Business and Tax Lawyer Blog

Bank of America has agreed to a $20 million settlement for wrongfully foreclosing on 160 service members without checking on their military status. The suit was filed by the U.S. Department of Justice against BAC Home Loans Servicing, formerly Countrywide Home Loans Servicing. Allegedly, the lender did not consistently check the active duty status of borrowers on whom it foreclosed. The Justice Department asserts that Countrywide knew, or should have known, about their military status prior to initiating foreclosure proceedings. The Servicemembers Civil Relief Act was implemented by Congress in order to protect military personnel from civil requirements, such as mortgage payments, pending trials, outstanding credit-card debt and taxes.

To learn more about this article, visit BofA unit to pay $20M settlement.

Continue reading "Bank of America to Pay $20 million for Wrongfully Foreclosing on Active Duty Military Personnel " »

A recent decision by Delaware's Supreme Court held that officers owe the same fiduciary duty of care as its directors. However, in its decision, the Court did not address the standard of care for determining officer liability.

Traditionally, the standard of care used to evaluate corporate directors has been whether or not the directors' actions are grossly negligent. The fact that the Court was silent as to the standard of care leaves open the possibility that corporate officers could be found liable for acts of simple negligence. It is much easier to prove simple negligence against another party. Therefore a Court (perhaps even Delaware's Supreme Court) will inevitably be forced to answer this question surrounding the standard of the duty of care.

We will continue to provide updates as more details are revealed, so please visit this blog to stay informed.

Continue reading "Do Corporate Officers Owe the Same Duty of Care as Directors?" »

EverBank Financial Corp. has signed a consent order with federal regulators to rectify certain foreclosure practices that have been deemed “unsafe or unsound."

The consent order, issued on April 13, cites the Jacksonville bank for weaknesses in its loan servicing, loss mitigation and foreclosure activities.

The order requires the bank to cease and desist certain activities and take affirmative remedial action for the following:

1. Within 5 days, the board shall designate a committee to monitor and coordinate the holding company’s adherence to this order.

2. Within 30 days, submit a written plan to strengthen EverBank’s board of directors' oversight of risk management, internal auditing and compliance programs concerning the company's residential mortgage program.

3. Within 90 days, the holding company shall submit a written plan to strengthen the bank’s risk management, compliance and current internal audit programs addressing residential mortgage loan servicing, loss mitigation and foreclosure activities.

4. Within 120 days, the oversight committee shall produce a compliance progress report to the board of directors and submit a progress report within 30 days of each subsequent quarter.
To read more on this article, visit Federal regulators order EverBank to stop "unsafe or unsound" practices.

Continue reading "Everbank Agrees to Stop "Unsafe" Practices" »

The Securities and Exchange Commission has announced its intent to bring charges against Wachovia Corp. for assessing usurious fees against its investors for collateralized debt obligations (some of which containing mortgages).

Wachovia, now owned by Wells Fargo, is the third-largest bank in Northeast Florida, and is set to complete its transition from Wachovia to Wells Fargo by June of this year.

To read more on Wachovia, visit Wachovia Set to Complete Transition to Wells Fargo.

Continue reading "SEC Set to Bring Charges Against Wachovia" »

Wells Fargo acquired Wachovia back in 2008 during the peak of the financial meltdown. Since that time, consumers and analysts alike have wondered when Wachovia would actually transition and take on Wells Fargo's name.
All of Wachovia's signage and systems for North and Central Florida, as well as Greater Tampa, are set to change over to the Wells Fargo brand by the end of June. The rest of Florida is set to complete its conversion by the end of July.
Following the merger, Wells Fargo became one of the largest banks in the world, and the third largest in Florida. It also operates over 9,000 commercial branches and 12,000 ATM's nationwide.

Continue reading "Wachovia Set to Convert Name to Wells Fargo" »

AT&T has announced its intent purchase T-Mobile for $39 billion. The purchase would create the largest wireless carrier in the U.S., with an estimated 130 million subscribers. T-Mobile's current parent company, Deutsche Telekom, released a statement explaining that the deal has been approved by both companies' Board of Directors. However, the deal must first be approved by the FTC and SEC. Some critics are skeptical that the deal will ultimately be approved, pointing to the current lack of choice in the U.S. cellular market. Others claim that the U.S. has one of the most competitive markets around, stating that in 18 out of the top 20 markets, consumers can choose between 5 or more providers.

To learn more about this article, visit AT&T buys T-Mobile USA for $39 Billion.

Continue reading "AT&T Wishes to Acquire T-Mobile" »

Stein Mart is a retail chain, headquartered in Jacksonville, Florida. The company recently posted a net income of almost $19 million for the fourth quarter, which ended on January 29, 2011. This is a significant jump in revenue given the company's fourth quarter net for last year totaled less than $3 million.

In 2009, the company began closing underpeforming stores, while in 2010 the retailer focused on opening stores in existing markets. Stein Mart's CEO, David Stovall, stated that they will focus on attracting new customers in 2011.

For more on this article, visit Stein Mart profit skyrockets for 4Q, 2010.

Continue reading "Stein Mart Posts Major 4th Quarter Profit" »

Recently, current St. Joe Co. CEO Wm. Britt Greene released a statement to employees in response to the news of shareholders taking action against the embattled real estate developer. In addition, two members of its board of directors resigned after only six weeks of service. Greene assured the employees that despite these recent events, the company is still viable and "financially strong."

The company, in recent months, has modified its corporate bylaws and hired Morgan Stanley as its new financial adviser in an effort to further protect the interest of its shareholders.

Continue reading "The St. Joe Company Reassures Employees/Public of its Financial Strength" »

Two Jacksonville area based shipping companies, along with a Charlotte, North Carolina firm, offered a settlement to over 1,700 plaintiffs in an antitrust lawsuit. The total settlement offer was for $52.2 million and the federal district judge in the case has given plaintiffs who wish to opt out of the settlement until February 2, 2011 to do so.

The defendants are accused of price fixing and colluding against customers between 2002 and 2008. If the allegations are true, these actions violate U.S. antitrust laws and, in particular, "The Sherman Antitrust Act."

