Evers Law Group

How counterfeit goods still hurt a company’s reputation

2024-08-12T01:47:28Z

Business lawsuits sometimes revolve around the sale of counterfeit goods. If you discover that another company has been illegally selling your designs or making products that look identical to yours, it may be a violation of your intellectual property rights. For that reason, you may want to sue the other company to recoup the money that you have lost and put an end to the illegal practice. But one interesting thing to consider is how these counterfeit goods can have a major negative impact on your company’s reputation. This can harm your brand and make it less valuable than it would be otherwise. The problem is when consumers start to associate name-brand products with counterfeits, and then they are less likely to trust the name brand.

Developing a reputation

What sometimes happens is that goods will develop a reputation for frequently being fake. An example of this could be a Rolex watch. Rolex certainly makes excellent watches that have a high price point. But it’s also very common for people to make fakes that simply look the same but have a much lower quality. When a consumer who actually wants a high-caliber watch goes out to buy one, are they less likely to buy a Rolex because they’re concerned that they could get a counterfeit? Are they less likely to buy it because they know that others will assume it is a counterfeit, so it doesn’t have the same level of prestige? These issues help to demonstrate how counterfeits can harm your brand and cost you money long-term. Be sure you consider this while looking into all the legal options that you have as a business owner.

Navigating agricultural contract disputes in California

2024-07-31T12:23:58Z

Agricultural contracts can help to manage relationships and facilitate both farming operations and agricultural transactions. Understandably, when disputes arise regarding the terms or performance/non-performance of a contract, stress and potential financial losses can result. Farmers in California typically enter into various contracts when operating their businesses, including:

Sales contracts: Agreements for selling crops or livestock
Lease agreements: Terms for renting land, equipment or facilities
Service contracts: Arrangements with suppliers or service providers for inputs like seeds, fertilizers or machinery repairs

Additionally, California farmers may enter into contracts per the state’s Williamson Act Program when the land usage restrictions encouraged by this program make sense under the circumstances. Disputes can – and often do – arise regarding any of the agreements listed above.

The root causes and resolution of contract disputes

Disputes are commonly grounded in a clash of interests, expectations or circumstances of one or more parties to a contract. Common root causes of agricultural contract disputes include:

Non-payment or late payment: Buyers failing to pay or delaying payments for crops, services, etc.
Quality and quantity disagreements: Disputes over the quality or quantity of goods delivered versus what was agreed upon are also common
Breach of terms: Either party failing to adhere to agreed terms, such as delivery schedules or maintenance responsibilities can be contentious matters

Thankfully, there are often ways to resolve contract disputes amicably. And when amicable approaches don’t work, mediation, arbitration and litigation may all be viable options when a situation is particularly consequential. As every contract dispute is unique, it is generally wise to avoid making assumptions about how to approach such circumstances. Instead, seeking personalized legal guidance – especially if much is at stake – is likely wise.

Why the financial costs of litigation may be a worthy investment

2024-07-14T20:05:13Z

The prospect of business litigation often inspires concerns about high financial costs, time-consuming processes and potential risks. However, these costs can sometimes be a worthy investment for a business. While many litigation risks can be managed effectively in proactive ways, should the need to file litigation – or fight back against another’s claims – arise, pursuing a legal strategy in court may be beneficial. Certainly, every company’s situation is unique, and litigation should never be embraced lightly. However, there are times when it is the best option given a company’s circumstances. The following are some of the most common reasons why companies opt to embrace litigation in service of their best interests.

Safeguarding a company’s intellectual property

Businesses often face threats to their intellectual property (IP) and other critical assets. Engaging in litigation to protect patents, trademarks, copyrights, and trade secrets is essential. Successful litigation can prevent competitors from infringing on IP, thereby maintaining a competitive edge and safeguarding future revenue streams. The cost of litigation is often outweighed by the value of protecting these vital assets.

Enforcing contractual obligations

Contracts are the backbone of business operations. When another party breaches a contract, it can lead to significant financial challenges and disruptions to a company’s operations. Litigation serves as a tool to enforce contractual obligations and recover damages. Pursuing litigation can deter future breaches by signaling that your business is prepared to defend its interests vigorously. The financial recovery and the reinforcement of business integrity often justify litigation expenses.

Resolving complex disputes

Complex disputes, such as those involving significant sums of money, complex transactions or multiple parties, often cannot be resolved via alternative means. Litigation provides a structured environment for addressing these issues comprehensively. By bringing a dispute to court, businesses can achieve a legally binding resolution, ensuring clarity and closure. Depending on a company’s circumstances, prioritizing diligence and the protection of business interests can have long-term positive effects, outweighing immediate costs. While litigation is not appropriate in every scenario, it is appropriate in many.

California law and HOA prohibitions of political signage

2024-06-23T16:36:11Z

There’s no doubt that the U.S. is more politically polarized than ever. That’s true even within our own state – and sometimes within communities. No one has to drive far without seeing a bumper sticker, flag, banner, poster or sign that reflects support for a candidate, group, law or idea that they strongly oppose – or opposition to one they support. When signs, posters, flags and banners make their way into residential neighborhoods and condominium complexes, they can provoke some very unneighborly behavior. Homeowners’ association (HOA) officers often seek to prohibit residents from displaying these in their yards, on their patios and balconies, in their windows and on their doors.

