To our clients, families, and friends – Our hearts go out to those affected by Hurricane Ida, including the attorneys and staff in our law firm. We will stand with you in the coming weeks and months. The communities where we live and work are resilient and resourceful, and the people within our law firm
Linda Clark
SBA Updates its FAQ Regarding Good Faith Certification
The Small Business Administration (“SBA”) issued an update to its “Frequently Asked Questions for Lenders and Borrowers for the Paycheck Protection Program,” adding question #46 and the response, which is recited below. For PPP loans of less than $2 million, the borrower will be “deemed to have made the required certification concerning the necessity of…
Eligible Self-Employed Individuals under the CARES Act
In addition to certain entities, independent contractors, sole proprietors and “eligible self-employed individuals” may be eligible to apply for a Paycheck Protection Program loan under the CARES Act.
What is an eligible self-employed individual? It is important to note that the statute did not refer to “self-employed individuals” which would have been very easy for…
Protecting Attorney-Client Privileged Communications in M&A Agreements
Recent cases have highlighted the importance of seller contractually protecting and retaining ownership over communications that, pre-closing, are subject to the attorney-client privilege. The absence of such language in a merger or asset/stock purchase agreement can lead a court to conclude that such communications are owned by the buyer/surviving corporation.
Such was the result in…
Pending Arbitration Agreements Rule: What Does This Mean For Your Company?
On Thursday, May 5, 2016, the Consumer Financial Protection Bureau (CFPB) issued a notice of proposed rules that would fundamentally change the way certain businesses contract with consumers. Among other actions, the proposed rule would eliminate class action waivers from pre-dispute arbitration clauses and agreements for certain businesses. The announcement of the proposed rule was…
American Arbitration Association Requires Registration of Consumer Arbitration Clauses
Beginning September 1, 2014, the American Arbitration Association (“AAA”) will require that any business using or intending to use the AAA rules in a consumer contract register the arbitration clause with the AAA. Upon submitting the clause, the AAA will review it for “material compliance” with the AAA’s due process standards contained in its Consumer…
Louisiana Supreme Court Holds Terms and Conditions Binding Due to Course of Conduct and Forum Selection Clauses are not per se Violative of Public Policy
The use of standard form terms and conditions, without a signed contract, often leads to disputes over whether the parties actually agreed to be bound by such terms and conditions, as was the case in Shelter Mutual Insurance Co. v. Rimkus Consulting Group, Inc. of Louisiana, et al., 2013-1977 (La. 7/1/14). In that case,…
Personal Liability of Members of an LLC – Louisiana Supreme Court Provides Guidance
The Supreme Court of Louisiana, in Ogea v. Merritt, 2013 WL 6439355 (La. 12/10/13), provided guidance regarding the personal liability of members of an LLC, reversing a lower court decision and finding a member of an LLC not personally liable for damages resulting from that member’s performance of a contract in the name of the LLC.
Travis Merritt, the sole member of Merritt Construction, LLC, signed a contract with Mary Ogea to build a home on an undeveloped parcel of land owned by Ms. Ogea. After problems with the foundation became apparent, Ms. Ogea filed suit against the LLC and against Mr. Merritt individually. Following trial, the district court rendered judgment against both Mr. Merritt, personally, and the LLC “in solido” for various items of damages. The district court found that Mr. Merritt personally performed some of the foundation work and failed to properly supervise the subcontractor who actually poured the concrete, providing grounds for Mr. Merritt’s personal liability. The court of appeal affirmed, but the Supreme Court then granted a writ to address the extent of the limitation of liability afforded to a member of an LLC.Continue Reading Personal Liability of Members of an LLC – Louisiana Supreme Court Provides Guidance
Louisiana Supreme Court Interprets Unfair Trade Practices Act
The Louisiana Supreme Court in Cheramie Services, Inc. v. Shell Deepwater Production, 2010 W.L. 1631977 (La. 2010) construed the Louisiana Unfair Trade Practices Act (“LUTPA”) to mean that persons other than business consumers and competitors may sue for alleged violations of the Act. Regardless of the context of the legislation, according to the Supreme Court, the term “any person” means exactly that – any person.
In the action, Cheramie Services, Inc. (“Cheramie”) entered into a contract with Shell to provide personnel to its platforms. Shell placed two Cheramie employees, Kenneth Ward and Kevin Kays, on a platform. Shell paid Cheramie who paid the employees who were placed on these specific platforms. Ward and Kays alternated working fourteen day shifts so one of them was always on the platform. About six months thereafter, Shell stopped making payments to Cheramie and began paying Filco International, Inc. (“Filco”) for the services provided by Kays and Ward. Additionally, Cheramie sent an employee to meet with Shell about filling a position on another platform. The employee met with Shell and was told that if she wanted the position, she would have to work for Filco, because it had submitted the successful bid.Continue Reading Louisiana Supreme Court Interprets Unfair Trade Practices Act
Using and Modifying Industry Form Construction Contracts
A number of construction industry trade groups or associations, such as the American Institute of Architects (AIA) and the Design-Build Institute of America (DBIA), among others, have developed a variety of “standard form” construction contracts that have been used in the industry for many years, and are periodically updated. When engaging an architect or contractor, many owners are requested to sign these standard form agreements. Continue Reading Using and Modifying Industry Form Construction Contracts