Small businesses are not immune to the current economic troubles.  Unfortunately many have had to make the difficult decision to downsize staff in order to keep the business open.   Terminations or lay offs are uncomfortable for all parties involved.  How you handle a lay off can have a significant impact on your bottom line, however.

What is a severance package?

A severance package is something more commonly associated with highly paid executives at large corporations.  Many small businesses opt to use them as well to foster goodwill.  A severance package is something put together by an employer that usually includes compensation and continuation of benefits for a period of time.  It may range from two weeks of pay plus accrued vacation to six months of pay and a year of health insurance.

Why provide severance?

The primary benefit of offering a severance package is usually that the former employee must sign a separation agreement in order to receive the severance pay under which he or she waives any claims they may have against the employer.  This could protect the employer from a potential lawsuit in a very direct way.  Indirectly it also avoids litigation because the employee is likely to leave with less ill will towards the employer.

How do I provide a severance package?

If you decide to lay off or terminate an employee and are interested in providing some sort of severance package, it is important to contact an attorney to draft the agreement for you.  There are specific guidelines that must be followed in order for an employee to validly waive potential claims against an employer.  The attorneys at Twin Cities Law Firm have extensive experience working with contracts like severance agreements.  Retain us today to work with you to prepare a fair severance package that also protects your business.  Planning ahead can save you the costs of future litigation.  Call attorney Aaron Hall at Twin Cities Law Firm today.

Federal laws regulate how companies can collect debts from consumers.  The laws are specifically targeted towards consumers - they do not include debts for businesses. Collectors are limited in how they can contact you to collect debts too.  They cannot harass you or intimidate you while trying to collect on a debt.  The law provides that you can request the debt collector not contact you.  The request must be in writing however, and it does not preclude the collector from contacting you to let you know it will be filing a lawsuit against you.

Collectors also cannot misrepresent their plans for collecting a debt.  For example, they cannot threaten to garnish your wages unless they have a judgment and are entitled under the law to seek garnishment.  They cannot represent documents as legal court documents if it is not accurate.  They also cannot contact third-parties like your employer about your debt other than to obtain basic information such as your address.

Fair Debt Collection Lawyer

If you believe a debt collector has violated the law, you may be entitled to take legal action.  You can seek damages for lost wages or medical bills incurred as a result of the debt collector’s actions.  A judge may award up to $1,000 in damages even if you cannot demonstrate concrete medical or wage loss damages.

Keep in mind that even if a debt collector violates the law and harasses you, your debt still exists.  You can sue for damages, but the original debt is not erased.  You may wish to hire the attorneys at Twin Cities Law Firm to investigate whether you have a claim for a violation of the Fair Debt Collection Practices Act.

Hourly with Retainer

Probably the most common attorney’s fee agreement involves an hourly rate.  The attorney is paid a set amount per hour of work and usually tracks time in tenths of an hour.  The amount billed per hour varies greatly depending on a person’s experience, expertise, and qualifications.  It also may depend on the size and complexity of the case involved.

A retainer is a set amount paid in advance for legal fees.  The amount is held in a trust fund.  As you incur legal bills, the lawyer withdraws the amount owed from the prepaid retainer.  If you fire the lawyer of settle the case and there is still money left from the retainer, the lawyer must return it to you.

Contingency

In a contingency fee arrangement, the lawyer accepts a percentage of the final recovery for his fee rather than a set hourly amount.  The lawyer usually assumes the risk of losing - meaning if there is no recovery, the attorney does not get any fees.  The percentage for the contingency fee may vary from 20% to 40%.  Often the percentage is dependent on when the case resolves, reflecting the amount of work the attorney has to put in to resolve the case.  Whether an attorney will accept a case on contingency depends significantly on the level of risk involved and likely recovery.  Usually only personal injury cases are handled on a contingency fee basis.

Flexible Fee Structures

There is no question that litigation can be very expensive.  That is why it is crucial to find an attorney you trust to keep your goals and budget in mind.  The experienced lawyers at Twin Cities Law Firm will work with you to find a litigation strategy and budget that fits your needs.  You do not have to sacrifice quality representation.

