How to Choose a Great Business Lawyer for Your Business: My Top Ten Tips

Conventional wisdom (and many lawyers) will tell you that, if you’re a business owner or manager, you will get yourself in trouble if you don’t have a good business lawyer. But when I hear this, I view this as somewhat of a negative statement, which frankly annoys me. I assume that smart business people do not want to be belittled and told that, they if they don’t have a lawyer, they will be too naive or inexperienced to avoid pitfalls.

Another way of saying this is that I personally hate doing anything to move away from something. I much prefer to make choices that allow me to move towards perceived advantages of my actions. So I address my clients accordingly.

So with this in mind I will rephrase the primary benefit of having a great lawyer by your side as follows: you will make more money. You should thus view a business lawyer as your partner who will help you make the choices that will improve your business and drive your bottom line upwards.

Now, if you are looking for a lawyer or are not happy with your present lawyer, how do you choose a great business lawyer. But first a definition. What is a business lawyer? I personally distinguish a business lawyer from a corporate or commercial lawyer. To me the business lawyer in the classic sense of the term denotes the classic lawyer-client relationship where the lawyer is more than someone who cranks out paper. I define the business lawyer as your quasi business partner or confidante. Someone you can confide it, who can solve your problems, understand you and help you grow.

Now Here are my TOP 10 TIPS to choosing a GREAT BUSINESS LAWYER, not in any order of importance.

10. Don’t assume you need a big blue chip firm. I come from several big blue chip law firms. They do great law and sometimes you need the “brand” or “label” of the big law firm next to you, for instance if you’re going public. But for more routine work, you don’t need such a firm. They are expensive and comprise many layers. So for you to deal with the top dog, you will be paying up to $1,000 per hour, or more. If your budget is one quarter of this, you will mostly be dealing with a junior associate who will not have the business experience you are looking for. It really depends on your needs, and your budget.

9. Don’t focus only on the billable hour rate. If you’re hesitating between someone who costs you $250 per hour and someone else at $350 per hour, don’t make your decision strictly on cost. What matters are two things: first what the final bill will be and, second, what value who will have received. The hourly rate is a red herring. What is the point of asking someone to do a job for you at $250 per hour if the person needs 40 hours for the job where the other lawyer at $350 per hour only needs 20 hours? Particularly if the other lawyer can do a better job for you. Billing policy is too much of a thorny and elaborate issue to address in a few lines. My point is simply that the hourly rate is not the be all and the end all.

8. Look for someone you would be happy to have a drink with. If your relationship with your business lawyer is going to be successful, you need to connect with him (her) on a personal basis. It is to your advantage to let your lawyer into your life as a quasi-friend. For this to happen there must be personal chemistry.

7. Look for business experience. If your business lawyer is going to advise you on your business, it is trite to say that having business experience is a must. Again it goes to the difference between dealing with a junior associate just out of school and someone who has real practical hands on business experience.

6. Look for someone open to a fixed fee arrangement. No one I know wants to retain a lawyer not knowing what the final bill will be. While this is often difficult for a lawyer to estimate, he (she) may be open to a flexible or fixed fee arrangement. And he (she) should be able to give you at least a good idea on the fees.

5. Look for a deal maker not a deal breaker. In any business deal, there can be dozens of reasons why the deal can’t work or why the agreement is not right. You don’t want a lawyer that throws unnecessary obstacles to making the deal work. It takes a practical approach. It is all about business risk and your lawyer should give you the pros and the cons and provide advice rather than blocking the deal.

4. Think of your business lawyer as your part-time VP legal. Some business lawyers are open to retainer arrangements where they will agree to act as your part-time VP legal at a lower cost than hiring a law firm. A lawyer could for instance offer to work a certain numbers of days per month for you at a fixed fee. It could save you money and help you grow your business with a smart person on the inside who gets to understand your business inside out.

3. Find someone with good business connections. Getting things done in this world often requires a good business network. Having access to this through your lawyer is invaluable.

2. Find a people person. If you want your lawyer to make things happen for you, he (she) will need to be someone who does not antagonize everyone around him (her). Having someone who relates well with other people can be a key to making something work.

1. Think bottom line. Lawyers cost money but I submit this should not be your first thought. What you should be thinking about is whether by spending say $1,000 your lawyer can help you generate $2,000. If so, the lawyer is not a cost. He (she) is a co-generator of a rate of return of 100%. If you think about it that way and your lawyer delivers, the cost will not be so bad to digest.

With these elements, you will be in a position to make the best decision for what works for you.

Terminating an Agency Agreement – Breach of a Commercial Agency Agreement – Compensation for Agents

PJ Pipe and Valve Co Ltd v Audco India Ltd [2005], the Court ruled that damages for a breach of a commercial agency agreement should be assessed on a flexible basis according to the particular facts of each case.

The claimant, PJ Pipe, is an agency in the petrochemicals industry, promoting and selling products in this industry. The defendant, Audco, is based in India and manufactures valves some of which are used in the petrochemical industry.

Audco hired PJ Pipe as their agent and entered into two agreements with them. In 2001, they entered into an Agency Agreement granting PJ Pipe the right to sell products as its agent in Nanhai (the “Nanhai Agreement”). In 2002, the two parties entered into a general exclusive agency agreement which gave PJ Pipe exclusive rights to represent six named UK contractors for a period of two years expiring on 31 December 2003 (the “Exclusive Agreement”).

