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


Oil And Shrimp Don’t Mix, Part Deaux

Last month Bubba Gump Shrimp Company owners Forrest Gump and Lieutenant Dan realized they would not be able to deliver on their monthly promise of 10,000 pounds of shrimp to the Wok Ann Chu-gumm Seafood Restaurants. Because of this Bubba Gump Shrimp Company joined dozens of other commercial fishermen in a class action lawsuit alleging that a fire on Oyle E. Dryller’s rig caused millions of barrels of oil to be dumped into commercial fishing waters. When the government docked the commercial shrimp boats, Bubba Gump Shrimp Company saw its shrimping season and cash flow end. Do Bubba Gump Shrimp Company and its commercial shrimping buddies have a case, when “common sense says you shouldn’t get away with taking away someone’s livelihood and walk away without paying them anything for compensation?”

Like shooting fish in a barrel? Maybe. For Bubba Gump Shrimp and fellow commercial fishermen, there is a reasonable likelihood that they can prove Oyle E. Dryller took away their livelihood and they should be paid.

But what about Chef Red Fishy who sued complaining he can’t access his customary supplies of Gulf fresh seafood for his restaurant, or Bishop Carp who sued for “loss of enjoyment of the recreational saltwater fishing privileges bestowed on Louisiana residents” because he spends thousands of dollars every year to fish offshore so that his family has fish to eat throughout the year? Both of those scenarios are less likely to be successful in a lawsuit – Chef Red Fishy can still serve his customers fish caught outside the Gulf; Bishop Carp E. Diem’s vacation time does put fish on the table, but his vacation expenses may cost more than the fish he catches.

Then there is the even more damages speculative lawsuit filed by Flan Ounder and her partner Halli Bet who allege damages to their commercially zoned land in Florida because “falling real estate values are just one more consequence of this environmental disaster.” Even though it is not Gulf-front, surely it is “impacted by the perception that the entire Gulf Coast has been ruined.” Not being on the water raises questions about oil related damages, and the already significant impact of the recession on investment property makes a reduced property value argument even more speculative.

Tilting the Scales in Your Favor.

Sometimes there are other, and perhaps better, solutions to consider before first filing a lawsuit. While these scenarios present many opportunities to discuss facts, duties of negligent parties and damages to be argued, those with the best claims (like Bubba Gump Shrimp Company and the other trades who rely upon commercial fishing, like welderswho fix the shrimp boats) are likely to fare better by filing a claim first. As of last Friday, July 16th it is reported that 29,444 payments have been made by BP to Louisiana residents and businesses, including Louisiana fishermen (even with limited documentation), totaling more than $96 million.

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With Great Seats Come Great Responsibility

It’s the bottom of the sixth and the home team, the Isotopes, is at bat. Adam Baum, the Isotopes’ all-star player, crunches a 98-mph fast ball down the right field line that heads toward the third deck. To everyone’s chagrin, the ball slices foul at the last moment and makes its way into the excited crowd. While the home crowd may be disappointed, this is the moment that Royal Paine has been waiting a lifetime for. You see, Paine has never caught a foul ball and has specifically purchased season tickets in the first row of the third deck waiting for just this opportunity to present itself. Paine will not be denied — as the speeding ball approaches, he holds out his Cabela’s fishing net to make the snag. Unfortunately, for Paine, things go terribly wrong. Perhaps it was his 6’6” frame against a 26” rail, perhaps it was the six pack he had to drink, or perhaps it was his general lack of coordination, but instead of catching the ball, Paine awkwardly stretches over the rail, completely missing the ball and topples thirty feet into the second deck. Paine suffers serious injuries. After 3 months in the hospital, Paine brings a lawsuit against the Isotopes and its owner, Montgomery Burns. Does Paine have a claim?

Probably not. Although the chances of a lawsuit being brought are high, the chances of a recovery for Paine are relatively low. Since the first baseball stadium was built, architects have been trying to balance safety against fans’ unobstructed site lines. Major League Baseball requires that the rails where Paine was seated be a minimum of 26” tall. The Isotopes complied with this requirement and also posted signs that clearly state, “Do not sit or lean on rail.” In a comparative fault state such as Texas, it is likely that a jury would find that Paine was more negligent than the defendant as he was likely intoxicated and knowingly assumed the risk when he leaned over the third deck rail to catch a $5 souvenir. If a jury were to find Paine 51% responsible for the fall, he would recover nothing.

Falls from the upper decks are rare, but occur with somewhat surprisingly frequency. Three fans have died from falls since 2000, while another 9 have survived similar accidents. In 1994, on opening day of the Texas Rangers’ new ballpark, a fan fell 35 feet from an upper deck while leaning against a rail to have a picture taken. The fan sued the Rangers and settled out of a court for an undisclosed sum.

Tilting The Scales Your Way

Know your environment and watch out for yourself. If you are a fan, know that the professional sports team probably adheres to governmental and league regulations. If you are the company, plan and respond to accidents in an organized fashion. For example, you may have seen stadium safety and medical personnel quickly moving to the aid of any fan hit by a foul ball or falling down. Even though the company may not be legally liable for the fan’s missteps or inattention, quickly responding to the accident is the right thing to do.

