Atlanta Business Lawyer Blog

In my career as an Atlanta, Georgia construction lawyer, I have found that Georgia builders and contractors commonly rely on the one-year new home warranty, mandated by state law, to shield them from accountability for home construction defects. Unfortunately, many new homeowners are unaware that in Georgia, the one-year warranty period does not set a time limit on their ability to rectify Georgia construction defect issues. The fact is that homeowners can sue for compensation related to defects that are discovered after the warranty period has expired.

To ensure proper treatment for home defect issues, it is imperative to consult with an experienced Georgia Real Estate Construction Lawyer as soon as the defects are discovered. An effective strategy for fighting construction defects is to file a breach of construction contract claim. Breach of contract can consist of the builder or contractor not using the proper materials for the job, failure to build the structure to industry standards, poor workmanship on the project and incomplete work. The Georgia statute of limitations for claims involving breach of written contracts is six years, which in many cases is sufficient time for defects to surface. What is more, the statute of limitations only begins to run on latent defects when they are discovered or should have been discovered.

A lawyer qualified to handle Georgia construction breach of contract disputes can guide homeowners through the options for recovering financial losses already incurred and for obtaining monies to repair home defects. Builders and contractors frequently will try to convince homeowners that the one-year warranty period precludes them from having to make an effort to resolve the defects. In these cases the builder is mistaken. Nevertheless, consulting with an Atlanta, Georgia home defect attorney immediately is a prudent first step toward confronting the builder or contractor and the process of forcing the responsible party to correct any problems the homebuyer may have.

Continue reading "GEORGIA HOME CONSTRUCTION DEFECTS -- THE ONE-YEAR WARRANTY PERIOD EXCUSE BUILDERS USE TO TRY TO AVOID THEIR LEGAL RESPONSIBILITIES IS A BOGUS BUILDER TRICK – DO NOT FALL FOR IT!" »

In my practice as an Atlanta, Georgia lien attorney, I can assure you Georgia liens are an important tool that builders, subcontractors and suppliers use when a property owner is delinquent on payment for a construction project. As a Atlanta, Georgia Construction lien attorney, I have seen changes in recent years to Georgia lien laws that have had a dramatic impact on the outcome of payment disputes on construction projects. The changes include important benefits for all concerned.

Changes to the law include how a lien is filed, removal of a lien and enforcement of a lien. One important modification is that in Georgia, only a licensed Georgia attorney may file a lien. Some of the changes to the law are so subtle, that only lawyers specializing in Georgia construction law may be able to properly file a lien. As a result, property owners, contractors, subcontractors and suppliers should always seek the qualified counsel of a Georgia construction attorney to handle lien issues.

Benefits of the changes in the lien law include the following. Property owners can contest a lien by sending the contractor a “Notice of Contest.” After receiving the notice, if the contractor wants to proceed, then the contactor must file a lawsuit within 60 days. Failure to file within 60 days invalidates the lien. Another benefit to the property owner is that an expiration date now is required on the lien. The modified law states that contractors will receive a copy of a filed lien when a “Notice of Commencement” is issued and subcontractors and suppliers will be notified when the property owner has bonded out a lien.

Continue reading "A GEORGIA LIEN LAWYER MUST FILE A LIEN IN CONSTRUCTION PAYMENT DISPUTES" »

Over the past few years in my Atlanta, Georgia business law firm, I have found that causes of action for breach of contract are much more prevalent today than in recent history. As an Atlanta Business Litigation Attorney, I have seen this trend steadily increase and attribute it to both the current economic situation and to the fact that we live in a highly transactional society.

Contracts can be written or oral and others are merely implied, but they can all be valid contracts under Georgia law. The number of businesses that provide services to each of us on a business or personal level is staggering – lending and investment institutions, Internet service providers, hospitals, lawn care services, etc. We use contracts when we set up a Georgia business entity, buy or lease office space or hire employees. The list is endless. Thus, disputes and litigation of Georgia breach of contract cases is endless as well.

Business contracts are used to substantiate and clarify the commitment to an agreement between at least two parties or more. With the shear volume of contracts that we come in contact with, it is not surprising that legal claims for breach of contract are common. A breach of contract occurs when the promise made per a contract is not fulfilled. For example, a breach of contract exists when the service or product specified in the contract is not delivered, if payment for the service or product is not made in a timely fashion, or if there is a failure to complete or start the work specified in a contract.