In September/October 2002, Audco breached the Exclusive Agreement by employing an alternative UK agent and by purporting to terminate the Exclusive Agreement with PJ Pipe before the expiration of the term of the Exclusive Agreement.

PJ Pipe accepted the breach and commenced proceedings against Audco for commission and damages under the two agreements.

Regulation 17 of the Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053, , provides: ‘(6) . the commercial agent shall be entitled to compensation for the damage he suffers as a result of the termination of his relations with his principal. (7) For the purpose of these Regulations such damage shall be deemed to occur particularly when the termination takes place in either or both of the following circumstances, namely circumstances which- (a) deprive the commercial agent of the commission which proper performance of the agency contract would have procured for him whilst providing his principal with substantial benefits linked to the activities of the commercial agent; or (b) have not enabled the commercial agent to amortize the costs and expenses that he had incurred in the performance of the agency contract on the advice of his principal.’

The case concerned a number of issues, for instance, whether the claimant was a commercial agent within the meaning of the Commercial Agents (Council Directive) Regulations 1993, SI 1993/3053 (see above) and the approach to be taken in the calculation of the amount of compensation, if any, arising under Regulation 17 of the Regulations. The arguments centred on whether the approach of the French courts should be adopted whereby the level of compensation was fixed as the global sum of the last two years’ commission or the sum of two years’ commission calculated over the average of the last three years of the agency contract, although the court retained a discretion to award a lesser sum.

PJ Pipe argued that a 5% commission rate should have been awarded as this was the standard commission rate in this industry. Audco contended that there was no such standard commission rate but rather the commission rate depended on a number of factors which would reduce the rate to 3.5%.

The Court concluded that:-
the “rule of thumb” commission level in the oil, gas and petrochemical supply business is 5%;
to reflect commercial reality, the 5% figure is not immutable and will be fact sensitive to the relevant case, particularly when either low or large value orders are involved;
for small amounts of work undertaken late in the day, the commission rate would be 4.5%;
where PJ Pipe had simply “opened the door” for Audco in Nanhai the commission rate would be 3%;
PJ Pipe was a commercial agent for the purpose of The Commercial Agents (Council Directive) Regulations (“the Regulations”) as PJ Pipe played a crucial role in effecting introductions, persuading contractors to deal with Audco and assisting with quotations and queries;
in accordance with the Regulations, the Court should gauge the loss to PJ Pipe by the termination of the agency and avoid any double counting;
the Court need not confine itself to the French two-year tariff approach when assessing loss (the global sum of the last two years’ commission or the sum of two years’ commission calculated over the average of the last three years of the agency contract); and
PJ Pipe was entitled to compensation of $118,518.60 under the Regulations as well as damages for loss of commission.
It is likely that Audco will appeal this award.

If you require any advice on drafting or termination of agency agreements, please contact us at [email protected]

© RT COOPERS, 2005.

This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.

Asbestos Mesothelioma Legal Information and You?

Facts you need to know regarding asbestos mesothelioma legal information? Asbestos is classified as a naturally sourced mineral. It’s been utilised for many years for assorted reasons such as in building components, small appliances, insulating materials and vehicle components. It’s used in shipyards, manufacturing plants, railroads, industrial facilities as well as in other places. It is known as extremely resistant against deterioration and is a great insulator next to high temperature.

However, asbestos has some properties that make it harmful to any person handling it. It has been known to cause of various cancers, such as lung cancer and mesothelioma. The latter is a rare form of cancer, also known as asbestos cancer. The mesothelium is the lining of some cavities and organs. The mesothelia most affected by exposure to asbestos are those of the heart, lungs and intestines.

According to statistics, Mesothelioma kills about 3000 people annually. This kills 3% to 5% more males than ladies. This is mainly because men constitute a larger portion of the workforce than women. This cancer also has a latency period. It takes a long time to develop, sometimes even decades.

Individuals with Mesothelioma have numerous legitimate options to obtain settlement. Affected persons are encouraged to file lawsuits for compensation. There are two types of asbestos cancer lawsuits: personal injury and wrongful death. In the former, a person with mesothelioma cancer files a claim for damages, ranging from loss of wages, past and present medical expenses and pain and suffering. In the latter, survivors of a deceased victim of this cancer may file a wrongful death claim, for the premature death of their kin. The claim covers earnings, companionship, protection as well as treatment providers. In the US, regulations pertaining to these lawsuits differ from one state to another.

For many years, companies that used asbestos never educated their employees on the risks of dealing with this well-known carcinogen. Consequently, many employees contracted diseases due to overexposure, while companies got away with their negligent behavior. Today, however, things are different. Persons that worked in such companies can now file lawsuits seeking compensation, even though they no longer work there anymore. Compensations from such claims are large enough for the patient and their family as well.

In addition, the US government protects people with disabilities. Patients suffering from Mesothelioma cancer are eligible for disability compensation. They are able to secure compensation by submitting a social security disability lawsuit claim, seeking financial help. They may also pursue a similar disability claim privately with an insurance company, through their employer’s insurance policy, or an existing life insurance policy. In some instances, health insurance should provide monetary compensation to help offset some of their medical costs. In the event the insurance company declines to do so, one may file a lawsuit for unmerited insurance practice.

It is advisable to seek the services of a lawyer for asbestos mesothelioma legal information who is well acquainted with similar lawsuits and who is able to work around the legal intricacies of such cases. Victims of this disease no longer need to suffer unnecessarily as there are many legal options available to them now.

Copyright (c) 2010 Daniel K Voyles

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