Business and Tax Lawyer Blog

Former Lehman Bros. Trader Says It Is Not Over – By Far

Sun, 05 Sep 2010 10:30:34 -0500

Former Lehman Bros. trader Lawrence McDonald told a University of North Florida audience last month that "the party is just getting started" in the legal fallout from the failure and Chapter 11 bankruptcy filing of the major Wall Street investment banking and securities brokerage firm.

McDonald, co-author of A Colossal Failure of Common Sense: The Inside Story of the Collapse of Lehman Brothers, said that regulators and prosecutors have already contacted many of the whistle-blowers who helped him write the book.

Lehman executives are potential targets for alleged accounting fraud prosecution in what the company called "Repo 105" transactions, an accounting loophole that allows a company to temporarily sell securities in order to move them off its balance sheets prior to the release of quarterly earnings, and then repurchase them after quarterly results are announced.

McDonald said that "Lehman Brothers told the world that they were in the moving business, not the storage business. They were wrong."

He places the blame for the collapse of Lehman squarely on the shoulders of top executives: "The collapse of Lehman Brothers comes down to one sentence: There were 24,992 people making money and eight guys losing it."

Making wise business decisions sometimes requires the help of savvy legal and tax counsel. If your company could use some assistance, contact our Jacksonville, Florida business and tax law firm.

Wrongful Termination: Could You Have Been Fired Illegally?

Sat, 04 Sep 2010 10:30:30 -0500

Businesses today are under increasing pressure to demonstrate profitability, which many do by reducing headcount. If you feel you have been a victim of wrongful termination, you may have legal recourse in Florida.

Wrongful termination may apply if you:

Have a written contract – while most employment is "at will" – meaning an employee can be fired for any reason at any time – having a formal contract may entitle you to additional protections.

Have an implied contract – if you have an agreement with your employer based on things your employer has said or done, this could also void the "at will" status of your employment. However, this can be difficult to prove, particularly in Florida.

Can prove a breach of good faith – if your employer has acted unfairly, you may have a claim for a breach of good faith and fair dealing.

Can prove retaliation – if you have been fired because you filed a complaint with the EEOC or have formally complained about your employer, you may have a claim for retaliation.

Are a whistle blower – employees who report unlawful activities or actions that could cause public harm are protected by whistle-blower laws.

Can prove defamation – if your employer has damaged your reputation through false statements to others.

Can prove fraud – if your employer intentionally tricked you or acted deviously on purpose.

If you think you may be a victim of wrongful termination and need more information, contact Wood, Atter & Wolf, P.A. a Jacksonville, Florida business and tax law firm.

What Employers Need to Know About Florida Workplace Laws

Fri, 03 Sep 2010 10:30:59 -0500

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.

McDonald's Threatened With Lawsuit Over its Happy Meal Toys

Thu, 02 Sep 2010 10:30:58 -0500

The Center for Science in the Public Interest, a consumer advocacy group, threatened to file a lawsuit against McDonald's claiming that the fast-food giant "unfairly and deceptively" markets its Happy Meals toys to children. CSPI argues that McDonald's engages in marketing tactics that influence children into nagging their parents to take them to McDonald's so the children can get the toy inside the Happy Meal. The consequence? Obese children, says CSPI. The consumer advocacy group believes the toys inside Happy Meals violate state consumer protection laws in Massachusetts, Texas, the District of Columbia, New Jersey, and California.

In 2007, McDonald's pledged to advertise two types of Happy Meals to children under the age of 12: one with four Chicken McNuggets, a side of sliced apples with caramel dip and low-fat milk; or one with a hamburger, apples and low-fat milk. Both meals are less than 600 calories. However, CSPI argues that children still go to McDonald's and order the unhealthy meals. To read more about CSPI's suit against McDonald's see McDonald's Threatened With Lawsuit for Pairing Toys With Happy Meals.

