Business Contracts:
Business contracts are written agreements spanning a broad range of the business relationships that occur in the life of a typical company.  They can include non-compete agreements, non-piracy agreements, non-disclosure agreements, restrictive covenants, employment agreements, producer agreements, sales representative agreements, consulting agreements, management agreements, franchise agreements, licensing agreements, deferred compensation agreements and independent contractor agreements.

Contracts are the very stuff upon which the marketplace is founded, and they provide the basis for a large share of business litigation.  The remedies for breach of contract include money damages and injunctive relief expressly directing one of the parties to perform a contractual obligation.  This remedy involves a form of injunction called a “specific performance” decree.  The remedy of specific performance is often called an “extraordinary” equitable remedy, in that courts will not grant specific performance except in a sharply limited number of circumstances.  Punitive damages are not an available remedy in a contract lawsuit.

Business Formation:
There really isn’t any need for legal counsel in forming a sole proprietorship, but other forms of business organization are a good deal more complicated and are best accomplished with the assistance of a lawyer.  These include the formation of partnerships, limited liability companies and corporations.

Business and Corporate Services:
Business and corporate services involves advising companies and investors in the purchase, sale and mergers of businesses.  The services provided include forming and funding start-up companies, buying and selling practices, assets, divisions and companies, engaging in private stock offerings and re-sales, structuring venture capital financing, forming off-shore sales and sourcing entities, structuring commercial and partnering transactions and syndicating real property acquisitions.

Business Litigation:
Business litigation is the area of law that provides assistance in the preparation and presentation of a lawsuit or other resort to the courts to determine a legal question or matter in business situations.  Business can be any activity or enterprise entered into for profit, usually a company, a corporation, partnership or any such formal organization.  Business lawyers advise and represent businesses and financial institutions in such areas as business torts, class actions, complex contracts, financial forensics, government investigations, international dispute resolution, professional relations, real estate disputes, securities and antitrust, technology and intellectual property, professional malpractice, shareholder and corporate governance and telecommunications.  Business lawyers place an emphasis on achieving or defending against pre-judgment remedies, including pre-judgment orders for writs of possession, attachments, temporary restraining orders, and injunctions, as well as arbitration or mediation settlements and monetary compensation resulting from lawsuits.  Transactional business lawyers represent clients in matters relating to, but not limited to, organizational, operational and contractual documents for corporations, partnerships and limited liability companies, commercial transactions, mergers, real estate acquisitions, leasing and development and commercial financing.

Securities Litigation:
In the course of financing their expansion, businesses commonly turn to one or more activities involving the sale of securities, ranging from the funding and formation of start-up companies to buying and selling professional practices, assets, divisions and companies, and engaging in private stock offerings and re-sales.  Businesses may also get involved with such things as structuring venture capital financing, forming off-shore sales and sourcing entities, structuring commercial and partnering transactions and syndicating real property acquisitions.

Mergers and Acquisitions:
The phrase "Mergers and Acquisitions" refers to corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets.  Usually mergers occur in a friendly setting where executives from the respective companies participate in a due diligence process to ensure a successful combination of all parts.  Corporate mergers are often aimed at reducing market competition.  On other occasions, acquisitions can occur through hostile takeover by a "corporate raider" purchasing the majority of outstanding shares of a company in the open market.  In the United States, business laws vary from state to state whereby some companies have limited protection against hostile takeovers.

Technically, what differentiates a merger from an acquisition is how it is financed.  Simply put, a merger is a combination of two companies into one larger company.  A "merger" or "merger of equals" is often financed by an all-stock deal (a stock swap).  An all-stock deal occurs when all of the owners of stocks of either company get the same amount of stock in the new combined company.  The term "demerger" is sometimes used to indicate the effective opposite of a merger, where one company splits into two, the second often being a separately listed stock company if the parent was a stock company.  An acquisition (a larger company buying out a smaller company) can involve a cash and debt combination, or just cash, or a combination of cash and stock of the purchasing entity, or just stock.  In addition, the acquisition can take the form of a purchase of the stock or other equity interests of the target entity, or the acquisition of all or substantially all of its assets.

Franchises and Other Types of Business Marketing:
A great many small businesses in the marketplace today are operated not as purely independent businesses, but as franchises, distributorships, or any of various types of licensing arrangements.  All of these businesses are created through written agreements containing express and implied warranties, and it is not uncommon for issues to arise resulting in litigation.

