with Claudine Halpern
I have received many comments on last months article, Making it Legal, so I will take this opportunity to dig deeper into some of the issues that I spoke about:
- First, I am not a lawyer; I never claim to be a lawyer.
- Second, I use the services of lawyers when I need them.
- Third, I have no compunctions about going into court to collect monies owed to me.
That being said, let’s get to the nitty gritty of legalities and business as I’ve experienced it.
I believe that counting on lawyers and legal arguments to get paid is not the type of business that I want to be in or participate in.
There are firms that are built on the premise of lawsuits, mostly legal firms. I know a legal firm that buys unexecuted patents from inventors who have not been able to execute their ideas. They then scrounge the Internet to see if any firm is using anything that even has a whiff of their “Owned Patents”. They will then sue those firms, sometimes justifiably, and sometimes less than justifiably. The small firm has no choice but settle with the “Owner” be it in a single payment or ongoing upside. Large firms can fight and they have legal staff to cover these contingencies.
If you are a small business, you want to spend your time growing your business, in positive pursuit of more business, and better relationships. If you count on legal remedies to getting paid all the time, then good luck.
Now back to contracts and other agreements, a contract is only as solid as the contract signers’ willingness to pursue legal recourse. What does that mean, it means that if you can’t or won’t go through the legal recourse associated with a contract, it’s not worth much.
Many years ago, I was a Vice President at one of the BIG BOYS of the time. They announced a merger and asked me to stay on with the new firm and signed a contract with my new job duties, title, salary etc.
At the same time they requested that some people stay on through the merger and leave afterward, those people received contracts with guaranteed small bonuses at the end of the period.
After the merger was complete they terminated my employment, along with about 15 other people that I knew, without any reason. I felt that I was entitled to the guaranteed bonus, as I had stayed through the merger.
I contacted a lawyer with the intention of suing, after a single consultation I realized that pursuing the lawsuit may be great publicity for my lawyer, but bad for me, let me explain why:
1) I could not look for work while the lawsuit was pending as no one would hire me
2) I had to pay the lawyer up front
3) The BIG BOY had internal legal staff and had not lost a lawsuit yet
4) There was no guarantee that I would win
In the end, my decision was the right one; I founded my consulting firm and found business within 90 days. Three of the other people sued, it took two and half years, they each won $20,000. They all left the business, as no one would hire them. Yes they won, but lost more.
So, always have your legal ducks in a row, but work with people whose reputations you know and trust, if you can. If you don’t know or trust the reputation of the firm that you are working with, create a payment structure that mitigates your losses in a worst-case scenario.
Next Time: Selling to the BIG BOYS; Doing the Job, Managing your Reputation
and GETTING PAID
About Claudine Halpern
Claudine Halpern is a chameleon; she has worked in many different situations during her more than twenty-five years in business; as a management consultant, Claudine advised many of the major brokerage, insurance, and financial houses, completing more than fifteen major corporate initiatives during the past ten years. As a crisis manager for major corporations, Claudine successfully brought in projects and products that other firms would not touch. As a specialist in business and management consultancy, Claudine consults to emerging businesses across the spectrum.
email chalpern@theychgroup.com
http://www.linkedin.com/in/claudinehalpern
For more information, please visit Claudine's TNNW Bio.
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1 comment:
Claudine . . . you shared a key bit of wisdom here. Years ago I had a similar situation and received counsel from my attorney to the effect that there are some things you should just walk away from knowing you're entitled but getting recourse will be more damaging than restorative.
Sage advice. Keep up the excellent perspectives we all need to hear.
Thank you.
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