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Category: Civil Litigation

Collection on Accounts Receivable

Commercial Litigation Lawyer Miami

Account Receivables Collection

While I have written many posts about the firm’s post-judgment collection practice, were you aware that Andre Law Firm P.A. does account receivable and pre-judgment collection as well?  I am often retained by small business owners (and even other law firms) to collect on their delinquent accounts.  This is among the most rewarding work I do.  As a small business owner myself, I feel a lot of kinship with fellow small business owners, so helping them collect what they are owed for their hard work is especially fulfilling.

Attorneys’ Fees Provisions

One potential pitfall I constantly warn my small business clients about is the importance of having an attorneys’ fee provision in their contracts/invoices/terms and conditions.  I have had clients justify excluding these provisions for fear of sounding too “litigious.” The bottom line is that if your delinquent account is fairly low (under $5k for instance), attempting to litigate to recover that amount without an attorneys’ fee provision is usually not cost effective.  That means you will likely spend your valuable time trying to figure out how to collect in small claims court on a pro se basis. 

I have a new client that tried navigating small claims court themselves on several of these types of cases only to be stymied by relatively basic rules of procedure and the machinations of the litigation process. While one of these delinquent accounts you might consider writing off, having a few of them really adds up against your bottom line.  With an attorneys’ fee provision (and assuming the debtor is collectable), you can have a lawyer litigate the matter for you, and you can concentrate on serving paying clients and generating new business.

Do you have delinquent accounts you need to collect on?  Andre Law Firm helps small businesses recover these accounts, in an efficient and cost-effective manner.  Contact us today to discuss your AR needs.

Limited Liability Company Member Disputes

Commercial Litigation Lawyer Miami

Unsigned Operating Agreements are Enforceable in Florida

Did you know in addition to collection work Andre Law Firm P.A. has a thriving civil litigation practice?  While the firm is best known for collections practice, it also handles business litigation disputes and general civil matters.

An issue that recently came up with one of the firm’s valued clients involves a case where there was a dispute between the members of a limited liability company.  Often such partnerships are handled somewhat informally (the dreaded “handshake” or “gentleman’s” agreement).  In this case the client had an operating agreement the parties had negotiated, but they never got around to signing.  The parties did business together for several years, and only years later did a conflict arise.  The agreement as contemplated greatly benefited our client, but a signed copy did not exist.  Does the contemplated operating agreement control when it is not signed?

Operating Agreements are not Subject to Statute of Frauds

An operating agreement in an LLC is contract, a contract that almost always is contemplated to go into perpetuity (fingers crossed right?).  Contracts longer than a year are usually subject to the “Statute of Frauds,” which is codified as Fla. Stat. 725.01.  It basically states that certain contracts to be enforceable must be in writing (contracts for real estate, contracts longer than one year, etc.) Contracts are also in large part, bilateral, meaning the assent of both sides is necessary to make the contract binding.  That assent is usually represented by the signature of the parties to the contract.

The LLC Statute

Operating Agreements, by statute, do not have this signature requirement.  The LLC statute in Florida is governed by Chapter 605 of the Florida Statutes.  Section 605.0106 establishes the enforceability of an operating agreement in the state, clarifying that the operating agreement is not subject to any “statute of frauds” (other than capital contribution obligations), along with a host of other situations where the unsigned operating agreement will be deemed fully enforceable.  An unsigned operating agreement could even allow for the inclusion of new members, if certain conditions in the operating agreement are met.

While the very best practice is to have your (skilled) attorney draft and have the parties sign the operating agreement prior to formation of the LLC, this bit of knowledge about the LLC saved our client a ton of money.

Do you have a business litigation dispute that needs attention? Contact Andre Law Firm today.