What You Need to Know about Veterinary Contracts
Veterinary contracts tend to cover such things as:
- Product purchase and resales
- Temporary associate veterinarians
- Independent contractors for specialized services
- Veterinary partnerships
- Animal care and boarding facilities
- Veterinary research institutions
- Physician employment agreements
- Teaching hospitals
- Diagnostic laboratories
- Surgery centers
- Veterinary hospitals
Veterinary contracts have become a specialization amongst lawyers, as the veterinarian becomes a business person and needs to be protected by the contractual terms of the contracts . Veterinarians tend to enter into veterinarian employment agreements to hire additional veterinarians; independent contractor agreements to purchase equipment devices medicines or materials; sales representative agreements for the sale of the veterinarian’s goods; partnership agreements for owning the veterinarian practice with other veterinarians; non-compete agreements to keep the veterinarian from competing with another veterinarian; and sales of contracts, business agreements to fund the veterinarian’s practice, and other veterinarian business agreements.
There are many different types of veterinarian contracts. There are veterinarian contracts for the employee veterinarian, the independent contractor veterinarian, veterinarian partnerships, non-profit veterinary hospitals; state veterinarians; and sales of veterinarian practice agreements, amongst others. These types of veterinarian contracts are often utilized by well-known veterinarian associations.
What Is a Veterinary Contract Lawyer and What Do They Do?
A veterinary contract lawyer is an attorney specializing in veterinary medicine legal agreements. Every contract that a veterinarian signs, no matter how short or long, contains legal terms that must be properly adhered to. Most standard form contracts are drafted by a veterinarian’s trade or business associations, such as the American Veterinary Medical Association. However, even with so-called standard form contracts, veterinarians need legal assistance to explain specific requirements, including why the requirements exist. Further, most veterinarians encounter issues over the lifespan of their contracts that require legal assistance.
The technical knowledge that a veterinary contract lawyer possesses will allow the veterinarian to understand longer or seemingly more complex terms in their contracts. At times, veterinarians experience confusion or dislike with clauses that are longer or appear legalese. With the right lawyer, the veterinarian will be able to retain the benefit of the contract without having to consent to seemingly overbearing legal requirements.
A good veterinary contract lawyer also has the necessary experience to highlight typical pitfalls in veterinary contracts before they become an issue. For example, at the end of a contract, there is usually a severability clause that essentially says that if a provision within the contract is later found to be unenforceable or otherwise illegal, the remainder of the contract is unaffected. This type of legalese can be confusing to veterinarians, and treatment of these clauses can vary from state-to-state. An experienced veterinary contract lawyer will be able to alternatively draft such clauses so that the veterinarian is not obliviously consenting to an unenforceable or illegal clause.
Further, there are some bad actors out there who seek to take advantage of veterinarians without a veterinary contract lawyer. These individuals or businesses may seek to harm the veterinarian intentionally or non-intentionally in a manner that gives the dispute an appearance of legality; at times, the circumstance may also be a matter of fair dealing. Without a veterinary contract lawyer, the veterinarian could be at a serious disadvantage; run the risk of a serious money judgment; or even worse, having to shut down their practice due to a lawsuit! A good veterinary contract lawyer will work with you to protect your financial interest and improve the overall health of the business, or to prosecute a meritorious case on your behalf. More often than not, a simple negotiation with the offending party can mitigate the risk and protect the veterinarian’s practice from future temptations of overreaching.
Although most veterinarians will not experience contentious litigation, they should still weigh their options carefully before signing a contract. Without a proper attorney to negotiate the terms of a contract, the veterinarian could potentially injure their practice without intending to do so. A veterinary contract lawyer will work with you and actively listen to your concerns, and most importantly, they can help you add value to your business while preserving your rights for the future.
Services Provided by Veterinary Contract Lawyers
Veterinary contract lawyers offer a variety of key services aimed at protecting the business interests of veterinarians. One of the primary services is contract drafting, in which the attorney can create a custom contract that meets the specific needs of the veterinarian or the practice. This is especially important when establishing new relationships, such as joint ventures or employment agreements. Properly drafted contracts can help avoid misunderstandings and disputes down the road.
In addition to drafting contracts, veterinary contract lawyers often provide negotiation services. They can serve as an advocate for the veterinarian or practice when negotiating contract terms with another party, ensuring that the veterinarian’s interests are properly represented and that the terms are favorable.
Veterinary contract lawyers also commonly review contracts to ensure that they are in the best interests of the practice before signing. This is particularly vital when entering into a complex agreement, such as a merger, acquisition, or hiring a non-compete agreement. The attorney can identify potential pitfalls and advise on any necessary modifications.
Finally, these attorneys also provide litigation services in case disputes arise over a contract. In the worst-case scenario, their skills can help resolve a lawsuit to avoid damage to the practice’s reputations and financial interests.
