The Texas city of Helotes has been in negotiations with San Antonio about a land deal that would give Helotes more territory. For years, San Antonio and Helotes leaders have discussed the possibility of the smaller town gaining 6.7 square miles to allow Helotes to grow. San Antonio had originally offered Helotes a smaller piece, but the mayor of Helotes rejected it, requesting more land in order to achieve the town’s eventual economic goals.
]]> Texas Representative Lyle Larson sponsored a bill that would allow smaller cities to take advantage of Extra Territorial Jurisdiction to gain additional land without San Antonio’s consent. Both cities decided to negotiate a deal that would avoid legislation and real estate disputes. The additional territory Helotes stands to gain could give them the potential to grow over the next 10 to 20 years.New construction and growth are essential to allow cities of every size to attract businesses and residents. Therefore, it makes sense that even smaller towns like Helotes should be allowed the opportunity to expand their real estate and give them the opportunity to prosper.
Source: Texas Public Radio, “Helotes-San Antonio Land Dispute Coming To A Resolution,” Ryan Loyd, May 3, 2013
]]>The Austin Fire Department is being investigated by the U.S. Department of Justice for their hiring practices. Officials say they have information that indicates the department might discriminate against minorities during their hiring process. The Justice Department’s assistant attorney general has authorized the action to find out if the fire department has a pattern of discriminating against African Americans and Hispanics seeking employment with the department. Employment discrimination against minorities is a violation of federal law.
]]> Austin’s fire chief has expressed a desire to showcase the department’s improvements to their hiring process, and looks forward to the investigation as an opportunity to dispel any notions of discrimination. The Deputy City Manager affirms the city’s commitment to equal opportunity employment.With any business, hiring practices should reflect the city’s demographics as well as maintain a staff of qualified, professional employees. The Austin Fire Department has attempted to staff minorities according to federal guidelines since 1977. Although details about what prompted the fire department’s investigation aren’t available, officials in charge of the department seem confident their hiring strategies will pass the investigation.
As Texas continues to be a leading state for racial diversity, it may not be unusual for civil rights issues regarding employment to come to light from time to time. Knowing the law regarding equal employment may help to protect businesses from lawsuits.
Source: American-Statesman, “Feds to investigate whather Austin Fire Department discriminates against minorities,” Ciara O’Rourke and Tony Plohetski, April 23, 2013
]]>In some cases, contract issues can be settled out of court, if both sides are willing to come to an agreement, or the party that caused the contract breach is willing to follow the terms. However, it isn’t always easy to resolve a contract dispute out of court. Texas-based Medhost is involved in litigation against a Naples, Florida company for breach of contract, after Medhost stopped receiving payments for their emergency room software.
]]> The Florida company, Health Management Association, had Medhost’s software installed at their Seven Rivers Regional Medical Center near Tampa for testing in May 2011. After a 60-day trial period, the software was installed at all of HMA’s 58 hospitals. HMA made the first two payments to Medhost, but didn’t pay the third payment of $4.5 million.Medhost notified HMA of the contract breach in February, yet says they still haven’t been paid the third installment. Meanwhile, HMA has had the software installed at eight additional hospitals. An HMA spokesman says the medical group hopes to be able to resolve the dispute outside of court. Medhost has also expressed a willingness to settle the issue without litigation, and says the complaint was only filed as a last resort after conversations with HMA still didn’t yield the $4.5 million payment.
Whether on the paying or receiving end of a contract, litigation that arises out of confusion or lack of communication can be costly and complicated, and may need the help of a corporate attorney to sort out.
Source: Naples News, “Software provider sues Naples-based HMA, alleges $4.5M owed,” Liz Freeman, April 25, 2013
]]>To violate a non-compete agreement opens the door for business litigation. Since business contracts are binding in Texas, if a former employee is found to have committed a breach of contract, there’s a good chance the court will rule against that individual.
]]> Ackermann PR claims their former vice-president violated a non-compete agreement after he was terminated from the company. His contract stated he was not to perform PR work with 50 miles of Dallas-Fort Worth International Airport, Nashville International Airport, and Knoxville, Tennessee for three years after ceasing to work for the company. However, Ackermann says the former VP was involved in PR work with at least three clients since he stopped working with them last year.In 2011, the PR firm also sued their former EVP, saying he started his own PR firm using confidential information from the company and taking several of their own clients with him when he left.