What Every Inventor Needs to Know About Getting a Patent

Wed, 01 Sep 2010 10:30:11 -0500

America is a nation of inventors. If you have a great idea and are considering obtaining a patent for it, there are several things you need to take into consideration before applying:

Does it already exist? Be sure you conduct a thorough patent search to ensure that your invention is something new.

Does your invention qualify? You cannot patent an idea. You must also be able to demonstrate that your invention is new and how it works. Plus, your invention cannot have been for sale or known about for more than a year before the patent application is filed.

Have you kept good records? You should have kept careful written records of each step in your invention process, with descriptions and diagrams that demonstrate how you came up with the idea. You may also need to have built and tested a prototype.

Does your invention have commercial potential? Applying for a patent takes time and money, so you should be sure your invention has commercial potential before you apply. Doing research on the market and assessing demand will help you determine if it is worth it to file for a patent.

If you have an invention that meets all these qualifications and are interested in learning more about the patent process, contact our Jacksonville, Florida business and tax law firm.

First Coast Manufacturers Association Reports Members are Upbeat about Economy

Sun, 29 Aug 2010 10:30:08 -0500

Members of Jacksonville, Florida's First Coast Manufacturers Association employ more than half of the region's 45,000 manufacturing workers. A current survey of members revealed that Jacksonville manufacturing businesses have an upbeat outlook on the economy for the first time in a long time. Forty-four percent of those who responded said that they expect their revenue to show growth in the first half of 2010 and sixty eight percent said that they expect growth in the second half of this year.

Lad Daniels, president of the First Coast Manufacturers Association, said that the results show much more optimism from manufacturing business owners than just eight months prior. According to Daniels, this is good news for the Jacksonville workforce as well. Most manufacturing employers have no plans to shrink their labor force during the rest of the year, and thirty one percent reported that they were planning to hire additional workers in 2010.

The news that such a major employment sector was not planning any layoffs and might actually be adding jobs is a promising sign for both Jacksonville workers and Jacksonville businesses.

Find out more about the First Coast Manufacturers Association's survey results at Manufacturers on First Coast optimistic.

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

Jacksonville, Florida Businesses and Residents Join Forces to Clean up Riverside Area

Sat, 28 Aug 2010 10:30:39 -0500

The Riverside area of Jacksonville, Florida is best described as an eclectic mix of residents and businesses from various ethnic and economic backgrounds. The Riverside Avondale Development Organization recently organized a community cleanup project to pick up litter throughout the area. The event gave local businesses an opportunity to show that they are interested in being a part of the local community – and that they are not just another bank or another store.

The event, which was co-sponsored by Florida Bank and Harpoon Louie's, drew business owners and their employees along with area residents, who walked a three mile area of the neighborhood with bright blue trash bags. They were able to fill nearly a hundred bags with trash removed from the area.

The organization promoted the event using social media tools like Facebook, Twitter, and Constant Contact alongside more traditional methods such as going door to door to talk to business owners and hanging up flyers in the area. Businesses gave donations of t-shirts, refreshments, and gift cards to reward participants, and Green It Up Clean It Up provided trash bags and safety equipment for the volunteers.

Residents and merchants alike deemed the day a success, and hope to turn their attention to other community improvement projects in the future. Read more about the Riverside community cleanup at Riverside cleanup connects neighbors, merchants.

Popular Opinion Website, Yelp, Sued by Several Small Business Owners

Fri, 27 Aug 2010 10:30:45 -0500

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.

What Jacksonville, Florida Small Business Owners Need to Know About Employee Work Hours

Thu, 26 Aug 2010 10:30:29 -0500

If you own a business that operates strictly in Florida, you need to be aware of and follow Florida Labor laws. Employee work hours can be a particular point of contention between business owners and workers; some of the highlights of the Florida statutes governing work hours include:

Application of Federal Law

The Federal Fair Labor Standards Act only applies to businesses that engage in interstate commerce. If an issue arises that is not covered by Florida state law, then the Federal Law would apply. Florida cannot give less protection in this area than is provided by Federal Law.

