Articles Tagged with san jose litigation attorney

AdobeStock_531838016-300x200It’s becoming increasingly common for manufacturers to turn to distributors to sell their products to reduce the overhead costs of processing orders, logistics, and more. The manufacturer sells the product to the distributor, which then resells the product at a profit. The distributor ostensibly has the infrastructure to process these sales and a keen understanding of the market in which they operate. Instead of taking on the overhead of distribution themselves, they can hire experts who operate within this market on a daily basis and have the infrastructure to meet demand. From the distributor’s point of view, they get access to the product without the overhead of manufacturing. Distributors and manufacturers can thus operate on a symbiotic basis, each making the other more profitable by staying in their lane of expertise.

Problems arise, however, on the distributor side. Distributors may spend years cultivating a relationship with a manufacturer only to find that the manufacturer now wants to handle distribution in-house. In Europe, you cannot fire a distributor without a severance package. In California, distributors have no such protection.

In this article, a Silicon Valley business litigation attorney will discuss how distributors can protect themselves with strong distribution agreements that protect their interest in a market.

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Despite the fact that everyone is entitled to their day in the court, the reality is that most cases are resolved out of court.  Many clients will approach their lawyers with the hope that they will be able to quickly get in front of a judge and explain their story—a vision of American justice that is reinforced in popular media and Court TV.  However, getting to trial is a long process and most cases never make it to trial.  In most situations, the cases take earlier exit ramps, such as informal out-of-court settlement, mediation, arbitration, or is resolved by a ruling before trial.  Even if a case is set for trial, it is very common for the parties to settle on the eve of trial.

Often, the cheapest and most efficient way for a dispute to get resolved is for the attorneys to work on an out-of-court settlement.  This can occur at any point either before or after a lawsuit has been filed.  Under this track, attorneys informally negotiate a resolution.  If the parties agree to it, the attorneys will memorialize the resolution in a settlement agreement.  This is often the quickest way to resolve a case, as it does not require any third-party intervention—it only requires the parties to work together to settle their differences and capable counsel to guide the parties through the process.

In addition to out-of-court settlements, cases often get resolved with the help of a neutral third-party.  For instance, cases often go to non-binding mediation before they move on to trial.  Indeed, more and more courts are making mediation a mandatory step before allowing the case to move to trial.  During mediation, the parties present their case to a neutral third party whose job is to facilitate a settlement agreement by working with the parties and their attorneys as a go-between. Sometimes, cases may end up in front of a neutral third-party who has the authority to make a binding decision.  For instance, if the parties signed an agreement for binding arbitration, a private judge will make the final decision and the parties must live with the decision whether or not they are happy with it.  Arbitration is usually less costly and more efficient than going to trial.

Options When Faced with a Legal Dispute

When faced with a legal dispute, it is important to know what your options are. A San Jose business owner typically juggles multiple commercial relationships on a regular basis – vendors, clients, employees, contractors, and business partners. Given the nature of running a business, it is likely that a legal dispute will come up at some point. When this happens, it is very important to educate yourself on what your options are. Litigation can subject a business to unnecessary stress, be huge time sink, and cost you significant legal fees and expenses. Alternative dispute resolutions like mediation and arbitration are processes that may allow you and the other side to reach a solution that you both can live with without the substantial causalities that litigation typically entails.

The experienced San Jose corporate attorneys at Structure Law Group have extensive experience in litigation, mediation, and arbitration. They can discuss the pros and cons of each option with you and help you pick the best course of action for your business.

Going to court is expensive and can take your focus away from running your business for a significant period of time. In order to avoid the added cost and stress of litigation whenever possible, include these steps in your business practices.

Have effective and enforceable contractsFotolia_74847478_Subscription_Yearly_M-300x180

Every business relationship should be memorialized in a written contract. This includes between owners, with clients and customers, with employees, with vendors, and more. Having a contract that is properly drafted to best govern the specific relationship and responsibilities at hand can help avoid disagreements down the road. Each party will know his or her obligations and expectations because it is in writing and the contract can help dictate how disputes will be resolved out of court.

When you enter a contract with a provider, a client, or another business setting forth the terms of your business deal, you expect the other party to abide by the terms of the contract. If the other party fails to adhere to the terms of your business agreement, it can cost you time and money and can be infuriating, especially if you have performed your obligations under the contract or the breach of contract costs you money or future business. Business owners harmed by another party’s breach of contract often want to immediately march into court and file a lawsuit against the breaching party. However, this is often not the best or most advantageous course of action and often may even constituted a breach of contract by you. If you believe that a contract has been breached, consider promptly consulting with a qualified attorney to evaluate the contract and assess rights and legal options.should-you-take-your-contract-dispute-to-court-300x200

Have Your Attorney Negotiate with the Other Party

Often, a party may not realize that they have violated or are not in compliance with the terms of a contract and may not understand the potential liability they face for having breached or being in non-compliance with the agreement. Many times these issues can be remedied, putting the aggrieved party in a much stronger legal and negotiating position. It may then make sense for your attorney to reach out to the other party to attempt to resolve the dispute prior to commencing a lawsuit.