There’s no mistaking the valuable knowledge a person can gain by working for a successful organization. This can certainly give someone the chance to start up his or her own business in the field later on. However, in the interests of being professional as well as avoiding business disputes, it’s always wise to honor the terms of a non-compete agreement.
Source: PRWeek, “Ackermann PR sues former employee over non-compete,” Brittaney Kiefer, April 18, 2013
]]>Texas lawmakers are considering a bill that will make discrimination illegal for gender identity or sexual orientation. Laws like this are already in place in many areas around the country. Employers can take steps to protect themselves from lawsuits by avoiding discrimination, and by being clear about the reasons for disciplinary action should it become necessary.
]]> In order to avoid possible employment litigation, it would be a good practice for employers only to discipline or terminate employees based on their job performance and not solely on their sexual preference or identity. Every employer already knows the legal ramifications of discriminating against sex, religion, and other factors that are protected by law. Even before a law barring LGBT discrimination is passed, an employer may face certain legal recriminations by employees trying to protect their civil rights.Unfortunately, even when an employer does his or her best to engage in fair employment practices, an employee may still misinterpret actions or discipline, or attempt to get even. Consulting with a corporate attorney in these cases may help to protect the company.
Source: CityTownInfo.com, "Texas Legislators Review Anti-Discrimination Bill for LGBT Workers," Aneesha Jhingan, April 4, 2013
]]>Kraft Foods has been known in grocery stores nationwide since 1957 for its line of Cracker Barrel cheese. The food company is suing the restaurant chain Cracker Barrel Old Country Store for trademark infringement, after the restaurant prepared its own line of food products for the grocery market, the first of which was a spiral cut ham. Although the restaurant's plans for consumer grocery food only included several different types of meat products, Kraft says their cheese brand sales will suffer, if not die completely, if the restaurant doesn't pull its infringing brand.
]]> An attorney for Kraft said the company is trying to protect its Cracker Barrel trademark registration for their grocery products. Consumers may be confused if two different companies have products with similar trademarked names on store shelves. Kraft Foods is worried that any confusion would result in a permanent, negative impact on their long-standing cheese products. A spokeswoman for the Cracker Barrel restaurant says they expect a federal district court judge to rule on a temporary injunction in June.Business disputes between two large national companies such as these have the potential to determine how future business can be conducted. Will the Cracker Barrel restaurant have to pull their new products from shelves, or will they be allowed to change their brand's name or make some other compromise?
Source: The Lebanon Democrat, "Kraft sues to stall Cracker Barrel growth," Jared Felkins, Mar. 28, 2013
]]>A Texas-based cloud service provider, Rackspace, is taking action against what they call one of the country's most notorious patent trolls. They've filed a lawsuit against the PAE IP Nav and Parallel Iron, citing breach of contract over a forbearance agreement that they signed with IP Nav.
]]> IP Nav, on behalf of Parallel Iron, accused Rackspace of patent infringement in 2010. Rackspace says Parallel Iron has sued 11 other companies, alleging patent infringements for the use of the open-source Hadoop distributed file system. They've also sued at least 23 additional companies since June, including Facebook and Amazon.IP Nav wouldn't let Rackspace in on any details regarding the alleged patent infringement until they'd signed the forbearance agreement not to file a lawsuit without 30 days' notice. However, Parallel Iron then sued Rackspace without giving any notice. Rackspace countered with their own lawsuit, wanting a declaratory judgment that they don't infringe on patents, in addition to their breach of contract claim.
Rackspace says the tactics of PAEs "suffocate innovation" and harm both large and small businesses alike. The outcome of this lawsuit may make an impact on future business disputes between new technology and the companies known as patent trolls.
Source: CNET, "Rackspace fights back with suit against 'notorious' patent troll," Steven Musil, April 4, 2013
]]>The Ashby project, a 21-story tower including 228 high-end apartments and a restaurant, was expected to begin early this year. A 2010 lawsuit by its developers claims that the city had exceeded its authority by denying building permit applications. Houston's mayor helped the project's developers, Buckhead Investment Partners, and the city to settle the $40 million lawsuit by saying the city can't legally stop the high-rise project.