Many plaintiffs are opting out of the settlement because the figure seems low for the number of plaintiffs involved in the suit. By no means is a plaintiff in a class of Plaintiffs required to accept a settlement offer by a defendant. However, in many instances, it may be wise to do so. To learn more about this article, please visit Anti-trust settlement faces Feb. deadline.

The defendant shipping companies (Growley Maritime Corp., Sea Star Line, LLC and Horizon Lines, LLC) denied the charges but, according to the terms of the settlement proposal, offered the settlement to "avoid the costs and risks of trial."

Continue reading "Area Companies Facing Antitrust lawsuit " »

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" »

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.

If you are a Florida employer, you need to know both the state and federal laws that govern a company's relationship with its employees. Some key considerations are:

At-Will Employment – Florida employees are considered to be "at will", and can be terminated for any legal reason; but there are many exceptions to this rule. Florida employees who have employment contracts are not considered "at will" employees, and can only be fired for reasons outlined in the contract.

Workplace Safety – even though Florida repealed its Occupational Safety and Health Act in 2000, employers must still provide a work environment that is free of known hazards that result in serious injury or death.

Workplace Injury – in Florida, injured employees receive automatic compensation benefits for on-the-job injuries, which are considered to be the exclusive remedy against the employer, even in the event of employer negligence.

Discrimination/Wrongful Termination – Florida employers are not allowed to terminate or discriminate against employees on the basis of race, age, sex, religion, national origin, disability or pregnancy.

There are many other Florida employment-related regulations that employers need to follow, including some governing pre- and post-employment behavior.

For more information on Florida employment law, contact Wood, Atter & Wolf, P.A., a Jacksonville, Florida business and tax law firm.

Yelp is a popular web site that allows guests to post opinions about fifteen million small local businesses nationwide, such as restaurants, shops and service providers. Several small business owners recently filed suit against the company, saying that they have been pressured to buy advertising on the site in exchange for removing negative reviews.

At least three law suits have been filed in 2010 by a dozen or more companies claiming that Yelp manipulates reviews based on whether a business is an advertiser on the site or not. One of the suits was filed by Cats & Dogs Animal Hospital in Long Beach California, and alleges outright extortion; that suit has been joined by nine more companies.

The owner of the hospital says that after he received some negative reviews on the site, he began receiving calls from sales representatives saying that if he became an advertiser they would allow him to remove negative reviews and choose the order in which the reviews were shown. Other companies involved in the suit allege that Yelp sales representatives told them that they could alter review listings to help their own clients and harm those who were not clients. The other two suits make similar allegations; all three are seeking class action status.

Yelp denies the claims, saying that the companies involved do not understand how their site works. He said that reviews are automatically filtered according to reliability and may be removed if they are suspected to be written by the company's owner or by a competitor seeking to do harm. Advertisers are allowed to select one review to feature at the top of their page. He further stated that sales representative have no ability to manipulate reviews.

Read more about the lawsuit at Review Site Yelp Under Fire In Business' Lawsuits.

Continue reading "Popular Opinion Website, Yelp, Sued by Several Small Business Owners" »

For many Jacksonville, Florida business owners, hanging small signs at intersections and on busy roadways is a cheap and easy form of advertising. But according to Jacksonville officials, the signs, called "bandit signs" are not just an eyesore, they are illegal.

Even though the signs are forbidden by Jacksonville ordinance, no individual has been dedicated to removing them or going after the people who post them. City officials say there are too many signs and too few resources to go after every offender. The signs are only taken down if someone makes a complaint or in the course of other police duties. In that event, Bandit sign offenders are currently given a warning the first time there is a complaint, and the public works department then removes the signs. If there is another complaint against the same buinsess owner, they are fined $225 for each offending sign.

It wasn't always this way. In fiscal year 2008-2009, sign enforcement was more aggressive and was handled by the Jacksonville building department. That year, the department collected nearly $3500 in fines for illegal signs.

City Councilman John Crescimbeni loathes the signs, but believes they are not a priority for the city at this time. Mayor John Peyton agrees, saying that the costs of enforcing the law would be greater than the fines collected, and could result in a flood of court cases initiated by business owners who are cited.

Read more about Jacksonville's bandit signs at Bandit signs clutter Jacksonville area illegally.

If you live in North Florida and have a business legal matter, please contact Wood, Atter & Wolf, P.A., Jacksonville, Florida attorneys.

Francine Katz was the vice president of communications and consumer affairs at Anheuser-Busch when InBev took over the company. Katz was promoted to the position in 2002, and was the first woman to join the company's Strategy Committee. Other women at the company saw her as a role model, and admired her approachable demeanor.

The reportedly well-respected and outspoken executive left the company shortly after the InBev purchase, and filed a lawsuit for gender discrimination, alleging that she was paid less than male colleagues, specifically her predecessor, John Jacob. She claimed the company had a "frat party" atmosphere and routinely paid women less then men for the same work. This claim was disputed by the company.

According to company insiders, Jacob was a close advisor of August Busch III and earned the higher salary by being a valuable resource to the man over a period of many years. They said it would be hard to argue that a successor with different qualifications should earn the same salary right off the bat.

This scenario is, unfortunately, played out in companies (both big and small) throughout the United States. Companies must take steps to prevent such practices for a number of reasons: to protect the company from the risk of lawsuit; to prevent the negative impact on reputation and staff morale which occurs in the face of such a lawsuit and to prevent the loss of valuable employees (that the company has spent time and money training) as a result of poor employment / compensation practices.

If you have a question about this issue, contact an employment law attorney - contact Wood, Atter & Wolf, P.A. for legal counsel.

If the case makes it to trial, it will be worth watching. Find out more about this gender discrimination lawsuit at More on Francine Katz's gender discrimination lawsuit against Anheuser-Busch.

