Atlanta Business Lawyer Blog

As a Corporate business Lawyer in Atlanta, Georgia, I am well aware 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 Shareholder Oppression, also commonly referred to “squeeze out” or “freeze out” tactics. When this situation goes unchecked by the Minority Shareholders, this typically results in a negative impact on the minority shareholders and can lead to their termination of employment with the company.

When employed with a Close Corporation, income from employment and the input your Close Corporation shares allow the shareholder, is likely the most valuable stake that minority shareholders have. 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 shareholders with little or nothing upon being terminated.

The good news is that minority shareholders in Close Corporation have significant rights.
There are legal protections in place, which Close Corporation Shareholders can use to defend their rights. Many are as follows:

• Retaining an Atlanta Corporate Shareholder Attorney is the best route to protecting your Close Corporation interests.

• In the alternative, Business Law statutes in Georgia do 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, shareholders 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.

• Georgia law states that the majority shareholders have a Fiduciary Duty to the minority shareholders, allowing 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 an Atlanta Corporate Business Attorney experienced in Shareholder Actions. Having a properly drafted operational agreement can prevent these types of disputes from developing, but if conflicts do arise, an Atlanta, Georgia Corporate Lawyer with experience in Corporate and Shareholder proceeding will ensure that all possible legal avenues are pursued to help Minority Shareholders receive fair treatment and compensation under Georgia Law.

Continue reading "GEORGIA CORPORATE ATTORNEYS PROTECT AGAINST MINORITY SHAREHOLDER OPPRESSION (“SQUEEZE OUT”) (“FREEZE OUT”) TACTICS USED ON MINORITY SHAREHOLDERS " »

As a Construction Lawyer in Atlanta, Georgia, I have noticed the poor economic climate is forcing more and more people to take desperate measures. As an Atlanta, Marietta, Buckhead and Sandy Springs Commercial Litigation Lawyer, I have seen an increase in claims by construction professionals against homebuyers who are backing out of real estate construction deals. In many of these cases, the homebuyers are looking for ways to blame construction professions for poor quality and workmanship so that they can walk away from the contract and not pay at all, or pay a lower price for work already done.

The following is a list of items that you may have received or experienced that should be considered a possible indication that the homebuyer is considering backing out of the construction contract:

• documents on behalf of the homeowner from a Georgia lawyer regarding pricing or quality of the work performed

• a Notice of Claim regarding your contractual obligations

• a written offer of settlement from the client that changes the terms of the original contract

• a proposal to inspect the building site

• continuous complaints about the quality of work

• failure to pay in a timely manner, for any reason

Continue reading "ATLANTA CONSTRUCTION LAWYERS ISSUE ALERT! MAKE CONSTRUCTION INDUSTRY PROFESSIONALS BEWARE - WATCH FOR THESE TELLTAIL SIGNS YOUR NOT GOING TO GET PAID BY THE HOMEOWNER-PURCHASER " »

As a well-known Atlanta, Georgia Partnership Lawyer, I handle many cases involving Georgia business partnership conflicts. One of the most common scenarios is for one partner to be saddled with running the business entity single-handedly. This single-handed effort by one partner is usually in stark contrast to the terms and intent any partnership operating agrehttp://www.atlantaestateplanninglawyer.com/mt-static/images/formatting-icons/link.gifement, which governs the duties and responsibilities of the partners. This is an extremely destructive situation for the partner who is trying to maintain the business. As this partner attempts to shoulder all the responsibility for the business; including business debts, liabilities, day-to-day business problems, the financial position of all the business partners suffer. In due course, all partners in the business are on the path to failure.

Surprisingly, many business owners do attempt to struggle alone through this type of situation due to a personal sense of responsibility and unwillingness to admit that a problem exists. But this is not the recommended course of action. An Atlanta, Georgia Partnership Dispute Attorney should always be consulted with when a business partnership is suffering due to one or more partner’s inability to carry out the fiduciary duties and responsibilities implicit in most partnerships. The decision to work with a Georgia partnership attorney to resolve partnership disputes and disharmony could very well save your business, your financial situation, and possibly business and familial relationships.

It is unwise to allow a business partner to walk away from legitimate responsibilities, especially when this can both damage the partnership business and the remaining partners’ credit and future prosperity. Remember, under Georgia Partnership Law, you do have legal recourse.

