The Lovell FirmBusiness Lawyer Los Angeles California | The Lovell Firm2026-09-08T16:29:08Zhttps://www.lovellfirm.com/feed/atom/WordPress/wp-content/uploads/sites/1504753/2025/10/cropped-favicon-lovell512-32x32.jpgOn Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[How might the courts handle a breach of contract lawsuit?]]>https://www.lovellfirm.com/?p=495832026-09-01T18:27:16Z2026-09-01T18:27:16Zlitigation?
By reviewing the contract
The first stage in any breach of contract lawsuit is often a review and analysis of the contract. Sometimes, one party alleges that a breach occurred while the other insists that they technically met the obligations outlined in the contract. Establishing that a breach actually occurred is a key element of a breach of contract lawsuit. Verifying that the contract itself is actually valid and enforceable is also important. Judges may determine that the contract was unconscionable and therefore unenforceable or that it included illegal provisions.
By determining the impact of the breach
Plaintiffs initiating breach of contract lawsuits frequently present evidence to the courts of how the failings of the other party affected the business. Documentation of production delays or proof of penalty clauses in outside contracts affected by the breach could lead to one party seeking damages from the other.
Judges have the authority to award financial compensation when contract violations have economic consequences. Other times, judges can agree to terminate a contract so that the plaintiff no longer has an obligation to make payments to or do business with the defendant.
Finally, judges might order specific performance. They can either require that one party fulfill unperformed contractual obligations, deliver goods or redo substandard work. An order of specific performance carries the full weight of the civil courts and could lead to penalties if the defendant does not fulfill the order.
Oftentimes, breach of contract lawsuits never see their day in court. Deciding to litigate a contract-related business issue may prompt a breaching party to address the issue or at least motivate them to agree to attempt to collaboratively address the issue. Ultimately, those who know what occurs during a breach of contract lawsuit can prepare the best response possible to a violation of a written business agreement.]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[What should a vendor contract include? ]]>https://www.lovellfirm.com/?p=496412026-09-01T18:25:13Z2026-09-01T18:25:13ZUtilizing vendors can be highly beneficial for a business. There aren’t too many companies that produce and manufacture every aspect of the business. Thus, vendors can supply essential goods or services that ensure your operation continues to run smoothly. As with all business arrangements, it’s important that the relationship is backed up by legally binding documents. In this case, the appropriate document would be a vendor contract. Ideally, vendor contracts will contain information relating to the rights and obligations of all parties. What should a vendor contract include?
Specific terms
As with all contracts, it’s important that vendor agreements are specific. For starters, both parties should be accurately named. Next, the rights and obligations of each party should be described. For example, the goods or services that the vendor is expected to deliver as well as the proposed delivery date. It’s important to also include details about pricing and payment terms.
Provisions should terms be breached
Ideally, all parties will honor their obligations and the contract will be fulfilled. Unfortunately, that isn’t always what happens. That’s why vendor contracts should include provisions for terms being breached. For example, do both parties have a right to cancel? While business litigation is certainly a possibility should terms be breached, it isn’t always the best option. Many companies find it beneficial to include provisions for alternative dispute resolution in the contract. This means that both parties can communicate, resolve the problem and hopefully continue working together. Working with vendors can help ensure that your company has all of the goods and services it requires to remain profitable. To draft an effective vendor contract, it may be beneficial to seek legal guidance.
]]>On Behalf of The Lovell Firm<![CDATA[Handling entertainment contract disputes in the digital era]]>https://www.lovellfirm.com/?p=502092026-08-18T10:28:04Z2026-08-21T10:27:16ZNew battleground, new pitfalls
In today’s world, electronic contracts are frequently the norm—especially in digital-heavy industries. Electronic signatures, records and contracts are legal and enforceable in California under the Uniform Electronic Transactions Act (UETA). That means that digital contracts carry just as much weight as paper documents.
You may believe legally binding contracts are there to protect you. However, digital industries often rely on extremely high-volume and data-driven agreements that may not serve you well. These can frequently include issues that creators rarely face in traditional physical distribution, such as:
Uneven bargaining power between creators and media platforms
Complex payment structures with vague or opaque terms
Dynamic licensing causing sudden shifts in rights
Unexpected changes in algorithms or real-time data calculations
Digital-first business models frequently trigger these types of contract disputes due to unique industry practices.
