An Ounce of Prevention....

Benjamin Franklin coined the old saying, "An ounce of prevention is worth a pound of cure."  It's a piece of wisdom applicable to so many areas of life:  Eating well is much cheaper than a doctor's care later on.  Regular auto tune-ups can save thousands compared to an overhaul.

It's wisdom that applies in the world of small business, as well.  I encourage all of my business clients to make it a habit of consulting with their accountant, insurance agent, banker, and attorney (in that order).  Each of those professionals is trained to spot problem-areas before they turn ugly. 

Unfortunately, what happens too often is that the client was not consulting any of these professionals, and by the time the problem arrives at the law office, it has turned into a nasty business dispute, or full-blown litigation. The problem might have been prevented months or years earlier with an hour or two of consultation with an advisor.

In the legal realm, the issues often include employment contracts (and hiring and firing); misunderstandings about a business partnership (profit sharing; loss allocation; duties of partners; etc.); muddy and vague real estate leases; a do-it-yourself contract for deed (or any other do-it-yourself legal document); disgruntled minority shareholders; and any number of contract disputes. 

Of course, careful planning cannot avoid all future problems......but it certainly is the best medicine to minimize them. 

Whether it is "prevention" or "cure" that you need, the first step is to do something about it.  This month, make it your goal to keep your business heading in the right direction by having a conversation with your accountant, insurance agent, banker, and attorney (in that order).  If you need a referral or recommendation, we know some top-notch accountants, insurers, and bankers.

And, if you're facing a dispute that seems headed for litigation, it is always better to call the lawyer sooner, rather than later.  Often, a creative settlement can avoid a lawsuit entirely.  Or, if a jury trial is unavoidable, the time to begin preparing is right now.

SD Supreme Court Wrongful Death Suit

On September 16, 2009, the South Dakota Supreme Court affirmed an order for a new trial in a wrongful death suit.  The Court held that because a juror discussed his knowledge of a Google search before the trial, the jury was tainted and a new trial was justified. 

In this case, Russo v. Takata Corp., the driver of a Geo Tracker who was driving to school was killed when her car slid off the side of the road and flipped nearly three times.  Because the driver was a minor, her mother brought suit against Takata Corp., a seatbelt manufacturer, alleging that the seatbelt malfunctioned and failed to operate properly.  After deliberations, the jury found in favor of Takata.  

Prior to the trial, a prospective jury member performed a Google search of Takata.  This juror made it through pretrial questioning, and ended up on the jury for the trial.  During deliberations, the juror stated that he had done a Google search of Takata, and discovered that Takata had never been sued before.  Since this information was received outside of the actual case, the Court held that it may have unfairly influenced other jurors.  

The facts of this case are certainly unfortunate.  We often take our children’s safety for granted as they travel to school everyday.  It is the duty of parents to make sure their children wear their seatbelts.  In this case, the parents performed their duty, but the seatbelt manufacturer may have failed to live up to their end of the deal.  This situation is precisely where parents need to reach out to an advocate to ensure the safety of their loved ones.  A verdict in favor of the plaintiff will not bring back the young girl who lost her life, but perhaps it would save the lives of other children in the future.