Wright & Greenhill, P.C. Austin Lawyers | Wright & Greenhill PC | Litigation Practice2024-03-27T16:37:44Zhttps://www.wrightgreenhill.com/feed/atom/WordPress/wp-content/uploads/sites/1604523/2024/02/cropped-site-icon-4-32x32.jpgOn Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=492032024-03-22T09:37:17Z2024-03-22T09:27:42Z
Wright & Greenhill, PC is pleased to announce that four of our own have been recognized on the 2024 Texas Rising Stars list of exceptional young attorneys. Rising Stars is a ranking service based on a statewide survey, peer nominations and independent research of Thomson Reuters. Less than 2.5 percent of Texas attorneys are chosen for this prestigious distinction. To be eligible, lawyers must be 40 years old or younger, or in practice for 10 years or less. Blair J. Leake, attorney & shareholder, was selected as a Rising Star in Civil Litigation: Defense. This is his fourth Rising Star recognition. Catherine E. Marsolan, attorney & shareholder, was selected as a Rising Star in Civil Litigation: Defense. This is her fourth Rising Star recognition. Stephen B. Barron, attorney, was selected as a Rising Star in the practice area Civil Rights. This is his first Rising Star recognition. Elizabeth (Callie) Haley, attorney & shareholder, was selected as a Rising Star in Civil Litigation: Defense. This is her first Rising Star recognition.
]]>On Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=492022024-03-21T13:50:51Z2024-03-21T13:50:51ZDefining the scope of work and expectations
A comprehensive construction contract clearly outlines the scope of work, detailing what will be done, how it will be done and the expected outcome. This clarity protects the contractor by setting precise expectations with the client, preventing scope creep—where additional work is requested outside the initially agreed-upon scope—without appropriate adjustments to timeframes and costs. By specifying materials, quality standards and construction methods, the contract also sets a clear standard for satisfactory work completion.
Establishing payment terms
A well-drafted contract includes detailed payment terms, specifying the amount, method and timing of payments. Payment terms can also include provisions for:
Handling unforeseen costs or changes to the project
Ensuring that the contractor is compensated for all work performed
Addressing cost changes for additional tasks that arise due to changes requested by the client or unforeseen challenges
This can protect the contractor from delayed payments or disputes over the value of the work completed.
Including timelines and deadlines
Including specific timelines and deadlines for the project's phases and completion protects the contractor from disputes over project duration. These clauses can also outline the procedure for dealing with delays, whether caused by the client, by unforeseen circumstances like weather or material shortages or by the contractor.
Limiting liability
A solid construction contract includes clauses that limit the contractor's liability, specifying warranty periods and the types of damages covered. It can also include indemnification clauses, where the client agrees to protect the contractor against third-party claims related to the project. Liability limitations are crucial for protecting the contractor from unfair claims and ensuring that any liability is proportional to the level of control the contractor has over the cause of the issue.
Contractors may also need other matters covered in their contracts. Working with someone familiar with these kinds of contracts may provide a contractor with the legal assistance they need to protect their interests on each and every job.]]>On Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=491822024-02-19T19:35:01Z2024-02-19T19:35:01ZHow business mediation works
Business mediation is a form of alternative dispute resolution that can help resolve certain types of business conflicts. Mediation is a process that prioritizes compromise. Both parties involved in a dispute have an opportunity to present their side of the situation and explain what they believe is an appropriate outcome.
The mediator helps keep the communications calm and may help the parties find ways to work cooperatively instead of fighting. Mediation is confidential, which means that both parties can go into great detail about a matter without worrying about those details becoming public record. When mediation is successful, it typically results in both parties signing a binding agreement that can resolve the dispute that led to the conflict.
Business mediation can even help preserve the working relationship between two businesses or professionals currently experiencing a dispute. It can help lead to truly customized solutions for a major disagreement and can help keep the issues that lead to the conflict confidential.
Business owners and executives in Texas sometimes include alternative dispute resolution clauses in their contracts specifically to ensure they have a chance to settle disagreements before they go to court. As such, exploring alternative solutions for business conflicts may benefit entrepreneurs and executives worried about an ongoing dispute.]]>On Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=488202024-01-23T12:28:01Z2024-01-23T12:28:01ZWhat a force majeure clause needs to do
When crafting contracts, you don’t just want a “standard” force majeure clause. That can be essentially useless. It should protect your interests, but it has to be fair to the other parties or they won’t agree to it. It needs to be thorough and not overly broad. A poorly crafted force majeure clause may not hold up in court if it’s challenged.