When faced with a breach of contract, it is best to seek the counsel of an experienced Georgia business attorney who handles breach of contract disputes. An attorney will analyze the situation and pursue the most appropriate course of action. Once a breach occurs, the non-breaching party is usually freed from the contractual obligation. Georgia courts typically resolve these cases by awarding damages that make the non-breaching party whole, as if they had never entered into the contract. When money awarded by the court does not fully compensate for the breach, the breaching party may be ordered to fulfill the terms of the agreement anyway. If the breaching party is found to be intentionally acting in bad faith, the court may award attorney’s fees as well as punitive damages to the harmed party.

Continue reading "GEORGIA BREACH OF CONTRACT CLAIMS ARE ON THE RISE IN ATLANTA" »

As an Atlanta employment dispute attorney, I am quite sure I speak for most persons when I say that looking for employment is exceedingly stressful. Moreover, when an offer of employment finally comes in from an employer, it can be a whirlwind experience. Because the hiring process can be rushed for both the new employee and the company, many Georgia employment agreements are entered into without giving sufficient consideration to key factors. Unfortunately, not paying attention to the details of an employment agreement up front can be a big mistake in the long run.

In my Atlanta, Georgia Business Law firm, I have counseled clients on both sides of the table regarding Georgia employment agreement disputes. Oftentimes, these cases hinge on the circumstances under which the employment agreement was signed. When an employment disagreement arises, Georgia courts likely will take into consideration many factors surrounding the signing of an employment agreement. This is especially true concerning whether the employee was presented with the agreement before employment actually began. If an employer gives the employee an employment agreement before employment begins as well as ample time to review the agreement and consider the implications of signing, then it is more likely that the court will favor the employer and enforce the signed contract. The terms of employment should be presented before work begins and supplying the employee with a comprehensive contract will allow for fair “arm’s length” negotiations between parties.

Before signing any employment contract it is always wise to ask a Georgia Business Employment Contract Attorney to review the terms and conditions of the agreement. An experienced contract lawyer will be able to spot potential issues or areas that are lacking in the contract that might become a problem in the future. It is even more critical for an employee to retain a Georgia employment contract attorney if asked to sign an employment agreement after work has already begun. The courts do not typically tolerate this type of approach by companies, especially if the terms set out are not favorable for the employee. Examples are if the contract presented spells out a reduction in employee benefits or a change in remuneration.

Continue reading "GEORGIA EMPLOYMENT AGREEMENT DISPUTES, LITIGATION, AND RESOLUTION – UPFRONT DILIGENCE IS THE KEY TO AVOIDING LONG TERM PROBLEMS" »

The building, renovation, or repair of a home can involve great expense and stress, even when the project is going smoothly. But when issues arise with contractors over construction defects, the cost and stress of the project can spiral out of control. The resulting mess can ultimately lead to a lawsuit that does not always solve the homeowner’s issues completely. The Georgia Right to Repair Act of 2004 was created to protect homeowners and help them handle these types of construction disputes in a more cost effective and efficient manner. The Act attempts to get homeowners and contractors to work together to solve these disputes without Georgia construction defect litigation or arbitration in a Georgia forum.

The Georgia Right to Repair Act requires that the homeowner perform a series of tasks before seeking relief from the Georgia court system or through the Georgia construction arbitration process. While it is open to question that the Right to Repair Act Letter can be waived by the parties to a construction defect dispute, the general process is that homeowners are first required to inform the contractors in writing of the construction defects. After that, the contractors are allowed a chance to correct the defects. They may opt to fix the problem completely or partially, offer a monetary settlement in place of a fix, or a combine the two methods. Over a 3-month period, several communications are required that must fall within a specific timeline before a lawsuit or an arbitration complaint can be filed by the homeowner. If the contractor fails to respond to the initial notice, or if the settlement offered is inadequate or never executed, the homeowner may file a Georgia construction defect lawsuit or proceed with the Georgia arbitration process for resolution of the construction defect.

Most homeowners will not be able to perform these tasks adequately without the help of an Georgia construction law firm. Failure to comply with the complete series of requirements outlined in the Act will affect the homeowner’s ability to pursue a legal claim. Moreover, the failure to send a Right to Repair Act Letter can be used as an effective defense against defective construction claims. In effect, the steps required by the Right to Repair Act are best handled by an experienced Georgia Construction Defect Attorney who can protect the homeowner's rights and ability to file a claim.

