Business and Tax Lawyer Blog

On Wednesday, November 3, 2010, MGM, Inc., one of the most powerful production studios in the world, filed for Chapter 11 Bankruptcy. Chapter 11 is commonly referred to as the corporate equivalent of Chapter 13 Bankruptcy, in that the person or business continues to work while handling many of Creditors' claims on an approved payment plan. Like a Chapter 13 Bankruptcy, Chapter 11 is defined as a financial restructuring in which a petition (either voluntarily or involuntary) is filed on behalf of the debtor. In addition, a debt management plan is submitted to the court where the twenty (20) largest creditors vote to accept or reject the plan. The Court may order that the parties make revisions to the plan. Once the plan is accepted, the debtor becomes the fiduciary of his or her business on behalf of the Creditors. If at any time the debtor breaches that fiduciary duty, or is determined by the court to be an ineffective manager, the court may appoint an independent trustee to oversee the restructuring process. Chapter 11 Bankruptcy can be very expensive and may take many years before the company can successfully emerge. The high cost and length of time is the reason that less than 10% of companies under Chapter 11 protection are able to continue operating after completing a plan. It does, however, permit the debtor to continue operations while in bankruptcy.

MGM's creditors are currently backing a plan that will allow the studio to retain its $40 million investment in the upcoming production of "The Hobbit." MGM's creditors are most likely supporting this decision due to the success of the Lord of the Rings trilogy, which has grossed $2,915,155,189 billion to date. Currently, MGM plans to release "The Hobbit" in two parts, and has the potential to realize an exponential return on its investment. As this point, MGM has halted production on the remainder of its planned films. Therefore, if "The Hobbit" does not produce its expected return, MGM may find itself in the undesirable 90% of businesses that fail after filing for bankruptcy.

Continue reading " MGM Studios Files for Chapter 11 Bankruptcy Protection, yet Still Able to Finance "The Hobbit" " »

It's a well-known belief that business and family are not a good combination. Most people cannot fathom a disagreement or falling out between family members, much less those family members with whom they work. Therefore, it's not much of a stretch to conceive that many of the important points of negotiation that should go into the formation of a business are either overlooked, or put off for later consideration.

Business attorneys constantly emphasize the importance of addressing/negotiating every aspect and detail of a business relationship prior to commencing operations. There are particular areas that absolutely should not be overlooked or ignored. Depending on the type of entity, one of the most crucial components can be referred to as Partnership Agreements, Shareholder's Agreements or Bylaws. These documents set forth the manner in which the entity shall conduct business in its day-to-day operations. In addition, and possibly more important, these documents also dictate what will happen in the event the business relationship sours, and the members/partners choose to go their separate ways. Failure to reach agreement on these issues at the outset of the family business can take a disastrous toll on the family members' emotions and funds when the business dissolution finally occurs.

Continue reading " Family Business? - Don't wait to talk about tough issues! " »

The Federal Trade Commission (FTC) has dropped the hammer on Debt consolidation & settlement companies, announcing that these companies can no longer charge upfront fees for their services, effective October 27, 2010.

A series of previously posted blogs discussed prohibited and acceptable debt collection practices. Add this blog concept to that series.

Debt collection companies have always claimed that they can settle your debts for less than you owe, but have charged costly fees upfront before beginning work. In many cases, debtors used these services but were still forced to file for bankruptcy anyway.

Under the new rule, Debt consolidation & settlement companies are required to work out agreements with the debtor's creditors, present the agreements to the debtor indicating how much debt the debtor will actually owe, and then the debtor can decide whether or not to move forward in paying the company service fees.

Although this is a step in the right direction for consumer protection, these companies still are unable to provide debtors all of the protections available under the bankruptcy laws. Once a debtor files a petition for bankruptcy, a mechanism called the automatic stay kicks in. Because it is in the form of a court order, this is one of the most powerful elements in filing for bankruptcy. It essentially makes all of a debtor's creditors cease contacting the debtor.

