questions about employment agreements, please feel free to </span><a href="http://www.jwtalbotlaw.com/Contact.shtml"><span style="font-family: "Century Gothic","sans-serif";">contact
my office</span></a><span style="font-family: "Century Gothic","sans-serif";">.
We can discuss the employment agreement that you are considering and how it
could affect you and your business.<o:p></o:p></span></div>
<div class="MsoNoSpacing">
<br /></div>
<span style="font-family: "Century Gothic","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Arial; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">Disclaimer<i>: </i></span><i><span style="font-family: "Century Gothic","sans-serif"; font-size: 11.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-bidi; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">Nothing in this posting should be construed as
legal advice or the commencement of an attorney -relationship. The
opinions are solely those of the author acting in his capacity as an author,
not an attorney.</span></i>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-75773301727921643922013-08-23T05:11:00.000-07:002013-08-23T05:11:46.691-07:00Key Provisions of an Effective Operating Agreement<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrmj8VyH7N8Pr0muCRXVl6VVlPOCcMFezxe3EO48UioGlPHmUyJGvMMehZRSayeClCy7P50G8GX1Q3Lh_2wP3ORFTILyfXnlhZOXd-kVqDhAGCG03eRKmCdhIK1B3PmagbQZs5a5yu_J4/s1600/operating-agreement-provisions.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrmj8VyH7N8Pr0muCRXVl6VVlPOCcMFezxe3EO48UioGlPHmUyJGvMMehZRSayeClCy7P50G8GX1Q3Lh_2wP3ORFTILyfXnlhZOXd-kVqDhAGCG03eRKmCdhIK1B3PmagbQZs5a5yu_J4/s200/operating-agreement-provisions.jpg" width="200" /></a></div>
<span style="font-family: "Century Gothic","sans-serif";">Every limited liability
company should have an operating agreement reflecting the understanding of the
parties on how the business should be run.
In part 1 of this series, we examined some real-world business relationships
pertaining to operating agreements. In this post, I’ll discuss some important
provisions that an effective operating agreement should have to protect the
business parties.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";"><br /></span></div>
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<span style="font-family: Century Gothic, sans-serif;">Most
operating agreements have standard sections, but that doesn't mean that changes
can’t be made. An operating agreement should not be viewed as a
one-size-fits-all document. Each business is unique and these provisions should
be clearly laid out to handle issues as they arise. <o:p></o:p></span></div>
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<span style="font-family: Century Gothic, sans-serif;"><br /></span></div>
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<span style="font-family: "Century Gothic","sans-serif";">Here
are some sections and key points that deserve special consideration when a
business draws up an operating agreement.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Century Gothic","sans-serif";"><br /></span></u></b></div>
<div class="MsoNormal">
<br />
<ul>
<li><b><u><span style="font-family: "Century Gothic","sans-serif";">Capital and capital
contributions</span></u></b><span style="font-family: "Century Gothic","sans-serif";">
— Subsequent contributions should only be an obligation if unanimously agreed
upon by all the members.</span></li>
<li><b><u><span style="font-family: "Century Gothic","sans-serif";">Allocations and distributions</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> — The company should have
the right to distribute cash and property to the members pro rata, based on the
relative membership interests.</span></li>
<li><b><u><span style="font-family: "Century Gothic","sans-serif";">Management</span></u></b><span style="font-family: "Century Gothic","sans-serif";"> — The managing member should
have the power pursuant to the operating agreement to perform the following on
a day-to-day basis: open and manage bank accounts, borrow funds or establish
lines of credit up to $5,000, purchase insurance on company assets, enter into
agreements with vendors, suppliers, and contractors, and perform other
operational tasks and duties.</span></li>
</ul>
</div>
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<span style="font-family: "Century Gothic","sans-serif";">More
substantial actions should require the approval of a majority percentage of the
members. These can include: borrowing more than $5,000 or making any capital
expenditure in excess of $5,000, commencing lawsuits or other legal
proceedings, making a filing under the Bankruptcy Code, purchasing, leasing, or
disposing of property—including real property—in excess of $5,000. Lastly, any
action to dissolve the company would fall under a majority percentage of member
participation as well.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Century Gothic","sans-serif";">Adding
new members to the company (or altering the percentage ownership in the
company) should require the unanimous approval by all members.<o:p></o:p></span></div>
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<b><span style="font-family: "Century Gothic","sans-serif";"><br /></span></b></div>
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<b><span style="font-family: "Century Gothic","sans-serif";">Withdrawal and transfers of
membership interests </span></b><span style="font-family: "Century Gothic","sans-serif";">—<b> </b>This should cover such issues as how a
member may withdraw from the company prior to the winding down and dissolution
of the company, such as if a 60-day prior notice should be given. Also,
restrictions on transfer should be clearly laid out, and sale of membership
interest details should be given so that adequate time requirements are made
known to all members.<o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Century Gothic","sans-serif";">A
very important provision you always want to include is what would happen in the
event of a member’s death, or if a member gets divorced. Washington is a
community property state, which means that a spouse has a 50% interest in every
single dollar made by a spouse. In every business, a spouse automatically
shares a 50% economic interest with the other spouse. So a divorce could
significantly impact the business if provisions aren’t made. <o:p></o:p></span></div>
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<span style="font-family: "Century Gothic","sans-serif";"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: "Century Gothic","sans-serif";">I
always recommend a clause that says in the event of disillusion of marriage,
we’ll recognize that the divorcing spouse has a 50% interest that’s economic
only. The divorcing parties agree to put a dollar figure on that interest and
the non-member spouse is given 50% monetary value, but not membership in the
company, so he or she would not be able to make any decisions pertaining to the
business. <o:p></o:p></span><br />
<span style="font-family: "Century Gothic","sans-serif";"><br /></span></div>
<span style="font-family: "Century Gothic","sans-serif";">Since each business is
unique, your business may require special language to protect all members. If
you are considering drafting an operating agreement for your business, <a href="http://www.jwtalbotlaw.com/Contact.shtml">contact us</a> to set up a consultation. </span>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-54451530381441891372013-07-19T05:28:00.001-07:002013-07-19T05:28:57.277-07:00Protecting Your Business with an Operating Agreement<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV8XK1n_lplNBR1Y8DiygX0vHvgxlA37kTMUVia-Mw52YUI7KbIJ1EWOoJ7sJezaB1Wob4SRzgefbe-9KGqIDw_z046q3d8ZyUC7uLTi2QG8eWHXFXhsGQr0SfuSdtVZ7GArd1Xbda63o/s1600/operating-agreement.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><span style="font-family: Georgia, Times New Roman, serif;"><img border="0" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV8XK1n_lplNBR1Y8DiygX0vHvgxlA37kTMUVia-Mw52YUI7KbIJ1EWOoJ7sJezaB1Wob4SRzgefbe-9KGqIDw_z046q3d8ZyUC7uLTi2QG8eWHXFXhsGQr0SfuSdtVZ7GArd1Xbda63o/s200/operating-agreement.jpg" width="200" /></span></a></div>
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<span style="font-family: Georgia, Times New Roman, serif;">When
forming a business partnership, it’s important for the parties to protect
themselves with an operating agreement so that issues can be resolved in an
orderly fashion.<o:p></o:p></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">This is part 1 of a 2-part series examining operating agreements. In
this post, I’ll begin by looking at two real-world examples that illustrate why
it’s crucial to create and abide by an operating agreement. In part 2, I’ll
discuss some key provisions needed in a standard operating agreement.<o:p></o:p></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">The first case involves two people who had a 50-50 arrangement in a
business they co-owned as an S-Corporation. The business was succeeding and
everything was fine between the two sharehholders. However, as the months
passed, one partner was doing far more work than the other. I was representing the active
business partner, who was handling the operational and business
side of things, while the other partner just wanted to collect a check from the
monthly profits.<o:p></o:p></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: Georgia, Times New Roman, serif;">Understandably, the partner doing all of the work wanted to buy out the
other partner, since she was collecting a check for doing nothing. Because the two didn't have
an agreement, the non-active partner had been hiring accountants and lawyers to
do things that my client didn't agree with. A considerable amount of time was
spent answering his legal questions about what his partner could or couldn’t
do, and what the legal ramifications of dissolving the corporation would be
going forward. Unfortunately, the way they formed their corporation, evenly
dividing everything, required a unanimous decision by both partners on every
matter. Once they became adversarial, the only solution legally was to dissolve
the partnership.<o:p></o:p></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">Having had an
operational agreement in place in the beginning could have gone a long way to
avoiding the problems that had arisen. Specifically addressing such important
matters in the decision-making process is something I advise for any
partnership looking to do business. <o:p></o:p></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: Georgia, Times New Roman, serif;">The alternative to seeking legal counsel in this situation might have
been to hire a life coach or business coach. A lot of times, people seek me out
for legal counsel, but the problems they have aren’t (yet) of the legal nature.
This is a great
solution when people are not getting along and need to find a way to resolve
interpersonal conflicts. In other words, they think they've got a legal problem,
but that’s not necessarily true. These coaches can talk you through
decision-making and how to be happy in your business. Irene Leonard and her business, <a href="http://www.coachingforchange.com/"><i>Coaching for Change</i></a><i>,</i> is someone I highly regard
offering this service.<o:p></o:p></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;">In the second
case I encountered, another client thought ahead about decision-making. He and
his partner drew up an operating agreement where a coin flip would be the
deciding factor for disputed management decisions.<o:p></o:p></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: Georgia, Times New Roman, serif;">They had been
working together for 15 years, and they were positive that they'd work together
for more. I pointed out that, while
there may not be disagreements at this exact moment, they could arise years
from now. For example, what if one wanted to move the location, but the other
person didn’t? Neither wanted to decide who would have to make these kinds of
decisions, so they entered into an agreement where they would have to flip a
coin and abide by the outcome. The partnership has been working just fine the
last three years, and if any issues arise, they will pick up a coin and toss
it.<o:p></o:p></span></div>
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<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span>
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<span style="font-family: Georgia, Times New Roman, serif;">No matter what
way a business decides to resolve issues, they should be in writing to protect
all parties. Each business partnership is different, so if you feel you should
have a formal arrangement drawn up, <a href="http://www.jwtalbotlaw.com/Contact.shtml">contact us</a> to set up a meeting.</span><span style="font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"><o:p></o:p></span></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com1tag:blogger.com,1999:blog-48263797880670481.post-21451818863035933822013-06-24T04:41:00.003-07:002013-06-24T04:43:01.073-07:00Employment Contracts at the Executive Level<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHnREjiFiPAvbGNHLSTzJ5oMVv0ezEDaxfY6SfPY8B8HaHSqJbiod7fpfiJOqzwVCHL_BiBYMn71P5O_Veg69SwRQelVHvLJxG-rYfOT86fOOco1ewZGjsjfdgZKk4-kM6Y6Qk1ztDojE/s1600/employment-contract-executive.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHnREjiFiPAvbGNHLSTzJ5oMVv0ezEDaxfY6SfPY8B8HaHSqJbiod7fpfiJOqzwVCHL_BiBYMn71P5O_Veg69SwRQelVHvLJxG-rYfOT86fOOco1ewZGjsjfdgZKk4-kM6Y6Qk1ztDojE/s200/employment-contract-executive.jpg" width="200" /></a></div>
In the previous post, I discussed the importance of, and need for, employer/employee contracts and focused on <a href="http://seattlebusinesslawyer.blogspot.com/2013/05/key-provisions-of-employment-contract.html" target="_blank">agreements for entry-level or mid-level positions</a>. Part 2 of this series examines executive-level employment agreements. <br />
<br />
Executive employment agreements are for officers of the corporation who have management level authority. They typically contain more protection for the executive-level employee than an entry-level agreement would afford.<br />
<br />
With the executive agreement, the company may recognize that it has a valuable prospective employee whose employment will benefit the company. Therefore, company leadership frequently allows agreement terms to be beneficial to that executive candidate. There are, however, a few key provisions that should be included in an executive contract.<br />
<br />
<h3>
<b>Severance After Termination</b></h3>
<br />
Unlike the entry-level agreement, the executive contract would likely have language included for a severance package. For example, it might read that for every year the executive works for the company, he or she would get one month's salary as compensation, if the company terminated him or her. Rarely would you see a written severance package for entry-level or mid-level employees.<br />
<br />
In an executive employment agreement, there are usually two termination provisions: termination for cause and termination other than for cause. Termination for cause is if the executive does something contrary to the best interest of the company, such as dishonesty, for example. If the executive is terminated for cause, he or she is not entitled to any severance pay. Termination other than for cause means that the executive is let go due to a downturn in business or he or she decides to leave for other reasons.<br />
<br />
Generally, when an executive decides to leave voluntarily, there is no severance pay. The executive will only receive the severance pay if the company terminates employment, other than for cause.<br />
<br />
<h3>
Other Differences between Executive and Entry-Level Agreements</h3>
<br />
<ul>
<li>Unlike entry-level agreements, executive-level ones might include bonus provisions if the executive meets certain goals or targets.</li>
<li>Another key difference relates to disability. If the executive employee becomes disabled, that is not considered a voluntary leave — it's a "constructive discharge," so there should be a severance package. <br /><br />To satisfy the disability clauses, employers often offer a disability insurance package. That is, if the employee becomes disabled, the insurance company will compensate the executive for not being able to work. This is in lieu of severance pay and as long as the benefit of the insurance policy equals or exceeds the severance compensation that would be due, it is a fair way for the two parties to resolve the situation.</li>
</ul>
<br />
An executive-level agreement is a commitment for both the prospective employee and the business. If you are an employer or employee and you have questions about an executive-level employment agreement, <a href="http://www.jwtalbotlaw.com/Contact.shtml" target="_blank">contact us</a> to set up a consultation.<br />
<div>
<br /></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-4476063495342118142013-05-27T08:54:00.000-07:002013-06-06T04:57:06.482-07:00Key Provisions of an Employment Contract<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiK7nWG2DBr5un6s3zOaNmABqR5tQz2bGNduAPM3t7t3ZX3tsJqf7A7Am8bxH-fHz_flAgDDXn7UuhnjRvfJxN92NM3ZqMd4NBbgcfubm3ecB0JZ4EmKzQerKr6RrE6naiOZaZoTfMDhLo/s1600/employment-contract.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiK7nWG2DBr5un6s3zOaNmABqR5tQz2bGNduAPM3t7t3ZX3tsJqf7A7Am8bxH-fHz_flAgDDXn7UuhnjRvfJxN92NM3ZqMd4NBbgcfubm3ecB0JZ4EmKzQerKr6RrE6naiOZaZoTfMDhLo/s200/employment-contract.jpg" width="200" /></a><span style="font-family: inherit;">The employer/employee contract is a simple document that should be used
to protect both parties when they agree upon an employment position. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">This is part 1 of a 2-series post. This article will examine entry-level
or mid-level employment agreements. In part 2, I will walk you through the
executive employment agreement.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">An entry-level contract should have a configuration that can be used for
most employer/employee agreements, meaning that the layout and sections should
resemble each other from contract to contract. An example follows below. This
is favorable for the business since it doesn’t have to expend time and
resources to draft a unique document each time a new employee is hired. <o:p></o:p></span></div>
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<span style="font-family: inherit;"><br />
In this article, I will briefly discuss some of the provisions that a standard
employment contract should include. Two,
however, are critical; the non‑compete and non-solicitation clauses.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<h3>
<b><span style="font-family: inherit;">Non-compete Clause</span></b></h3>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">In entry-level or mid-level employment, a non-compete clause is included
primarily to protect the employer’s interests. In practice, it is preventing an
employee from leaving the company to work for another business — or start a
business — in the same industry. For example, if an employee spends years
learning a very specialized set of skills, he is prevented from quitting his
job and starting a business that offers the same services as his now
former-employer.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">Non-compete agreements have to be reasonable in terms of duration
to be effective. In Washington, three to five years is considered reasonable.<o:p></o:p></span></div>
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<br /></div>
<h3>
<b><span style="font-family: inherit;">Non-solicitation Clause</span></b></h3>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">A non-solicitation clause restricts an employee who has left a
company from contacting the clients or customers of her now former-employer.
