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Just in Case
Last month we told you of Rob's inclusion as a Pennsylvania Super
Lawyer for the second year in a row. On the heels of that honor, Rob has
been distinguished by Martindale-Hubbell as a Preeminent Lawyer, and will
be listed in the Bar Register of Preeminent Lawyers. This distinguishment
identifies only 5% of the nation's attorneys who are able to achieve the
prestigious "AV" rating. This rating is the result of a
structured peer review and is based upon the confidential opinions of
practicing attorneys and the judiciary.
Although we keep the names of our client's confidential, we
are pleased to provide descriptions of two clients each month that we are
working with and how we are assisting them.
Technology
Company-A client hired the Firm to defend it in litigation. After the
litigation was over, the client became a Legal Access client to review the
company's contracts. Since that time, the client has utilized the Legal Access
services to purchase one business and sell another business.
Home
Heating Oil-A client hired to Firm to review certain existing
contracts and to structure a settlement agreement. After becoming a Legal
Access client, the Firm was asked to assist the client in creating a new
business venture.
Over the last month, managing partner, Robert Bovarnick appeared
on the popular business radio show "Executive Leaders," on WWDB.
Rob is
being scheduled to appear on a local cable television show "The
Entrepreneurs Network," hosted by Richard Anthony.
Why Do I Need A Lawyer To Write A Contract?
It isn't a function of your intelligence. It is function of
experience and recognizing what needs to be in a contract. The adage
"you get what you pay for" certainly applies here. Let me provide
two examples. A very successful businessman decided to write his own
"contract" for a project that was going to make his company about
$50,000. In actuality, it wasn't even a contract, but a series of letters.
For a
while, things went along smoothly. However, as it turned out, issues came
up and the other side ended up filing a lawsuit. As a result of creative
lawyering, the plaintiff claimed its damages were $1,000,000. They weren't,
but the tenor of the litigation was set. The case eventually settled.
Unfortunately,
the settlement was for more than the original amount of the contract. So
the businessman, who expected to receive a nice amount of money, actually
had to pay the other side together with his attorney. The amount that he
paid was more than he would have made.
Could
this businessman have prevented this by going to a lawyer to draft a
contract in the first place? There are no guarantees, but the contract
would have been written more precisely, which hopefully would have
prevented the problem from arising.
The
second example is where the owner of the business was interested in selling
his business. The buyer agreed to pay in the mid-six figures. Rather than
going to a lawyer to draft the agreements, the owner decided to take a form
asset purchase agreement he found somewhere else and tried to make it fit
to his situation.
After
the agreement was signed and the new owner took over, he stopped making the
payments to the old owner. While there should be remedies available for the
old owner in the agreement, because he didn't know to put them in (and they
weren't in the form he used), he was unable to either get paid or retake
control of his business. So the old owner was faced with two choices-walks
away with nothing, or hires a lawyer to file a lawsuit.
It is
important for you to keep the ultimate goal in mind and not be
shortsighted. I recently received a telephone call from someone who was
interested in buying a business. His first question was "how much will
it cost." From my perspective, this is the wrong question to ask.
Here
is someone making a significant investment in a business that hopes will be
very lucrative. And yet, when selecting his attorney, he was being driven
by price. I told him without more information; I could not estimate the
cost.
I also
told him my hourly rate. He told me he would call me back. He never did. He
should have recognized that he was making a significant investment in his
future and the importance of making sure the deal was completed properly.
Instead, he was driven by price. I hope that he purchases the business and
makes a lot of money. However, I think it is more likely that he will be
spending more on attorneys down the road.
To view more of Rob's column, "Ask the Attorney", published in
the Evening Bulletin, please click
here
2007.
This publication is intended as a general guide only. This Client Alert
does not constitute legal advice of Bovarnick and Associates, a
Pennsylvania Professional Corporation, or any member of the firm with
respect to the subject matter hereof. The information presented and
opinions expressed in this Client Alert are intended for general guidance
only. They are not intended as recommendations for specific situations. As
always, readers should consult a qualified attorney for specific legal
guidance.
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