| Friend,
If you're in business for any length of time, eventually someone is going to try to get money out of you in a lawsuit.
Notice I said "try." Oh, there's nothing you can do to stop someone from suing you, because here in the States every dog gets to have their day... in court, that is.
However, just because someone files a lawsuit against you, it doesn't mean they'll win. Yet, lawsuits are costly to defend. And, the toll that the stress will take is often the highest price you'll pay. Which is why you want to be prepared, both to prevent lawsuits from happening, and to defend yourself should someone attempt to sue you.
Eventually in this series, I'll explain both protection and prevention... but first, let's discuss a little law 101.
Legal Basics You Should Know
First off, here in the U.S. the courts and the law are divided into three major categories: - Criminal Law - Criminal law concerns offenses against the state... in other words, what you would traditionally think of as "law breaking." This covers everything from violent crimes like murder and rape, to crimes of moral turpitude such as theft and fraud. To be tried in court for a crime, a criminal prosecutor first has to charge you with that crime by showing evidence to the court sufficient to warrant that charges be brought against you. Then, in court the prosecution has to prove your guilt "beyond a reasonable doubt." This means that the burden of proof rests on the prosecution, because the defendant is always presumed innocent.
- Civil Law - Civil law deals with disputes between individuals concerning their legal obligations to one another. Notice the term "legal obligation" - typically this means "contractual obligation," which can be an obligation that is written or based on an oral agreement. Note that in civil cases, the plaintiff (the person doing the suing) only has to prove their case by a "preponderance of the evidence." In other words, it is much easier to win a civil case than it is to prosecute someone for a crime.
- Administrative Law - Administrative law, sometimes known as regulatory law, is the bane of business owners everywhere. This so-called "third branch" of the legal system stems from the massive amount of legislation enacted by the state, and the plethora of alphabet soup agencies created to administrate, enforce, and regulate said laws. Unfortunately, we in the States live under a bloated government that thrives on bureaucracy and waste, so administrative law is a fact of life for people and entities who are impacted by said laws... which 9 times in 10 is a business entity or a business owner. You should be aware that violating administrative law can carry both civil and criminal penalties, which is why you need to know the laws that regulate you as a service provider and employer in your state.
Protecting Against and Preventing Criminal Issues
Generally speaking, you don't have to worry about criminal legal issues unless you do something criminal. However, I have known of martial art school owners who were accused of crimes they did not commit, who were arrested, jailed, and had their lives and reputations ruined, even though they were later exonerated.
So how do you protect yourself, and prevent such a tragedy from happening to you? First off, understand the most likely scenarios that can occur to martial arts instructors: - A self-defense scenario in which you are accused of taking things too far, and using excessive force. Be aware that the law will look on you differently than someone who is untrained, and a prosecutor will use your martial arts training against you if they decide to try you for assault and/or battery (the legal nomenclature is different depending on the jurisdiction).
- A false accusation of sexual assault. This happens more commonly that you might think. There are unhinged people in this world who will make up false accusations, either for revenge, for attention, or for their own twisted enjoyment. And, it can happen to anyone.
So how do you protect yourself? In three ways: - Prevention: Know the laws in your area regarding self-defense and excessive force. Take a class in the legalities of self-defense with an attorney who specializes in that area of law, so you can know what your rights are to defend yourself in your local area. Also, never put yourself in a position where you are alone with a minor or a member of the opposite sex. And, install surveillance cameras in your dojo so you have a video record of everything that happens in your school. Doing so can save you should a false accusation be brought against you.
- Preparation: Spend an hour speaking with a criminal defense attorney in your area. It'll be worth a few hundred dollars to get on their client list. Keep their card on your at all times, and let your staff and family know that if something ever were to happen, they should call that attorney for you immediately. Also, maintain a rainy day fund so you have cash on hand to pay for legal expenses, should something occur. And, consider buying legal insurance to help defray the costs of your legal defense (but be aware that some legal insurance will not cover cases involving accusations of sexual assault or harassment, so make sure you know what you're getting).
- Professionalism: First off, don't date your students or staff. That's just asking for trouble. Also, don't make lewd or off-color jokes with students or staff. Such behavior can be used in court to show that you have a history of sexual harassment, and it will look very bad in court. Finally, be very careful how you interact with students. Touching students should be kept to a minimum (for example, to adjust position, etc) and your hands should stay away from "bathing suit zones" at all times.
One More Thing To Remember...
Also, if you are arrested for any reason, the first thing to remember is to SHUT UP. Don't say anything to the police, other than to ask if you are being detained. If so, then ask if you are being charged with a crime. If they say yes, or if they start to ask you questions, tell them you'll be happy to cooperate in the presence of your attorney.
Then say nothing else! If you are questioned, harassed, politely spoken to in a conversational manner, or otherwise interacted with verbally, do not respond until you speak with your attorney. Anything you say can and will be used against you in a court of law... so say nothing.
Hopefully, you'll never be wrongly accused of a crime. But if it happens, I also hope that you'll be prepared to weather the storm until you can prove your innocence.
Until next time,
Mike Massie MartialArtsBusinessDaily.com
Quick-start Guide to My Books and Resources: - Looking for a list of books and resources I've written? Click here! - Need business coaching to grow your dojo? Click here…
P.S. - Again, I am not an attorney. Speak to an attorney if you need legal advice.
P.S.S. - Next up... civil liability, and protecting yourself from and preventing lawsuits. |