Clearly, if an employee spends a number of years at an employer’s company,
relationships can build and the possibility for an employee to solicit business
from those relationships is very real. By including the non-solicitation
provision, the company is protecting itself from a potential loss of business
and revenue.<o:p></o:p></span></div>
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<br /></div>
<h3>
<b><span style="font-family: inherit;">To Sign or Not to Sign?</span></b></h3>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">Employers include these <a href="http://seattlebusinesslawyer.blogspot.com/2013/02/the-key-sections-of-effective-master.html">provisions
to keep their business intact</a> and guard against clients
or customers from leaving and potentially taking new skills and clients with
them. But what should a prospective employee do? A consideration of future
plans should be the first order of business. If your career goal is to start
your own business in the line of work that you’re being offered, you’ll want to
seriously consider signing a non-compete, unless you’re going to move out of state.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">In my law practice, I hear from people who want to start their own
venture after years of employment at a business. They’re excited to strike out
on their own, but they are surprised to discover that they signed a non-compete
or a non-solicitation clause. Maybe they had forgotten about that part of the
contract, or they overlooked it at the time, but that agreement may still be
binding. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">When you sign that important document, it is crucial to read it
carefully and understand what implications might affect your future plans.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<h3>
<b><span style="font-family: inherit;">Other Aspects of the
Contract</span></b></h3>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">In
addition to the non-compete and non-solicitation clauses, there are other
aspects covered by a general employer/employee contract:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
</div>
<ol>
<li><i style="font-family: inherit;">Employment Duties</i><span style="font-family: inherit;"> — a listing of job
expectations.</span></li>
<li><i style="font-family: inherit;">Term</i><span style="font-family: inherit;"> — the date which employment
starts and how long it is expected to last. This is typically either a
fixed-term or automatically renewing.</span></li>
<li><i style="font-family: inherit;">Compensation</i><span style="font-family: inherit;"> — payment and vacation
time allotted.</span></li>
<li><i style="font-family: inherit;">Benefits </i><span style="font-family: inherit;">— health insurance,
disability, life insurance, etc.</span></li>
<li><i style="font-family: inherit;">Confidentiality and Competitive
Activities</i><span style="font-family: inherit;"> — prohibitions (described above), which might include names of
direct competitors that an employee may not work for.</span></li>
<li><i style="font-family: inherit;">Company’s Property</i><span style="font-family: inherit;"> — terms of how the
employee should act on company property.</span></li>
<li><i style="font-family: inherit;">Termination</i><span style="font-family: inherit;"> — the reasons for and the
methods by which an employee can be terminated from employment.</span></li>
<li><i style="font-family: inherit;">Miscellaneous</i><span style="font-family: inherit;"> — extra
provisions, which can include Titles and Subtitles, No Implied Waivers,
Personal Services, Severability, Applicable Law, Notices and others.</span></li>
</ol>
<br />
<br />
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: inherit;">Although these employer/employee agreements are intended to be
simple and routine, you may still have questions that are specific to you. If
you are an employer or employee and you have concerns regarding an employment
contract, <a href="http://www.jwtalbotlaw.com/Contact.shtml">contact
us</a> to set up a consultation.</span><span style="font-family: "Century Gothic","sans-serif"; mso-bidi-font-family: Arial;"><o:p></o:p></span></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-86587254183827543002013-04-19T04:48:00.000-07:002013-05-28T05:31:37.136-07:00The Fair Labor Standards Act and Your Internship Program<span style="font-family: inherit;"><br /></span>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjABK22n1Bw4HQDT-oUcVkyNh1RP8FYXToJxk6tMUGXHXbItr68TGFQ299nyk32JxsP1sQHmU817YMZZcATDelt1jWwI0qehPQpppx51-BEOQCD_msitEPPZJXqPrFB0LDXO3EUQBdGwAM/s1600/internship-programs.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-family: inherit;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjABK22n1Bw4HQDT-oUcVkyNh1RP8FYXToJxk6tMUGXHXbItr68TGFQ299nyk32JxsP1sQHmU817YMZZcATDelt1jWwI0qehPQpppx51-BEOQCD_msitEPPZJXqPrFB0LDXO3EUQBdGwAM/s200/internship-programs.jpg" width="142" /></span></a></div>
<div class="NoSpacing">
<span style="font-family: inherit;"><span style="font-size: 10pt;">Internships can be a
valuable experience for both the intern and the company offering the
internship. Under the right circumstances, internships can serve as extended
interviews, in which you, as the employer, can learn more about the intern’s
personality and capabilities in the workplace, while the intern gains
potentially valuable on-the-job experience</span>.</span><br />
<span style="font-family: inherit;"><br /></span>
<span style="font-size: 10pt;"><span style="font-family: inherit;">Because of the
experience students can gain, many are open to taking unpaid internships. However,
as an employer, you need to be aware of guidelines governing whether
internships need to be paid or may be unpaid.</span></span><br />
<span style="font-family: inherit;"><br /></span>
<div class="NoSpacing">
<span style="font-size: 10pt;"><span style="font-family: inherit;">Generally, internships at for-profit businesses
should be paid unless the intern is receiving training for his or her
educational benefit. The U.S. Department of Labor provides the following six
guidelines to consider when deciding if an internship is to be paid or unpaid:<o:p></o:p></span></span></div>
<span style="font-family: inherit;"><br /></span>
<div class="NoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: inherit;"><span style="font-size: 10pt;">1.<span style="font-size: 7pt;">
</span></span><!--[endif]--><span style="font-size: 10pt;">The internship, even though it includes actual
operation of the facilities of the employer, is similar to training which would
be given in an educational environment; <o:p></o:p></span></span></div>
<div class="NoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: inherit;"><span style="font-size: 10pt;">2.<span style="font-size: 7pt;">
</span></span><!--[endif]--><span style="font-size: 10pt;">The internship experience is for the benefit of the
intern; <o:p></o:p></span></span></div>
<div class="NoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: inherit;"><span style="font-size: 10pt;">3.<span style="font-size: 7pt;">
</span></span><!--[endif]--><span style="font-size: 10pt;">The intern does not displace regular employees, but
works under close supervision of existing staff; <o:p></o:p></span></span></div>
<div class="NoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: inherit;"><span style="font-size: 10pt;">4.<span style="font-size: 7pt;">
</span></span><!--[endif]--><span style="font-size: 10pt;">The employer that provides the training derives no
immediate advantage from the activities of the intern; and on occasion its
operations may actually be impeded; <o:p></o:p></span></span></div>
<div class="NoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: inherit;"><span style="font-size: 10pt;">5.<span style="font-size: 7pt;">
</span></span><!--[endif]--><span style="font-size: 10pt;">The intern is not necessarily entitled to a job at
the conclusion of the internship; and <o:p></o:p></span></span></div>
<br />
<div class="NoSpacing" style="margin-left: .5in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: inherit;"><span style="font-size: 10pt;">6.<span style="font-size: 7pt;">
</span></span><!--[endif]--><span style="font-size: 10pt;">The employer and the intern understand that the
intern is not entitled to wages for the time spent in the internship.<o:p></o:p></span></span></div>
</div>
<span style="font-family: inherit;"><br /></span>
<div class="NoSpacing">
<div class="NoSpacing">
<span style="font-size: 10pt;"><span style="font-family: inherit;">Determining whether an internship needs to be paid
can be complicated and involves many different variables. The Department of
Labor also provides additional situations to consider.<o:p></o:p></span></span></div>
</div>
<span style="font-family: inherit;"><br /></span>
<div class="NoSpacing">
<h3>
<b><span style="font-family: inherit;">Likely to Qualify as Educational</span></b></h3>
</div>
<div class="NoSpacing">
<div class="NoSpacing">
<span style="font-size: 10pt;"><span style="font-family: inherit;">An internship is likely to be considered an
educational experience (and therefore will not need to be paid) if the
internship is structured around a classroom experience. This is often the
situation when a college or university provides oversight and educational
credit for the internship. Additionally, if an internship provides the intern
with widely applicable experience, rather than simply providing training for a
specific job at the company, it is more likely to be viewed as an educational
experience.<o:p></o:p></span></span></div>
<span style="font-family: inherit;"><br /></span>
<span style="font-size: 10pt;"><span style="font-family: inherit;">During
my last quarter at the <a href="http://www.law.washington.edu/"><span style="color: windowtext;">University of Washington School of Law</span></a>, I
was an intern and worked in the chambers of United States District Court Judge
Dimmick. I received full school credit for basically serving as an
assistant law clerk. I did research for pending cases and wrote draft
opinions for Judge Dimmick’s signature. It was a fantastic learning
experience for me, and took a bit of the work load off of Judge Dimmick’s two
paid clerks.</span></span><br />
<div>
<span style="font-family: inherit;"><br /></span>
<span style="font-family: inherit;"><br /></span></div>
</div>
<div class="NoSpacing">
<h3>
<b><span style="font-family: inherit;">May Not Qualify as Educational</span></b></h3>
</div>
<div class="NoSpacing">
<div class="NoSpacing">
<span style="font-size: 10pt;"><span style="font-family: inherit;">Alternatively, If the intern is responsible for
duties that paid employees would otherwise handle, then the intern may need to
be paid for his or her services. Note that if interns are completing productive
work for your business, the educational experience may not exempt the intern
from minimum wage requirements. Finally, if an internship is used as a trial
period before considering hiring the intern for full-time employment, it is
likely that the intern should be paid.<o:p></o:p></span></span></div>
<span style="font-family: inherit;"><br /></span></div>
<div class="NoSpacing">
<div class="NoSpacing">
<span style="font-size: 10pt;"><span style="font-family: inherit;">The guidelines for internship programs under The
Fair Labor Standards Act can be complicated. If you are unsure how the law
applies to your business, please <a href="http://www.jwtalbotlaw.com/Contact.shtml">contact us</a> to schedule a consultation.</span><span style="font-family: Century Gothic, sans-serif;"><o:p></o:p></span></span></div>
</div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-34796656940342270742013-03-15T05:22:00.000-07:002013-03-15T05:28:20.365-07:00Using Letters of Intent to Initiate Effective Business Negotiations<br />
<div style="text-align: left;">
</div>
<div class="MsoNormal">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhT08f9ydiYkn20Rq2vFMvlAzcyYJMHJEszLzPo9EnGhSX6Fkr0cLaTqEaQH5ngna1Xp9tnmt3Pc6731i0JCs3hy2uOwsPnah2XKP3MsurvPgdwQzmFCrn2W3-svPeib1Ib-3wSuYU5f3Y/s1600/LettersOfIntent.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em; text-align: justify;"><img alt="letters-of-intent" border="0" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhT08f9ydiYkn20Rq2vFMvlAzcyYJMHJEszLzPo9EnGhSX6Fkr0cLaTqEaQH5ngna1Xp9tnmt3Pc6731i0JCs3hy2uOwsPnah2XKP3MsurvPgdwQzmFCrn2W3-svPeib1Ib-3wSuYU5f3Y/s200/LettersOfIntent.png" title="" width="200" /></a><span style="font-family: "Times New Roman","serif";"></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">
When exploring possibilities for a company merger,
an acquisition of assets, or just a simple business arrangement, the standard
and most effective approach to this challenge is through a letter of intent
with a confidentiality provision. The advantage of this strategy is that you
can “test the waters” of entering a potential business relationship without
losing control of any information you deem proprietary.</span></div>
<br /><o:p></o:p>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">Within
any letter of intent, exclusivity and confidentiality are key elements;
business interests are mutual, and neither party should divulge or share any of
the private information contained in the letter with third parties. It’s
important to note that while all letters of intent always include a
non-disclosure or confidentiality provision, a non-disclosure agreement can
also stand alone or serve as an addendum to other contractual documents.</span><span style="font-family: 'Times New Roman', serif;"> </span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman","serif";">When
