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We would be happy to further discuss these or any other issues with you. Please call (262) 886-9720 to speak with your attorney or any of the following individuals:
tomb@dkblaw.com
Mark Brault
mark@dkblaw.com
William Kolbe
Daniel Pettit
dan@dkblaw.com
Gregory Ruidl
greg@dkblaw.com
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| Greetings!
Welcome to the first issue of our firm's newsletter. This issue contains legal information regarding business, estate planning, litigation and real estate issues.
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Meet Your Attorney
Thomas Binger 
Tom practices in the areas of business and commercial litigation. He assists clients in planning for litigation and resolving disputes. He also has extensive experience trying cases to judges and juries. He was admitted to the Wisconsin bar in 1996. He received his law degree from University of Michigan Law School (1996). | |
A Judgment is Really Only Worth the Paper It's Printed On
Most businesses don't want to be involved in litigation, but once in it, the goal is to win. For plaintiffs, the objective is to obtain a judgment against the defendant(s). Rendered by a Judge after the facts of the case have been determined by the Court or a jury, a judgment is what most litigants believe concludes the matter. In fact, a judgment may only be the beginning.
The expectation is that a defendant will pay the judgment rendered against it. However, in circumstances where a defendant fails to satisfy the judgment voluntarily, there are a number of remedies available under Wisconsin law. For starters, the judgment should be docketed in the Court that issued it and also in any County where the defendant has assets or property. In many instances, the act of docketing the judgment can cloud the defendants' title to those assets and open up another avenue to recovery.
It may be necessary to take further steps to enforce the judgment. One initial step can be to conduct a supplemental examination of the defendant. This procedure, much like a deposition, can help identify and locate assets of the defendant, such as bank accounts, accounts receivable, equipment and other property. Armed with this information, a plaintiff seeking to enforce a judgment can begin to garnish accounts and foreclose on property and other assets to recover what is owed him.
For further information or assistance with this matter please contact Tom Binger |
Revocable Trusts  Revocable trusts (also called "living trusts") are often used as the main document of an estate plan rather than a Will to accomplish the following goals:
· Avoiding probate
· Avoiding guardianship
· Minimizing estate taxes
· Providing privacy
· Avoiding court involvement in the administration of ongoing trusts
Generally the person who sets up the trust (called the "grantor") continues to manage the assets of the trust (acting as the "trustee") and retains complete control over his or her assets and the ability to change or terminate the trust. The revocable trust provides for the distribution of the person's assets at his or her death. A married couple can set up a joint revocable trust. A revocable trust can include a trust for minor children.
Revocable trusts can help married couples save estate taxes by using both spouses' estate tax exemptions. Currently the federal estate tax exemption is $2,000,000 per person.
Wills do not avoid probate. Rather, a Will serves as your instructions to the probate court on how you want your assets distributed to your beneficiaries. The probate process involves filing initial paperwork with the court to admit the Will to probate and to appoint a personal representative. Additional steps involve the filing of an Inventory of the assets, making distributions and paying expenses and closing the probate process. Probate assets are those assets titled in the decedent's name alone which do not have beneficiary designations.
For further information or assistance on this matter please contact Kathy Bach
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AVOIDING OFFICE SUPPLY SCAMS
Could your organization be a victim of an office supply scam? If you don't have adequate purchasing controls there is a chance. The Federal Trade Commission warns that businesses are being bilked out of millions of dollars by bogus office supply firms. You can protect yourself by learning to recognize the scams.
THE SCAMS
Office supply scams generally take one of three forms - the phony invoice, the pretender, and the gift horse.
Phony Invoice Scams
The goal of the phony invoice scam is to get the name and address of an employee so your organization can be shipped and billed for unordered goods or services. The invoice includes the employee's name as the "authorized" buyer.
Once the con artist has an employee's name and address, he'll ship the unordered merchandise. The phony invoice arrives a week or so after-for two reasons: First, the inflated price is less obvious if the invoice arrives after the merchandise has been received and stocked. Second, the chances are good that you've used the merchandise before the invoice arrives. Many organizations mistakenly believe that they must pay for unordered merchandise if they've used it.
The Pretender Scam
In the pretender scam, the caller will pretend to be your regular or previous supplier. By convincing you (or your employee) that the goods or services and prices offered are the same as before, the caller hopes you won't bring up prices, quantities and brands.
The Gift Horse Scam
The gift horse scam tries to create mistrust within an organization. The scheme starts when the caller tricks an employee into accepting a gift - a free promotional item - with a passing reference to merchandise or services. You receive overpriced unordered merchandise, followed by an invoice with the employee's name. When the organization questions the employee, the fraudulent seller is betting that the employee will either (i) make payment on the invoice so he can hide the fact that he accepted the gift, or (ii) will be so nervous about the gift when he denies placing the order that the organization will doubt the employee. When this scheme works, the organization believes that the employee blundered into ordering something that must be paid for.
AFTER THE INVOICE ARRIVES
Scam artists spend significant time and energy on collection efforts. They send as many invoices as it takes to get your money. Invoices are often stamped "Past Due." In extreme cases, they'll resort to real or bogus collection agencies and threats of legal action.
PROTECT YOUR ORGANIZATION
You can protect your organization from paying for unordered goods and services. Here's how:
1. Know your rights. If you receive supplies or bills for
services you didn't order, don't pay, and don't return the unordered merchandise. By law, it's illegal for a seller to send you bills for unordered merchandise, or ask you to return it.
