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Articles Tagged with business litigation

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recent article discusses an important issue in public pension and health plans — a lack of transparency. I realize this topic is a change from my normal posts discussing personal injury issues such as car accidents and work comp claims. But, it’s an important issue. It’s one important to Alabama. And, it’s one I’ve explored in a recent case representing a local healthcare business in Alabama with significant damages.

While the article discusses public plans in Kentucky, the issues also apply in Alabama. Some of our public plans have similar problems. What are two of the transparency problems we’ve discovered in our case? They are:

  1. Conflicts Of Interest:  Let’s face it – health and pension plans involve complex issues. So, the State often employs “consultants” with expertise in the field. That’s OK. These plans provide long-term benefits to our valued public employees. Expertise is needed. Here’s the problem. In our case, the State’s consultant managed the entire bidding process. He even scored the bids of companies competing for the contract. Yet, while handling the bidding process, he also accepted thousands of dollars from one bidder. And, no surprise, that one bidder won the contract! Although he accepted thousands of dollars and provided the winning bidder with important pricing information, neither the consultant nor the bidder disclosed their relationship. Alabama officials had no idea. The consultant concealed the relationship. Nobody can explain how this provider’s bid was better than the others? The bidding process should be fully transparent and beyond ethical question.
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Independent-sales-representative-300x300My law partner just completed a case for an independent sales representative in Huntsville. While every case is unique, the basic story of manufacturers denying commissions to independent sales representatives is far too common. It is a basic story I addressed previously on this blog. It’s a common story I’ve discussed in numerous articles. As I wrote previously, “what the manufacturer often wants is the profit of a customer relationship with no expense, including the expense of paying the agreed-upon sales commissions.”

In Biblical terms, we often read of sowing the seeds, tending the fields, and then eventually reaping the harvest. The farmer working in the fields rises early. He works countless hours to plant and tend the fields. He earns nothing during this time. Yet, with much hard work (and a little cooperation from the weather) harvest comes. That is the time of reward. It is the same with independent sales representatives.

These representatives work hard for their manufacturer clients. They search for business opportunities. They cultivate these opportunities. They invest years of their own time and resources. Then, only after much personal work and investment, a deal is made that greatly benefits the manufacturer. This is the point when everyone should receive their reward. That means everyone, including the sales rep who worked so hard for the deal. For the sales representatives this means they should receive their hard-earned commissions.

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