developing a letter of intent, your desired goals need to be spelled out and tailored
specifically to the proposed business relationship you’re seeking. You also
need to state any contingencies that make the business relationship
conditional. These provisions usually relate to financing or logistics
requirements, which if not satisfied, will void the proposed agreement. Equally
important, you need to secure some protection for both parties regarding
sensitive or confidential information. A non-disclosure provision allows you </span><span style="font-family: 'Times New Roman', serif;">to work together<span style="letter-spacing: -.1pt;"> without fear
that you’re going to be subverted or undermined by someone else’s actions —
perhaps a price-bidding maneuver, high or low, depending on your positioning.</span></span><span style="font-family: "Times New Roman","serif"; letter-spacing: -.1pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">Recently, I helped two
companies in merging their businesses into one larger operation, all of which
began with a letter of intent to explore the possibilities. Part of that process
required the sharing of financial records, private information that no company
wants escaping into the public domain. Consequently, we created a
non-disclosure provision citing mutual confidentiality in exchanging certain
information. We needed to confirm that if the business relationship were not
successful, then all the exchanged documents on paper would have to be returned
or destroyed, including originals and photocopies, and that an agreed-upon
mechanism for purging sensitive e-mails and attachments would have to be
established.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">I generally advise setting
a long-term non-disclosure period, regardless of the planned success or
unexpected failure of the business relationship, and that any exchanged information
shared outside of the signing parties within their respective organizations should
be on a strictly need-to-know basis. In proposed agreements where
subcontractors may be involved, they too must be bound by the same terms of
confidentiality contained in the original letter of intent and sign a
non-disclosure agreement. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">As noted earlier,
exclusivity is important, much like having a serious, committed relationship
with someone — engaged but not yet married. In fact, any letter of intent
should always point out that during the course of specific business
negotiations, both parties are mutually exclusive and must not deal with anyone
else with the same agenda. In other words, both parties need to be able to
proceed in good faith with some assurance that they are going to be working together
exclusively during the term of the letter of intent. As in the case of a
personal engagement that doesn’t work out, if the business relationship doesn’t
come to fruition, then either party is free to pursue further transactions with
other parties.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Times New Roman', serif;">In summary, it is
important to remember that the primary objective within any letter of intent is
to assure exclusivity and confidentiality regarding the business relationship
you’re proposing and to ensure an effective negotiation, with all parties
protected.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com4tag:blogger.com,1999:blog-48263797880670481.post-89350177760253391742013-02-15T04:43:00.001-08:002013-02-15T04:45:34.655-08:00The Key Sections of an Effective Master Services Agreement<span style="font-family: Times, Times New Roman, serif;"><br />
</span><br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjaeziRt5vdUDqRRFQ73dt0lIJTJOn9-RTRoA8IZ7cqMLF-rRFp3OzlrUaOvem8paYGR6tAGC887zuW0rCZse_Zgwwn-24hE4OF-ToY8dT8z12NOK9L8xW8FKudjVVVcM4wl_T_3EEQZFc/s1600/KeySections.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><span style="font-family: Times, Times New Roman, serif;"><img border="0" height="160" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjaeziRt5vdUDqRRFQ73dt0lIJTJOn9-RTRoA8IZ7cqMLF-rRFp3OzlrUaOvem8paYGR6tAGC887zuW0rCZse_Zgwwn-24hE4OF-ToY8dT8z12NOK9L8xW8FKudjVVVcM4wl_T_3EEQZFc/s200/KeySections.jpg" width="200" /></span></a></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><span style="letter-spacing: -.1pt;"><a href="http://seattlebusinesslawyer.blogspot.com/2013/02/master-services-agreements-can-help.html">In
our previous discussion</a>, we looked at the major benefits of master services
agreements (MSAs), </span>particularly
how they can streamline future business opportunities for your organization. As
a quick review: A MSA serves as a general blueprint for how mutual business
interests will be addressed and conducted on one project or on multiple or
ensuing contracts.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;">Although a MSA can be a less
formal contractual approach for project work, its development still requires
careful thought and attention to detail in crafting an effective document. The
initial step begins with the scope of work — a statement explaining what the
parties are seeking in the agreement and a description of the services to be
performed. The scope spells out the “bigger picture” of the business
relationship, noting that future scopes of work will be issued pursuant to the master
agreement. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;">A key element of a MSA is the
provision for <i>timely payment of services</i>,
with a 30-day time frame considered the general standard for most industries.
Payment should also be conditional upon approval of the work performed
satisfactorily. However, be cautious. Prevent line-item invoicing disputes from
placing your entire payment at risk, or at the very least, from delaying
payment beyond 30 days. I always include language noting that if any part of
the invoice is disputed, the undisputed costs
shall still be paid according to the agreement terms as a show of good faith
among the parties in resolving their dispute.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span lang="EN" style="font-family: Times, Times New Roman, serif;">A <i>termination</i> clause is another
necessary provision of a MSA. I generally advise setting contract terms for
specific time frames, say for one year, which automatically renew unless
officially terminated. As accepted practice, either party should be able to
terminate with reasonable notice at any time. Although such notice usually
depends on the nature of the business itself, 60 days is considered preferable,
especially if you have numerous subcontractors involved with a project.
However, some organizations do lean toward shorter notification periods.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><i><span lang="EN">Confidentiality</span></i><span lang="EN"> is an important part of any contractual relationship or when following a
termination, unexpected or planned. A provision regarding confidentiality and
nondisclosure of proprietary information should always be standard. The
language should be explicit — and mutual, not unilateral confidentiality — whenever
possible. It is preferable that both parties, not one, should agree not to
disclose any valued information to third parties.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><span lang="EN">If the creation of <i>intellectual
property</i> is part of the MSA scope of work, the rights to that creation must
be defined among the parties. In <st1:state w:st="on"><st1:place w:st="on">Washington</st1:place></st1:state>,
the inventor of any property as a service provider automatically retains all
intellectual property rights, if not stated otherwise in the agreement.
However, most contracting parties prefer the insertion of a “work-for-hire”
provision in the MSA, which states that </span>any inventions, patents,
copyrights, or trademarks created during the course of the contract are
considered intellectual property, whose rights will be retained by the
contracting party, not the service provider.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><i><span style="letter-spacing: -0.1pt;">Indemnification</span></i><span style="letter-spacing: -0.1pt;"> provisions are another standard feature of
MSAs. The indemnification process basically means that one party will step in
and defend the other if a mistake, error or omission occurs. Like
confidentiality agreements, indemnification provisions can be mutual or unilateral,
although usually they are unilateral because one party — often the contracting
party — will have greater bargaining power to position unilateral
indemnification in its favor. Regardless, should you find yourself </span>in the situation where contractually you have a unilateral
indemnification provision that’s not in your favor, make sure that you have
proper liability and risk insurance as a safeguard.<span style="letter-spacing: -.1pt;"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><span style="letter-spacing: -0.1pt;">It is also typical for a MSA to have a <i>non-assignment</i> provision, meaning that
the scope of work contractually tendered cannot be assigned to someone else
without the approval of the other party. Obviously, you don’t want to enter into
an </span>agreement only to find that your contractual
interest is later assigned to another party with whom you’ve not encountered or
dealt with before.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;">Other sections common to MSAs include <i>no waiver</i>, <i>notification</i>, <i>entire agreement</i>, and <i>severability</i> provisions. A <i>no-waiver</i> clause basically points out
that just because one or more aspects of the contract have been ignored,
intentionally or otherwise, the entire agreement cannot be invalidated. A <i>notification</i> provision simply identifies
the communication format for notifying contractual parties.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;">An <i>entire agreement</i>
provision, also known as an “integration clause,” prevents later oral contradictions
from either party to the basic terms of the entire contract, usually aimed at
altering or adding language that was not in the original MSA. <i>Severability</i>, which is similar to the
no-waiver clause, states that if any provision is found to be contrary to law
or unenforceable, it doesn’t invalidate the entire contract.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Times, Times New Roman, serif;">Finally, I’m an advocate for <i>spirit
of cooperation</i> provisions. Although a contract is a formal agreement, it
shouldn’t be viewed as adversarial or negative in a litigious sense. It should
relate how the parties are going to move forward in a partnering effort to
develop a positive business relationship. To that end, I always build in
mediation and arbitration clauses as vehicles for negotiating resolutions in
good faith when problems arise.</span><span style="font-family: "Times New Roman","serif";"><o:p></o:p></span></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-83113568519622744042013-01-16T13:28:00.000-08:002013-02-11T13:34:58.728-08:00Master Services Agreements Can Help Cultivate Long-Term Business Interests<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3tDY2ovS-aSiWkGlDpeEMPsQ6Zsu1SF4SXZ3QrCJ_rUM-pO9G4gMrx4iyPm67-zDXT7VO9UhPmpe2YEb8ZRL0E9f5US_k21CWrg_k5WGn0_bAJS75kpeK1IrTvTjndiQt6rhVTZB9DSA/s1600/masterservicesagreements.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3tDY2ovS-aSiWkGlDpeEMPsQ6Zsu1SF4SXZ3QrCJ_rUM-pO9G4gMrx4iyPm67-zDXT7VO9UhPmpe2YEb8ZRL0E9f5US_k21CWrg_k5WGn0_bAJS75kpeK1IrTvTjndiQt6rhVTZB9DSA/s200/masterservicesagreements.jpg" width="150" /></a></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif";">If your
organization is seeking to expand business opportunities and foster long-term
relationships, one of the most beneficial tools to use is a master services
agreement (MSA). This document not only serves as a blueprint for how mutual
business interests or projects between two parties are to be addressed and
conducted, but it also helps organize business relationships in a contractual
but not burdensome manner, making it a very user friendly tool.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif";">MSAs are
popular for establishing relationships among a wide array of businesses,
including information technology, communications, and life sciences.
Traditionally, they have been used frequently for union negotiations,
government contracts, and supply chains aimed at long-term relationships.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Times New Roman","serif";">One of
the primary benefits of crafting a MSA at the beginning of any business
relationship is for expediting future opportunities. There is a true advantage
to this approach, especially if the signing parties to the agreement are
working together on more than one project at a time or plan to engage in
multiple projects in the future. In many instances, the original MSA requires
little or no revision of its basic contract provisions — saving time and
overhead dollars. Subsequent agreements generally only call for a new scope of
work, perhaps a revised purchase order, or some other change order that
complements the original MSA. <o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: 'Times New Roman', serif;"><br />
This happened to be the recent case with one of my life sciences clients, a <a href="http://seattlebusinesslawyer.blogspot.com/2012/04/deeper-into-licensing-abyss.html">Clinical
Research Organization</a> providing support for drug trial testing for the Food
and Drug Administration. My client was hired to monitor the drug administering
protocol and patient results for one particular drug at various health clinics.
