Welcome to the business law blog that shares common sense, practical insights and a little humor, all to help clarify those issues that often require a little legal help.

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Cleve Clinton, attorney at law
cclinton@lrmlaw.com

Jamie Ribman, attorney at law
jribman@lrmlaw.com


Does the Name Pavlov Ring a Bell?

istock_000012506281xsmall.jpgWhile on her way to get a café macchiato, Paris Hyatt dropped her beloved pocket Chihuahua, Pavlov, off at the trendy Waco grooming studio, Doggie Styles.  Two hours later, when Hyatt returned, she was confronted with the horrible news that Pavlov had run away after being scared by a loud hair dryer.  Fortunately, Pavlov was quickly found at a local animal shelter.  Unfortunately, when Hyatt arrived at the animal shelter she did not have enough cash in her Chanel purse to pay the $50 “pick up” charge and had to leave Pavlov until the next day when she could return with the money.  A “hold for owner” tag was then put on Pavlov’s cage.  That night, despite the tag, Pavlov was mistakenly euthanized by a careless shelter employee.  Hyatt is devastated and sues the shelter.  Can she recover for the lost companionship or sentimental value of Pavlov?

Yes, based upon a recent Ft. Worth Court of Appeals decision, Hyatt could recover for the sentimental value of a dog.  In Medlen v. Strickland, the Court held that where personal property has little or no market value and its main value is in sentiment, damages may be awarded based on this intrinsic or sentimental value.  The Court found that “because of the special position pets holding in their family, we see no reason why existing law should not be interpreted to allow recovery in the loss of a pet at least to the same extent as other personal property.”  Because “dogs are unconditionally devoted to their owners … today, we interpret timeworn supreme court law in light of subsequent supreme court law to acknowledge that the special value of ‘man’s best friend’ should be protected.”

Tilting the Scales in Your Favor.       

While the novel ruling was universally praised by pet owners throughout the country, businesses who care for animals take note. There is concern that the case may have a negative impact on the broader private sector including kennels, dog-sitters and veterinarians who may now be forced to practice “defensive” medicine.

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It’s Snow Joke: Are Companies Required to Give Snow days?

istock_000018137665xsmall.jpgRemembering the wintery weather of 2011 when the weather outside was frightful, Jack Frost and Dee Ice worry whether ice and snow will force them to close their office this year. Last year, many employees were forced to stay home with their young children whose schools were closed despite the fact that their employers kept the offices open. Frost and Ice have to balance the financial burden of lost work product and paying staff that is not at work, against the ill will and bad morale if staff is not paid. Worse still, Jack and Dee fear that last year some of their employees gamed the system because there was no firm policy in place. What are the obligations of the employees? Where should an employer draw the line when it comes to the safety of an employee vs the employees personal preference to stay home in inclement weather.  What should Frost and Ice do?

Rough Sledding. Under federal law, an employer can make whatever rules it wants for its non-exempt employees. The most common practice is to pay the hourly employee only for the hours actually worked. For exempt employees there are two rules. First, if the exempt employee works even part of a day, that employee must be paid for a full day. Second, if the employer chooses to close the office, the employee must be paid. However, if the office is not closed and the employee does not come to work - even if the roads are bad - the employer does not have to pay the exempt employee who is treated as being absent for personal reasons. Even with these rules, don’t forget to review your agreement with your employees, whether it be an employee handbook (likely), an employee contract (less likely), or a union contract (also less likely in Texas).

Tilting the Scales in Your Favor. Jack Frost and Dee Ice should address the effects of severe weather on their businesses before the bad weather strikes to effectively manage their workforce. Now is the time to introduce or modify an adverse weather policy. Frost and Ice’s inclement weather policy should clearly spell out the rules and employees should be reminded of the company’s inclement weather policy, including who is responsible for announcing any closures, where the employees can find that information, and who should be notified and when, if an employee has problems getting to work or not coming to work, and by when notice should be given. If non-attending employees will not be paid for bad weather days when they cannot come to work, they should be told well in advance. To avoid employees feeling pressured to risk their safety to get into the office, Frost and Ice may want to consider adding another day or two to the total paid time off (PTO) days to allow for occasional bad weather days. Then the determination of personal safety and care of children becomes the employee’s sole responsibility. Additional PTO days, however, do not address Jack and Dee’s fears of lost productivity during this time of hoped for economic healing.

By the way, if Jack Frost and Dee Ice decide to stay open during bad weather, the risks to their businesses may not end with their payrolls and their production. An employee may have recourse to sue an employer for injuries arising from the inclement weather if the employee can prove the employer was negligent in remaining open. Also, for employees who drive company owned vehicles, a whole new set of issues is introduced. Either way, check your business and automobile insurance policies and consult your insurance agent to make sure that your business is covered for inclement weather vehicle accidents and accidents on company property caused by bad weather conditions. Finally, don’t forget to tell your customers and your vendors if you intend to close for bad weather.