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Oil And Shrimp Don’t Mix

Forrest Gump and Lieutenant Dan committed Bubba Gump Shrimp Company to deliver 10,000 pounds of shrimp monthly to Wok Ann Chu-gumm Seafood Restaurants across the south. Unfortunately, the aftermath of a recent oil spill is likely to shut down Bubba Gump Shrimp boats all along the Texas Gulf coast. Forrest and Dan are worried they can’t deliver enough shrimp to cover their contract with Wok Ann Chu-gumm. The price of brown shrimp is already up 50% from the week before the oil spill. It’s time to fish or cut bait. Can Forrest and Dan just tell Wok they are terminating ... View Comments (0)

I Went to a Fight and a Hockey Game Broke Out

Soccer is Freddy Fifa’s favorite sport. Fifa just returned from South Africa after watching the United States’ disappointing round of 16 losses in the World Cup. As a souvenir of his experience, Fifa brought home a vuvuzela* and vows to be the first fan to introduce it to his second favorite sport – hockey. True to his word, Fifa brings his vuvuzela to the first game of the season and blows and blows and blows. After suffering a hard check into the boards and driven into a fit of rage as a result of the horn’s incessant droning, Ricky ... View Comments (0)

Textual Harassment?

Chris P. Letus doesn’t like burgers, shakes or Spam*. In 2008, Letus received an e-mail inviting him to King Burger to “taste the savory new bacon-loaded steak burger.” Letus immediately replied, “unsubscribe.” Two months later, King Burger sent Letus another e-mail about the bacon-loaded steak burger boasting about its “irresistible aroma.” Yet another e-mail was sent to Letus that summer urging him to “stop by King Burger for a refreshing mocha shake…the perfect mix of rich coffee and chocolate syrup.” Delicious as all of these offers sounded, this was all too much for Letus who brought suit against King Burger. ... View Comments (0)

The Ambitious Intern

Boisterous Billy Clint is a TV and film director in Los Angeles. With the economic downturn, times are slow in the film business. Billy laid off most of his corporate staff last year just to keep the doors open. Hoping to get the rights to produce the next big show, Billy still has administrative work to do. In what he thought was a stroke of genius, Billy contacted University of Big Dreams. For a small fee, UBD offered to find Billy a college student hankering to get an inside look at the entertainment industry to work without pay as Billy’s ... View Comments (0)

Hair Care Meets Obama Care

Ivana Cut owns Curl Up & Dye, a successful chain of hair salons.  Curl Up & Dye currently employs 47 full time stylists and, with the promising positive turn around in the economy, is planning to hire 5 new employees within the next year.   The company does not currently provide health insurance benefits to its employees.   Like many small business owners, Cut is closely watching President Obama’s health care legislation to assess how it will affect her business and whether she will be penalized for not providing health insurance to her employees. The 2400 page Patient Protection and Affordable Care Act ... View Comments (1)

April Foolish Fun

Ricky Bacardi was throwing a bachelors party for groom to be Harvey Wallbanger at the Tropicabana Hotel in Florida on March 31, the night before Harvey’s April  1st wedding . As the night wore on, Ricky suggested that they all play last man standing with shots of Aha Loco tequila. While Harvey was drinking real tequila, he had no idea that his friends were actually drinking water. With every shot of Aha Loco, Harvey became increasingly tipsy. Once he was wallbanging drunk, Harvey’s friends took his wallet, his identification, belt and shoes and carried him to the AeroSunshine airport where ... View Comments (0)

Cutting Employees May Cost You Over Time!

For over ten years Dudleydil E. Gent has been the purchasing manager for Effervescent Electronics, at one time supervising as many as ten purchasing agents. Due to the failing economy and lagging sales and in a desperate attempt to save his company, the Effervescent owner Julius C. Dithers directed four forced layoffs in the last eighteen months. To keep his own job, Dudleydil is now the only purchasing agent in his department. Moreover, after each layoff Julius gave Dudleydil more responsibilities and fewer employees to get the job done. Dudleydil is now acting manager of receiving, loading, inventory control, shipping, ... View Comments (0)

But His Goes “Ding, Ding, Ding, Dingy Ding-Ding” and Mine Goes “Ding, Ding, Ding, Ding, Dingy Ding-Ding”

Rapper Chocolate Ice’s new release Golfin’ Wit My Glock is a smash hit with nearly 400,000 digital downloads in its first week.  The success of the song has not escaped the notice of recording artist Bill Board, who believes that Ice has ripped off five notes from his 1980’s country hit single, “Now That We’re Both Miserable, I Hope You’re Happy.”  When confronted about the obvious similarity between the two songs, Ice claims the bassline riff is “different” and, even if they are the same, there’s nothing illegal about copying five notes.  Board disagrees and files a lawsuit alleging a ... View Comments (0)