Business Representative Law

Businesses rely on processes, organization, and written documentation. Successful businesses rely on a trusted legal advisor who will prepare and review their legal documents for accuracy and efficacy that ensures the ongoing success and security of their business.

Favret Carriere Cronvich law firm has experienced business lawyers, focused on helping individuals, businesses, and associations find solutions to civil disputes. Whether you’re a plaintiff or a defendant, we offer expert knowledge, insight, and experience in order to obtain fair, equitable, and expeditious resolution to any legal challenge.

We recognize the uniqueness of each client’s case and understand that for many issues, a favorable resolution can be achieved through effective communication and early negotiation.
Oftentimes pre-litigation strategy and negotiations can provide swift outcomes avoiding the potential operational and financial disruptions of a trial and appeal. However, some disputes require extensive litigation. If necessary, we will enter the courtroom with confidence, armed with the legal insight, industry knowledge, and experience to ensure our clients the best outcome possible. From simple disputes to complex commercial and/or financial disagreements, we provide the skilled representation you need for your situation.

Businesses throughout Louisiana rely on Favret Carriere Cronvich to support them in every aspect of their decision-making processes. From drafting and reviewing their business documents, to due diligence on the potential purchase of a business, to disputes of any kind, Favret Carriere Cronvich has become synonymous with success that’s dependable, affordable, and aligned with its clients’ interests and goals. We are here to help with any of your business representation matters in a personalized way to fit your needs.

Some of the areas in which Favret Carriere Cronvich support businesses include the following:

Contracts
As the cornerstone of any business relationship, contracts define your rights, responsibilities, and your options for dispute resolution.

Contract Drafting: Some common business contracts include sales agreements, real estate sale/purchase agreements, employment contracts, confidentiality and nondisclosure agreements, insurance contracts, and construction agreements. Contract reviews ensure understanding of the contract, prevent entering agreements that are unconscionable, illegal, and voidable, and protect you from future financial harm.
Employment Contracts: We offer advice in every area of employment contract law, both employer and employee, and can help you be sure you understand the legal document’s effects before it’s too late. We can also offer advice on your rights if your employer is trying to revise the terms of your contract.

Disputes
The realm of legal disputes encompasses a vast range of issues. In many circumstances, if there aren’t many factual or legal issues, avoiding litigation through early negotiation or mediation might serve the best interest of the client.

Breach of Contract: These disputes can range from failure to provide service or payment, consumer issues, disputes regarding goods, deviations from building plans, or even warranty claims or disputes arising after purchase or sale agreements.
Ownership: When multiple people share ownership in a piece of property, business or other thing, breakdowns in relationships can lead to disputes over each owner’s rights. Ownership, as defined by the law and jurisprudence, can depend on factors other than payment of deposits or ownership documents.
Partnership: Differences of opinion can quickly escalate to harsh disputes that can disrupt the very foundation of a business and affect everyone involved therein. From disagreements about fiduciary or statutory duties to disputes over governance or allegations of misconduct, discrimination, or fraud, an external perspective is necessary to provide a clear business-focused plan for resolution.
Real Estate: Everyone involved in real estate transactions or ownership thereof can be affected when disputes arise. Legal counsel is often advisable when facing especially touchy matters such as lease renewals, boundary disputes, or issues related to property management.
Non-Compete: These disputes vary from state to state, as can their enforceability. Typical non-compete covenant disputes arise from issues such as failing to inform employers of work with potentially competitive companies, sharing trade secrets, or giving competitors access to company materials. Non-compete clauses can present a variety of complexities that are best explained by a specialist in the area of workplace and employment law.
Insurance Coverage: If your insurance company denies coverage for a loss, the financial impact can be devastating. Common insurance coverage disputes stem from issues involving non-disclosure, material misrepresentation, and avoidance; validity and scope of ‘blanket’ circumstantial notifications; and waiver, affirmation, estoppel, and reservations of rights.
Collections: Even the most well established, defined, and controlled credit systems will encounter situations involving contested debts, late payments, and more. No business can avoid the bad apple customer.

Claims

Unfair Trade Practices (LUTPA): Defined as a practice or act that is deceptive, fraudulent, or causes injury to a consumer, unfair trade practices include actions that violate consumer protection laws. Typical examples of such practices include misrepresenting a product or service, falsely offering free gifts or prizes, not complying with product standards, unfair advertising, and deceptive pricing.
Business Property Damage: Property damage claims are often time sensitive, as lengthy legal actions can dramatically reduce the cost-effectiveness of any recovery. Common property damage causes include wind, hail, fire, flooding, fallen trees, lighting and plumbing failures.
Insurance: A business carries a variety of insurance coverage, such as Commercial General Liability (CGL), property damage, flood insurance, business interruption insurance, and workers’ compensation. When situations arise and you need those policies to provide coverage, insurance providers are not always as cooperative as you’d expect. Louisiana legal statutes discourage, and in some cases, penalize insurance providers who do not provide the coverage their policy promises in a timely manner.

