Our Founder Neil Peretz was recently features in the Association of Corporate Counsel (ACC) Docket discussing how lessons from the Mari Kondo tidying frenzy can help companies deal with the largest tidying challenge: their ever-growing mass of corporate contracts. See the article here.
The ACC is the largest organization of in-house attorneys in the world, with over 45,000 corporate counselors and 10,000 organizations represented across 85 countries.
A recent column by Matt Levine from Bloomberg details a costly saga of a multi-billion dollar merger blown apart by the failure to remember a Notice Date in a contract. See the story here, complete with a sidebar about the court's footnote discussion of euphemisms for the word "prejudiced."
Its opinion (located here), court noted that after two days of trial, involving eight live witnesses and over seven hundred exhibits and eighteen preceding depositions, we learned (once again) that corporation who know what's in their contracts achieve far better results. Here, "as the minutes ticked down to the passing of the End Date, Rent-A-Center’s principals watched Vintage closely. Rent-A-Center personnel acted entirely in the corporate interest, anticipating the stroke of midnight, when Rent-A-Center’s termination right would ripen and could be exercised." Meanwhile, "there was no gamesmanship in Vintage’s actions—it simply forgot to exercise its contractual right. "
The result: a billion dollar merger broken apart and a termination fee in excess of $100 million that may need to be paid. According to the court: "Adjectives are often misplaced in legal opinions; nonetheless, I am comfortable describing the size of the reverse breakup fee, in light of the entity to be acquired, as enormous."
It's great to have a regulatory expert (Neil Peretz) as one of our founders at Contract Wrangler. The Association of Corporate Counsel recently asked Neil to author a series of articles about how to set up and run a Compliance Team when you work at a regulated company. Meeting Compliance requirements is one of the key reasons we created Contract Wrangler. Contracts are the vehicle for companies to make legal and regulatory disclosures to their clients and communicate shared compliance responsibilities to partners and vendors. Not surprisingly, we have a rapidly growing roster of highly regulated companies, such as large financial services providers, relying on Contract Wrangler to stay on top of this.
You can find the full article here.