News & Information

Social media necessarily gives rise to a host of legal issues, from privacy concerns to ethical implications to potential criminal and civil liability. Communications on Facebook might even violate a no-contact order, or could have implications at trial if there are contacts between judges, lawyers or jurors. Lawyers frequently use social media as a source of information in discovery, but some jurisdictions have attempted to impose boundaries on those investigations. Employers, in particular, need to be aware of protected speech considerations with respect to their employees’ use of social media. .. Read full article.

The limited liability company (LLC) structure generally shields members of the LLC from personal liability for company debts. However, when members of an LLC abuse or ignore certain company formalities, a court may disregard the entity altogether, thereby exposing members to personal liability... Read full article.

Businesses that buy and sell “goods” ordinarily use printed purchase order and acceptance forms to consummate their commercial deals. Such forms invariably contain a laundry list of terms and conditions that the buyer and seller hope to fall back on if push comes to shove, such as warranty clauses, damage limitation clauses and the like. Frequently, however, the buyer or seller comes to discover that the terms and conditions on which they had hoped to rely did not become part of the contract. Worse still, sometimes the buyer or seller comes to discover that the other party’s self-serving terms and conditions govern the transaction. .. Read full article.

Domain names may now be registered in the new .xxx domain space. While the .xxx domain space is specifically designed for the online adult entertainment industry, trademark owners outside of the adult entertainment industry should be concerned about the impact these domain name registrations could have on their trademarks. For instance, if a company’s registered trademark is “Your Company,” a third party could obtain the domain name “YourCompany.xxx” and connect it to a website used to distribute pornographic materials... Read full article.

Financial institutions could unwittingly be violating the Fair Labor Standards Act, 29 U.S.C. §201 et seq., by failing to pay mortgage loan officers overtime compensation. In a March 2010 decision, the United States Department of Labor (DOL) determined that most mortgage loan officers are not exempt from the overtime provisions of the Fair Labor Standards Act (FLSA). .. Read full article.

In an April 21, 2011 opinion, the Michigan Court of Appeals ruled in Residential Funding Co., LLC v. Saurman that Mortgage Electronic Registration System (MERS), an entity used by many banks and mortgage companies, cannot foreclose by advertisement. Does this mean that these mortgage lenders will be required to judicially foreclose, a more expensive and time-consuming procedure that will give borrowers in default more time to stay in their homes? Most likely not... Read full article.

It is always exciting to pick and then launch a new name for a business, a service or a product. Nothing ends that excitement faster than receipt of a letter claiming that the new name infringes on someone else’s trademark. .. Read full article.

If you are a secured lender involved with restaurants, grocery stores, food distributors, or any other business that deals in fruits and vegetables, it is necessary to learn certain aspects of the federal Perishable Agricultural Commodities Act (PACA), 7 U.S.C. § 499a et seq. and the affect it could have on your secured right in your debtor’s collateral... Read full article.

An executive with unique skills, a strong relationship with customers, an excellent industry reputation, and no covenant not-to-compete or not to solicit the employer’s customers should consider structuring a transaction with an acquirer as a sale of personal goodwill. Often, this opportunity will arise in conjunction with a business transaction that is structured as an asset sale by the executive’s employer... Read full article.

On September 28, 2010, U.S. Immigration and Customs Enforcement (“ICE”) announced that it had reached a $1,047,110 “fine settlement” with clothing retailer Abercrombie & Fitch (“A&F”) for violations of the Immigration and Nationality Act relating to A&F’s obligation to verify the employment eligibility of its workers. The ICE announcement revealed that the fine settlement was the result of a November 2008 worksite inspection of A&F’s retail stores in Michigan. The massive fine was issued even though A&F was fully cooperative during the worksite investigation and even though the investigation failed to reveal any instances of the knowing hiring of unauthorized aliens. The ICE announcement revealed that since ICE’s initial inspection, A&F has agreed to take measures to revise its immigration compliance program and has begun to implement new procedures to prevent future violations of federal immigration laws... Read full article.