June to November is hurricane season in Florida and as most Floridians can attest, a hurricane can cause hardships that last long after the winds have died down. These can include difficulty finding essential items like gasoline or other fuel, food, water, and shelter for purchase. Under Florida Law, it is illegal for businesses to charge excessive prices for these items in the wake of an emergency; any price increases must be justified by an actual rise in the cost to procure or sell the item.

Once the Governor declares and emergency for an approaching storm, the price gouging law goes into effect. Under Florida law (Fla. Statutes 501.60) price gouging is prohibited during a State of Emergency. In most hurricane landfalls or near misses, a State of Emergency will be declared. The statute protects residents from gouging on "essential commodities." Florida residents are actively encouraged to report price gouging to the Florida Department of Agriculture and Consumer Services hotline at 1-800-HelpFLA.

When a hurricane or other disaster strikes, Floridians need to stick together to help each other out, not take advantage of people when they are the most vulnerable. This law serves as a powerful deterrent for greedy business owners who might be tempted to make a quick buck off of someone else's misery. Read more about hurricane emergency statutes available to Governor Crist at Tropical Storm Ida brings warnings about price-gouging.

Continue reading "Florida Governor Charlie Crist Reminds Business Owners That Price Gouging is Illegal in the Aftermath of a Hurricane" »

In the case of an H1N1, or swine flu, breakout, employers have been urged for many months to become prepared for wide-spread impact on both their own staff and their customers. While we have dodged the bullet for now, this has been a good test case for businesses. Employers have several legal obligations regarding the privacy of employees, and may also be subject to federal laws that come into play if a pandemic hits the US. Employers need to be prepared with a plan in case the worst happens. Here are some tips for being prepared:

Consider the legal issues

Employers must provide employees and customers a safe working environment, and H1N1 (or some other massive breakout) could be considered a hazard. Employers should educate employees about virus, including information about how to control the spread of the disease. Employers may also have to consider how the Americans with Disabilities Act (ADA) and the Family Medical Leave Act (FMLA) will affect their policies in the event of a pandemic.

Be prepared for recommendations from the CDC that will affect attendance

The CDC may recommend that certain people with a greater risk of contracting the disease stay home from work. These people would then fall under the protection of the ADA; employers would have to make allowances for them to work from home or to take an extended leave of absence. Employers will still have the right to request proof that the employee falls under the CDC guidelines for persons at high risk.

Understand how the FMLA will affect your plan

If an employee has a child or family member who becomes ill with a case of Swine Flu or some other outbreak that is bad enough to be considered a serious medical condition (requiring three or more trips to the doctor or hospital), an employer is under a legal obligation to allow the employee to stay home and care for the ill person under the FMLA. The FMLA does not require employers to allow employees to stay home to care for healthy children whose school has been closed due to an outbreak.

How do employee privacy laws come into play?

Employers are required to maintain employee privacy, but they also have a duty to protect the other employees from a potential hazard. In the current instance, a business may decide to notify employees that there has been a diagnosed case of swine flu in one of their workers, without naming names.

You can read more about these issues at Outbreak could bring legal, personnel issues.

Continue reading "Employers Advised to Put Plans in Place for Possible H1N1 (Swine Flu) Breakouts" »

As many as 100,000 homes across the country may have been built with defective Chinese Drywall. The drywall has been found to emit sulfide fumes, which can corrode pipes and wiring and cause health problems such as skin irritations and respiratory problems. At least two Florida home insurance providers have threatened to cancel or not renew policies of affected homeowners.

Citizens Property Assurance Corporation and Universal North America have stated that they are not required to cover the cost of removing and replacing the drywall and corroded wiring and piping, which could add up to as much as $100,000 for an average home. The companies have cited clauses in policies that exclude damage caused by "pollution" or "builder defect."

Citizens advised policyholders who have filed claims for damages that they must provide proof that they have replaced the drywall or their policies will not be renewed as the corrosive effects of the sulfur will likely cause further damage to the home. Universal North America, Florida's 12th largest home insurer, dealt with at least one claim by cancelling the homeowner's policy outright.

Policy holders have been put in a difficult position; if they report the defective drywall they may be required to replace it or risk losing their coverage. Builders who installed the defective drywall may be held liable for replacing it. Each may also have recourse with the distributor or manufacturer of the product.

Find out more about this story at Insurers Drop Drywall Victims.

Continue reading "Defective Chinese Drywall Leaves Some Florida Homeowners Without Insurance" »

Armor Holdings started out making bullet proof vests in Yulee, Florida and grew within fifteen years to a large multinational company with sales of $2.4 billion. It was twice named by Forbes Magazine as one of the nation's fastest growing companies, and was sold in 2007 for $4.5 billion.

Despite the outward appearance of success, FBI investigators are now saying that prior to the 2007 sale, company executives engaged in illegal exports, bribery, kickbacks, and sale of faulty equipment to the military. The investigation got underway when an Armor Holdings executive who was charged with various crimes agreed to work with the FBI and helped the agency gather evidence that led to the arrest of twenty two other executives, including a former president and former CEO of Armor Holdings.

Richard T. Bistrong of Ponte Vedra Beach, Florida was formerly the vice president of international sales for Armor Holdings, and to date is the only individual who has been charged with wrongdoing while at the company. He is the executive who aided the FBI in its investigation. As part of the investigation, Bistrong met with several military and law enforcement supply executives and asked them to add kickbacks to proffered contracts. Twenty-two others allegedly agreed to the deals as well.

The arrests and charges represent the first under the Foreign Corrupt Practices Act, which went into effect in 1977. The law forbids Americans from making payments to foreign officials in exchange for favorable treatment. Find out more about this story at Jacksonville company's shady dealings spanned globe, authorities say.

If you live in North Florida and have a business legal matter, please contact our Wood, Atter & Wolf, P.A.

A former employee, Darrol Olsen, of Lockheed Martin Corp, a major US defense contractor, has claimed in a federal whistleblower lawsuit that the F-22 Raptor stealth jets the company was building for the US defense department were knowingly finished with a defective stealth coating. President Barack Obama ended the production of the jets in 2009, following the advice of critics who said that it was ill-suited for the wars in Iraq and Afghanistan. Each jet cost the US $140 million.

