Miami Business and Commercial Law Blog

When Florida lenders act in bad faith

On behalf of Payton & Associates, LLC posted in Commercial Real Estate on Friday, May 17, 2019.

When companies in Florida look to expand or move into a better space for their operations, they may decide to purchase commercial real estate. This can be a very important decision for the company and one that needs to be done carefully. There are also many steps to the process, but it usually starts with securing the money for the purchase through lending. This is usually secured from a bank or other lenders. This can be a complicated process by itself, but both sides are expected follow the terms of the contract.

Oftentimes people hear about borrowers breaching the terms of their loan, most commonly because they fall behind on monthly payments. However, the lenders can also be liable if they act in bad faith. Sometimes lenders fraudulently induce the contract, or the terms were not mutually agreed to by both parties. This can occur if the lender purposely misleads the borrower about the terms of the agreement. Another way that lenders breach is by improperly selling collateral used to secure a loan if the borrower defaults on the loan.

Hertz did not receive proper services in breach of contract claim

On behalf of Payton & Associates, LLC posted in Contract Disputes on Friday, May 10, 2019.

There are various different contracts that companies enter into in Florida. Some of these contracts involve buying tangible goods and products from another company. Other times the company is paying another company to perform various services for the company. However, business contracts oftentimes involve large sums of money, and companies expect that the contracts will be followed. They expect that they will receive what they paid for when they entered into the contract.

Hertz car rental company claims that the marketing company that they hired to update their website and mobile apps did not do what they were hired to do. Hertz filed a breach of contract lawsuit against the marketing company after paying $32 million for services that were never provided. The launch of various aspects of the project were delayed and the marketing company asked for hundreds of thousands more to complete a part of the project that was a part of the original contract. They also failed to develop a product that would be compatible with all aspects of Hertz's business.

Statute of limitations for a contract dispute

On behalf of Payton & Associates, LLC posted in Contract Disputes on Thursday, May 2, 2019.

There may have been a time when people in Florida would make agreements based on conversations and a handshake. Some may wish this was a viable option for operating a business. The reality is that people and businesses need to have written contracts. It is the written agreement that proves the terms of the deal. Written contracts are easier to enforce than oral agreements. A written agreement aids its enforcement.

Officer and director duties of care and of loyalty

On behalf of Payton & Associates, LLC posted in Business Litigation on Thursday, April 18, 2019.

Companies in Florida vary greatly in size and therefore they vary greatly in the number of employees working for them. These companies need people to manage the employees and to do this they hire managers and other officers of the company to ensure everything runs smoothly. These officers can include chief executive officers, chief financial officers, chief operating officers and many others who may be underneath the top levels of management of the company.

These officers have a duty of loyalty and a duty of care to the company. These duties may be breached when the officers stop acting in the best interests of the company and instead starts acting in their own best interests. Directors must act in good faith in the best interests of the company as a normally prudent individual would act in the same capacity. Officers have a duty to perform their duties as stated in the bylaws of the company or in a manner consistent with the direction of the board of directors or other officers in accordance with the bylaws.

Four red flags to spot before a construction dispute

On behalf of Payton & Associates, LLC posted in Construction Litigation on Friday, April 12, 2019.

Construction projects hold a considerable amount of potential and promise for project owners; you are bringing to life a new space, from the ground up. Whether it's residential or commercial space, you are ultimately creating a new, engaging environment.

However, construction projects also bring several moving parts that may result in a significant dispute. As the project owner or property manager, you need to be able to identify potential red flags in a project before it becomes a severe issue.

Main types of construction defects that may lead to lawsuits

On behalf of Payton & Associates, LLC posted in Construction Litigation on Thursday, April 11, 2019.

There are construction projects occurring every day in Florida. Many homes, offices, apartment buildings and other buildings are being built and there are many designers, construction companies, suppliers and construction workers that are involved in these projects. There are also many different phases of the project and different companies that complete these various phases. This means that there are many different things that can go wrong throughout the project.

At the end of the project, it may be discovered that there were different construction defects due to the mistakes that were made during the project. The defects can result in significant damage and be very costly to the owner of the buildings. The owner may be able to recover compensation for the damages caused by the defect. However, as there are different phases of the project, it is important to know who was responsible for the defect in order to pursue compensation.

Factors used to determine tortious interference with contracts

On behalf of Payton & Associates, LLC posted in Business Torts on Thursday, April 4, 2019.

One of the basic principles of the economy in Florida is that there is competition. Therefore, there are many businesses who offer the same or similar services and products. This gives consumers choices to pick the product that best fits their needs and budgets. It also creates competition between companies to produce better products or services at competitive prices. However, this competition can also cause companies to try to gain an advantage over other companies any way possible.

This can include doing things outside the bounds of fair competition. One way companies do this is through tortious interference with contracts. This is essentially intentionally inducing a person to break a contract with a third party, which causes the company to suffer economic damages. There are certain factors that one must prove though in order demonstrate that there was in fact tortious interference. One of these factors is that the interference with the contract was improper.

David Beckham seeks real estate deal in Fort Lauderdale

On behalf of Payton & Associates, LLC posted in Commercial Real Estate on Thursday, March 28, 2019.

Former soccer star David Beckham and his group of investors have been in negotiations in south Florida to build a soccer stadium for a Major League Soccer (MLS) team. Up until recently the negotiations have been limited to the city of Miami, but recently he and his group pitched a second stadium in Fort Lauderdale and the city decided to move forward with negotiations with Beckham's group's plan over a rival proposal.

The Miami location would be the home stadium for the soccer team, and the Fort Lauderdale stadium would be the practice facility as well as the home to the management offices for the team. Both stadiums would be major real estate transactions, but the Miami location is much larger. The negotiations surround turning a golf course into a mix of office, retail, entertainment, the stadium itself and would also include 60 acres of park space for the city. In contrast, part of what won over Fort Lauderdale was the lack of commercial building that would take place. That site would be limited to the stadium and team offices as well as park space for the city.

Process for determining enforcement of a non-compete agreement

On behalf of Payton & Associates, LLC posted in Business Litigation on Thursday, March 14, 2019.

When companies in Florida are hiring new employees there are many different considerations that go into the decision about who to hire for the job. First they need to determine the work that is required and budget considerations for salaries. Then they need to go through the process of picking the best candidate for the position. After the person is chosen, the company then needs to ensure the new employee understands the benefit packages available and the new employee will likely need to sign employment contracts to define the scope of employment and other covenants that both parties must follow.

One of the covenants that many employers want their employees to agree to when they hire them is non-compete agreements and other restrictive covenants. These are to ensure that employees will not learn valuable information about the company and then move to a competitor and reveal what they have learned. When drafting these covenants, the employer must ensure that they are reasonable to protect business interests and must be reasonably limited in the length and area it restricts, which could be either geographical or a specific type of business.

Costs due to delays could lead to construction disputes

On behalf of Payton & Associates, LLC posted in Construction Litigation on Wednesday, March 6, 2019.

There are many different aspects of construction projects in Florida. The specific requirements and aspects of a construction project depend on the purpose of the building, the size of the building and many other factors. Therefore, architects and engineers design the building to the specifications desired by the owner of the project. Then the construction process begins, the foundation is laid, the basic structure is erected and then the specifics of the interior are completed.

Getting through all those steps involves many different subcontractors and materials needed at each step along the way. These projects take a long time to complete. When the project begins, planning is very important. Usually the contracts state specific timelines for when certain phases of the project will be completed as well as the when the entire project will be done. However, during many construction projects delays occur for a variety of reasons, which usually means that the costs will increase.