The Brady Bunch was meant to be a humorous show about the difficulties of merging two families with kids. But 50 years after the show debuted, there isn’t really any joke about it. Merged families are the norm, and for parents working to ensure that their kids feel part of a new family unit, there can be unique challenges.
When you’re acting as a stepparent, you’re familiar with the challenges of providing parental guidance in a substitute role. If the child’s biological parent is absent or unknown, the stepparent usually feels more free to take an active role.
Many stepparents choose to go the extra mile in adopting their stepchild. The adoption process can be sticky, but here are four things to keep in mind if you choose to adopt a stepchild.
1. For estate planning purposes, the stepchild is now your child.
If your will leaves things split “between my children,” this includes both biological and adopted children. You can, of course, disinherit (or limit the inheritance of) a specific child. This means that you may still adopt a child without allowing them the same inheritance as your children. For stepparents adopting a child, this often isn’t a concern. If you want to treat them like your kids during life, you may wish to treat them like your kids after death. But you should still be aware that, absent clear language in your will, the adopted stepchild becomes your “issue” for all legal purposes. And if you don’t have a will, the adopted stepchild will inherit by default. (And if you don’t have a will—get one!).
2. Adoption will require the biological parent you’re “replacing” to terminate parental rights.
In the event that the “original” parent is still involved in the child’s life, that parent will have to terminate parental rights for you to adopt your stepchild. Your spouse’s co-parent may have good reasons to agree to terminate rights, however. For example, the co-parent who terminates their rights will not have to pay child support and will not have obligations as a parent. If the co-parent is far behind on child support to begin with, it may benefit all parties for the stepparent to adopt.
If the biological parent you are replacing has passed away or was never known, then the process is simpler. You can step into that role with the consent of the biological parent.
3. In the event of a divorce, both of you will have custody rights.
One more thing you should consider when adopting your stepchild is that you will acquire legal rights as a parent. This means you can make decisions about the child’s schooling, rearing, discipline, religious instruction and more. In the event that you and the child’s parent separate, you’re entitled to custody rights the same way a biological parent would be. An adoption is a permanent mechanism, and it doesn’t dissolve just because the parental relationship does.
4. Adopting a stepchild can help the stepchild feel part of a “real” family.
Not every child will feel the same way about being adopted by a stepparent. There can be a feeling of loss for the child who loses connection, even in an intangible way, with the “original” biological parent. And the adoption by a stepparent can change the relationship from a more “fun-loving” relationship to one that is more serious. But many children express happiness about the family situation normalizing. Some stepchildren want the opportunity to see their stepparent as their “real” parent and claim a sense of normalcy in the process.
Obviously, depending on the child’s age, it’s important to speak with the stepchild together as a family and see how he or she will feel about this step. A child’s preferences should not be disregarded lightly, and it might make sense to let the process take some time as all of you adjust to the idea of an adoption before taking the steps to formalize the relationship.
Conclusion: Adopting a stepchild is a big decision
In conclusion, adopting your stepchild can be a beautiful and loving thing to do. It also requires some effort to accomplish. Most importantly, everyone involved in the situation needs to understand that it is permanent. If you’re considering adopting a stepchild, call the family law attorneys at Cornerstone Law Firm so we can help you through the process and help you consider all of the options. Our attorneys love adoptions, and we’re here to help you figure out the process.
Adopting your Stepchildren
/in Custody, Family Law, Wills /by Cornerstone LawThe Brady Bunch was meant to be a humorous show about the difficulties of merging two families with kids. But 50 years after the show debuted, there isn’t really any joke about it. Merged families are the norm, and for parents working to ensure that their kids feel part of a new family unit, there can be unique challenges.
When you’re acting as a stepparent, you’re familiar with the challenges of providing parental guidance in a substitute role. If the child’s biological parent is absent or unknown, the stepparent usually feels more free to take an active role.
Many stepparents choose to go the extra mile in adopting their stepchild. The adoption process can be sticky, but here are four things to keep in mind if you choose to adopt a stepchild.
