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Contrary to popular belief, most business disputes do not go to trial. If your business is facing a dispute, litigation may not be the only option to resolve it. You may be able to resolve your dispute with the help of alternative dispute resolution (ADR) methods. If you do not understand your options for resolving disputes, you may need to seek the guidance of an experienced business law attorney. Our team of attorneys at Robinson Bradford LLP can evaluate your situation to help you decide on the best course of action in your case. Also, we pride ourselves on guiding our clients towards success. We represent clients with all types of alternative dispute resolution options and litigation in Stockton, California, as well as Temecula and Costa Mesa. What Is Alternative Dispute Resolution (ADR)? Alternative dispute resolution refers to methods that allow the parties to resolve disputes less formally outside of the courtroom. As the name implies, ADR methods are an alternative to litigation. When resolving a dispute through ADR, parties to a dispute work with a neutral third party (a mediator) to negotiate a mutually agreeable solution or let a neutral decision-maker (an arbitrator) make a legally binding decision for them. According to the U.S. Department of Labor, alternative dispute resolution (ADR) provides a forum for the parties to a dispute to work out a voluntary agreement without having a judge to decide for them. ADR methods are commonly used to resolve both employment and business disputes. Common Alternative Dispute Resolution Methods Three of the more commonly used alternative dispute resolution methods are: Mediation. This ADR method allows the parties to work with a neutral, third-party mediator to resolve their dispute. The mediator facilitates communication between the parties to a dispute to help them reach a voluntary and mutually acceptable agreement. However, the mediator does not make the decision for the parties. Arbitration. This ADR method is slightly different from mediation. The parties refer their dispute to an arbitrator or a panel of arbitrators who apply the law to the facts of the dispute and make a legally binding decision for the parties. Unlike mediators, who do not have decision-making power, arbitrators can decide the case when the parties cannot agree on their own. Med-Arb. Med-Arb is a hybrid ADR method that combines mediation and arbitration processes. As the name implies, the parties first agree to mediate their dispute. If their attempts to resolve the dispute through mediation fail, their case will proceed to arbitration, where an arbitrator will make a binding decision for the parties. If you are not sure which ADR method to choose to resolve your dispute, you must contact a knowledgeable attorney to explore your options. Our business law attorneys at Robinson Bradford LLP help businesses in Stockton, Temecula, and Costa Mesa resolve their disputes through ADR methods or litigation, depending on the facts of the dispute and the parties’ willingness to negotiate. What Are the Benefits of ADR? There are many benefits of choosing alternative dispute resolution over litigation, including but not limited to: Cost. ADR methods such as mediation and arbitration are generally much more cost-effective compared to taking a dispute to trial. Time. Litigation can be extremely time-consuming when resolving business disputes. ADR is generally quicker than going to court. Depending on the complexity of the dispute, the litigation proceedings could last for months or years. Disruption. Pending litigation can disrupt your business operations in different ways. Choosing ADR methods, on the other hand, is generally less disruptive. Publicity. Litigation is public, which means your business and its operations will be subject to public scrutiny. ADR methods such as mediation and arbitration are private forms of dispute resolution. Even if your business dispute does not go to court, you still need an attorney to protect your interests and help you navigate the dispute resolution process. Discover Your Options The business law attorneys at Robinson Bradford LLP recognize that business disputes are sometimes best resolved through alternative dispute resolution methods such as mediation and arbitration. ADR methods are generally less expensive and time-consuming and bring less disruption to businesses. Get a free consultation today to discuss the available ADR methods in your particular case. Our team has the knowledge, resources, and experience necessary to assist your specific situation in Stockton, California, as well as Temecula and Costa Mesa.
