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Firm Trial Victory in Cobb State Court - Who is Liable on a Contract?

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During the week of March 22, 2010, Attorneys Chapar and Strickland successfully defended a firm client in the State Court of Cobb County. 

The client was sued on an alleged contract, but maintained that it was not the proper party.  The case involved determining who was liable on a contract when the contract did not actually name an existing legal entity in the precise way the entity was shown on state records.  The Chapar Firm was able to convince the Court that the contracting party was NOT the defendant in question.

The case provides a caution and reminder.  As a general matter, only parties to contracts are liable on them.  However, if the contract does not name either a real person, or an entity that actually exists as an artificial entity like a corporation or limited liability company, there may exist some legal question of fact regarding whom the parties intended be bound.  Anyone signing a contract in a trade name, for example, runs the risk of being either personally liable or inviting a dispute regarding which of several entities may be the real contracting party.

Of particular concern to those who sign contract on behalf of entities is the need to clearly identify the entity, and to designate by the signature the office of the signer.  For example, the president of a corporation that signs a lease on behalf of the corporation generally should clearly designate the lessee as the corporation itself.  The signer should also place the word "president" next to his or her own signature.  The failure to do that may result in the contract being a personal liability of the individual signer.

The attorneys at the Chapar Firm are prepared to assist you with these or any other issues that arisen in connection with you business.

ChaparLaw Attorney Rebecca Strickland is Panelist at Emory Law

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Chaparlaw Attorney Rebecca Strickland recently was a featured speaker at Emory University's School of Law.  Along with two other noted women lawyers, she spoke on the subject of how attorneys are "Navigating the Economic Downturn."

Anonymous Web Posters

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Practically anyone with Internet access can post a comment on a web page.  Anonymous web posting promotes the free exchange of ideas and opinions. When clients of The Chapar Firm posted true comments on line, a plaintiff filed a lawsuit and had the court issued subpoenas to the web site operator to seek to reveal the identity of the posters.  In that case, The Chapar Firm successfully quashed subpoenas to unmask the "John Doe" posters. 

However, under the cover of anonymity, a web poster may feel emboldened to publish false comments about others.  Even the First Amendment does not permit an anonymous web poster to post libelous comments.  Further, the Terms of Use of a website may restrict what a user may post without implicating the First Amendment.  Some websites prohibit users from posting libelous, defamatory, illegal, obscene, or threatening materials.  Other websites specifically state that one may not post confidential information about someone else.  

When anonymous web posters published defamatory comments about a Chapar Firm client, the Firm successfully convinced the website owner to remove the defamatory comments without resorting to legal action.  The Chapar Firm  invoked the Terms of Use of the website which specifically prohibited defamation.  When subsequent defamatory comments were posted, The Chapar Firm demanded that the post inspiring the defamatory comments be closed to commenting.  The website complied.

 

Firm Sucessfully Defends Foreign Distributor Sued in Georgia

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Attorneys Chapar and Strickland secured the dismissal of a case filed in Georgia against a foreign corporation, due to lack of personal jurisdiction.  The case was filed against a foreign sub-distributor, the Firm's client. 

The plaintiff, a foreign distributor, sued the foreign sub-distributor for breach of contract, unjust enrichment, and tortious interference with contract.  The contracts giving rise to the causes of action were all executed and performed outside of the United States.  Plaintiff brought suit in Fulton County, Georgia, based on its contention that a few internet sales had been shipped to Georgia and that a few products had been offered for sale in Georgia.

In Innovative Clinical & Consulting Services, LLC v. First National Bank of Ames, Iowa, 279 Ga. 672, 620 S.E.2d 352 (2005), the Georgia Supreme Court held that business activity can form the basis of personal jurisdiction. 

Nonetheless, the Firm successfully argued that personal jurisdiction did not exist in this case because the alleged contacts with Georgia were unrelated to the cause of action and were not relevant to the jurisdictional analysis.  The defendant in this case did nothing to solicit the sales from customers located in Georgia and did not negotiate with the customer regarding the sales.  Rather, it simply fulfilled orders.  As such, the Firm argued the defendant did not purposefully direct any actions or transactions at Georgia.  The court agreed and dismissed the entire action.

There was no appeal.

Attorney Hazday and Latin America

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Our counsel, Attorney Salomon Hazday, continues to provide assistance to the Firm’s clients with in business transactions of all types.  Notably, he offers special experience with Latin American transactions.  He has built upon his significant experience handling technology deals throughout South America, including Brazil.

The Chapar Firm, LLC

945 Bank Street, Suite B
Conyers, Georgia 30012
770-483-4115
firm@chaparlaw.com