Sullivan Pratt LLPSullivan Pratt LLP2026-09-03T07:18:48Zhttps://www.sullivanpratt.com/feed/atom/WordPress/wp-content/uploads/sites/1103779/2024/04/cropped-SullivanPrattLLP-site-icon-32x32.pngOn Behalf of Sullivan Pratt LLP<![CDATA[When a joint venture falls apart]]>https://www.sullivanpratt.com/?p=481622026-08-22T13:22:12Z2026-08-22T13:22:12ZJoint ventures can relate to the development of new goods and services. They can involve specific projects, such as a real estate development project that requires the resources and connections of multiple parties.
Joint ventures can help cement a functional working relationship between two or more businesses or professionals. When joint ventures are successful, everyone benefits. Unfortunately, joint ventures can easily face challenges that can derail plans.
What happens when a joint venture falls apart?
Contracts may govern the response
Joint ventures frequently require thorough, complex written agreements. In fact, the parties cooperating may have signed multiple separate contracts all relating to the same joint venture. When issues arise that delay a joint venture, prevent its completion or reduce its profitability, one party may technically be responsible.
Provided that the circumstances clearly show a failure to uphold the contracts or there is evidence of misconduct, one party committed to a now-failed joint venture can potentially take legal action against the other. They could potentially ask the courts to enforce any liability protection or special clauses integrated into their contracts with the other party. The failure of a joint venture could also produce numerous economic setbacks, which may warrant a lawsuit to cover damages.
Working with the lawyer to discuss different solutions can be helpful for those frustrated by the failure of a joint venture or similar project. Legal action is sometimes necessary when one party's failure to fulfill their responsibilities or meet professional standards results in a negative impact on others.]]>On Behalf of Sullivan Pratt LLP<![CDATA[What is a Subchapter V bankruptcy?]]>https://www.sullivanpratt.com/?p=481602026-08-08T00:43:43Z2026-08-08T00:43:43ZSubchapter V makes Chapter 11 accessible
Chapter 11 bankruptcy, also known as reorganization bankruptcy, allows a company to structure, streamline operations and discharge debts in an effort to keep the company operational and regain solvency. During a Chapter 11 bankruptcy, leaders within the organization typically maintain control of the company. They can work with the courts, as well as their creditors, to establish a reorganization plan that should bring the company back into the black.
Chapter 11 bankruptcy is expensive and lengthy, which may make it inaccessible to struggling small businesses. Federal lawmakers addressed this gap in the law by establishing Subchapter V bankruptcy cases.
A Subchapter V bankruptcy is a streamlined Chapter 11 bankruptcy designed especially for small businesses rather than massive, complex corporations. Successful companies that face temporary economic challenges may find that a Subchapter V filing is the best option available.
Discussing different types of business bankruptcy with a skilled legal team can help business leaders and owners choose the best option for their circumstances. A Subchapter V filing can help a small business continue operating while addressing its unsustainable financial obligations.]]>On Behalf of Sullivan Pratt LLP<![CDATA[When corporate officers engage in data theft ]]>https://www.sullivanpratt.com/?p=481582026-07-28T14:12:31Z2026-07-28T14:12:31ZCorporate officers are entrusted with significant responsibilities. They often have access to confidential business information, trade secrets, customer data, pricing strategies, financial records and proprietary technology. That access is intended to benefit the company for which they work—not any individual officer. When an officer misappropriates business data for personal gain or to assist another organization, the fallout can be severe.
Data theft by a corporate officer may unfold in a variety of ways. An individual may copy confidential files before resigning, transfer customer lists to a personal device, download sensitive research, email proprietary documents to a competitor or retain access credentials after leaving their company. The harm associated with this kind of data breach often extends beyond the value of the data itself. Stolen confidential information may undermine a company's competitive advantage, damage customer relationships, interfere with ongoing business opportunities or expose the business to regulatory and contractual issues. If trade secrets or other protected information are disclosed, years of investment in product development or strategic planning may be placed at risk.
What can be done?
Successful business litigation involving alleged data theft may involve multiple legal claims. Depending on the facts, a company may pursue claims for breach of fiduciary duty, misappropriation of trade secrets, breach of contract, conversion, unfair competition or other business torts. In some situations, emergency court orders may be necessary to prevent additional disclosure or misuse of confidential information while the litigation is pending.Prompt action is often critical when data theft is suspected. Delays may allow confidential information to spread further or make important electronic evidence more difficult to preserve. To that end, seeking experienced legal guidance can help businesses to seek appropriate injunctive relief and pursue compensation for any financial harm caused when corporate officers abuse their positions by stealing valuable business data.]]>On Behalf of Sullivan Pratt LLP<![CDATA[What can employees post about their workplace online?]]>https://www.sullivanpratt.com/?p=481562026-07-18T20:48:26Z2026-07-18T20:48:26ZUnderstanding freedom of expression
The right to express oneself extends to social media platforms. An employee can often talk about their workplace experience online. Furthermore, an employee’s freedom of expression is protected under state and federal laws. This includes discussing workplace conditions, exposing unsafe workplace activities and sharing political beliefs.