]]> However, a new setback has delayed the construction. The general contractor, Linbeck Group LLC, cited technical issues in its decision to withdraw from the building project. Buckhead says it hopes to name a new contracting company soon, and the Ashby high-rise project is expected to continue as planned.Although commercial real estate projects sometimes sour or stall, the above case shows that disagreements can often be settled or resolved to the general agreement of most people involved. I n older communities, new growth can be seen as a sign that the area is healthy and thriving. City planners, government officials, corporate attorneys, and local commercial real estate laws are meant to work together to introduce new growth in a way that doesn't detract from the charm and tradition of older neighborhoods.
Source: Houston Business Journal, "Linbeck Group pulls out of Ashby high-rise construction," Deon Daugherty, Mar. 21, 2013
]]>BP is challenging its claims administrator, alleging breach of contract and misinterpretation of the class-action settlement the oil giant agreed to for the devastating 2010 Gulf of Mexico oil spill. The business litigation comes after what BP says were millions of dollars in false or inflated claims by companies that were barely affected, or not at all, by the spill. BP has filed for an emergency court injunction asking for the administrator to comply with BP's interpretation of the settlement agreement.
]]> The oil company says they've paid over $400 million to date to claimants in agriculture, construction, real estate, retail trade, and more, for damages they doubt occurred. For example, a Louisiana rice mill received $21 million in damages, despite being 40 miles from the coast and doing better financially in 2010 than in the previous three years. A northern Alabama road construction company 200 miles inland with no ties to business near the Gulf of Mexico, received $9.7 million, despite having its best year in 2010.Since the settlement has no cap on potential damages, BP says they can be harmed permanently if they're required to continue paying presumably fraudulent awards. Any business that feels it's the subject of false claims and unethical administrators is entitled to seek protection from a court of law.
Source: Houston Chronicle, "BP says it's paying 'absurd' claims under spill deal," Harry R. Weber, Mar. 15, 2013
]]>The CEO of Golden Frog, a competitor of the popular online storage company Dropbox, says he thought his company's smear campaign against Dropbox would be a fun way to generate interest in his own business. During the tech trade show South By South West, Golden Frog's campaigners distributed pamphlets slamming Dropbox's services, and invited them to visit a website set up by Golden Frog for the purpose of encouraging Dropbox's users to dump the service.
]]> Golden Frog hid their involvement, instead disguising the campaign as a grassroots movement. They were only discovered when some online users became suspicious and noticed similarities between Golden Frog's site and the false grassroots campaign's site. Only then did the company's CEO admit they were behind the campaign.A corporate lawyer says that Dropbox could sue for unfair or deceptive trade practices, since Golden Frog's campaign may have violated the Federal Trade Commission Act that prohibits false advertising. Although it's perfectly all right for businesses to compete with each other and advertise their own services, it would be wise for company executives to think carefully before making claims against another business, or they could find themselves in the midst of a legal corporate dispute.
Source: Herald Sun, "Unmasked: Golden Frog admits to creating sleazy DumpDropbox scare campaign," Claire Porter, Mar. 13, 2013
]]>The former vice president of central Texas's Whitney 1st National Bank will appear in federal court on a charge of embezzlement from a federally insured financial institution of more than $1,000. In fact, the amount she is alleged to have stolen from bank vaults over the course of at least ten years amounts to more than $6 million.
]]> Federal court documents say the former employee falsified bank documents to cover the thefts, which she used to purchase luxury cars and fund gambling trips to Las Vegas, Nevada and Shreveport, Louisiana. Reportedly, she would hand out co-workers $100 bills after her trip, claiming they were gambling winnings. On at least one occasion she brought $100 bills to the bank from home when the bank ran out of bills, and replaced them with $20 bills from cash drawers. She resigned from her position in January 2012.The bank's president says that its losses were taken care of by their holding company and insurance, and that customer accounts weren't affected. However, employees or business partners who commit fraud or embezzlement against a company have the potential to seriously damage the business. Businesses wishing to protect themselves may benefit by consulting with a corporate law attorney.
Source: KWTX.com, "Former Central Texas Bank Employee Charged In $6 Million Theft," Paul J. Gately, Feb. 19, 2013
]]>The CEO of Macy's Inc. has sued Plano, Texas-based J.C. Penney Co. over J.C. Penney's new deal to start selling some of Martha Stewart Living's products. In return, Martha Stewart's company is accusing Macy's of a breach of contract over the way Stewart's products have been sold and marketed.
