The new chief of the Army Corps of Engineers, Lt. General Robert Van Antwerp, told a New Orleans audience on Thursday May 31, 2007 that three important reports would be released by the Corps this summer. The first report due in June is a comprehensive study of the vulnerability of low lying areas of coastal Louisiana to future hurricanes. This report will show residents of the low lying area how their homes will do during about 150 hypothetical storms.

Continue Reading Three Reports Due This Summer From Army Corps of Engineers

On May 22, 2007 the Department of Revenue issued a long-awaited Revenue Ruling detailing its position regarding the case of Word of Life Christian Center v. West, 936 So.2d 1226, 2004-1484 (La. Sup. Ct. 4/17/06). In Word of Life, the Supreme Court determined that two airplanes which were purchased out of state for use in interstate commerce were nevertheless subject to Louisiana use tax as they had become part of the mass of property of the state. The impact of this decision, however, is not limited to airplanes. Many companies purchase various items outside the territorial limits of Louisiana and thereafter import them into the state for use interstate commerce operations.

Continue Reading Getting the “Word” Out – The Department of Revenue Issues Revenue Ruling 07-002 in response to Word of Life Christian Center v. West, 936 So.2d 1226, 2004-1484 (La. Sup. Ct. 4/17/06)

In a recent decision, the Federal Fifth Circuit Court of Appeals rejected the notion that temporal proximity standing alone can be sufficient proof of “but for” causation in a Title VII retaliatory discharge claim. In Strong v. University Health Care System, L.L.C., 2007 WL 891148 (5th Cir. (La.)), plaintiff Laurie Strong sued UHS alleging gender discrimination and retaliatory discharge.

Strong worked as a nurse coordinator for UHS, a large Louisiana hospital. She complained to one of her supervisors on December 15, 2003 of alleged gender discrimination by a hospital surgeon, based largely on angry comments by the surgeon on three separate occasions that she was “stupid” and “lazy.” Both before and after the date of this complaint, however, numerous complaints had been made about Strong’s behavior in the workplace by patients, co-workers, supervisors, and physicians. Strong was eventually terminated no March 31, 2004 for poor performance, improper work conduct, arguing with superiors, and obstructing various departmental policies. On November 24, 2004, Strong filed her complaint alleging Title VII and Louisiana law violations.

Continue Reading “Temporal Proximity” Alone Insufficient To Prove Retaliatory Discharge Claim

In International Paper, Inc. vs. Cynthia Bridges, 42, 023 (La. App. 2nd Cir. 4/4/07), 2007 WL 983965 (not designated for publication), the Louisiana Court of Appeal, Second Circuit, reinterpreted the “further processing” provision of the Louisiana sales tax law. Under the further processing provision, tangible personal property purchased for further processing into tangible personal property for sale at retail is not subject to Louisiana sales/use tax. La. R.S. 47:301(10)(c)(i)(aa). Historically, Louisiana law had applied a three part test to the identification of a nontaxable further processing material: (1) The further processing material must be a benefit to the end product; (2) The further processing material must be a recognizable and identifiable component of the end product, and (3) A purpose for purchasing the further processing material must have been for processing into the end product.

Continue Reading Sales Tax Exclusion For Further Processing Materials Under Attack

The Louisiana Medicaid program recently issued a notice for all providers stating that Louisiana Medicaid is in the process of developing a contingency plan for national provider identifier (“NPI”) implementation. The notice stated that the Department of Health and Hospitals (“DHH”) and Unisys will not be implementing the NPI only system changes on May 23, 2007. Providers submitting Louisiana Medicaid claims shall continue using their 7-digit provider numbers on all paper and electronic claims until DHH gives a future notice to use NPIs. Louisiana Medicaid providers must still register their individual NPIs with Louisiana Medicaid and continue their efforts towards the use of NPIs on all claims.

Continue Reading Louisiana Medicaid Delays Implementation of National Provider Identifier Only System

On March 23, 2007, the Louisiana First Circuit addressed the validity of an arbitration agreement in Lafleur v. Law Offices of Anthony G. Buzbee, 2007 WL 858859 (La. App. 1st Cir. 2007). The opinion has not been released in permanent law reports and is still subject to revision or withdrawal.