Olsen was fired from the company in 1999. The false certification and concealment of negative testing results was alleged to have taken place between 1995 and 1999. Olsen also claims that he was told to mind his own business when complaining about his suspicions of false certifications to his superiors. In the lawsuit, Olsen claims that Lockheed added extra layers of coatings to the jets so that they would pass air force tests. Apparently the coating would rub off if it came in contact with oil, fuel or even water. The extremely thick coating added to cover up the problem allegedly affected the jets’ speed and maneuverability.

Olsen is suing Lockheed to pay $50 million to the US government for each jet included on the contract. Find out more about the F-22 Raptor Stealth Jet Ex-Lockheed engineer claims F-22 tech 'defective'.

AT&T Inc. has accused rival cell phone carrier Verizon Wireless of deceptive trade practices. They are suing Verizon for implying that AT&T has far less nationwide coverage than they actually do, saying a Verizon ad campaign may be misleading customers. AT&T is asking for a permanent injunction to stop the ads, saying that they are suffering irreparable harm as a result of the commercials.

The ads in question compare Verizon’s 3G coverage to that of AT&T, showing maps of the US with coverage highlighted in blue for AT&T and red for Verizon. The Verizon map is almost completely red, where the AT&T map is sparsely freckled with blue dots. The problem is that the maps make it look like AT&T has far less coverage, when in fact they offer regular (non-3G) coverage in many areas where 3G is not available.

Verizon attempted to appease AT&T by taking out language in the ad saying that AT&T customers are “out of touch” in areas that do not have 3G service. Verizon also added an extra line to the ad saying that both “voice and data services are available outside of 3G coverage areas.” Verizon believes that the changes are sufficient. AT&T does not.

Now it will be up to a judge to decide whether the ads are misleading or not. If your business has been the victim of false advertising, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Find out more about this lawsuit and its implications at AT&T to Verizon: There’s a lawsuit for that.

Pinellas County, Florida has organized EnviroBusiness hazardous waste collection days, offered solely to businesses. Business owners can pay waste contractors directly, but take advantage of the county’s contracted prices. While any business can drop off electronics, there are special requirements for chemical disposal. Medical waste and explosives may not be disposed of under this program. More details and the 2010 dates for collection days are available at Pinellas County Biz Waste Website.

It is important for business owners to dispose of hazardous waste properly. Hazardous items should not be put out with the regular garbage, poured down street drains, or otherwise improperly disposed of; improper disposal is a violation of Florida law. Legal and appropriate hazardous waste management reduces a business’ liability for clean-ups, can lower insurance premiums and will ensure employees are not knowingly exposed to hazards.

Hazardous waste can include: TVs, computers and monitors, office equipment, cell phones, batteries, light bulbs, cleaners, paints and solvents, and printing chemicals. Many of these items can be disposed of for no charge or for a nominal fee. Read more about the Pinellas County, Florida EnviroBusiness Hazardous Waste Collection day by going to EnviroBusiness waste collection set.

Please contact Wood, Atter & Wolf, P.A. for legal counsel in any business law matter.

Philip Morris USA is the largest tobacco company in the US. The company recently lost a lawsuit brought by a Florida woman with emphysema. A jury in a Broward County, Florida court found in favor of the plaintiff, Lucinda Naugle, and awarded her compensatory damages of $56 million and punitive damages of $244 million.

The lawsuit was made possible by a Florida Supreme Court decision in 2006 that de-certified a class action suit, allowing individuals to file their own suits against the company. In that decision, the supreme court specifically allowed plaintiffs to introduce factual determinations from the original class action case as established fact in their own cases. Ms. Naugle’s award is the largest stemming from the Supreme Court decision.

Ms. Naugle, now 61 years old, stated that she started smoking at the age of 20, and gave it up at the age of 45. The jury did find Ms. Naugle 10% at fault, meaning that Philip Morris must pay only 90% of the compensatory damages. Philip Morris plans to seek further review of the verdict, saying that the verdict was affected by erroneous rulings by the judge in the case. Find out more about this large Florida verdict against a tobacco company at Philip Morris Must Pay Smoker Almost $300 Million, Jury Says.

If you have questions about business law please contact Wood, Atter & Wolf, P.A. for legal counsel.

If you ask Florida business owners about the social media phenomenon, you will find out pretty quickly that social media is not just for teenagers and college students anymore. Businesses around the world and throughout Florida are embracing social media outlets like Twitter, Facebook, Flickr, and MySpace as a very effective way to meet and market to potential customers.

As tweets, posts and instant messages outpace email as the favorite method of communication, Florida Sunshine Law watchdogs are keeping a sharp eye on the social media sphere. They want to ensure that all public records remain public and that they can be tied back to the public official who generated them.

Just last year a large number of previously secret text messages sent between staff members of the Public Service Commission and Florida lobbyist groups came to light and were made public under the Sunshine Law. Florida Attorney General Bill McCollum has since announced that his office would keep a record of all Blackberry messages sent to or from state-owned phones. McCollum has also set up a task force to compile a report on which social media communication methods should be made part of the public record.

Read more about how business use of social media is affected by the Florida Sunshine Law at Businesses find Facebook, Twitter useful. 

If you live in the Jacksonville, Florida or Orlando, Florida area and have about social media and the law, please contact Wood, Atter & Wolf, P.A. for business legal counsel.

Due to a cooker malfunction at one of the company’s plants located in Paris, Texas, Campbell Soup. Co. has decided to recall 15 million pounds of SpaghettiOs with meatballs. Three varities have been recalled, each of which are highly consumed by children:  SpaghettiOs with Meatballs, SpaghettiOs  A to Z with Meatballs, and SpaghettiOs Fun Shapes with Meatballs (Cars).   The Agricultural Department announced the recall late Thursday afternoon on June 17.  Certain lots of the product manufactured back in 2008 are even being recalled, stated Campbell spokesman, Anthony Sanzio.  Although officials believe the cooker malfunctioned recently, they are not certain. 