What does the law say?

California, however, is among the states that only allows HOAs to prohibit political signage in common areas like sidewalks or common lawn areas, pools, golf courses and streets. The best way for HOAs to avoid the issue of political or other potentially inflammatory displays on residents’ property is to have a clause in the covenants, conditions and restrictions (CC&Rs) or other agreement that prohibits signs, banners or flags over a specific size. Under California law, “An association may prohibit noncommercial signs and posters that are more than nine square feet in size and noncommercial flags or banners that are more than 15 square feet in size.” California law also allows HOAs to prohibit individual property owners from displaying signs “as required for the protection of public health or safety or if the posting or display would violate a local, state, or federal law.” This could be used to keep out signs that use obscenities or threatening language.

How to help avoid disputes

It can be helpful to remind all property owners of the law and of any specific HOA regulation about political displays before we get too far into election season – just as you likely remind them about how long they can keep their outdoor holiday lights and decorations up before the holiday season. This can minimize disputes between residents and the HOA and among residents themselves. It can help to have legal guidance to prevent the need to deal with residents’ claims against the HOA.

Examples of a breach of contract

2024-06-12T11:08:55Z

Many business disputes revolve around a breach of contract. Two business owners may have signed a contract together, but only one of them upholds their side of the deal – such as paying for services or products that were never rendered. Contracts can be breached in numerous different ways, however, and the exact manner of the breach helps to determine the next steps that should be taken. Below are three examples.

A minor breach

In some cases, the contract breach is considered to be a “minor” issue, although it can still cause financial harm. For instance, a shipment may arrive a day later than the contract stipulated. This can cause delays, but the contract is fulfilled eventually.

An anticipatory breach

Another type of contract breach is when one party anticipates that such a breach is inevitable. They reach out to the other party and inform them in advance that they are going to fail to fulfill the contract. For example, a lumber mill could accept a contract to deliver materials to a job site, but then supply chain issues may mean they don’t have the materials on hand to deliver.

An actual breach

Finally, it is often known as an “actual” breach when one side refuses to comply with the contract. For instance, maybe the lumber mill has another offer at a higher price point. They refuse to fulfill a prior obligation in order to make more money on that individual sale. As a business owner, if you find yourself involved in a dispute over a contract breach, take the time to look into all of the legal options at your disposal.

Consumer confusion matters when choosing a business name

2024-05-29T14:24:38Z

When choosing a business name, you have to be careful not to pick something that has already been protected as a piece of intellectual property. This means you generally can’t pick the same name as major corporations that have worldwide brand recognition. You are free to start a department store if you would like, for instance, but you certainly could not name it anything close to “Walmart.” However, you will sometimes see businesses that do have very similar names. A common example is Delta Faucets and Delta Airlines. But you may also see small businesses in your area using generic names or names that are fairly similar to other establishments. A coastal town may have multiple businesses with variations of “The Island Inn” or “The Islander” or something of this nature. How is this permitted?

Avoiding consumer confusion

To understand why this happens, you need to know the main goal of these types of intellectual property laws: Avoiding consumer confusion. Your business cannot infringe on another company’s brand identity, and doing so would manipulate consumers into buying from your business when they thought they were buying from a different company entirely. You would create consumer confusion. But this doesn’t always happen with small local businesses. They may be unknown in other geographical locations. They may also work in different industries. This is why Delta Faucets and Delta Airlines can both exist. A consumer who is looking to buy from one will not be confused and buy from the other. Naming a business can be complicated, and new business owners need to be well aware of all of their legal rights and obligations.

How cease and desist tools can keep you out of court

2024-05-15T10:56:46Z

Most small and medium size business owners don’t want to go to court to protect their interests if they don’t have to. That’s one reason why they’re too often the victims of intellectual property (IP) violations, defamation and libel, contract violations, creditor harassment and more. Often a cease and desist letter can put an end to these problems. At least it can put the party that is violating the law on notice. A cease and desist letter can also begin to build a paper trail that will help if future legal action is warranted because it puts the other party on notice that their actions are illegal.

What is in a cease and desist letter?

This letter is used to inform a party that its actions are illegal and if it doesn’t “cease and desist” them, you will take legal action. You’ll also want to let them know if and how the actions are harmful to your business. That’s particularly true for IP violations and libel and defamation cases. Note that this letter isn’t actually a legal notice. However, by having a legal professional write and sign the letter, it will carry a lot more weight than if you do it yourself. This can also help to ensure that it is as effective as possible and meets the qualifications for appropriate notice, like giving a date by which the other party must respond.

How is a cease and desist order different?

If the letter doesn’t get the other party to stop, you can use seek a cease and desist order. This order has to be issued by a court or government agency, depending on the nature of the violation. That means you’ll need to provide evidence, including the cease and desist letter and response (if any) to show that this order is necessary because they didn’t comply with the letter. A cease and desist order places either a temporary or permanent injunction on the party to prohibit it from continuing its illegal activity. If this still doesn’t produce results, it may be necessary to take that party to court. However, that scenario is less likely if you have experienced legal guidance as you take these other steps first.