]]> The J.C. Penney arrangement was to supply certain Martha Stewart Living items, after J.C. Penney acquired a 17 percent stake in the household goods company in December 2011, and made plans for mini-stores dedicated to Martha Stewart Living and other brands.Macy's has been awarded a preliminary injunction by the New York State Supreme Court that blocks J.C. Penney's agreement with Martha Stewart Living. Macy's has sold Martha Stewart products in certain categories, such as bedding and cookware, since 2007, and the CEO says J.C. Penney is trying to reap the rewards of Macy's exclusive work with Martha Stewart to build up her line after her release from prison in 2005.
A Martha Stewart spokeswoman says Macy's CEO is distracting the case with irrelevant emotional stories. She claims the real issue is a contract dispute - that Macy's did not honor the original 2006 contract that stated Macy's had to prominently feature Martha Stewart products in its stores, and that it favored private labels over the Martha Stewart brand.
The outcome of the trial may clarify whether companies can claim exclusive rights to certain brands they sell.
Source: Bloomberg, "Macy's CEO Says He Expected Martha Stewart Exclusivity," Chris Dolmetsch, Feb. 25, 2013
]]>After a Starbucks manager was terminated from her job, she fired back by suing the coffee chain and a former co-worker for unlawful discrimination. According to her case, she says her problems began when she was suspended from work after she was arrested for allegedly assaulting a fellow employee. Upon returning to the job, she was presented with a statement that said she was involved in an "improper relationship" with said employee -- a statement she says she refused to sign.
]]> Several months later, the company let the woman go when she requested a transfer to another store. Among her complaints were managers and another employee who constantly tried to get her to admit her sexual preference.Starbucks, which asserts its promotion of equality and diversity and its zero-tolerance policy on discrimination and harassment, confirms the woman was fired. A spokesman says there is no factual basis to her claims.
Although companies are sometimes found guilty of violating employees' civil rights, the opposite can also happen. It's not clear yet who was at fault in the former manager's case against Starbucks, but the company has every right to defend itself from employment litigation if it feels the woman's termination had nothing to do with discrimination.
Source: The Huffington Post, "Alicia Brooks Sues Starbucks After Being Fired, Claims She Was Wrongly Accused Of Being Gay," Hunter Stuart, Feb. 13, 2013
]]>Such a case is occurring with a commercial sale that has turned into real estate litigation between the state attorney general and interested buyers of San Antonio's old Texas Highway Patrol Museum. The large brick building has been vacant and in litigation for over a year after the attorney general sued its previous owners, a telemarketing company, for deceptive business practices. Now the attorney general's office has been granted an emergency motion to stop the sale to local real estate developers who had hoped to purchase the building.
]]> The real estate broker and attorney in charge of the sale have been accused of ignoring the highest offer in favor of the real estate developers. The high bidder, the owner of a restaurant across the street from the old downtown museum, enlisted the attorney general's help to appeal a sale that they say was unfair.However, the sellers, developers and judge who had approved the sale claim that there wasn't evidence of fraud in the purchase and that the restaurant owner had no solid reason to challenge the sale. The sellers weren't satisfied with the high bidder's conditions, which may have tied up the property for at least three more months.
The judge's decision implies that sellers have the right to sell to whom they choose, whether or not they are the highest bidder. However, in cases where there is a commercial real estate dispute, attorneys will likely need to get involved to sort out who has the legal right to purchase the property.
Source: San Antonio Express-News, "Texas attorney general appeals sale of Texas Highway Patrol Museum," John Tedesco, Feb. 8, 2013
]]>A former employee of Oprah Winfrey's OWN network is suing the network over what she feels was pregnancy discrimination. The network's former senior director of scheduled acquisitions has filed a lawsuit accusing sex discrimination, disability discrimination, failure to prevent discrimination, retaliation, and willful failure to pay wages after discharge or termination.
]]> The plaintiff had taken medical leave due to her pregnancy and allegedly returned to find her duties being gradually taken over by a temporary employee who had filled in during her absence. She was laid off from her position a month after her baby was born. She states outstanding performance reviews and the hint of a possible promotion before her medical leave as evidence she was discriminated against.The general public doesn't know the true reasons for her termination, so there is a chance her employer had a good reason to find a replacement. Sexual harassment, discrimination and other civil rights violations are common reasons for employees to file lawsuits. Companies who wish to protect themselves from lawsuits such as these can find out what their rights are by speaking with an experienced attorney.
Source: Popular Critic, "Former Employee Hits Oprah With Sex Discrimination Lawsuit," Taylor Gordon, Feb. 3, 2013
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