1. For estate planning purposes, the stepchild is now your child.
If your will leaves things split “between my children,” this includes both biological and adopted children. You can, of course, disinherit (or limit the inheritance of) a specific child. This means that you may still adopt a child without allowing them the same inheritance as your children. For stepparents adopting a child, this often isn’t a concern. If you want to treat them like your kids during life, you may wish to treat them like your kids after death. But you should still be aware that, absent clear language in your will, the adopted stepchild becomes your “issue” for all legal purposes. And if you don’t have a will, the adopted stepchild will inherit by default. (And if you don’t have a will—get one!).
2. Adoption will require the biological parent you’re “replacing” to terminate parental rights.
In the event that the “original” parent is still involved in the child’s life, that parent will have to terminate parental rights for you to adopt your stepchild. Your spouse’s co-parent may have good reasons to agree to terminate rights, however. For example, the co-parent who terminates their rights will not have to pay child support and will not have obligations as a parent. If the co-parent is far behind on child support to begin with, it may benefit all parties for the stepparent to adopt.
If the biological parent you are replacing has passed away or was never known, then the process is simpler. You can step into that role with the consent of the biological parent.
3. In the event of a divorce, both of you will have custody rights.
One more thing you should consider when adopting your stepchild is that you will acquire legal rights as a parent. This means you can make decisions about the child’s schooling, rearing, discipline, religious instruction and more. In the event that you and the child’s parent separate, you’re entitled to custody rights the same way a biological parent would be. An adoption is a permanent mechanism, and it doesn’t dissolve just because the parental relationship does.
4. Adopting a stepchild can help the stepchild feel part of a “real” family.
Not every child will feel the same way about being adopted by a stepparent. There can be a feeling of loss for the child who loses connection, even in an intangible way, with the “original” biological parent. And the adoption by a stepparent can change the relationship from a more “fun-loving” relationship to one that is more serious. But many children express happiness about the family situation normalizing. Some stepchildren want the opportunity to see their stepparent as their “real” parent and claim a sense of normalcy in the process.
Obviously, depending on the child’s age, it’s important to speak with the stepchild together as a family and see how he or she will feel about this step. A child’s preferences should not be disregarded lightly, and it might make sense to let the process take some time as all of you adjust to the idea of an adoption before taking the steps to formalize the relationship.
Conclusion: Adopting a stepchild is a big decision
In conclusion, adopting your stepchild can be a beautiful and loving thing to do. It also requires some effort to accomplish. Most importantly, everyone involved in the situation needs to understand that it is permanent. If you’re considering adopting a stepchild, call the family law attorneys at Cornerstone Law Firm so we can help you through the process and help you consider all of the options. Our attorneys love adoptions, and we’re here to help you figure out the process.
My Case is Easy: Do I need a Lawyer?
/in Civil Law /by Cornerstone LawShouldn’t law just be common sense? We hear this question all the time. If your case is easy and straightforward, do you still need a lawyer? The answer is yes. If you are going to court, you should have a lawyer by your side. But what if your case is easy? What if it’s open and shut?
Lawyers do more than “win hard cases,” or explain things that are complicated. A lawyer can help you understand the past cases that have been decided about your issue and can review the laws that the legislature has passed regarding your situation. A lawyer can also help you gather and organize the evidence that you have to make sure it is presented in a clear way.
Furthermore, the rules of evidence that govern what a judge or jury is allowed to even hear about are complex, and you need to be prepared to make sure you “get your evidence in” when you are at court.
The most important thing that lawyers do for you is to help you understand the type of judge that will be deciding your case. If your case is a jury trial, a lawyer will also have experience in knowing how juries make decisions. Although the case may seem simple to you, you may be surprised at how the other side paints it as more complicated or confusing. Having a good lawyer means having someone who can keep the case simple and explain it to the decision makers in your case.
Having a good lawyer also means having someone on your side who can show you the weaknesses in your case. No case is ever really easy—and it’s important to understand all the things that can go wrong as you proceed.
If you’re going to court, as either a plaintiff or a defendant, call Cornerstone Law Firm today to talk to one of the attorneys about how we can help you to present your case.
What is the penalty for filing a false PFA in Pennsylvania?