At The Adams Law Offices, our team of experienced Atlanta, Georgia Partnership Dispute Attorneys are equipped to resolve almost any partnership issues which may arise in the course of a partnership. Our Atlanta, Georgia business lawyers routinely help business owners set up partnership agreements and later enforce the terms of these agreements if necessary, in order to ensure that all partners are fulfilling their obligations.

Our Atlanta, Georgia partnership litigation attorneys will work with you to equalize your partnership duties and responsibilities. Whatever your circumstances are regarding a partnership that is failing or is poised to turn into a bona fide partnership litigation lawsuit, our Firm is ready to help you get your business back on the road to success. Call our office today to discuss your situation at (404) 467-8611, or toll free at (877) 412-3267.

Continue reading "FIND AN ATLANTA, GEORGIA PARTNERSHIP DISPUTE / DISSOLUTION LAWYER AT THE FIRST SIGN OF GEORGIA PARTNERSHIP TROUBLES AND PROBLEMS" »

Construction defects can be costly to rectify and can negatively affect the value of a home and the ability to resell it (this is often called a diminution in value). Some of the more serious and difficult to fix issues stem from a defective home foundation. A home’s foundation can withstand hundreds of years of use if correctly constructed and usually can outlast the home built on top of it. However, if built poorly, a foundation can be the source of problems that threaten the stability of the home and, ultimately, the homeowner’s investment.

It is sad to know, that whether I am working in Sandy Springs as a “Sandy Springs Construction Home Defect Attorney,” the Buckhead Area as a “Buckhead Construction Home Defect Attorney,” in Fulton County as an Atlanta Construction Home Defect Attorney, in Gwinnett County as a Duluth or Lawrenceville Construction Home Defect Attorney, in Forsyth County as a Cumming Construction Home Defect Attorney, in Cobb County as an Acworth, Kennesaw or Marietta Construction Home Defect Attorney, and/or last but not least, in DeKalb County as a Decatur Construction Home Defect Attorney, the critical foundation problems I see in my Atlanta-Based Home Construction Defect Law Practice all stem from common defective construction that could have been prevented had the builder, contractor, or sub-contractor taken care in the construction of the home, and in particular, the foundation.

Unfortunately, these issues may not become known until several years after the building is complete. The result can be a nightmare scenario that leaves the homeowner unsure of what recourse is available under Georgia law. In many cases, by the time the defect is noticed, the builder or contractor responsible for the poor work usually denies that the foundation defects are their responsibility. For this reason, we also may engage various insurance companies to seek a remedy and relief for the homeowner in addition to pursuing the builder and contractor.

The foundation is especially critical because not only does it support the house, it also provides a moisture barrier that keeps the home dry and mold free. A solid foundation also insulates the home from cold and protects the home from damage caused by the ground shifting. Poured concrete reinforced by steel is thought by some experts to be a stronger material for foundations than concrete block or stone, and foundations can be built below ground on footings to provide a basement, or built as a slab. Regardless of the materials used to build the foundation, or its type of construction, all foundation types can fail for a variety of common reasons.

Improper initial site evaluation by the builder is one common cause of foundation issues. The first thing a builder must do when planning new construction is to evaluate the property’s soil type, water table, and grade. This will allow the builder to determine where to place the home on the property and what materials to use. Once that decision has been made, the soil preparation, process of laying the concrete and backfill used around the foundation all will affect the integrity of the foundation.

The foundation must be poured over solid ground that is prepared correctly, and compacted, so it does not settle and cause the foundation to crack. Properly leveling and packing crushed stone before pouring a slab, for example, will help prevent the slab from cracking. If the property contains any landfill material that may decompose over time, the soil must be reengineered to withstand the force of the foundation and the building. Additionally, concrete should be poured in one day to avoid creating a “cold joint” between fresh and semi-cured or cured concrete. This condition usually results in a cracked foundation that will leak. Concrete must also be allowed to cure slowly. Only by curing slowly will the concrete reach a strength that will support the weight of the house (around 3,000 pounds per square inch). Finally, the material used to backfill around the foundation will affect the longevity of the structure. Soils with a high clay or organic content absorb and hold water and can cause cracks in the foundation during freeze/thaw cycles when used as backfill.

