Nearly every Maryland business operates in order to make a profit. When a client does not pay for services rendered or delivered goods, that primary objective is put into jeopardy. Businesses that do not get paid are also not able to pay their own debts either, which could also threaten the success of the company. Business debt collection is a vital part of any company, but it can be tricky to navigate.
Some Maryland businesses are fortunate enough to never be the subject of a lawsuit. However, many others find themselves involved in disputes that result in the filing of business litigation. The question then becomes what steps need to be taken in order to deal with the legal claims.
Technological advances happen at a rate that many companies here in Maryland and elsewhere are unable to keep up with on their own. In order to remain current and profitable, companies use technology patented by other companies. If the company using the technology does so without the permission of the company holding the patent, business litigation could be filed.
Buying a used car in Maryland or any other state can be a nerve-wracking process. Because the vehicle was pre-owned, there is no way to guarantee that the vehicle was properly taken care of by the previous owner or owners. Adding to that is the fact that used car sales people have the reputation of using illegal business practices to sell cars -- even though most are just trying to make a living and are not deceitful.
When a Maryland company enters into a contract to provide goods or services to another business, it expects to be paid for its efforts in accordance with the contract. Things do not always go as planned, however, and it might become necessary to actively pursue payment from the other party. When business debt collection does not occur after reasonable efforts are made to resolve the matter amicably, it might be necessary to file litigation.
In 2012, 21st Century Fox Inc. and others sued DISH Network. The business litigation surrounded DISH's use of certain technology that allowed subscribers across the country, including those in Maryland, to skip commercials, among other things. The companies who filed suit, including Fox, alleged that they could lose advertising revenue and that DISH infringed on their copyrights by using what was described as video-on-demand technology.
The executives, officers and board members (the fiduciaries) of a corporation,whether in Maryland or another state, have a legal responsibility to the company and its shareholders to act in the company's best interest. These individuals' fiduciary duty bars them from participating in any action that unjustly enriches them or creates a conflict of interest between them and the company. An alleged breach of this duty gives rise to the right to file business litigation.
Scott Storch is a music producer who has worked with artists that many Maryland readers are familiar with such as Beyonce and 50 Cent. He made headlines when he filed bankruptcy after a cocaine habit helped him blow through a $70 million fortune. His reputation for success attracted two backers who agreed to help Storch repair his career, but they are now filing business litigation against him for breach of contract, fraud and other allegations.
In 2012, the state of Maryland hired Computer Science Corp. (CSC) to upgrade its Medicaid reimbursement system. The contract was supposed to last five years with three possible extensions for a total possible payout of $297 million (with extensions). However, the state claims that it became dissatisfied with the work the company was doing and terminated the contract. Now, the state wants to resolve the business dispute without litigation.
Maryland readers may be familiar with the Consumer Financial Protection Bureau, which accused an auto lender in a nearby state of employing aggressive debt collection tactics when its customers defaulted on their loans, many of whom were active-duty or former military. The auto lender accused of using illegal business practices, Security National Automotive Acceptance Co., denies any wrongdoing. Despite that fact, the company decided to enter into a settlement with federal officials.