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Preventative Lawyering
By: Stacey Anderson
Contracts.
A good contract is the basis for any smooth business relationship. Contracts are
essential. Not only do they clarify roles, responsibilities and ownership issues,
they limit potential liability. Attorneys can help you draw up a contract that covers
all your bases, but if you want to use your attorney efficiently, do some
homework first.
Sit down and in your own words define the relationship you're setting up and
describe those who you're setting it up with. Anticipate industry-specific issues
that affect your risks and liabilities in the contract. Point out best and worst-case
scenarios that affect the success of your product and how that will affect the
contracted parties. Address ownership issues. Now set up a meeting with your
lawyer.
You may think that signing a contract is a simple proposition. Just read what it
says. Wrong! It's not only what a contract says, but rather what it doesn't say that
matters. A contract can be deliberately written to be ambiguous and open to
various interpretations, which are not always in your favor. Often, you are so
personally involved in the contract negotiations - agreeing to amendments,
changing clauses day by day - that you feel that after all the discussion, it MUST
be right. Before you sign, have an attorney look at it. What you gain from an
objective eye is far greater than what you pay in fees.
You can add protective steps to your contracts, which may help in cases that
lead to litigation. Include a provision in contracts that states that if you need to
sue, legal fees are recoverable for non-performance or payment. You will
probably have to include a reciprocal clause for the other party. You could also
include a dispute resolution clause that specifies the use of binding arbitration.
You can even specify a mutually agreed upon arbitrator in advance.
Insurance
Whether you're buying or renewing insurance - be wary!
Don't be intimidated by complicated language. Ask all the questions you need to
thoroughly understand your policy. If your policy is just incomprehensible, ask
your agent to suggest a ''plain language'' policy.
Legally, any renewal is considered a new contract. Don't assume you are getting
the same coverage! Read the renewal policy carefully. Ask your agent to confirm
in writing whether there are any changes in the renewed policy, and, if so, then
what are they so that you are not surprised after a loss.
If a claim is filed against you, immediately notify your insurance company and
agent by certified letter, even if you don't think you're covered. This is your
responsibility. Failure to notify your insurer of an insurance claim is a cause for
non-payment of your claim.
If your insurance company or broker denies claim coverage, contact an attorney.
Don't try to negotiate on your own. It is our experience that insurance companies
deny responsibility too frequently. An initial denial of your claim my simply be a
negotiating tactic.
If you have a dispute with your insurance company, consult your policy to find out
how much time you have to start a lawsuit and contact an attorney well before
that time expires.
Remember, the money you spend now for legal fees to prevent future problems
is a drop in the bucket compared to the fees you will pay in future litigation. If you
use your attorney wisely, it could be one of the best investments you make.
About the Author
Betsy Sweetser is a partner in complex non-personal injury civil litigation and
appellate work with the law firm Pellettieri, Rabstein and Altman at 100 Nassau
Park Blvd., Princeton, NJ.
Visit Site: Pellettieri Rabstein and Altman
>>Reprint/Distribution Source : ArticleWareHouse.com
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