April 2012
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Business Newsletter

Helping You Protect The Business You're Building 
In This Issue
Introduction
Reach Out
The State of Our State
Court Update
Article Corner
A Moment of Levity
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JeffFanger EHC

         

            Spring is here, and even though it feels like winter, we are excited about our firm's current activities. First, we want to commend Tim Smanik on his participation in "Reach Out" with The Cleveland Metro Bar Association on March 29. Tim provided pro-bono counseling for the nonprofit attendees and will do so again on April 25. The article "Reach Out" details his experience and provides information on how to get involved with the program. Tim will be attending the remainder of this year's Reach Out sessions, and we support his participation in the nonprofit community.

            We are also excited to announce our sponsorship of the Hillcrest Regional Chamber of Commerce's 2012 Business Expo. Fanger & Associates will have a table at the Expo and we hope to see everyone looking to make new business connections. The event will be held at 700 Beta Conference Center in Highland Heights on May 3 from 3-7pm.

            As always we want to thank you for taking the time to read our newsletter and encourage you to stay up to date with the laws governing Ohio. Enjoy the month of April and feel free to contact us with your feedback or any legal questions you may have.

 

 

Jeffrey J. Fanger

Reach Out                              
Participation in the Nonprofit Community

 

           The Cleveland Metro Bar Association held the first of four "Reach Out" seminars on March 29, which provide education and free legal counsel to nonprofit leaders and organizations. This session was entitled "Fundamentals of Nonprofit Governance," and featured John C. Goheen and Jennifer L. Adams of Ulmer & Berne LLP.

 

            Tim Smanik, Fanger & Associates' resident nonprofit attorney, attended the March 29 seminar and said of his experience; "Cleveland is a really special city in terms of charitable organizations and the people who lead them. We also have a vibrant legal community, and the combination has real potential for Reach Out and the success of nonprofit organizations in general." Tim was pleased that he was able to give his undivided attention to the participating nonprofits, as there were fewer than expected at the first session. Reach Out is hoping and planning for a bigger turnout for the April 19 seminar since the first session had more than enough lawyers to go around. The legal turnout was, according to Tim, "reassuring." He said it was "good to see that other lawyers in the community will give up their time for something this valuable."

 

The next session held on April 19 will feature Linda A. Striefsky and Jacinto A. Nunez of Thompson Hine LLP and Cynthia A. Binns and John D. Moran of GrafTech International Holdings Inc. on the topics of contract basics and real estate challenges.   To sign up as an attorney or a nonprofit leader, visit the Cleveland Metro Bar Association's Reach Out page at http://www.clemetrobar.org/ReachOut/ for full eligibility requirements.

 

We thank Tim for his contributions to the nonprofit community and we are proud to have him as a member of our legal team.

 

 

The State of Our State  

Changes in Ohio Law

Sub H.B. 267- 129th General Assembly

 

            Sub H.B. 267 enacted February 8, 2012 adopts the Revised Uniform Unincorporated Nonprofit Association Act. The bill permits unincorporated "Ohio nonprofit organizations to merge and consolidate with other types of domestic and foreign entities in a manner generally similar to mergers and consolidations currently authorized for limited liability companies."  

            H.B. 267 modified previous versions by allowing "the merger or consolidation of two or more corporations," either nonprofit or for profit, if the final entity will be a nonprofit. "The bill also provides "default" mechanisms similar to those in the Nonprofit Corporation Law relating to voting procedures, meeting requirements, and other matters relating to internal governance that apply when an association fails to establish its own rules of governance."

Finally, "The bill provides that if a domestic public benefit corporation is one of the constituent entities of a merger or consolidation that leaves a domestic nonprofit corporation as the surviving entity, the court of common pleas of the county in which the public benefit corporation has its principal office must approve the merger or consolidation. However, no court approval is necessary if (1) the surviving entity or new corporation is a public benefit corporation or (2) the surviving entity or new corporation is not a public benefit corporation, but the domestic public benefit corporation transfers assets as if it were being voluntarily dissolved, returns assets that are required to be returned upon the merger or consolidation, and receives approval of the merger or consolidation by a majority of the directors of the domestic public benefit corporation who have no financial interest in the merger or consolidation. Existing law, retained in the bill, authorizes the Attorney General's charitable law section to review a proposed merger or consolidation involving a domestic public benefit corporation that does not leave a domestic public benefit corporation as the surviving or new entity and to enforce the merger and consolidation provisions of the law."

