Missouri Liquor Franchise Bill Stalls in Senate Missouri’s alcohol franchise bill, currently stalled in the Missouri Senate, would reinstate protections for local distributors that were placed in serious jeopardy after a 2011 court case redefined the meaning of the term “franchise” in Missouri. The change essentially abolished competition protections that local distributors in Missouri have enjoyed since the 1970s. The controversial law would require suppliers to have “good cause” to terminate a contract with a distributor. Proponents of the bill say that the legislation is necessary to protect home state interests from out of state competitors and ensure a competitive… Read more

Recent Cases Court Strikes Down NLRB Rule Mandating Union Posters In early May, a federal court of appeals struck down a controversial National Labor Relations Board (NLRB) rule that would have required employers to post information informing their employees of their rights to unionize. The court noted that the National Labor Relations Act ensures an employer’s right to free speech as long as the employer does not use threats. The court reasoned that this gave employers the right to remain silent. Therefore, the court ruled that mandating the posters would be the equivalent of mandating speech and violated the employer’s… Read more

The Farrell family agreed to sell their lakeside property in Skaneateles, New York to the White family for the $1.725 million asking price with a $25,000 deposit, and the balance was to be paid in cash at closing.

“Sugary Drink” Ban – New York A state judge invalidated New York’s so-called “sugary drink” ban, which was to come into effect on March 13, 2013, holding the regulation to be “arbitrary and capricious.”  The new law would have banned sales by food service establishments of “sugary drinks” larger than 16 ounces in the City of New York.  The law utilized an expansive definition of “sugary drink,” to include any carbonated or non-carbonated beverage that is (i) non-alcoholic, (ii) sweetened by the manufacturer or establishment with sugar or another caloric sweetener, (iii) has greater than 25 calories per eight fluid… Read more

A Georgia low income housing organization, recently lost its bid for property tax exemption for the years before the organization’s facility actually opened. Last month, the Georgia Court of Appeals held that the exemption did not apply to the start-up phase, during which the organization was obtaining financing, constructing and renovating. According to the Court, the organization can claim exemption only when the organization is actually providing charitable services — in this case housing tenants. What This Case Teaches: When setting up a charitable venture, find a way to begin serving the target population early in order to obtain exemption… Read more

Forklift Dealer Held to be a Missouri Franchise A federal district court ruled that a forklift dealer’s relationship with its manufacturer constituted a “franchise” under the meaning of the Missouri Merchandising Practices Act (the “MMPA”), and that the manufacturer had violated the MMPA by failing to give the dealer only 22 days’ notice of termination, instead of the statutorily mandated 90 days’ notice. In arriving at its decision, the court noted that a written agreement between the dealer and manufacturer granted the dealer a “nonexclusive privilege to identify itself as an Authorized Dealer, and to display, in the conduct of… Read more

Here is a case for making sure you choose the right spouse and friends in life. A New York State court recently held a widow and her two friends liable in connection with the production of a “sham” Will for the widow’s deceased husband and its admission to probate. The court’s decision illustrates a terrible family tragedy and the grave consequences of failing to follow the law by doing “favors” for friends or family. After the death of the widow’s husband in 2005, the widow convinced her two friends to witness a fake Will for the decedent backdated to 2003…. Read more

The seminal event in a closely-held and/or family held business is the exit. It is often the one and only chance for the owners to generate substantial liquid wealth both for themselves and to pass down to subsequent generations. Exits almost always take place in what is known as an “M&A” (merger and acquisition) transaction. Such transactions can be like a football match. The idea is to get over the goal line which, in the M&A context, means the closing and funding of the purchase price. However, even the owners who have worked hard for years and are now in… Read more

On March 23, 2010, President Obama signed the “Patient Protection and Affordable Care Act” (H.R. 3590) (the “Patient Protection Act”) and on March 30, 2010, President Obama signed the “Health Care and Education Reconciliation Act of 2010” (H.R. 4872) (the “Reconciliation Act”) into law. The Reconciliation Act incorporated modifications to the Patient Protection Act that were approved by both the House and the Senate. The Congressional Budget Office estimated that the health care reform legislation would provide coverage to 97% of Americans at a cost of $940 billion over the next decade. Due to higher taxes and fees, and Medicare… Read more

If I were a betting man, I would have lost this bet a long time ago. After all, just who would have wagered any money that President Barack Obama would have agreed to one of the most far reaching and affluent friendly pieces of estate and gift tax legislation of the past decade? It just goes to show that trying to predict what our politicians are going to do is an impossible task. With that said, our clients are in a unique period of unparalleled opportunity to transfer wealth to their descendants. The new law known as The Tax Relief,… Read more