Understanding Joint Representation Agreements
Understanding legal terms is not only important for lawyers, but for clients and businesses. Here, ‘Bigfood Blue White’ a ‘specialty importer’, finds itself in a situation where it is entering into contracts and agreements with multiple importers on a weekly basis in order to bring frozen fruit and vegetables into the country. The company, which is getting off the ground as the main distributor of frozen French fries, imported throughout North America, understands that its relationship with suppliers has to be sound in order to import the food. However, what the company does not understand is that in entering into these agreements without some kind of legal evaluation, it is potentially creating a dangerous situation if legal issues should arise between one or any of its suppliers in the future. This is where the idea of a comprehensive joint representation agreements becomes relevant.
A joint representation Agreement is a “formal agreement” that outlines the terms of representation in which a lawyer or law firm agrees to represent more than one client. In this case, the joint representation agreement would span over the years and involve several lawyers from the same law firm and a range of importers. This will help preserve the relationship built over the course of years and not jeopardize the firm’s ability to represent the clients after a period of time. The joint representation agreement will ensure the firm has been provided the consent and the information that is needed to not jeopardize future representation to its clients. A joint representation agreement will benefit the firm because the firm will be able to represent all the clients with equal level of diligence and respect.
Moreover, to avoid a conflict of interest, the firm can hire a third party arbitrator who can review the agreement and make any necessary adjustments. A joint representation agreement is an attempt to make sure everyone is on board. It will help understand how the agreement can be established and who it will be beneficial to. This allows both clients and the firm to work together in order to help achieve the best possible outcome for all parties involved.
In order for the agreement to be beneficial, there are certain factors that the clients and the firms have to agree on. First and foremost, the terms of representation should be established, as well as the fees, compensation, level of duty, confidentiality concerns and communication preferences. Further, the interested parties should discuss their goals, needs and expectations. It is vital that everyone on the team understands their role and how the agreement will affect their ability to help each of the other members. These conditions need to be implemented in order to carry the agreement into future representation.
The benefits that come from a joint representation agreement are huge. Most importantly, lawyer can produce different perspectives on an issue, keep things organized and work together in order to reach a solution. The agreement is a great tool to ensure that everyone is on the same path and able to move forward accordingly. A joint representation agreement will also save the firm from having to reach different agreements with every client. Each client will have a copy of the joint representation agreement in order to understand how the lawyers will help all parties and how the agreement can take advantage of the opportunity for mutual gain. The agreement will help answer a lot of questions about the representation and how it will be handled. It also will help manage the expectations for each of the clients and continue to preserve the relationship built over the past years.
By using the agreement, the firm and its clients will be able to work towards a resolution and achieve not only the client’s objectives, but the firm’s goal as well. For Bigfood Blue White, they are consistently entering into agreements with multiple suppliers in order to deliver products to customers. This means, that they are not only entering into contracts and agreements, but are also on the other side of the agreement. This means that issues can arise at any moment. For example, suppose one of the suppliers, ‘Armatisk’ a Greek frozen fruit supplier, has a disagreement with one of the distributors, ‘Northern’, who is based in Michigan. Suppose Armatisk wants to initiate legal proceedings in order to obtain an appropriate remedy. In this case, it is likely Northern will file a counterclaim.
If there was a joint representation agreement, the law firm would be able to ensure that each of the clients involved in the proceeding are equally represented. This is because, the firm, is on record to represent all affected parties, and it only needs to assess the interests of each party in order to determine how it should proceed with the case. Therefore, if Bigfood Blue White enters a joint representation agreement with its suppliers, it should be able to avoid potential conflict in the future. Further, if the supplier is based in a different country, it would have to reverse the burden of proof. For example, if Armatisk is based in Greece, and Northern is in Michigan, Bigfood Blue White is importing the products from Greece into Michigan, therefore, Michigan should establish that the supplier has failed to uphold its end of the contract.
All of this can be avoided if the firm has provided adequate representation to both parties to all related matters, and therefore, work together in order to reach a resolution without unnecessary litigation. As such, the above are 10 reasons why Bigfood Blue White should consider entering a joint representation agreement with its suppliers. By doing so, the firm will be able to eliminate the scope of future disagreements and ensure the agreement remains intact in order to preserve the relationship. It is important, for any client, to understand the term definitions and how their use can translate into the business world.