• Skip to content
  • Skip to primary sidebar
  • Skip to footer

Rob Henry

  • About
  • Business Litigation
  • Personal Injury
  • Contact
  • 📱 Call (817) 877-3303
You are here: Home / Rob Henry’s Fort Worth Attorney Blog – Personal Injury & Business Stories

Rob Henry’s Fort Worth Attorney Blog – Personal Injury & Business Stories

May 2, 2017 By Rob Henry

Methods of Terminating a Business Partnership

There are several ways to end a business partnership. The right method will be different for different situations and different parties.

One popular method for terminating a partnership is a buy/sell clause. In this method one partner will put out a number and the other partner has the option to either buy out the other partner or sell his interest for that amount. This is an effective and equitable method for terminating a partnership. But the problem in this scenario is that often times neither partner can afford to buy the other partner out.

Of course sometimes Court intervention is necessary when there is a break up of an entity or partnership. But it may surprise you to learn that often times a court’s power is very limited. This particularly true, if the business is profitable and still making money despite the fact that the principles are not getting along. A Court will typically not terminate an entity, simply because the partners do not get along.

Another issue that must be addressed in partnership agreements that has to do with the termination of partnerships or other business entities is the withdrawing partner’s ability to start a competing business or work for a competitor. It is important that the businesses have a non-compete agreement for their partners as well as a non-disclosure agreement protecting their confidential and proprietary information. Traditionally non competes were disfavored by public policy. The idea behind them being disfavored is that they hinder competition in the market place. Also Courts want to recognize that the withdrawing partner (for lack of a better term) has the right to make a living. But businesses have the right to expect that partners and high level employees won’t take certain confidential information to a rival business. Courts understand the competing interest at play and recently have showed more of a willingness to give more teeth to non-compete provisions so long as the follow certain parameters.

First of all, for a non-compete to be valid the person must have had access to some type of proprietary or confidential information on which is important to the viability of the business. This can be lots of different things. Obviously it could be something as complicated as a patent or other trade secret but also could be something as simple as a customer or potential contact list. For instance, if Walgreens attempted to enforce a noncompete agreement with a former cashier that recently took a job at CVS, a court would not hold that non-compete agreement enforceable because more than likely that cashier did not have access to any high level information at Walgreens.

Obviously when we are speaking of partners, we are more than likely talking about somebody who has access to confidential information of the business. But it is possible that a scenario could arise where there was a silent partner that was not involved in the operations. If that is the case then it is very well possible that a non-compete would have no effect on him. Regardless it is important that partnership agreements spell out and acknowledge that each partner is privy to certain “proprietary and confidential” information.

Second the clause must be reasonable as to the time and the geographic area. Generally five years for a non-compete is going to be about as long as a court will allow and that may be pushing it. You might be able to find an exception to this here and there but typically that is going to be the long end. I always recommend that the length of time be two to five years. Again at some point in time, the partnership needs to understand that former partner gets to move on with his life and start working again.

Third the clause must be reasonable as the geographic area. A business that primarily serves Dallas/Fort Worth metroplex can reasonably expect to have a non-compete agreement that prevents a partner from competing against them for their business in the metroplex, but a clause that would prevent them from engaging in a similar type of business throughout the entire state of Texas would more than likely get shot down. Generally what I recommend for this is to phrase the clause in terms of preventing the former partner from competing against the business in the same areas that he worked for on behalf of the partnership.

If you have specific questions regarding terminating a business relationship request a free evaluation by calling (817) 877-3303.

Filed Under: Stories Tagged With: Business Litigation

April 10, 2017 By Rob Henry

Business Break Ups: The Most Difficult Litigation

Should I have a business termination “prenup” with my partners?

I have had the privilege of working on many different types of cases involving many different areas of law. The most difficult litigation is business break ups.

These types of cases combine the intense emotion and hurt feelings of a divorce and also the complexity a commercial a large commercial dispute. Unfortunately many of these disputes would have been avoided had the parties taken the time to determine what to do in the event that somebody decides it is best to go there certain way.

The most important part of a business relationship or partnership agreement is how to effectively terminate the partnership or what to do when another principal or partner decides to leave.

Unfortunately, this is often the most overlooked clause of the agreement. More often than not, the agreement makes no mention of how to effectively wind down the entity.

When it does make mention, the clause is often boilerplate and the provisions laid out don’t really fit well for the business and do not account for certain foreseeable situations.

It is imperative that those individuals starting a new business thoroughly think through what to do in the event that one of the partners wants to leave the business.

The situation is of course most analogous to that of ending a marriage with an effective pre-nuptial or “prenup” agreement vs a divorce. A prenup is an agreement two people entered into before they get married that lays out how property will be divided in the event that the marriage.

Obviously there are two reasons why most people don’t get prenups. The first being, that when most people get married they are younger and don’t own any significant types of property or draw a significant income, so it is looked at as a waste of money. The other and more common reason is because it is an awkward conversation to have.

