Legal Thought

Start with the Relationship Before Starting with the Claim

In many cases, the discussion begins with the amount, the breach, or compensation. But sometimes the more important question comes first: What is the legal nature of the relationship between the parties in the first place? Is it a partnership or a loan? Is the amount a payment for work or a contribution to a project?

Author
Lawyer Omar Al-Baghdadi
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1 minutes
Updated

Start with the Relationship Before Starting with the Claim

In many cases, the discussion begins with the amount, the breach, or compensation.

But sometimes, the more important question comes before all of that:

What is the legal nature of the relationship between the parties in the first place?

Is it a partnership or a loan?
Is the amount a payment for work or a contribution to a project?
Did the person act in their own name or as a representative of a company?
Is the obligation personal or connected to a separate legal entity?

The answer to this question may change the proper defendant, the claims sought, the burden of proof, and even the legal path the case should follow.

That is why, before discussing the value of the claim, I always return to the foundation of the relationship that created it.

The facts may be correct, the documents may be correct, and the amounts may be correct...

But if we mischaracterize the legal relationship, we may build an entire case on an incorrect foundation.

— Omar Baghdadi