HD Law Partners Blog

In December, McDonald’s Corp. won a major battle in a multiyear legal battle with labor unions concerning alleged corporate labor violations at its many franchise restaurants. The ruling absolves the company of any direct responsibility as a joint employer when it comes to contracted labor, indicating that, without strong evidence that companies directly control the workers, they cannot be held liable for any labor violations that the franchise is involved in. According to the agency judge on record, this was the “largest case ever adjudicated in the history of the National Labor Relations Board.”

Labor unions started filing charges related to unfair labor practices against the company in 2012, claiming that it retaliated against employees for participating in union activities, including protests and strikes. Their argument in the case was that the national company shares control over workers in the franchise restaurants, and should therefore share in the liability.

As noted recently by the president of the Florida Association of Public Insurance Adjusters in the Sun Sentinel, the level of frustration currently felt by Florida policyholders is greater today than ever due to the number of hurricane insurance claims that are either egregiously delayed or denied. Indeed, this is frequently found to be in violation of the insurance company’s contract with its client, who is essentially paying for a ‘promise’ each month—a promise that the company will pay out, timely, for a loss in exchange for the client paying their insurance premium each month.

However, insurance companies have been doing such a poor job when it comes to their basic responsibilities that a recent statement made by the state’s top insurance regulator regarding insurance companies paying claims within 90 days, as required by law, has a number of parties concerned, especially the Florida Association of Public Insurance Adjusters. In reality, according to data provided by the actual insurers, more than 100,000 Floridians are still waiting for claims from Hurricane Irma, Matthew, and Michael to be paid.

Most business owners choose to initially choose to form as a sole proprietorship because it costs less and there is less bureaucracy. However, many also switch to either a C corporation or a limited liability company (LLC) at some point in order to benefit from additional protections.

While we have previously discussed the advantages of having an S corporation, we have not specifically discussed why small businesses may want to initially form as an S corporation, which provides a number of unique benefits, especially to startup companies. Below we discuss the characteristics and benefits of each classification:

C corporations provide the most protection from liability for both shareholders and business owners because they allow the businesses to exist as separate entities. Because the C corporation is a legally separate entity, any legal repercussions have no bearing on the individual owner(s)’ personal assets. It also offers a significant amount of flexibility when it comes to buying and selling stock shares, offering employees stock options, and allowing for an unlimited number of shareholders; amongst other benefits. While dividends are taxable as income, business expenses, employee benefits, and retirement plan expenses are tax deductible to the company. C corporations can be costly due to a number of filing fees that must be paid, and the steps to form a C corporation can also be elaborate. Specifically, the following is required:

When it comes to child custody, the general ‘trend’ today is to encourage joint custody, which allows a child to share the same or close to the same amount of time with both parents, and includes both legal (decision-making) and physical (where the child spends their time) custody. According to extensive studies, children who spend at least 35 percent of their time with each parent – where a developmentally-healthy, safe, secure environment is provided – are not only more likely to have a better relationship with that parent, but also tend to do better academically and otherwise. Studies also indicate that child in single and/or fatherless homes are more prone to homelessness (90 percent), dropping out of school (71 percent), and teen suicide (63 percent).

That being said, one-size-fits-all is, of course, never the case when it comes to child custody decisions; meaning that of course there are circumstances under which it does not make sense, for example, if there is a history of domestic violence or other illegal activities with one parent, or if the child has special needs and/or otherwise finds it debilitating to go between two households for other reasons, such as anxiety.

We’ve all had or heard our fair share of horror stories when it comes to landlord-tenant issues: renters who failed to pay rent, applicants who claimed they were discriminated against, people who claimed that they were injured on the property, etc. As a commercial landlord, there are several basic steps that you want to take before you rent to any tenants, and as attorneys who regularly help landlords with commercial leases, eviction proceedings, and other legal issues that come up, we emphasize taking these initial steps with our landlord clients, and discuss them below.

Read up on the different issues that landlords encounter and how to minimize risk, including the good, the bad, and the ugly.  This includes the full gamut of issues: how to screen potential tenants, your rights as a landlord, etc. Also try to speak with experienced landlords and learn from their mistakes, for example, the pros and cons of renting to friends.

