Seeing the bottom line awash with red ink yet again, Susie Sears reluctantly decided to shut down her family-owned Widgets-R-Us. Pressured by thinning margins, a weakening labor pool and increasing competition from foreign markets, Widgets-R-Us is leveraged to the hilt and profits are insufficient to pay even her secured debt. With no viable assets or business, there’s nothing to mortgage or to sell. How can Susie and her fellow company officers walk away without becoming personally liable?
Jim Duncey is more than just the majority owner of Duncey’s Caps, Inc. – he’s the face of the company, appearing on billboards, in television and radio ads, and on the home page of the company’s website. He is one of the most influential and recognizable business leaders in the city. On Saturday night Jim and his wife Diane attend a charity event at the toniest country club in town. With a little “liquid courage” Jim was the high bidder at the night’s live auction, which earned him respect (and envy) from those in attendance. On the way home Jim ran a stop sign and t-boned another vehicle. The driver of the other vehicle suffered serious injuries that would force her to spend several weeks in the hospital. Police investigating the accident gave Jim a field sobriety test, which he failed. Jim ended blowing a .12 BAC and was charged with DWI. The accident, along with Jim’s arrest, was the lead story on the Sunday news.
With the face of the company in legal and public relations trouble, Duncey’s board of directors called an emergency meeting to discuss the situation and consider options. What can they do?
Before Duncey’s Caps, Inc. hired Bud Dunop as its new human resources manager in 2018, all of Duncey’s human resources issues were handled by Dot Uris. One of Dot’s responsibilities was to have all new employees complete their new hire paperwork, which included an agreement for the employee and Duncey’s to arbitrate any employment-related disputes. The arbitration agreement included a signature block for Dot to sign on behalf of Duncey’s. Instead of signing each employee’s agreement, Dot just placed it in the employee’s file.
One day Don “Crash” Gordon broke his foot when he walked around the corner of the warehouse and stepped into a bucket that another Duncey’s employee placed on the floor. Crash filed a lawsuit against Duncey’s when it failed to cover his medical bills. Duncey’s attorney filed a motion to compel arbitration, attaching a copy of the arbitration agreement that Crash signed but Dot did not. Will Duncey’s be able to get this lawsuit sent to arbitration? Continue Reading Are Employers Required to Sign Employees’ Arbitration Agreements?
Having just fired up her Amazing Alexis and connected it with her other “smart” devices handling her heat, lights and security, Honor was sharing with her husband some troubling, sensitive health information about her trip that day to the doctor’s office. Honor’s tale was interrupted by a call from her brother who demanded “unplug your Alexis devices right now, You’re being hacked!” Sadly, Honor’s recorded tale also made its way to the editor of the neighborhood news-blog Gladys Gravits, who shared it in the community email, along with her effusive professions of sympathy. Does Honor have any recourse? Continue Reading Privacy Alert – Alexa (and Friends) is Listening!
In the summer of 2016 Stormy Sultry aka Peggy Peterson and Dennis Duck aka David Dennison engaged in some alleged hanky-panky. Wanting to nip in the bud any later stories about what happened, Duck’s agent gets Sultry to sign a non-disclosure agreement (NDA) in exchange for which Duck happily pays Sultry $130,000 for her silence and her agreement that any dispute over the NDA could only be pursued in a private arbitration. Agreeing that damages for any breach are not readily determinable in dollars, the NDA has a liquidated damages provision that damages are $1 million per breach. Is the NDA enforceable? Continue Reading How to Avoid Trumping Non-Disclosure Agreements
Duncey’s Caps, Inc. hired Bud Dunop as its new human resources manager for 2018. Bud quickly determined that Duncey’s needed a formal employee policy handbook. Included within the handbook was an arbitration agreement requiring employees to arbitrate all claims against Duncey’s relating to the employee’s employment.
Bud then held training and review sessions with all Duncey’s employees. At the end of each session, each Duncey’s employee was required to log into a computer with their own self-created password. Once logged in, the employee was given the opportunity to fully review the handbook and the arbitration agreement. The employee was then required to click a box stating that he or she “acknowledges” receiving and reviewing the handbook, and that by clicking the box they “agreed” to abide by the handbook and the arbitration agreement. The employee was then required to enter their initials and click “submit.”
A few weeks later, one of Duncey’s employees who electronically acknowledged the handbook was injured on the job. The employee filed a lawsuit. Will Duncey’s be able to get this lawsuit sent to arbitration? Continue Reading Are Your Employees’ Electronically-Signed Agreements Enforceable?
Last month’s back-and-forth between the United States and China resulted in a flurry of proclamations establishing tariffs on imports from the respective countries. We’re here to help boil it down so you know whether your business is directly or indirectly impacted. Continue Reading Is Your Business Impacted by Tariffs?
Originally designed to share our practical insights, a little humor and some business common sense, Jamie Ribman and I wrote for our Maverick clients – entrepreneurs who dare big, plan big, think big and often find themselves in big trouble.
When Jamie left to go in-house with a firm client in 2014, Drew York ably stepped in. We re-directed a bit and, of late, have intentionally reacted more to legal issues presented by current events.
As both the world and our lives have changed, so has Tilting… and our clients. Continue Reading Ten Year Anniversary. WOW!
N. O. Smelz, owner of Smelz Rug and Carpet Cleaning, learns that Brite Bank has submitted a request for proposal to clean the carpets at their 15 branches in the DFW area. When Smelz reads the request he notices it includes a diversity provision that requires at least 10% of the total amount paid by Brite to go to a vendor, or a subcontractor, that is a minority-owned, woman-owned, veteran-owned, LGBT-owned, or disabled-owned business. Smelz is concerned because he doesn’t fall into any of those categories, and he doesn’t believe any of his long-time suppliers do either. But because his cleaning company has the best reputation around, Smelz submits his proposal anyway. Will Smelz get the contract? Continue Reading Supplier Diversity Policies
Having won her primary, Starr Struuck is ready to update her campaign website and Instagram feed to jazz up her image and promote the reasons why she should win the general election. Having been chastised by Captain Kurff of Star Warp’d who tweeted Struuck to take her personalized and autographed photograph of the two of them at the Comic-Con convention off her newsletter and website, she remains determined to stick with her Star Warp’d theme. A Getty image photograph of the Starship Enterprise circling an unknown planet is now pasted across her social media. This time Getty images complains. Again, Struuck insists that she was merely publicly confessing her affection for geeky space adventure shows. Is Getty in the right to complain and demand to be paid?