Articles Posted in Business Litigation

FLORIDA ARBITRATION LAW: ATTACKING THE VALIDITY OF A CONTRACT DOES NOT INVALIDATE ARBITRATION PROVISIONS CONTAINED THEREIN
Mavrick Law Firm Team

It has become common practice for businesses to include arbitration provisions within agreements. Arbitration provides businesses a more efficient and less costly alternative to expensive, time-consuming litigation. Normally, arbitration provisions are drafted very broadly to cover all disputes or controversies that could arise between the contractual parties, commonly using the wording “arising from” or “relating…

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COMMERCIAL ARBITRATION: PROVISIONAL RELIEF – A LIMITED CIRCUMSTANCE WHERE COURTS CAN INTERFERE WITH ARBITRATION PROCEEDINGS
Mavrick Law Firm Team

Arbitration proceedings, and their outcomes, are generally not subject to the interference or review of a court. However, Section 682.031 of the Revised Florida Arbitration Code allows courts to issue and review provisional remedies that involve parties to ongoing arbitration proceeding. Provisional remedies can protect an arbitration-party to the same extent that the party would…

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BUSINESS LITIGATION: THE PRE-SUIT DEMAND REQUIREMENT FOR CORPORATE DERIVATIVE ACTIONS IN FLORIDA
Mavrick Law Firm Team

A derivative lawsuit is a lawsuit whereby a shareholder of a corporation sues a third party on behalf of the corporation. Any recovery from such lawsuits are the property of the corporation, not the shareholder who brought the lawsuit. Often times, the defendant of a derivative lawsuit will be someone close to the corporation, such…

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COMMERCIAL ARBITRATION: UNDER FLORIDA LAW, ACTIVE PARTICIPATION IN LAWSUITS WAIVES A PARTY’S RIGHT TO ARBITRATION
Mavrick Law Firm Team

Today, many businesses are including arbitration provisions for the resolution of any disputes or controversies that may arise from the contract. This is because arbitration provides a more efficient and less costly alternative to litigation. Despite the existence of such arbitration provisions within business contracts, often times, when a dispute arises, a plaintiff will still…

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BUSINESS LITIGATION: BUSINESS RELATIONSHIPS WITH ENTITIES SOLICITING BIDS VIA OPEN BIDDING PROCESS ARE GENERALLY NOT PROTECTED IN FLORIDA
Mavrick Law Firm Team

Competitive bidding is common for many businesses, including construction companies, supply companies, and retail providers, among others. In most cases, an entity will solicit bids from competing bidders through a request for proposal (RFP) and will award a contract to the most attractive bid, which can depend on several factors. Although competitive bidding can lead…

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FLORIDA COURTS HAVE LIMITED AUTHORITY TO MODIFY ARBITRATION AWARDS
Mavrick Law Firm Team

Arbitration is an increasingly popular alternative to traditional litigation because arbitration proceedings are faster and more cost effective. Many would-be litigants are incorporating binding arbitration clauses into their agreements for the economic benefits. However, parties who enter agreements with arbitration clauses should consider the conclusive nature of an arbitration proceeding. As arbitration clauses become prevalent…

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Purchasers of Businesses Should Not Rely On the Representations of the Sellers
Mavrick Law Firm Team

Prospective business purchasers should diligently verify the accuracy of a sellers representations because misrepresentations made by sellers sometimes are inactionable under Florida law. Florida courts routinely apply the doctrine of caveat emptor, otherwise known as the buyer beware doctrine, to preclude misrepresentation claims that arise out of commercial transactions. See Transcapital Bank v. Shadowbrook at…

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FLORIDA DECEPTIVE AND UNFAIR TRADE PRACTICES ACT: DEFENSE AGAINST LAWSUIT USING NOERR-PENNINGTON DOCTRINE
Mavrick Law Firm Team

The Florida Deceptive and Unfair Trade Practices Act (FDUTPA), § 501.201 et seq., Florida Statutes, is a remedial statute intended “to protect the consuming public and legitimate business enterprises from those who engage in unfair methods of competition, or unconscionable, deceptive, or unfair acts or practices in the conduct of any trade or commerce.” §…

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Members of LLC’s Should Be Prepared To Prove Discrete Harms Before Bringing A Lawsuit Against A Fellow LLC Member
Mavrick Law Firm Team

Under Florida law, if a member of an LLC wishes to individually sue another member for damages arising out of the membership, the plaintiff-member must prove: “(1) a direct harm to the … member such that the alleged injury does not flow subsequently from an initial harm to the company and (2) a special injury…

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Fraud Claims Cannot Be Based on Puffery
Mavrick Law Firm Team

Most businesses that sell products or services encourage their salesmen to do whatever it takes to make a sale. This leads to the salesmen exaggerating regarding the quality of the product or service they are selling. Although exaggerations or statements promoting the quality of a product or service can lead to increased sales, it could…

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