Continue reading "GEORGIA CONSTRUCTION DEFECT ATTORNEYS NAVIGATE THE RIGHT TO REPAIR ACT ON BEHALF OF HOMEOWNERS" »

In my real estate litigation law firm, I wanted to make you aware that home sellers are required to disclose the home defects to any buyers or they could be held liable for failure to disclose defects when selling the home. Georgia law requires disclosure of defects on the “Seller's Disclosure Statement”, which is part of most sales contracts and incorporated into the contract. The seller of a home must disclose defects, which are not readily discoverable by the homebuyer.

Conversely, the homebuyer cannot just rely on the home seller to gain a full knowledge of the condition of the home they are purchasing. The homebuyer must use due diligence to inspect the home and discover and defects which could be reasonably discoverable upon a diligent inspection. Homebuyers are not required to discover latent defects or defects hidden by the home seller. When a homebuyer is tricked by a home seller into buying a home through fraud and misrepresentation, many causes of action may be brought against the home seller. Unfortunately, in today's real estate market where homes are hard to sell, our Georgia real estate fraud law firm is seeing more and more cases where the sellers of a home have engaged in fraud, fraudulent inducement, or misrepresentation of material issues in order to effectuate the sale of their home.

Continue reading "IN GEORGIA, THE SELLER’S DISCLOSURE STATEMENT IS PART OF PURCHASE AND SALE AGREEMENT" »

In my Georgia construction law firm, I recognize that for most people, buying a home is one of the biggest investments they will ever make, so when construction defects are found in a new home or renovation project, the issue can be devastating both financially, emotionally, psychologically, and more. In fact, stress and financial hardship are commonplace for the homeowner burdened with a defective dwelling. Homeowners often lose money on their investment since the property is worth less because of the defects. Our Atlanta construction attorneys refer to this situation as diminution in value. A home with construction defects not only generates less money when sold, but also is much more difficult to sell. Inevitably, homeowners will spend additional time and money to rectify construction issues or lose money on their investment when they sell their home.

Especially true today, it is not uncommon for builders and contractors to find ways to save money on construction projects. Although being cost-conscious does not always result in construction defects, it can increase the likelihood of such occurrences. Additionally, many builders and contractors customarily use subcontractors to complete building projects. Subcontractors are found on most job sites, but the builder or contractor often completes their work with minimal supervision so the quality of their work frequently goes unchecked. Moreover, even in cases where the subcontractor cuts corners to save time or money on a construction project, any resulting defects are still the legal responsibility of the builder or contractor. This is even true when the subcontractor knowingly and purposely hides defects from the builder or contractor. The subcontractor will still be legally responsible as well.

Georgia construction law very clearly states that the builder or contractor is directly accountable for any material defects in the construction project, regardless of who completes the work at the site. Because there is legal recourse for homeowners who discover construction defects, it is wise to consult an experienced Georgia real estate construction lawyer as soon as a problem arises to ensure that your interests are represented. And while many homebuyers who discover defects in the construction of their homes only seek the advice of a Georgia construction attorney once the defects are noticed and legal action is required, it is possible to protect yourself before construction begins by having a qualified real estate construction attorney draft a solid Georgia construction contract or Georgia purchase/sale agreement that will better protect your investment.
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Continue reading "ATLANTA REAL ESTATE CONSTRUCTION ATTORNEYS PROTECT AGAINST HOME DEFECTS AND SAFEGUARD YOUR INVESTMENT" »

In my Atlanta, Georgia Business Law firm, I have seen many instances of business owners that have suffered because of how their businesses were initially set up. When establishing a new business, or even when re-establishing an existing business entity, it is imperative to have legal counsel review the specific needs and circumstances of the business and draft the legal documents required by Georgia law. With a clear understanding of the structure and dynamics of the organization, a Georgia business attorney is able to determine the proper Georgia legal entity that the business should operate under and will file the appropriate documents with the Georgia Secretary of State to establish the entity. Per Georgia law, legal contracts and agreements will then be drafted that outline the relationships between business partners, and licensing and taxation issues will be reviewed. Addressing these matters up front is greatly beneficial in preventing or resolving any partnership disputes or litigation in Georgia courts.