Creditor phone calls, letters, or any other type of correspondence are strictly prohibited. In fact, if a creditor is in willful violation of the automatic stay, there are civil rights and remedies for each violation that a debtor can pursue. In addition, any pending court cases where the debtor is named as a defendant (notwithstanding a few exceptions such as criminal, alimony, child support cases) must stop until after the bankruptcy. The automatic stay is not available if a debtor chooses to use a debt consolidation company. Creditors are in no way obligated to negotiate with Debt Settlement companies. To learn more, visit New rule: No more up-front fees for debt fixers.

There are a lot of different factors to consider before filing for bankruptcy and there may be other options available.

Continue reading " Debt Settlement Companies Prohibited from Charging Upfront Fees " »

This will be a continuation of a 5 part series on what creditors can and cannnot do in collecting debts. Federal and Florida law provide protection from overagressive creditors. Again, Florida law practically imitates Federal law in this regard.

Q: What remedies are available to me if a creditor violates Florida law in trying to collect a debt?

A: Florida Statute 559.77 provides that any person whose rights have been violated by a creditor may bring a civil action for actual and statutory damages up to $1,000 together with court costs and attorneys fees. If actual damages are hard to determine, a court will look to enforce liquidated damages.

Q: As a violated debtor, is it correct that all I have to prove is that the creditor contacted me about a debt?

A: No. You must also show that the creditor's conduct was willful or intentional. A bona fide or good faith error by the creditor is a valid defense to a claim under Florida Consumer Collection Practices Act

Continue reading " Creditor Rights and Obligations Part 5 - Limits on Creditors " »

On November 2, the Supreme Court heard arguments in the case of Schwarzenegger v. Entertainment Merchants Association. California passed a law prohibiting the sale of violent video games (those games labeled as "Mature") to minors. The law was struck down as unconstitutional before it took effect; however, if it were upheld, this would be the second time the Supreme Court has allowed a state to prohibit sales of certain forms of media to minors (see Ginsberg v. New York).

As the Tech industry has evolved over the last two decades, so too has the video game industry. Video gaming has grown into a $9.8 billion industry since 1996, and approximately 65% of American households own either a computer gaming system, or a next generation video game console. Only 15% of video game sales are comprised of "Mature" titles, while the remaining 85% ranges from "Everyone" to "Teen." Further, almost 95% of children under the age of 18 report a parent being present when purchasing or renting games. These statistics indicate that such a regulation may not even be necessary. If successful, California's law could be adopted by the remaining 49 states and lead to sharp declines in revenue for an industry that has remained relatively unaffected by the current recession. Most video game studios are small businesses that rely on that revenue in order to fund additional game design projects. In addition to forcing these businesses to close, such a law would have a chilling effect on the game designers' creative process as the game designers will lose their ability to produce cutting-edge works of intellectual property. To read the full transcript, visit the United States Supreme Court's website.

Continue reading " Supreme Court Considers California's Ban on Violent Video Games Sales, Could it Mean Bad News for Tech Businesses? " »

This will be a continuation of a 5 part series on what creditors can and cannnot do in collecting debts. Federal and Florida law provide protection from overagressive creditors. Again, Florida law practically imitates Federal law in this regard.

Q: If a debtor requests the information about the creditor or any other entity connected to the debt, must the creditor disclose this information?

A: Yes. Florida Statute 559.72(15) requests that creditors release such information.

Q: At what hours of the day can a creditor contact me?

A: Creditors cannot communicate with the debtor between the hours of 8 a.m. and 9 p.m. of the debtor's timezone. Florida Statute 559.72(17)

Continue reading " Creditor Rights and Obligations Part 4 - Limits on Creditors " »

This will be a continuation of a 5 part series on what creditors can and cannot do in collecting debts. Federal and Florida law provide protection to debtors from overagressive creditors. Again, Florida law practically imitates Federal law in this regard.

Q: Can a creditor use profane, obscene, or vulgar language against a debtor or a family member in trying to collect a debt?

A: No. Florida Statute 559.72(8) prohibits this behavior.

