Tag Archive | "Litigation"

Financially Bailing Out the Auto Industry: Yes or No?

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The auto industry is struggling just like everyone else…While people are unable to pay for their cars, the industry as a whole loses out, big time. Now, the debate over whether Congress should provide a financial bailout to the industry is in the works. However, automakers are being pushed to “abandon four lawsuits against 14 states that challenge state power to set emission standards.”

“The idea that the citizens of 14 states have to help bailout an industry and pay the cost of the litigation against them is bizarre,” said David Bookbinder, Sierra Club’s chief climate counsel in Washington, D.C., who also coordinates the multiple cases.

Attorneys are asking for an end of opposition to state stringent limits on greenhouse gas emissions. “Any legislation giving financial support to the auto industry,” says Vermont’s William H. Sorrell, “also should be dependent on a commitment by the auto manufacturers to drop their opposition to California’s greenhouse gas emission standards.”

According to Sorrell, the auto industry, in the Vermont and California cases, have spent millions of dollars on expert witnesses and legal fees for the lawsuits challenging California’s Clean Air Act standards.

Popularity: 1% [?]

The Right to Vote

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Voting season is rounding the corner and with this year’s election coming up, everyone and I mean EVERYONE is looking for their chance to vote. The past eight years have been a reality check for those non-voting Americans. Whether you are pro or anti Bush, it has become very clear that we all need to use the great privilege of having the right to vote. And that is why voting rights litigations are becoming an ongoing legal issue around the entire country.

Challenges attacking state restrictions on voter registration, purging of voter rolls and identification requirements are reaching the surface. Already in Florida (yeah, shocker, I know), Georgia, Michigan, Nex Mexico and Wisconsin, lawyers are set to “resolve or enjoin lingering disputes over voter registration checks mandated in the Help America Vote Act of 2002 or address a host of other claims,” stated the National Law Journal.

What more can I say…when it’s on, it’s on and voters are pulling up their sleeves and making damn sure they cash in this time!

 

Popularity: 3% [?]

Hell No, Homeowners Won’t Go

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It’s a doggy dog world in the real estate business. As more homeowners find themselves in hot water, according to Frank Ingrassia, an attorney who has recently filed roughly 70 suits against a variety of home lenders, “It’s an industry-wide problem.

“Some of the clients tried to do workouts and weren’t able to do that, and when you are faced with foreclosure, it’s an issue of striking first or not.

Litigation is a new approach for dealing with unprecedented levels of foreclosures,” added Ingrassia.
As featured in Law.com, the story centers on Denise Bennett, a woman who recently discovered that her “7.6 percent fixed-rate mortgage” with Countrywide Home Loans was anything but 7.6%, which they originally promised. Blindly scheduled to adjust in November from $1,400 to $1,700, Bennett is fighting back. Suing her lender on June 26 alleging fraud, the case is assigned to U.S. District Judge William Zloch in Fort Lauderdale.

Like this suit, stated John Pacenti in Law.com, “nearly all of the lawsuits involve adjustable rate subprime mortgages to high-risk customers. Ingrassia said some of his clients were offered ‘teaser rates’ as low as 1.5 percent that adjusted up within 30 days. The lawsuits also allege Calabasas, Calif.-based Countrywide and the other lenders falsified paperwork that exaggerated the income of the customers to qualify for the loan.”

While the Charlotte, N.C.-based Countrywide was purchased by Bank of America last week in a $4 billion stock deal, the bank had no comment on pending litigation against Countrywide. In Bennett’s case, her attorney, Ingrassia, is seeking rescission of her mortgages as well as damages including reimbursement of all mortgage payments, finance charges, interest, attorney fees and costs.

In short, Ingrassia doesn’t play and neither should anyone who finds themselves victimized by their lenders. According to Ingrassia, the lender violated Florida’s Deceptive and Unfair Trade Practices Act and the federal Truth in Lending and Real Estate Settlement Procedures Act.

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Popularity: 6% [?]

Risk Management - 8 steps To Avoid Litigation

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Accidents, mistakes and misunderstandings can happen in any business. Some are settled amicably, others grow into full-blown disputes, and before you know it you could be facing a legal claim.

Being sued is stressful, time-consuming and expensive. Even if you win the case the disruption to your business can outweigh any financial gains. A key objective for most businesses is to avoid being drawn into litigation in the first place and here we outline the steps freelancers can take to safeguard their business against litigation.