Out of an abundance of caution, lots of the product manufactured from between December 2008 and June 10, which were distributed nationwide, were recalled. Presently on the market, the company believes there are 35,000 cases of SpaghettiOs subject to recall.  The USDA announced the 15 million pound recall because that is all of the product that has been produced since 2008; while most of it has likely been consumed, the Company has elected to move to address the issue.

To read more about this incident see 15 million pound SpaghettiOs recall.

Recalls can affect a business’ reputation, good will and customer sales.  Contact Wood, Atter & Wolf, P.A. to discuss how to protect your business in the event of such an incident.

CVS Caremark Co. and Walgreen Co. have settled a contract dispute, which, if left unresolved, would have prevented thousands of customers from getting their prescriptions filled at Walgreen. Walgreen has 7,500 outlets and is the largest U.S. drugstore chain operator. The two companies negotiated a multiyear deal but no terms were disclosed by either company. The partnership between CVS and Walgreen allows people whose prescription drugs benefits are handled by Caremark to be reimbursed for prescriptions filled at Walgreen’s pharmacies. Caremark contracts with employers and handles the drug benefit parts of their health plans, paying pharmacies to fill prescriptions. Caremark saves money by negotiating volume discounts.

On June 7th, Walgreen stated that it planned to end their relationship with CVS gradually. However, on June 9th, CVS Caremark said the company would exclude Walgreen from its network in a month. If this happened to be the outcome, starting July 9th, Walgreen customers whose prescriptions were managed by Caremark would have had to fill their prescriptions at stores (such as CVS, Kroger, or Safeway) if they wanted to be reimbursed for their drug costs.

The settled dispute between the two companies was a positive outcome. Kermit Crawford, executive vice president of pharmacy for Walgreen, said in a statement that, “the agreement makes good business sense … and assures choice and convenience [to customers].” Shares of both companies rose 3% the morning of June 18th.

To read more details about the settled dispute see CVS and Walgreen negotiate contract dispute.

If you are engaged in a contract dispute, contact Wood, Atter & Wolf, P.A. to negotiate a contract dispute your business may be dealing with. It is important to seek legal counsel to protect your interest and ensure future business.

A ten year anniversary news series was enough to finally convince a business owner to speak out about a fire at his warehouse that killed 6 firefighters in 1999. Tony Kwan said in a new interview that the Fire Department inspected the Worcester Cold Storage and Warehouse Co. building only a few days prior to the blaze, and found it safe and secure. He has provided a copy of their report to the local newspaper, the Worcester Telegram & Gazette, which is running the series.

He also said that he prays twice a day for the men who were killed, but he does not feel personally guilty because he met all the requirements for keeping the building safe. Even so, he took the settlement from the insurance company and split it among four widows of the deceased firemen to settle a civil suit they filed against him.

An investigation of the fire found that it was started by some homeless people who broke into the building and knocked over a candle they were using. The laws in Massachusetts for securing abandoned buildings have become much stricter since 1999, including requiring stronger barriers to keep out intruders. Mr. Kwan reports that he follows the new, stricter laws that are now in effect as well.

Mr. Kwan discusses the reasons for his ten year silence as well as the settlement in the civil lawsuit in greater detail at Owner prays for dead; says building was secured.

Building owners have a legal responsibility to make sure that any property they own is secure. If you need guidance in understanding Florida building codes, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Allied Veterans of the World is a non-profit organization that raises money for veterans. Part of their fundraising strategy in Florida has involved running Internet cafés that take advantage of a loophole in Florida sweepstakes legislation to offer online gambling. Their cafés have been raided and shut down by police in several Florida counties, including Seminole, Marion, Jackson and Pinellas.

They recently filed a lawsuit asking the state of Florida to declare that the cafés do not violate Florida state law. But the circuit court judge threw out the case, saying that local sheriffs are not arms of the state, meaning that Allied Veterans of the World will have to fight for the right to stay open in each of the individual counties where they are attempting to operate. They currently operate twenty five cafés across the state of Florida.

In related news, a lawsuit brought against Allied Veterans of America by Jacksonville Greyhound Racing Inc. will be allowed to proceed. The lawsuit alleges that Allied Veterans of the World is violating Florida's Deceptive and Unfair Trade Practices Act and Florida's Civil Remedies for Criminal Practices Act and that the establishments are a "common nuisance" under Florida Statutes.

Jacksonville Racing is seeking to have all of the cafés shut down and is asking for damages and legal costs. You can read more about the two lawsuits at Tallahassee judge tosses out suit over Internet cafes.

If you have a legal matter that is affecting your business, please contact Wood, Atter & Wolf, P.A. for legal counsel.

The world's largest retailer, Wal-Mart, has settled a class-action lawsuit for forty million dollars. The suit was brought by former and current employees of the company from the state of Massachusetts, and included about 87,500 claimants. They claimed that Wal-Mart deprived them of breaks, failed to pay earned overtime and changed employee timecards to lower their pay. The settlement is the largest of its kind in state history. Anyone working at Wal-Mart between 1995 and the date of the settlement will receive a check from the settlement. The average claimant is expected to receive $734.

The lawsuit is very similar to many other cases that have been brought against Wal-Mart across the country. Wal-Mart has denied the charges in all cases, but has agreed to pay up to $640 million to settle 63 federal and state class action lawsuits regarding wages and hours worked by employees. The Massachusetts case was not part of that larger settlement.

Lawyers for the workers are pleased with the settlement, but felt it could have been bigger. They hope that this case will serve as a warning to other employers to take worker pay seriously. For employers who follow the law, they will now benefit from an even playing field. Read more about the settlement at Wal-Mart will pay $40m to workers.

If you have a question about legal employment practices in the state of Florida, please contact Wood, Atter & Wolf, P.A. for legal counsel.

CRM Holdings is a workers' compensation administration company. The company was sued by a New York State workers' compensation board, which is seeking $405 million in damages for alleged breaches of fiduciary duty, fraud, deceptive acts and mismanagement. The attorney general's office has also informed the company that they will be filing a separate lawsuit that will charge CRM Holdings with business and security fraud for allegedly engaging in deceptive and illegal business practices.