The MSA spelled out the business relationship for that particular project. When
another drug is to be tested through clinical trials — next week, next month,
or next year — a new scope of work will be issued for this second project,
which will just basically outline what the new drug is and its planned use or
purpose. However, the terms of the original MSA will still apply to this new
project. <br />
<br />
<span style="letter-spacing: -.1pt;">I’ve also observed long-term applications of
MSAs in installation contracting: cell phone towers, cable systems, and
communications infrastructure. Some of these agreements have been in effect for
more than 10 years, and the process is simple. The parent company just forwards
a revised purchase order or directive to the contracting interest, stating,
“Pursuant to our master services agreement, please install . . . .” Revisions
to the location, cost, and completion time are specified on the MSA as usual,
but the minor terms of the contract remain intact from earlier versions.</span><o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: 'Times New Roman', serif;">As you can see, building
a foundation for business longevity is a key benefit of MSAs. If you let your
client know going forward that you can add to the MSA by tacking on an addendum
or a scope of work change order, then you won’t have to negotiate the basic
terms all over again.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<span style="font-family: 'Times New Roman', serif; font-size: 12pt;">In our next discussion, I’ll address some of the
key sections of a MSA and where to begin in developing a document that has
flexibility for long-term use.</span>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-24404432670453637402012-12-13T02:29:00.000-08:002012-12-13T02:29:48.652-08:00A Solo Legal Practice May Afford More Flexibility, Balance of Work and Lifestyle <!--[if !mso]>
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<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";"></span></div>
<div class="MsoNormal" style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjM_F7Xym_hEpdFt2YXWJJzy5CRPYc_K7ArcQupddcLJ6vt1e4sJ5kwXT5A9rkv9I_p6G7ljolx0gFt94wDmgy_rtPmJOAEa5-DGYdThaGQXtoiDWMmsmyNskNYW-zJza75ioVNE5jjBo4/s1600/talbot+balance.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjM_F7Xym_hEpdFt2YXWJJzy5CRPYc_K7ArcQupddcLJ6vt1e4sJ5kwXT5A9rkv9I_p6G7ljolx0gFt94wDmgy_rtPmJOAEa5-DGYdThaGQXtoiDWMmsmyNskNYW-zJza75ioVNE5jjBo4/s200/talbot+balance.jpg" width="200" /></a><span style="color: black; font-family: "Times New Roman";">If you’re an avid fan of the television drama “The Good Wife,” you
may sometimes wonder what it’s like to work for a large legal firm. Yes, the
hours do seem long and grueling, yet there’s that attraction of a high salary
plus the glamor of high-profile litigation and courtroom challenges. I will
admit that television does a fair job of portraying the ambiance of large legal
practices, but as they say, the devil is in the details.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">Here in Seattle, a partner in a larger firm must generate about
$200,000 of billable hours just to cover overhead costs — associates,
paralegals, secretaries and office leasing — before he or she starts yielding
any individual profit. That’s a lot of financial posturing for the luxury of
serving a larger practice with staff and office overhead. Still, bigger firms
do provide valuable training for attorneys just beginning their careers. They
learn the practice of law in their chosen niche or specialization, and they
gain valuable experience in developing a clientele base.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">My legal career, too, essentially began in a large firm, but I
felt somewhat trapped in a field of practice that was heavily litigious and
full of conflict. I didn’t like the combative nature of the litigation process,
and I really felt I would be happier if I were working with people to <a href="http://seattlebusinesslawyer.blogspot.com/2012/08/mediation-simple-effective-approach-for.html" target="_blank">avoidproblems in the first place</a>, rather than solving them later down the road. So I
approached my litigation clients, informing them of my decision to leave the
firm and go “solo.” Basically, I said, “I want to help you grow as a business
and be successful in business. You’ve hired me before to defend you in
litigation. Why not consider me as your business attorney?” With this
convincing premise, I hit the ground running with no interruption in business
activities or income and have never looked back!</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">Having the freedom and independence as a solo practicing attorney
is truly incredible. In one sense, you are tied to your practice because you must
be available 24/7 for clients, but your workday is your own. You can create the
hours that you work and the hours that you don’t. Although my work day may often
be interrupted with phone calls or emails from clients, I also have the
flexibility to work 12 or 13 days straight and then take a week off. More
importantly, I’m able to balance my personal lifestyle with the enjoyment of my
practice by working from several different locations, including Seattle and Whistler, British Columbia. I have done that since the
2010 Olympics, when I served as a volunteer for the event and realized that I
could practice effectively from both locales with some help of modern
technology.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">Over the last five years of operating my solo practice, I’ve
encountered other attorneys, too, that have successfully established their own
practices with better incomes, leaving behind the larger high-profile firms and
their overhead pressures. Why not? A big office tower with high-figure floor
rents and maintenance costs is no longer necessary to practice law. Technology
has revolutionized the legal marketplace. All you need is a desktop or laptop computer,
a printer, a scanner and some mobile communication equipment, and your office
can be any size anywhere, even at home. And when scheduling clients, you now
have the flexibility of visiting their offices. In fact, I actually think
clients are more appreciative of the fact that an attorney is willing to come
to them on their turf. Instead of being preoccupied with billable hours at high
rates, clients can now develop more <a href="http://seattlebusinesslawyer.blogspot.com/2012_06_01_archive.html" target="_blank">cost-effective business relationships withtheir attorneys</a>, where they feel more like partners rather than line items on a
profit statement.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">Even today I’m still surprised when new clients tell me of their
disappointment with previous attorneys who were not responsive in returning
phone calls or emails, or who scheduled meetings and then failed to show. I
don’t understand it, especially with all the modes of communication technology
available. Moreover, this behavior delivers a poor impression of the legal
profession to the public. What are these attorneys thinking? Success only
prevails when clients are serviced in a respectful manner. If we can provide
this service to our clients from our home offices, so much the better.</span><span style="font-family: "Times New Roman";"></span></div>
<div class="MsoNormal" style="tab-stops: 177.0pt; text-align: justify;">
<span style="mso-tab-count: 1;"> </span></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-55989302287847261442012-11-15T06:24:00.000-08:002012-11-16T10:25:30.031-08:00Reflections of “Man’s Best Friend” in Protecting Client Interests<!--[if !mso]>
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<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">Most
avid dog owners will admit their canine companions are creatures of habit,
comfortable in their routines, yet still guided by instincts of which we as
humans are basically clueless. The moment you “think” you have figured out all
this instinctive behavior can often have surprising consequences. Fortunately
for me and my dog Eddi, a <span style="color: black;">German short-haired pointer,
we haven’t become candidates quite yet for <i style="mso-bidi-font-style: normal;">America’s
Funniest Home Video</i>, but there’s still time. </span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman"; letter-spacing: -.1pt;">Early one morning recently, I let Eddi out in
the backyard to do her normal “business,” something that generally takes about 2
or 3 minutes. When she didn’t return on time as usual, I became a little
anxious. As it turns out, she was gathering an opossum — undoubtedly a valued
gift for her master. I must note that I have received this same gift several
times over already. Her strong instincts to hunt and track game don’t end with
unsuspecting opossums, however. </span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQYBUgzu0tgszUO5GcbEKwiGe6uKASzZ2dDbeAR4z0D2gAdKRsrmUjBH05QjbMgzYs84Yu3aaO1XBJ_3S0r_0I6KYItMdmIkh0K-cfSw0AAF47FewFXETWDhQSipZuijAKvzn_0WJdvbQ/s1600/12+08+11+Eddi.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQYBUgzu0tgszUO5GcbEKwiGe6uKASzZ2dDbeAR4z0D2gAdKRsrmUjBH05QjbMgzYs84Yu3aaO1XBJ_3S0r_0I6KYItMdmIkh0K-cfSw0AAF47FewFXETWDhQSipZuijAKvzn_0WJdvbQ/s400/12+08+11+Eddi.jpg" width="300" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman"; letter-spacing: -.1pt;">This past summer, Eddi resorted to chasing
small black bears. After numerous encounters with chasing these wild animals up
trees and through the lowland forests, I knew I had to address her
uncontrollable behavior, mostly for her own protection. So, I invested in a
shock collar to help reinforce my stop commands, which she had obeyed
previously, in addition to developing some new commands to help guard against
her sometimes out-of control behavior</span><span style="color: black; font-family: "Times New Roman";">.</span><span style="font-family: "Times New Roman";"></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXd0n7e4cN9tPzq54zwXfgpGhFVFsAQEdgrso9Pw8yYgQ-ZO5f5V0RD7C81ZZHgOC43TyijcpYRjGJHZphUU-7rWsL1VDXQ_ldTn2aqp9vaLWHEUaRJv5qyqcgBkS87b-AJcWdQb02jVE/s1600/06+08+11+Eddi+trees+a+bear.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiXd0n7e4cN9tPzq54zwXfgpGhFVFsAQEdgrso9Pw8yYgQ-ZO5f5V0RD7C81ZZHgOC43TyijcpYRjGJHZphUU-7rWsL1VDXQ_ldTn2aqp9vaLWHEUaRJv5qyqcgBkS87b-AJcWdQb02jVE/s400/06+08+11+Eddi+trees+a+bear.jpg" width="300" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">By
now, you’re probably wondering where I am headed with this personal tale. It’s
simple. Out of love and fondness for our four-legged companions, we often
assign them human traits, mostly the ability to think and reason, but what
about man? Do we not sometimes exhibit that same lack of control of our
behavior that we witness in our pets? We don’t have full reign over our lives
entirely; we depend on others, much like our pets depend on us. Attorney-client
relationships should be built on the premise of trust and dependence to consult
with each other and openly discuss issues before chasing that proverbial bear
up a tree.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">My clients that have the most control over their businesses and
the fewest legal conflicts are the ones that come to me early on to discuss
potential problems before they escalate into legal dilemmas. In promulgating
contractual relationships, we can modify documentation where necessary to
protect clients’ interests, making sure they fully understand all pertinent
issues beforehand. Those who instinctively feel they can handle their own legal
matters or sign contracts without first consulting an attorney are the ones who
usually end up in litigious situations because they don’t understand the ramifications
of their decision.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman"; letter-spacing: -.1pt;">Of course, I must confess that perhaps some
of my clients occasionally gaze upon me unknowingly like my dog Eddi, asking
herself, “What is he doing?” After the recent encounters with bears, she took
on a new challenge a couple of times — herding elk</span><span style="color: black; font-family: "Times New Roman";">. She gets behind the herd
and chases them towards me, which is probably instinctual, encircling game and
bringing it back to the hunter, waiting for the hunter to kill it. Well, I am
no hunter, so she probably thinks I am the most inept owner in the world
because she’s doing all the work and I’m not finishing the task. As Eddi’s
master, though, it is my responsibility to protect her and safeguard her
behavior as much as possible, particularly with new experiences, such as
chasing elk. I have that same obligation to my clients.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">Just as I have to constantly retrain Eddi to keep her clear of
harmful encounters with other animals, I try to continually steer my clients in
the right direction. In fact, it is often my role to discuss clients’ new
business proposals. We review contract language; we talk about potential risks
and rewards; we examine ways to avoid risk; and we look at how to increase the
opportunities for more business and further benefits. I believe that all
successful businesses, like pets and our selves, should require the same
consideration of their well-being.</span><span style="font-family: "Times New Roman";"></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-89874177745938158592012-10-10T03:04:00.000-07:002012-10-10T03:04:33.996-07:00An Ideal Client Brings New Challenges, Cooperation . . . and Excitement!<!--[if !mso]>
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<a href="http://www.blogger.com/blogger.g?blogID=48263797880670481" name="_GoBack"></a><span style="font-family: "Times New Roman";"></span></div>
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<span style="font-family: "Times New Roman";"></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhul8SFG-2ulmZsyo4mRhCMdD517LgZNroS4CZ8W6qij5c4sWYsudjRRwfCn6kWKXRLGLUbgMOnmbLdrgC63002-kkSJTLlzxUOcqw6zDSP9R6rKxi4hQ-53LqBWyNTpPx7saQxi73_WWs/s1600/talbot+ideal+client.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="182" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhul8SFG-2ulmZsyo4mRhCMdD517LgZNroS4CZ8W6qij5c4sWYsudjRRwfCn6kWKXRLGLUbgMOnmbLdrgC63002-kkSJTLlzxUOcqw6zDSP9R6rKxi4hQ-53LqBWyNTpPx7saQxi73_WWs/s200/talbot+ideal+client.jpg" width="200" /></a></div>
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<span style="color: black; font-family: "Times New Roman"; letter-spacing: -.1pt;">You know the old saying: “You can choose your
friends but not your family”? Well, what about clients? Someone asked me the
other day, what is my ideal client? That’s an easy one. They are a client I
recently picked up from a referral, which is how I develop a majority of my
business.</span></div>
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<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman"; letter-spacing: -.1pt;">My new client is an asbestos abatement
company located in south King County here in Washington.