Government Regulation:
Businesses often find themselves at odds with one governmental agency or another, whether it be the local zoning commission, the federal Environmental Protection Agency, the Federal Trade Commission, or any one of several hundred other federal, state and local agencies.  Conflicts with governmental agencies are usually covered under state and federal statutes, and also under state and federal regulations and local ordinances.  As a general rule such conflicts are litigated before administrative tribunals under administrative law.  This usually imposes fewer formal requirements on the parties and produces a quicker result, but sometimes it does so at the expense of someone’s rights.  If you feel that your rights have been violated in an administrative hearing that has gone against you, the judicial system will consider an application for relief, based upon allegations that there was an abuse of discretion in the holding against you.

Breach of Fiduciary Duty:
The formation of a "fiduciary relationship" begins when someone places special confidence and trust in another who has substantially superior knowledge and training, and also relies on that person to act in his or her best interest.  If this trust is knowingly and voluntarily accepted, a “fiduciary” relationship is said to exist.  This places a legal duty on the stronger of the two to act diligently in the best interest of the weaker party and never, under any circumstances to secure any advantage at the weaker party’s expense.  There are a limited number of circumstances in business transactions where a fiduciary relationship comes into play.  Courts tend to rigorously enforce fiduciary duties, and in the event of a willful breach often award punitive damages as well as compensatory damages.  Some common examples of fiduciary relationships are a trustee-beneficiary relationship, a doctor-patient relationship, a lawyer-client relationship and a corporate officer-stockholder relationship.

Sales Commission Disputes:
In avoiding sales commission litigation there is no substitute for an artfully drafted agreement spelling out precisely how and at what rate sales representatives are to receive commissions.  Common usage and custom are also taken into consideration by courts in determining the issues, even where there is a written agreement.

Trade Secrets:
A trade secret is any information that can be used in the operation of a business or other enterprise and that is sufficiently valuable and secret to afford an actual or potential economic advantage over others.  Trade secret difficulties can be eliminated or, at least, minimized by effective legal language in employment and/or severance agreements, but situations will still arise from time to time where litigation presents the only viable solution.

Litigation and Dispute Resolution:
Commercial disputes often become legal disputes, the resolution of which typically proceeds along an escalating scale of confrontation ranging from informal settlement negotiation to hardball litigation.  An effective business litigation attorney must have complete mastery of this complex and challenging field of law, but more than that, he or she must also have the patience and personal skills to operate on an informal level, and the aggressive forensic ability and tenacity to claim victory in the courtroom.

Alternative Dispute Resolution:
Business disputes can be resolved traditionally, by way of litigation.  This involves the filing of a lawsuit in court that is then answered by the defendant.  Over a period of months and sometimes even years, a lawsuit makes its way through the system, ultimately to be decided by a judge sitting alone, or by a jury, presided over by a judge.  It is an expensive, tedious and time-consuming process.  The modern trend in the economic world is away from the courthouse in favor of one or the other of two less formal, less expensive, faster and more efficient methods of conflict resolution, called "mediation" and "arbitration".

Mediation:
Mediation is one form of Alternative Dispute Resolution that is gaining in popularity in business litigation matters.  In this process the parties jointly select a mediator, usually a lawyer known by both sides to be honest and fair and, more importantly, known to have experience with the type of issues involved in the mediation. Each side submits written factual summaries to the mediator, together with any legal citations that seem appropriate.

There is a meeting, usually at the mediator's office. The mediator meets first with both sides, inquiring whether or not there has been any progress toward settlement, and if so, he or she may invite the parties to use his office to discuss the matter further. If they decide to do that the mediator usually leaves the room for a time, to give both sides a chance to communicate freely. Upon returning, if the parties have not reached any agreement, the mediator will meet with one side separately, commenting on that side's factual summary and legal citations, expressing an opinion as to the probable outcome if the issues are litigated, and finally, making a recommendation with regard to settlement. Then the mediator meets with the other side, separately, and repeats the process. The mediator gives both sides an opportunity to meet with their respective attorneys and discuss the mediator's interpretation of the case and settlement recommendations. Then all come together again and the mediator attempts to urge both sides toward a common ground of settlement approximating the recommendation he or she has made. Frequently, the parties will reach a settlement agreement, either on the terms recommended or upon some other and different terms. The mediator has no authority to impose a settlement, so the parties remain free to resolve their dispute in court.

Arbitration:
Arbitration is a method of Alternative Dispute Resolution. In this process, the parties jointly select a lawyer to act as arbitrator. The idea is to choose someone with an outstanding reputation for personal and professional integrity, with heavy litigation experience involving cases similar to the one in which the parties are currently involved. The parties may select either "binding" or "non-binding" arbitration. Some lawyers discourage their clients from participating in "non-binding" arbitration, seeing futility in the expense and inconvenience of a process that may prove a waste of time. Other attorneys discourage their clients from participating in "binding" arbitration, so that their options are preserved in the event of an unreasonable adverse ruling by the arbitrator.