Many individuals, typically parents, desire to convey certain real property to their children during the parents’ lifetime because they want to make certain that the property does not pass through probate proceedings at their death or because they want the children to have the use of the property during their parents’ lifetime. However, one important tax consideration is often not taken into account. If the parents deed the property to a child during the parents’ lifetime and the parents do not stay on title as a joint owner, then the children receive the property with the same tax basis that the parents had in the property. The tax basis is essentially what the parents paid for the property plus any capital improvements to the property (such as additions to buildings or other improvements on the property). Typically the parents’ tax basis is very low in relation to the property’s fair market value. Then if the child eventually sells the property, the child will pay capital gains on the difference between the fair market value at the time of sale over the amount of the parents’ tax basis. This can result in a substantial tax bill to the child.
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I was contacted by a client recently in a panic because a woman kept calling her and telling her that she needed a revocable living trust and that if she did not have one, then she would lose a large portion of her estate to legal and probate fees. When I asked who this woman was, my client said that she was with some “law firm.” The mystery woman said that my client had returned a post card asking for such services. Even though my client knew that she had not returned any card, the calls kept coming with greater pressure being applied with each call. .. Read full article.

It often does not occur to parents that when their children turn age 18, they are no longer minors under Michigan law. Once a child reaches 18, he or she has legal independence from parents and the ability to enter into contracts and execute other documents including estate planning documents. Although most 18 year olds have not yet accumulated substantial assets, they should execute certain basic estate planning documents. .. Read full article.

A living Trust is an estate planning vehicle that allows you to transfer assets to the Trust during your lifetime typically to be managed for your benefit by you as the initial Trustee during your lifetime. Upon your death, the Trust would typically provide for distributions to children or other beneficiaries. If you transfer assets to the Trust during your lifetime, those assets will avoid probate proceedings at your death. Trusts can also avoid or minimize estate taxes for married couples who have larger estates. .. Read full article.

This article is intended to provide some insight into the factors to consider in selecting successor trustees of your trust. It is intended as a general guide for informational purposes. It is not a substitute for specific legal advice pertaining to your particular trust.

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The following is a list of some of the typical tasks that a trustee or successor trustee will need to perform. The list is not necessarily in chronological order and is not intended to cover every task that may arise since each trust is different... Read full article.

As a general rule, you should own your car in your own name alone. The primary reason for this is to limit your liability exposure. If your car is involved in an accident, most likely you will be the one driving at the time. If someone is injured as a result and they bring a claim for negligence that exceeds your liability insurance coverage, then only your individually-owned assets will be exposed to that claim. If you are married, your spouse’s assets and many of the assets you own jointly with your spouse will be protected because your spouse is not responsible for your negligent acts. However, if you own your vehicle jointly with your spouse, almost all of your assets, your spouse’s assets, and your joint assets will be exposed to the liability (there are exceptions for certain retirement assets). As an owner of a vehicle, your spouse is responsible for the acts of those operating the vehicle. Therefore, the way to best limit your liability exposure is to have the vehicle titled solely in the name of the person who operates the vehicle most often... Read full article.

Many adult children today find themselves caring not only for their own children but also for their parent. This is a difficult transition for the adult child who has always thought of their parent as strong and independent. It is also difficult for the parent because they need to accept that they are losing some of their faculties and are now vulnerable and in need of assistance. The challenge for the adult child is to know when to move from the traditional role of a child to that of a caretaker for a parent. .. Read full article.

Many clients believe that their Will or Trust will govern the distribution of all of their assets upon their death. If you read those documents, they typically sound all-encompassing. However, in reality, assets such as life insurance and retirement plans are contractual arrangements between the owner of the asset and the company administering the insurance policy or retirement plan. .. Read full article.

Did you know that the burden is upon you to prove that you have repaid your student loans, and that the government is not subject to any statute of limitations in its efforts to recover payments it believes are due?.. Read full article.

The Michigan Townships Association 59th Annual Educational Conference will be held at the Detroit Marriott Renaissance Center in Detroit from January 25 through 27, 2012. The Conference features educational programs and workshops for township officials, appointed personnel and township employees... Read full article.