As commercial landlord and tenant attorneys, we frequently have clients approach us asking about how to handle a commercial eviction proceeding for tenants who have failed to pay rent. Commercial property lawyers can be especially helpful in not only helping you draft the right commercial lease before your tenants move in so that you have adequate safeguards in place in the face of a worst-case scenario, but also in helping to advise you on what your rights are, as well as managing irresponsible tenants, if that worst-case scenario occurs.

Landlords have to be careful when it comes to evicting commercial tenants because, if it is not done in accordance with what procedures the law dictates, you can get into significant trouble. Below, we describe some steps you can take – ideally with the assistance of a commercial landlord attorney – to address the issue of tenants not paying rent:

The documents that you set up with your tenants are one of the most important aspects of your rental (or lease) agreement with them, as well as the safeguard you have to ensure that you are protected. Therefore, you not only want to invest time and resources into making sure that document says what you want and addresses issues that may come up—such as what happens to those tenants if you need to move into or sell the property—you also want to spend some time rechecking those documents and records before you take formal steps to evict these tenants. This is because, where specific terms are not spelled out in the agreement, state-mandated terms apply. While Florida law does not mandate that landlords provide tenants with any grace period within which their rent can be late (even though some states do), it is common for landlords to offer a five-to-seven-day grace period after it is due.

As attorneys who frequently represent homeowners’ associations here in Florida, we often see associations challenged on what are known as special assessments. These assessments are often necessary, still, there are tactics that associations can use in order to mitigate some of the effects and avoid litigation from owners in some circumstances, as we discuss below.

Special assessments are fees that are charged in addition to regular fees that are expected; typically to make up for budget shortfalls. While regular dues are charged monthly or quarterly, in order to keep the community running in terms of operating expenses such as electricity, exterior maintenance, insurance, landscaping, management, and others, associations also keep reserves to fund such expenditures such as street repaving and roof replacement. Reserve needs are determined by reserve studies, which determine the schedule for repairs over a 30-year timeline, as well as estimated costs. Florida requires condo associations to have reserves studies performed once every three years, however homeowners’ associations typically only have the studies done as often as what their governing documents require.

In contemplating whether or not you want to get a divorce, the experts suggest not only asking yourself what your goal is and whether divorce is your best option to achieve it, but to analyze a number of potential red flags, as opposed to just one. Below, we discuss 12 that you may want to take a close look at:

You are no longer eating together

While this may seem like a minor issue, it may be a sign of something more major—i.e. that the two of you are disjointed and lacking in that connection time.

They are suffering from addiction and refuse to get help

This not only applies to issues such as alcohol, drugs or gambling, but severe mental health issues as well, especially any that are endangering you or others.

You are only still together because of your children

If this is the case, it could be a sign that the connection between the two of you has suffered or that you have put so much energy into your children that the relationship has suffered. Keep in mind that in some circumstances, it can be more difficult on your children to wait to divorce until they are older or leave home for college if there are unhealthy behaviors associated with staying together.

The Court of Appeals for the Eleventh Circuit (which includes Florida) recently reopened a product liability case (involving a plaintiff who sued Ford for breach of an implied warranty of merchantability due to a seat belt coming undone during an auto accident) that could have tremendous implications for manufacturers, distributors, suppliers, and others in the stream of commerce.

Specifically, while the previous judge ruled in favor of the defendant (Ford) in an allegedly defective seatbelt case – finding that the seatbelt worked when the truck was sold 10 years’ prior and was “altered in the meantime,” which led to the subsequent accident and injury (through no fault of the manufacturer) –  the US Court of Appeals for the Eleventh Circuit vacated the trial court’s ruling (summary judgment for Ford), finding that a “reasonable person” could expect that a “seatbelt should not come undone in an accident 10 years later simply due to normal wear and tear.”

f you are pursuing a divorce, there are a number of issues you want to make sure you discuss with your divorce attorney and, in some cases, related professionals, such as your financial planner, so as to ensure that your future finances and retirement are protected, as we discuss below:

First, make sure you know what your monthly expenses look like – as well as your immediate needs and how they will be affected by the divorce – for example, will you need a new car and place to live, will there be insurance changes, groceries and gas to purchase, etc. Start small and work into bigger items, such as retirement savings.

Make sure that part of this involves managing your costs during the divorce. This includes tracking any money spent on financial planners, your divorce attorney, and any other professionals you have been working with. Also make sure that you are familiar with the timeline for the process so that you know exactly how long will be paying for these professionals.