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.
Continue Reading Ethical Issues Arising in Litigation Funding
Last month, this blog provided an overview of litigation funding, and identified a number of issues which we planned to cover over the next several months. This month’s installment focuses on the legality of litigation funding.
Continue Reading Is Litigation Funding Legal?
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?
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?
As summer ends and the cooler weather of fall arrives, Tripp Freeley yearned for the days of sun, sand and surf. So Tripp began planning his family’s vacation for next summer. A hotel would not work for Tripp, his wife and three young kids – they needed a house with multiple bedrooms. So Tripp went to an online short-term rental by owner website and reserved a house near the beach.
The next summer the family drove 7 hours from Dallas to the house. Shortly after they began getting situated there was a knock on the door. Tripp opened the door to find a local code compliance officer. The compliance officer told Tripp that the city made it illegal to rent the house, and they had 24 hours to vacate. Tripp is floored and mortified that his “perfect” family vacation is now ruined. Does the city have the right to ban property owners from renting their homes out on a short-term basis?
Continue Reading Think You Can Rent Out Your House While You’re On Vacation? Think Again.
Last month, Jim Duncey, the majority owner and face of Duncey’s Caps, Inc., was involved in a car accident and arrested for DWI. Facing a PR crisis Duncey’s board of directors called an emergency meeting. The board implemented its crisis plan, issued a statement condemning driving while intoxicated, suspended Duncey, ordered him to attend rehabilitation, and made a $100,000 donation to MADD.
While the company survived the initial PR crisis, its bottom line did not. Retail sales during the following quarter were down 20%. One of the company’s major commercial customers also terminated its contract that produced $3 million in revenue annually. To make matters worse, the board’s private investigator discovered that Duncey had previously been arrested for DWI three years earlier while on vacation in another state, but had managed to keep it quiet. Does the company have any legal remedies against Duncey on top of terminating him? Should the company seek those remedies?
Continue Reading The Calm After the PR Storm: Recovering Damages from the Offender
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?Continue Reading Jekyl and Hyde: When the Face of Your Company Becomes a PR Liability
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?
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?