Of course, it’s this same awkwardness that is the main reason that business relationships often overlook their termination clauses. Typically at the beginning of any type of relationship all of the parties are full of hope and optimism and nobody wants to acknowledge that there is a chance that this might not work out.

More often than not, the people coming together have a previous relationship which leads them to believe that they will be able to resolve disputes amicably. Sadly, more often than not this isn’t the case.

Filed Under: Stories Tagged With: Business Litigation

March 29, 2017 By Bethany Handy

Say Howdy to Rob Henry: Fort Worth’s Hometown Attorney

Fort Worth Attorney Robert L. Henry
Fort Worth Attorney Robert L. Henry can answer your questions.

Rob Henry grew up in Fort Worth, Texas knowing that one day he was likely to follow in the footsteps of the father he admired, who had his own very successful practice in the area for a little over 30 years. And in spite of the many focused years of pursuing the education that brought him to the place he is now, opening his own Fort Worth practice, Rob still makes jokes about what guided his decision to practice law – in his own words, “I decided to become a lawyer because I was bad at math. But that really isn’t it.”

Rob’s easygoing sense of humor and congenial attitude may put the clients he represents at ease, but putting all jokes aside, it’s very clear what choosing to go into the legal field meant to him when he expands on the reasons behind his choice to become a lawyer, saying that the opportunity to help people was what drew him to the field.

It’s the kind of answer that anyone seeking honest, respectful legal assistance is relieved to hear, and Rob is genuine in his desire to help the people who need him. He treats all of his clients with honesty and respect even when that means telling them something they do not want to hear. To Rob, very case is important, and the most rewarding part of his job is helping someone work through a problem or a challenge that he or she is facing. Rob Henry is the kind of lawyer that strives to get to know each and every one of his clients on a personal level—a trait that is becoming a rarity these days in the legal field and one that Rob feels is still incredibly important.

Rob is a true Texas native, born, raised, and now at his own practice in Fort Worth after receiving his Bachelors in Political Science at Texas Tech University, his Juris Doctorate from the Texas Tech University School of Law and his Master of Business Administration (MBA) from the Texas Tech University Rawls College of Business. He spent an invaluable first year out of law school working with his father and partners at Jose Henry Brantley MacLean & Alvarado before building his own practice in the Dallas-Fort Worth area.

A Personal Injury and Civil Trial attorney, Rob handles a variety of civil litigation cases that range from personal injury matters to commercial and business disputes. His efforts have also earned him the recognition of his peers in the Fort Worth area – Rob has been selected as a Top Attorney for both Personal Injury and Civil Litigation in Fort Worth Magazine every year since 2013, as well as a nod for “Personal Injury Attorney Worth Knowing” in 2016.

And Rob is definitely an attorney worth knowing. His love for Fort Worth and the surrounding area, as well as the people in it, are easy to see when he’s asked about his reason for returning to practice in the town where he was born and grew up. To Rob, one of the best things about the city of Fort Worth is how philanthropic and helpful the people who live in it are, and with every client he takes, Rob tries to exhibit that same sense of helpfulness that the city of Fort Worth has shown him.

 

Filed Under: Stories

  • « Previous Page
  • Page 1
  • …
  • Page 3
  • Page 4
  • Page 5

Primary Sidebar

Featured Post

Personal Injuries: Assessing Damages

  You’ve been in an accident, and you were hurt. What’s next? The biggest question here is: were you hurt badly enough to ask for damages? In this article, we’ll discuss how to judge that. Medical Bills In every case, you should start with medical bills. This is the biggest indicator of whether you might want to look at damages. In Texas, computing those medical bills is interesting. … read more >>> about Personal Injuries: Assessing Damages

Personal Injury

Medical bills begin to pile up when you are seriously injured. This page is designed to help you evaluate your options for hiring a personal injury attorney. On This Page: Introduction to Personal Injury Frequently Seen Personal Injury Claims 18 Wheeler Collisions Premises Liability Car Accidents Catastrophic and Traumatic Brain Injury Wrongful Death Next … read more >>> about Personal Injury

Business Litigation

Get in touch with Rob Henry today for a free consultation. 675 N. Henderson St. Ste. 300 Fort Worth, Texas Call (817) 877-3303 Message me on: Facebook or Chat here on the site. … read more >>> about Contact Page

Footer

About Rob Henry

Hey! I'm Rob. I am a Personal Injury/Civil Trial Attorney based in the Dallas/Fort Worth Metroplex area. Specifically Fort Worth. I … Read More ... about Fort Worth’s Hometown Attorney

Address

675 N. Henderson St. Ste. 300
Fort Worth, Texas
Call (817) 877-3303
Message me on: Facebook or Chat here on the site.
Read my blog here.

Contact Rob Now

Get in touch with Rob Henry today for a free consultation. 675 N. Henderson St. Ste. 300 Fort Worth, Texas Call (817) … Click Here ... about Contact Page

  • Medical Malpractice
  • Business Litigation
  • Personal Injury

Copyright © 2021 · Powered by ConnectEngine · Log in