Q: Can a creditor get court costs and attorneys fees if a debtor loses his action?

A: Yes. Some courts have awarded attorneys fees against the debtor.

Q: Can a creditor threaten to enforce a debt when the person knows the debt is not legitimate or assert some other legal right that the person knows does not exist?

A: No. Florida Statute 559.72(9) prohibits this action.

Q: Can a creditor have my wages garnished?

A: Yes, in some instances. The creditor must get a valid court order and inform the employer of such order.

Q: Can a creditor communicate with the debtor under the "guise" of an attorney? (Letterhead or oral communication)

A: No of course not. Florida Statute 559.72(11)-(12) prohibits this type of behavior.

Continue reading " Creditor Rights and Obligations Part 3 - Limits on Creditors " »

This is a continuation of a 5 part series on what creditors can and cannot do in collecting debts. Federal and Florida law provide protection to debtors from overagressive creditors. Again, Florida law practically imitates Federal law in this regard.

Q: Can a creditor threaten to contact my employer without my permission before a final judgment against me is ordered?

A: No. Florida Statute 559.72(4) prohibits such action.

Q: Can a creditor disclose information that hurts my reputation to just anybody? What if I dispute the debt?

A: No. The person receiving the information must have a legitimate business interest in the information. Florida Statute 559.72(5). If there is a dispute about a debt, and the dispute is reasonable, the creditor cannot disclose debt information without disclosing that the debt is in dispute. Florida Statute 559.72(6).

Q: Can a creditor call me to collect on the debt?

A: Yes and No. The creditor can contact you about missing or being late on payments. However, the creditor is prohibited from contacting the debtor or the debtor's family members in trying to collect the debt when the action is intentional and enough to cause harassment or abuse. The harassment or abuse standard is judged upon what a reasonable person would consider harassment. Florida Statute 559.72(7)

Continue reading " Creditor Rights and Obligations Part 2- Limits on Creditors " »

In trying to collect a debt owed, creditors have rights and remedies in enforcing debt agreements against their debtors. Sometimes they can garnish wages, obtain liens on property, reposess items pledged as collateral or even file civil suit for monetary damages. However, there are actions creditors cannot take that are prohibited by federal and Florida law. In Florida, the Florida Consumer Collection Practices Act protects debtors from certain creditor actions. The federal law can be found in the Fair Debt Collections Act (FCPA) and Florida law practically imitates the FDCA. The federal laws can be found at Fair Debt Collections Act.

Florida laws can be found at Florida Consumer Collection Practices Act.

Q: Can a creditor simulate or pretend to work for law enforcement or any other governmental agency in collecting the debt?

A: No. Florida Statute 559.72(1) prohibits such an action.

Q: Can a creditor threaten or use force in collecting a debt?

A: No. Florida Statute 559.72(2) prohibits such an action.

Q: Can a creditor repossess property of mine without my knowledge?

A: Yes. If you agreed to pledge property as collateral, the creditor may repossess the property if the debtor is in default of the loan. However, the creditor must repossess the property in a way that does not breach the peace.

Continue reading " Creditor Rights and Obligations Part 1- Limits on Creditors " »

It's quite common in the excitement of creating a new business, to neglect to consider the demise of that business. That was the case with Orange County Choppers ("OCC"), home to the father-son motorcycle fabricators Paul Teutul Sr. and Paul Teutul Jr.; and home to The Learning Channel's hit show "American Chopper." In April 2008, Paul Sr. fired his son as an employee, only to bring him back as a contractor months later. After continued "problems," Paul Jr. chose to leave OCC to open his own fabrication shop in 2009. This decision prompted Paul Sr. to exercise his option to buyout Jr.'s 20% ownership interest in OCC, as permitted under the Operating Agreement. However, there was one glaring omission within the clause - how the parties would determine the value of Jr.'s interest.

