Law Blog

Doctor Should Have Employment Contract Reviewed before Signing

Contracts
The other day a new physician came in to see me. She had just completed her residency and entered into an employment agreement with a local employer. During negotiations, her future employer had verbally agreed that she would only be required to work a certain number of hours per week on various duties like seeing patients, teaching residents, etc.  Perhaps thrilled at the prospect of a job (and gettting paid!), the young doctor took her employer at their word and signed her employment contract without having it first reviewed by an experienced attorney. After just the first week, however, it became clear that the hours she was being scheduled for (and number of patients she was being asked to see) were well above what she had previously agreed to during pre-employment…
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Due Diligence Essential for Businesses When Leasing Space

Due Diligence Essential for Businesses When Leasing Space

Commercial Leases, Contracts, Real Estate
All too often in the commercial real estate world, we think about due diligence strictly as it applies to the purchase of commercial property or land. However, doing thorough due diligence can be just as important for a business looking to lease commercial space (whether office, retail, or industrial). A recent case that came to our office illustrates this. The tenant was a business looking to move into an older yet upscale retail shopping center in North Scottsdale. The tenant had been unhappy in their current location and with their current landlord and its property manager for many years. They were eager to move and the space at issue was a second floor one in the shopping plaza they had been dreaming about moving to for awhile. The tenant's business…
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LLC Operating Agreement should clearly spell out Ownership Interests

LLC Operating Agreement should clearly spell out Ownership Interests

Business Formation, Entity Formation, Limited Liability Company, Operating Agreement
A situation that came to us recently highlights the importance of having ownership percentage interests spelled out clearly in your Arizona limited liability company's Operating Agreement. Jay and Pat: a cautionary tale A person we'll call “Jay” was in business with his partner “Pat”.  The two had met because their kids were in after school activities together.  It turns out Pat had a great product but lacked people skills and was not much of a salesperson.  Jay, on the other hand, loved people and was born to sell.  After sampling the product one day, Jay asked if he could sell the product for Pat and receive a percentage of sales.  Pat thought that this was a great idea, to the point of turning around that very day day and forming an…
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LOI LOL: Solid Letter of Intent Key to Reducing Legal Fees

LOI LOL: Solid Letter of Intent Key to Reducing Legal Fees

Commercial Leases, Contracts, Legal Fees, Letter of Intent, Negotiation
Business owners who lease retail, office, or other commercial space can help themselves save time, attorney's fees, and heartburn with their commercial landlord by agreeing upon the terms of a letter of intent ("LOI") before having their attorney draft or review a form of lease (or really any major contract). A situation recently came to our Phoenix business law firm which highlights the importance of getting an LOI mutually negotiated and agreed upon and, if possible, signed by the parties before taking it to a lawyer to prepare the lease. This retail tenant ("Tenant") wanted to enter into a new lease of Class-A shopping center space on a busy corner of central Scottsdale. Presumably to save some money, Tenant decided to skip using an attorney early on in the negotiations,…
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