Arbitration is more like a trial than is Mediation. For one thing, in binding arbitration the arbitrator's decision is virtually the same as a judgment. In both types, however, the arbitrator actually renders a decision, as opposed to simply making a recommendation. Each side submits an arbitration brief, containing a summary of relevant facts, a list of the legal issues thought relevant, and reference to the applicable law.  There is a hearing in the nature of a trial, but much less formal. It is usually held at the arbitrator's office. Sworn testimony may be offered, subject to cross-examination. The attorneys usually join in a stipulation agreeing that certain specified facts are not in dispute.

The rules of evidence are less rigorously applied in arbitration hearings than in trials. Sometimes the arbitrator announces a decision at the end of the hearing, but more often, the case is taken under submission by the arbitrator, the decision being communicated by letter to both sides within a week or two. The arbitration process takes a lot of pressure off the court system, and it has proven itself as an effective alternative method for the resolution of disputes.

Employment Law:
Employment law is a growing and ever-changing body of state and federal statutes, rules, regulations, ordinances, judicial precedents and administrative rulings touching on the legal rights and obligations of employers and employees, and of their respective affiliated organizations. One or another aspect of employment law affects virtually every facet of commercial activity in the modern marketplace.

Software:
Computer software issues are among today’s fastest growing areas of business litigation. This burgeoning commercial field is broad-based, spanning many levels, including software licensing, maintenance and support, source code escrow, as well as end user licensing, patent and other technology license agreements. High-tech business litigation also involves software development agreements, purchase and supply agreements, manufacturing agreements and non-disclosure agreements.

Real Estate Financing and Transactional Services:
Typically, as they expand, growing businesses become more and more involved in real estate transactions, ranging from office space to retail store properties to warehouses and shopping mall syndication.  A qualified business lawyer can provide valuable assistance in traditional real estate purchase, sale and leasing transactions, and in dealing with environmental and various other issues arising out of industrial and agricultural redevelopment projects.

Real Estate Negotiations:
In major financial transactions, especially those involving real estate properties, it’s important to have a knowledgeable negotiator working for you, one who knows the law and whose loyalty to you is undivided.  Real estate brokers and agents depend on sales commissions for their livelihood.  If the sale does not occur they receive nothing for their time and energy, and this can create a conflict of interest.  You need someone representing you who is less concerned about a particular sale going through than with making certain your legal rights are protected.

Title Clearance Issues:
In large urban centers title insurance has reduced the need for in-depth title searches by real estate lawyers, but this is not necessarily the case in rural areas of the state.  As with any other insurance policy, title insurance documents are usually packed with disclaimers of one kind or another, all in highly technical real estate jargon and legalese, and all set forth in the tiniest of fine print.  Failure to fully understand the import of a particular clause or disclaimer in the policy can result in financial consequences at some later date, when it may be too late to do anything about it.  If you find things in the title policy you don’t understand, your real estate attorney can explain them to you and can also point to you any items that need to be challenged and resolved.  Given the amount of money involved in modern real estate transactions, it is critical to make certain that title problems are not going to make the deal a disaster.

Quiet Title Matters:
Sometimes a particular piece of real property has title defects of such significance that no sale or other transfer of ownership can occur until they are resolved.  The usual method of clearing title defects is a lawsuit called a “Quiet Title” action.  In the Quiet Title action, the Court would receive and consider evidence on the issue, and if satisfied that the judgment had been discharged, would issue an order dissolving (removing) the judgment lien.

Mechanic’s Liens:
When doing building construction or repairs, building contractors often utilize a legal device called a “mechanics lien” as a means of making certain they will be paid for their labor and materials.  The creation of a mechanic’s lien involves written notice to the owner of the property and other formal requirements, and its enforcement is subject to strict procedural rules. Once a valid mechanic’s lien attaches to the property, however, it operates as a claim against the property which, if it remains unpaid, can ultimately result in foreclosure proceedings.

Real Estate Document Preparation:
Whatever may be said during real estate negotiations, whatever promises may have been made, it is the final written documents that will control what happens.  Many of the closing documents involve the completion of pre-printed forms, but sometimes the details of a particular transaction require modification of a form to provide adequate protection.  Your real estate attorney can either prepare all of the documents, or can review the documents that have been prepared, explaining them to you and suggesting changes, as needed, for your benefit.

Closing Attorney Representation:
The majority of transactions are concluded routinely, with no unanticipated problems and as it may well appear after the fact, no need for legal representation during the closing.  There is no legal requirement for representation by counsel at the closing, but most lenders and prudent investors will do so.  It is at closing that critical disputes often arise concerning the language in a particular clause or some other technical aspect of the transaction.