They were contracted by a very large company in China, to train and certify their workers
to become licensed asbestos handlers. The Chinese operation must put together a
team of workers to abate asbestos on worldwide ocean-going vessels. As you
might expect, China can
perform the abatement tasks at about two-thirds the cost of doing the work in Seattle</span><span style="color: black; font-family: "Times New Roman";">.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">This is exciting territory for me! Thanks to this American
enterprise, it’s a great opportunity for the Chinese company, and I’m right in
the center of the action, serving as a legal liaison. I just love it!
Initially, I drafted the letter of intent outlining basic parameters and the
provisions for a confidential non-disclosure agreement regarding the business
venture. I just finished the third phase, which is the training service
agreement. My client will be dispatching four or five instructors to China
to reside there full-time and train workers.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">I also drafted the licensing agreement for the use of the manuals
and training materials by the Chinese, assuring that the American company will
keep full ownership of its intellectual property. There is going to be a host
of other contracts to develop, too, as we move forward with this business
arrangement.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">So far, my observations are quite optimistic. I am seeing
firsthand how this business is going to evolve. I have a very good relationship
with my client and an equally good relationship with the party in China.
Fortunately, this is not a case where you are battling with the terms of
agreement. This is the ideal situation in which you’re discussing matters of
importance with both sides — what they each want to accomplish with the
agreement. And I get to memorialize it in simple, easy-to-understand language
that is going to help everyone move forward and understand their working
relationship</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">In terms of the business contract, all legal provisions are based
on American law via a choice-of-law provision, which is why it was very wise of
my client to take the initiative in developing the first round of draft
agreements. This entire process will be governed by Washington state law, and we’ve placed a
choice-of-law provision in the contract, to guarantee this. Not only is this
good business sense, it is a sound practical move. Licensing for asbestos
abatement falls under the strict guidelines of the U.S. Environmental
Protection Agency, and the Chinese company is seeking accreditation under an
American licensing system. This, of course, will give the Chinese more
credibility when they’re marketing their services to international shipping
companies.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">As part of my oversight responsibilities, trust is a vital issue.
We have incorporated provisions into the contract regarding payment and have
clearly set forth an agreement that payment is due within 15 days upon
invoicing. I consider this matter to be the most contentious, potentially
speaking. If there’s a dispute along the way, it will probably be over payment
issues.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">The larger concern focuses on the intellectual property rights to
the manuals and training materials that are being licensed. You quite often hear
about the Chinese knocking off other companies’ research, patents and property
rights. Again, there’s the matter of trust; we are hoping that this Chinese
company is not going to mass-produce these manuals and materials, thereby
undercutting my client’s ability to do business in China.<span style="background: yellow; mso-highlight: yellow;"></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="background: yellow; color: black; font-family: "Times New Roman"; mso-highlight: yellow;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman"; letter-spacing: -.1pt;">To contractually safeguard against this
violation, we have assigned this business arrangement a finite two-year term,
with the ability to renew or not renew after that period of time. Within two
years, we’ll certainly know whether any piracy issues have surfaced. If any do,
we’ll just pull the plug on the contract. However, I believe it is beneficial
for the Chinese to work with my client and abide by the rules, so I’m going to
keep an optimistic outlook</span><span style="color: black; font-family: "Times New Roman";">.</span><span style="font-family: "Times New Roman";"></span></div>
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<br /></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-48464041022908621732012-09-20T06:00:00.002-07:002012-09-20T06:00:58.293-07:00Reviewing Compliancy with Employment Laws Can Help Mitigate Your Legal Risk <!--[if !mso]>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6gJNkRUWYN2bJaabeurzuxbptMqz6xF55WZRiLZk2lQsBfhhhqhOuzd3140gXk4MrKBzgwLDFKMqX_nI880xLbpJeY8Cm5gMA72QsT0P7MGegzuHovF9Mb3Ldzgs8cjun698eQYuD6g8/s1600/talbot_compliance.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="131" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6gJNkRUWYN2bJaabeurzuxbptMqz6xF55WZRiLZk2lQsBfhhhqhOuzd3140gXk4MrKBzgwLDFKMqX_nI880xLbpJeY8Cm5gMA72QsT0P7MGegzuHovF9Mb3Ldzgs8cjun698eQYuD6g8/s200/talbot_compliance.jpg" width="200" /></a></div>
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<span lang="EN" style="color: black; font-family: "Times New Roman"; mso-ansi-language: EN;"></span><span style="font-family: "Times New Roman";">As a responsible member of the legal profession, I sometimes
have to remind clients of the value in preventing disputes before they escalate
into something more serious. And one of the most effective ways for businesses
to be proactive in avoiding unnecessary legal risk is to periodically
self-examine their organizational structure and operations, to safeguard their compliance with state and federal employment laws.</span></div>
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<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman"; letter-spacing: -.1pt;">An area of compliance often vulnerable to legal
repercussions is the typical employee file. What information are you or your
human resources department storing in these files, and how is this information
organized? Although common practices may suggest that one umbrella file for
each employee containing all data is the most centralized solution, that
approach may not legally satisfy some compliance standards. For instance, did
you know that the Health Insurance Portability and Accountability Act of 1996
requires companies to maintain separate files for employees regarding their
health insurance benefits package and medical history? Unfortunately, some
businesses could inadvertently be sharing this data in the same file with
general information relating to hiring agreements, performance evaluations and
disciplinary actions. As a side note, it’s also a good idea to know the time
expiration statutes for retaining employee documents within your state</span><span style="font-family: "Times New Roman";">.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman"; letter-spacing: -.1pt;">Another compliance pitfall is Form I-9: Employment
Eligibility Verification, which is issued by the U.S. Department of Homeland
Security, containing citizenship and immigration information. Aside from errors
in completing these forms, I have sometimes observed vulnerabilities in the
security and storage of these documents. As with maintaining separate health
insurance and medical history files for each employee, I suggest that I-9 forms
be placed in secure binders and locked in storage. I also recommend that these
documents be electronically scanned for backup purposes and stored in separate,
secure locations. I might note, too, that there are paperless methods for
completing I-9s and safely storing them off-site</span><span style="font-family: "Times New Roman";">.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">Company
pension and retirement investment reforms over the last decade have also
introduced new areas for compliance. Today, you must assure your employees they
are receiving updated, clear reporting of their vested financial benefits. This
not only requires proper documentation, but it also calls for opening lines of
communication that are easy for employees to comprehend. They should always
have access to business financial advisers to explain any concerns and answer
questions regarding their benefits.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">Businesses
also occasionally overlook another compliance detail: the displaying of posters
pertaining to U.S.
labor laws. Although it’s easy to forget this small task, these posters are
mandatory and must be placed in conspicuous workplace areas where they can be
easily viewed by employees. Similar posters issued to certain organizations by
the Occupational Safety and Health Administration and other state and federal
agencies also usually fall under the same mandatory rules for compliance.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">Finally,
have you reviewed or updated your employee handbook lately? I can’t stress
enough the importance of maintaining and disseminating this informational guide
to everyone in your organization, including high-level management. If you
represent a smaller organization, one that doesn’t have a formally published
handbook, your employees or co-workers should have an alternative access to
pertinent information, such as your organizational mission and values,
performance goals and objectives, use of company resources for personal use,
standards of conduct and behavior, and disciplinary and termination policies. A
well-designed handbook that is regularly updated for employee orientation,
retention, and development and training serves as a valuable tool in lowering
the risk of company liability in the event of an employee lawsuit.</span></div>
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<br /></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-82000891664984331512012-08-20T08:50:00.000-07:002012-08-20T08:50:11.591-07:00Mediation: A Simple, Effective Approach for Resolving Complex Issues
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<a href="http://www.blogger.com/blogger.g?blogID=48263797880670481" name="_GoBack"></a><span style="font-family: "Times New Roman";"></span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGEkUhbeSFGWI6JEsADNyQ5moOUuk-MSnIlCAmMQ799kRaAkG1jaA_CXMaGs9TbOdIcYhd5pLRYvjXSE0YDfScp5RxQUzohkOAWBZqu8-KTWG3tgIXeU2hrTSEOzBkp-ehTXBPTGgSQXI/s1600/talbot_benefits+of+mediation.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="149" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGEkUhbeSFGWI6JEsADNyQ5moOUuk-MSnIlCAmMQ799kRaAkG1jaA_CXMaGs9TbOdIcYhd5pLRYvjXSE0YDfScp5RxQUzohkOAWBZqu8-KTWG3tgIXeU2hrTSEOzBkp-ehTXBPTGgSQXI/s200/talbot_benefits+of+mediation.jpg" width="200" /></a></div>
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No doubt, many of you have watched a few evening
television dramas depicting the mediation process. Scurrying from one
conference room to another numerous times, sometimes carrying sandwiches and
beverages, the mediator attempts to settle the differences between disputing
parties to stave off an impending courtroom battle. </div>
<span style="font-family: "Times New Roman"; letter-spacing: -.1pt;"></span>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman"; letter-spacing: -.1pt;">Believe it or not, except for a few embellishments, the
television portrayals of mediation are fairly accurate — or at least more
believable than the courtroom antics often aired</span><span style="font-family: "Times New Roman";">. There is, of course, more detail to the mediation process
than what I just described, but the salient point is that mediation can be a
valuable tool in settling legal claims before they escalate to the trial level.
In fact, in states where mediation is regularly deployed, there has been a 95
percent success rate of resolving conflicts prior to litigation, making it one
of the more popular forms of alternate dispute resolution.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman"; letter-spacing: -.1pt;">Aside from being a positive, upbeat approach for settling
legal claims through discussion, negotiation and compromise, the mediation
process is quite expedient and cost-effective as compared to lengthy and
expensive courtroom litigation. Consequently, to help streamline the legal
process, many jurisdictions across the United States are requiring that
all disputed claims defer to mediation first before considering any litigious
action in a courtroom. In all of the contracts I draft for business or
transactional clients, I build in a provision requiring neutral third-party
mediation as a preventative measure to avoid litigation</span><span style="font-family: "Times New Roman";">.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">Neutral
mediators can be retained from several sources. For instance, local attorneys
who have quality reputations as problem solvers are always a good choice. I
often use the mediation services of <a href="http://soellinglaw.com/resume.htm">Christopher
Soelling</a>, a well-respected Seattle lawyer. Retired judges, local or
statewide, that are trained and experienced in dispute resolution are other
prime sources for neutral mediators. There are also professional mediation
services available statewide or regionally, or you can contact the American Arbitration
Association regarding their professional mediators who serve nationwide.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">In all mediations, preliminary documentation is required of all
parties to a dispute, including an exchange of position papers or mediation
briefs. Generally, two separate sets of mediation briefs are distributed, one
for the parties undergoing mediation and the other specially earmarked for the
mediator. And a<span style="letter-spacing: -.1pt;">s you would expect, there are
basic ground rules for conducting mediation.</span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman"; letter-spacing: -.1pt;">Ethicsl rules prevent the sharing of confidential
information between disputing parties by the mediator. However, with
permission, a mediator may share information to encourage settlement. Also,
joint sessions of the disputing parties are permitted, but most attorneys
involved in mediation waive that right, preferring the process to be conducted
in separate rooms with the mediator acting as the “go-between” in negotiations.
It is important to note, too, that a mediator does not decide the outcome of
any mediation, but acts more like a facilitator working toward solving
problems.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">Sometimes,
mediation is not successful initially, and there can be occasional roadblocks.