As a result of this oversight, the matter of valuation is still under Judicial Review. A well drafted Operating Agreement should not only address matters such as buyout options and member dismissals, is should also enumerate how the outstanding shares shall be valued in the future. As one option, the parties to the Agreement could stipulate a mutually acceptable independent third party will be elected to carry out such valuation. This is particularly important in the matter of buy-sell agreement valuations for family businesses - as their may be adverse "gift tax consequences" in the event of contractual valuations which are less than the fair market value of such interests.

Continue reading " Business "Divorce" - American Chopper Style " »

For years, debt consolidation companies have taken advantage of debt laden, hard working Americans seeking relief from Creditors as a last resort prior to filing Bankruptcy. Historically, consumers have enjoyed literally no protection from, or recourse against, these businesses who sometimes use deceptive or unfair representations to consumers in an effort to secure up-front payments to negotiate a reduction of debts on their behalf.

Beginning October 27, 2010, the Federal Trade Commission enacted a new rule extending a degree of protection to consumers trying to settle unsecured debts through these debt relief companies. The FTC's new rule specifies that fees for debt consolidators may not be collected until the following occurs:

1. The debt relief service successfully settles or changes the terms of at least one of the consumer's debts;

2. There is a settlement agreement, debt management plan or other agreement between the consumer and the creditor that the consumer has agreed to; and

3. The consumer has made at least one payment to the creditor as a result of the agreement negotiated by debt relief provider.

Further, the new rule takes measures to ensure that debt consolidators do not front load their fees if a consumer has enrolled multiple debts in one relief program.

Currently, the only time when Creditors are legally obligated to either negotiate down the amounts owed, or discharge debt completely, is through a Bankruptcy proceeding.

Continue reading " The Federal Trade Commission Takes Steps to Control Predatory Debt Consolidation Companies " »

Over 40k students at the University of Hawaii had personal information including social security numbers and grades posted to an unsecure server. The information had been posted inadvertently by a faculty member at UH.

When the error was discovered, the University contacted each student notifying him or her of the breach. The University has repeatedly apologized for this happening. The FBI and the Honolulu police department are investigating how the breach occurred. UH removed the posted files and disconnected the server from the network. Supposedly, before the university removed the files, anyone with an Internet connection could perform a standard Google search, and the students' information would appear.

UH is not unfamiliar with this type of problem. Reports indicate that this is the third major breach in the university system since last year. Former affected students are advised to get credit reports and contact call centers setup by the university and FBI if they feel their personal information has been compromised. It is unknown at this time whether privacy lawsuits will be filed against the university, as, depending on the damages involved and any culpable negligence on the university's part, a cause of action may be available.

To learn more about the article, visit APNewsBreak: University posts info of 40K students.

Continue reading " 40k students at the University of Hawaii have their personal information posted " »

Recent blog posts, have addressed the foreclosure chaos going on resulting from allegations of "robo-signing" surfacing among several large lending firms. Former Bank of America employee, Tam Doan, is speaking out on these allegations. He says he was a former "robo-signer" in southern California. He claims he signed thousands of documents a day without reading the content within those documents; specifically that his unit was responsible for pre-foreclosure procedure and his branch could not move forward with the foreclosure process until those documents were signed. Doan claims that there was not enough time in the day to review each document and that it was company policy to sign these documents depsite not reading them.

These documents were, he said, basically an affirmation that BOA had done everything it could do to help the borrower keep the home and prevent foreclosure. Doan had no idea whether BOA had done everything it could possibly do - he just signed whatever came to his desk.

However, Doan stated that he didn't "robo-sign" all documents that came across his desk. He carefully reviewed and set appraisal values on homes going into foreclosure. He claims that he would set the values at 100% of the debt owed if he did not see proper certification documents in which he was asked to "robo-sign." Allegedly, company policy mandated that he set the values at 85% and Doan was fired for doing this and is now "spilling the beans" on BOA business practices. He claims he feels a level of guilt and responsibility in contributing to the foreclosure crisis and knows that he helped cause a lot of people to lose their homes. To learn more about the article, visit I was a robo-signer.