The case arises out of a contract between Mr. Lafleur, a Louisiana resident, and his Texas attorneys, Jeffrey M. Stern and the firm of Stern, Miller, and Higdon. Mr. Lafleur retained the Stern defendants to pursue his maritime claim for personal injuries he sustained while traveling on a vessel in navigable waters off the coast of Louisiana. He executed an agreement with the Stern defendants which stated, “Any and all disputes, controversies, claims or demands arising out of or relating to this Agreement or any provisions hereof, the providing of services by the Stern defendants to Mr. Lafleur, or in any way relating to the relationship between the Stern defendants and Mr. Lafleur, whether in contract, tort or otherwise, at law or in equity, for damages or any other relief, made by or on behalf of Mr. Lafleur shall be resolved by binding arbitration pursuant to the Federal Arbitration Act in accordance with the Commercial Arbitration Rules then in effect with the American Arbitration Association.” It also provided “the expense of any arbitration shall be a Case Advance pursuing the claims” and that “Mr. Lafleur understands and acknowledges that Mr. Lafleur is waiving all rights to a trial by jury or a judge.”

Continue Reading FIRST CIRCUIT ADDRESSES ARBITRATION AGREEMENT

Most commercial leases for multi-tenant properties contain clauses which regulate the tenants’ use of the leased premises. Many tenants will require a landlord to grant the tenant the exclusive right to operate a certain business or sell a certain product to avoid competing with other tenants. These provisions are appropriately referred to as exclusive use clauses. For the landlord to satisfy its obligations under an exclusive use clause of one lease, the landlord is required to incorporate provisions in its other leases prohibiting the other tenants from using the leased premises for the restricted purpose. These clauses are commonly referred to as prohibited use clauses.

Continue Reading COMMERCIAL LEASES: EXCLUSIVE AND PROHIBITED USE CLAUSES

On March 1, 2007, the United States House of Representatives passed the “Employee Free Choice Act of 2007.” The bill passed by a 56 vote margin. The bill was sponsored by Rep. George Miller (D) of California. Louisiana Reps. William Jefferson (D) and Charlie Melancon (D) were two of the bill’s 233 co-sponsors. Only seven House Republicans joined as co-sponsors. Thirteen Republicans joined House Democrats in voting for the bill, and two Democrats voted against it. Sen. Ted Kennedy (D) of Massachusetts is expected to introduce similar legislation in the Senate. Sen. Mitch McConnell (R) of Kentucky pledged to fight the bill. Pres. George Bush is expected to veto the bill should it pass the Senate.

So what is the Employee Free Choice Act of 2007? What’s the big deal?

The Employee Free Choice Act of 2007 amends the National Labor Relations Act (which was last amended nearly 70 years ago) and provides new, more relaxed, rules for the selection of an employees’ collective bargaining representative (i.e., unions).

Continue Reading IS A CHANGE IN THE NATIONAL LABOR RELATIONS ACT ON THE HORIZON?

It is not uncommon for 501(c)(3) non-profit organizations, large and small, to have money making opportunities during their existence. For instance, a larger non-profit organization may have a talented IT department that creates software to benefit the organization, but which can later be marketed to other organizations. In addition, a non-profit organization may receive a bequest of income producing property. Since 501(c)(3) non-profit organizations must be created and operated exclusively for charitable purposes, and not to generate profits, should these organizations ignore these opportunities and miss out on the income that could benefit their just causes, or can they take action? The short answer is that action can be taken but with caution.

Continue Reading NON-PROFIT ORGANIZATIONS SHOULD PROCEED WITH CAUTION WHEN ENGAGING IN MONEY MAKING OPERATIONS

The first annual “Kean Miller Connection,” a 3-day law school prep program for college students, will be held May 31 – June 2, 2007 at Kean Miller’s office in Baton Rouge.

The goal of the program is to “connect” participants with information helpful to their decision to attend law school and become a lawyer. Program details and eligibility requirements (including that each participant must be a member of a group traditionally underrepresented in law school and the law practice) can be found at http://www.keanmiller.com/recruiting.cfm

Kean Miller Connection is one of many Kean Miller programs that encourage diverse perspectives.   From our inception, Kean Miller has recognized the value of diverse ethnic, cultural and racial backgrounds to the balance and success of the firm. This program is in furtherance of our commitment to diversity.