When dealing with construction claims cases, for example, you need to have an
insurance adjustor available on site to make decisions. The same goes for large
corporations or multi-claim disputes. You must have someone with authority present
during a mediation to sign off on any conditions for settlement.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">Eventually,
though, perhaps after several attempts, mediation will usually result in a
successful compromise between disputing parties. And in some states, like Washington, once a
settlement is reached and general terms are accepted, <span style="color: black;">the
provisions of a mediation agreement can be legally binding and enforceable when
a prepared document is signed jointly by all parties of the mediation.</span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-36294753987320189152012-07-16T13:27:00.003-07:002012-07-16T13:28:07.420-07:00The Value of Mediation: Your Opportunity to Control the Outcome of a Dispute<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
</div>
<div class="separator" style="clear: both; text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicmiXhDmsYKb9GqL8pSaTbpnlTzbCpKLK6NCvNupnLjKtCq217AMCu9o9hRmTgN3JWOFpzFWibXAkfwVQDZYTSFMTePgBXdUmal6l1XP94bXtEgnA41PPpSqvW7QOtYQSeoBaS_ME-AOc/s1600/Talbot_mediation.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicmiXhDmsYKb9GqL8pSaTbpnlTzbCpKLK6NCvNupnLjKtCq217AMCu9o9hRmTgN3JWOFpzFWibXAkfwVQDZYTSFMTePgBXdUmal6l1XP94bXtEgnA41PPpSqvW7QOtYQSeoBaS_ME-AOc/s200/Talbot_mediation.jpg" width="200" /></a></div>
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<a href="http://www.blogger.com/blogger.g?blogID=48263797880670481" name="_GoBack"></a><span style="font-family: "Times New Roman";"></span><span style="font-family: "Times New Roman";"></span><span style="font-family: "Times New Roman"; letter-spacing: -0.1pt;">What if you had a crystal ball that
could predict the outcome of your pending litigation in court or even a
proposed legal action? Would you do things differently? Oh, don’t you wish! The
stark reality is that once you go to trial, the resolution of a dispute is out
of your hands. You are essentially waiving your control of any legal settlement
to an unfamiliar third party, whether it is a judge, a judicial panel or a
jury. You do, however, have an alternative to this litigious situation:
mediation. The process involves the selection of a neutral third-party that
attempts to resolve a legal dispute through discussion, negotiation and,
hopefully, a mutually acceptable compromise</span><span style="font-family: "Times New Roman";">.</span>
</div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">Yes,
I did say “compromise,” but that is actually a good thing. All parties in a
dispute need to regard compromise as a means for resolution, not confrontation
or disappointment. It is the last point in litigation in which you still have
control of your decisions before someone else steps in and takes over
completely. At that point, all disputing parties must face the truly unknown
consequences of a trial procedure. Unfortunately, in a courtroom you don’t <span style="color: black;">know what’s going through a judge’s mind or through the
minds of jury members. In fact, the expected outcome of a judge’s determination
or a jury’s deliberation can sometimes be quite the opposite. But when you are
arguing the merits of your case or defending your position during the mediation
process, you have a prime opportunity to influence the outcome with your
decisions — and your compromises.</span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Times New Roman";">In
the state of Washington,
<span style="color: black;">whether in a federal or state court, all disputed
claims or actions must defer to mediation first before a judge will even allow
a case to go to trial. This is a systematic approach I strongly support. I
often find that clients, even if they are sophisticated business clients, don’t
always understand what mediation is or its benefits. So in all of of the contracts
that I draft for my business or transactional clients, I insert a mediation
provision requiring all parties in a dispute to engage in mediation before they
can even file suit in state or federal court. I rarely receive an objection to
this provision, because all clients at least ponder the idea of settling a case
before entering litigation. A neutral third-party can provide a fresh
perspective on the merits of your case and your defense, as well as the
weaknesses of your case and your defense.</span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">Occasionally a client may have a corporate policy barring the use
of mediation, but overall, I have found the process to be a valued alternative
to lengthy litigation in court, and mediation can be applied to virtually all
types of legal disputes — large and small. Of course, mediation is not always
successful the first time out of the gate. I have encountered this often in
multi-party construction claims cases, in which the initial mediation doesn’t
solve the issue, and nobody wants to settle. However, as the trial deadline
approaches, everybody realizes that this opportunity to determine and control
an equitable outcome is fast-disappearing, so they call back the mediator in an
attempt to reach a settlement. That scenario, unfortunately, is becoming more
and more common. Perhaps people think they can gain bargaining power as a case
proceeds, but more often than not, their bargaining power actually dwindles as
the trial date gets closer. Inevitably, most will go back to the mediator.<span style="background: none repeat scroll 0% 0% yellow;"></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">Mediation agreements are not without recourse either, should a
stakeholder default on the terms of the settlement. In Washington, for instance, the provisions of
a mediation agreement can be legally binding and enforceable when a prepared
document is signed jointly by all parties to the dispute. If someone later
decides to back out on the settlement, the other parties can proceed to court
and have the mediation agreement enforced as a matter of law. That action in
itself shows a judicial preference and favor for mediated dispute resolution
over a court trial bureaucracy.</span><span style="font-family: "Times New Roman";"></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-60442487725486487582012-06-15T10:56:00.000-07:002012-07-12T10:59:18.355-07:00You Don't Need Big Box Firms for Big-Time Representation<div style="text-align: justify;">
</div>
<div class="MsoNormal" style="text-align: justify;">
</div>
<div style="text-align: justify;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj87bthreDx-rf8wdkMV9pVQl2uvS-l0h_XAWbeXc6YCxOoaV3qcKFrG-4QAwmOmdeIbL2B_oxr6MZL4wUqtV65HWoNTC27p3mRuzKVM7A7AHPNz05ln4ssNpd7kp3Uw8QHNgFVRLDepQQ/s1600/talbot_solopractitioner.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="150" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj87bthreDx-rf8wdkMV9pVQl2uvS-l0h_XAWbeXc6YCxOoaV3qcKFrG-4QAwmOmdeIbL2B_oxr6MZL4wUqtV65HWoNTC27p3mRuzKVM7A7AHPNz05ln4ssNpd7kp3Uw8QHNgFVRLDepQQ/s200/talbot_solopractitioner.jpg" width="140" /></a><span style="color: black; font-family: "Times New Roman";">The </span><a href="http://www.washbio.org/">Washington
Biotechnology & Biomedical Association</a> (WBBA) <span style="color: black; font-family: "Times New Roman";">is a trade group for life sciences in Washington. As a <a href="http://seattlebusinesslawyer.blogspot.com/2012/02/life-sciences-in-lieu-of-chocolate.html">Life
Sciences attorney</a>, I often attend their trade events and meet people who
are involved with pharmaceutical studies and various bio-technology projects. They
are usually represented by one of the large firms here in Seattle.</span>
</div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; font-family: "Times New Roman";">The people I meet in the life sciences industry complain to me about
the cost of their legal fees; they make a phone call to their attorney, and
they're charged $400 an hour. I'm not really sure why or how these big firms have
a monopoly on the life sciences, but it seems as if there is</span> a
perception out there that big law firms are better-equipped to handle cases.
They are bigger, after all, and better-staffed. Their fees are hefty – but
surely you get what you pay for. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
This is an unfortunate
misconception – one that costs a lot of money. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
Many attorneys who now work as solo
practitioners or for small firms trained at a major law firm. It is indeed
possible to attain high-quality legal representation at a big firm. But is a
big firm the only place you can find this level of competent
representation? If you choose to go a
different route, will you be sacrificing quality? The answer is unequivocally “no”
– and it's important to understand this, particularly if you don't have a
corporation paying your legal fees. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
The fact of the matter is that
big firms are expensive – and they simply don't have to be. Their high costs
are often a result of inefficiency and a certain approach to billing practices.
In litigation, for example, the big firms tend to <span style="background: none repeat scroll 0% 0% white; color: black;">issue the absolute maximum number of interrogatories and
requests for production and admission. The goal is to bring in as much
information as possible, but retrieving and assimilating all that information
takes time and costs money, which is then billed to clients. Perhaps this isn't
a pressing issue when the client is Google or Microsoft, but what about
individuals paying their own legal fees?</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="background: none repeat scroll 0% 0% white; color: black;"><br />
Whether it's a contract or a litigation dispute, the most cost-effective
approach is to try to narrow down what's actually relevant and draft language
that reflects what needs to be said in clear language, omitting the
superfluous. For those of us in solo practices, part of the reasoning for this
approach is practical: we are busy, and we don't have the time or the staff to
do unnecessary work. </span>Many solo
practitioners and small firms are staffed with attorneys who trained at large
firms and provide excellent services at reasonable prices. <span style="background: none repeat scroll 0% 0% white; color: black;"></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="background: none repeat scroll 0% 0% white; color: black;">For me, however, working as a solo practitioner also plays
into my belief about the way I want to practice law. I don't believe in billing
time just to bill time. It is my objective to do exactly what my clients want
me to do – no more and obviously no less. </span>I don't take action unless my
client has approved it. When my clients receive my bill, they fully understand exactly
what it is they're paying for. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="background: none repeat scroll 0% 0% white; text-align: justify;">
Essentially, I
believe in making things as clear as possible for my clients in the area of
contracts and other transactions, using clear, understandable<span style="background: none repeat scroll 0% 0% white; color: black;"> language. It is inappropriate, in my
mind, to use 30 pages of complicated and archaic legal-speak to say what could
be said simply and clearly in three pages. This is my approach in all matters.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
Legal representation <i>can</i>
be efficient, excellent and economical. It i<i>s</i> possible to have all
three. A smaller firm or a solo attorney can provide clients with the same
level of service they would receive at a larger firm, and making this choice can
bring the added bonus of a considerably smaller price tag. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
If you are looking for an
attorney, I recommend you contact your local bar association. Most Bar Associations,
including the <a href="http://www.kcba.org/">King County Bar Association</a> and
the <a href="http://www.wsba.org/Legal-Community/County-Bar-Associations#Snohomish">Snohomish
County Bar Association</a>, have lawyer referral services. </div>
<div class="MsoNormal" style="text-align: justify;">
<span style="background: none repeat scroll 0% 0% white; color: black;"><br style="mso-special-character: line-break;" />
<br style="mso-special-character: line-break;" />
</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-41455221969965270842012-05-25T04:53:00.001-07:002012-05-25T04:53:22.294-07:00Fault-Finding to Success<!--[if !mso]>
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<br />
<div class="MsoNormal" style="text-align: justify;">
<a href="" name="_GoBack"></a></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuXccvrtUJpQSaKUf5-ttrfbz5mgnNuwFB3nsyCXgo5wLNAagdYezS1WITcCcGnTFSZkLFwOBEM9mIpH-5Kqjhm_kcCuP1fnCA_5eqXvOvB1I8yne0V34uYx5_44tYMwglYbG7RzhFC00/s1600/fault.gif" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="197" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuXccvrtUJpQSaKUf5-ttrfbz5mgnNuwFB3nsyCXgo5wLNAagdYezS1WITcCcGnTFSZkLFwOBEM9mIpH-5Kqjhm_kcCuP1fnCA_5eqXvOvB1I8yne0V34uYx5_44tYMwglYbG7RzhFC00/s200/fault.gif" width="200" /></a></div>
<div class="MsoNormal" style="text-align: justify;">
Consumers are always
seeking a quality product – no matter what industry the product is intended
for. However, the complexities of most products today bring about an inherent
problem: one industry does not necessarily control production up and down the
chain. Thus, it is generally difficult to ensure quality control beyond one’s
own company. This lack of control could be unnerving, if not for an unexpected,
guiding principle: fault.
</div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
This principle of accountability
holds true within the realm of <a href="http://seattlebusinesslawyer.blogspot.com/2012/04/deeper-into-licensing-abyss.html">Clinical
Research Organizations</a> (CROs). Liability drives companies to create better
products, and fault is an ever-present motivator. In the case of CROs, these
organizations find themselves in a delicate position of having to be cautious
about whom they are dealing with in both upward and downward directions:
medical sites, clinical research assistants, sponsors and subcontractors. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
Every step of the way, your
contracts must stipulate that the quality of work is guaranteed, and allocating fault
and responsibility is a key element to that.<span style="mso-spacerun: yes;">
</span>No matter who is involved in the process, though, there must be assurance
that quality is assured, starting at the top and running straight to the
bottom.<span style="mso-spacerun: yes;"> </span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
My yard, like many yards, is
inhabited by a number of squirrels who assume they belong on my property. My
dog will bark, informing them that this is, in fact, not their yard. While an
audible yap is not necessarily a powerful deterrent to the squirrels and their
trespasses, the constant threat and physical presence of the dog keeps them on
their toes. People in contracting relationships can think of the dog’s bark as
“fault.” While the persistent threat looms, there is always the possibility of
greater danger – such as a loose dog that can chase you. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
The liability associated with a
bad drug reaction – or even worse, introducing a dangerous or deadly drug to
market – is huge. To prevent this from happening, CROs must have clearly
defined guidelines and expectations for all the organizations and individuals
involved. This runs deeper than being a blueprint for the “blame game.” This
means establishing a method to ensure data integrity, which, in the realm of
CROs, ultimately translates to public safety and health. CROs are not just
trying to indemnify themselves, but they are making sure that every step along
the way preserves the highest quality work. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
The world of life science is a
challenging and competitive ecosystem of tests and trials. Fortunately, there
are some governing principles that help ensure the safety of those within it.