Continue reading " Robo-signer speaks out " »

The U.S. Labor Department reports that there was a decrease in unemployment filings over the last few weeks. It is notable that the Wall Street journal expected an increase. To the contrary, the number of people receiving unemployment benefits actually dropped for the week ending October 23, 2010.

The procedure for filing unemployment benefits in Florida requires the claimant to file a claim with the State of Florida Agency for Workforce Innovation. If the claimant is determined eligible and is approved, he or she can start receiving benefits. If the claimant or the employer loses the initial claim, then either party can appeal to the Unemployment Commission. Next, if a party loses at this stage, then he or she can file an appeal in a Florida District Court of Appeal in the district where the initial hearing officer made a decision on the claim. There are filing fees and other costs associated in filing these appeals.

Generally, if you voluntarily quit your job, you probably will not be eligible for benefits. However, if you were fired for any cause other than misconduct, or have had your hours significantly reduced, you may be eligible for unemployment payments based upon how long you were employed by the company. To learn more about the national unemployment filings, visit Unemployment claims drop sharply to 434K.

Continue reading " Nationally, Unemployment Claims Drop " »

GlaxoSmithKline PLC, a London based pharmaceutical company, will pay $750 million in a settlement agreement for allegations that the company knowingly manufactured and sold "adulterated drugs". Federal prosecutors from Massachusetts recently confirmed the settlement agreement. "Adulterated" basically means adding an element to the drug that gives it poorer quality. $150 million is allocated to criminal fines and $600 million will go towards civil fines.

The investigation began because a former employee, Cheryl Eckard, went to the Food and Drug Administration (FDA) and reported violations. Ms. Eckard was the company's quality assurance manager and, while she was visiting the Puerto Rico plant in 2002, she discovered the company committing several FDA violations.

For instance, she discovered that the water system was contaminated and that the air system allowed for cross-contamination among several products being manufactured there. She allegedly reported the problems to her superiors, but no action was ever taken. Therefore, she went to the FDA as a whistleblower and later filed a whistleblower lawsuit.

The allegations in the complaint asserted that the company allowed several drugs to be adulterated over a five year period beginning in 2001. Among the products adulterated were Paxil CR, Bactroban, Kytril, amd Avandamet. To learn more about this article, visit GlaxoSmithKline settles bad drug case for $750M.

Continue reading " British Pharmaceutical Company Settlles Bad Drug Case for $750 million " »

Statistics show that consumer bankruptcy filings are up 14% from 2009. As of September 30, approximately 1.5 million consumer bankruptcies have been filed this year.

It's the most prolific year of filing since 2005 when 1.7 million individuals filed. The increase in filings are expected to continue to increase at least for the next few months according to unemployment and foreclosure statistics. Business filings are down from a year ago and that decrease is expected to continue.

The Bankruptcy Abuse Prevention and Consumer Act (BAPCA) of 2005 has made it tougher for individuals to file under Chapter 7 of the Bankruptcy Code. Filing fees are higher and there are tests an individual must pass in order to qualify for filing. If an individual is unable to file under chapter 7, he or she will most likely qualify under Chapter 13.

Chapter 13 requires the debtor to make payments according to a plan set by the Court and the Chapter 13 Trustee. The plan usually lasts between 3-5 years and will be based on the debtor's income and ability to make pyments towards the plan. If you are thinking about filing for bankruptcy, contact an experienced bankruptcy attorney.
To learn more about this article, visit Bankruptcy filings jump 14% in 2010.

Continue reading " Bankruptcy Filings Up in 2010 " »

If your kids are growing up and reaching adulthood, they may need your signature to get approved for credit cards, lease agreements, and car loans. Before you co-sign for anyone for any reason, know what you are getting into.

If the primary accountholder defaults or is liable in any way on a contract or other debt instrument, the creditor can go after the co-signor personally as well. You should also understand that even co-signing for something will affect your credit rating whether the debt is delinquent or not.

According to the Federal Trade Commission, 3 out of 4 cosignors are asked to pay back debts for which they co-signed. Here are some tips to think about before co-signing a loan.