The attorney general, Andrew M. Cuomo, alleges that CRM Holdings purposely underestimated prospective clients' workers' compensation liability in order to lower premiums and attract more business; the practice would ultimately leave those companies with inadequate reserves for covering workers' compensation liabilities.

State officials charge that tens of thousands of workers have been left without insurance as a direct result of malfeasance by CRM Holdings. The attorney general is seeking $150 million from the company to cover the liabilities they have caused. CRM Holdings, which is based in Bermuda and has a Poughkeepsie, New York based subsidiary called Compensation Risk Management, has denied the allegations.

CRM has already surrendered its license as a New York third-party insurance administrator after the New York state workers' compensation officials charged that the company had given them false information, had not cooperated with an audit, and routinely failed to keep adequate reserves on hand for claims. Find out more about the two lawsuits at State Sues Administrator of Workers' Compensation.

If you have questions about workers' compensation or other business law matters, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Florida's Great Northwest is an economic development group that receives most of its funding from public sources. The group has claimed that it is exempt from Florida Sunshine laws, which require public entities in Florida to operate with transparency.

Other development groups in Florida also accept tax money, but claim exemption from the Sunshine Law, saying that the company negotiations they are involved in are very sensitive in nature. State Senator Don Gaetz and Representative Marti Coley have said that they will file legislation to clarify how the law applies to development groups who get their financing from both public and private sources. The legislation will seek to find a proper balance between transparency and privacy.

While Gaetz and Coley do not want to compromise sensitive negotiations, they believe that many functions of Florida's Great Northwest and other groups like it can be carried out in the sunshine without any negative effects on their businesses. The two have also asked Attorney General Bill McCollum for an opinion on whether Florida's Great Northwest should be subject to the Sunshine Law.

Florida's Great Northwest maintains that they are a private organization, not created by Florida statute that does not act on behalf of any state agencies, which means that they are not subject to the Sunshine Law. Read the full article at Bill may clarify Sunshine Law questions.

If you have any questions about how Florida statutes might affect your business, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Section 1346 of Chapter 63 of the U.S. Code identifies a scheme or artifice to deprive another of the intangible right of honest services as being included in the definition of the term "scheme or artifice to defraud." This is also known as the "Honest Service Law." The law was passed by Congress in 1988.

Federal prosecutors in Florida have used the honest service law to go after allegedly dishonest public officials in Palm Beach and Broward counties. Those affected included three Palm Beach county commissioners, a Broward county school board member and a Miramar city commissioner.

South Florida judges have expressed concern over the imprecise language of the law, saying that it fails to clearly outline what behavior is prohibited. The US Supreme Court agrees, with justices calling the law "mushy" and "vaguely written." They argue that an ordinary citizen should be able to easily determine what is considered legal and illegal conduct.

But even if the US Supreme Court strikes down the law, criminals who have pleaded guilty to honest services fraud won't be off the hook for their crimes. The cases against them are supported by overwhelming evidence of illegal acts, and their own confessions of guilt in open court.

Florida State Senator Dan Gelber is attempting to convince the Florida legislature to adopt a statewide version of the law. He has said that his version of the bill will be much more sharply focused and will concentrate on corruption of public officials. He says he will modify his bill based on concerns expressed by the US Supreme Court justices.

Find out more about the controversy over honest services fraud at `Honest Services Fraud' law mushy but necessary.

If you need clarification on any Florida business law, please contact Wood, Atter & Wolf, P.A. for legal counsel.

According to Florida statute, all cigarettes sold in Florida must bear a stamp proving that the excise tax and surcharge have been paid. The Florida Department of Business and Professional Regulation's Division of Alcoholic Beverages and Tobacco is responsible for making sure these fees are paid, among other things.

The organization has introduced a new program, called "PUFS" to encourage ordinary citizens to report illegal tobacco sales. The program is designed to catch businesses who are taking money away from Florida's economy by not paying their fair share of taxes and surcharges.

Under the plan, tobacco retailers are required to conspicuously display a notice where cigarettes are sold. Retailers can obtain the notice from any Division of Alcoholic Beverages and Tobacco location or online at the division's website.

Individuals can call 1-866-540-PUFS to report violations; if the merchant is fined the informant is eligible to collect up to half of the fine as a reward. Callers may remain anonymous. Find out more about the PUFS plan at Department of Business and Professional Regulation Wants Citizens to "Burn" Illegal Tobacco Sales.

If you are a small business owner and need legal advice, please contact Wood, Atter & Wolf, P.A. for legal counsel.

During a 2008 compliance inspection at the University of Florida's main Gainesville campus, the Florida Department of Environmental Protection (FDEP) allegedly observed Resource Conservation and Recovery Act (RCRA) violations by the university. The most serious alleged violation involved improper disposal of a cleaning solvent used to clean the engines of grounds keeping machinery.

The cleaning solvent contained twenty to thirty percent tetrachloroethylene (PCE). Soil samples collected near the maintenance area had concentrations of PCE that exceeded the FDEP Soil Cleanup Target Level for leachability. Groundwater from near the area was also tested and found to have a concentration of PCE exceeding the FDEP Groundwater Cleanup Target Level.

The US Environmental Protection Agency has announced that they have entered into an agreement with the University of Florida to remediate the contamination. The University will also pay a civil penalty of $175,000. While it is unfortunate that this dangerous contamination occurred, it is good to see the FDEP and the University of Florida work together to remedy the situation.

The health of Florida's citizens and its precious water resources are both at stake. Find out more about the alleged environmental violation by the University of Florida and the remediation plans at EPA and University of Florida Sign Consent Agreement Settling Hazardous Waste Violations.

If you own or operate a business in the Jacksonville, Orlando or Gainesville, Florida areas, please contact Wood, Atter & Wolf, P.A. for legal counsel.

