New Orleans Real Estate & Corporate Law Blog

Dissolving a relationship with a business partner is not nearly as easy as simply firing an employee. Perhaps you both started the company together. Neither one of you is in a position of leadership over the other. You both have invested time, money, energy and emotion into the company.

That said, there are times when it's clear that you need to break off this partnership. Some red flags you may see include:

• It's all you can do to spend the work day together. You have personality conflicts that make it so that you dread that time and would never spend extra hours together unless you had to. Some call this the vacation test. If you would never go on a vacation together, should you work together?
• You do more of the work and shoulder more of the load. Things just do not feel fair. Maybe you spend long hours at the office, putting in at least 60 hours per week. Your partner constantly shows up late and leaves early. You need to work with someone who is as dedicated as you.
• They try to cover up mistakes and important facts if they made a mistake. You have to be honest with each other. If they make a mistake and try to keep you from finding out about it, or if they lie about income or expenses to make it fit the budget, they're not someone you can trust to work in your company.
• They want to stay involved but have little to offer. This often happens with young start-up companies. Maybe you partnered up with someone who was already your friend because they got excited about the idea. After working together, though, you realize that they have very little to offer. You can do their job better than they can. Maybe they are even holding you back.

A home is often the largest purchase an individual or family will make. For this reason, a Louisiana homebuyer may want to take steps to protect his or her interests during the buying process. One way to do this is to add contingencies to the purchase contract, which is akin to attaching strings to the deal.

Most potential buyers walk through a home that is for sale and see nothing but good things. Unless they have some expertise in home inspections or realty, it is easy to miss deficiencies that could cause issues for a buyer in the future. Putting a satisfactory home inspection contingency in the purchase contract could give that individual the opportunity to back out of the deal if the inspection reveals significant issues.

Even the most well-meaning business relationships can hit snags. In some cases, those snags are significant and can lead to serious disputes. If a construction project faces issues, it is possible for construction litigation to occur, commonly due to breach of contract.

Louisiana readers may be interested in a dispute that is currently underway in another state. Reports indicated that a construction project for a city hall complex has led to conflict with the companies that designed and built the structure. Apparently, Holder Construction claims that the city has not paid any invoices for approximately a year and owes the company $2.6 million. However, since the company sued the city, the city has countersued the construction company for breach of contract, negligence and fraud.

Owning a business can be a gratifying and lucrative endeavor. However, it does not come without risks, including the possibility of disputes and other matters that could result in a company facing a lawsuit. Louisiana business owners may find the following tips useful in limiting the potential for lawsuits, personal liability and expensive judgments that could jeopardize the future of the business.

For instance, insurance payments may take up a chunk of the monthly budget, but the policies could keep a business from having to dip into its own coffers. Shoring up contracts with certain protections for the business and the individuals behind it may also help. For instance, a contract could include something as simple as a protection against acts of God, which could make a difference.