Alabama businesses looking to hire an employee subject to a non-compete agreement without risking a business lawsuit may want to consider the case of Boston Scientific. Johnson & Johnson’s insistence on enforcing a non-compete agreement to keep senior executive Michael Mahoney from joining archrival Boston Scientific as chief executive led to some interesting employment terms, as outlined by the Wall Street Journal.

Specifically, J&J agreed to allow Mr. Mahoney to jump ship only after Boston Scientific agreed that he won’t work in businesses that compete with J&J while he is president. In addition, Boston Scientific’s general counsel, Timothy Pratt, must personally ensure Mr. Mahoney stays out of those areas, one of the people familiar said. Finally, under the terms of the agreement, Mahoney won’t become its chief executive until late 2012. J&J is prepared to file suit if Mr. Mahoney violates that ban, according to the WSJ.

As we alluded to at the beginning of this post, J&J’s leverage resulted from a strict non-compete agreement that would have prohibited Mahoney from joining Boston Scientific. “Their original plan was to make him CEO” by the end of 2011, but Boston Scientific dropped that idea when J&J raised the non-compete issue,” someone familiar with the matter stated.

Boston Scientific acknowledged in its announcement that Mr. Mahoney’s start date as CEO was delayed “to accommodate Mahoney’s post-employment obligations to Johnson & Johnson.”

Going forward, it still remains to be seen how workable the terms of the agreement will be at Boston Scientific, with Mahoney forced to sit on the sidelines for nearly a year. Under the terms of the agreement, his “initial responsibilities” are overseeing units selling implantable heart defibrillators, pacemakers and instruments for exploring the body and unspecified “corporate functions,” according to Boston Scientific’s announcement.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

As Alabama business attorneys, we are often asked how businesses should deal with unpaid invoices. To address these concerns, this post offers a few tips on how to get deadbeat clients and vendors to pay up before filing a lawsuit.

Send a Demand Letter: The first step in collecting unpaid invoices should be to send a statement or demand letter requesting payment of the invoice and detailing all outstanding amounts due, including any penalties for late payment. It is often helpful to set up a system under which letters are automatically sent 30, 60, and 90 days after the invoice is due.

Follow Up … Repeatedly: Many times your first collection attempt will be unsuccessful. Therefore, it is important to be persistent. In many cases, it is easy to for clients or vendors to ignore a letter. Therefore, it often helps to personally contact the person responsible for paying you. You can start with the accounting department and work your way up to the president of the company until you find someone to help you. Of course, this does not mean that you should threaten or harass the client, as this will only lead to liability on your end.

Keep Detailed Records: Be sure to keep accurate, written records of all of your collection attempts, including those made in person or over the telephone. These documents will be very valuable should you have to file an Alabama business lawsuit.

Call in the Big Guns: Sometimes, the only way to secure payment is to consult with an Alabama business attorney. In these cases, we are here to help, whether it means sending a demand letter or filing a lawsuit.

Source: Yahoo

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

The town of Gurley could be on the hook for nearly $5 million after losing an Alabama business lawsuit last February, according to the Huntsville Times. M&N Materials won a $2.75 million verdict, plus 6 percent interest and attorney’s fees, against Gurley after the town tried to block the company from building a rock quarry in the small community.

However, the town has been given one last chance to avoid the judgment. Late last month, Circuit Judge Karen Hall granted the town’s request to stop M&N from collecting on the judgment and agreed to hold a hearing Oct. 13 to decide whether the jury’s verdict should be overturned or a new trial granted.

The jury found that Gurley’s actions to block the quarry effectively condemned M&N’s property. Meanwhile, Gurley contends that Alabama law does not recognize the “regulatory taking,” which was the basis of M&N’s claims.

“The plaintiff’s inverse condemnation claim fails under the plain language of that provision, which only authorizes a cause of action where property has been taken or injured by the construction or enlargement of (the Town’s) works, highways, or improvements,” Gurley argued in a court filing. “Clearly, here, no ‘construction or enlargement’ of the Town’s physical works or infrastructure (support) the plaintiff’s claims in this case.”