/in Civil Law, Custody, Divorce, Family Law /by Cornerstone LawWhen someone lies in a Protection from Abuse petition, an incredible amount of consequences follow for everyone involved. The person who is named as the defendant in a PFA temporarily loses access to their guns and is often evicted from their home pending the outcome of the case. Sometimes the defendant is even evicted from a home where the victim did not live. Furthermore, the defendant named in a PFA is sometimes barred from seeing his or her own children during the pendency of the PFA.
For as long as courts have existed (and longer, of course), people have lied to get what they want. In Pennsylvania, some people have learned that they can lie on a petition and wreak these consequences on a defendant. So what are the consequences to the person who filed the PFA if what they said in the PFA is a lie? Can you pursue the person who filed and seek to have them punished for what they said in the PFA?
First, it is important to win the PFA. The initial step in seeking consequences is to win the battle over the PFA. This means going to the court appearance, hiring an attorney to defend you, and having the petition for a PFA dismissed. A good family law attorney can help you with this process and it’s important not to try it alone. If the judge does not believe your side of the story, the judge can enter a three-year PFA order against you, and at that point it will be all but impossible to pursue any action against the person who filed the PFA because the judge will have found the filing to be true.
Do not underestimate the potential danger in a PFA petition. PFAs are granted everyday in Pennsylvania, in every county, and often on nothing more than the word of the alleged victim who filed the PFA. Gathering evidence, preparing your defense, and having the right attorney to defend you are vital in this step of the process.
Review any false statements in the PFA. Once you have won the PFA action, the next possible step that you can take is to review whether there are any statements in the PFA that are factually false. It’s important to note that we are referring now to factually false statements and not merely opinions. Someone who says in a PFA, “I feel very afraid of this person,” is not likely to be prosecuted for perjury or face any other consequences. This is a statement of feeling or opinion, and even if it’s not “true,” or even if it’s not based on any objective facts, the alleged victim is generally entitled to their own opinion of the situation.
But of course, statements that can be proven to be lies or which are later contradicted under oath at the hearing can be the subject of a perjury charge. PFAs are filed under oath. The person who is sworn in and said the petition was true and correct to the best of their knowledge can face criminal charges for lying in the petition where specific facts are later disproven by video, physical evidence or by contradiction by the alleged victim at a hearing.
Consider whether the PFA petition was filed to set up custody or divorce, to lay the groundwork for a separate civil law action. Most importantly, in considering a PFA that was filed against you, you should consult with your attorney about what other moves you believe the alleged victim is going to make in this matter. For example, did they merely file a PFA in order to surprise you with a divorce or custody petition? Did they file a PFA to put a cloud over your job or bring some sort of civil action against you claiming damages? Or was it just a moment of vindictiveness after a bad breakup? Understanding what the alleged victim’s next move is will be important in preparing to defend yourself against any other actions that they may take against you. In most cases, the best offense is a good defense: it is important that you beat the PFA charges. Whether you actually want to take action against the person who filed may depend on what other actions you think they may try to take against you. Playing this chess game can be exhausting, but it is important to think through it with an attorney who can give you good advice on your specific situation.
Conclusion: seek a family law attorney today. If you have questions about a PFA that’s been filed against you, contact one of the family law attorneys at Cornerstone Law Firm to discuss your case. Our attorneys have experience defeating PFAs, walking people through custody and divorce actions, and more. Call us today!
How do I subpoena a police report?
/in Berks County, Car Accident, Civil Law /by Cornerstone LawWhen you are trying to get ahold of a police report after a car accident, an assault, a neighbor dispute or for any other reason, you may find that the process is very confusing. Police departments do not always produce their reports upon request, and some will tell you that you have to file a subpoena.
Unfortunately, under Pennsylvania law, to subpoena a document you must have an active case that you are a part of. This means either that you are the criminal/defendant in the case or you are a party to a civil action where you are suing or being sued. Accordingly, if you are trying to serve a subpoena on a police department, you must be a party to one of those actions. Additionally, government entities have the power to serve subpoenas in certain types of investigations, but private parties do not have similar power.
If you are not a party to one of these actions, you can consider whether you should file one in order to subpoena the documents that you need. This might mean suing the neighbor or the individual that you are in a dispute with, or in extreme cases, suing the police department if you think that you have grounds to do so. In most cases and for most people, rather than subpoenaing a police report, you should consider one of two other options.