For CROs, they can feel assured that the threat of fault will ensure that the
best product possible can come from the system, and the greatest good can be
done so that the consumer can have the maximum benefit. </div>
<div class="MsoNormal">
<br /></div>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com1tag:blogger.com,1999:blog-48263797880670481.post-34557077539171357432012-04-23T05:21:00.002-07:002012-04-23T05:22:36.386-07:00Deeper Into the Licensing Abyss<div class="MsoNormal" style="text-align: justify;">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgySIZ7_e-kOGj_Uxqv8NDUTi4cWXibfJ0gL5X11SM2QHK2ncNTfT8ck88lcTb1hL6kAD3IHMjtfsoPMFFsY3Bxtb4anTUnMIZRPcxh21qdjTPyedoj29W3ySMLrTiSWgiwNe0fXj4-WIA/s1600/Talbot+Licensing+Agreements.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgySIZ7_e-kOGj_Uxqv8NDUTi4cWXibfJ0gL5X11SM2QHK2ncNTfT8ck88lcTb1hL6kAD3IHMjtfsoPMFFsY3Bxtb4anTUnMIZRPcxh21qdjTPyedoj29W3ySMLrTiSWgiwNe0fXj4-WIA/s200/Talbot+Licensing+Agreements.jpg" width="200" /></a></div>
In an earlier <a href="http://seattlebusinesslawyer.blogspot.com/2012/01/small-business-pitfalls-why-attorneys.html">post</a> I touched upon the importance of proper contracting language, but I barely
poked the surface. Today I thought I’d delve a little deeper so you can better
understand some of the ways licensing agreements can affect a business.In life sciences, one area where
attorneys can be particularly useful is helping Clinical Research Organizations
(CROs) with licensing agreements.<br />
<br />
A CRO, for those unfamiliar, is sort of a
middle man. It contracts <b style="mso-bidi-font-weight: normal;">up</b> with a
sponsor, a company producing a new drug or device or what have you, and then
contracts <b style="mso-bidi-font-weight: normal;">down</b> with subcontractors
to use and test the new technology. Subcontractors include clinics and clinical
research assistants, who go to medical sites where the new drug or device is
being used and make sure data are properly maintained.</div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
Licensing agreements are made
between the sponsor and its subcontractors — sometimes passing through the CRO
as well — granting them the right to use the new technology for testing
purposes, but without conveying any ownership interest in it. </div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
For example, right now <span style="color: black; line-height: 115%;">I’m dealing with
a company that came up with technology that uses genetics to measure the rate
at which an individual metabolizes a drug. To test its device, the company will
grant a license to a clinic to use it, but the license won’t transfer any
patent rights, or any intellectual property rights.<b style="mso-bidi-font-weight: normal;"> </b></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; line-height: 115%;">Where I also get involved with a CRO is
when a sponsor sometimes tries to include some type of licensing fee, which, in
my opinion, is inappropriate in the context of a licensing agreement for
testing drugs or equipment. Think about it: CROs aren’t making a profit from
the use of a new technology, they’re simply testing it. If they're being paid
to test a device, why should they also have to pay a licensing fee while seeing
if it works? </span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; line-height: 115%;">Attorneys can also make a big difference
by ensuring that the contract language of a licensing agreement is consistent
between biotech companies, CROs, vendors, clinics and clinical research
assistants. In other words, if there is a licensing agreement between a CRO and
sponsor company, the subcontractors need to be similarly bound to the terms of
that licensing agreement. Otherwise, there could be situations where
subcontractors are using a particular device or software and think they have
ownership interest in it, maybe even modifying it and putting their name on it.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
For instance, a client of mine
was running a licensed <span style="color: black; line-height: 115%;">biostatistical software program to process data on the efficacy of
a particular experimental drug. The client hired a subcontractor, but didn't
tell him about its licensing agreement. He started tweaking the software and
wanted to use it for other clients. This
was not a good situation: the client did
not have a work for hire provision in its subcontractor agreement, so
technically the subcontractor had ownership, but that ownership was adverse to
the licensing agreement with the sponsor.
</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="color: black; line-height: 115%;">Fortunately, I was able to negotiate a
resolution to the competing claims of ownership, and draft licensing language
for my client to avoid this situation in the future. If you deal with licensing agreements in your
particular line of work, make sure to get legal advice.</span></div>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com1tag:blogger.com,1999:blog-48263797880670481.post-33921996473050542192012-03-28T06:46:00.006-07:002012-03-28T06:56:59.061-07:00The Importance of Insurance<div style="text-align: justify;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgi6gt7OYVC2VJtGW9YnqVxY9xo4kpTdFnLDwKcb_ctBdfYliQL9MQRB2GyLXHSYK5GBjf6exdXbKyZu153s_ZoPDra5zNFcQYs-8B5bazd46DGdllPWTfWuMAVHTtT8uvQettQvw75aUc/s1600/insurance.gif"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 153px; height: 115px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgi6gt7OYVC2VJtGW9YnqVxY9xo4kpTdFnLDwKcb_ctBdfYliQL9MQRB2GyLXHSYK5GBjf6exdXbKyZu153s_ZoPDra5zNFcQYs-8B5bazd46DGdllPWTfWuMAVHTtT8uvQettQvw75aUc/s200/insurance.gif" alt="" id="BLOGGER_PHOTO_ID_5724944452127895154" border="0" /></a><p>When people hear the term “insurance,” they automatically assume that it is some form of coverage broadly defined in general terms. What many do not realize is that insurance is so much more than simple coverage for accidents and other unforeseen events, and being properly insured is an important aspect of doing business.</p><p>Insurance should perform a very crucial function: to protect a person or business entering into a transaction. One cannot always shift risk and responsibility to another party in the transaction.</p><p>The type and amount of insurance necessary is critical. Those who may have insurance may not be covered for what is actually needed, and those who have the proper type may not have enough to cover the potential damages one is exposed to in a business transaction. The specifics are dangerous traps, and many do not read between the lines where they should.</p> <p>For instance, I have a Clinical Research client I formed in 2008. Clinical Research Organizations (CROs) assist in the testing of experimental drugs from conception through FDA approval.Once the company was up and running, they spoke with a broker who obtained an insurance policy.Six months later, they asked me to evaluate whether they were property covered for their particular line of work. </p><p>They were not.</p><p>The broker had simply procured them a medical malpractice policy, even though a CRO does not practice medicine. There was a specific exclusion in the policy precluding testing for administration of drug trials, which is exactly what a CRO does.</p>For six months they were operating with no insurance protection. I was able to put the client in touch with a qualified broker and obtain a full refund of the premium they had paid for the useless coverage. Legal advice regarding the adequacy of insurance is critical.<p>I have another client who contracted with a tile contractor who worked on condominiums for six full years before realizing that the insurance company had included a condominium exclusion that the contractor was unaware of. Unfortunately, the exclusion was discovered too late and my client and the tile subcontractor incurred substantial unanticipated costs due to the exclusion. Although the condominium exclusion was never blatantly stated, it was clearly within the policy and no coverage was provided.</p>The bottom line is, if you want protection during your transactions, you need to have the right insurance. And to get the right insurance, legal advice regarding the adequacy and sufficiency of insurance is critical.</div>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com1tag:blogger.com,1999:blog-48263797880670481.post-80602340660198840172012-02-23T05:00:00.001-08:002012-03-02T02:47:15.773-08:00Life Sciences, in Lieu of Chocolate<div style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span style="font-size:100%;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiikvpdlhJBJIs8s1Wqh4pHv2u-DZ3tPzcHadfWh1eJb7gvUmLylm12K1hw9TemkKp6hJCQC0QCCkMZ0W7W7EdCB4519MA_CSzM9mQQu1Y5mnr74wSOd15l9uzMW-KDrKk3AutwM2p9lYM/s1600/life+sciences.gif"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 134px; height: 200px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiikvpdlhJBJIs8s1Wqh4pHv2u-DZ3tPzcHadfWh1eJb7gvUmLylm12K1hw9TemkKp6hJCQC0QCCkMZ0W7W7EdCB4519MA_CSzM9mQQu1Y5mnr74wSOd15l9uzMW-KDrKk3AutwM2p9lYM/s200/life+sciences.gif" alt="" id="BLOGGER_PHOTO_ID_5710191870806329234" border="0" /></a></span><span style="line-height:115%;Times New Roman"; mso-fareast-Times New Roman";font-family:";font-size:100%;" ><span style="font-family:georgia;">Science and technology fascinate me. Perhaps this isn’t the first sentiment you imagine hearing from an attorney, but it occurs to me daily. My enthusiasm for the life sciences industry and the intelligent people who make up its moving parts is one reason why I look forward to coming to work every day.<br /><br />I was tempted to surprise the whole industry with a box of chocolates, but for today I’ll simply share a few pieces of what I value most. </span></span></div> <p style="text-align: justify; font-family: georgia; color: rgb(0, 0, 0);font-family:georgia;" class="MsoNormal"><span style="line-height:115%;Times New Roman";mso-fareast-Times New Roman";font-size:100%;" >I entered life sciences law with a strong desire to help companies start from scratch. As I mention on the <a href="http://www.jwtalbotlaw.com/lifescienceslaw.html">website</a>, my first client in this field was a Clinical Research Organization (CRO). The four individuals behind it have backgrounds in different areas of the field: pediatric oncology, managing FDA compliance issues and pharmacy. These clients fill the room with brain power, but as good as they are at what they do, they’re not attorneys. Companies in this industry have so many moving parts; they need </span><span style="line-height:115%;Times New Roman";mso-fareast-Times New Roman"font-size:100%;" >someone on their side who understands contracts and licensing. For example, they need an operating agreement to explain how the business will run and how decisions will be made. This particular company has taken off in leaps and bounds in the four years since we started working together.</span></p> <p style="text-align: justify; font-family: georgia; color: rgb(0, 0, 0); font-weight: bold;font-family:georgia;" class="MsoNormal"><span style="line-height:115%;Times New Roman";mso-fareast-Times New Roman";font-size:100%;" >Always Changing</span></p> <p style="text-align: justify; font-family: georgia; color: rgb(0, 0, 0);font-family:georgia;" class="MsoNormal"><span style="line-height:115%;Times New Roman";mso-fareast-Times New Roman";font-size:100%;" >Due to fluctuations in venture capital and government funding, life sciences is a continuously changing environment. As soon as someone gets funding, everyone in the industry knows who they are and wants to start a new business with them or buy their existing operation. This is why new companies should involve an attorney from day one. Clients come to me knowing as much about indemnity, choice of entity and portion of liability as I know about biostatistics. This doesn’t prevent me from handling their agreements and licensing. We teach each other, </span><span style="line-height:115%;Times New Roman"; mso-fareast-Times New Roman"font-size:100%;" >and it’s in those learning experiences that I find my job so much fun!</span></p> <p style="text-align: justify; font-family: georgia; color: rgb(0, 0, 0); font-weight: bold;font-family:georgia;" class="MsoNormal"><span style="line-height:115%;Times New Roman";mso-fareast-Times New Roman";font-size:100%;" >Always Innovating</span></p> <p style="text-align: justify; font-family: georgia; color: rgb(0, 0, 0);font-family:georgia;" class="MsoNormal"><span style="line-height:115%;Times New Roman";mso-fareast-Times New Roman";font-size:100%;" >The intellectual abilities of my clients keep me on my toes. Every innovation brings a new set of issues to address on the legal side. I’m good at dealing with these issues. When you have smart people from varied backgrounds coming together and creating something new that’s financially viable, it’s an exciting thing to be a part of. These companies have a bright future not only in Seattle and San Francisco, but nationwide. </span></p> <p style="text-align: justify; font-family: georgia; color: rgb(0, 0, 0); font-weight: bold;font-family:georgia;" class="MsoNormal"><span style="line-height:115%;Times New Roman";mso-fareast-Times New Roman";font-size:100%;" >Always Building</span></p> <p style="text-align: justify; font-family: georgia; color: rgb(0, 0, 0);font-family:georgia;" class="MsoNormal"><span style="line-height:115%;Times New Roman";mso-fareast-Times New Roman";font-size:100%;" >The ultimate reward of working with life sciences companies from the very beginning is watching their rapid growth. Legally secure, my clients have a strong foundation to build on. The potential is huge because nothing can come up and bite them from behind. As their business grows, my business grows. Once the legal corners are squared, my role is to make sure the company is moving in the right direction. </span></p> <p style="text-align: justify; font-family: georgia; color: rgb(0, 0, 0);font-family:georgia;" class="MsoNormal"><span style="line-height:115%;Times New Roman";mso-fareast-Times New Roman";font-size:100%;" >The life sciences draw all kinds of curious people. Working with sponsors and vendors, or negotiating biotechnology agreements and software licenses allows me to hear about advancements directly from the source. In an industry that’s always changing, innovating and building, I get to learn something new about the world every day.</span></p>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-71247535396959376092012-01-23T13:21:00.002-08:002012-03-02T02:48:38.854-08:00Small Business Pitfalls: Why Attorneys Make Cents – Part II<span style="font-style: italic; color: rgb(0, 0, 0);" class="apple-style-span"><span style="background:white;font-family:Georgia;" >In my <a href="http://seattlebusinesslawyer.blogspot.com/2011/12/small-business-pitfalls-why-attorneys.html">last post</a>, I began making the case for retaining a qualified attorney to help you start and grow your business. You know by now the complexities of business law but may be still stuck on price and value. To you, I offer some of the insights I’ve gained that illustrate why it’s cheaper in the long run to have an attorney on your side.