- If you are asked to co-sign for an apartment lease for which there will be other roomates, have the roomates parents co-sign as well.

- If you are asked to co-sign on a car loan, have your name included on the title. That way, if the payor on the loan defaults, you can sell the vehicle. (However, if your child has a "problem" driving history, this may not be a good option due to your potential liability in the event of your child's accident.)

- If you are asked to co-sign for a credit card, make sure the credit limits are low making you less exposed.

To learn more about this article, visit Should you cosign for your kid?.

Continue reading " Cosigning for your Kids? Know what you're getting into! " »

When a creditor "oversteps" boundaries in collecting a debt, what is the debtor's potential for recovery?

Florida statute 559.77 provides that if a plaintiff can show a creditor's harassment or abuse was wanton, malicious or gross and outrageous, then punitive damages may be available. "Punitive damages" are damages that seek to punish the defendant for misconduct and, in theory, deter others from engaging in similar conduct. If the creditor's conduct is not malicious or willful, then damages will probably be minimal unless you can prove actual damages. Some Florida courts have inserted "liquidated damages" where actual damages were too difficult to determine or non-existent. These types of damages are small, and unless established by contract, must be litigated upon.

Attorney's fees are normally awarded to the prevailing party in these types of actions, but are still left to the discretion of the court. Courts that have jurisidiction over these types of claims are (1) the county where the defendant resides or has its principal place of business or (2) the county where the harassment occurred.

Applicable federal laws can be found at Fair Debt Collections Act, and Florida laws can be found at Florida Consumer Collection Practices Act.

Continue reading " What happens when Creditors "overstep" boundaries in collecting Debts? " »

Triple Properties Inc., of Toronto, has filed a lawsuit against the Palace Entertainment Group and three other companies for unpaid rent, totaling approximately $750,000. Palace is a promotion company which planned to use the Silverdome as a venue for a concert back in June. However, the stage collapsed within the Silverdome and the concert was forced to cancel.

The issue in this case could boil down to what the terms of the contract or lease agreement dictate in the event the concert is cancelled. The reason for the cancellation is very important. Obviosuly, Triple Properties believes they are in compliance with the contract terms and that the collapse of the stage is Palace's problem. If this is the case, you can't blame Triple Properties for wanting to recover the unpaid rent. They may have passed on other paying opportunities to lease the property during that time period.

Most leasing agreements and contracts will address event cancellation because of "force majeure" circumstances, otherwise known as "acts of God." If a "force majeure" event is the reason for the cancellation or delay, in most situations, both parties will be put in the position as if the contract never existed.

The Silverdome was purchased in 2009 for just under $600,000 and used to be home to the Detroit Lions. To learn more about this, visit Silverdome Owners seek $750k in unpaid rent.

Continue reading " Detroit's Silverdome Owners File Lawsuit Seeking Unpaid Rent " »

Concerns are arising that the new health care law may cause employers' coverage premiums to increase and that employers are looking for ways around providing coverage for their employees as soon as the new law comes into effect in 2014.

The new law will set up exchanges in each state and consumers will be able to choose coverage among these plans in the exchange. In addition, a consumer cannot be turned away because of a preexisting condition. Employers are debating whether to drop coverage and send employees to these exchanges. It is rumored that the penalty for dropping, rejecting, or not providing a worker with a plan will cost the employer $2,000 per worker.

On one hand some are arguing that a decision to not provide coverage could be a cheaper option in the long run.Those that oppose that theory, argue that employers will continue providing coverage because they are able to deduct those health care expenses from the company's income taxes. Also, dropping coverage would result in employers facing larger social security and Medicare payroll taxes.

A further argument in support of employers continuing to provide health coverage - competition for skilled employees. Competitors within an industry need to be careful when deciding whether or not to drop coverage. If an employer drops coverage but offers a slightly higher salary, this may be a critical factor in a potential employee's decision and he or she may choose the competitor that offers health coverage. Also, employees used to high-end, generous health benefits currently offered by many companies may balk at the more spartan government provided plans.

