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General Liability: Facebook Files Motion to Dismiss Case

Business Liability: Facebook Files Motion to Dismiss CaseFacebook Inc. filed a motion this week to dismiss the case brought against them by Paul Ceglia. The wood-pellet salesman is suing Chief Executive Mark Zuckerberg and Facebook for a major stake in the social network.

Ceglia contracted Zuckerberg for website work when the CEO was a student at Harvard. Ceglia claims in his suit that he had a contract with Zuckerberg that entitles him to 50% of what was Zuckerberg’s fledgling side project at the time, known as “The Face Book.” As for the rest of the story, well that is social media lore; “The Face Book” is now a multi-billion dollar company, with Zuckerberg’s stake estimated at 28 billion.

Facebook has responded vehemently to Ceglia’s claims, calling them “a fraud and a lie.” They have launched their own investigation into the case, and claim the documents Ceglia produced were fraudulent, according to the Wall Street Journal.

Media hype aside, from a business standpoint the case highlights the urgent need for businesses to have general liability protection. The Facebook case is playing out on a national, multi-billion dollar scale. Most business will never experience that kind of exposure or risk; however the basic principals remain the same. Businesses need protection against unforeseen claims and lawsuits. And if Facebook is any indicator, the more successful you are, the more expensive the claims become.

We live in a lawsuit minded society. The sheer numbers of lawsuit prone individuals is so vast it has turned into a joke; just Google “most ridiculous lawsuits” to find a litany of ludicrous claims that have come before courts and won. You’ll laugh and shudder simultaneously.

As a business owner or manager, you already know that many business owner policies don’t carry enough liability coverage to completely protect you against unforeseen claims and lawsuits. That’s where a general liability policy can save the day and your wallet.

At the Dryfoos Group, our liability specialists can show you how to set up a relatively inexpensive, full coverage policy that can protect you and your company. Contact us today for more information.

Sources for the facts in this article can be found at The Wall Street Journal & CNN Money.

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