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Common Business Disputes



Breach of Contract 

Litigation over the meaning of terms in a business contract rarely makes headlines, but these disputes can have significant implications for your business.  Breach of contract claims generally turn on the language of each contract and the facts surrounding each business transaction.  Our lawyers have experience in breach of contract litigation relating to employment contracts, contracts providing for residual income streams, rights of first refusal in contracts, contracts for the transfer of intellectual property, forum selection clauses in business contracts, and more.

Unfair Competition 

The Massachusetts consumer protection statute (Chapter 93A)  also provides a remedy if your business is harmed by unfair or deceptive practices of another business.  If the conduct of the other business is unfair or deceptive enough to violate 93A, your business could be entitled to triple damages and attorneys' fees. Smith Lee Nebenzahl lawyers have experience both prosecuting and defending business to business lawsuits under Chapter 93A.

Executive Employment Claims 

Executive employees are generally subject to the same rules under Massachusetts law as any other employee: unless otherwise specified in a contract, employment is at will and may be terminated at any time, unless otherwise unlawful (as described on our Employment page).  Executive employees, however, frequently have unique legal issues, including:

Terminations to avoid payment of bonuses, equity interests, and/or profit sharing benefits
:  although employment is generally at will, Massachusetts law recognizes that a termination to avoid paying compensation and benefits for services rendered might breach of the covenant of good faith and fair dealing implied in every employment contract.  

Fiduciary Duty
: certain employees, including executive employees, owe a fiduciary duty to their employers under Massachusetts law.  Smith Lee Nebenzahl lawyers have experience in litigation on behalf of employers and executives alleging breach of fiduciary duty by executive employees.  If you are an executive employee, our lawyers can advise you as to your rights and obligations, including the scope of the fiduciary duty.

Non Compete Agreements 

Non compete agreements are enforceable only if they are: (i) supported by consideration; (ii) reasonable in scope; and (iii) necessary to protect a legitimate business interest.  A non compete may be unenforceable if it was signed after the beginning of employment, if the nature of the employment changed after signing the non compete, if the scope of the non compete is unreasonable, or if the employer cannot demonstrate the need to protect trade secrets or goodwill through the non compete.

If you are subject to a non compete, our employment lawyers can evaluate the non compete, and defend you if your employer sues under the non compete.  If you are an employer, our  employment lawyers can advise you on the enforceability of your non compete agreements, draft an enforceable non compete, or pursue litigation to enforce your non compete. 

Non compete cases handled by Smith Lee Nebenzahl lawyers.


Shareholder Disputes 

Shareholders in closely held companies owe each other a fiduciary duty.  Similarly, officers and directors of all corporations owe a fiduciary duty to their shareholders. Smith Lee Nebenzahl lawyers have handled lawsuits brought by shareholders  arising from attempts by majority shareholders to "freeze" them out of the business, lawsuits claiming that officers and directors breached a fiduciary duty to shareholders, and shareholder disputes about ownership rights.

Misappropriation of Trade Secrets 

Misappropriation of trade secrets under Massachusetts law requires: 1) the existence of a trade secret; 2) reasonable steps to preserve the secrecy of its trade secret; and 3)  use of improper means to acquire the trade secret.  A trade secret must actually be secret, meaning it cannot be known or readily ascertainable by others in the business, and it must provide a competitive advantage to its owner.

Information may be  a trade secret even if it is not technical, such as compilations of customer information, if all of the above elements are met.

Our lawyers have handled trade secret lawsuits on behalf of companies as well as departing employees accused of misappropriating a trade secret.  Our lawyers can also advise employers about measures to prevent misappropriation of their trade secrets
.


One Post Office Square Sharon MA 02067
781-784-2000
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