SunTrust, the fourth-largest bank in Northeast Florida, received three and a half billion dollars in bailout funds from the federal government. The bank announced that in order to comply with the terms of the Troubled Asset Relief Program (TARP) Standards for Compensation and Corporate Governance, it will freeze the salaries of all but one of its senior officers. The exempt officer is William H. Rogers Jr., who received a pay raise due to an increase in responsibilities.

As another part of the new compensation structure, the bank will not pay any cash bonuses to executives for 2009. The company also instituted a "clawback" policy, which would allow them to recover executive bonuses that were paid out on what later proved to be inaccurate financial statements. The bank's directors have approved the new compensation structure, which has been filed with the Securities and Exchange Commission (SEC). SunTrust has thirty three local branches in Northeast Florida.

Other banks that received bailout funds from the federal government have filed similar compensation plans with the SEC. The changes in compensation were enacted in response to public outcry over the size of bonuses paid to executives in companies which accepted government funds after the financial collapse of 2008. Read more details of SunTrust's new executive compensation plan at To comply with TARP, SunTrust freezes salaries of most executives.

If you own a business in Jacksonville, Florida or Northern Florida, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Florida's Task Force on Residential Mortgage Foreclosure Cases was established to help the state of Florida respond to the foreclosure crisis that has hit the state in the latest recession. The fifteen member task force made its final report and recommendations to the Florida state supreme court in August of 2009. In light of the task force's findings, the court has issued an administrative order to enact the recommendations.

One of the key elements of the order is a provision for creating a statewide foreclosure mediation program. Under the order, any foreclosure on a residential homestead property with a loan that originated under federal truth in lending regulations will be required to go into mediation unless both parties agree otherwise.

The goal of the order is to encourage parties to mediate outside of the courts, which should ease the burden on the already strained court system. At issue is whether there are enough professionally trained mediators to hear all of the suits and whether the new requirements would cause the already slow foreclosure process to a come to a virtual standstill.

You can read more about the Florida foreclosure crisis and the supreme court's response to it at Florida Supreme Court Orders Mediation in Foreclosure Cases!

If you need an attorney to assist you in defending your rights, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Last year, State Farm Florida Insurance Co., the state's largest private property insurer, was denied a 47% rate increase by Florida Insurance officials, and announced that it would exit the Florida market, dropping 1 million policies.

Florida state regulators worked to strike a deal with company to keep it in the state. State Farm has announced that a deal has been made that will keep State Farm in Florida for at least one more year. The agreement allows State Farm to drop 125,000 riskier policies and raise their rates to cover non-hurricane losses. Those whose policies are not being renewed began to receive notices in February, six months ahead of the company's August 2010 non-renewal campaign, as required by law.

The agreement also allows the company to start raising rates by as much as 14.8% on renewal, effective immediately. State Farm will also roll back discounts which have saved Florida policyholders as much as 28% in the past. Additionally, State Farm will release its Florida agents from their exclusivity agreements, allowing them to sell other companies' policies. This will make these agents' jobs more stable should State Farm decide to pull out of the state in the future.

Find out more about the deal between State Farm insurance and the state of Florida at Like a Good Neighbor: State Farm Will Stay, Raise Rates.

If you have a business legal matter, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Florida insurance regulators have placed Coconut Grove, Florida based Magnolia Insurance Company under administrative supervision, saying that the company is in unsound financial shape. The insurer voluntarily agreed to the supervision, which will last at least 120 days from December 14th, 2009. The company's president, H. James Irl, has resigned.

The state stepped in after Magnolia lost its rating from the actuarial firm of Demotech. They lost the rating due to failure to submit financials and other proofs to the firm. Under the terms of the supervision, Magnolia will be restricted in their ability to write or renew policies. They have agreed to work with the Florida Office of Insurance Regulation to develop a plan of action to turn the business around; plans may include selling the business to another company.

According to Florida law, the company is required to notify any of its customers if their policies will not be renewed. Because of this, there will be a short time when Magnolia will be allowed to renew policies that are past the window of notification of non-renewal.

State officials are urging policyholders not to renew with Magnolia but rather to transfer their policies to another carrier before their policy expires. Read more about the woes of this Florida insurance company at Florida Insurer Magnolia Placed Under State Supervision.

If you have a business legal matter, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Florida businesses, take heed: you must give the public notice of your fictitious name! Here is the notice on the Florida Department of State's home page:

NEW LAW! Effective July 1, 2009, the intention to register a fictitious name must be advertised at least once in a newspaper in the county in which the principal place of business will be located. Contact your newspaper for advertising information.

What does this mean? As of July 1, 2009, you will be required to advertise your intent to register your Fictitious Name. Under the Fictitious Name Act (F.S. Title 46 Ch. 865.09), all persons transacting business under any name other than their legal name is required to register this fictitious name. However, actively licensed attorneys and those persons licensed by the Department of Business and Professional Regulation and the Department of Health are not subject to this requirement if it is for the purpose of practicing their licensed profession. Also, any commercial entity, corporation, partnership that is actively registered with the Department of State is exempt from registration under the Fictitious Name Act.

Complying with the new law is easy. A person wishing to register a Fictitious Name need only to advertise the intention to register the name in a newspaper at least once in the county where the principle place of business of the applicant will be located. No proof of advertisement is necessary; the applicant will only be ask to certify that he or she has complied with the advertisement requirement. The applicant can then register the Fictitious Name and pay the registration fees online at www.sunbiz.org. Registration is valid for five years unless the business changes owners or the owner wishes to cancel the registration. Re-registrations, Cancellations and Renewals cannot be filed online; the forms must be filed by mailing them along with the appropriate fees to the Division of Corporations.

Failure to comply with the registration requirement is a misdemeanor of the second degree and is punishable as such (F.S Title 46 Ch. 775.082 or 775.083). Additionally, if a business fails to comply with registration, the business, its members, and those interested in doing such business may not maintain any action, suit, or proceeding in any court in Florida arising out of the transaction of business by such a business until they have complied with the registration requirement. Further questions can be answered by attorneys familiar with Florida business law.

