Integrity Over Profit: Lauren Ellerman on Why Honesty Prevents Lawsuits

Integrity Over Profit: Lauren Ellerman on Why Honesty Prevents Lawsuits

Lauren Ellerman has spent nearly 20 years representing the other side of business disputes—and that perspective makes her advice invaluable. As a partner at Frith & Ellerman Law Firm in Roanoke, Virginia, Lauren represents patients in medical malpractice cases, families in nursing home neglect claims, employees challenging restrictive non-competes, and whistleblowers exposing healthcare fraud. Named to Virginia Super Lawyers and recognized as a Top 50 Female Attorney in Virginia, she's co-author of "How to Beat Your Virginia Non-Compete" and has seen firsthand which business practices lead to litigation.

What makes Lauren's perspective unique for female founders is that she understands the patterns that turn problems into lawsuits. She knows which shortcuts backfire, which communication failures escalate conflicts, and which employment contract mistakes create legal vulnerabilities. Her firm turns down 98% of potential cases, so she can clearly identify the difference between unfortunate outcomes and actual negligence worth pursuing in court.

In this conversation, Lauren shares practical guidance from her years of litigation experience. Her message is consistent across employment law, healthcare liability, and whistleblower protection: honest communication prevents lawsuits, integrity matters more than quick profits, and investing in proper legal contracts saves far more than it costs. For founders building businesses in healthcare, professional services, or any field where trust matters, her insights offer a valuable window into what actually triggers legal action and how to avoid it.

Employment Contracts and Non-Competes - What Founders Need to Know from the Other Side

Q: As co-author of "How to Beat Your Virginia Non-Compete" and an attorney who represents employees against overly restrictive agreements, you've seen which employment contract provisions cross the line from reasonable protection to unenforceable restraints. For female founders drafting employment agreements, what mistakes do you see companies make with non-competes, non-solicitation clauses, and confidentiality provisions that end up backfiring in court? How can founders protect legitimate business interests while creating agreements that will actually hold up if challenged? What should they know about enforceability before investing time and money in litigation?

A: I only represent employees, so I am delighted when I read a contract that I think is unenforceable, or overly broad. But, my advice to women owned businesses is to not short cut the employee contract process. Hire a lawyer in the state you actually operate to draft your agreement. The online, Chat GPT contracts always lead to trouble down the road as every state law differs and changes annually. A contract that is valid and enforceable in one state will not be valid in another. The most frequent mistake is to take a short cut, or think a one size fits all approach to employee contracts. Do them right or don’t bother drafting them at all.

Avoiding Medical Malpractice and Professional Liability - Lessons from the Plaintiff's Side

Q: With nearly 20 years representing patients and families in medical malpractice, nursing home neglect, and wrongful death cases, you've seen the patterns that lead to litigation. For female entrepreneurs in healthcare, eldercare, or other professional services, what are the most common factors that turn a bad outcome into a lawsuit? What proactive steps should service-based businesses take to minimize liability exposure? From a plaintiff attorney's perspective, what separates the cases you pursue from situations where families accept that things simply went wrong?

A: If you try to cover up the truth, or hide it from a patient, that leads to litigation. If you try to avoid hard conversations, patients feel unseen and unheard and will call attorneys. You want to minimize your liability, fire medical providers whose behavior you would not emulate, and tell patients when you screw up. Most states protect medical providers who apologize and tell the truth – the admissions are not liable in court. Honest communication does not lead to litigation. Covering up human mistakes or worse, carless mistakes, leads to litigation. Also, if you are a female provider and you see bad behavior on your team (drinking, drug use, verbal abuse) speak up. Failure to speak up for patients will lead to patient harm.

We turn down 98% of the families that contact us because we can't file suit because of bad communication, lack of information, or limited injuries. The cases we pursue are tragically those where someone’s world has been upended by negligent medical care. We know no one wants to file a lawsuit, it is usually the last resort to finding answers and moving on with some new version of life.

Whistleblower Protection and Employment Law - What Growing Companies Need to Understand

Q: Your practice includes representing whistleblowers in healthcare fraud cases and employees in breach of contract matters. For female founders building companies and managing teams, what employment practices put them at risk for whistleblower claims or retaliation lawsuits? How should founders handle employee complaints about potential legal violations or safety concerns? What are the warning signs that an employment situation could escalate into litigation, and how can founders address these issues before they reach your office?

A: Again, hiding the truth, putting dollars before patients – this is how people find themselves in front of the Justice Department. For female founders, always put integrity over a quick buck and you will be fine. Interestingly, none of our whistleblower cases have been against women – they are usually however, always filed by women who knew the company was cutting corners and wouldn’t tolerate working in an environment where integrity didn’t matter.

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