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Business D-i-v-o-r-c-e

Anita Deal and Ivana Bie formed their commercial real estate  business Dirt Cheap, LLC several years ago. Through 2007 it was wildly successful. Then the bottom fell out. Their friendship, tenacity and cash reserves are waning. Ivana believes that the market has turned and that now is the greatest real estate buying opportunity of all time. Anita isn't so sure. Worse yet, their bank requires them both to sign new guaranties and to put up more collateral. Anita wants out. What should they do? Anita and Ivana should first review the Dirt Cheap, LLC formation ... View Comments (0)

Looking a Gift Card in the Mouth

Dana Plato is a 6th grade student at a public school in south Texas.  Plato's favorite teacher is Mr. Socrates, who teaches world geography.  Unfortunately, world geography is Plato's worst subject.  In fact, Plato is dangerously close to failing the course.  Whether or not she passes is dependent upon how she scores on the final exam, which is scheduled the week before Winter Break.  The day of the final exam arrives and as Plato turns in her test, she hands Mr. Socrates a Christmas present -- a $100 gift card to his favorite restaurant, ... View Comments (0)

Cold Turkey - What to do when a Client Files for Bankruptcy

Much of the corn that Ethan Awl raises is sold to Beau Plymouth for Beau's company Plymouth's Pride to feed its turkeys. Ethan's payment terms are net 30 days. As the economy worsened and alternative fuels gobbled up corn supplies dramatically increasing feed costs, Plymouth's formerly prompt payments from Beau are well beyond 30 days and are nearing 60 days before payment is received. Before Ethan Awl cries foul, Plymouth advises that he filed for bankruptcy protection. What should Ethan do? First, stop all contact with Plymouth's business immediately. Once a person or business files for bankruptcy ... View Comments (0)

SLAPP Happy - Can a Business Sue a Customer who Gave an Bad Online Review

Xavier Breath goes to his local barbershop, the Best Little Hairhouse in Texas, looking for a cut and a new hairstyle to replace his tired comb over.  His young stylist recommends a "Justin Beiber" cut, which she says is very popular.  Xavier does not know who Justin Beiber is, but agrees to try it out.  After an hour in the chair, Xavier looks in the mirror and is very, very unhappy with his $45 haircut.  He complains to the owner and demands a refund, but the owner tells Xavier that her stylist did the best she ... View Comments (0)

Ghouls Just Wanna Have Fun

It's Halloween. Linda Blair, Rosemary, Buffy and fellow high school senior girlfriends are looking for something to do.  Trick-or-treating is boring. The thought of staying home with parents is unbearable.  With no particular plan in mind, the eighteen year olds, like all bored teenagers, head to the mall.  As the girls leave Abercrombie and Fitch after a couple of hours and head to Cinnabon in the food court, the girls notice a haunted house (quaintly named "Lucifer's Haunt of Scream's and Dismemberment"). It's in the space that Big Box, the anchor tenant vacated.  Intrigued, ... View Comments (0)

If Google Told You To Jump Off A Bridge, Would You?

Gunter Ongway lives in a suburb of Dallas and does not have a car.  In preparation for his fantasy football draft (which is to take place at a local restaurant), Gunter uses Google Maps to find walking directions to the restaurant.  Directions in hand, Gunter sets out on his journey across town following Google's directions carefully.  However those directions lead Gunter to walk along a narrow six lane highway (without sidewalks) where he is struck by the side mirror of a passing vehicle.  Gunter is injured badly and sues Google alleging that his injuries were caused by Google negligently ... View Comments (0)

Partners in Cold Sweat

Tim and Harry were friends. They both love ice cream and inventing their own flavors. The latest, "Cold Sweat" made of an ice cream base with hot sauces, picayune, habanero and Thai chili peppers was so successful they decided to partner in a new company - 50/50... and on a "handshake." Later, Harry bought a pepper company that sells to their partnership. Is this a good idea? 50/50 Partnerships. Maybe, but problems are on the horizon. Forming a new startup with a friend who shares the same vision would seem only fair to split 50/50. However, keeping ... View Comments (0)

No Fracking Way!

Seldon Wright, an accountant, searched for years to find the perfect piece of property to open his tax preparation business, Many Happy Returns.  At long last, Wright finally located and purchased an ideal parcel from Molly Kuehl, a physicist at the local university.  Several months after Wright finished construction of his office and opened for business, Kuehl stopped by and informed Wright that natural gas had been found in the area and, as she still owned the mineral rights, that she intended ... View Comments (0)