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BUSINESS Friday 24 august 2018
A25

Lawsuit protocol: Call attorneys, but take time for business

By JOYCE M. ROSENBERG contract issues and unpaid
Associated Press invoices have taught David
NEW YORK (AP) — When a Jackson to set some men-
small business is involved in tal boundaries while a case
a lawsuit, an owner's con- is going on.
cern can't only be about "You have to be careful not
winning or losing — it also to allow it to distract you.
has to be about making It can take over your mind
sure the company stays on and where you're focusing
track. your emotional energy on
Owners who have been a daily basis," says Jackson,
sued or who brought law- CEO of FullStack Labs, an
suits themselves must meet app and software devel-
with lawyers, gather evi- oper in Granite Bay, Cali-
dence and sometimes give fornia.
depositions. If they have He tries to hand the cases
employees whose testimo- over to his attorney, or, if he
ny is needed, bosses must needs help from the staff,
spend time with them ex- asks one employee to be
plaining the situation. The responsible for securing
time and energy it takes documents and making
can be a huge disruption sure deadlines are met.
to normal operations. "You want to see justice
"It was like I had to take happen, but you have to
on another job — being understand it's not a good
a defendant. It probably In this Friday, Aug. 17, 2018, photo David Jackson, Chief Executive Officer of FullStack Labs, poses use of your time" as an
added three hours to my for a photo in the company's office in Granite Bay, Calif. owner to concentrate on a
day," Burke Files recalls of Associated Press suit, Jackson says.
the lawsuit brought against FullStack Labs has settled
his company, Financial Ex- focusing on running the attorney with Ansell, Grimm eral managers and Lang its suits, something Jackson
aminations & Evaluations, company, and he esti- & Aaron in Woodland Park, himself to wade through attributes to open commu-
in 2010. Another business mates that the case cost New Jersey. The vast ma- more than 100,000 emails nication with opponents. "I
charged Files' company him more than $500,000 in jority of business cases are and other records at House think we're justified, I think
with libel because of infor- lost business and $15,000 in settled before going to trial, of Travel in Aventura, Flori- we're going to win, but I'm
mation one of his employ- legal costs. The firm, which he says. Still, the compa- da. open to settling," he tells
ees posted on a website investigates companies' nies do go through discov- Lang found that meetings them. Faced with mounting
unconnected to Files' Tem- finances, prevailed nine ery, the process of sharing with his attorney ate up lawyers' fees, both parties
pe, Arizona-based firm. months after the suit was documents and evidence, more time than expected, have come to an agree-
Files hired a legal clerk to filed, when its opponent and often depositions are and that cut into time he ment in each case.
read and gather docu- dropped the case. taken. could spend with clients. Patent infringement suits
ments, but oversaw the Although lawsuits brought Lawsuits brought by current A two-hour meeting at a have become part of the
litigation himself and still by other companies can or former employees can lawyer's office meant four business at MONKEYMe-
had to go through com- be distracting, they tend be devastating to a small to five hours out of his day dia, which researches and
pany's records in search of to be less time-consuming business, especially when with travel time, he says. develops virtual reality and
evidence: "all the commu- and disruptive than prod- other staffers are deposed, House of Travel won the other video and sound
nications for the past five uct liability suits or cases Bauchner says. "It can be case, but Lang felt he had technology, but the firm is
years of every single person brought by employees for invasive into the company's to make adjustments. After the one bringing the suits,
in the firm." harassment or back pay, operations and it can be in- nearly 30 years of using the often against big entertain-
The lawsuit kept Files from says Joshua Bauchner, an vasive to its personnel," he honor system when it came ment companies. q
says. "There's a loss of pro- to staffers' hours and work-
ductivity because every- weeks, Lang implemented
one's on pins and needles." a system of clocking in and
US new-home sales fell 1.7 Jerry Lang's travel agency out.
percent in July was sued for back pay by "The lawsuit made us
a former staffer who quit change our whole culture
following a dispute. Lang from one of family to being
By JOSH BOAK 654,000 in May. Despite estimates it took more than a business," Lang says.
WASHINGTON (AP) — Sales the slowdown, new-home 1,500 hours of work by sev- A half-dozen lawsuits over
of new U.S. homes slumped sales have risen 7.2 percent
1.7 percent in July, the year-to-date.
second straight monthly Steady hiring gains and
decline as the broader signs of stronger econom-
housing market appears to ic growth have boosted
have lost some of its mo- demand for housing. But
mentum despite an other- higher mortgage rates and
wise solid economy. a tight inventory of homes
The Commerce Depart- on the market has made
ment says newly built affordability a challenge
homes sold at a season- for many would-be buyers.
ally adjusted annual rate of The average sales price
627,000 last month, down has risen 5.8 percent from
from 638,000 in June and a year ago to $394,300. q