2. Assign designated buyers and document your
purchases. For each order, the designated employee should issue a purchase order to the supplier with an authorized signature and a purchase order number. The order form should instruct the supplier to note the purchase order number on the invoice and bill of lading. The buyer should send a copy of every purchase order to your accounts payable department.
3. Check your documentation before paying bills.
When merchandise arrives, the receiving employee should send a copy of the bill of lading to your accounts payable department. A supplier should nto be paid unless the invoice has the correct purchase order number and the information on the invoice, the purchase order and the bill of lading match.
4. Train your staff. Train everyone in how to respond to
telemarketers. Advise employees who are not authorized to order supplies and services to say, "I'm not authorized to place orders. If you want to sell us something, you must speak to _______ and get a purchase order
If you should find that your business has been victimized by an office supply scam, you should contact the FTC, the Wisconsin attorney general and the better business bureau. You may also want to have your attorney review your insurance coverage to determine whether there is any protection against fraud which might allow you to recoup any loss.
For further information on this matter please contact Dan Pettit.
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REAL ESTATE TAXES
From now until the end of January, we are all making those painful real estate tax payments. This is made worse by the fact that with the current real estate slow down, it is unlikely that the property could be sold for its assessed value.
Now is the time to work on reducing the assessed value. It takes time to gather your information and present it to the local assessor, time you won't have if you wait until you get your 2008 notice of reassessment. In preparation, consider the following:
· Did you recently acquire the building for less than its assessed value?
· Have the number of tenants in your building decreased this year?
· Are you aware of recent sales of similar properties that sold for less than your assessed value?
· Are you faced with major repairs to the property?
· If you recently refinanced the property and the lender had an appraisal done, was the property's value below the assessed value?
· Obtain a new appraisal to demonstrate the reduced value.
· Did you list the property in 2007 at a value at or below the assessed without obtaining an acceptable offer?
My experience is that you can often get a ten to fifteen percent reduction in the assessed value by intelligently engaging the assessor. This firm routinely assists clients in reducing their assessment and would be happy to meet with you to review and assess your situation.
For further information or assistance with this matter please contact Mike Bannon |
EVERY BUSINESS OWNER NEEDS A CONTINGENCY PLAN
What happens to the business if its owner unexpectedly suffers a stroke or dies in an accident. Who will take over and run the business on an interim basis, sign payroll checks and keep the business functioning? These are all critical questions which should be answered in a short, well defined written contingency plan. Otherwise, a lifetime of hard work and devotion in building a business can be ruined as a result of an unanticipated turn of events.
GETTING STARTED
First of all, a contingency plan needs to be straight forward and easy for everyone to understand. The first issue to deal with is who is in charge. If something happens to the owner, the plan should designate what individual or group of individuals are in charge and their specific areas of responsibility. If a business does not have a board of directors, the interim management group should report to a trusted board of advisors, who will work with the interim managers and protect the financial interests of the family. All of this should be spelled out in the plan. The plan should also discuss who will deal with the business' lender, accountant and other financial advisors in order to make sure the business continues to operate successfully.
DEALING WITH CUSTOMERS, SUPPLIERS AND EMPLOYEES
Another critical feature of the plan are the steps necessary to reassure the business' customers, suppliers and employees that the business will continue. This is critically important so that they are not in a panic mode. The immediate focus should be on satisfying the needs of the customers on a day to day basis and to the fullest extent possible, the mantra should be "business as usual", even though the reality of the situation might be entirely different.
DETERMINING THE FUTURE STATUS OF THE BUSINESS
Once the day to day situation is stabilized, it will be important to determine whether or not the business owner will be returning or if someone else within the organization will be taking over managing the business on a permanent basis. If the situation is short term, the strategy will be one of keeping things going until the owner returns. However, if the owner is not going to return, a decision will have to be made whether to keep the business or put it up for sale.
NEED FOR FINANCIAL INCENTIVES
In either situation, financial incentives should be put in place for the management group to stay on and run the business or assist in the sale of the business and its transition to a new owner. Tying the financial incentives to the profitability of the business is one way of keeping the business on track financially. A simple way is to develop a bonus pool equal to a percentage of the profits, i.e., 20% of the pre tax income which then gets split among the management group. If the business is going to be sold, the management group can share in a percentage of the sale proceeds as a bonus for their loyalty and assistance in transitioning the business.
AVOIDING CRITICAL MISTAKES
One of the critical mistakes which needs to be avoided is for family members who know nothing about the business from all of a sudden inserting themselves into the day to day management of the business. The financial interests of the family should be monitored by the board of directors or board of advisors and not by individuals who lack the skill and knowledge of the business. If they have been actively involved in the business that is one situation, but if they simply "show up" this can result in a disaster.
NEED TO DISCUSS PLAN WITH FAMILY MEMBERS AND KEY PLAYERS
Once the contingency plan is developed it should be reviewed and discussed with the key players. The business owner also needs to advise his or her family of its contents as well as all outside advisors who are involved with the contingency plan. If part of the contingency plan contemplates the actual sale of the business, it would be very helpful if the business owner develops a list of who might be potential purchasers and what is a realistic selling price for the business.
CONCLUSION
Needless to say, there will be many questions which will remain unanswered by the contingency plan, but setting forth a framework for keeping the business functioning and providing the business owner's family with first hand knowledge of the business owner's wishes and a road map to follow will provide invaluable assistance to everyone involved with the business.
For further information or assistance with this matter please contact Greg Ruidl. |
This document provides information of a general nature. None of the information is intended as legal advice. Additional facts and information or future developments may affect the subjects addressed in this document. You should consult with a lawyer about your personal circumstances before acting on any of this information because it may not be applicable to you or your situation. | |
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