Continue reading "CONSTRUCTION DEFECT LAWYERS IN ATLANTA, GEORGIA WORK WITH HOME PURCHASERS TO REMEDY FOUNDATION AND OTHER CONSTRUCTION DEFECTS" »

As an Atlanta, Georgia construction defect lawyer, improper concrete installation is a defect, which usually causes significant, costly, and severe damage. By the very nature of concrete’s physical makeup, its uses in construction, and its importance in our day-to-day construction world, construction defects are costly to correct. Oftentimes, these defects are not open and obvious and occur over time, making them even harder to detect or place blame on the party at fault. Nevertheless, Georgia law gives legal recourse to seek a legal remedy for all types of construction defects. As an Atlanta, Georgia Construction Defect Attorney, I always recommend that homeowners seek an Atlanta Construction Defect Lawyer with significant knowledge of concrete. Additionally, it is equally as important to find an engineer to work with you who understands concrete uses, its physical attributes, and how to rectify these defects. Usually a good construction defect attorney will have their construction expert they prefer. Quickly rectifying these issues, especially when they relate to concrete, is critical. If left unaddressed, concrete defects can worsen with time and seriously affect the structural integrity of the home. Ultimately, the safety of the dwelling, and ability of the homeowner to sell the property in the future, is at stake. Conversely, when working with construction companies to rectify their mistake or disprove accusations of fault, it is important to have independent concrete engineer and a working knowledge of concrete, its attributes, and the building industry standards.

As homeowners, we are forced to put our trust in many types of contractors and usually it is relatively straightforward to find a qualified professional who, through referrals, can make repairs. However, in new construction timelines and oversight of projects, contractors are usually not intimately involved in overseeing the project. This is especially true after the home is purchased and the pre-build out is complete. Unfortunately, it may be months or even years after the buyers move into the home, before the Georgia concrete construction defects discovered. Thus, it usually becomes a daunting task to rectify the situation by correcting the defects in a suitable fashion, finding the responsible parties, and holding accountable the responsible parties.

A Georgia construct defect attorney with knowledge of concrete can be invaluable in this process. This is especially true if this Georgia construction lawyer has a trusted construction concrete engineer by their side. One of the first things an attorney will do is to locate an expert who will inspect and evaluate the defects. This expert can also act as a witness during any necessary arbitration or litigation. The expert will have an insightful understanding of the science behind concrete application, not mere experience. This is critical and an experienced construction defect attorney will look for a construction expert who understands the importance of site evaluation, proper mixing techniques, the range of cement grades, correct concrete installation, proper curing for under different types of weather conditions and backfill quality.

Continue reading "ATLANTA CONSTRUCTION DEFECT LAWYERS SAYS "GEORGIA HOMEOWNERS AND CONTRACTORS PLAGUED BY IMPROPER CONCRETE INSTALLATION – THE MONSTER AMONG DEFECTS"" »

As a residential and commercial construction arbitration lawyer in Atlanta, Georgia, I can assure you that most persons entering into a Georgia construction contract do not think of worst case scenarios should any parties to the contract fail to perform their obligations according to Georgia construction contract law and construction industry standards.

• What is Georgia Construction arbitration; Is it binding? How does it work?

• What will happens if a contracting party fails to pay?

• What happens if the purchaser of contractor or builder services cannot be satisfied no matter what is done?

• Do I need to, and should I, send a Georgia “Right to Repair Act” Letter?

• What will happen if residential or commercial construction does not meet or exceed industry standards?

The questions and scenarios surrounding Georgia construction claims are endless as are the actual real life occurrences, which I witness happening day in and day out. To survive in the construction business world, it is best to be prepared for all possibilities. The best way to do this is to have a contract in place which fairly, resourcefully, and adequately covers almost any issues which might arise in any Georgia construction claim scenario.

For years, Georgia construction litigation was considered the more costly, more time consuming manner of dealing with disputes, and so many contracts included arbitration clauses instead. Georgia construction arbitration has many varied forms and phases, which are its counterparts to Georgia litigation. It is usually up to the parties to an arbitration, with the assistance of the arbitrator or arbitration panel, to make the decisions about pre-arbitration matters which are somewhat customized to the construction case. The most important and controversial aspect to Georgia construction arbitration clauses are that they are binding decisions and cannot be appealed to any court absent extraordinary circumstances. Even then, they are rarely overturned by a court of competent jurisdiction, but merely modified. One might say the good news in all of this is that Georgia construction arbitration can be a relatively fast and inexpensive forum for resolving Georgia construction disputes.