In today’s tough economy, many people are starting their own businesses. But with the infiltration of online legal document services, it is easy for new business owners who may be strapped for cash to bypass using the services of a Georgia business attorney. Unfortunately, by their very nature, these online legal documents can cover only the most common legal issues and cannot begin to address the individual circumstances and requirements that ultimately face any business. These "e-documents" do not address specific Georgia business requirements and provisions. Relying solely on documents found through an online service may seem cost effective and quick at first glance, but the results can be disastrous. These documents are not legal advice and are not a substitute for an experienced Georgia business lawyer. A reading of the disclaimer from any of these "e-document" sites confirms that the provider of these "e-documents" has set forth these "e-documents" for information purposes only. Further, as you might guess, these "e-document" providers take no responsibility for the serious problems these "e-documents" cause or assist you when pressing concerns arise. As an Atlanta, Georgia business attorney, I have seen the countless problems these "e-documents" create. As a proprietor of a well-established Georgia business law firm, I find the sale of these documents untenable.

Continue reading "ATLANTA, GEORGIA BUSINESS LAWYERS – A NECESSITY WHEN ESTABLISHING A BUSINESS ENTITY IN GEORGIA" »

While each state has its own laws regarding operating agreements, Georgia business law does not specifically require LLCs to have a Georgia operating agreement. However, it is wise to draft one, since the operating agreement is arguably the one document that provides significant legal protection to members of any partnership or corporation. In my Atlanta, Georgia Business Law firm, I have seen many clients come to me with serious issues stemming from a failure to draft this agreement, especially in family run businesses. Neglecting to draft this document before or upon creating a partnership or corporation often results in costly and time-consuming litigation.

The Georgia operating agreement allows you to define the LLC’s financial structure and working relationships between members. Key items to be addressed and defined by the agreement are percent ownership of each member, duties and rights of each member, voting power of the members, allocation of profits and losses, the management model and rules for meetings and voting. Additionally, the operating agreement will include provisions that outline not only what will occur if the business is sold, but also what will happen if a member dies, becomes incapable of performing the stated duties, or wants to sell their share of the business.

Although an operating agreement in Georgia can be oral (for multi-party LLCs only), it is always best to prepare it as a formal written document. In Georgia, the preparation of a written operating agreement should not be overlooked for several important reasons. It will help limit misunderstandings between members, ensure that the business is run by the rules established by the owners (not by the default rules of Georgia statute) and it will protect the company’s limited liability status (by preventing "piercing the corporate veil"). Protecting the company’s limited liability status is especially important if one person owns the LLC. With a properly drafted operating agreement, the one-person LLC can easily defend its status as an LLC in court proceedings, and the owner can avoid personal liability issues.

Continue reading "GEORGIA OPERATING AGREEMENTS ARE CRITCAL IN PROTECTING LLC BUSINESS PARTNERS" »

As a Georgia property title lawyer, I know that under Georgia law property title law, individuals that do not hold legal title to land may take ownership of land legally under several scenarios. For many non-lawyers, this is hard to understand or believe. Georgia property owners need to be made aware of these types of situations in order to protect their right of ownership. Georgia law offers a number of ways that real property ownership can be transferred. Under Georgia law, adverse possession, prescriptive title, and color of title, are commonly referred to as “squatters rights.” Georgia law states that an individual who occupies a piece of land, but who is not the legal holder of the title, may gain ownership under certain circumstances after 20 years, or under “color of title” after 7 years. Under Georgia law, “Color of title” is evidence that the individual has a legal claim to property, although that claim has a defect. Examples are when the individual claiming ownership has a deed, but the deed is deficient or when two individuals hold deeds to the property simultaneously.

Despite what the statute of limitations is (7 or 20 years), the individual occupying the property usually must truly occupy the property continuously for the specified period of time. One possible exception to this rule is referred to as “Tacking.” The individual must also occupy the land in an open manner (not hidden from the real owner) and the individual must be using the property exclusively. Common scenarios are the use of a pathway between houses that the “squatter” has improved with a brick-paver pathway. If the real titleholder did not contest the use and improvement of this piece of land, because that owner never realized that the property fell within his property line, then the individual who made the improvements and used the pathway could take possession under the law. Another example is if a church allowed a parishioner to occupy a vacant home on church property, free of rent for over 20 years. That individual could file for adverse possession and attempt to take legal possession of the property.