Business competition can sometimes be ruthless, but just competing with another entity for customers, sales, and profits is not generally illegal. However, both California contract law and tort law allow for legal action when a third party wrongfully interferes with a contract or ongoing business relationship to the detriment of the affected party. This type of action falls under the general label of tortious interference. A tort, unlike a crime, is a civil wrong that can be addressed in civil court. Generally, there are three types of tortious interference recognized in California. One is interference with contractual relationships (IWCR). Another is interference with prospective economic advantage (IWEP). A third type, not based on intentional acts, is negligent interference with an economic advantage when no contract is involved. If you feel your business is being harmed by tortious or negligent interference, contact the business law attorneys at Robinson Bradford LLP. With offices in Stockton, Temecula, and Costa Mesa, we proudly serve business clients in the Golden State. With a combined half-century of experience, our attorneys can examine the circumstances of your claim, advise you of your legal options, and help you mount any legal or other action necessary to protect your business interests. Understanding Tortious Interference Perhaps the most famous case of tortious interference in the United States came in 1984 when Texaco interfered with efforts by Pennzoil to purchase Getty Oil. Pennzoil prevailed and was awarded $10 billion in economic and punitive damages, with the two parties later agreeing on $3 billion. Tortious interference is not a single statute on the books in California or any other state but evolves through court cases and precedents set. In fact, as recently as 2020, the California Supreme Court was still interpreting the requirements for proving any type of tortious interference. In Ixchel Pharma, LLC v. Biogen, Inc., the court ruled that in any type of tortious interference claim, the plaintiff must show “independent wrongfulness” by the defendant or interfering party. Otherwise, it said, legitimate business competition could be chilled and restrained. Types of Tortious Interference As referenced earlier, there are three forms of tortious interference – two intentional, one negligent, one involving contracts, and the others ongoing or prospective business relationships. These are: INTENTIONAL INTERFERENCE WITH CONTRACTUAL RELATIONSHIPS: In this type, there needs to be a written or oral contract governing the activities of the parties to the contract. For instance, Company A may contract with Company B to supply chips to power its line of manufacturing plant robots. Company C steps in and offers Company B more for its chips. B agrees and either shortchanges its shipments to A, eliminates them altogether, or says it won’t comply until the higher price is met. C has intentionally interfered with a contracted agreement. INTENTIONAL INTERFERENCE WITH PROSPECTIVE ECONOMIC ADVANTAGE: Here there may not yet be a contract, but A and B are in the stages of agreeing on a business plan that will benefit both. C interferes to siphon off any prospective advantage to itself. The business arrangement between A and B may already be ongoing, and C’s actions threaten to or actually do disrupt the advantages enjoyed or envisioned by A and B. NEGLIGENT INTERFERENCE WITH PROSPECTIVE ECONOMIC ADVANTAGE: Here the interference by C may result in the same loss of advantage by A and B, or one or the other, but the interference need not be shown to be intentional. The standard is that the defendant, or interfering agent, knew or should have known about the relationship and economic prospects enjoyed by A and B but interfered anyway. Proving Tortious Interference If you go to court and prevail, you can generally recover damages, usually lost profits. Punitive damages are also available if the interfering party acted with “malice, fraud or oppression.” In other words, the defendant not only intended to interfere but also aimed to cause deliberate harm. In any tortious interference lawsuit, the plaintiff alleging the interference must show: There was an existing contract or business relationship based on economic necessity. The interfering party knew or should have known about this relationship. The defendant, intentionally or wrongfully, interfered with that relationship. The interference caused economic and/or other losses to the plaintiff. Turn to Skilled Legal Guidance If you suspect someone or another business is interfering with your contracts, business relationship, or prospective economic advantage, you need skilled and experienced legal counsel on your side to assess the situation and propose legal options going forward. The business law attorneys at Robinson Bradford LLP stand ready to help you with any tortious interference claim. Not every instance needs to go to court, but all need to be dealt with and resolved, either through negotiations and confrontation or filing a lawsuit. Contact Robinson Bradford LLP when you feel your business is illegally interfered with in Stockton, Temecula, or Costa Mesa, California.
