Lawsuits between businesses can be complicated to handle. Often, there is a lot at stake in such cases, and company owners and operators want to keep the best interests of their businesses at the forefront. In some cases, efforts to protect a company may mean appealing a court order.

Florida readers may be interested in an appeal currently underway by General Motors. GM and Fiat Chrysler have been in litigation over claims that Fiat Chrysler paid off union leaders to reduce labor costs in relation to contract negotiations. The judge involved in the case believes that it would be a waste of time and resources to continue with the case and ordered the CEO of GM and the head of Fiat Chrysler to meet without legal representation to negotiate a settlement.

GM is attempting to appeal that order, which the company claims is an abuse of power. GM also believes that the court does not have the authority to consider a properly filed lawsuit a distraction and that the order shows that the judge cannot act in an impartial manner in relation to the case. Fiat Chrysler indicated that the company was ready to comply with the judge’s order for negotiations.

Appealing a court order takes work, and it does not always have the desired outcome. However, it is often worthwhile to exhaust this option, if available, after an undesirable outcome. If Florida business owners believe that their cases have not been properly handled and are considering an appeal, they may wish to thoroughly review this option with their legal counsel.

Hiring companies to perform certain duties or to complete projects is common. Often, contracts are drawn up that detail the terms of the business relationship, and agreements are made. Of course, not everyone abides by those terms, and not everyone chooses to act in an upstanding manner. As a result, when a company is not paid as agreed, construction litigation can result.

Florida readers may be interested in a lawsuit recently filed in another state. According to reports, a construction company was hired to perform work on a county law center. The owner of the construction company filed the lawsuit claiming that the construction manager on the project and the board of supervisors withheld money paid by the county that was supposed to go to the construction company.

The construction company owner indicated that the company is owed over $600,000. As part of the initial agreement for the project, the parties agreed that the money would be paid by the county to the construction management company, which would then distribute the appropriate funds to the contractors and subcontractors working on the project. The suit also stated that the construction company was asked to perform additional work and that poor management of the project resulted in the company facing substantial costs.

Not receiving proper compensation for a construction project is certainly frustrating, but it can also mean that a company loses funds needed to pay for supplies, labor and operational costs. As this case shows, some parties may need to take legal action in order to ensure that they receive the payment owed to them. Florida company owners facing this type of ordeal may wish to look into their construction litigation options.

Like businesses across the country, most here in South Florida cannot operate without relationships with other companies and individuals. There is often memorialization of those relationships in contracts in order to outline the agreements between the parties.

As long as both parties fulfill their obligations under the contract, all is well. However, if one party fails to do so, the contract will govern any dispute resolution. For this reason alone, it will greatly benefit your business to make sure your contracts will adequately protect your interests if a dispute arises.

Crucial elements of all your contracts

What basic items need to be in all of your contracts? The list below provides an outline of what a good contract will include:

• Offer
• Acceptance
• Consideration
• Meeting of the minds
• Capacity
• Legality
• Written documentation

Under each of these categories, you will put the specifics of your particular situation. For instance, you will extend an offer to another party to provide goods or services specific to your business and industry. Then the other party will accept your offer, and the two of you agree on the consideration, or payment, for what you will provide. For many people, these three elements provide the core of the contract. However, the other items provide important information regarding your business relationship.

The need to document your agreements in writing cannot be stressed enough. Verbal contracts are extremely difficult to uphold in court. Even if you are friendly with the other party, it should not deter you from documenting any business agreement you enter into in order to protect yourself. Transactions do not always go as planned, and you will want to make sure that you have protections in place in case you need to enforce your agreement.

Enlist some legal assistance

A primary function of any contract is to provide a reference point in case something goes wrong. The framework of the contract may be all you have if you need to resolve a dispute with the other party. The more detailed it is, the more information a court will have to review the situation and make a ruling that protects your best interests.

Creating the best contracts possible often presents a challenge. Fortunately, you do not have to undertake this endeavor alone. You could consult and work with an attorney knowledgeable and experienced in creating and litigating contracts to help you create agreements that protect your and your company’s interests.

Companies may be impersonal, but they are still made up of people. Regardless of the existence of contracts and agreements between the companies, the people involved may not abide by them through either a mistake or intention. A great deal of business litigation here in Miami and elsewhere ultimately centers on the breakdown of the relationships between the people who own or work in the companies involved.

In many cases, it would be advantageous to preserve the business relationships between the companies and perhaps the people involved as well for the sake of the future of the parties involved. This often means resolving disputes as swiftly and equitably as possible without attracting unwanted attention. For this reason, it never hurts to continue negotiating as long as possible before going into a courtroom.

Even so, entering into negotiations without first understanding all of the facts, information and legalities involved will probably not result in a fair and equitable resolution. Therefore, a thorough analysis of the situation, along with the strength and weaknesses of each party’s positions, could reveal a way forward. It could also help identify points on which a party may be willing to compromise and those he or she will not.

Undertaking this process would most likely go more smoothly by involving a knowledgeable business litigation attorney. Doing so would help Miami companies involved in disputes with the negotiation process while preparing to go to trial. It is important to prepare for any contingency during the dispute resolution process, and experience proves invaluable in these situations.

Winning a bid for a renovation or a new build here in the Miami area can be exciting. The prospect of building or maintaining the company’s reputation and working hard to make a profit could give owners a new reason to look forward to the workday. That is, until it comes time for a payment that does not come. Some contractors may be tempted to stop work until payment is made, but doing so wrongfully could end up leading to construction litigation.

In order to help ensure that does not happen, Miami contractors may want to include a provision in their construction contracts, addressing non-payment. Other than having the ability to file mechanic’s or construction liens, companies may also want to have the option of stopping work when they do not receive scheduled payments. If such terms are not included in the contract, or even if they are, using this option could prove problematic.

Contractors must proceed with caution when using a work stoppage when payments are not forthcoming. First, if the requirements outlined in the contract are not followed, it could constitute a breach of contract. Second, it may work best to start off by documenting the situation and the efforts made to receive payment, such as phone calls, emails, demand letters and more. These types of efforts may be worthwhile before stopping work in order to make sure there is a paper trail that justifies it.

Any company wanting to add this type of collection option to its construction contracts or contemplating stopping work would definitely benefit from discussing the situation with an experienced attorney first. A contractor may consider this a simple collection method, but in reality, it is part of the steps that could lead to construction litigation. It would obviously be better to be on the right side of a work stoppage, so understanding the pros, cons and risks of such a move beforehand could save on time, money and effort in the end.