FILING A RIGHT TO KNOW REQUEST
A Right To Know is a request under Pennsylvania law to a government entity to produce records that are in their possession. This is the state law equivalent to a Freedom of Information Act request (FOIA). Some states call these Open Records laws. Simply put, the Right To Know request allows you to request documents that the police may be holding onto, including police reports.
However, police departments routinely refuse to produce police reports claiming that they are part of “an active criminal investigation.” This is sometimes true, even after they have said there will be no charges from an incident. Although this is not technically correct, it often practically results in a brick wall in trying to obtain these police reports.
PAY FOR A POLICE REPORT
If you have been a part of a car accident, you may have the right to obtain the police report by paying the police department for it. In addition, there are a number of websites that offer this service. At Cornerstone Law Firm, we routinely retrieve these as part of personal injury cases for clients. The difference and the reason that you can obtain it here is because investigating a personal injury is one exception that most police departments will properly recognize as a reason to obtain a police report.
CONCLUSION
If you are trying to obtain a police report as part of an investigation or as part of a personal injury case, call the experienced attorneys at Cornerstone Law Firm to talk about how best to go about obtaining the police report and also to discuss whether there are any other ways to get the information that you are after. Our attorneys can help determine the best course of action and figure out your next steps.
What can I do with a short certificate?
/in Estate Administration, Probate, Wills /by Cornerstone LawWhen you obtain a short certificate for an estate, what does it empower you to do? The short certificate is the document granted by the Register of Wills in a county to the Executor of an estate. The Executor, having named and granted these “letters of administration” is given power to sell assets belonging to the deceased person, pay their bills in the proper order, list real estate for sale, negotiate with creditors, give notice to beneficiaries and more.
For many people, the first interaction after a loved one’s death that gives rise to the need for a short certificate is the bank. Having gone to the bank to try to get their family member’s bank account they hear that the bank needs this short certificate to obtain the money. Short certificates must be honored by banks, who accept them as proof from a court that you are the designated person to deal with the assets after death and ensure that the creditors are paid. When you take the short certificate in and submit it to the bank, they can give you a check to be placed in an estate account. Often, a bank will offer to open the estate account there if you don’t already have one set up.
Additionally, if listing a house, the realtor will need the short certificate to prove that you have the right to list it. This will also be required at closing when a buyer’s agent will need to see it to verify that you have the proper authority to transfer title to the home. Once again, the short certificate is the only way to prove conclusively that you are the proper administrator of the estate.
Most creditors will accept payment even if you don’t have a short certificate, after all, who doesn’t want to get a check? But short certificates are still important when negotiating with creditors for a lessor claim. In some cases, not all creditors can be paid, and the Executor will be called upon to pay debts in their proper order and to attempt to reasonably compromise some debts to ensure that more creditors are able to get money. Please note that this should be done with the guidance of counsel, as there are several legal issues that can arise if you don’t handle this correctly. Nonetheless, the short certificate is the document that demonstrates your authority to settle the claims on behalf of the estate.
Why is it called a short certificate? What is the short certificate “short” for? Technically, the short certificate is a one-page version of the Grant of Letters, which is a long document issued by the Register of Wills. In most cases, the Registers of Wills don’t even issue these documents anymore. They are kept on file in case one is needed, but the short certificate is all that is used in practice. The “short certificate” is the stand in for the longer court order.
Opening an estate comes with many responsibilities and also empowers the Executor to make decisions on behalf of the estate. But in closing, here’s an important point: opening an estate is not always the right decision. In fact, in some cases it is a major mistake. There are tax consequences to how estates are handled and there can be personal liability on the Executor who opens the estate. Accordingly, it is strongly recommended that you seek legal counsel if you’re thinking of opening an estate for a loved one who has passed away.
If you have questions about these issues, or about how to use the short certificate once you’ve obtained it, call Cornerstone Law Firm for a consultation so that we can help you take your next steps.
3 Ways to Protect your Company’s Intellectual Property
/in Business Law, Contracts /by Cornerstone LawWhen you have employees sign agreements with your company, it’s important that you keep in mind how those agreements contribute to protect intellectual property. As a general rule, employers who employ someone to work at their company do not have any right to restrain those employees from taking with them their knowledge or skills gained at the company. If you have sensitive intellectual property that you don’t want exposed to a competitor, what should you put into your employee agreements when someone starts? Can you add something to their employee agreement after they’ve started if you realize you didn’t have it in writing already?