Overtime pay

Hourly employees are entitled to overtime pay for any time worked over forty hours in one week. As a general rule, the rate must be at least one and a half times the employee's regular pay rate. If a worker is subject to a collective bargaining agreement, the provisions of that bargaining agreement would apply. Federal law also provides special overtime rules for retail and service workers, hospital employees, and fire protection and law enforcement professionals.

Work day overtime

If you require more than ten hours of work in a day from an employee who was hired to do manual labor by the day, week, month or year, you are required to provide extra pay for the excess hours unless you have a written contract with the employee that states otherwise. This does not apply to hourly employees.

Employee contracts

In Florida, the courts have held that there are no contractual rights conferred by employee manuals or handbooks unless it is stated specifically. Employers should still, as a matter of caution, specifically recite that the manual or handbook does not provide contract rights to workers.

Failure to pay overtime

If a Florida employer fails to pay overtime, the affected employee may file a civil suit in federal court. There is a two year statute of limitations on such claims.

Find out more about Florida employment law at Florida Work Hours Laws.

If you live in North Florida and have an employment legal matter, please contact our Jacksonville, Florida law firm.

Can Social Media Help Your Florida Business?

Wed, 25 Aug 2010 10:30:23 -0500

People are beginning to prefer social media as a channel of communication and information. This is also true with businesses. Social media can provide great benefits in reaching investors and customers.

This form of communication is becoming more important for businesses as it has become more important in society. Ninety-three percent of United States citizens expect to interact through social media to find jobs, learn about consumer goods, and socialize.

Social media benefits various types of businesses, using business-to-business tools as well as business-to-consumer tools. It is important to know which social network tools are more effective for different purposes. For example, Twitter and Facebook may be more apt at reaching consumers, whereas Twitter and LinkedIn work well in reaching other businesses.

In contrast, social media can be detrimental if used improperly. As a result, businesses should develop a social media policy. In the absence of a well-considered policy, different business locations or divisions may project the wrong image and hurt the overall brand. Also, if one business location uses a social network to distribute coupons, it should be clear whether the coupons are valid for that one location or all locations of the business.

Potential for Florida Commercial Foreclosure Crisis Looms Large

Tue, 24 Aug 2010 10:30:36 -0500

As one of the largest markets in the U.S. for commercial real estate loans, Florida is at risk of significant financial losses if commercial foreclosure forecasts prove correct, says one Jacksonville business and tax attorney.

Florida Attorney General Bill McCollum has put the Florida state legislature on notice that they need to act quickly to avert the potentially devastating consequences of predicted commercial foreclosures.

In a letter to Florida House Speaker Larry Cretul, McCollum noted that while the Florida residential foreclosure crisis has been top-of-mind throughout the state, commercial foreclosures may have an "even greater potential to negatively impact the state and national economies...In anticipation of this crisis, the Legislature may wish to review current Florida law and the finding of the Congressional Oversight Panel."

In February, the Congressional Oversight Panel released its Commercial Real Estate Losses and the Risk to Financial Stability report, which cited numerous troubling trends: rising vacancy rates, falling property prices and rising commercial real estate loan delinquency rates.

McCollum said that other states have already enacted laws that could ease the pain of commercial foreclosures, and that legislators should consider similar measures for Florida.

New Jacksonville, Florida Small Business Racks Up Sales Offering Perfect Product for Down Economy

Mon, 23 Aug 2010 10:30:45 -0500

Despite the still lagging economy, a tiny Riverside bicycle shop in Jacksonville, Florida opened its doors in February of 2010 – and racked up 100 sales and 500 Facebook fans in its first month of operation. While the store, called ZenCog, considers itself a high-tech business, it sells a very old-school product: steel-framed, single speed, coaster-braked bicycles.

Co-owner Garfield Cooper of Avondale, Florida actually attributes the store's success to the poor economy. He says that people can't afford to spend lots of money on their cars, so bikes make a great alternative. And the old-school type of bikes that he sells are inexpensive to maintain since they don't have gears or brake cables.

