Articles Posted in Business Litigation

Parties to a contract with an arbitration agreement will often litigate the issue of whether the arbitration provision covers the parties’ dispute. Because arbitration is a different method of dispute resolution than court litigation, the distinguishing traits of arbitration can tactically benefit one party more than the other. Parties will often have the incentive to…

Consumers who receive an inferior product or service than what was advertised are certainly harmed by false advertising, but they may not have the incentive to sue or take action against the company issuing false advertisements. False advertising can have a far greater impact on competitors. A business that engages in false advertising can damage…

It is a common mistake in trade secret litigation for the company seeking protection for its trade secrets to fail to explain what trade secrets it wishes to protect. Courts require that plaintiffs describe their trade secret with a certain degree of particularity. Failing to do that can be fatal to trade secret claims. Peter…

Often, a member of a limited liability company can sue another member for a breach of an operating agreement in a corporate “derivative action” rather than in a “direct action” against the other member. This is because the victim is often the limited liability company, not the individual member. Aggrieved members of limited liability companies…

A shareholder wishing to file a derivative suit must generally present that dispute to the board of directors with a demand prior to filing a shareholder’s derivative suit. The way that this demand process works can vary between the states and can ultimately determine whether a shareholder is able to proceed with a lawsuit. A…

A company that successfully has its mark registered with the USPTO does not have immunity from other trademark owners claiming infringement. A trademark owner with a higher priority may nevertheless sue under the Lanham act if it can show that there is a “likelihood of confusion” between the two marks. Peter Mavrick is a Miami…

Disgruntled purchases of goods or services may later claim fraud by asserting that they relied on untrue statements made by the selling company when deciding to make the purchase. However, a purchaser generally may not rely on a statement that qualifies as “puffery.” A statement is puffery if it is merely a statement of opinion…

The business judgment rule can shield directors of corporations, members of limited liability companies, and associations from liability against claims of negligent management. The business judgment rule is designed to prevent courts from “Monday morning quarterbacking” the decisions made by those in control of organizations merely because the plaintiff does not like the outcome of…

Under Florida law, every contract has a duty of good faith and fair dealing. A party to a contract generally cannot subvert the very purpose of a contract through an improper exercise of its discretion. A party does not violate the duty of good faith and fair dealing, however, when the parties expressly contemplated the…

Florida businesses seeking to protect their reputation may need to bring a lawsuit under the Lanham Act to protect their trademarks. Defendants in business litigation asserting trademark infringement sometimes defend on the grounds that the plaintiff’s trademark is “generic” and therefore cannot be protected under the Lanham Act. A recent case from the United States…