Eight steps to safeguard your business

  1. Professional contract agreements.
    No work should be done without a contract. Always have one in place that defines scope of services and terms of remuneration before you commence an assignment. Without an agreement the opportunities for misunderstanding and controversy are numerous.
  2. Documentation and tracking changes.
    A common source of dispute is when the client believes they have asked for a solution that does one thing only for the freelancer to deliver a solution that does another. Know who is responsible for when things go wrong. Meticulously document client requirements and be particularly vigilant when changes creep into a project - as it is easy to lose track of them. Make sure all changes are costed and signed off. These records will be of immense value in defending against legal claims.
  3. Checking work.
    Freelancers are not required to be perfect. However, this does not relieve them from the obligation to check their work because this is one of the standard systems used to discover and correct errors. Errors, per se, are not evidence of malpractice, but failure to check the work product is.
  4. Communications with the client.
    Many of the claims made by clients are not for serious damages but are based simply on discontent and dissatisfaction with the Freelancer. This is often brought on by the Freelancers own lack of consideration of the client. Seemingly minor things such as missing deadlines, lateness to meetings, unavailability by telephone, failure to return emails, and failure to keep the client informed at all times. With this background of discontent, a real problem such as exceeding the cost or time budgets will trigger an avalanche of serious legal problems. The best way to keep clients happy is to treat them with respect, keep them informed, and maintain a friendly relationship.
  5. Early recognition of potential disputes.
    When issues do arise, dealing with them quickly and professionally can prevent them developing into a major problem. Burying your head in the sand never makes disputes disappear. Deal with complaints in an appropriate way and seek advice from a solicitor who understands IT law if your issue escalates. Most insurers offer a free 24 hour advice helpline, which will put you in touch with experts on how to best handle your situation.
  6. Early recognition of potential disputes.
    When issues do arise, dealing with them quickly and professionally can prevent them developing into a major problem. Burying your head in the sand never makes disputes disappear. Deal with complaints in an appropriate way and seek advice from a solicitor who understands IT law if your issue escalates. Most insurers offer a free 24 hour advice helpline, which will put you in touch with experts on how to best handle your situation.
  7. Meeting budgets
    • Costs.
      Clients become very dissatisfied and resentful when costs exceed the approved budget. In such situations, the client may give serious consideration to making claims against the freelancer as well as withholding payments of professional fees.
    • Time.
      Overall scheduling of a project should be realistic and should be updated whenever necessary. Client approvals should be sought all along the way. When the client is counting on use of the project at a certain date, failure to receive it will often be very expensive. Freelancers must avoid being a contributing factor in schedule slippage by failing to make prompt decisions and delivering work late.
  8. Fees and charges.
    Many client dissatisfactions are based on fee disputes. In some cases this is because the billing is not clear and consistent with the written contract. All invoices should be rendered on time and strictly in accord with the contract. If the bill is not paid within a reasonable time, the best thing to do is talk to the client to find out if there is any misunderstanding. A billing adjustment to satisfy a client at this point will usually be less costly than fighting and paying lawyers later.
  9. Have an up to date Professional indemnity insurance policy in place.
    Litigation is always costly, however big or small your case is. It makes sense to have an up to date Professional Indemnity Insurance policy to defend your legal position-just in case. Read the policy wordings carefully and make sure they are relevant to your profession.

Although we may never achieve perfection, we can at least try. By being constantly alert and aware of the usual sources of errors, we might lessen their occurrence. From time to time we should stand back and take a good objective look at our operations. Even minor improvements could prevent or avoid some economically ruinous claims. These suggestions above are not all-encompassing, but should help you avoid being sued by your client.

The above article was provided by Coulson Pritchard Associates, specialists in professional indemnity insurance solutions. They can be contacted on 01480 470220 for further information or visit at http://www.freelanceinsure.co.uk

Popularity: 3% [?]

Ebay files suit against Craigslist

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This is sort of unexpected… It looks like Ebay is trying to sue Craigslist over some kind of dilution of share value. Ebay is a minority shareholder in Craigslist (not that minority though, owning 28%).

I’m sure the execs at Ebay have been fairly jealous of Craigslist, in that they have an equal market share in the selling of aftermarket goods online with almost none of the overhead that Ebay has, while still managing to make a respectable profit with hardly any cost to the users.

Ebay tried to copy Craigslist a while back by creating a similar site called kijiji.com, besides being nearly impossible to remember, has failed almost entirely. I think they fail to realize the reason why Craigslist is so popular, being that it is part of west coast culture and has been for many years. Posting classified adds online isn’t a revolutionary concept, and there really isn’t much need for anything more complicated than Craigslist for most things.

Some people on Slashdot had some insightful comments on this.

Luyseyal wrote:
Hostile takeover. Ebay files the lawsuit to devalue the shares. Then, Ebay buys up more and more shares to have greater control over an eventual vote. Ebay tenders an offer for Craigslist. Since it owns more, it can influence the shareholder vote more significantly. Ebay wins the auction (ha) and cancels the lawsuit.

This is an interesting strategy… but kind of unethical though don’t you think?

Drhamad wrote:

1) Craigslist is a closely held company not traded on the open market
2) This is a dilution suit. This means that basically, in a closely held company, it’s easy for a majority shareholder to screw a minority shareholder, since the minority shareholder can’t outvote them and can’t get other shareholders to support it. Therefore, we have a lot of laws protecting minority shareholders. In this case, it seems that eBay has issued extra stock, which means that eBay no longer really has 28%, but rather less, effectively. This CAN be legal, but there has to be a solid, nonpredatory reason for it.
3) eBay managed to get its share because craigslist had issued some shares to close employees, on the assumption that it didn’t matter and was just to feel nice. One of those employees decided to sell his stake publicly, and eBay bought it. Normally, no one would have been able to get access to Craigslist stock.

Looks like trouble in paradise.

Popularity: 3% [?]