Here are 3 things that we recommend putting in your employee agreements:
1. Confidential information clause.
Many employee agreements include a confidential information clause. This section of the agreement restrains the employee from using confidential information in future employment. It’s important to note that Pennsylvania law restricts the scope of these clauses to information that is truly confidential. Although not in Pennsylvania, a story that illustrates this point comes from Chicago courts, where Jimmy John’s had all its employees sign confidential agreements in an attempt to keep them from competing at other sandwich shops in the future as employees. This was held to be a violation of the law, in that there was nothing confidential about making sandwiches.
Similarly, you can’t just say that your information is confidential: you have to have something that is worth protecting. This “thing” that you want to protect could be a trade secret, a confidential process or even something like a customer or employee list. Confidentiality clauses are great, but they only protect that which you are already protecting. This is why it is best to supplement your confidentiality clauses with protection on your server and computers, as well as an employee handbook that reminds employees of the types of information that they are not to share with outsiders. In some cases, courts will even allow you to enforce this once they leave and go to another company.
2. Work for hire clauses.
Employees who work for you and come up with an invention, even on company time, may still be able to claim that they have ownership of rights of the invention. That’s why it is important that employers have a clause in their contract that says that anything that is invented in the scope of their employment belongs to the employer. Once again, as above, this is not a catch-all clause. The property that is being referenced must be something that was actually invented, and not merely some new way of doing something that is already in existence. An employee who is increasing their skills or doing better at the job that they are assigned has not invented something just because they have a better a way of doing it within the company. However, if they’ve invented something brand new, something that no one else has ever thought of, something that’s new both inside and outside of the industry, a work for hire clause can ensure that the invention belongs to the company and can only be used by the company in the future.
Courts have traditionally upheld these restrictions, especially where patents are involved. Having a work for hire clause in the agreement allows the company to be owner of the patent, rather than the individual or team that worked on it. This is also why it is important to have standard employee agreements across your whole company. If several people collaborated on the idea, it is important that all of them have signed some form of this agreement.
3. Trade secrets.
What happens when you discover something that can’t really be patented but which is a secret in your industry? Maybe it’s a special technique that no one else has figured out, a special recipe that’s impossible to reverse engineer or duplicate, or a complicated piece of machinery that is only used at your company? Your company may be able to restrain others from using it by claiming the trade secret doctrine. Trade secrets are a complicated area of law and they are claimed far more commonly than they are able to be proven. Nonetheless, if your company really does own something that is a secret, protecting it becomes vitally important. That is why you want to have an agreement with your employees that identifies the trade secrets and makes it clear to the employee that the employee can’t use it outside of the scope of the company’s employment, including once they leave. Such agreements are enforceable but are strictly construed against the employer.
Can I require existing employees to sign new agreements?
This brings us to an important question. What if you’ve been working with certain employees and you become concerned that they may use your intellectual property or leave your company? If that’s the case, it is still possible to have those employees sign agreements, but courts have generally held that you have to offer the employees something new—something more than ongoing or continued employment—in order for them to be legally enforceable. Some employers will offer a bonus for those that sign the agreements and others have offered promotions and a raise. It is important that any such contract be supported by some additional consideration that the employee was not entitled to already.
Conclusion
Contact the business lawyers at Cornerstone Law Firm to support your business. If you own a business with intellectual property, it’s important that you have lawyers who understand the world of IP, including copyrights, trademarks, patents, trade secrets and more. At Cornerstone Law Firm our business attorneys have litigated these cases to the highest level and can explain the ins and outs of your situation to you. Contact us today for a consultation on your business needs and let us help you figure out how to protect yourself now and in the future.
Victory for Attorney Eric Winter
/in Berks County, Updates /by Cornerstone LawYesterday in Lebanon County Attorney Eric Winter won a jury trial on an assault case on behalf of one of our clients. The case had lingered for nearly a year before the jury trial occurred and involved claims of domestic violence between a girlfriend and boyfriend. This was a classic case of he said/she said. This case carried serious consequences for our client if found guilty: charges of this nature could be either misdemeanor or felony charges and could have changed our client’s life permanently.