Sales Breach Issues:
Once a written agreement has been executed by both parties to a real estate transaction its provisions are legally binding.  Which judicial remedies, if any, may be available for the breach of the agreement depends on a variety of factors.  There may, for example, be remedies available to the Buyer if the Seller breaches that are not available to the Seller, if the Buyer is the breaching party.

Land Development Issues:
Land development projects grow more difficult and complex with each passing year.  Your real estate lawyer can guide you through the labyrinth of zoning regulations, environmental agency requirements, building, fire and safety codes and the various other requirements for doing business in this complicated field of real estate.

Foreclosure Issues:
When mortgage payments fall behind, the lender may ultimately take steps to foreclose.  Sometimes the best course is to seek temporary relief in the United States Bankruptcy Court.  Since the mortgage is a “secured” debt, it cannot be discharged in bankruptcy.  The filing of a bankruptcy petition triggers an automatic federal court order temporarily staying (suspending) any pending foreclosure sale.  With the additional time provided by the stay, the defaulting borrower can often make arraignments to sell the real property for a much higher price than would be obtained in a foreclosure sale.

Essentially, a foreclosure sale involves sale of the real estate at public auction.  The proceeds of the sale are then applied against the debt owed on the mortgage.  Any funds remaining after the mortgage (and the foreclosure costs) are paid will be transferred to the defaulting borrower.  What happens when the proceeds of the auction sale are insufficient to pay off the mortgage and/or the foreclosure costs depends on the law where the property is located.

Eminent Domain Proceedings:
Eminent Domain proceedings are used by governmental agencies to acquire real estate (even when the owner doesn’t want to sell it) for use in a project of some kind for the general public benefit.  A recent decision by the United States Supreme Court has greatly expanded the discretion of state and local governments to seize property, even when they do so for the benefit of a private company, if they feel the project contemplated by the private company will benefit the public.  In mounting a defense to an eminent domain action, the landowner can resist the seizure itself, and can also challenge the dollar amount the agency is willing to pay for the land.  The landowner in an eminent domain proceeding is entitled to the fair market value of the land.

1031 Exchanges:
Internal Revenue Service Code §1031 provides a means for deferring the capital gains tax consequences of a real estate transaction when the proceeds of sale from one transaction are to be promptly reinvested in another similar type property.  The key word here is “deferral".  What happens is that the tax basis of the old property is transferred to the new, so that when the new property is ultimately sold, the tax will be due.  Of course, if the second property is also sold under a 1031 exchange, the tax will be deferred yet again.

Zoning & Land Use Issues:
Zoning and land use laws come into play in every real estate development, whether large or small.  Before buying real estate property or making major improvements to property you currently own, it is absolutely essential that you know about and understand the existing zoning and land use restrictions.

As a general rule, specified land uses are compatible.  You cannot, for example, put in a dairy herd, a shopping mall or an office building on land zoned for residential use.  It is sometimes possible to persuade local authorities to change the zoning for a particular area, but it can be very difficult, very expensive and it can take a long time.  In some cases it is possible to secure a zoning variance.  A variance is in the nature of an “exemption” for the particular parcel of real estate, from a particular zoning requirement.  Zoning changes and variances both involve extremely complex and difficult legal and political skills and often require public hearings before governmental agencies.

Condominium Conversions:
The upsurge in land values in recent years has contributed to the growing popularity of condominium living.  More and more people, especially first time home buyers, are turning to condominiums for their first real estate investment.  As the cost of building materials and construction labor has increased, so has the interest in the conversion of mobile home parks and apartment buildings into condominiums or cooperative corporations.  Condominium conversions can be extremely profitable, but they are long-term projects, sharply regulated by state and local legislation.

Condominium Association Matters Including Common Area Fee Recovery:
While Condominium Associations are autonomous, they must comply with state and federal law and with the provisions of their own bylaws.  A qualified real estate lawyer can provide timely and useful advice to Condominium Associations so that they may accomplish this purpose.  Association officers can be held individually responsible if the Association fails to comply with the law.

If you or someone you know in Oregon or Washington needs the assistance of an experienced Portland Business Lawyer, call Attorney Bryan Murphy today at 866-738-5099, or complete the contact form provided on this site to schedule your free consultation.

• Santa Clara University, B.S., 1984
• University of Oregon School of Law , J.D., 1989

• Oregon
• Washington
• State Courts in Oregon and Washington
• U.S. District Court for the District of Oregon
• U.S. District Court for the Western District of Washington
• U.S. District Court for the Eastern District of Washington

• Oregon Bar Association
• Washington State Bar Association
• Multnomah County Bar Association
• American Jurisprudence Award - Secured Land Transactions