Establishing a social media policy
However, businesses can enforce a social media policy. For example, they may prohibit employees from using social media during work hours unless they are doing it as part of their job. Employees may also be prohibited from using social media on company electronics or using company social media accounts for personal use.
A social media policy can also limit an employee’s right to harass a business, manager or co-worker. They may also be prohibited from disclosing confidential company information. Failing to follow the social media policy can result in disciplinary action.
It is important for employers to create a clear social media policy that protects their business but does not harm their employees’ right to protected speech. Having experienced legal guidance can help businesses accomplish this.]]>On Behalf of Sullivan Pratt LLP<![CDATA[A white knight takeover plan could lead to litigation]]>https://www.sullivanpratt.com/?p=481402026-06-30T16:08:16Z2026-06-30T16:08:16Z“white knight” strategy is one possible way to avoid an imminent hostile takeover, but it can potentially lead to litigation in some cases.
The hostile party could allege misconduct
Outside entities attempting to conduct a hostile takeover may have lawyers on standby, ready to initiate litigation in response to any type of organized pushback. If a white knight solution involves halting stock sales already in progress or diluting stock, the hostile party seeking a controlling share of the business might take legal action.
While litigation intended to derail a defense strategy in a hostile takeover situation can be complex, costly and lengthy, court delays can be helpful.
A defense strategy that leads to a lawsuit can ultimately protect a business from an acquisition attempt that could lead to resource liquidation and business dissolution. When shareholders, executives and other interested parties note an alarming trend in stock sales, acting quickly to intervene and preparing for litigation can reduce the risk of a hostile takeover succeeding.
Reviewing possible responses to a hostile takeover attempt with a complex commercial litigation lawyer can help executives, shareholders and other interested parties evaluate their options. White knight strategies and other attempts to subvert hostile takeovers can trigger litigation, and business leaders usually need to be ready for pushback accordingly.]]>On Behalf of Sullivan Pratt LLP<![CDATA[Terminating a worker who can no longer perform key functions]]>https://www.sullivanpratt.com/?p=481382026-06-16T23:58:13Z2026-06-16T23:58:13ZRecords should support employer claims
In cases where the decision to terminate a worker relates to an acquired medical condition, the company may need to maintain thorough internal records to validate that the decision was not discriminatory but rather the result of the employee’s inability to perform necessary functions. Workers may sue if they believe a termination was wrongful.
If the company cannot accommodate the worker without facing undue hardship or if the worker truly cannot meet company requirements anymore due to their new medical limitations, the employer can theoretically proceed with the termination without risking a discrimination lawsuit. Especially if the worker refuses a transfer to a better-suited position, defending the termination in court is possible.
The more documentation the company has of performance issues and the demands of the job, the easier it may be to push back on claims that the firing was inappropriate and unlawful. Managers and other business leaders realizing that a worker can no longer perform critical job functions may need to discuss their employment law concerns with a legal professional.
Having assistance when responding to employment litigation stemming from disability discrimination claims is of the utmost importance for the reputation of a California organization. Managing scenarios like this is not a DIY project.]]>On Behalf of Sullivan Pratt LLP<![CDATA[Protecting trade secrets from vendors and service providers]]>https://www.sullivanpratt.com/?p=481362026-06-07T12:02:43Z2026-06-07T12:02:43ZHow contracts help
Vendor and service provider contracts can include nondisclosure agreements. Also known as confidentiality agreements, nondisclosure agreements prevent an individual or business from releasing non-public information or using confidential information for the benefit of an outside business.
While people often think of these agreements as part of an employment arrangement, they can also be important when a company relies on vendors and service providers. These agreements strengthen the right of companies to take legal action after the release or misuse of trade secrets.
How litigation helps
Legal action brought against a vendor or service provider can prevent the continued release or misuse of trade secrets. Judges can issue injunctions to protect a company when an outside party has accessed trade secrets through business relationships.
Judges can also potentially award damages in cases where the release of trade secrets causes verifiable economic harm. If there is a nondisclosure agreement in place, the courts can help enforce that agreement, including any consequences imposed by the contract.