</span></span> <p class="MsoNormal" style="text-align: justify; color: rgb(0, 0, 0);"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style=" background:white;font-family:Georgia;" >Counting the Costs</span></b></span></p> <p class="MsoNormal" style="text-align: justify; color: rgb(0, 0, 0);"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJd_IZD9aA6cBz4EcO-lZ4NV053drw6X1r-JBj2mcgZj9AI2t5FuuEEqQXt8XLfcLrijdsdy4qnsI31eKYNEv-XMvek2JbSzNHpTbz69OgizcBclPQaKHsIrnrZEPAVFTPjRnoZGb1oWg/s1600/Talbot.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 200px; height: 133px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjJd_IZD9aA6cBz4EcO-lZ4NV053drw6X1r-JBj2mcgZj9AI2t5FuuEEqQXt8XLfcLrijdsdy4qnsI31eKYNEv-XMvek2JbSzNHpTbz69OgizcBclPQaKHsIrnrZEPAVFTPjRnoZGb1oWg/s200/Talbot.jpg" alt="" id="BLOGGER_PHOTO_ID_5700941339356349458" border="0" /></a><span class="apple-style-span"><span style="background:white;font-family:Georgia;" >The hazards of starting and running a successful small business are many. And frankly, they are all really expensive. Startup clients often call me midway through their attempt to start an LLC. They’ve done something wrong and they’re stuck. More often than not, charting the right course from the outset is a lot cheaper than untangling a mess. I also get questions down the line from established small business owners who’ve yet to understand when they are signing a document, they can be representing both themselves and the company — setting both up for liability.<span style="mso-spacerun:yes"> </span></span></span></p> <p class="MsoNormal" style="text-align: justify; color: rgb(0, 0, 0);"><span class="apple-style-span"><span style="background:white;font-family:Georgia;" >Another source of panic calls I get is from people who’ve set up with the wrong structure, are in trouble and need help keeping their personal assets separate from company assets.<span style="mso-spacerun:yes"> </span>I also counsel clients on choosing the proper insurance. </span></span></p> <p class="Interviewer" style="text-align: justify; color: rgb(0, 0, 0);"><span class="apple-style-span"><span style="background:white;font-family:Georgia;" >Furthermore, licensing requirements are another source of pain for new businesses caught unawares in legal dramas. For example, if </span></span>a contractor goes into business as a landscaper and doesn’t have a contractor’s license, he can’t sue if he doesn’t get paid. I don’t think a lot of people know that. You may think you can just open a business and start working.<span style="mso-spacerun:yes"> </span>But a contractor, for instance, has to have a bond to be licensed with the state of Washington for a minimum amount of $6,000.00 or $12,000.00, depending on the type of business.<span style="mso-spacerun:yes"> </span></p> <p class="MsoNormal" style="text-align: justify; color: rgb(0, 0, 0);"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style=" background:white;font-family:Georgia;" >Been There, Still There</span></b></span></p> <p class="MsoNormal" style="text-align: justify; color: rgb(0, 0, 0);"><span class="apple-style-span"><span style="background:white;font-family:Georgia;" >One of the biggest benefits of developing a long-term relationship with an attorney is that he or she will know your company well whenever a problem arises. Waiting to call an attorney when you’re in trouble or being sued virtually ensures you’ll pay more because the lawyer will clock more hours getting up to speed. Moreover, I especially enjoy the continuity of advising on startup through to contract negotiations and as businesses grow, handling mergers and acquisitions.</span></span></p> <p class="MsoNormal" style="text-align: justify; color: rgb(0, 0, 0);"><span class="apple-style-span"><span style="background:white;font-family:Georgia;" >If you’re going to spend the enormous amount of time required to start and build a business, and stake your future on it, you should make sure your legal foundation is solid. The myriad laws surrounding taxes, licensing, permits, new regulations, intellectual property, franchising, advertising, hiring non-citizens, contracts, operating online, environmental codes, workplace safety, acquiring and selling real estate and others are just plain confusing. The best way to ensure you start on the right foot is to sit down with a qualified attorney who explains everything in plain English and goes through the pros and cons of each issue so that you can make the best decisions possible.</span></span></p>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-52392993475030296512011-12-21T09:31:00.004-08:002012-03-02T02:45:55.866-08:00Small Business Pitfalls: Why Attorneys Make Cents<p class="Interviewer" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span style="font-size:100%;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNt5myVpS-Y26zjOjXYwtpkaSLJSrLDP_itwS_SktLYh4ZHFYSAzIi0teK-RjC7kaGXLWfYPvTE5GSMW7HXQn7UMljG857RSBVut-fEj0z9mxIRncRu2c4XnO272bzXK04ddzIB6-PG9A/s1600/bus.gif"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 154px; height: 116px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNt5myVpS-Y26zjOjXYwtpkaSLJSrLDP_itwS_SktLYh4ZHFYSAzIi0teK-RjC7kaGXLWfYPvTE5GSMW7HXQn7UMljG857RSBVut-fEj0z9mxIRncRu2c4XnO272bzXK04ddzIB6-PG9A/s200/bus.gif" alt="" id="BLOGGER_PHOTO_ID_5688636250414697250" border="0" /></a></span><span class="apple-style-span" style="font-size:100%;"><span style="background: none repeat scroll 0% 0% white;">Most small business owners hesitate enlisting the help of an attorney until they’re </span></span><span class="apple-style-span" style="font-size:100%;"><span style="background: none repeat scroll 0% 0% white;">forced to. It may be a cost perception, or it may feel like an indulgence your growing company can’t afford. There are a number of reasons, however, why having an experienced business law attorney at your side makes not just sense, but cents.<br /></span></span></p><p class="Interviewer" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span class="apple-style-span" style="font-size:100%;"><span style=" background:white;">Here’s the first of a two-part series offering a number of reasons it makes the most sense to have an attorney right from the start.</span></span></p> <p class="MsoNormal" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span class="apple-style-span" style="font-size:100%;"><b style="mso-bidi-font-weight:normal"><span style="background:white;">Avoiding Unnecessary Complications</span></b></span></p> <p class="Interviewer" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span class="apple-style-span" style="font-size:100%;"><span style=" background:white;">From the moment you decide to start a business, you begin reaching out to experts in a variety of areas to help you make sure you start out properly. Hiring the right attorney is likewise a sound investment in the future of your business. Working with new business owners is perhaps one of the most enjoyable aspects of my practice, because I can help you bring great ideas and exceptional talents to a waiting market while avoiding the snares and legal pitfalls that await you as you navigate the minefields of running a profitable operation.</span></span></p> <p class="MsoNormal" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span class="apple-style-span" style="font-size:100%;"><b style="mso-bidi-font-weight:normal"><span style="background:white;">Right Business Structure</span></b></span></p> <p class="Interviewer" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span class="apple-style-span" style="font-size:100%;"><span style=" background:white;">My first step in helping a new business is to consult with you and discuss the different options available. Choosing what </span></span><span style="font-size:100%;"><a href="http://seattlebusinesslawyer.blogspot.com/2011/11/your-legal-entity-is-life-jacket-of.html"><span class="apple-style-span"><span style="mso-bidi- text-decoration:none;text-underline:none">type of entity</span></span></a></span><span class="apple-style-span" style="font-size:100%;"><span style=" background:white;">: corporation, limited liability company, or general partnership, is a crucial step. While most new business owners operate from the assumption that they may have to form a corporation, I work with my clients to understand the many reasons why an LLC can be a much sleeker way to do business for many, avoiding the annual reporting requirements while still getting many of the tax advantages of an S corp. </span></span></p> <p class="MsoNormal" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span class="apple-style-span" style="font-size:100%;"><b style="mso-bidi-font-weight:normal"><span style="background:white;">Filing Requirements and Contract Negotiations</span></b></span></p> <p class="Interviewer" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span class="apple-style-span" style="font-size:100%;"><span style=" background:white;">When starting a new business, it’s absolutely crucial to understand the paperwork required - requirements not only from the IRS but at the state and local level too that you might not even be aware of.</span></span></p> <p class="Interviewer" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span class="apple-style-span" style="font-size:100%;"><span style=" background:white;">I really appreciate when clients come to me asking for guidance about employment issues and </span></span><span style="font-size:100%;"><a href="http://seattlebusinesslawyer.blogspot.com/2011/11/business-attorneys-are-form-of.html"><span style="background:white;">contracts</span></a></span><span class="apple-style-span" style="font-size:100%;"><span style=" background:white;">. Constantly changing laws have made the employer–employee relationship more complex, especially for businesses that hire independent contractors. If the contractor-employee line is crossed, it can create an IRS nightmare and an unpleasant exchange with the Washington Department of Labor and Industries. Not only will carefully considered policies and practices help your business avoid litigation, but they allow you to instill a sense of trust and leadership that will help you as you grow. When you care about your people and your partners, you must think about your legal relationships with them. </span></span></p> <p class="Interviewer" style="text-align: justify; color: rgb(0, 0, 0);font-family:georgia;"><span class="apple-style-span" style="font-size:100%;"><span style=" background:white;">Next month, I’ll share more about the cents in hiring a business attorney.</span></span><span style=" ;font-size:100%;" ></span></p>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0tag:blogger.com,1999:blog-48263797880670481.post-47436689365988486432011-11-09T09:59:00.001-08:002012-03-02T02:42:17.182-08:00Business Attorneys Are a Form of Indemnification<div style="text-align: justify;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiB-n2ZCELzGf8p8R-s_t59tHtuIFF12pKlD-DmthVenhT-xhVY7FSTb5uaHUiGfgdpk_brEM8q3G3viMNNOKaweUZzXpdztbEk0Yf8t93_KjJcqmEyznpKKaGWnV72ZIK-9_ZBjCjw7DQ/s1600/Talbot+Law.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 200px; height: 133px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiB-n2ZCELzGf8p8R-s_t59tHtuIFF12pKlD-DmthVenhT-xhVY7FSTb5uaHUiGfgdpk_brEM8q3G3viMNNOKaweUZzXpdztbEk0Yf8t93_KjJcqmEyznpKKaGWnV72ZIK-9_ZBjCjw7DQ/s200/Talbot+Law.jpg" alt="" id="BLOGGER_PHOTO_ID_5673058091418413714" border="0" /></a>How many times do you agree to a company’s terms of service or sign an agreement without actually reading what you’re signing? While you may be willing to simply click the button and agree to the terms of service to create your account with Amazon and watch that movie you’re anxious to stream, the same attitude can cost your business more than you could imagine. </div><p style="text-align: justify;" class="MsoNormal">One of the most important aspects of owning your own business is protecting yourself from damages caused by other people. An experienced business attorney can help you protect your business and assets, creating a shield through carefully constructed language. </p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="MsoNormal">Let’s say you own a hotel and you’re having a contractor come in to do some work on the lobby and the contractor’s ladder falls, taking out a chandelier and injuring a guest. The contractor would be responsible for the damages, right?</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="MsoNormal">That all depends on what kind of indemnification clause you agreed to in the contract you signed. I don't know how many times I have had clients come to me with contracts they’d signed without reading or understanding them, leaving them open to significant loss caused by the negligible hands of others.</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="MsoNormal">In the hotel example, let’s say the contractor’s contract indemnified him, his employees and his company so that any damage done by his crew was the responsibility of the hotel. A contract constructed this way basically gave the contractor a get out jail free card with the hotel. The hotel would not only be responsible for the damages but liable for any civil suit brought by the guest. Without proper indemnification, you can be liable not only for the damage caused by the contractor, but also medical bills and other provisions if anyone is injured. </p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="MsoNormal">Properly constructed contracts that provide clearly spelled out indemnification protect you and your business from other people's mistakes. I recently negotiated a very favorable contract for a company that leases trucks for film productions. The contract is worded in such a way that if anything happens to that vehicle that is not the sole fault of my client, the film company pays 100 percent of the damages.</p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="MsoNormal">Should the film company that negotiated the lease with my client have negotiated for better terms? Yes. Did they? No. I was able to get a very positive provision in my client’s contract that shields his company from risk. Indemnification and contract negotiation require the skill of an experienced attorney. <span style="mso-spacerun:yes"> </span>It's important as a business owner to make sure your rights and interests are properly represented and protected. </p><div style="text-align: justify;"> </div><p style="text-align: justify;" class="MsoNormal">The law is a complex animal, and too often people try to take on legal contracts and negotiations themselves without the help of lawyers. This leaves them open to costly mistakes and manipulation by others who have the legal knowledge. Indemnification is only one aspect of contract negotiation, but it is an important one. Think twice before creating a contract yourself (or signing one you don’t understand), because it could lead to significant costs down the line.</p>Contributorhttp://www.blogger.com/profile/04791665947954093470noreply@blogger.com0