In both these cases, regardless of the statute of limitations, the individuals laying claim to the land would have to have used the land continuously for the specified period. Because the individual occupying the property must do so without hiding their intention, most landowners do not realize that a problem exists and that the individual is squatting on the land. The issue usually arises when it is time to sell the property and the title is being checked. Unfortunately by this time, it is possible that the 7 or 20-year statute of limitations has run out and the land could be transferred to the squatter legally. For this reason it is imperative that boundary lines are checked when any property is purchased. Also, for vacant land, it is important to have the property checked periodically to move off any squatters. A qualified Atlanta, Georgia Real Estate lawyer can work to provide protection from these types of situations.

Continue reading "GEORGIA STATUTES DICTATE ADVERSE POSSESSION, PRESCRIPTIVE TITLE, AND COLOR OF TITLE -- “SQUATTERS RIGHTS” ARE ALIVE AND WELL" »

The majority of the businesses in the United States are close corporations. Georgia close corporations are classified as having a maximum of fifty shareholders, no publicly traded stock and active management by shareholders. Because close corporations usually employ the shareholders, these companies generally have a more relaxed management style. The downside is that this management model puts the minority shareholders in a situation where they quickly can be faced with “squeeze out” or “freeze out” tactics, that typically result in termination of employment with the company.

Often times, income from employment is the most valuable stake that these minority shareholders have as shareholders. Shares held have no value on the open market. That, coupled with the fact that majority shareholders are unlikely to buy the minority’s shares at a fair price, leaves the minority shareholder with little or nothing upon being terminated. Georgia business law statutes provide protection for minority shareholders faced with this situation. Just as in ordinary corporations, all shareholders in close corporations have the right to inspect the documents pertaining to the company, including, but not limited to, bylaws, shareholder meeting minutes, documentation of actions taken outside of meetings and resolutions related to share classification. In the case of wrongdoing, documents discovered during inspection can provide the required evidence to file a lawsuit against the company.

Additionally, Georgia law states that the majority shareholders have a fiduciary duty to the minority, allowing for minority shareholders to sue for dissolution of the close corporation when these duties are not fulfilled. These suits can be filed if the majority shareholders have acted, are acting or are expected to act in an illegal, fraudulent, oppressive or unfair fashion toward the minority. Minority shareholders also can sue for fair valuation of their shares. Whatever the circumstance, it is critical to seek the counsel of an experienced Atlanta, Georgia Business litigation attorney to resolve shareholder complaints. Having a properly drafted operational agreement can prevent these types of disputes from developing, but if conflicts do arise, a qualified lawyer will ensure that all possible legal avenues are pursued to help the minority shareholder receive fair treatment and compensation under Georgia law.

Continue reading "GEORGIA LAW PROVIDES PROTECTION FOR MINORITY SHAREHOLDERS IN CLOSE CORPORATIONS" »

In my Atlanta, Georgia Business Law practice, I have worked with clients who have taken their Georgia business litigation and disputes to the court system for resolution, and others who have gone through the process of arbitration. Many times, a business contract specifically states that all disputes must be resolved through arbitration, yet unless contractually mandated, arbitration is often overlooked. It is important to note that while both methods have their advantages, arbitration is often the fastest and can be very cost effective.

In Georgia it can take a minimum of a year for a case to go to trial, while the date of the final arbitration hearing can be set much sooner. Disputes are often resolved just a few months after the arbitration process is initiated. The disadvantage to arbitration is that the parties named in the dispute will pay for the time of an arbitrator. Arbitrators belong to arbitration associations that are usually private businesses, and fees for an arbitrator can cost several hundred dollars per hour. The court system, on the other hand, is funded by tax revenue and requires that the parties pay only filing fees.

Besides the timing advantage, another strong point to arbitration is that the parties can choose the arbitrator that will preside over the case. Arbitrators have been trained in specific technical areas of the law and can be picked with this in mind. Judges in court proceedings cannot be picked and, although they have a broad knowledge of the law, the judge assigned to a case may not possess proficiency in the area that the dispute covers. In complex business disputes, having the option to choose a knowledgeable arbitrator will ensure that all parties are treated fairly under Georgia law.

Continue reading "THE GEORGIA ARBITRATION PROCESS CAN BE MORE EFFECTIVE THAN COURT TRIALS" »