Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Hardcover
Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Electronic
ACTIONS TAKEN BY CORPORATIONS
PRIOR TO LAWSUIT
§ 94.01 Corporate Hygiene
§ 94.02 Potential Claims
§ 94.01 Corporate Hygiene
Becoming a party to a lawsuit is not as inevitable as death and taxes.
But lawsuits are increasingly difficult to avoid and thus, a corporation
often must sue to enforce its rights or to resolve some unanticipated
conflict. Even the tightest adherence to legal principles does not prevent
the possibility that the corporation will be named party to a lawsuit.
Standard practices can potentially help reduce the costs and risks
litigation poses to the business.
One preliminary step is to have a legal audit done to determine what
legal principles are significant to the organization. Corporate forms,
manuals, and training should all be considered as means to ensure a high
level of compliance in significant areas. In the event that significant
noncompliance is identified, steps can be taken to minimize the possible
damages to potential plaintiffs.
Corporations should establish thorough document retention policies.
In many instances, the retention policy will be dictated by outside
parties. For example, various financial records must be retained for the
period tax returns remain open for audit. The statutes of limitations for
various actions may suggest that corporate documents that might be
relevant to such actions be retained for the corresponding period. Similar
retention periods would apply to governmental agency requirements.
At the same time it is important to see that documents that do not
fully and accurately reflect corporate actions are not retained.
Preliminary notes and comments may provide a history of a particular
development but may also be misleading because they are incomplete or
because later developments changed the terms or understandings.
Limitations on document retention can help ensure that sound
Roger J. Magnuson is a Partner at Dorsey and Whitney, LLP, where he serves as Head of the National Strategic Litigation Group and has practiced since 1973. He has been recognized as one of the top trial lawyers in the United States by major national and international publications, including Chambers International Guide to American Lawyers, which profiles the top 500 trial lawyers in the United States, Best Lawyers in America, Who's Who in American Law, and Who's Who in America. Mr. Magnuson was also recognized by a Journal of Law and Politics' survey for Judge's Choice "Wins Most Cases."
Some high profile cases that he has litigated include representation of the Florida Senate in the Bush v. Gore election controversy in 2000; and representation of the Plaintiffs in the widely publicized and studied Mall of America case. For several years he has represented, among other persons and entities, the Minnesota Twins and Major League Baseball principals and players in litigation; and has litigated national and local cases in federal and state court venues. He has appealed before the Supreme Court in a number of cases; as well as the Minnesota Supreme Court. He has authored several articles and 7 books.
Richard A. Saliterman is a Principal in Saliternan & Siefferman P.C., a full-service firm in Minneapolis established in 1976. Mr. Saliterman is a leading expert on corporate business matters, and is the author of several publications on business start-ups, franchises, and trademarks. Mr. Saliterman is the former National Judge Advocate for the U.S. Navy League, based in Washington D.C.