Is a partnership a good idea?

2024-05-07T13:26:34Z

Choosing the right business structure is crucial for the success and sustainability of any venture. One common option is a partnership, where two or more individuals share ownership and responsibilities.

However, before diving into a partnership, it's essential to weigh the pros and cons carefully.

Pros of partnerships

Some of the benefits offered by partnerships are explained here.

Shared responsibilities and workload

Partnerships allow for the distribution of tasks and responsibilities among multiple individuals, easing the burden on any single person. Over time, this often results in increased productivity.

Diverse skill sets

Partnering with someone means you gain different experiences, skills and perspectives. This diversity can enrich decision-making processes and problem-solving capabilities.

Pooling of resources

Partners can combine their financial resources, expertise, and networks, enabling the business to access more opportunities and resources than if operated individually.

Flexibility

Partnerships offer greater flexibility in decision-making and management structure compared to corporations. Partners can adapt quickly to changing market conditions and business needs.

Cons of partnerships

It is also important to know the potential disadvantages of a partnership to make an informed decision.

Shared profits and liabilities

In a partnership, partners share profits, which may not always align with individual contributions. Additionally, partners are personally liable for the business's debts and obligations, exposing personal assets to risk.

Possibility of conflict

Differences in opinions, decision-making styles or work ethics among partners can lead to conflicts that may hinder the business's progress. Resolving disputes within a partnership can be challenging and time-consuming.

While partnerships offer various benefits, such as shared responsibilities and resources, they also come with risks, including shared liabilities and potential conflicts. Before forming a partnership, individuals must carefully evaluate their compatibility, trust and long-term goals to determine the right choice for their business venture.

Preparing to attend court to resolve your business dispute

2024-04-22T15:18:36Z

Attending court can be a daunting experience. Even if you’re a business owner who is used to high-pressure situations, being embroiled in a dispute that has led to litigation can be a particularly stressful situation.

Whether the matter at issue concerns a contract disagreement, a partnership dissolution or any other business-related issue, preparing adequately for your day in court can significantly influence the outcome. The following are some essential tips to ensure you're well-prepared, from your appearance to your arrival.

Dress appropriately

First impressions matter, and in a courtroom, they can be particularly impactful. Your attire should convey professionalism and respect for the judicial process. Business owners should generally opt for business formal wear: men might consider a suit and tie, while women could wear a conservative suit or dress. The key is to choose subdued colors and avoid flashy accessories.

Arrive early

Arriving early to court at least 30 minutes before your scheduled time. This extra time will allow you to settle in, review your notes and confer with your legal team. It can also help to ensure that you're not rushed, helping you maintain composure, which is important in a high-stress environment like a courtroom. Being early can also help you to account for unexpected delays such as traffic, parking difficulties or navigating the courthouse for the first time. Some courthouses have security procedures that can take longer than anticipated, so allotting extra time is wise.

Know the layout and rules of the court

Familiarize yourself with the layout of the courthouse ahead of time. Knowing where to go, the location of the courtroom, restrooms and other facilities can lessen anxiety and avoid last-minute confusion. Additionally, you’ll want to understand and adhere to the court’s rules. These might include turning off your cell phone, not bringing food or drinks into the courtroom and maintaining a respectful demeanor at all times.

Attending court can be stressful, but being prepared can help you to minimize that stress to the greatest possible extent.

When does a company have a duty to preserve evidence?

2024-04-04T14:55:01Z

Occasional disputes that evolve into litigation are something to be expected in almost any industry. Generally speaking, a company is typically expected to preserve evidence that might be related to any lawsuits. This duty is triggered not only when there is an actual legal dispute but also when the company becomes aware of the potential for litigation.

What are some examples of some triggers?

Essentially any situation that raises the specter of a lawsuit triggers your duty to preserve relevant evidence. Some common situations include:

Customer complaints: If a customer falls in your parking lot or slips on a wet floor, it’s critical to preserve a record of the events, surveillance footage and anything else that might be relevant to their claims.
Employment issues: Did a disgruntled employee threaten to sue you for discrimination? Even if you know that their allegations are false, you should consider yourself “on notice” that a lawsuit may be forthcoming.
Government investigations: If the Securities and Exchange Commission (SEC) or another government body initiates a regulatory compliance or criminal investigation, that’s definitely a time to take steps to preserve all important documents.
Demand letters: Did you get a demand letter or a cease-and-desist letter from someone who claims that you’re infringing on their intellectual property rights? Even if you’re initially willing to comply with their demands, you should still anticipate future litigation.

What happens if you fail to preserve the evidence? That’s called spoliation of evidence, and it’s treated very seriously. The court may decide that the missing evidence should automatically be interpreted in the light most favorable to the other party, and that can heavily damage your case. These days, documentation is the key to success in just about every sector of business – especially when there’s litigation involved. Coming up with a solid document preservation plan well before it is required can help you avoid painful (and expensive) consequences for failures in that area down the line.