However, others counter this argument stating that the cost of arbitration has skyrocketed while the time it takes for a case to make its way through Georgia state courts has diminished significantly.

Two California Supreme Court cases held that the courts cannot overturn a binding arbitration award even if the arbitrator fails to follow California substantive law. As a result, it becomes literally impossible to have an erroneous decision reviewed by the courts. While this is a California case, State Supreme Court holdings often have a strong influence on the courts in other states.

Needless to say, if you enter into a Georgia Contract with arbitration, you should consult a Georgia contract lawyer with expertise in arbitration and alternative dispute resolution. This is especially true if the contract you are entering is a Georgia construction contract for new home construction, a renovation contract, or contract for any similar building, structure creation, or like-kind services.

All claims or disputes between the contractor and the Owner arising out of or relating to the Contract Documents, or the breach thereof, shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association currently in effect unless the parties mutually agree otherwise. The award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.

Due to the current trends in Georgia construction law and the arbitration process itself, as an Atlanta, Georgia construction lawyer with The Adams Law Offices, I would suggest incorporating certain additional considerations into arbitration clauses when used to give the parties to an arbitration greater control. For example,

Arbitration forum. The standard dispute resolution forum in the construction industry is the American Arbitration Association (AAA). However, recently, a number of other dispute resolution service providers (e.g. Judicial Arbitration and Mediation Service "JAMS") have developed and many attorneys now prefer them over the AAA. The choice of an arbitration forum should be reviewed in context of the cost, arbitration panel members, and forum arbitration rules. Particular attention should be paid to the forum's arbitration rules since they are incorporated into the arbitration clause. Though, the arbitration clause may include provisions that delete all or portions of the forum's rules.

Discovery. Most arbitration clauses limit the scope of pre-arbitration discovery. A well-drafted arbitration clause will restrict or expand discovery to correlate to the dollar value of the dispute.

Standard for Court Review of the Award. An arbitration clause can be drafted to require the arbitrators’ decision to comply with the substantive law. If the arbitrator violates such a provision, the parties to the arbitration may seek to overturn the award since the arbitrator exceeded the authority granted under the arbitration contract clause. To ensure that a court has enough information to properly review the arbitrators’ award the arbitration clause should also require the arbitrators to render a well- reasoned opinion. The opinion should include a statement of the factual determination made by the arbitrators and the conclusions of law rendered by the arbitrator. Finally, if you want the decision to be reviewed by the courts for compliance with substantive law, a provision should be included in the clause that clearly states that desire.

The best method for ensuring that a Georgia construction dispute is correctly and fairly resolved is through situation-specific clauses in properly-drafted construction contracts. The arbitration clause is one of many clauses included in a typical construction contract, and each clause can be affected greatly by recent changes in the law. It is thus wise for any construction contract to be drafted or at least reviewed by counsel before signing.

The Adams Law Offices Georgia construction lawyers can negotiate, review, and draft your construction contract in light of all of the most recent changes in accordance to Georgia construction law and arbitration proceedings, which is most favorable to you. If you are considering entering into a construction contract or amending a previous contract in light of recent changes in the law, contact our Atlanta construction contract law firm and come in for a consultation. Seeking the assistance of a seasoned Atlanta, Georgia construction contract and arbitration lawyer adept is the least you can do to protect yourself from worst case scenarios.

As a well-known Georgia construction arbitration lawyer with a perfect Avvo rating of 10, I am here to tell you that if anything can go wrong in a construction contract or in construction, it will. The very nature, imperfection, and importance construction combined with the building a home or commercial structure readily lends itself to disputes and conflict. This is likely true because for many, a home is the biggest purchase you will ever make in your life. In addition, construction is not what it seems to be on paper. It is, by its nature, imperfect and the result and methods of construction are readily subjective.

In short, protect yourself because this construction is “big deal” to parties to the contract and maintains a high rate of conflict.

