insurance business client

Issue: Employee-shareholders of an insurance agency had branched out and wanted to form a new agency, which carried with it additional legal questions.

We knew our client's business objective was to start, sustain and grow this new agency. Also evident was the need to minimize the risks associated with their departure from the prior agency.

Our attorneys started by helping to set up the new agency with licensing and financing. However, we soon uncovered legal issues that would impact the transition from the prior agency to the new agency. The employee-shareholders had signed various agreements that had the potential to adversely impact the start of the new agency.

We laid out three courses of action and their potential associated risks, advising the client to pay special attention to the risks. We also laid out how we may be able to help them minimize the risks in each scenario.

What started as Boardroom counsel headed down the path to the Courtroom. Our team of attorneys continually adapted the chosen course of action, always maintaining the objective to sustain and grow the business of this new agency. We lead them through written discovery, depositions, mediation, eventually settling the matter.

Throughout each step, we ensured that changes, suggested adjustments and additional options were communicated to the client. Reminding the client that despite what might be in immediately in front of them, the important thing was to focus on the long term growth of their business. Although on paper, a settlement may not seem to be a huge victory for a law firm, settling is often in the best interests of the client. In this instance, it prevented the client from spending additional funds on trial, freeing them to focus on sustaining the new company, and ultimately, allowed them to achieve their business objective.

Ferrtier Scobbo continued to advise these clients in the Boardroom, working on purchase and sale agreements, licensing issues and various employment concerns. Their new agency has since experienced significant growth.