Blog Posts Tagged "small business"
Creditors’ Rights Trump Ownership Restrictions in LLC Operating Agreements
Posted on Feb 03, 2016 by BY TURNER PADGET LITIGATION TEAM
A recent South Carolina Supreme Court decision affirms the supremacy of creditors’ foreclosure rights, and sounds a cautionary note for LLCs. The state’s high court said that LLCs can’t use an operating agreement to force a creditor to sell a distributional interest it obtained via judicial foreclosure.
The ruling came in Levy v. Carolinian, LLC, a case involving an LLC that owns an oceanfront hotel. One of the members, who owned about a quarter of the LLC, found himself on the wrong end of a judgment for $2.5 million. Creditors obtained a charging order – essentially a lien – against their debtor’s distributional interest in the LLC. The creditors then foreclosed on its charging lien and purchased the member’s distributional interest at public auction. continue reading
Records Retention - Do You Have a Plan?
Posted on Jan 06, 2016 by TURNER PADGET LITIGATION TEAM
For many small businesses, deciding what documents to keep and for how long is a function of storage capacity. As servers and filing rooms reach capacity, businesses look for documents to discard.
This is not the way to manage your documents. continue reading
How to Pick a Lawyer
Posted on Apr 29, 2015 by BY TURNER PADGET LITIGATION TEAM
Just as we all need a family doctor who we can rely on, every small business eventually finds that it needs a relationship with a lawyer. As with the family doctor, many small business owners find it beneficial to develop rapport with one lawyer as a point of contact. While the relationship attorney may sometimes direct the client to someone with specific experience, it’s reassuring to begin the conversation with someone who understands your business and industry – and remembers the names of your kids.
I frequently go shopping for other lawyers myself, so I have some experience in this area. In my case, I’m usually looking for a lawyer or firm in another state who can handle a matter for a client. Even as a lawyer, it’s not always easy to judge if another is going to be a good fit, so I understand how business owners may find it difficult to pick an attorney. Here’s my test for picking a lawyer. continue reading
Don’t Automatically Include Arbitration Clauses in Commercial Contracts
Posted on Feb 25, 2015 by TURNER PADGET LITIGATION TEAM
For years, mandatory arbitration clauses have been almost automatically included in many commercial contracts, because they’ve been regarded as cost-effective detours for matters that might otherwise work their way through the courts. Over the last few years, we’ve adopted a more critical view of arbitration, and now regard it as a good strategy for some clients, but not for others. continue reading
How to Write a Workable Non-Compete Agreement
Posted on Feb 18, 2015 by BY TURNER PADGET LITIGATION TEAM
Employers invest time, training and trust in key employees, and they don’t want to see them walk out the door and help a competitor. Non-compete agreements can protect your investment in employees – but only if they’re written with reasonable restrictions. continue reading
Don’t Allow Your Business to Become a Victim of the Dreaded Ds
Posted on Feb 11, 2015 by TURNER PADGET LITIGATION TEAM
Is your closely-held business protected from the five dreaded Ds – death, disability, divorce, disaster and disagreement? continue reading
Turmoil, and even business failure, can follow if you don’t have a legal succession plan in place when any of these events occur. While this may not offer you any comfort, you are certainly not alone if you haven’t yet set up a succession plan: fewer than half of closely-held and family-owned businesses have a plan in place that covers these contingencies.