If you have legal dispute or binding arbitration with a contractor, builder, sub-contractor or architect whose work does not meet or exceed Georgia industry standards, you should contact The Adams Law Offices without delay.

Continue reading "ATLANTA, GEORGIA CONSTRUCTION ARBITRATION ATTORNEYS, ARBITRATION CLAUSES, THE RIGHT TO REPAIR ACT, AND MORE; FIND THE BEST GA CONSTRUCTION LAWYER TO ASSIST WITH CONTRACT AND ARBITRATION DISPUTES, LITIGATION, AND GEORGIA CONSTRUCTION CLAIMS " »

As a Marietta, Decatur, and Atlanta, Georgia lawsuit lawyer who both defends and files lawsuits on behalf of clients, I am writing to you today about Georgia lawsuit on contracts. At its simplest, a contract it is an offer by one party, accepted by another party, and performed, as agreed, by both parties.

Many parties entering into a new Georgia corporate business attorney-client relationship are either so eager to begin their business affairs, or so wary of delaying or derailing a Georgia business deal, that they are wary of bringing up the need for a written contract governed by Georgia Law. If a written contract is agreed to, many try to make it as simple as possible often without seeking the legal advice of an Atlanta, Georgia business contract attorney.

Our Firm has Atlanta business consulting lawyers giving advice to each business, which is custom tailored to their needs (we give such advice on an ongoing basis as needed after hours, on weekends, and more).

This is why many businesses enter agreements without a written contract, without attorney review of a contract, or without even reading a contract. This is also why so many contractual agreements that begin with such optimism and desire for speed, end up dragged down into the mire of contractual litigation, where they are finally forced to resort to the attorneys who could have prevented such a breakdown in the first place.

Protect your Georgia business with an Atlanta business lawyer’s advice and know that it is of the utmost important to have a written contract reviewed by experienced local Atlanta business contract attorney, that covers, simply but effectively, all necessary elements of the binding contract-agreement governed by Georgia law to ensure the rights and obligations of both parties are met.

A simple example of a situation where one clause can solve a great deal of time and expense is the question of jurisdiction to hear your case, the specific court (state or superior, etc.) and governing law.

Many Atlanta and Georgia businesses deal with other businesses, contractors, and customers that are outside of Georgia. So, if there is a lawsuit, where must it be filed? Many tend to believe that they can file a lawsuit in the state where they reside. This is not always the case, in fact, it is most often the very opposite.

Generally, a lawsuit must be filed in the state where the Defendant (the non-suing party) resides.

Thus, if you are a Georgia business, even one that feels it is the victim of a breach by an out-of-state company, you will still have to file in that company’s state with all the extra expenses involved in that.

If you wish to fight to have the case brought within your state and county, you will have to prove that your situation falls within the exceptions to this rule, known as the Georgia Long-Arm Statute (O.C.G.A. 9-10-91). Under the Georgia Long-Arm Statute a lawsuit can be brought in Georgia if the nonresident:

1. Transacts any business within Georgia;

2. Commits a tortious act or omission in Georgia;

3. Commits a tortious injury in this state caused by an act or omission outside this state if the tort-feasor regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered in this state; and

4. Owns, uses, or possesses any real property situated within Georgia.

This is a very high and fact-based standard and thus a time-consuming, expensive inquiry. It is also one that would have to be addressed before the merits of the case itself could even be considered.

THE BEST WAY TO AVOID THE ABOVE PROBLEMS?

A simple clause within the contract that states, “In the event a dispute arises, the parties agree that all lawsuits, claims, etc. will be brought within the state of Georgia [including county, city, and court where possible] and be interpreted and governed by and under Georgia law.”

Continue reading "ATLANTA, GEORGIA LAWSUIT (LITIGATION) DEFENSE AND LAWSUIT FILING ATTORNEY ADVISES ON RULES ABOUT DEFENDING AND FILING GEORGIA LAWSUITS -- GEORGIA BUSINESSES BEWARE OF THE “LONG ARM” OF GEORGIA LAW" »

As a Georgia construction defect lawyer in Atlanta, I realize the importance of new construction arbitration and its binding effect. The legal forum for resolving Georgia new construction defect disputes is usually binding arbitration and triggered by a clause in the “New Construction Dispute Resolution Section” in the “Home Purchase Agreement”. In most cases, the arbitration ruling is final. This means there is no chance to challenge the arbitration ruling, such as an appeal. In short, new home construction arbitration in Georgia is final. Should you disagree with the arbitrator’s award or judgment in your case, you are stuck with their ruling – and, no legal recourse. In your new home construction arbitration case, I know the importance and necessity of having affordable, zealous, and aggressive legal representation leading the way.

