Secrets of Mediation and Arbitration

According to Austin-based business lawyer Jack Zinda, of the law firm Heselmeyer Zinda, PLLC, two of the most productive tools for resolving legal disputes are mediation and arbitration.

Mediation is typically negotiation facilitated by a mutual and unbiased third party. Arbitration is a binding resolution process that resembles the results achieved in a courtroom at trial – but with far fewer technicalities and legal niceties entailed. “These are my tools for resolving legal disputes,” explains attorney Jack Zinda of the law firm Heselmeyer Zinda, PLLC, “Without them, resolving many legal disputes would be much more time consuming and expensive.”

Mediation is very different from arbitration, however. “Sometimes the parties are unwilling or unable to resolve a dispute,” Zinda says, “and that’s when mediation can make a real difference.” It’s most often short-term, structured, and task-oriented. “It’s a hands-on process,” according to Zinda. The contentious parties work with a third party, someone as unbiased as possible, who is referred to as a mediator – in an effort to resolve their disputes. It’s up to the mediator to supervise and moderate how and what information is exchanged between the contentious parties so that a genuine bargaining process begins to emerge. “The mediator is adept at discovering common ground that may exist and deal with unrealistic expectations as they arise,” says Zinda, “He’s also likely to introduce creative solutions and assist in the final drafting of a settlement that everyone can live with.”

Arbitration is a much more formal alternative to litigation. Contentious parties are also presenting their case to a neutral third party, but this time the arbitrator renders a decision in the manner of a judge. “Arbitration is generally considered more efficient than litigation because it’s quicker, cheaper, and provides more flexibility,” Zinda notes, “Typically the contentious parties get to choose their arbitrator and exert at least a measure of control over some aspects of the arbitration procedure.” Arbitrators are likely to possess more expertise and specific knowledge of a relevant subject area than mediators – or even judges. Evidentiary rules are not applicable and discovery and cross-examination opportunities are limited, however.

“The best thing about arbitration is that it’s voluntary,” Zinda concludes, “and mediation is always discretionary. In litigation, contentious parties are obliged to take their chances.”

To learn more about Austin business attorney Jack Zinda visit Texasbusinessattorneys.net.

When Business Partners Disagree

Austin-based business lawyer Jack Zinda of the law firm Heselmeyer Zinda, PLLC offers some cogent advice for resolving partnership disputes.

Disagreements between business partners are often difficult to resolve. Many issues can emerge as conflicts. Contracts can be breached, business opportunities can be usurped, trade secrets can be stolen, or funds can be embezzled – with or without impunity. Resolving such conflicts can be time consuming, emotionally draining, and well, they cause stress or worse.

“It happens all too frequently,” says Austin-based business lawyer Jack Zinda of the law firm Heselmeyer Zinda, PLLC, “even the best intentioned business partners often find themselves disagreeing for a multitude of reasons.” Such disputes could arise from a failure to honor fiduciary duties, a failure to fulfill contractual obligations put forth in a partnership agreement, operating agreement or other business contract, trade libel, disparagement of goods or services, disputes among LLC members or perhaps by engaging in clandestine business dealings which don’t happen to coincide with the best interests of the company. “These disputes need to be resolved in an expedient manner. Sometimes an issue that’s arisen can be resolved internally, but most often they require legal help,” Zinda asserts.

If the dispute can’t be resolved internally, other options may surface, including the dreaded one – litigation. Owners of close-knit companies and small businesses will generally want their conflicts resolved as amicably as possible, so that they can return to servicing their customers. Negotiation, mediation, and arbitration are the best ways to avoid litigation. Through these conciliatory routes it’s often possible to arrive at a resolution made, if not in heaven, than in a netherworld that makes sense to all concerned. “When a dispute occurs, the business that you have worked to build and maintain can suddenly be placed in jeopardy,” Zinda explains, “Our goal is to truncate a crisis before it becomes a full-scale crisis.” Through alternative dispute-resolution procedures such as negotiation, mediation, and arbitration, it’s often possible to arrive at solutions that address a business partner’s integrity issues or decision-making authority while still preserving the infrastructure of your enterprise. “What you don’t want to do is throw your firm’s functioning ability out with the nasty bath water that’s been pooling in the office as a consequence of antagonism.”