Common dispute triggers
The unique nature of digital-heavy industries can cause disputes due to legal gray areas and exploits. Here are some practices that might stand out as red flags for potential conflict.
“Black box” accounting and opaque calculations: Digital platforms or distributors may fail to provide transparency in payouts, revenues and fees. Creating purposefully confusing and loose definitions in contracts can lead to ambiguous reporting.
Termination and reversion rights: There is a severe power imbalance between creators and platforms. Major distributors retain control over creators’ data and other digital assets. For example, they may choose to block, delete or deactivate accounts with no clear explanation.
Breach in contract obligations: You expect platforms to fulfill promised commitments. When they fail to meet obligations such as marketing, content visibility or IT support it can result in disputes.
Common dispute triggers tend to stem from ambiguous terms, unexpected changes and unequal levels of control.
Defense strategies to employ
Smart negotiation strategies may be necessary to recover and protect your revenue streams and rights. Your best defense protects you from the very beginning: ironclad agreements with clear terms. Drafting and reviewing contracts up front can help you avoid escalation.
Otherwise, you can resolve disputes through legal channels. Do not be afraid to pursue remedies to recover damages when partners or platforms do not deliver. The right legal professional can help you manage the unique risks associated with digital industries.]]>On Behalf of The Lovell Firm<![CDATA[How to spot early signs of a contract breach in your business]]>https://www.lovellfirm.com/?p=502112026-08-06T22:21:12Z2026-08-06T22:10:06ZA new supplier delivers the first order on time, then misses a deadline and stops returning calls. That shift may feel like a routine business setback, yet it can signal a larger contractual problem.
If you own a small or midsize business, recognizing that pattern early can protect your budget and customer relationships. You may also gain time to preserve records and address trouble before continued disruptions cause substantial loss. Early warnings often appear in routine communications and unexpected payment requests. Here are practical ways to identify those changes.
Compare performance with the contract
Read the terms on scope, delivery, payment and required notice. Compare each obligation with what occurred. Missed milestones, incomplete work or unauthorized operational changes can form a pattern, even if the other party still performs some duties.
Watch for communication changes
Pay attention when prompt updates become silence, vague answers or repeated staffing excuses. Defensive reactions to routine questions may also deserve notice. For example, a developer who once shared weekly reports but suddenly stops providing them can be facing performance problems.
Examine unusual financial requests
A contractor might seek advance cash, revised payment deadlines or added funds before completing an agreed stage. When paired with partial delivery or missing records, such a request may indicate financial strain or difficulty completing the work.
Create a clear written record
Save emails, invoices and reports in one secure location. Record each missed date and the explanation. Then send a written request that can identify the obligation and asks the other party to confirm its performance plan.
Evaluate a potential claim
In California, the law recognizes a breach when a party fails to meet an agreed obligation, but a claim may also require resulting harm. Identify the agreement and match the other party’s conduct to a specific contractual requirement. Determine if your business performed its duties or had a valid excuse. Finally, calculate losses caused by the breach, such as replacement costs or interrupted sales. How prompt attention can protect the businessEarly action may create room to correct a manageable problem and maintain a commercial relationship. It can also prevent assumptions from replacing facts when tension rises.If warning patterns continue or financial exposure grows, legal guidance may clarify notice duties and available remedies. An attorney can also evaluate the agreement and correspondence, allowing you to choose a proportionate course based on documented facts.]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[Choosing a business structure for your new venture]]>https://www.lovellfirm.com/?p=496472026-06-02T16:31:10Z2026-07-23T16:26:31ZHow is a sole proprietorship different than a corporation?
A sole proprietorship is the most popular and simplest type of business organization. It is owned and operated by a single person, who makes all the business decisions and receives all the profits.
Still, a sole proprietorship also comes with some risk. The owner is responsible for any debts or legal actions against the business. There is no distinction between the owner's personal and business assets; therefore, their home or savings may be used to meet business obligations.