As an Atlanta construction law attorney, I have successfully represented countless clients in Georgia home construction defect arbitration cases. I have also represented countless clients in Georgia home construction defect negotiations. What is more, I have successfully brought contractors, builders, sub-contractors, and architects who are at fault, “to the table”, forced them to take responsibility and for their defective construction or design and pay damages, forced them to correct the defects at no charge to the home buyer, or both. It therefore stands that I know what you must look for in choosing a lawyer to represent you in a Georgia construction dispute. This is especially true if your dispute is to be decided through binding arbitration. Regardless, you must decide when it is the right time to seek the assistance of a Georgia construction attorney.

I would presume you found this article because you believe you have a construction defect in your home or other structure, which was caused by or through the negligence, malfeasance, or fraud of your contractor, builder, sub-Contractor, or architect. You will be glad to know, your search has landed you in the right place. The order of events in discovering and addressing a construction defect in your new home are as follows:

• You have found what you believe to be a construction defect

• You have tried to get the contractor to correct what you believe to be a defect, but you can’t get your contractor to correct the problem, or your problem gets the proverbial “band aid” placed on it

• You realize this is your house, it’s probably the biggest purchase you’ll ever make, you will call this place home, and your sixth sense tells you this is not a situation to take lightly and you should see a professional, such as a Georgia Construction Defect Law Attorney!

When you have verified that something is wrong with your home, and that the contractor, builder, sub-contractor, architect, etc. are not going to assist you in addressing or correcting the situation, it’s time to move on to more assertive behavior to protect your asset, as follows:

• Notify the contractor that there is a problem and give him one last chance

• Verify through a third party expert that the problem you believe is a home defect is the type of defect the contractor, builder, sub-contractor or architect should be responsible for, and should correct

• Verify through a third party inspector, expert, or other such person privy to the costs of correcting construction defects, and determine that the costs involved in hiring an attorney are justified. Make sure you consider the total affect the defect will have on you such as diminution in value, future sale value, the problem becoming worse over time, etc.

Continue reading "FIND AND HIRE THE BEST ATLANTA CONSTRUCTION DEFECT LAWYER – RETAIN AN EXPERT GEORGIA HOME DEFECT ATTORNEY – FACTORS TO CONSIDER TO FROM AN INSIDER’S VIEW" »

As a Corporate Attorney in Atlanta who advises sole proprietorships, partnerships, and corporations, it is important to remember that each entity is more than just a name on paper that you take on to take advantage of various tax benefits.

Even if you have a simple family-owned business formed as a C Corp, that is no more than you and your spouse as the sole directors and shareholders, it is still important to observe basic required corporate formalities if you want to maintain the protection from personal liability that such a corporation provides.

If you fail to observe these basic formalities, you could risk your C Corp being disregarded by a court in an action called “Piercing the Corporate Veil” where the court holds that you indeed do not have a proper corporation and therefore can be held personally liable for any and all debts.
So, to avoid this and maintain the corporation you have established, what do you have to do?

Annual Meetings. Shareholders and directors must generally meet at least once a year to approve and authorize new business, elect new directors and officers, etc. Of course if this is just you and your spouse, partner, friend, etc., this can be as simple as sitting down or discussing over the phone the business of the company. The key to formalizing this step is keeping records of the meeting known as Minutes.

Minutes. Be sure to keep timely and accurate minutes of all shareholder and director meetings. In other words, write down what actions were discussed, agreed to, and taken, when, by whom, and where. The proper form for Minutes can be obtained from a licensed Georgia Business Attorney.

Consent Forms. Forms for “Actions by Unanimous Written Consent” can also be obtained from your business attorney to formalize and record decisions made at these meetings.