It is not uncommon for a local government to be asked to donate something for charitable or related purposes. These requests can be varied, ranging from requests for outright cash donations, to sponsorship of tables at award banquets or speaking events, or perhaps for the sponsorship of display booths at local events. .. Read full article.

More and more, municipal websites are becoming a primary avenue for access to community resources and information. While most municipalities are familiar with the need to provide barrier free access to their buildings, parks and other community resources, many do not provide barrier free access to their website. .. Read full article.

Recent events in Lansing evidence a consistent change in policy regarding the role of local municipalities in Michigan. Since Governor Rick Snyder assumed office in January 2011, he has proposed several major reforms to local government, and, under his leadership, the state legislature has introduced and passed multiple bills in furtherance of those reforms. When viewed in isolation, any one of these seemingly unrelated proposals tells an incomplete story of the future of local government in Michigan; however, these actions collectively reveal a more complete picture of the Governor’s vision for Michigan—a vision characterized by the diminishing role, authority, and involvement of local government in favor of private industry... Read full article.

In the recent case of Township of Elba v Gratiot County Drain Commissioner (October 18, 2011), the Court of Appeals held that circuit courts may exercise equitable jurisdiction to consider challenges to a drain commissioner’s authority to act on drain petitions where a writ of certiorari is an inadequate remedy... Read full article.

In the case of Hopkins v Township of Duncan (October 20, 2011), the Court of Appeals held that personal notes of a township board member taken during a meeting are not public records subject to disclosure under the Freedom of Information Act (FOIA) where the notes are not taken in furtherance of an official function, not used for public body record keeping, and not utilized in substantive decision-making... Read full article.

On July 20, 2011, the Governor signed into law Act 113 of the Michigan Public Acts of 2011 (“Act 113”), which amends Act 110 of the Michigan Public Acts of 2006, commonly known as the Zoning Enabling Act. Act 113 overturns the Michigan Supreme Court decision of Kyser v Kasson Township (July 15, 2010), and reestablishes the former longstanding rule that a zoning ordinance cannot prevent the extraction of valuable natural resources by mining from any property unless “very serious consequences” would result from the extraction. This rule was commonly referred to as the “no-very-serious-consequences” rule... Read full article.

In a recent decision in the case of Edw C Levy Co v Marine City Bd of Zoning Appeals (July 19, 2011), the Michigan Court of Appeals held that Act 110 of the Michigan Public Acts of 2006, commonly known as the Zoning Enabling Act, does not permit the reversal of an order, requirement, decision, or determination of an administrative official or body unless a majority of all the members of a zoning board of appeals votes to do so... Read full article.

Billboard companies and advertisers have been taking advantage of new light emitting diode and similar technology to convert existing “static” billboards to digital billboards. Another form of changing sign, sometimes called a “tri-vision sign,” uses a mechanical system of rotating slats or cylinders to display several images. These tri-vision installations are becoming less common with the increasing use of digital billboards... Read full article.

The Michigan Supreme Court, in a close 4-3 decision, reversed the Michigan Court of Appeals and found in favor of front lot owners claiming riparian rights in a case involving a public road running parallel to the lake between the lake and the front lots. The road at issue in the case entitled 2000 Baum Family Trust et al v Babel ran along Lake Charlevoix, and had been maintained since its dedication in 1911 under the 1887 Plat Act. Many lots near Michigan’s 11,000 inland lakes were platted during this period and, like the Baum lot, are separated from the water by a public road running parallel to the shoreline. In the Baum case, the front lot owners had historically used the waterfront property across the road for boat dockage and other riparian uses. When back lot owners began using the waterfront in a similar manner, the Baums filed an action against the Charlevoix County Road Commission and back lot owners claiming trespass. In response, the Road Commission sued the front lot owners for trespass claiming that the riparian rights belonged to the Road Commission because the front lot owners only owned to the center of the road, and because the plat dedication under the 1887 Plat Act transferred a “fee” interest. In addition, the Road Commission noted that the local taxing authority assessed the front lot properties as “water view” lots and not as “water front” properties. .. Read full article.

While the $789 Billion American Reinvestment and Recovery Act of 2009 is predominately a “jobs bill,” it contains a number of housing-related incentives for homeowners and home buyers. .. Read full article.