Conversely, a corporation is a more complex business structure. It exists as a separate legal entity with shareholders instead of owners. This separation provides limited liability, meaning that personal assets have more protection from business debts and lawsuits.
However, corporations face more regulations, such as those set forth by the Corporate Transparency Act. In addition, they are subject to double taxation, meaning income is taxed at the corporate and shareholder levels.
Registering your business as a limited liability company (LLC) is a third option. This type of business formation offers the flexibility of a sole proprietorship but provides the limited liability protection of a corporation. Owners are known as members and have the benefit of personal asset protection. LLCs also offer pass-through taxation, which allows the members to report profits and losses on their individual tax returns and avoid the double taxation associated with corporations.
Before deciding on a business structure, it's essential that you review the pros and cons with someone who understands business formation. They can guide you in choosing the best option for your new venture.]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[How to choose a compatible business partner]]>https://www.lovellfirm.com/?p=496562026-06-02T16:17:44Z2026-07-18T16:12:52ZWhether you are just starting up your new business or you have reached the point of expansion, you may want to take on a business partner. But before you ask your ask your best friend or sister-in-law to take on that role, consider what traits are most desirable in a business partner.
While there is nothing inherently wrong with choosing a good friend, relative or in-law, those people may not be the best choices. Below are some tips for choosing a good business partner.
They’re reliable — and trustworthy
You think you know someone really well, and then they go and do something that goes against all that you stand for. While there is no way to protect yourself completely against a dishonest business partner, consider any past incidents that might have seemed minor — cheating at a friendly poker game, filling out fake rebates — anything that would indicate they are less than 100% honest.
You have different but compatible skills
If you’re the gregarious type who could sell ice in a snowstorm, you might want to consider a partner who is content to be in the background balancing the books and paying the taxes on time.
They’re financially sound
Choosing someone who is fiscally responsible and not overloaded with debt removes any temptation for them to dip into the till. It also shows that their money management skills are sufficient to run the financial aspects of your company.
You share a vision and passion
Both of you should share a similar vision for the business and have the passion (and time) to see it through to fruition. You don’t need to be in lockstep on all aspects, as it can be good to bounce different ideas off one another. But you should both be inspired and excited to promote your new company.
Learn all you can before you begin
When you decide to take on a business partner, it’s always prudent to gather all the information you need before making any decisions.]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[Influencers claim companies steal their content ]]>https://www.lovellfirm.com/?p=496662026-06-02T16:05:12Z2026-07-13T16:04:04ZCreators and influencers on social media often produce user-generated content (UGC). This may include videos, pictures, written posts and more.
However, many influencers claim that brands are using their content without first obtaining permission. One study found that approximately 50% of creators have made this claim. This is a significant issue, not only for the creators but also for the brands accused of improperly using the content.
An underrecognized problem
According to the report, many believe the extent of intellectual property theft is underrecognized by the general public. This theft can damage a brand’s reputation, making consumers less likely to purchase their products in the future. However, if consumers are unaware that the content has been used without permission, they may simply assume that the companies have taken the proper legal steps. As these reports show, that assumption is often incorrect.Not only do creators say their own content had been stolen, but 40% report knowing others who had experienced the same issue. Even for those who haven’t directly encountered intellectual property theft, it’s clear that it’s a common problem.Content creators frequently reach out to brands when they discover their content has been used without permission. Despite this, about 50% of creators claim they never received a response. While many said the content was eventually removed, significant delays meant that brands had already benefited from using the unpaid content.
Addressing the issue
The ease with which the internet allows digital content to be taken without permission has created numerous legal challenges, such as those detailed above. Creators who experience intellectual property theft must understand their legal rights and explore all available options to protect their work.]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[How does a limited liability company benefit business owners?]]>https://www.lovellfirm.com/?p=496922026-06-02T15:58:10Z2026-07-10T15:57:51ZOne of the primary decisions that a business owner has to make is deciding what type of business structure to use for the company. Sole proprietorships, limited liability companies (LLCs) and corporations are three of the common structures some business owners use.
