Litigation Basics for Business Managers & Owners
Posted by Tamisan Bencz
on Apr 24, 2014
Q: What do you call a smiling, courteous person at a bar association convention?
A: The caterer.
We began our story with a joke since the topic normally gives goose bumps. Amy Bassili from Prowse Chowne LLP was a lovely addition to our meeting. She was engaging, light hearted and even shared a lawyer joke of her own.
Lawyers with senses of humour – I feel a marketing idea come up …
oh I digress.
Amy practices litigation with Prowse Chowne LLP and works with our very own John Williams. She specifically spoke about the necessity of being proactive versus reactive and how to avoid a lawsuit. Don’t ever consider that a lawsuit will not happen. Every business has risk but your business shouldn't be risky and lawyers are busy regardless of recession or boom. If you are a business you should take the time to speak with a lawyer.
Lawyers think about conflicts that you never considered to prepare for. You may have all the planning in the world, but lawyers are good at finding conflict and issues. They are trained to look into all aspects … this would be why you pay them the big bucks. Speaking of money: spend a little now to save later. Although preventative measures of speaking with a lawyer can cost you, it is far cheaper than a litigation. A litigation would cost you a minimum of $5,000 for the initial stage of your case and then more thereafter.
Food for thought …
Keep your documents: keep a paper trail whether it is electronic or paper;
File and archive documents to keep track;
Keep track of all the relevant records: much of the time lawsuits are not settled based on right or wrong but who had the information.
Employee manuals: have policies and employment standards set out in the manual; have employment contracts [signed by both the employee and employer]. The manual will simplify things and let everyone know what to expect. Policies must be just and equitable. Be sure your employee manual follows the law too.
Obligations start at the interview process before you even hire the candidate.
We have obligations to employees. Lots of employees get terminated in a legally unjust way. Sometimes people are moved to human rights.
Unanimous Shareholder Agreement covers everything. The structure and design of the Unanimous Shareholder Agreements are proactive and foresee what might happen in the future.
Employers can fire anyone but must provide a severance. The purpose of the severance is to allow the employee enough time to find another job.
Disclaimer: This article was not written by a lawyer and should not be considered legal advice. This is why we have lawyers.