As detailed by the Huntsville Times, the Alabama business dispute dates all the way back to 2003 when M&N began buying land with the intent of operating a rock quarry. The property was next to Gurley, but after word of plans for a quarry became public in 2003, area residents began to complain.

What the town did next is the source of the lawsuit. Gurley held a referendum in 2004 and about 90 percent of those voting approved annexing the property into Gurley. Gurley zoned the property for agriculture use, effectively preventing the construction of a quarry.

M&N was denied a business license for the quarry in 2004. M&N sold the property to Vulcan Materials in late 2004. Vulcan had an option to buy the property from M&N for $3.75 million, but it let the option expire and later paid M&N $1 million for the site.

M&N’s attorneys argued the full option price would have been paid if Gurley had not taken steps to stop the quarry. The jury award covered the balance of the original option price.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

We are proud to announce that Rutledge & Yaghmai is now an official sponsor of the Ruben Studdard Celebration Weekend. The weekend will feature a series of events dedicated to bringing health, wellness, fitness, and fun to Birmingham, Alabama.

The event will be held November 18 – 20, 2011 and will benefit the Ruben Studdard Foundation. As most Alabama residents are aware, Ruben Studdard is a former American Idol winner and Birmingham native.

The Ruben Studdard Celebration Weekend will feature great music, entertainment, and a family fitness festival powered by Iron Tribe. The marquee running events include a full and half marathon starting and finishing in Downtown Birmingham.

“Running has become a very important part of my health and wellness plan,” Studdard said. “The city of Birmingham has always been an important part of me becoming the person I am today. I’m looking forward to being a part of something so exciting that helps the city and the kids who benefit from the foundation.”

For more information about the festivities, please visit the official website available here.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

As we previously reported on this blog, LegalZoom was facing a Missouri class action that claimed the legal document company was not licensed to offer legal services in the state. A trial in the case had been scheduled to begin last week in Missouri federal court.

The case appears to have settled, according to the ABA Journal and other news outlets.

The agreement in principle allows LegalZoom to continue operating in Missouri, as long as it makes certain business modifications, according to a press release. The terms are still being negotiated and won’t be released until all sides give full approval to the agreement.

An attorney for the plaintiffs told AP that the proposed agreement also includes compensation for Missouri consumers who used LegalZoom.

Last year, LegalZoom reached a settlement with the Washington state attorney general’s office that bans the company from providing individualized advice related to the preparation of self-help forms. The agreement also bars LegalZoom from comparing its document costs to attorney fees unless it discloses that its service does not replace that of a law firm.

Since all of the LegalZoom lawsuits have settled, we still don’t know how a court would address the fine line walked by these legal services companies. In our view, companies like LegalZoom cannot replace the knowledge of an experienced attorney who will evaluate each client’s individual circumstances and make appropriate legal recommendations.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

Every day, we encounter a seemingly never-ending list of questions that need to be answered in both our life and business. Over time, this barrage of decision-making takes its toll in the form of a novel phenomenon known as decision fatigue.

As explained in the New York Times:

Decision fatigue helps explain why ordinarily sensible people get angry at colleagues and families, splurge on clothes, buy junk food at the supermarket and can’t resist the dealer’s offer to rustproof their new car. No matter how rational and high-minded you try to be, you can’t make decision after decision without paying a biological price. It’s different from ordinary physical fatigue — you’re not consciously aware of being tired — but you’re low on mental energy.

The more choices you make throughout the day, the harder each one becomes for your brain, and eventually it looks for shortcuts, usually in either of two very different ways. One shortcut is to become reckless: to act impulsively instead of expending the energy to first think through the  consequences. (Sure, tweet that photo! What could go wrong?)  The other shortcut is the ultimate energy saver: do nothing. Instead of agonizing over    decisions, avoid any choice. Ducking a decision often creates bigger problems in the long run, but for the moment, it eases the mental strain.