After excellent cross examination and demonstration from text messages that the fight was started by the individual claiming to be the victim, Attorney Winter was able to demonstrate to the jury that there was not enough evidence for a conviction beyond a reasonable doubt. This was a complete win for our client and a testament to Attorney Eric Winter’s twenty-three years of experience as a Berks County criminal defense attorney. It was also Attorney Winter’s fastest jury verdict to date. His client was acquitted in just 18 minutes.
As with all such cases the details of the case are vital to the outcome. From carefully interpreting and explaining the physical evidence to the jury to clarifying the implications of the digital evidence in the form of text messages, Eric Winter, of Cornerstone Law Firm, was able to reveal the truth of this matter to the ladies and gentleman of the jury. In addition to the details in this case, there were significant strategic decisions which shaped the scope of the evidence which the jury was allowed to see.
If you find yourself wrongly charged with a crime, you will want an attorney who has the experience, understands the details, and possesses the wisdom to make the crucial strategic decisions which will help you find justice. Please Call Cornerstone Law Firm if you’ve been charged with a crime, so that you can discuss your case and learn how best to defend yourself at a trial.
Cheated Out of Commissions
/in Business Law /by Cornerstone LawIf you’re in sales, you know the unique challenge of living and dying by your sales number each month or quarter. Working hard to continue to impress your employer and avoid the “What have you done for me lately?” mentality is part of the rough-and-tumble world of sales. But what happens when your employer tries to cheat you out of the commissions you’re owed? In today’s blog post, we tackle some of your options if your employer is reneging on an agreement to pay you a commission.
There are primarily three ways that our attorneys see employees cheated out of commissions. First is when an employer changes the terms of commissions partway through a job. The second is a lot more like a scam, where an employer goes around promising new salespeople jobs that pay commissions and then fires them after a few months of collecting sales before they ever pay. The third is when an employer tries to use complicated formulas to hide how much money is being made from sales.
First: Do you have to accept a change of commission?
In a situation where an employer changes the terms of the commissions in the middle of a project, Pennsylvania law has generally recognized that they have to pay what has been previously agreed to. As a simple example, if your employer agrees that for every service job you sell, you get 10% of the price, they can’t change in the middle of a sale that is almost completed and say now you only get 5%. They can, however change the rate for future sales. The gray area starts where an employer changes terms in the middle of a time period which might affect open sales. In this example, suppose an employer raises a base salary, but cuts commissions to 5% starting immediately on all sales, including those not concluded. In this instance, the change may be lawful, but the employee may also have the right to insist on the old contract until those sales are finalized.
Employees have several options in this situation. The first is to politely push back, whether by internal email or in a conversation with your boss. We always prefer to get things in writing, but even an oral conversation would suffice if there is a way to document it after the fact. An employer generally has the right to change future commissions, but an employee is within his or her rights to decline the change on open jobs.
The employer who refuses to pay earned commissions can be sued personally.
In situations where an employer refuses to pay commissions, you have powerful remedies under the law. You can sue the employer as well as any owners or officers of the employer. You are entitled to reimbursement of attorneys’ fees and penalties on top of the wages owed.
In addition, you may be part of a class action that has rights with other employees who were similarly cheated. If your “draw” doesn’t rise to the level of minimum wage with the time you’ve put in and without your commissions, you may also have a claim under the Minimum Wage Act in Pennsylvania or the Fair Labor Standards Act (FLSA) under federal law. Both of these allow powerful remedies.
If the math is complicated, make sure you’re not getting cheated.
Employers are allowed to offer complicated schemes to determine payouts and commissions, and sometimes these are in everyone’s best interest. But if the formula is complicated, make sure you are double-checking the numbers. If your pay is dependent on how much the company is making, you’re entitled to check the books regularly to see that your pay is being correctly calculated. In counseling employers, we often advise them that simple is better, because even unintentional mistakes can lead to lawsuits, attorneys’ fees, investigations and more.
