Business and Consumer Litigation

Class Actions and Derivative Actions

A class action lawsuit sometimes may be brought by a person with a relatively small claim where a number of other persons have similar claims against the same person or business, and it is not economical or practical for those persons to bring separate claims. In derivative actions, a shareholder or other owner of a business sometimes can bring a claim against the officers, directors and other owners of a business.

We have represented plaintiffs in a number of class action lawsuits in both state and federal courts in Iowa and in other states, including:

• an $18 million class action jury verdict against a national financial planner and adviser;
• a derivative and class action on behalf of more than 300,000 policyholders, resulting in a settlement in excess of $100 million (the larget in the history of the Iowa court system); and
• representing persons in cases involving securities violations, state and federal RICO (Racketeer Influenced Corrupt Organizations Act), breaches by corporate officers and directors of their fiduciary duties to members and to the corporation, and consumer fraud and improper financial advice.

Minority Shareholders Rights

Controlling shareholders and members of the board of directors of a corporation owe the minority shareholders certain fiduciary duties. These duties require that the controlling shareholders and members of the board of directors act honestly and fairly towards minority shareholders and do not use their position as controlling shareholders and/or directors to exploit the minority shareholders.

We have successfully represented such persons, including a recent jury verdict in federal court in Des Moines against the controlling shareholders and directors for breaching their fiduciary duties.

Consumer Fraud and Misrepresentation

The federal government and all states, including Iowa, have laws that regulate how businesses can market products and services to consumers. Violation of these and other related laws, including laws governing telemarketing fraud and sales advertising, may create rights to recover.

We have represented consumers in Cedar Rapids, Eastern Iowa and a number of other states pursuing such claims, including successful jury verdicts on such claims in federal court in Cedar Rapids and in the State of California.

Lender Liability

Under some circumstances, a lender may be liable to a borrower or third party for losses arising in the course of a business transaction.

We have successfully represented borrowers bringing such claims against a national lender based in Eastern Iowa, and against a large regional lender on behalf of agricultural borrowers.

ERISA Claims

Many employers provide their employees with long-term disability insurance. This insurance provides them with benefits in the event that they become sick or injured to the point that they are unable to work.

The Employee Retirement Income and Security Act, 29 U.S.C. §§ 1001, et seq., commonly known as ERISA, provides that employees who believe that they qualify for disability under their insurance plan, but have been denied coverage, can bring a civil suit against their employer or other disability insurance carrier for benefits.

We have represented numerous individuals in cases against their employer when the employer refuses to provide benefits to a qualifying employee.

Identity Theft Claims

Identity theft is one of the fastest growing crimes in Iowa and the United States. In a recent case, we were able to obtain a settlement for an identity theft victim against a Linn County business that had allowed the perpetrator, a business employee and known criminal, to have access to the victim's financial records.

Employment Litigation

We have represented both employers and employees in employment disputes, including those arising as a result of:

Additionally, we have experience in Wage Payment Collection Act claims under Chapter 91A of the Iowa Code. Under this law, an employer has very strict obligations in the payment of wages, including commissions, bonuses and severance pay, and may be required to pay damages, including "liquidated" damages and attorney fees, if they fail to timely pay what they owe to their employees. We have successfully recovered on such claims on behalf of former employees.

Franchise Litigation

We have an active practice in franchise litigation throughout the United States and internationally, primarily representing the franchisor. We have been involved in all stages of disputes with franchisees including;

• Counseling clients on contractual, statutory and common law obligations;
• Preparing default and termination letters and procedures; and
• Negotiating or litigating any disputes with franchisees arising from termination.

We have also represented franchisees in disputes with franchisors. We were recently successful in resolving a case filed on behalf of a franchisee in Iowa District Court located in Cedar Rapids where the defendant claimed the involved contract did not constitute a franchise under Iowa's franchise statute.