The Advantages of Retaining a Veterinary Contract Lawyer
A qualified veterinary contract attorney can help mitigate a wide range of legal risks and liabilities. Interpreting legal jargon is a science in and of itself, which can help you avoid missing important provisions, clauses and terms in your veterinary contracts. Understanding the ins and outs of the veterinary profession also helps a contract attorney identify issues you may not have thought about. An attorney can protect your business from all manner of obligations that otherwise could spell trouble for vets. Common pitfalls for veterinarians relate to breach of contract, licensing issues, non-compete covenants and independent contractors versus employees. A veterinary contract lawyer is also qualified to ensure you are covered under the law. For example, retaliation and whistleblower lawsuits are common issues in veterinary medicine. Your attorney can identify the risk of litigation even before it happens, and understand the best policies and practices to help avoid being embroiled in any lawsuits. Ensuring all of your employment contracts are up to code and provide adequate protection for your clinic or practice can help safeguard your business.
How To Decide on a Veterinary Contract Lawyer
When selecting a veterinary contract lawyer, there are several factors to consider:
Qualifications – An attorney needs to be generally familiar with veterinary practices, but also with the unique issues facing veterinarians. As a veterinarian looks at a potential contract, an attorney must have the ability to see who may be considered to be the most critical issue for that particular veterinarian.
Experience – Under the category of experience, it is important to ask if the attorney has experience representing both veterinarians and veterinary practices . In other words, does the attorney know exactly where the risks are from either side of the contract? A good attorney should understand the issues from either perspective and be able to provide both the veterinarian and the veterinary practice with advice on how to create a contract that protects all applicable parties.
Reputation – You may inquire about an attorney’s reputation from other veterinarians and/or veterinary practices; however, it may be difficult to assess a particular attorney’s reputation because veterinarians do not want to make their problems known to the world at large. It may, however, be appropriate to ask attorneys about any complaints that have been filed against him or her. A reputable attorney will have to respond honestly to such inquiries.
Common Veterinary Contract Legal Issues
There are a number of common issues that can crop up in veterinary contracts. A skilled veterinary contract lawyer can help you navigate any potential problems. One frequent issue is improper execution. It may be that a contract is not executed in conformity with the law or the organizational documents of the parties. Another problem that may arise when considering a veterinary contract is an issue of enforceability. For instance, non-competition clauses can be a problem if they potentially restrict the ability to operate a business. A veterinary contract lawyer can help your practice craft enforceable non-competition clauses, as well as resolve these and other potential problems with enforceability. Sometimes there are overlaps in responsibilities, which may result in issues with indemnification, which can be further complicated by issues of insurance. There can also be potential conflicts with other parties that need resolution, potential liabilities and a host of other problems. A qualified lawyer will know how to address these issues and can help your veterinary practice do so.
Veterinary Contract Case Studies: How a Veterinary Contract Lawyer Can Help with Examples
In this section, we will discuss real-life examples where veterinary contract lawyers have successfully navigated complex legal situations.
Veterinary Contract Contracts for Partnership Buy-In and Buy-Outs
A large university veterinary college was experiencing internal conflict. Three veterinarians were in the process of purchasing the practice from the retiring owner. However, a disagreement broke out regarding the business structure and the proposed buy-in and buy-out amounts. The veterinarians and the retiring owner approached seven attorneys within their own community and at the university to find someone who could either mediate or arbitrate the situation. In the end, the parties chose a contract attorney from outside the immediate area. The contract attorney provided an independent review of the contracts and helped the parties to better understand the terms and their legal effect. The matter was settled without litigation. The veterinarians did purchase the practice and are still working as partners today.
Contracts in Veterinary Practice Expansion
A veterinarian relocated her practice due to growing demands. The new location was identified and the veterinarian entered into a lease agreement for the new space. Once the lease was signed, the veterinarian began construction for a veterinary clinic. The practices went over budget and the veterinarian was unable to pay for the construction and for the new equipment. The landlord took the veterinarian to court based upon default of the lease. The veterinarian did not have an attorney when the lease was originally drafted and entered. A veterinary contract attorney entered the case and was able to negotiate with the landlord. The attorney was able to save the veterinarian client money and the veterinarian was able to continue working and paying off the debt based upon a modified payment schedule.
Answering Common Questions about Veterinary Contract Lawyers
I have worked with a number of veterinary contract lawyers who help veterinarians review and negotiate employment contracts, associate contracts, buy/sell agreements, and practice purchase agreements over their nearly 50 years combined experience.
Do I really need a veterinary contract lawyer?
Yes. There are very few veterinarians who can correctly analyze and make recommendations with regard to the employment contracts and practice purchase agreements that are commonly used by corporations and other entities.
How much do veterinary contract lawyers charge?
Fees are all over the place. Hourly rates can run from $250.00 per hour to over $600.00 per hour. Flat fees can also be in the $1,500.00 range. But, remember , a good veterinarian lawyer will save you money in the long run by properly reviewing your contract and getting you out of onerous situations.
Can’t I just call up any lawyer to review my contract?
Sure, but it is not going to be the same. In fact, calling up every lawyer to get their thoughts and input on your contract is a sure fire way to delay any deal you are trying to make. Plus, if the attorney has never seen one of these contracts before and does not have expertise in this area of law, you will probably end up paying for nothing.
Will it cost me money to hire a lawyer before I sign a contract?
No. Unless you are signing a contract that will cost you money, you probably won’t have to pay to have your contract reviewed. Plus, you’ll save yourself thousands of dollars anytime you move on and not sign the contract.