Realizing last month that, at age 65 he’s ready to think about his family business succession plan – especially for Buxboro State Bank, Big Daddy Ernest Bux identified his checklist: Plan for Contingencies, Establish Goals, Plan Entity Structure and Transfer, Complete Estate Planning, Identify Decision Makers, Identify Successors, Determine Exit Strategy, and Implement Document Maintenance and Control. Must Big Daddy’s family business have a contingency plan for divorce to succeed? Continue Reading Family Matters: Can a Family Business Succeed Without a Contingency Plan for Divorce?
This is the third installment in a series on litigation funding. The first article provided an overview of litigation funding. Last month’s installment focused on the legality of litigation funding. This article concentrates on potential ethical issues associated with litigation funding.
Should Courts Require Disclosure of Litigation Funding Agreements?
Finishing a best-year-ever 2018 and being questioned daily by his second wife Anna Nicole about making her children officers and owners of the family business Buxboro State Bank, Big Daddy Ernest Bux concludes, at 65 years old, that it’s time to think about a family business succession plan. What should Big Daddy do? Is he likely to succeed? Continue Reading How can a Family Business Succession Plan be Successful?
After several months of telling family and friends that his wedding venue business on Big Bux Ranch was for sale, Jeff Bux is contacted by his biggest competitor Hustler Plentee who also owns a wedding venue in the next town south of Buxboro. Hustler asks if Jeff will tote-the-note because his credit is maxed out at Buxboro State Bank, which is owned by Ernest “Big Daddy” Bux. Wanting to avoid a broker’s fee and an attorney’s time, and hoping that he might be able to get a job at the Bank, Jeff – uncharacteristically – asks his father for advice to help him sell it himself. Can Jeff sell his own business? If you were Big Daddy what would you say? Continue Reading Should an Owner Finance the Buyer of Their Business?
Earlier this year we covered how Jim Duncey, the majority owner and face of Duncey’s Caps, Inc., was involved in a car accident and arrested for DWI. While the company survived the initial PR crisis, its bottom line did not. Retail sales during the following quarter were down 20 percent. One of the Duncey’s major commercial customers also terminated its contract that produced $3 million in revenue annually. Things are so dire that the company is considering laying off half of its workers. But Duncey’s outside counsel is confident that the major commercial customer does not have the authority to terminate the contract early, and is lobbying Duncey’s to file a lawsuit that could result in $10 million in damages. Outside counsel advises Duncey’s that the commercial customer has enough assets to satisfy a judgment. But Duncey’s board is concerned that it cannot afford the cost of long and protracted litigation. The Board knows that the commercial customer will hire the best law firm in the country to defend the case. Duncey’s outside counsel suggests Duncey’s uses a litigation funder who will cover the law firm’s fees and the litigation expenses. What factors should Duncey’s Board consider when deciding whether to use a litigation funder? Continue Reading Could Corporate Litigation Funding Change Lawsuits?
Just before her 80th birthday, Ernest (“Big Daddy”) Bux’s octogenarian Auntie Delusional (Auntie Del) died without a will or any other estate plan in place to give guidance to her husband (Uncle Tom) and their two adult children. “Who needs one?” was her retort for decades. And, “Wills are so over-rated.” Was Auntie Del right? Is a will or other estate planning really necessary?
Mark Eting is one of Duncey’s Caps top outside sales agents. Because the company is based in Texas, but Mark lives in Cleveland and sells for the company in the northeast, Mark purchased a personal computer and a laptop to use for work purposes, but did not get reimbursed by the company. He did, however, provide the computer to Duncey’s IT department to install the company’s sales tracking program. Unbeknownst to Mark, the IT department also installed software that allowed the company to determine when Mark accessed the sales tracking program and what information he accessed. Duncey’s employee handbook – which Mark acknowledged – stated the company could monitor his use and access of company data on personal devices. For the laptop, Mark purchased software called “LogMeIn” which allowed him to remotely access the home personal computer while he was on the road. Thus, Mark could use his laptop while traveling, access the home computer, and enter the sales data. At a team sales retreat, Mark casually mentioned to his boss, Tom Prior, how he logged his sales data on the road by using LogMeIn.
When Mark quit, Duncey’s IT department investigated his use of the sales program, and found he had been logged in more than usual. Suspicious of this activity, Tom went into LogMeIn and successfully guessed his username and password. While perusing Mark’s personal computer, Tom found Mark had set up a Google Mail account and was emailing Duncey’s customer information to one of its competitors. Duncey filed suit against Mark for various claims. When Mark read the lawsuit’s allegations, he realized the only way Duncey’s learned that information would have been by accessing his personal computer or laptop. Mark fired off a counterclaim for computer hacking. Does Mark’s claim stand a chance?
Too old to trick-or-treat, too cool to stay at home with their parents and wanting some Halloween excitement, high school students (presumably 18 years old) Rosemary and Buffy head for Hill House, a new haunted house where the actors can touch the guests, separate them from their group and even force them down “secret” passages. Shelling out $20 apiece, Rosemary and Buffy sign a one-page form without reading it and step in to a terrifying experience – but not as they expected. Accosted by all manner of ghouls, Rosemary is forced down a secret passage where a “vampire” gropes her. Chasing Buffy through the darkness, a chainsaw-wielding maniac runs Buffy into a wall. They emerge from Hill House crying and screaming. Rosemary is distressed; Buffy later discovers that her nose is broken. They want to sue Hill House and its employees, but what about that one-page form (release) they signed?
Excited about closing on his new house, Furst Thyme Byer received emailed wire transfer instructions for his full $250,000 payment from his broker Chad at Chase N Rainbows Realtors. Complying with Chad’s instructions in the letter, Furst emailed Schneckner at Schneck’s Loans who wired the closing funds, as instructed, to what they both thought was In-O-Cent Title Company’s account. The next day, Ida at In-O-Cent Title called Furst looking for the money. Checking with Schneck’s Loans, Furst confirmed the funds were wired to the In-O-Cent Title account as directed. But In-O-Cent Title never received the money. The wiring instructions were bogus. They came from a similar email address, but it was not Chase N Rainbows’ – nor was it In-O-Cent Title’s bank account. Is anyone besides Furst responsible for the missing funds? If so, who? The title company? The mortgage broker? The real estate broker? Continue Reading Who Loses When Hacked Emails Send Wire Transfers to the Wrong Account?