Law Office of Henry B. LaTorraca Civil Trial Attorney

Protect yourself against business relationships gone sour

Great business successes may have small beginnings. During that startup phase, an individual may enter into informal agreements with vendors, property managers or even co-owners or partners. Without an attorney to clarify the type of business organization or contractual relationship, the company may be vulnerable to financial disputes after it starts earning revenue.

Take the case of pop singer Kesha, who is currently in business litigation with her record producer. The producer claims that the singer breached the terms of her contract by failing to deliver her recordings to him. 

Business operations may sometimes cross state borders, and Kesha’s record sales are no exception. That interstate commerce may also subject a business to potential liability or business disputes outside its state of incorporation. Kesha’s lawsuit is unique because the producer is suing the singer in New York, but the signer and her mother filed a sexual assault lawsuit against the producer in California.

The producer claims that the lawsuit is an attempt to extort him out of releasing Kesha from her exclusive recording contract. He is seeking damages for breach of contract and tortious interference claims, as well as punitive damages on the basis of defamation.

An attorney that focuses on business litigation knows that corporate relationships can change. Contracts with vendors may need to be renegotiated. Partners, co-owners or shareholders may attempt to gain more control of stake in a company. If relationships do sour, a company may find itself defending against breach of contract or partnership dispute claims. In those cases, hiring a skilled business litigation attorney may make the difference between winning and losing the lawsuit. 

Source: CNN, “Dr. Luke reveals 'extortion' e-mail from Kesha's mom in ugly legal battle,” Alan Duke, Oct. 16, 2014

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