The LLC is one of the more common options for new small businesses because of the ease of establishing the LLC and the dividing line between the company and the owner.
Division between owner and business
One of the key benefits of an LLC is that it provides limited liability protection. This means that the personal assets of the owner are generally protected from business debts and lawsuits. If the LLC faces financial trouble or legal claims, creditors typically can’t pursue the personal savings, homes or other assets of the owner as long as there’s no fraud and the finances of the business and owner are separated.
Pass through taxation
By default, profits and losses pass through to the owner’s personal tax returns, avoiding double taxation. This is known as pass-through taxation. Alternatively, an LLC can elect to be taxed as an S corporation or C corporation, depending on the business’s financial goals.
Ease of operation and management
Unlike corporations, LLCs have fewer formal requirements. There is no need for a board of directors, shareholder meetings or complex record-keeping. Instead, owners can manage the business themselves or appoint managers to handle daily operations. This flexibility makes LLCs an attractive option for entrepreneurs who want a simpler business structure.Once the business structure is chosen, the business owner can move forward with other aspects of opening the business. Ensuring they have the assistance of someone familiar with these matters may be beneficial. ]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[Can social media comments be defamation?]]>https://www.lovellfirm.com/?p=496992026-03-10T20:58:56Z2026-07-06T20:58:42ZSocial media helps businesses connect with customers. However, it can also expose companies to harmful comments. Can critical online statements become defamation under California law?
The short answer is yes, social media posts can sometimes cross the line into defamation, creating serious legal issues for businesses. However, this is not always the case, and context is crucial. Below are some important points to remember.
When does an online comment become defamation?
Under California law, defamation is a false statement presented as fact. To qualify as defamation against a business, the statement must:
Be false and factual, not merely opinion
Be published publicly (on Facebook, Yelp, Instagram, etc.)
Cause real harm to the business's reputation or income
It's important to know that negative opinions are not defamation. The comment must specifically claim false information that damages the business.
Examples of defamatory comments
An example of defamation would be if a person posts on Instagram claiming a local restaurant has a rat infestation. If that claim is false, it can seriously harm the restaurant’s reputation and reduce business and would likely qualify as defamation.However, a comment like “The food really wasn’t great” expresses personal opinion. Even if negative, this type of comment generally doesn't meet California's standard for defamation.
How businesses can respond
Businesses that believe they've been defamed on social media should:
Take screenshots to document the harmful posts
Ask the person who posted or the platform itself to remove the false statement
Explore legal options if the comment is not removed
In California, businesses have one year from the date of publication to file a defamation claim. Waiting too long could cost the business its opportunity to take legal action.If you believe that your business has been defamed, you do have options to protect your reputation. Seeking legal guidance will help you learn more about defamation laws in California. ]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[Does federal minimum wage matter?]]>https://www.lovellfirm.com/?p=496982025-03-24T12:27:29Z2026-06-29T20:59:30ZYou often hear people talk about how the minimum wage has not increased in over a decade. They will often point to the massive increases in living costs, such as the inflation of the housing market. Meanwhile, wages have remained largely stagnant.
When someone says this, they are referring to the federal minimum wage. This was last updated on July 24, 2009—nearly 16 years ago. That’s when the federal minimum wage was set at $7.25 per hour, where it still stands today.
California has its own minimum wage
However, states can also set their own minimum wages. If a state doesn’t have a minimum wage, then employers must pay at least the federally mandated $7.25 per hour. But if the state does have a higher minimum wage, then employers must follow the higher state standard.In California, the statewide minimum wage is currently $16.50 per hour. This means that, for the vast majority of hourly employees, it would still be illegal for them to be paid $7.25 per hour. Since California’s minimum wage is higher, that’s the standard employers in the state must follow.
Minimum wage disputes
This difference between federal and state wages can sometimes lead to disputes. For instance, if your employer is paying you below the California minimum wage, they may claim that they are following federal law and that $7.25 per hour is allowed. This could be due to a misunderstanding of labor laws—or a deliberate attempt to underpay workers.If you believe your employer is violating minimum wage laws, it’s important to know what legal steps you can take to recover the wages you’re owed.]]>