Articles Posted in Business Law

MIAMI BUSINESS LITIGATION: CONTRACTUAL ATTORNEY’S FEES PROVISIONS DO NOT ALWAYS ALLOW RECOVERY
Mavrick Law Firm

Earlier this week we explored the American Rule and its prohibitions against recovering attorney’s fees unless a contractual provision or statute permits the prevailing party to recover those attorney’s fees. We also explored two difficulties that can arise when a party seeks to recover his or her attorney’s fees under a statute. The first difficulty…

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FORT LAUDERDALE BUSINESS LITIGATION: PREVAILING PARTY ATTORNEY’S FEES ARE NOT GUARANTEED
Mavrick Law Firm

Recovering attorney’s fees is governed by the American Rule. This rule generally prohibits a party from recovering his or her attorney’s fees unless the fees are expressly permitted pursuant to a contract, statue, or rule. Q.H. v. Sunshine State Health Plan, Inc., 305 So. 3d 543 (Fla. 4th DCA 2020) (“Under the American rule, a…

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FORT LAUDERDALE BUSINESS LITIGATION: CLASS ACTION WAIVERS
Mavrick Law Firm

Class actions are generally large lawsuits involving many plaintiffs bringing the same claims against the same defendant. These lawsuits can arise in a number of scenarios including employer/employee relationships. See Calderone v. Scott, 838 F.3d 1101 (11th Cir. 2016) (employees brought a class action lawsuit against their employer for violating Florida minimum wage laws). The…

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MIAMI BUSINESS LITIGATION: IRREPARABLE INJURY IS PRESUMED WHEN A RESTRICTIVE COVENANT IS VIOLATED
Mavrick Law Firm

A plaintiff seeking permanent injunction must satisfy a four-factor test before a court can rule it is entitled to an injunction. A plaintiff must demonstrate: (1) that it has suffered an irreparable injury; (2) that remedies available at law, such as monetary damages, are inadequate to compensate for that injury; (3) that, considering the balance…

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FORT LAUDERDALE BUSINESS LITIGATION: LAWSUITS FOR ACCOUNTING
Mavrick Law Firm

A claim of accounting is a useful tool to trace funds or establish claims and liabilities in a fiduciary relationship. To obtain an equitable accounting, the plaintiff must prove the following elements: a fiduciary relationship exists between the parties or the transaction at issue is complex, and (2) the remedy at law is inadequate. Tracfone…

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MIAMI BUSINESS LITIGATION: TRADE SECRETS AND FORUM SELECTION CLAUSES
Mavrick Law Firm

“Parties to a contract may stipulate to a particular forum in which to resolve future disputes.” Rudman v. Numismatic Guar. Corp. of Am., 298 So. 3d 1212 (Fla. 3d DCA 2020). These clauses are known as forum selection clauses and presumed to be valid unless the party resisting enforcement can demonstrate the clause is unjust…

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MIAMI BUSINESS LITIGATION: CONTRACT INDEMNITY AND “HOLD HARMLESS” COVENANTS
Mavrick Law Firm

Indemnity and hold harmless agreements are powerful tools that require the other party to the agreement to cover losses and expenses of the indemnitee. A hold harmless agreement is a type of indemnification agreement. “The term ‘hold harmless’ means to fully compensate the indemnitee for all loss or expense, and an agreement to hold harmless…

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FORT LAUDERDALE BUSINESS LITIGATION: RESTRICTIVE COVENANTS MUST BE REASONABLY NECESSARY TO PROTECT
Mavrick Law Firm

A party seeking to enforce a restrictive covenant must plead and prove the existence of at least one legitimate business interest justifying enforcement of the restrictive covenant. Fla. Stat. § 542.335. That same party must also “plead and prove that the contractually specified restraint is reasonably necessary to protect the legitimate business interest or interests…

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MIAMI BUSINESS LITIGATION: TRADE SECRETS CAN EXIST WITHOUT CONFIDENTIALITY AGREEMENTS
Mavrick Law Firm

            Protecting trade secrets can be critical to a business. Trade secrets are defined as information that “(a) [d]erives independent economic value . . . from not being generally known to, and not readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (b) [i]s the…

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FORT LAUDERDALE BUSINESS LITIGATION: ACCESS TO A FORMER EMPLOYER’S CONFIDENTIAL INFORMATION MAY NOT CONSTITUTE AN AUTOMATIC BREACH OF A RESTRICTIVE COVENANT
Mavrick Law Firm

Florida’s statute governing restrictive covenants requires the party trying to enforce the restrictive covenant to plead and prove the existence of at least one legitimate business interest justifying enforcement of that covenant. Fla. Stat. 542.355 (“The person seeking enforcement of a restrictive covenant shall plead and prove the existence of one or more legitimate business…

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