Trademark Litigation

We have been involved in representing trademark holders in protecting their marks. We have been actively involved in reviewing potential violations to determine whether legal action is merited, as well as preparing and sending cease and desist letters, and have filed suit in various federal courts based on violations of the Lanham Act and applicable state laws, where the violation was not cured by a cease and desist letter.

We have been involved with a significant enforcement effort involving policing a client's marks on the internet, and taking enforcement actions based on improper use of the client's marks in domain names and/or the meta data of unauthorized sites.

Insurance Coverage and Bad Faith

We have represented insureds in lawsuits against their insurance companies to obtain wrongfully denied coverage, and in bad faith claims against insurance companies based upon that wrongful denial of coverage. We have represented those insureds through litigation, and through jury trials. The litigation and trials have involved extensive discovery into the internal files and claims handling procedures of insurance companies, the use of experts in the fields of insurance policies and claims handling procedures.

Construction Disputes and Litigation

We have represented both sides of construction disputes, serving as attorneys for both construction companies and customers who find themselves in disputes with their construction companies.

On behalf of construction companies, we have handled disputes from the first stages of working with customers to resolve legal disputes that arising from the construction process to filing liens in the event of nonpayment to construction companies. When it has been necessary, we have both prosecuted and defended lawsuits relating to the work done by construction companies. We have also represented customers of construction companies in disputes, including trying a number of cases on behalf of customers in disputes with their construction companies.

General Business Contracts

We are regularly involved in representing both plaintiffs and defendants in breach of contract claims. Examples of such cases include the following:

• We recently obtained a favorable jury verdict for our clients, two truck drivers, in the Federal Court for the Northern District of Iowa, located in Cedar Rapids, establishing the existence of an oral contract to provide long-term hauling services for a Cedar Rapids company.
• We have represented a number of out of state lessees of a Cedar Rapids-based leasing company, and have been able to either negotiate favorable settlement terms or obtain transfer of the lawsuit to our client's home state. In one case we successfully established at trial, through the use of a handwriting expert, that the firm's client/lessee was not the party that signed the lease in question.
• We recently tried a jury trial in the Federal Court for the Southern District of Iowa in Des Moines, obtaining a full recovery for our clients, management employees of a technology business, based upon the refusal of their employer to honor an equity buyout arrangement in their employment agreements.
• We successfully represented a manufacturer in an arbitration whose customer refused to make full payment for products that had been delivered, based upon a claim that the products failed to conform with the agreed upon specifications. The case involved extensive discovery with the exchange of thousands of pages of documents, depositions in several states and an arbitration hearing in Chicago, Illinois.

Claims Involving Trade Secrets and Confidentiality and Non-Compete Agreements

These disputes require quick action. Brady & O'Shea, P.C. has developed the experience and expertise necessary to respond very quickly in these matters, both seeking or resisting temporary restraining orders and preliminary injunctions.

Examples of the firm's experience include representation of a Cedar Rapids-based business that filed suit against a former employee who took a customer list containing over a thousand names. The former employee sent a solicitation to each of those customers immediately upon leaving the client's firm. Securing the return of the customer list required significant litigation. We were successful, obtaining both the list and an agreement not to provide any services to listed customers for a duration sufficient to eliminate the harm caused by the misappropriation.

We also represented a Cedar Rapids-based employee of a Canadian technology company that sought a temporary restraining order against the employee. Cases seeking temporary injunctions can have a devastating impact on both the employee and their new employer. To avoid this impact, the firm dedicated significant resources to gather the information necessary to resist the temporary restraining order, including the use of computer forensic experts.

Real Estate & Land Use Litigation

We handle a variety of litigation involving real estate, including foreclosure of mortgages and mechanic's liens (for lenders, borrowers and lien holders), enforcement of business and residential leases for both lessors and lessees, property tax assessment disputes, condemnation proceedings, and litigation concerning .

We also have represented persons in disputes and litigation concerning restrictive covenants, use restrictions, and other land use issues (including representation of landowners opposed to siting a local landfill).