An Interview With Chad Silverstein
THERE IS NO PERSONAL LIABILITY WHEN OWNING A BUSINESS — While incorporating as a corporation or creating a limited liability company does offer certain protection to individuals, there are ways to pierce the corporate veil and obtain personal liability for debts of the business. That is why it is important to work with counsel to avoid creating situations that would lead to unnecessary personal financial exposure.
In today’s fast-paced business world, the complexity of legal matters can often be overlooked, leading to significant repercussions for businesses of all sizes. From startup ventures to established corporations, the absence of legal guidance can result in critical errors that affect growth, operations, and sustainability. These mistakes range from issues with contracts and intellectual property to compliance and employment law, each carrying the potential for financial loss and reputational damage. I had the pleasure of interviewing Michael Vater.
Michael is the Managing Partner of The Ticktin Law Group, a full-service litigation and transactional law firm headquartered in Deerfield Beach, Florida. Not only has Michael tried 100s of cases across the State of Florida, but he has also appeared in Courts across the US from California to South Carolina and many states in between.
Thank you for joining us. To start, could you share your “origin story” with our readers? How did you begin your career? What challenges did you face in the early days? How did you overcome them?
I completed my undergraduate studies at the University of Notre Dame in South Bend, Indiana. While at Notre Dame, I had many mentors in my life, including individuals who were practicing lawyers. I was also fascinated with the use of historical precedent in the practice of law. After graduating from Notre Dame, I continued my education by earning my Juris Doctorate at the University of Florida, where I also obtained a Masters of Business Administration.
One of the challenges I overcame was moving to South Florida to join The Ticktin Law Group soon after finishing law school and not knowing anyone in South Florida. I was able to build a support network among my co-workers and others I met in the community to help me learn the ins and outs of the community.
Is there a particular book that made a significant impact on you? Can you share a story or explain why it resonated with you so much?
One of my favorite books I read growing up was “The Fab Five” by Mitch Albom. This book was about the five highly recruited basketball players who ended up playing at The University of Michigan. This book helped me understand the necessary dedication and passion needed to reach the highest levels of success. These five basketball players came from all parts of the country and had different personalities, but together they achieved greatness in making it to back-to-back NCAA Championship games.
Do you have a favorite “Life Lesson Quote”? Do you have a story about how that was relevant in your life or your work?
One of my favorite quotes is “only worry about what you can control”. In law and in business there are many variable that are outside my control. I cannot control who will be the Judge, or who will be on the opposing side. What I can control is my level of preparation and my advocacy on behalf of my client.
How have you used your success to make the world a better place?
In some of my biggest cases, I have won life-changing amounts for my clients. I have seen my clients use those monies that I have obtained to create businesses, non-profits, and generally improve their own well-being. I know that by representing clients who have suffered a misfortune or have been wronged, that I am making a difference.
Ok, let’s now turn to the central part of our interview. What is the most common legal mistake you see businesses make due to the lack of proper legal counsel, and what are its potential consequences?
The most common legal mistake I see business making is that the businesses don’t know what they don’t know. Every little word in a contract may have monumental meaning, and one of the ways that businesses get a fast one pulled over on them is by not realizing the consequences of the terms in an agreement or contract.
Can you share an example where early legal intervention could have significantly altered the outcome of a business dispute or challenge?
Litigation is becoming increasingly more expensive with the requirement of hiring expert witnesses to being involved with prosecuting and defending claims. Therefore, businesses may get involved in a lengthy and expensive lawsuit when the early dispute resolution could have resolved the claims much sooner.
How do changes in digital technology and online business practices complicate legal issues for businesses without dedicated legal advice?
Businesses need be aware of the revolution with artificial intelligence. In the legal world, the use of artificial intelligence is being used to provide lawyers information faster than ever before. Thus, being able to understand that the use of artificial intelligence in the business world is likewise going to be involved with a series of new legal challenges and a business executive will need to be up to speed with the state of the law.
In your experience, how does the absence of legal counsel impact a business’s approach to contracts and negotiations, and what advice would you give to mitigate these risks?