To learn more about this article, visit Employers looking at health insurance options.

Continue reading " Options for Employers to Provide Health Insurance Coverage Under New Health Plan " »

With Yahoo's recent financial struggles, it is reported that the Internet company may be forced to entertain bids for selling the company and one of the reported bidders is competitor and rival, AOL. The Wall Street Journal asserts negotiations have commenced because Yahoo's financial performance has suffered over the past few years and even with bringing in three different CEOs, the outcome has been the same - disappointing.

In 2008, Microsoft Corporation made a bid in buying Yahoo for $47.5 billion. Microsoft withdrew its final offer in 2008 of $33 per share before Yahoo could accept or reject the proposal. This time, the buyout seems inevitable. Shareholders are tired of losing value of their once highly valued stock and may concede that a buyout is the best and last option in stopping the skid. To find out more about the aritcle visit, Report: AOL, buyout firms mulling bid for Yahoo.

A buyout of a corporation, in most cases, requires a voting majority of the Boards of Directors and shareholder approval from both companies. Once the sale/purchase is approved, the company sells an agreed upon number of shares to the buying company. If it is a buyout, then the buying company would need to own at least a majority of the overall authorized shares of the selling company. By owning a majority of the company, the new owner(s) can replace Directors, officers and other corporate officials and can begin operating the company as it sees fit.

These agreements can be very complex. If you have a question about a business sale or purchase, you should seek an experienced business attorney.

Continue reading " Is Yahoo a Takeover Target? " »

BP has paid six bills invoiced by the federal government in connection with clean up costs from the massive oil spill in the Gulf of Mexico. The Obama administration announced that BP has paid the previous 6 invoices in full, and after the most recent invoice (for $62.6 million), the total bill to date for cleanup costs is around $581 million.

Other "responsible" parties such as Transocean, MOEX and Anadarko have helped BP foot their portions of the bill. However, these paid bills do not include claims for lost wages as BP is directly paying these claims to individuals as they come due.

The U.S. Coast Guard is responsilble for the Oil Spill Liability Trust. The trust is setup to compensate those individuals affected by the spill. The trust is frequently reimbursed to accomodate these claims and was developed to provide some closure to the devasting impact on communities near the Gulf.

To learn more about this article, visit US Sends BP seventh bill, for $ 62.6 million.

After asking courts for a stay on its pending foreclosure proceedings, Bank of America has decided to move forward with pending foreclosure cases in 23 states, including Florida, starting October 25. BOA stayed the proceedings on October 8 to conduct an internal review in order to make sure affidavits and documents were being filled out correctly. The stay will remain in effect in the other 27 states while Bank of America completes its review. Bank of America, based out of North Carolina, is one of the largest financial instiutions in North Florida, according to the Federal Deposit Insurance Corporation (FDIC). BOA is expected to file thousands of foreclosure cases in the upcoming months throughout the state of Florida. To learn more about this article, visit Bank of America to ramp up foreclosures next week.

Continue reading " Bank of America moving Forward with Florida Foreclosures " »

Business valuators are used in a number of different situations. These specialists are retained to give a full, accurate appraisal of a business. Business Valuators are accredited by the American Institute of Certified Public Accountants, as accredited valuation analysts or as certified valuation analysts. Different certifications require different prerequisites before certification.

Business Valuators are often used in partnership dissolutions, probate cases, chapter 7 and chapter 11 bankruptcies, and determining business value for equitable distribution purposes between husbands and wives.

There are several types of methods used by them in evaluating a business. The most common are the income, asset, and market value approaches. There are also different discounting factors that can be used in the determination. It is very important that experts for both parties make the same assumptions and use the same methods when evaluating a business. That is something that needs to be determined and agreed upon before the an analysis is made. If this is not detemined in advance, the experts' figures may be so far off from one another that you end up having to pay them to conduct a second analysis. To learn more about the different valuation methods, visit Business Valuation for the Practitioner: Identifying the Common Areas of Manipulation by the Valuator.