It doesn’t replace the need for careful planning and contingencies
It’s also important to keep in mind that a lack of foreseeability of something is key to being able to invoke and enforce a force majeure clause. A contractor may know there’s the possibility of a strike within the next few months and that hurricane season is coming. Those can be considered “foreseeable.” They’d likely have no way of predicting the sinking of a cargo ship with needed materials in another part of the world, however.
Finally, it’s smart to have a “Plan B” and maybe a “Plan C” ready in case something unexpected happens. It benefits everyone to get a project completed as close to schedule and budget as possible.
The key thing to remember about force majeure and all other parts of a contract is that they need to be written uniquely to reflect each contract’s needs. One force majeure clause may not be right for all of your contracts. Proper drafting requires experienced legal guidance, which is often worth the time and money it can save you in court costs and other financial and reputational losses in the event that something goes wrong.]]>On Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=484832023-12-20T18:30:27Z2023-12-20T18:30:27Zinevitable changes to a construction project should, therefore, be well managed to avoid disputes and lost profit.
When amending an original construction contract, a developer, contractor, architect, investor and even an owner can end up in a mess due to poor communication. It’s, therefore, imperative that the changes in the scope of work be clearly articulated to help ensure the successful completion of the project.
The significance of change orders in construction
Change orders encompass alterations in design, materials or execution. They can arise due to client preferences, unforeseen challenges or evolving project requirements. While change orders can contribute positively to a project’s adaptability, they may also harbor the potential for conflict.
Change orders can disrupt the established workflow by introducing a dynamic element to a project. Delays, cost overruns and strained relationships among project stakeholders are common concerns.
Unpacking the causes of disputes
One primary cause of disputes is the ambiguity present in original contracts. Vague language and loosely defined terms create fertile ground for disagreements when change orders come into play. Clear and precise contract language is the cornerstone of dispute prevention.
Smooth communication is paramount in the construction industry. Disputes often arise when there is a breakdown in conveying change order details among project stakeholders. Establishing robust communication channels can significantly mitigate this risk.
Change orders frequently involve cost adjustments, and disputes often stem from disagreements over these financial implications. Contractors may face challenges in accurately estimating the financial implications of changes, leading to disagreements with clients or subcontractors. Rigorous cost estimation methodologies and transparent communication about budget alterations can curtail disputes related to financial concerns.
Change orders are an inherent aspect of construction projects, but their potential to sow discord can be mitigated through strategic planning and proactive measures. By addressing the root causes of disputes, establishing robust communication channels and implementing comprehensive project management practices, construction project owners can more effectively navigate the challenges of change orders.]]>On Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=484802023-11-20T01:23:27Z2023-11-20T01:23:27ZVoting rights disputes
Shareholders often have different perspectives on the company's direction, leading to disagreements in voting rights. Conflicts can arise, whether it's decisions related to major business strategies or the election of board members. Business owners must establish clear voting protocols within the company bylaws to minimize ambiguity and potential disputes. Regular communication and transparency about voting processes can contribute to a smoother decision-making environment.
Distribution of profits and dividends
One of the key reasons individuals invest in a business is the expectation of financial returns. Disputes may emerge when shareholders disagree on distributing profits and dividends. Crafting a well-defined dividend policy in alignment with the company's financial goals can mitigate conflicts. Additionally, maintaining open communication channels to discuss financial performance and future projections can foster understanding among shareholders.
Breach of fiduciary duty
Fiduciary duty is a legal obligation that mandates shareholders, particularly those in leadership roles, to act in the company's and its stakeholders' best interest. Disputes may arise if shareholders perceive a breach of this duty. To prevent such conflicts, businesses should prioritize transparency, ethical conduct and accountability. Regular audits and a strong corporate governance framework can further strengthen the foundation of trust among shareholders.
Ownership and equity issues
Changes in ownership structure, such as introducing new investors or transferring shares, can lead to disputes regarding equity distribution. Clearly outlining ownership terms in shareholder agreements and updating these documents as the company evolves can prevent conflicts. Regular reviews of equity allocations and proactive discussions about potential changes can also promote a harmonious shareholder environment.
