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Insights and Expertise

should happen only when there is no doubt as to the
guilt of the defendant. In civil cases, intent is less critical;
liability can arise from negligence or
3. Legal proceedings
breach of contract, regardless of whether
Civil cases are initiated by the injured party (plain- the defendant intended to cause harm.
tiff) filing a lawsuit against the defendant. The pro-
ceedings involve discovery, motions, and a trial where
both parties present their evidence and arguments. A preventive mindset
In payments and other cases, civil claims are usually
preceded by formal demand letters. Basic due diligence and transaction monitoring required
of payments businesses, exercising common sense and
Criminal cases are initiated by the state or federal taking advice from legal counsel will help payments
government, represented by a prosecutor. The defen- companies navigate the many sources of potential civil
dant is charged with a crime, and the case proceeds and criminal claims.
through arraignment, pre-trial motions, trial and po-
tentially sentencing. The business culture of counterparties to contracts is a big
determinant of whether parties sue. Contracts that open
4. Types of remedies and penalties a defendant to claims might never be the basis of a claim

Remedies in civil cases typically involve monetary while a highly protective contract could be.
damages, which can be compensatory (to cover actu-
al losses) or punitive (to punish egregious behavior). In publishing The Green Sheet, neither the author nor the publisher are
Other remedies may include injunctions or specific engaged in rendering legal, accounting, or other professional services.
performance. If legal advice or other expert assistance is required, the services of a
competent professional should be sought. For further information on
When considering your potential civil liability in this article, please contact Adam Atlas, Attorney at Law email: atlas@
payments contracts, take a look at the limitation of li- adamatlas.com, Tel. 514-842-0886.
ability clauses because they will determine the upper
end—if any—of your liability. Note as well the differ-
ence between contractual liability of your company on
the one hand and any personal guarantees you may Payments is our Business
have given on the other hand.
Penalties in criminal cases can include fines, imprison- • Expert Witness Consulting Testimony
ment, community service, probation, and other forms • Experience in Criminal & Civil cases
of punishment designed to penalize the offender and
deter future crimes. • Payment Facilitation
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5. Role of intent
• Integrated Payments
In civil cases, intent is less critical; liability can arise • Least Cost Routing
from negligence or breach of contract, regardless of • Card Network Rules
whether the defendant intended to cause harm. • Payment Gateways
Intent is a crucial element in criminal cases. To secure • Processor Selection
a conviction, the prosecution must often prove that • 'Hard to Place Merchants'
the defendant acted with criminal intent or, in legal-
ese, mens rea, which means "guilty mind" in Latin. Let us demonstrate how our our Experience

6. Impact on businesses and Knowledge can work for you!

Civil liability can result in significant financial losses Napa Payments and Consulting
for payment processors, including damages, legal fees
and reputational harm. It can also lead to changes in
business practices to avoid future liability. (707)601-7656
Criminal liability can have severe consequences, in-
cluding loss of business licenses, hefty fines and kenm@napapaymentsandconsulting.com
imprisonment of key personnel. It can also lead to
increased regulatory scrutiny and loss of consumer napapaymentsandconsulting.com
trust.

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