Parties: The parties to litigation are just the different people, companies, or entities that are plaintiffs, defendants, intervenors, etc. in the lawsuit.

Plaintiff: The plaintiff is the person, company, or entity that brought the lawsuit.

Defendant: The defendant is the person, company, or entity that the lawsuit has been brought against.

Third-Party: A third-party can be a plaintiff or a defendant.  This is another person, company, or entity brought into the litigation by the plaintiff or defendant.

Discovery: Discovery is the process used by lawyers in a lawsuit to find out the facts and background for the case.

Interrogatories: Interrogatories are written questions that the parties in a lawsuit send to other parties to find out more about the case.  It is an opportunity to find out what the other side’s arguments or versions of the facts will be.

Requests for Production: Requests for Production are written requests the parties send to each other to request copies of important documents or evidence.

Deposition: A deposition is a recorded question and answer period.   The witness takes an oath to tell the truth.  The attorneys then ask questions while a court reporter records all the answers.  Depositions are somewhat like a trial except that the judge and jury are not present.

Motion: A motion is a request that the attorneys or parties make of the court.  A lawyer might make a motion for the court to force or compel a party to answer discovery, for example.

Summary Judgment: Summary judgment is a special kind of motion.  One of the parties asks the court to determine that a trial is unnecessary and to find for that party.

Contact a Minnesota Litigation Lawyer

Litigation involves many rules, procedures, and terms that are unfamiliar to the average person.  If you need help with a lawsuit, contact an experienced litigation attorney at Twin Cities Law Firm.

Minnesota Litigation Lawyers

There are many situations when you may be involved in litigation without insurance coverage.  The experienced attorneys at Twin Cities Law Firm can help you with a variety of litigation cases.  We have handled lawsuits such as:

• Landlord/tenant disputes
• Partnership dissolutions
• Conciliation court appeals
• Breach of contract cases
• Tax disputes
• Employment law claims
• Insurance lawsuits
• Real estate disputes

If you have been served with court documents, it is important to keep in mind that there are strict guidelines for responding to a lawsuit.  If you do not answer within the time provided, you could be considered in default.  The other side can then pursue a default judgment and collect whatever remedy it sought even though you never appeared in the lawsuit.  If you have been sued or think you will soon be involved in litigation, contact us today.  The lawyers at Twin Cities Law Firm are experienced litigators who can help you through the court process.

With the advent of the internet, it is easy to find hundreds of samples of legal forms like contracts online for free.  Some wonder why they should spend the money hiring an attorney to draft a partnership agreement, for example, when they can just as easily fill in the blanks on a form.  If you end up in litigation later, you may regret that decision.

A well drafted contract is key to the successful operation of your business and your business relationships.  A contract provides the basic “rules” for operation.  A Minnesota lawyer can help you craft a contract specific to your situation that takes into account how Minnesota courts interpret contracts, how Minnesota laws regulate contracts, and what standard business practices are in the community.  An attorney has the experience to predict potential problem areas and draft the contract to avoid such problems.

Potential Contract Problems

One of the most common problems with contracts is the use of vague, ambiguous, or unclear language.  Sometimes contracts are so laden with “legalese” that it is virtually impossible to tell what the parties actually intended.  This is not an effective contract.  Perhaps more importantly, it is one that will be difficult for a court to enforce.  Courts will construe unclear language against the party who drafted the contract.  Needless to say, that can have expensive consequences for unwary small business owners.

Another problem is the absence of important provisions.  How do you terminate the contract?  How do you assess damages for breach of contract?  Can the contract be assigned?  These are just a few considerations that may not appear in a sample form contract.  A Minnesota contract attorney can discuss options with you to make sure you cover all foreseeable situations.

Litigation

Sometimes even the most carefully crafted contracts become the subject of litigation.  It is important to choose an attorney with the experience and credentials to guide you through litigation as efficiently and cost effectively as possible.  Contact the attorneys at Twin Cities Law Firm, LLC to assist you with all your legal needs.  Whether drafting a contract or responding to a lawsuit, we can help you with your legal concerns.