Conclusion
If you have questions about a commission or unpaid wages, we welcome you to call us at Cornerstone Law Firm and set up a consultation with one of our attorneys. Our attorneys help employees who have been cheated out of wages to be made whole and to ensure that employers don’t get away with giving them less than what they deserve. We also counsel employers and help them find fair ways to compensate employees that make everyone more successful. Call for your consultation today.
Who owns an LLC?
/in Business Law /by Cornerstone LawLimited liability companies are one of the most important tools available to business owners to keep their assets safe. Forming an LLC under Pennsylvania law provides protection against creditors and provides clarity of ownership in case an employee or someone else tries to claim that they have some right to ownership of your company.
In Pennsylvania you do not have to list who the owner of an LLC is on the Department of State website. In most cases, the Department of State will not have any information at all, either public or private, about who the owner of the LLC is. Unfortunately, this sometimes brings about disputes between different people who claim to be owners of an LLC. So, who owns an LLC and how can you prove it?
The first and best evidence of ownership of an LLC is what is written in the operating agreement. An operating agreement is signed between the members of an LLC and lays out their ownership interest. In most cases, the ownership interest of an LLC cannot be changed without a unanimous vote of all owners. In rare cases, it can be done with a majority vote and a buyout where the operating agreement has specially provided for that option.
But what happens if you don’t have an operating agreement? What do you do if there is no written documentation at all of who the owners are? This can lead to some very messy situations, including where oral agreements between the alleged owners come into play. Courts will allow testimony to the ownership of an LLC that is oral, even if there is no signed or written document to back it up. Other evidence, such as history of transactions, proof of money invested, evidence regarding the time or effort invested (known as “sweat equity”) and evidence of statements made to third parties are all relevant in determining ownership.
Of course, the best way to prevent a dispute over ownership is to make sure that your operating agreement clearly outlines who the owners are and that you have clear rules laid out in advance on how someone can be purchased out of their ownership interest if there is a conflict. This allows a company to continue as a “going concern” and allows the owners to avoid conflict in advance. If your company doesn’t have this clear documentation, now is as good a time as any to reach out to a business law attorney and get this matter straightened out once and for all.
At Cornerstone Law Firm our attorneys help clients everyday to work out ownership disputes and to try to avoid them in advance, if possible. Our attorneys have litigated multi-million dollar disputes over LLC ownership, and have helped negotiate favorable resolutions out of court as well. If you own an LLC or if you’re part of a group of owners of an LLC, reach out to us to talk about your options in ensuring that your ownership interests are safe for the long term.
Mediation in Personal Injury Cases
/in Car Accident, Insurance, Personal Injury /by Cornerstone LawWhen you’ve been injured by someone else’s mistake, the long legal process that follows with insurance and lawyers can feel frustrating. Getting your injuries treated, dealing with medical bills and health insurance, and talking with an insurance representative about the value of your injury can add mental anguish to the physical pain you are experiencing.
One mechanism that our attorneys employ for getting the best settlement for our clients in a quicker manner is to pursue a mediation instead of going to court. This is a process where instead of going and having a trial in front of a judge or a jury, the attorneys on both sides of the case can meet with a mediator and try to resolve the case amicably.
A mediation involves hiring a third party, usually a retired judge or an attorney, to help both parties try to find a resolution they can agree on. These settlements usually involve a lot of compromise. As mediators often say, “A good settlement in a mediation is one that no one is totally happy with.” Usually, the insurance company pays a little more than it might otherwise have agreed to short of trial because they know how much a trial will cost them and that there is a risk that a jury gives a big award. The injured person may take a little less than they could have gotten at trial to avoid the additional months or years it would take to get money from the case.
Compromise might sound bad at first, but when you consider that mediations are less expensive and quicker than trials, injured clients often find that it’s best to take even a little bit less than they feel they could have gotten after a trial if they can get the money now and move on with their life. Mediations don’t always require compromise—sometimes it’s the perfect tool to help the insurance company see how serious the plaintiff’s injuries are and to get the case resolved.
Mediation is not the same as arbitration, which is a different mechanism we’ve talked about in other articles. Arbitration is less about compromise and is more like having a trial earlier in the process without a jury in the room. If you or someone you love has been injured in an accident or otherwise, talk to the personal injury attorneys at Cornerstone Law Firm to discuss how we can help you to reach a settlement in your case.