Tiger cubDriving through Oklahoma recently and watching Tiger King of late, Ernest “Big Daddy” Bux was intrigued that they are apparently 5,000 to 15,000 tigers in the United States and only 3,500 in the “wild.” Hearing that an 8-12 week old cub offered for “cub petting” in a roadside petting “zoo” could pay back over $1 million, Big Daddy decided that his Big Bux Ranch was big enough to add a roadside business and raise pet tigers. Does the State of Texas permit Big Daddy to keep pet tigers? Does Big Daddy have any liability for keeping them?
Continue Reading

Closed sign. (Sorry we are closed)

Wanting to diversify his investments, Ernest “Big Daddy” Bux signed a franchise agreement with GA Fitness last year. Construction by Big Daddy’s contractor Bill Toosuit is scheduled to be completed for in time for an early May grand opening in the new strip center owned and managed by Mawl & Mawl. Last week, in response to the COVID-19 pandemic, the town’s mayor and the state governor prohibited any gathering of more than 10 people and directed that all bars, restaurants and gymnasiums close. Now that gymnasiums are prohibited from opening, Big Daddy’s business is almost certain to fail, and Mawl & Mawl loses a tenant. If Big Daddy stops construction and buys out his current lease obligation, Bill Toosuit loses his construction project and Mawl & Mawl loses a long-term tenant. Can Big Daddy get out of his lease obligations? And his construction contract? Are there other options to get to a win-win?
Continue Reading

Woman hangs a card with information about the store closing on a shop window due to the coronavirusWanting to diversify his investments, Ernest “Big Daddy” Bux signed a franchise agreement with GA Fitness last year. Construction by Big Daddy’s contractor Bill Toosuit is scheduled to be completed for in time for an early May grand opening in the new strip center owned and managed by Mawl & Mawl. Last week, in response to the COVID-19 pandemic, the town’s mayor and the state governor prohibited any gathering of more than 10 people and directed that all bars, restaurants and gymnasiums close. Now that gymnasiums are prohibited from opening, Big Daddy’s business is almost certain to fail, and Mawl & Mawl loses a tenant. If Big Daddy stops construction and buys out his current lease obligation, Bill Toosuit loses his construction project and Mawl & Mawl loses a long-term tenant. Can Big Daddy get out of his lease obligations? And his construction contract? Are there other options to get to a win-win?
Continue Reading

Businessman Signing An Official Document as a DBAFrasier and Niles fulfill a lifelong dream by purchasing a treasured but faded restaurant through their company, Crane Brothers, LLC. They rechristen their restaurant as “Les Freres Heureux” and file an assumed name certificate registering that name. Frasier also signs multiple contracts to renovate the building and purchase food, beverages, and furniture in the following manner: “Les Freres Heureux by its president, Frasier Crane.” Unfortunately, opening night is a disaster, and the restaurant quickly closes its doors. Frasier and Niles put Crane Brothers, LLC into bankruptcy, so unpaid vendors begin suing Frasier, arguing that he is personally liable for the contracts he signed. Is Frasier in the soup?
Continue Reading

an elderly person has mental problems. The President of First Bank of Buxboro Ernest “Big Daddy” Bux is growing older, and he’s showing it. Despite tightening bank regulations on lending and credit documentation, Big Daddy seems to be getting even more lax. Moreover, just last week – during important loan renewal negotiations with the Bank’s largest customer – Big Daddy could not remember the name of the company or the name of its principal. Do the directors of First State Bank owe any legal responsibility to the FDIC as the insurer? Do the Bank directors have any legal responsibilities to the Bank?  What about Big Daddy, personally, does he have rights?
Continue Reading

Girl feet on the hover board. Self-balancing scooter or mini segwayOn December 26, Marty and Dave McFly were playing video games when, downstairs in the living room, the hoverboard that Marty had received for Christmas ignited. The fire quickly engulfed the Christmas tree and spread throughout the house. Marty and Dave escaped with minor injuries, but their house was destroyed. Since the McFlys had bought the hoverboard from Amazon.com, they sued the company, alleging that it sold them a defective product and failed to warn them that it was unsafe. Amazon, however, argues that it is not responsible because it did not manufacture or even sell the hoverboard. Instead, it merely set up a marketplace by which a third-party Chinese manufacturer sold the hoverboard. Is the McFlys’ lawsuit up in smoke?
Continue Reading

businessman hands tearing apart money banknote into two peaces. vector illustration in flat designIn this series on defining wins in litigation, we’ve talked about defining the goals and strategies at the outset, clear and open communication, and the benefits of resolving a dispute both financially and reputationally.  The final piece in this series discusses why mitigating the plaintiff’s damage recovery can also be a “win”.  I can speak from experience because I have effectively used this strategy for a client.

Suppose your customer accuses your company of taking certain actions that violated the terms of your contract.  After digging into the contract and some other communications between the parties, it is clear you breached the contract.  It also appears that your employees’ actions violate a statute that allows the customer to recover punitive damages.  The customer claims $500,000 in compensatory damages, and wants another $3 million in punitive damages.  What do you do from a litigation strategy standpoint?
Continue Reading

Feedback online or review on computer laptop concept vector illustration, flat cartoon pc with voting hands thumbs gesture and reviews stars, idea of like or dislike symbolsIf your business provides consumer-oriented goods or services, your reputation is very important to you.  When I use the term “consumer-oriented,” I mean goods or services that are primarily used for personal or household purposes.  That is not to say that businesses that do not directly affect consumers are not worried about their reputations.  In fact, they are, because reputation means everything.

Suppose one of your customers claims one of your employees stole an item while they were at the customer’s home making repairs.  You interviewed all of the employees who were at the customer’s home.  None of them saw the item in question.  You speak to the homeowner, and discover that your employees were working in a completely different part of the house than where the homeowner keeps the item.  You looked in the company vehicles and do not see any evidence of the item.  The only thing supporting the customer’s claim is that the customer was not home at the time your employees were there.  The customer files a police report.  Your team cooperates, and the police do not find sufficient evidence to support any charges.  The customer is insistent that your employees took the item, and is threatening to sue.  What do you do?
Continue Reading

tornado over the house (3d rendering)Henry Gale was having difficulty leasing his modest four-bedroom house in North Dallas. But his fortunes changed when multiple tornadoes blew through the city in late October, damaging multiple nearby homes. Suddenly faced with several offers, Henry doubled his rental rate and signed a twelve-month lease with the Diggs, a family whose home was undergoing a lengthy restoration due to tornado damage. But Henry’s elation turns to despair the next month when the Diggs sue him for “price gouging.” Are dark skies ahead for Henry?
Continue Reading