The Internal Revenue Service (IRS) of the United States has announced that it will start working closely with foreign governments to more carefully scrutinize corporate tax returns and those of the rich. The move is designed to stop corporations and wealthy individuals from getting away with "tax arbitrage," a term that describes evading taxes in one country by stashing money in another country with more favorable tax laws.

The program is part of a larger initiative to ensure that wealthy individuals and big corporations comply with US tax laws and pay their fair share. So far, the joint audits will only be held with other countries with whom the US has a treaty to do so. The IRS says they will especially be keeping an eye out for abuses of deferral of taxes on earnings abroad. The crackdown has already netted the US some return; after an investigation UBS AG agreed to pay $780 million in owed taxes.

Corporations and the rich have a duty to pay their fair share of taxes. Those that choose not to comply with US tax laws or try to stretch the rules for their own benefit may very well find themselves the target of a very thorough joint IRS / international audit. Find out more about the new IRS program at US IRS to start co audits with other nations.

If you have a business legal matter, please contact Wood, Atter & Wolf, P.A. for legal counsel.

Florida horse and dog tracks have had a hard time competing with Seminole Indian casinos. Casinos are still the only place a Florida resident can play traditional blackjack, but the track owners have persuaded the state of Florida to allow them to offer electronic blackjack to their gamblers.

The virtual blackjack game does not feature a real dealer and a green felt table, but it does offer starting bets as low as $3; the Seminole casinos start at a $10 minimum. Another major difference between the two games is the fact that the cards dealt in electronic blackjack are generated completely at random, which convinced the state to consider the games equivalent to slot machines and allow them at racetracks.

The casinos have been criticized for continuing to offer real blackjack, ever since a 2007 pact with Florida Governor Charlie Christ that allowed them to offer blackjack was invalidated by the courts. Florida Attorney General Bill McCollum has gone so far as to request that federal authorities step in to prevent the casinos from offering any so-called "banked" games. The tribe points to the licensing of blackjack at the racetracks as a clear signal that they are allowed to offer blackjack as well. Federal regulators are still looking into the issue.

In the meantime, Florida blackjack players have their choice of the real thing or the electronic version. Find out more about this story at South Florida parimutuels bet on virtual blackjack machines.

In these difficult times even non-traditional businesses such as casinos, racetracks and others in the gaming industry have hurdles to overcome in attracting a dwindling share of the market. Businesses becoming increasingly creative in securing that market share should seek legal advice to ensure that those expanded activities are in compliance with the law.

If you live in the Jacksonville, Florida or Orlando, Florida area and have a business legal matter, please contact our firm, Wood, Atter & Wolf, P.A., for business legal counsel.

A Jacksonville, Florida Circuit Judge was ordered to recuse himself from a foreclosure case brought by Bank of America's Countrywide division against Joseph W. Mines Jr. According to court records, Mines, who is representing himself in the matter, was close to losing his home when he filed a complaint against the Judge, stating that he believed an affiliate of Bank of America had given the judge a favorable loan interest rate that was not available to the general public.

The appeals court in Tallahassee, Florida required the Judge to remove himself from the case, saying that if the allegations were true they would be cause for Mines to fear that he would not receive a fair and impartial hearing. For the sake of all concerned, including the Judge, it is preferable that such matters be heard in an atmosphere free of even a suggestion of partiality. It should be noted that the Appeals Court did not say that the allegations against the Judge were true.

With the high rate of foreclosures in Florida, more cases like this one are bound to show up in the newspapers. Judges and attorneys alike need to be sure that their personal and business dealing are completely above board in order to maintain the public's trust. Read more details about the allegations at Judge in Countrywide Case Removed Over Claim of Discount Loan.

If you live in the Jacksonville, Florida or Orlando, Florida area and have a business legal matter, please contact our firm for business legal counsel.

In the course of business, you may often receive emails that are punctuated at the end with a disclaimer that reads as follows: "The contents of this email are intended for the aforementioned recipient and are confidential." But are these messages effective in protecting your valuable business information and trade secrets?

The general answer is that such disclaimers do not protect anything. The reason behind this is that a disclaimer does not create a legally binding contract. For an agreement to be enforceable, all parties involved must agree to the terms. A disclaimer is nothing more than a warning from one party to the other. And besides, what good does the disclaimer do after the entire body has been read?

To protect your confidential information, avoid sending it though email. Instead, send the data through the regular postal service and package it in a box or envelope bearing a "confidential" or "classified information" stamp. If it is absolutely necessary to send the information through email, then place a disclaimer at the very beginning of the message. In this manner, if an unintended recipient receives it, they will not have to read the entire message to realize it is confidential.

In 2008, a California appeals court decided that even if a patient is harmed by a manufacturer of a generic drug for failing to warn consumers of possible side effects, the manufacturer of the brand name equivalent could still be liable for negligent misrepresentation.

In Conte v. Wyeth, Inc., the plaintiff, Elizabeth Conte, was prescribed Reglan for acid reflux. The generic equivalent is metoclopramide. After using the generic version of the drug for four years, she developed tardive dyskinesia, a neurological disorder. The condition is associated with tremors and involuntary twitches. Judge Peter Siggins reasoned that name-brand drug manufacturers know or should know that doctors would prescribe the generic equivalents, and the brand name manufacturers thus must educate doctors and consumers about possible side effects of the drugs, regardless of which version is ultimately prescribed.

It is important to note that the manufacturers of the generic drugs are not absolved. They simply now share liability with their brand-name competitors.

Newly appointed Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office David Kappos has wasted no time in getting down to business in his new post. Mr. Kappos has moved to cancel a hotly contested regulations package under consideration.

The so-called Continuation Rule, Request for Continuing Examination Rule, and Claims Rule were all supported by the previous USPTO administration. These provisions placed caps on the number of continuing applications and RCEs per parent application, and the number of independent/total claims in an application.

I'm glad to see that these rules will not take effect because they limit an inventor's options during patent prosecution and reduce the protection he or she can secure. Why impede technological progress for minimal gains in USPTO efficiency? Mr. Kappos clearly made the right play here!

Consult a patent attorney to find out the exact boundaries of current patent law!