Co-owner Clark Schaffer of Atlantic Beach, Florida believes that the store's more durable steel frame bikes are the perfect alternative to what he calls "disposable aluminum high-performance bicycles" that cost a lot more to purchase and maintain.

Shaffer and Cooper say they just want to see more people riding bikes; it is great exercise and doesn't pollute the atmosphere. The store has already attracted a fan base of local residents who come by the shop just to hang out.

This is an excellent example of a business finding a niche that can flourish in current economic downturns and recognizing how to "touch" its market segment. Even though their product may be old-school, their business model isn't. The store has embraced social media marketing, with an active website, blog and Facebook page. They use emailed receipts to cut down on paper waste. They also don't carry any new inventory. They use the internet to help customers customize bikes, which the store then assembles for them when the parts arrive. The only bikes they keep on site are consignment and refurbished.

Find out more about Jacksonville, Florida's newest bike shop at New Riverside bicycle shop cruising along despite economy.

Slander Verdict Dogs South Florida Hospital

Sun, 22 Aug 2010 12:30:43 -0500

Jacksonville business attorneys have taken note of a verdict awarding a South Florida heart surgeon $6.5 million for breach of contract and slander that has been upheld by Florida's Fourth District Court of Appeals.

The suit, brought by the surgeon against a Fort Pierce, Florida hospital, resulted in a $1.5 million award for breach of contract and a $5 million award for slander. The slander: a hospital executive said he would not send his dog to the surgeon.

In its 32-page opinion, the appellate court specifically condemned the hospital's attack on the doctor's reputation, noting that "the wrongdoing underlying the punitive damages in this case has Florida law's most severe condemnation, its highest blameworthiness, its most deserving culpability."

The 11-year court battle between the surgeon and the hospital may continue, as the hospital says it is weighing its options to have the decision reviewed by the Florida Supreme Court. The hospital's lawyers argued on appeal that the slander award was excessive under the U.S. Constitution; because of that argument, the appellate court said that the State Supreme Court could review the award.

See more about the lawsuit at $6.5M verdict upheld in slander case.

Trademark Battle: Whiskey River v. Whiskey Creek

Sat, 21 Aug 2010 09:45:05 -0500

Whiskey Creek, a Nebraska based chain company, is seeking to enjoin "Whiskey River," (a well known restaurant establishment with a location in the Jacksonville area) from using this name for their business by alleging trademark infringement.

Interestingly enough, only nine trademark infringement claims were filed in all of 2009 in the Jacksonville area. However, Whiskey Creek has a restaurant location in south Florida and is claiming that the two business names, logos, and menus are confusingly similar to customers and they want Whiskey River enjoined from using its name.

Spokesmen for the Whiskey River camp say they are in compliance with trademark law and that the two restraunts have very different atmospheres and not confusing to consumers. There are several different state and federal laws pertaining to trademark infringement with numerous factors a court looks to in determining confusion. Furthermore, even if confusion is established, there are multiple defenses available to infringement claims that a party will have to overcome in order recover equitable and monetary damages. Find out more about the going concerns in the article at Whisky River, Whiskey Creek? Jacksonville businesses fight to keep trademarks: Similarity of names, logos, missions leads to legal challenges.

The Director's Guild of America Looks to the Federal Government for Help Regualting Intellectual Property Rights

Fri, 20 Aug 2010 11:45:06 -0500

The Director's Guild of America has teamed up with other entertainment associations and are looking to the federal government for continued support in controlling Internet piracy. The Department of Homeland Security's U.S. Immigration and Customs Enforcement (ICE) recently launched "Operation in our Sites." in support of these efforts.

In fact, the operation found early action and has seized at least nine domain names of nine different websites that hosted pirated material. Assets were seized from various banks and other third party intermediaries such as PayPal in an effort to discourage contributing to online piracy.

Online advertising companies that facilitate or contribute to pirating companies will also be regulated closely and face heavy penalties if they are caught assisting. The operation's efforts will not be restricted to just domestic violators but international entities who infringe as well. For further information check out the article Fight Against Internet Theft Expands.