REMEMBER: THERE IS NO SUBSTITUTE FOR FOLLOWING GEORGIA CORPORATE FORMALITIES

At The Adams Law Offices we advise C Corps, Subchapter S Corps, LLCs, and many other types of corporations and business entities on following corporate formalities. Our Atlanta Business Lawyers know the importance of following corporate formalities and how this can prevent you from being personally liable for corporate debts, judgments, and other liabilities of your corporation.

Continue reading "ATLANTA, GEORGIA CORPORATE BUSINESS ATTORNEYS ADVISE -- FOLLOW CORPORATE FORMALITIES OR YOU MAY BE PERSONALLY LIABLE " »

As an Atlanta property lawyer that regularly handles proceedings dealing with Georgia business, real estate, construction, property, and contract matters, it is imperative that I know when a Georgia contract must be in writing to be legally enforceable. Being an attorney who does not cut corners and can be stubborn about achieving perfection, my quick answer is that every contract must be in writing. However, this is not true. Many contracts are not in writing. This is especially true for Georgia contract disputes and litigation, which in one way or another; end up on my desk to correct. In short, failure to memorialize your contractual agreement causes a plethora of problems, so please put everything in writing.

This is even true if you write your contractual agreement on a napkin from the restaurant, while having lunch with the contracting parties, with the waiter’s pen. The written contract should be a detailed written agreement that is signed, witnessed, and understood by all parties of the contract. Do not sign a contract you do not understand. This is because your signature on a contract affirms that you read, understood the contract fully, and agreed to it. The contract must contain and cover all material terms of the subject matter contract.

Now, the truth be known, the above-referenced scenario, while not a bad idea, is really me making a vain attempt to prevent future problems that could arise stem from uncertainties that often arise from oral contracts, and which are oftentimes prevented by written contract – even if it is on a restaurant napkin. Now it is time for the truth. I must admit I am purposefully wrong to prove a point. Georgia law holds that only certain Georgia contracts must be in writing. I still want to get one last word in that a contract on a restaurant napkin is abundantly better than an oral agreement.

In my Atlanta based property and Georgia real estate transaction and property dispute and litigation law firm, I know that contracts must legally only be in writing when they are subject to the Statute of Frauds. O.C.G.A. § 13-5-31 states that the following contracts do not have to be in writing to be legally enforceable. In short, they are not subject to the Statute of Frauds, which requires them to be in writing.

Conversely, it follows that contracts must be in writing when they are subject to the Statute of Frauds. In my Atlanta property dispute and litigation law firm, I know the exceptions to the Statute of Frauds. To be clear, contracts that must be in writing must meet the requirement that they be in writing because the Statute of Frauds dictates so.

Under O.C.G.A. § 13-5-31, the following types of cases are do not have to be in writing and thus one could say, they are not subject to the Statute of Frauds to be enforceable.

They are as follows:

• There has been performance concerning the contract terms by a party to the contract, and another party to the contract has accepted this performance. This indicates there is a contract, thus Georgia law states there is.

• Where there has been such part performance of the contract as would render it a fraud of the party refusing to comply if the court did not compel a performance.

• The contract has been fully performed. Since the contract has begun and finished, there is no reason to back up in time and require this contractual agreement be in writing.

As such, any oral contract is valid and legal enforceable so long as it complies with one of the above exceptions to the Statute of Frauds.

The binding authority that set forth and solidified the Statute of Frauds can be found in the case of Atlantis Realty Co., Inc. v. Morris, 142 Ga. App. 470, 236 S.E.2d 163, (Ga. Ct. App. 1977).

The lesson of this Blog Article? While it is possibly not evident, is that parties should always take the time to make a contract. Even more so, that certain contracts need not be in writing to be legally enforceable. However, if you are party to a contract, please take the time to put it in writing. If you feel a contract is pending, please take the necessary steps to have this contract put in writing. Truth be known, putting the contract in writing is only half the battle. If you are engaging in business with another party, please retain an experienced Atlanta, Georgia contract attorney to draft your contracts and make them binding on all parties. Additionally, by having your attorney draft the contracts, you can make sure your best interest are protected and promoted. I stated earlier that much litigation is generated from disputes over oral contracts. Well, there is a whole other sector that deals with Georgia contract disputes over poorly, ambiguously, or improperly drafted Georgia contracts. While a contract is just an agreement, in this business environment, a “handshake will not do anymore.” It is sad, but true.