So what does this mean for businesses?

As the article notes, our willingness to compromise is often the first to go, as it is one of the most advanced and taxing forms of decision-making. In the business world, this suggests that contract negotiation or settlement talks should not be held later in the day, when you might be more inclined to walk away with less than you were owed, or take the path of least resistance, simply due to fatigue.

The article also raises another interesting finding—glucose (or sugar) can restore willpower and counter decision fatigue. For businesses, that means holding important meetings first thing in the morning or after lunch.

If you are not convinced, consider the results of a study involving an Israeli parole board. In midmorning, usually shortly before 10:30, the parole board would take a break, and the judges would be served a sandwich and a piece of fruit. The prisoners who appeared just before the break had only about a 20 percent chance of getting parole, whereas the parolees appearing immediately afterward had around a 65 percent chance.

“Even the wisest people won’t make good choices when they’re not rested and their glucose is low,” social psychologist Roy F. Baumeister points out. That’s why it is not advisable to restructure the company at 4 p.m., especially without eating first. “The best decision makers,” Baumeister says, “are the ones who know when not to trust themselves.”

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

During this week’s testimony in the Alabama corruption trial of Milton McGregor and his associates, several additional state legislators took the stand, including Rep. Barry Mask, R-Wetumpka. During his testimony, Mask described how Milton McGregor tried to “buy” his vote. The jury also listened to taped conversations between the two men regarding the proposed gambling legislation.

For both the prosecution and the defense, this case relies heavily on whether the jury understands the difference between lobbying and bribery.

Essentially, lobbying involves giving money as contributions to political groups in the hopes that the support helps secure favorable legislative or political decisions. In today’s political climate, contributions by lobbyists and individuals define and shape the priorities of politicians from local councilman to presidential candidates.

So when does it become a bribe? In the case of lobbying, the recipient of the money is not expected to take any particular action in exchange for the money. The introduction of quid pro quo—I will give you this, if you give me that—into the mix constitutes bribery. Therefore, when a business or individual gives money or property in exchange for an official act by a politician, then it becomes bribery.

In this case, the prosecution must show that Milton McGregor and his associates were making political contributions with the specific expectation that the money would secure a favorable vote on the gambling bill. Of course, none of the conversations contain any explicit references to “bribery.”

As reported by the Birmingham News, McGregor told Rep. Mask in a recorded telephone call that he would “never regret” voting for gambling legislation. McGregor also said he had friends who would provide Mask “significant” support if he didn’t want the contributions directly from McGregor.

At the same time, the defense is trying to show that the taped conversations were innocent fundraising calls that have been distorted and mischaracterized by the government.

For instance, during cross-examination, Mask acknowledged that it’s typical for political action committees and companies to contribute to politicians who share their goals.

“That’s the way it works, doesn’t it?” Geddie lawyer Jimmy Judkins asked. Mask agreed.

“Nobody at that fundraiser said, ‘Here’s a campaign contribution and here’s what we want you to do,” Judkins said. Mask said no, they didn’t.

Of course, there is still a lot of testimony to be heard in this case, but if you were on the jury, would you be believe that McGregor and the defendants were engaged in political fundraising or did their conduct cross the line into bribery?

We will continue to provide insight as the trial progresses. Please be sure to check back for updates next week.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

A new study by the Birmingham Business Alliance has found that the Birmingham-Hoover area surpassed the national and Alabama averages in the growth of black and women-owned businesses.

The study analyzed data recently released from a 2007 U.S. Census Bureau survey of business owners to compare metro Birmingham to the U.S. and Alabama averages as well the cities of Oklahoma City, Louisville, and Nashville.

According to the Birmingham News, the analysis revealed that metro Birmingham saw a 21.7 percent growth in all new businesses between 2002 and 2007, second only to Nashville’s 25.8 percent growth among the cities surveyed. In terms of revenue growth, Birmingham businesses saw a 53.3 percent rise, besting all of the other cities with the exception of Oklahoma City.

