FAQs: Integrity Agreement
Keeping Family and Business Matters Inside the Group with Disclosure Agreements – Don’t Let Slander/Libel Happen to You
Summary
Trust and reputation are key components to a successful family and business. The people whom you work with and who are part of your family are entrusted with secrets and private knowledge of how the group works. This article details the importance of a Confidentiality and Non-Disclosure Agreement between families and business groups. These Agreements specify employee and/or family members responsibilities to not speak ill or publicize group secrets.
Who should have one?
Every family, business, human association and contracting parties – disagreements arise even in the most solid relationships. How you and your partner – be it a spouse, your employer or the other party to a contract – react and deal with the disagreement will determine whether you will continue to have a good relationship. Disagreements not handled properly may lead to arguments, disputes, fistfights, lawsuits and even wars. This may all be avoided with the Integrity Agreement.
What does it do?
It absolutely avoids all lawsuits between people in a relationship. This is done by providing a series of stages to be used when a dispute occurs. The parties who sign are legally bound to comply with the process. It turns a destructive process into an educational process. It is designed to leave both sides happy with the outcome.
When do you use it?
Whenever someone who has signed the agreement has a discomfort with another person who has signed it. The parties involved just follow the process outlined and make an effort to rectify the situation.
Where do I keep it?
You should keep the original in a safe place, like your attorney’s fireproof safe. You also need to keep one current copy where it is easily accessible. This enables you to have new family members and business associates sign the agreement easily.
How does it save me money?
You will never have to prepare for a lawsuit with anyone who signs the agreement, let alone actually fight it out in court. Any disagreement processed under this agreement will be resolved within 45 days, instead of the 3 to 5 years a lawsuit takes.
Why would an attorney want to avoid going to court, isn’t that what attorneys love to do?
Sure the attorneys get paid a fee, but they also suffer the headaches and ulcers that come from being the hired bulldogs who have to endure the traumas as the legal soldiers on the front lines of the legal battlefield. (At least our firm thinks so.) We practice preventive law and would rather plan for and eliminate the chance of disaster, than deal with the problems after they have manifested themselves. It is more cost effective.
Who should sign it?
Everyone in your family, immediate and extended, and those you do business with. It protects you only if these people sign, so you should make a real effort to get everyone “on board.”
How do you revoke it?
You deliver to the other parties to the agreement a written termination either in person with a written endorsement of receipt or by certified mail with return receipt requested.
What happens if someone refuses to honor the agreement?
If they refuse to follow the process, you may get a judgment against the non-cooperative party for the costs you incurred trying to follow the process. If a party to the agreement tries to take you to court, they will lose and will probably be fined by the court for bringing a groundless lawsuit.
Has it been tested in court?
Yes. For example, one time several parties to the Integrity Agreement filed a lawsuit in contravention of the Integrity Agreement, arguing that they were not bound by the agreement. The court disagreed and ordered the parties to proceed under the procedures set forth in the Integrity Agreement. The court further imposed sanctions on the violating parties and the attorneys for filing a frivolous lawsuit. Thus, the parties in the wrong were ordered to pay all legal expenses of the parties that were willing to use the agreement.
What are some of the groups who have adopted the Integrity Agreement?
A national chiropractic association, a national dental association, many groups of doctors, and foreign businesses, who upon being introduced to the agreement use it for foreign trading situations. It was introduced with acclaim at the International Peace Association in Budapest, Hungary in 1997 as a technique to prevent wars. Most stock brokerage firms and banks are using similar agreements with their customers calling for mediation and arbitration of customer disputes.
How may a person force another party to adopt the Integrity Agreement to abide by its terms?
If any person violates the procedures set forth in the agreement, the other party may immediately take the matter to arbitration by naming an arbitrator. The other party must select an arbitrator within one week. The two arbitrators will select a third, and the three arbitrators will set a hearing within one week. The aggrieved party, at his/her option, may refer the matter directly to the American Arbitration Association. If the violating party does not cooperate in the arbitration proceedings, then the aggrieved party may ask the court to select three disinterested arbitrators and order the arbitration. All attorney fees, reasonable arbitrators fees as fixed by the arbitrators and out-of-pocket expenses incurred in the settlement of the dispute shall be paid by the party who violated the agreement procedures, regardless of whether that party ultimately prevails.
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