2 Common Legal Mistakes that can have Serious Consequences

It’s a New Year and here at Netzer, Krautter & Brown, P.C. we decided to start a monthly blog for our law firm, with each attorney sharing some legal insights from their experiences. Here are some common legal mistakes that can prove to be both frustrating and expensive.

1. The business deal or venture that doesn’t have anything in writing or uses some form found on the internet.

This situation usually starts with two or more people seeing a business opportunity and deciding they’re going to go into business together or do a business transaction. Someone usually asserts “we don’t need lawyers to complicate this” and either finds some random form off the internet that is missing important legal language or they proceed with a handshake agreement and nothing in writing because each side says they’ll be fair to the other side.

For a few weeks, months, or maybe even years everything goes well. Then something unexpected happens and there’s a falling out. Maybe it’s a disagreement about the payment arrangement, a disagreement about management, or knowing who’s responsible for a cost or obligation. Maybe someone can’t get the financing they thought they could. Or parties have different recollections of what they originally agreed to in the first place.

If not resolved between the parties, it probably means everyone gets their own attorney and ends up paying expensive legal fees to sort through what could have been a preventable mess if there had been a written agreement.

THE FIX:

To avoid a potential legal headache, get an attorney involved in your business idea or transaction from the very beginning. They’ll know how to best protect your interests from the worst-case scenario or unanticipated situations.

2. Signing a settlement release with an insurance company without first talking to an attorney.

This situation usually happens when a person has been injured in an accident. The insurance company for the person or company who caused the injury offers some early minimal payment of medical bills and property damage in exchange for the person signing a full release of all claims, damages and injuries—even injuries that might not be apparent until well after the accident.

If a person signs that release and takes the money, they’ve given up their rights. Once that release is signed, it doesn’t matter that they may not have fully known the extent of their injuries or still be treating, with surgeries, physical therapy, etc, and have additional expenses that should have been compensated.

THE FIX:

Contact a personal injury attorney who has experience dealing with insurance companies for a consultation right after an accident and before signing any release, who will be able to advise you how to best protect your rights and if it makes sense to settle your claim. They will likely be able to get you a better resolution than if you sign your rights away and take the initial settlement.