Several additional finding are summarized below:

• Birmingham had 93,718 businesses in 2007, a 21.7 percent rise compared to 2002. That outpaced the U.S. average of 17.9 percent but was slightly below Alabama’s increase of 23.6 percent.
• Women-owned companies made up 30.5 percent of all businesses in metro Birmingham in 2007 and accounted for 8.8 percent of all business revenue. The number of women owned businesses surged 37.5 percent between 2002 and 2007, the highest increase among the three other metro areas surveyed.
• Black-owned businesses comprised 16.5 percent of all companies in metro Birmingham and more than doubled (113 percent growth) between 2002 and 2007, the highest increase among peer metro areas. The downside was that black-owned businesses received just 1.2 percent of business receipts in metro Birmingham.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

As a three-panel judge is set to decide the fate of the NFL lockout, talks have resumed between players and owners, USA Today reports. The renewed negotiations, which were held in secret outside of Chicago last week, suggest that the two sides may prefer to work out their differences rather than rely on the court system.

NFL commissioner Roger Goodell and NFL Players Association executive director DeMaurice Smith led their respective parties in mediation talks, which were overseen by U.S. Magistrate Judge Arthur Boylan.

“The fact that the meetings occurred right before the hearing is a good thing,” said Andrew Brandt, a former NFL executive who is legal analyst for ESPN and columnist for the NationalFootballPost.com. “Perhaps it’s a case of both sides saying, ‘Let’s handle our own business, rather than letting the court decide.’ ”

This is good news for sports fans because a prolonged dispute certainly puts the upcoming football season in jeopardy. It has been reported that a deal must be struck by July 4 to ensure a full preseason and regular season begins on time.

What can Alabama businesses take away from the NFL contract dispute?

For Alabama businesses involved in litigation, the latest development highlights the importance of weighing the options of settlement versus going to trial.

Even in the best of circumstances, all litigation involves a certain amount of risk and uncertainty. Yet, it is this risk that also leads the parties to the bargaining table.

In fact, more than 80% of all litigation ends in settlement short of a jury verdict. In effect, most cases settle simply because neither the plaintiff nor the defendant can be absolutely sure how a jury will respond to the arguments made by each side.

Therefore, when it comes to Alabama business disputes, it is important that the client and the attorney work together to analyze the advantages and disadvantages of both avenues and decide together which is most beneficial.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

As we reported on this blog, legislation is pending that would ease restrictions on the ability of breweries to sell their products directly to consumers. Now, Alabama wineries are hoping to do the same, the Gadsden Times reports.

The House Economic Development and Tourism Committee approved a bill by Rep. Becky Nordgren, R-Gadsden, that would allow wineries to self-distribute up to 24,000 gallons a year. Nordgren and other proponents of the bill argue that the bill would help small wineries expand as a business as well as tourist attractions as part of Alabama’s wine trail.

Similar to the Brewery Modernization Act, the bill has the support of small winemakers but is opposed by the state liquor agency and major alcoholic beverage distributors. That is because wine makers are subject to the same restrictions that prevent an alcohol manufacturer from also being a distributer or retailer. Opponents of the bill claim it will disrupt Alabama’s three-tier alcoholic beverage system.

“The three-tier system is recognized as a valid regulatory process, and what this bill does, as I read, is allow them to not only be in two but in all three tiers, to do wholesale as well as retail businesses,” the Alabama Alcoholic Beverage Control Board attorney said.

In contrast, Burt Patrick, owner of Ozan Vineyard and Winery near Calera, would like to see Alabama become one of the states that allow direct sales.

“The bill basically would normalize Alabama’s small winery laws with most other states,” he said. “We’re kind of behind the times in recognizing wineries as a small-business issue versus the big-business issue.”

He said having to use a distributor when a customer may only need a few cases inhibits competition.

On an interesting side note, the U.S. Supreme Court has even ruled on wine distribution. In 2005, the Court ruled that New York and Michigan laws that treated in-state wineries differently than out-of-state wineries were unconstitutional.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.