Continue reading " Business Valuation: Leave it to the Experts " »

Florida Attorney General, Bill McCollum, has launched an investigation against several for-profit universities. The economic crimes division out of Fort Lauderdale will be handling the investigation against Kaplan Inc., the University of Phoenix, MedVance Institute, Everest College, and Argosy University.

The investigation centers around whether these schools have made misrepresentations about financial aid and whether unfair trade practices were used regarding recruitment, enrollment, accreditation, placement and graduation rates. In August, the U.S. Government Accountability Office issued a report indicating that it had found fraudulent and misleading practices in the enrollment process of 15 for-profit universities nationwide.

The fact that the AG's office is conducting an investigation may impact enrollment and accredibility whether fraudulent activity is uncovered or not. To learn more about this investigation, visit AG investigating for-profit universities.

Continue reading " Several for-Profit Universities being Investigated by Florida Attorney General " »

Copyright infringement involves redistributing copyrighted work, usually for the purpose of commercial gain, without the express permission of the copyright owner. In order to bring a copyright infringement claim, the work must be registered with the copyright office.

If the infringement began prior to registration, then damages are limited to actual damages and lost profits. If the infringement began after registration, then the plaintiff can choose to pursue actual damages/lost profits or statutory damages. Attorney's fees are not available if the infringement began prior to registration.

Actual damages are usually determined by the copyright's loss in market value because of the infringement. Lost profit damages are determined by looking at the defendant's gross revenue in relation to his use of the copyrighted work. Statutory damages are determined by federal statute and range between $750 to $30,000 per infringing work.

There is a 3 year statute of limitations on bringing copyright claims.The date begins to run from the time the infringement occurs or when the plaintiff should have reasonably suspected that his work was being reproduced without his permission. To view the copyright infringement federal laws in their entirety, visit Copyright Infringement and Remedies.

Continue reading " Copyright Infringement: What are my Remedies? " »

Reports indicate that health care reform is giving criminals new ways to scam American citizens. These scammers, portraying government officials, are going door to door to people without insurance telling them that, according to the new laws, they have to sign up for a health insurance policy right now and that opportunities for signing up are limited.

The uninsured person gives all of his or her information to the scammer and begins making what they believe are "premium" payments, but these payments are going towards fake policies and directly into scammers' pockets. Actually, the new law gives individuals until 2014 to purchase coverage before any penalty is enforced.

Another scam is geared toward the Medicare prescription reimbursement checks. The new law takes effect this year and is designed to fill the "gap" coverage in prescription benefits. The government actually mails a $250 rebate check to the recipient. The scammers ask the recipient for personal information so that they can issue a new prescription/Medicare card. Scammers are targeting not only senior citizens but others who receive government benefits. The National Association of Insurance Commissioners offer tips to avoid being the victim.

1. Beware of all types of solicitation. (email, fax, telephone, face-to-face)

2. Check if insurer is a legitimate business. Check with your state insurance department to see if the business is a legitimate business before giving out personal information.

3. Keep Paperwork.

4. Give the insurer a 30-day Deadline to send you your paperwork.

5. If you are a medicare beneficiary, do not provide any personal information to someone you don't know.

To learn more about this article, visit Health reform's side effect: Scams.

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The United States Patent and Trademark Office has agreed to partner with the European Patent Office and come up with a common patent classification system.

The U.S. patent system predates the International Patent Classification (IPC) system, but will now be working with the EPO in designing a finer, more detailed joint system. The new system is expected to help patent searchers conduct more detailed, efficient searches. It is also expected to cut down on duplicative work performed by both offices.

This is a giant step towards coming up with a uniform standard for patent classification and will better protect patent right holders. The World Intellectual Property Organization (WIPO) administers these types of movements and sets intellectual property system standards. WIPO is an agency of the United Nations.

To learn more about the partnership, visit USPTO and EPO Work Toward Joint Patent Classification System.

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