Building a successful company is a tough endeavor. You face many obstacles, including competition for customers, cash flow problems, supply chain issues, and employee recruitment and retention challenges, to name a few. Odds are, yours will be one of the 90% of businesses that face a lawsuit at some point (if you haven’t already become a part of that statistic). What you do when your business is being sued may be critical to your company’s survival. A failure to respond in the right way and protect your business in the process may lead you to shutter your business and your entrepreneurial goals with it. At Robinson Bradford LLP, we have been helping businesses protect themselves for decades in Stockton, Costa Mesa, and Temecula, California. As a small business, our firm is acutely aware of what’s at stake. As experienced business litigation attorneys, we are dedicated to helping our clients be successful when facing legal challenges. What Business Lawsuits Are Common? Coming in at 12 million annually, contract-related lawsuits are the most common type of business litigation. You may be sued by customers or clients, employees, vendors, landlords, or any party with whom you sign any type of contract or agreement. Personal injury lawsuits are common. Slip-and-fall and other premises liability lawsuits are frequent among businesses with brick-and-mortar locations. Auto accidents involving you or your employees being accused of causing a crash while in the agency of your business occur often. Moreover, as legal protections continue to increase, lawsuits related to discrimination are common, filed primarily by customers, clients, tenants, and employees. Employees may also file workers' compensation claims or lawsuits alleging workplace harassment. In some types of businesses, violations of intellectual property laws are frequent grounds for lawsuits. What Should I Do If My Business Is Sued? There are certain precautions you should take when your business is being sued. These seven steps might protect your business from crumbling under the stress of litigation. When you are served with notice of the filing of a lawsuit that lists you as a defendant, note all deadlines included therein. If there are no specific deadlines mentioned, that does not mean you can ignore it. In California, you generally have 30 days from the date of service to file a formal response with the court in which you are being sued. If you fail to respond in a timely manner, the plaintiff can obtain a default judgment against you. When you are served, or in advance of being served if you know someone intends to sue you, immediately hire an experienced California business litigation attorney. Your attorney will ensure a timely and appropriate response to a lawsuit and will help you prepare a defense against it. If you have insured your business against the type of lawsuit filed, notify your insurance company. For example, if it is a personal injury claim arising from a slip-and-fall, contact your premises liability insurer. If the lawsuit was filed by an employee injured at work, contact your workers’ compensation insurer. Be careful with what you say or do outside the legal process. You need to avoid making the situation worse by committing slander or libel. Do not use social media or any type of communication to air your grievances with the plaintiff. All communication of any kind should be handled via your attorney. If not, you risk having your words and actions used as evidence against you in court. Begin gathering records, correspondence, contracts, and other documents relevant to the allegations the plaintiff has made against you. Your attorney will need these to develop a defense. Conduct your own internal investigation of the allegations and use your attorney’s expertise to help. Remember that your employees and those acting in the agency of your business are your business. As such, you are responsible for their actions. It is important that you rely on guidance from your attorney to make sure you do not make the situation worse. This is especially true if the plaintiff is a current or former employee. Be completely honest and forthcoming with your attorney. Remember that attorney-client privilege applies to your communication with your lawyer, and your legal counsel cannot adequately defend you if you fail to provide any and all information relevant to the lawsuit allegations. Your attorney has only your best interests at heart and will guide and counsel you with those in mind. What Should I Not DonWhen My Business Is Sued? If your business is sued, do not ignore the lawsuit and do not take steps to attempt to conceal evidence or proof of the plaintiff’s allegations. If you do find clear evidence that could support the allegations, do not just continue business as usual. Talk to your attorney about taking steps to rectify the situation immediately. It could curtail the subject lawsuit, but it might certainly keep someone else from filing a similar one in the future. For example, if a new employee policy will keep an event from recurring, implement it right away. Finally, do not draw attention to the lawsuit, especially by lashing out at the plaintiff. Don’t Risk Your Business. Call Now. The odds of having your business sued are great, but the odds of losing your business because of it don’t have to be. The best way to reduce the risks of negative impacts on your business is to hire an experienced and tenacious business litigation attorney right away. If your business is being sued or may be sued in Temecula, Stockton, or Costa Mesa, California, call Robinson Bradford LLP now. We can help.