Not having legal counsel is setting yourself up for failure. An attorney that routinely handles contracts and negotiations is going to be able to be proactive to insert language or clauses into the contracts which will protect the business. Most people when entering into a contract expect the other side to comply and things will never go wrong between the parties; however, that is the furthest from the truth. Most of the time lawsuit ensue because of ambiguities in the contract or situations not being accounted for in the initial contract.
What legal pitfalls do new businesses often overlook during their initial setup and growth phases, and how can they proactively address these issues?
The legal pitfalls that most new businesses face include a failure to plan for the rainy day in the future and failure to make contingency plans. No one ever wakes up saying I think I’m going to be sued today, but what happens if a lawsuit is filed. What do I need to do to ensure that the lawsuit does not affect business operations? How will I handle paying for legal services? It is important to plan ahead and make sure to have reserves available to cover unexpected legal expenses.
Here is our main question. Could you list and briefly explain “Top 5 Mistakes Businesses Make Without Legal Counsel” based on your experiences and insights? If you can, please share a story or example for each.
1 . EXPECTING TO BE ABLE TO REPRESENT THE BUSINESS IN COURT — Most states require a company no matter how small the company be represented by an attorney. I was just in Court the other day and a non-attorney owner of a small one person business appeared in Court. The Judge had to advise that since the owner was a non-attorney, the person was not able to argue in Court.
2 . FAILING TO ANTICIPATE PROBLEMS IN THE FUTURE — Most contracts that are not written involving attorneys just say you will do x and I will do y. There is never any information included in the contract which indicates that if one person doesn’t perform this will happen. I have seen contracts written which do not indicate where the lawsuit will be filed or what damages are permissible. Courts will defer to the language in the contracts as a first preference.
3 . NOT WRITING DOWN THE AGREEMENT — Many business owners like to do deals with a simple handshake or verbal agreement. The law prohibits enforcement of many of these oral contracts if the contract is not written. That is why it is best to memorialize the terms of the contract in a writing. Examples of unenforceable oral contracts include contracts which take more than one year to complete or contracts for land.
4 . EVERY WORD MATTERS — If a business enters into a contract, there may be language in the contract that requires the party attend arbitration or waives the right to a jury trial. A business may be asked to sign many pages which appear quite wordy and are written in a small font, but every word on that contract matters and the Courts will enforce the contract regardless of whether the contract was understood or read before being signed.
5 . THERE IS NO PERSONAL LIABILITY WHEN OWNING A BUSINESS — While incorporating as a corporation or creating a limited liability company does offer certain protection to individuals, there are ways to pierce the corporate veil and obtain personal liability for debts of the business. That is why it is important to work with counsel to avoid creating situations that would lead to unnecessary personal financial exposure.
You are a person of great influence. If you could inspire a movement that would bring the most amount of good for the greatest number of people, what would that be? You never know what your idea can trigger.
I would inspire a movement to help bring mandatory education to business owners. There are certain requirements to obtain a drivers’ license or a hunting license, but there are no requirements in the US to start or form a business. I would suggest some sort of mandatory business 101 training to those who wish to start a business.
As we wrap up, how can our readers follow your work?
Website: https://legalbrains.com/
Instagram: https://www.instagram.com/legalbrains/
LinkedIn: https://www.linkedin.com/company/the-ticktin-law-group-p.a./
X: https://twitter.com/LegalBrains
Facebook: https://www.facebook.com/TheTicktinLawGroup
YouTube: https://www.youtube.com/@Legalbrains/featured
Thank you for these fantastic insights. We greatly appreciate the time you spent on this.
About the Interviewer: Chad Silverstein is a seasoned entrepreneur with 25+ years of experience as a Founder and CEO. While attending Ohio State University, he launched his first company, Choice Recovery, Inc., a nationally recognized healthcare collection agency — twice ranked the #1 workplace in Ohio. In 2013, he founded [re]start, helping thousands of people find meaningful career opportunities. After selling both companies, Chad shifted his focus to his true passion — leadership. Today, he coaches founders and CEOs at Built to Lead, advises Authority Magazine’s Thought Leader Incubator.
Michael Vater of The Ticktin Law Group On The Top 5 Mistakes Businesses Make Without Legal Counsel was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.