Working with a business litigation attorney when drafting or reviewing contracts can help companies protect some of their most valuable resources. A lawyer may also be critical to the success of business litigation pursued due to the misuse or disclosure of trade secrets.]]>On Behalf of Sullivan Pratt LLP<![CDATA[A partnership agreement can help avoid disputes]]>https://www.sullivanpratt.com/?p=481342026-05-22T16:23:52Z2026-05-22T16:23:52ZPartnership disputes can be very complicated and contentious. They sometimes lead to litigation between business partners, and they can have a long-term impact on the company itself.
One way to avoid these disputes is to write a partnership agreement in advance. You can often circumvent many of the conflicts that would otherwise arise, all by planning ahead and addressing key issues.
Ownership percentages
For instance, do not just assume that 50% of the company belongs to you. This can lead to conflicts when making important decisions or selling the company and splitting up the equity. Make sure to clearly define the ownership percentages from the very beginning, even if it is just as simple as a 50-50 split.
Roles within the business
The partnership agreement can also specify exactly what role each person has. Assumptions about roles sometimes lead to conflicts when one partner believes they were in charge of making a specific decision, but the other partner feels like they went behind their back. Overlapping roles can also lead to conflict when two parties do not see eye to eye.
Dividing profits
Finally, if the business is profitable, splitting up the revenue can sometimes become contentious if it is not defined in advance. Are you going to take an hourly wage, draw a salary or simply split up the earnings every year? There are many potential tactics, but clarity and communication help avoid conflict.If disputes do still happen, a partnership agreement may identify potential resolution tactics that can be used. It is important for business partners to understand their legal options.
]]>On Behalf of Sullivan Pratt LLP<![CDATA[Avoid fraud charges in a business bankruptcy]]>https://www.sullivanpratt.com/?p=481212026-05-11T12:39:07Z2026-05-11T12:39:07ZBusiness bankruptcy can help a company reorganize or wind down in an orderly way, but the process requires full transparency. When financial records are incomplete or information is withheld, the risk of fraud allegations increases. The U.S. Trustee Program notes that it monitors the conduct of parties in bankruptcy cases and works to identify fraud and abuse, which makes accuracy and honesty essential during every stage of the process.
How fraud allegations can arise
One of the most common issues is allegations that business owners fail to disclose all assets. Even small items, such as outdated equipment or accounts receivable that seem unlikely to be collected, must be listed. Omissions can raise questions about whether the business is attempting to hide property from creditors. Clear and complete schedules help prevent misunderstandings and support a smoother case.
Trustees look back on financial transactions
Financial transfers made before filing can also draw scrutiny. Payments to family members, business partners or favored vendors may be reviewed to determine whether they were made at fair value. If the transfers appear unusual or poorly documented, the trustee may investigate further. Keeping detailed records and avoiding last‑minute financial shifts can reduce the risk of complications.
Stick to the facts
Business owners should also avoid providing inconsistent information. Differences between tax filings, bank statements, and bankruptcy schedules can lead to delays while the trustee seeks clarification. Consistency across documents helps demonstrate good faith and supports the integrity of the process.Finally, maintaining open communication with financial professionals can help prevent errors. Accountants and bookkeepers can assist with gathering records and ensure that disclosures are accurate. Careful preparation helps the business move through bankruptcy without unnecessary challenges.
]]>On Behalf of Sullivan Pratt LLP<![CDATA[How can businesses avoid sexual harassment claims?]]>https://www.sullivanpratt.com/?p=481172026-05-05T15:30:35Z2026-04-25T01:38:20ZMake sure everyone understands you won’t accept it
When someone sexually harasses another person at work, they are most likely expecting to get away with it. One reason an employee might think they will get away with it is that they’ve seen others do so in the past.
Maybe they have seen the employer dismiss a previous claim from someone without investigation, or maybe they’ve seen colleagues do things that would likely be called out and reported in many workplaces, but that no one appears to do anything about here. If you make it clear that sexual harassment will not be accepted in your company, and reinforce that message regularly, you reduce the chance that someone believes they will get away with it.
Your actions speak louder than your words
Simply having a company policy on sexual harassment in the employee handbook and posted on the wall of the lunchroom is not enough if you do nothing when someone does report something. If employees see that you do take a person’s report seriously, carry out a thorough investigation and punish the perpetrator when the evidence supports the claim, it sends a much clearer message than just those written words.
Train all staff
Training sessions can help you be sure that all your employees understand what actions would constitute sexual harassment. You will also need to train your managers in how to handle incidents and reports of them, as poor handling by them could harm your chances of resolving matters without the employee taking it outside the company. If a report of sexual harassment does come up, it’s wise to seek legal guidance to learn how best to handle the matter.]]>