When people hear the term “trade secret,” they often think of the formula for Coca-Cola, which is locked inside a vault at corporate headquarters in Atlanta, Georgia, and is never known by more than two people at one time. The two parts of the term – trade and secret – pretty much reveal what a trade secret is. First, it is an idea, concept, marketing strategy, customer base, algorithm, recipe, formula, a machine, a process, or just about anything that gives a business – a trade -- a competitive advantage over its rivals. Second, it must be protected as if it’s a secret, whether in a vault, like Coca-Cola, in protected databases, or through nondisclosure agreements and other efforts to keep the information from falling into the hands of competitors. California, like most other states, has adopted the Uniform Trade Secrets Act (UTSA) to allow businesses and individuals to protect their trade secrets from what the state calls “misappropriation” rather than theft, which is actually what may have led to its unauthorized use by others. If your business has seen its trade secret misappropriated by others, or you have been accused of misappropriating another entity’s trade secret, in Stockton, Temecula, or Costa Mesa, California, contact the attorneys at Robinson Bradford LLP. With our combined 50 years plus experience in business disputes and litigation, we can listen to your story, explain your legal options to you, and attempt to fight for your rights. Understanding Trade Secrets According to the United States Patent and Trademark Office (USPTO), a trade secret has three components, which in the agency’s own words are: information that has either actual or potential independent economic value by virtue of not being generally known, is valuable to others who cannot legitimately obtain the information, and; subject to reasonable efforts to maintain its secrecy. Though trade secrets, unlike copyrights, patents or trademarks, are not registrable with a government agency such as the USPTO, federal laws do protect them. The Economic Espionage Act of 1996 protects the owners of trade secrets and allows for criminal action by the U.S. Department of Justice (DOJ) for their theft. The Defend Trade Secrets Act (DTSA) of 2016 expands the Economic Espionage Act to allow for civil action by those possessing trade secrets that have been misappropriated. The DTSA does not override any state trade secret laws, but it allows those abused to choose between state and federal civil actions. California Law on Trade Secrets The California Uniform Trade Secrets Act (UTSA) is found in the California Civil Code Section 3426.1, whose definition of trade secret mirrors the USPTO version: “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (1) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and (2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. The same section defines misappropriation in two ways -- as the acquisition by improper means, and as through the use and disclosure of trade secrets. Improper means include theft, bribery, misrepresentation, breach, or espionage whether through electronic means or otherwise. A former employee who takes a trade secret to a competitor by downloading it or taking a physical copy is using improper means. The second definition includes a former employee’s use and disclosure of confidential customer information to, for instance, solicit customers for a new employer. Former Employer Provision There is also the concept of “inevitable disclosure,” meaning that a former employee cannot wipe clean their knowledge gained during previous employment, and thus the revelation of trade secrets is a natural occurrence. California courts generally reject the inevitable disclosure defense but at the same time require that the former employer must have actual evidence of the use and disclosure of trade secret information before bringing a lawsuit. Getting Experienced Legal Counsel If your business suspects your trade secret has been misappropriated or is being accused of misappropriating a trade secret, you need to seek out experienced legal counsel. Trade secret disputes can be complex and challenging. The victim of trade secret misappropriation may be awarded damages – compensation – for any lost revenue due to the act, and the misappropriating party may be required to compensate the trade secret holder. For all your trade dispute issues – including taking the proper measures to protect your trade secrets – contact the attorneys at Robinson Bradford LLP. We have a half-century’s worth of experience in resolving business disputes and exercising the rights of the parties involved. We proudly serve clients in Stockton, Temecula, and Costa Mesa, California.