Anticipating and addressing shareholder disputes is integral to maintaining a healthy business environment. By proactively implementing clear policies, fostering open communication and prioritizing ethical conduct, business owners can minimize the impact of disputes and better ensure the long-term success of their companies.]]>On Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=484792023-11-19T15:57:35Z2023-11-19T15:57:35Zusing mediation. With this process, instead of going to court, both sides sit down with a mediator (and their attorneys) and work to find a solution. Why could this be a better approach than litigation in some situations?
A focus on cooperation
First and foremost, as noted above, the focus of mediation isn’t on winning or losing the case. Both sides cooperate to find a solution that works for each of them. While this may mean that both parties have to compromise, it can be better than litigating a case where only one side will get what they want and there is a risk of a wholly unfavorable outcome for one party or the other.
There’s more control
Similarly, litigation means giving up some element of control. When a homeowner and a general contractor have a dispute about a property or a home defect, for instance, litigating it means that they are allowing the court to make a decision. But mediation keeps that control with the parties who are involved, so they don’t have to simply hope that someone else will make the right ruling.
It is informal and confidential
In some cases, people want to stay out of court because such records are public and because everything is very formal and structured. But with mediation, the atmosphere is much more informal and all of the details of the case are kept confidential, rather than becoming a matter of public record.
It can be faster and cheaper
Every case is unique, of course, but mediation is often faster and costs less money than litigation traditionally does. Part of the reason for this is that the parties do not have to wait on the court’s schedule to get a court date. Since they are not dependent on others, they can get the process started right away, and a resolution may be reached much more quickly – which can help to keep costs down.
What option should you choose?
If you find yourself facing a contentious situation, know that there are advantages and disadvantages to both litigation and mediation. You just need to carefully consider the unique factors of your situation to determine what legal options are best at this time. Seeking legal guidance is a good way to gain this valuable clarity.
]]>On Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=484782023-11-14T15:27:01Z2023-11-14T15:27:01ZSupply chain issues or difficulty finding skilled contractors could lead to a construction project going well beyond the proposed completion date while still unfinished. Property owners often become frustrated and may threaten to sue due to project delays.
Can a significant delay in a construction project warrant a lawsuit against the company doing the work?
Delays can be very expensive
Construction delays create a variety of expenses for the property owner. If it is a residential project, they may need to retain alternative housing for far longer than they anticipated, which could affect their finances. Seasonal changes in material and labor costs can be a factor as well. With commercial projects, businesses potentially lose out on revenue when they cannot open new facilities on schedule. They might also lose talent and client contracts if the facility doesn't open on schedule. Provided that there are actual financial losses related to a delayed construction project, it may be possible for dissatisfied clients to file a lawsuit against the company doing the work.
Contracts may help limit litigation risk
Many professionals running construction firms recognize that there are factors outside of their control that could delay a project or diminish a client's satisfaction with the final product. Therefore, they may choose to integrate certain protections into their agreements with clients. For example, they may give an estimated schedule and include rules for notifying clients about project delays. They might also include a requirement to attempt alternative dispute resolution, like mediation, before either party takes the matter to civil court.
Dissatisfied clients can damage a business's reputation and sometimes demand financial compensation for delays in a project. Identifying risks that could cut into a company's profits can help executives and owners protect against relatively unforeseeable but challenging circumstances. Seeking legal guidance in the event that trouble arises can help to mitigate any negative consequences that could be associated with a delay.]]>On Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=484762024-01-02T20:44:29Z2023-11-08T17:33:20Z
Wright & Greenhill, PC is proud to announce that attorney Catherine E. Marsolan was voted into the American Board of Trial Advocates at its National Board Meeting in Little Rock, Arkansas on October 7, 2023. Founded in 1958, the ABOTA Foundation is a national association of experienced trial lawyers and judges. ABOTA and its members are dedicated to the preservation and promotion of the civil jury trial right provided by the Seventh Amendment to the U.S. Constitution. ABOTA is an invitation-only organization. Members must have at least five years of active experience as trial lawyers, have tried at least 10 civil jury trials to conclusion and possess additional litigation experience. Members must also exhibit the virtues of civility, integrity and professionalism by following ABOTA's Code of Professionalism and Principles of Civility. Congratulations, Catherine!]]>On Behalf of Wright & Greenhill PChttps://www.wrightgreenhill.com/?p=484752024-01-02T20:44:36Z2023-10-27T14:24:57Z