Continue reading "REAL ESTATE – PROPERTY ATTORNEYS IN ATLANTA, GEORGIA, LET YOU KNOW WHICH CONTRACTS MUST BE IN WRITING – DO NOT REGRET FAILING TO RETAIN AN EXPERIENCED REAL ESTATE – PROPERTY LAWYER " »

As an Atlanta, Georgia Corporate Attorney, advising CEOs, CFOs, Secretary, Directors, Officers, Shareholders, it is critical you avoid mingling your personal affairs with any business matters, and vice versa. Many new business owners seek to protect themselves from personal liability by setting up corporations, the most popular being Limited Liability Company (or LLC). Regardless, a corporation can only protect you from personal liability stemming from your corporations liability, to the extent, you take care to separate your role in the corporation from your role as an individual.

Generally, the fist step in protecting yourself from debts and liabilities incurred by your corporation is incorporating your corporation (or business). In Georgia, filing the appropriate documents with the Georgia Secretary of State and creating a Limited Liability Company (or LLC) or a Corporation, can provide protection from personal liability. However, taking this action will not give you absolute protection from liability. Additional steps in your behavior, statements, and actions are critical in protecting yourself from being personally liable for debts of the corporation. When you are held liable for debts of the corporation because the company and your personal affairs are to tightly interwoven, is called Piercing the Corporate Veil.

Piercing the Corporate Veil occurs when opposing counsel (or another party) can show that the CEOs, CFOs, Secretary, Directors, Officers, Shareholders, etc. are mingling corporate their affairs with their individual affairs. Doing this is a huge mistake and you should avoid it at all cost no matter what inconvenience it may cause you or what your personal view of the Georgia law on Piercing the Corporate Veil encompasses.

Under what circumstances can I be personally liable for debts of the LLC, or corporation? And, why should I take additional steps for protection?

These extra precautions can also prevent plaintiffs from collecting money from your personal accounts and assets to satisfy a judgment against you. A Georgia business could incur this type of liability in a variety of ways, including:

• Mismanagement of a client’s money

• Make sure that all of your contracts entered into using your corporate position and then your name in this capacity (i.e. as President, etc.) Do not use your individual name, even if you are the sole shareholder. For Example:

___________________________
Signed, Larry J. Doe, President
ABC Enterprises of Atlanta, LLC

• Maintain the proper insurance for your business and make sure that the corporation’s name is listed as the “name insured” on the insurance policy. Your Atlanta, Georgia, Corporate Insurance Attorney should be able to help you with this process. Additionally, keep written records of discussions and of how the insurance agents, lawyers, CPAs, advised you to ensure your business is safe or you want to compare it to another opinion at a different time. A personal umbrella policy might also provide additional personal protection for business owners.

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In my Atlanta, Georgia Civil Arbitration Law Firm, I have worked with clients who have taken their business 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 and some other expenses and costs.

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 Georgia Business Disputes, having the option to choose a knowledgeable arbitrator will ensure that all parties are treated fairly under Georgia law.

When involved in business disputes resolved in the court system or through arbitration, it is advisable to retain an Atlanta, Georgia Arbitration Attorney. The lawyers at The Adams Law Offices have practice experience in all areas of Business Arbitration, Construction Arbitration, Contract Arbitration, and numerous other areas of law in which arbitration is an appropriate potential resolution.

The Georgia Arbitration Attorneys at The Adams Law Offices are well versed in the Georgia Arbitration Process despite the various rules and regulations set forth by different arbitration companies. Arbitration is a somewhat new alternative to litigation. While arbitration has been around for centuries, its modern day application is rapidly increasing.

At The Adams Law Offices, our Atlanta, Georgia Arbitration Lawyers know how to use the arbitration process to your advantage. The rules in an arbitration proceeding are usually more casual and the arbitrator or arbitration panel is usually more knowledgeable about the subject matter of the arbitration. The Adams Law Offices Atlanta, Georgia Arbitration lawyers keep abreast of the arbitration trends in various areas of law as well as the tendencies of local and regional arbitration panels. Protecting and promoting the best interests of you, your families, and your business, are at the heart of our goals. We invite you to let us educate you about the Georgia Arbitration Process. It can be effective, less costly, and in many cases such as Georgia New Construction Arbitration Cases, binding with no right to appeal.

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