The federal Fair Labor Standards Act (FLSA) of 1938 virtually revolutionized the U.S. workplace by instituting a standard workweek of 40 hours, a minimum wage, overtime pay of time-and-a-half one’s hourly wage after 40 hours, and establishing recordkeeping and child labor regulations. The legislation required states to follow these standards so long as they participated in interstate commerce, but it also allowed states to pass legislation exceeding the FLSA. In recent decades, California has more and more been on the vanguard of labor law legislation pushing FLSA standards to new heights. While the FLSA did not mandate sick time, vacation days, or meal or rest periods for workers, the Golden State mandates three sick days a year, though it raised that to two weeks during the pandemic. Though the state does not mandate vacation time, it has put in place vigorous protections for those who enjoy these benefits at work. And, on the meal and rest period front, California has indeed filled in the void left in the FLSA. If you are an employee in or around Stockton, Temecula, or Costa Mesa, California, and you’re being denied meal or rest break rights, or if you simply want more information to make an informed decision, contact the employment law attorneys at Robinson Bradford LLP. Together, we have over 50 years of trial experience defending employee rights. Robinson Bradford LLP proudly represents clients throughout Stockton, Temecula, and Costa Mesa, California. California Laws on Meal and Rest Breaks California regulates businesses in California through a series of what it calls work orders. They are usually industry-specific but can be sometimes difficult to decipher. These orders govern wage-and-hour issues and other employment conditions. Some employers get confused about when a meal or rest break is required by state law and for how long. For starters, you should know that rest and meal breaks apply only to nonexempt employees, generally meaning those who are on hourly wages. Exempt employees are those paid by salary or commission rather than an hourly rate. In basic terms, California requires that nonexempt workers receive a 10-minute paid rest break for every four hours they work. According to the state’s Division of Labor Standards Enforcement (DLSE), work periods of more than two hours constitute a “major fraction” of the four-hour standard, but no rest period is required if an employee works fewer than three-and-a-half hours. Further, employees enjoy the right to a “net” 10-minute break, which means that they should be allowed to take their breaks near the middle of each four-hour period in a place away from their work area, if possible. The latter could present an issue for the employer since the 10 minutes are supposed to begin once the employee is relieved of all duties. But, what if the breakroom is a five-minute walk away? As for meal breaks, employees must receive a 30-minute unpaid meal break for every five hours of work. If they work 10 hours, they are entitled to another 30 minutes, but they can waive this entitlement if the first break was taken on time. Meal breaks must begin before the fifth hour of work has been reached. So, if an employee starts at 9 a.m., the meal break must begin by 1:59 p.m. If employees work no more than six hours, they can waive the meal break requirement. On-duty meal breaks are permitted only if the nature of the work prevents the employee from being relieved of duty, but an on-duty meal break must be agreed to in writing and must be paid. Lactation Accommodation By law, every California employer must provide a “reasonable amount of break time” for an employee to pump breast milk for the employee’s infant each time the employee has a need to do so. The law allows this period to coincide with regular rest breaks, but if it doesn’t, then it need not be paid. The employer must also provide a room dedicated to this activity that is separate from restrooms and shielded from view. Premium Pay for Breaks Denied If an employer fails to provide any of these mandated rest and meal break periods, the employee is entitled to one hour of premium pay for each break period violated. The definition of premium payment has been subject to debate, but a California appeals court recently ruled that it means the employee’s regular base hourly rate of pay. The California Supreme Court has agreed to review the issue. ffff If you or a loved one has been subjected to violations of meal and break periods mandated under California law, contact us at Robinson Bradford LLP. We know California employment law and have extensive experience in helping employees exercise the full extent of their rights. If you’re located in or around Stockton, Costa Mesa, or Temecula, California, reach out now. Let’s discuss your situation, weigh your options, and advise you of your best path forward.