 

All taken from the Ohio Legislative Service Commission Website, read the full bill, click here .

 

Candice BradleyCourt Update
Recent Court Decisions That Impact Your Business 

State ex rel. Bilaver v. Indus. Comm., 131 Ohio St.3d 132, 2012-Ohio-26.

 

 

In a Supreme Court of Ohio case decided January 10, 2012, the judgement denying Frank Bilaver temporary total disability compensation was upheld. In September of 2007, Bilaver left his job with Fluid Line Products, Inc. after he was denied permission for an extended leave of absence. "When Bilaver later applied for TTD compensation, the commission found that his decision to leave Fluid Line constituted a voluntary abandonment of employment that barred compensation."

 

Bilaver then filed a complaint in the court of appeals, stating that his removal from Fluid Line was not of his own accord and that he was in fact fired. He claimed that the trial court had "abused its discretion in finding that he had voluntarily abandoned his job at Fluid Line." The court disagreed, finding that Bilaver was not fired, but quit, giving two weeks notice to Fluid Line after the company denied his request for extended leave of absence. Bilaver claims to have rescinded his voluntarily departure in a letter dated September 27, 2007, but the court found that the letter did not clearly indicate his wish to remain under Fluid Line's employ. The court also found that a letter from Fluid Line to Bilaver was simply a statement of Bilaver's departure, not proof that he was fired.

 

The first crucial decision point in this case is that "a claimant who voluntarily leaves his or her former position of employment cannot receive TTD compensation unless the claimant has secured other employment and is prevented from doing that job by a flare-up of the original industrial injury." State ex rel. Baker v. Indus. Comm. (2000), 89 Ohio St.3d 376, 732 N.E.2d 355, syllabus. The second point stemming from this is Bilaver's allegation that his departure from Fluid Line was involuntary, which the court found flimsy at best. Without "evidence that Bilaver secured another job and was prevented from doing it by his industrial injury, the commission did not abuse its discretion in denying TTD compensation." 

 

Article CornerLegalnewsPic

Recent News You Might Have Missed

  

"Corporate America to Small Biz: Sell to Us"

By John Tozzi

March 22, 2012

 

 

           Criticism of America's corporations has been intensifying in the past few years as our economy continues to struggle and our largest companies continue to ship work overseas and outsource production. Corporate America is now displaying some domestic responsibility, however, as a group of multinational companies led by tech-giant IBM has created Supplier Connection.

 

           Supplier Connection is a website where companies with fewer than 500 employees or below $50 million in revenue can display their products or services along with company finances and certifications. Through a single application, small businesses can apply for vendor consideration from participating companies that typically spend $300 billion overseas annually. Although small businesses are not currently permitted to browse jobs, participating companies can use the database as a referral source when looking for vendors.

 

           IBM International Foundation came $10 milion out-of-pocket to "grow the U.S. economy in an effective way," by breathing life into small companies and giving big companies the advantage of attentive customer service. Kevin Lyons of Rutgers Business School says, "With a small business, the hunger to do more business, to actually interact with such a large firm allows them to adapt and change."

 

           Since Supplier Connection's birth 18 months ago, supplier spending going to small businesses has increased to $1.4 billion from $1 billion. There are still those who don't see the advantages for big business in this venture, however. Joel Sutherland, managing director of the Supply Chain Management Institute at the University of San Diego says "It's building complexity in, not simplifying it. I don't think there's a strong business case for turning to small business suppliers."

 

           Perhaps the advantage is not overwhelmingly on the side of big business... this time. But that should not stop any small business owner who sees a potential for growth or increase in revenue from participating in this project.

 

 

Visit Supplier Connection by clicking here.

 

To read the full article, click here.

 
 A Moment Of Levity
 A little humor to brighten your day. . .
 
 
  
 
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The opinions and views expressed in this newsletter are solely those of the author of the article and/or Fanger & Associates LLC. Articles appearing in this newsletter are intended to provide broad, general information about the law. This newsletter is sent to clients and friends of Fanger & Associates LLC, as well as Ohio businesses and Ohio non-profit corporations as identified through their registration with the Ohio Secretary of State, including organizations with which Fanger & Associates LLC has no prior contact. Before applying this information to any specific legal problem, readers are urged to seek advice from an attorney. If you have any questions regarding any topic in this publication and you already have a lawyer, please contact your lawyer. If you do not already have counsel, please feel free to contact Fanger & Associates LLC and we will be happy to assist you.
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