To learn more about Austin business attorney Jack Zinda visit Texasbusinessattorneys.net.

Business Basics

A certain degree of motivation and talent are required for starting and managing a business – any business. But if certain mistakes are made during the start-up phase, they can be difficult or impossible to erase.

When considering opening a business, you first need to explore and evaluate your personal and business goals. Why are you opening a business? A plan is needed to help obtain your personal and business goals. While developing a plan you’ll be forced to think through important issues that otherwise may have gone unconsidered. This plan will become an invaluable tool as you set out on the adventure of business start-up.

Entrepreneurs open businesses for many reasons. Perhaps the opportunity to gain financial independence through the full utilization of your expertise acquired through an active life intrigues you. Freedom of creativity is another perk of self-management. Some types of business can be run quite successfully from your home, which is a plus for parenting and juggling the omnipresent demands found in at-home settings.

Once a plan of action has been decided upon, a choice must be made. What business would be right for you? Begin with the knowledge and skills acquired from previous work experiences or possibly hobbies or interests at which you have excelled.

After the initial start-up of your plan, it’s usually prudent to identify the niche that your business would fill. When deciding what products or services to offer, keep in mind that competition will exist no matter what your specialty area happens to be. The goal is to offer an advantage the competition doesn’t have.

Other considerations are issues such as legal coverage, insurance, how you will maintain business records, and the equipment necessary for your business to run. It’s also an excellent idea to follow the famous maxim used in the real estate industry: location, location, location. The name that you select for your business is also important. Choose something that makes sense and doesn’t rhyme with “stooges.”

Once you’ve developed a focused, well-researched plan for your business, it will serve as a blueprint for future business operations, management and capitalization. After you have completed your business plan, be sure to review it with a business attorney or else run it by someone who is knowledgeable about YOUR daily business operation. This careful attention to detail will help to ensure success.

Jack Zinda is an Austin business lawyer with Heselmeyer Zinda, PLLC. To learn more about Austin business attorney Jack Zinda visit Texasbusinessattorneys.net.

Rules for Executive Compensation

The federal securities laws require clear, concise disclosure about compensation paid to CEOs, CFOs, and certain other high-ranking executive officers of public companies.

Rules for executive compensation are governed by the federal securities laws. Several types of documents that a company must file regarding their executive compensation policies and practices should be organized within a company’s proxy statement, annual report on Form 10-K, within registration statements filed by the company established to register securities for sale to the public, and also should be contained within the company’s current report on Form 8-K.

In the annual proxy statement, companies must disclose information revealing the amount and type of compensation paid to its chief executive officer and the three other most highly compensated executive officers. Companies must also disclose the criteria used in reaching executive compensation decisions and the type of relationship existing between the firm’s executive compensation practices and company performance.

The cornerstone of the Security and Exchange Commission’s required discourse on executive compensation is The Summary Compensation Table (SCT). In a single location, the SCT provides a comprehensive overview of a company’s executive compensation practices. In larger multinational corporations, these can become somewhat complex in their structure, but will always bear a superficial resemblance to a flow chart. SCTs must include the total compensation paid the firm’s chief executive officer, chief financial officer, and three other most highly compensated officers for at least three previous fiscal years. The SCT is succeeded in order by other tables and precise disclosures containing increasingly detailed information about the various facets of compensation used during the most recently completed fiscal year. Essential to include are grants of stock options, stock appreciation rights, long-term incentive plan awards, pension plans, employment contracts, and related arrangements.

An additional component of a company’s executive compensation dossier is the Compensation Discussion and Analysis (CD & A). Functioning in the manner of an appendix, this section should explain all material elements of the relevant executive compensation programs not yet addressed.

Jack Zinda is an Austin business lawyer with Heselmeyer Zinda, PLLC. To learn more about Austin business attorney Jack Zinda visit Texasbusinessattorneys.net.