Agreements

Operating: A unique combination of membership agreements, operating agreements identify and plan for contingencies that could lead to difficulties in the future. Using a form/template agreement can cost you money in the long run because it’s not tailored to your specific business, so it can leave out terms or clauses that are critical to your unique business needs. Working with a knowledgeable lawyer ensures your operating agreement is a fit for your business, and sufficient for protecting your business long into the future.
Buy-sell: Often called “buyout agreements,” buy-sell agreements clarify what happens when a partner leaves a business due to death, disability, or departure. Important elements of a buy-sell agreement include triggering events, mandatory vs. optional purchase guidelines, purchasing rights, and purchasing price.
Non-Compete: Also known as “restrictive covenants,” non-compete clauses may restrict your ability to work for a competitor, or work to discourage clients, colleagues, or suppliers from following you to your new employer. If you are an employer looking to draft or enforce a non-compete agreement, we can help ensure they are implemented properly or quickly enforced.
Purchase: Also referred to as “asset purchase agreements,” or “APA’s,” purchase agreements define the parameters of the sale and purchase of a company’s assets. Items considered assets can include inventory, furniture, fixture, equipment, plant and machinery, stock, contracts, premises, know-how, intellectual property assets, and goodwill. Asset purchase agreements allow for selecting specific elements of a business to be purchased but are subject to each asset’s rules for use and/or transfer. In addition, purchase agreements can be drafted to avoid unexpected liabilities.

Business Formation/Purchase

Corporate Formation: Legal counsel assists business owners in understanding their corporate options, benefits, and risks when creating a company. There can be many benefits of certain corporate structures, such as a C Corporation, S Corporation, and a Limited Liability Company (LLC). Experienced counsel can explain the many facets of compliance such as local licenses, permits, leases, and government oversight of specific industries (e.g., food manufacturing, medical offices, retail, hospitality, construction, and property management).
Buying or Selling a Business: For those considering buying a business, knowledgeable legal counsel can help you explore the various factors that impact the type of business you might purchase. For sellers, we understand the potential complexity of your organization, and offer a proven program of preparation, valuation, and presentation of your business that maximizes its attractiveness to buyers.
Mergers and Acquisitions: Mergers are the joining of two separate companies through conglomeration, horizontal merger (same industries), vertical merger (separate industries), product extension, or market extension. Acquisitions occur when one company purchases another through stock or asset purchases. Legal counsel is a must to ensure proper attention is given to due diligence, corporate governance, antitrust, and taxation considerations.
Due Diligence: Defined as the required investigation and evaluation of a business, legal due diligence ensures that the investment in or purchase of a business is in the best interest of the investor or buyer. In other words, due diligence is the process that ensures you are buying what you believe you are buying. Legal due diligence investigates business, intellectual property, and accounting. Properly executed, legal due diligence clarifies a company’s obligations, confirms a company’s value, identifies potential issues, and strengthens a negotiating position.
If you are in need of a business lawyer and legal partner, please contact us for a free consultation.

FAQs

Why should every Louisiana business have a lawyer?

As stated best by one of our clients, a business lawyer can serve as your business partner. Your business lawyer will assist with critical operations, protecting your business, and serving as an outside advisor when a business owner needs help with decisions.

How do I sell my Louisiana business?

In Louisiana, selling a business can be a fairly simple task. For example, if your business is an LLC, you can sell all or part of your membership interest, or you can sell the business itself and/or its assets.

What if I dissolved my Louisiana business and a subsequent lawsuit is filed?

This is a troubling area of law. If you dissolve your LLC incorrectly, you will likely be held personally responsible if you get an unfavorable judgment in the underlying action.

Are noncompete agreements enforceable in Louisiana?

Yes. If your business properly drafts a non-compete agreement, Louisiana courts will enforce the agreement and order the violative acts cease. Non-compete agreements can extend as long as 2 years.

Can a contract require mediation or arbitration to resolve a dispute?

Yes. In fact, many types of agreements do require so with the idea that quicker resolution will occur.

How long does my business have to recover unpaid invoices in Louisiana?

Louisiana law permits businesses to recover money for services up to 3 years from date of the invoice. In addition, attorney fees and costs are recoverable. If your business is trying to collect under a contract, the law permits 10 years for you to collect. However, the general rule of thumb is the longer you wait, the harder the recovery.

Are verbal agreements enforceable in Louisiana?

Yes. In fact, this is generally the cause of most legal disputes. Written agreements and written memorandums can reduce the likelihood of disputes.

How do I respond if my insurance company denies our business insurance claim?

Insurance contracts are very complex. So much so that their interpretation and application can seem very difficult. If your insurance company denied your insurance claim, they should have submitted a very detailed letter outlining its reasons and/or applicable exclusions.

Can a business operate without an operating agreement?

Yes. However, when responsibilities, obligations, and disputes arise, a business with an operating agreement will be significantly less complicated.

How is loss of use or business interruption damage calculated?

In Louisiana, if your business is damaged and has business interruption coverage, your insurance company will ask that you provide a calculation of your claim. In general, your accountant should be able to calculate your damages based on historical records. Also, the insurance companies should have a generally accepted accounting method for calculating damages.