Business disputes can take a while to sort out. In fact, some complex cases can take years to resolve. While you and your business certainly need sound legal representation as you try to negotiate settlement in your case, the issues aren’t necessarily resolved once an agreement is reached.
This was recently seen with a Alfasigma, a Louisiana-based medical foods provider that creates meals with nutritional value aimed at those suffering from certain medical conditions. Alfasigma, which has ties to the Swiss giant Nestle, reached a settlement agreement with a pharmaceutical company in 2014 after that pharmaceutical company was accused of making and selling generic versions of Alfasigma’s meals that were below applicable quality standards.
As part of the settlement, the pharmaceutical company agreed that two individuals at the company would refrain from assisting any business from making generic versions of Alfasigma’s products.
Now, however, Alfasigma claims that the settlement agreement has breached because those two individuals have been named to executive positions at a company that makes generic Alfasigma products. The claim further alleges that the two individuals are active in the company’s research, development, and marketing of those products that were specifically mentioned in the settlement agreement.
As a result, Alfasigma claims that the two individuals have induced their new company to breach the terms of the settlement, thereby causing financial harm to Alfasigma since sales have been diverted away from it.
What this means for you and your business
So, what does all of this mean for you and your business? There are two big takeaways. The first is that you need to make sure that you are negotiating strong settlement agreements that have clearly understood terms. These terms can’t be vague or ambiguous, and they need to be as detailed as possible, taking into account every foreseeable circumstance that could have implications for your company. Only by creating one of these thorough and comprehensive settlement agreements can you ensure that you’re protecting your business’s interests as fully as possible.
The second takeaway is that your legal issues aren’t resolved simply because you settle your case. After settling, you need to make sure that you’re policing the agreement and taking action against those who violate that agreement. That means that you’ll need to be on your toes and stay aware of what is happening in the marketplace, referring back to the settlement agreement as often as necessary to ensure that you’re protecting yourself as fully as possible.
How an attorney may be able to help you
Experienced commercial litigation attorneys know what to expect from these types of cases. Therefore, they’re able to give you a realistic idea of how your case will progress and what the potential outcomes may be.
Additionally, one of these skilled advocates will know what to look for in a settlement agreement, anticipating every possible thing that could go wrong in your circumstances and creating terms that address each of them. If, following resolution of your case, you find an issue, then your attorney can help you craft the compelling legal arguments that you need to take your case back to court, fight to impose liability, and present strong evidence of the extent of your damages.
We know that facing commercial litigation can be stressful and costly. But you can and will get through your dispute. The question is whether you’ll do so in a way that saves your business money and goodwill, or if you’ll be subjected to an outcome that is more harmful than you ever imagined. If you want to secure the former for your business, then now may be the time to speak with one of these skilled legal professionals.