Foreclosure consulting businesses are proliferating due to the high residential foreclosure rates brought on by rate increases in adjustable mortgages and by the challenging economy. While there are variations of the foreclosure consulting business, in most cases the consultant looks for homes that are in foreclosure but on which the redemption period has not yet expired... Read full article.

Fewer transactions involving the sale of real estate will escape the State Transfer Tax now that House Bill 6122 has become law. The primary purpose of House Bill 6122 (Public Act 473 of 2008) is to amend the State Real Estate Transfer Tax Act (“Act”) to include the sale of a controlling interest in an entity if real estate comprises 90% or more of the fair market value of the assets of the entity being transferred... Read full article.

The Housing and Economic Recovery Act of 2008 (“The Housing Act”) may change the amount of capital gain that a homeowner may exclude after the sale of a principal residence. The use of a home as anything other than a principal residence is considered a “non-qualifying use” that prevents the homeowner from excluding any gain upon sale from his or her income. Under previous rules, after the owner of a non-qualifying use home used the home as a principal residence for two years, the owner could sell the home and exclude up to $250,000 in gain from his or her income or up to $500,000 for married couples filing taxes jointly. The Housing Act now requires the owner to prorate the amount of gain that can be excluded based on the amount of time the home is used as a principal residence compared to the total length of ownership. .. Read full article.

Bankruptcy of a tenant significantly alters the rights and obligations of tenants and landlords under a lease of real property. The complex workings of the Bankruptcy Code as applied to real estate leases necessitates careful analysis of the unique circumstances of each specific situation to determine the effects of a tenant’s bankruptcy. This article is intended to provide a general overview of the consequences of a tenant’s bankruptcy filing... Read full article.

Recent changes to the Michigan brownfield tax credit program provide real estate developers and owners increased incentive to redevelop brownfield properties. The State of Michigan provides tax credits against the Michigan Business Tax for redevelopment of contaminated, blighted or obsolete properties. For years, the brownfield tax credit program has provided a valuable incentive for real estate owners and developers to redevelop brownfield properties which otherwise might not have been developed due to the high cost of environmental cleanup or rehabilitation of an obsolete building. In April, revised brownfield credit legislation was enacted which raises the amount of the tax credits available and increases the flexibility in realizing the financial benefits of the tax credits... Read full article.

A relatively unusual form of deed is becoming more commonplace and you may want to know what it is and why people are using them. The deed is referred to as a “Ladybird Deed.” Lyndon Johnson reportedly used this type of deed to convey property to his wife upon his death. Essentially, a ladybird deed indicates that if the person signing the deed (the “grantor”) still owns the property at his or her death, then the property is conveyed to one or more people or entities (the “grantees”). The grantor of the deed reserves a “life estate” in the property and the right to sell the property during their lifetime and to retain the sale proceeds. As a result of this retained right to sell, the execution of the deed does not result in a completed transfer of the property because the grantor retains the right to revoke or “undo” the conveyance. If the grantor does not sell the property during their lifetime, then the property passes to the grantees without probate proceedings at the grantor’s death. The grantees record the grantor’s death certificate with the register of deeds office in the county where the property is located to show that they are the new owners of the property. .. Read full article.

Sooner or later, most people involved in the real estate business find themselves in a dispute of some kind. It may involve a buyer and seller, a competitor, a current or former employee, a co-owner, an investor, or worst of all, a customer. Disagreements can range from breach of a purchase agreement, non-payment of a commission, earnest money deposits, undisclosed environmental issues or other problems concerning the condition of the property. .. Read full article.

Using a “drop-down LLC” to sell real property has become popular in Michigan’s commercial real estate industry. This popularity is driven by the seller’s desire to escape substantial transfer taxes imposed by the State of Michigan on a traditional sale. So how does a “drop-down LLC” transaction work?.. Read full article.

Licensing requirements for residential builders and maintenance and alterations contractors, as well as penalties for failure to comply with the licensing requirements, have increased significantly due to new legislation that was signed into law on December 20, 2007. .. Read full article.