Sullivan & Ward's Bob Holliday Secures Presidential Pardon for Prisoner

 Sullivan & Ward's own Bob Holliday recently secured a presidential pardon for a federal prisoner.  Reed Prior had been given a life sentence from a prior drug conviction.  For the past seven years, Bob and others have worked tirelessly for Mr. Prior to secure his early release what many felt was an unfair sentencing under the "three strikes" sentencing guidelines.  While serving his sentence, Mr. Prior turned his life around and helped hundreds of other prisoners obtain their GED's (Prior already had a master's degree) and in letters to schools, pleaded for kids to stay away from the evils of drugs.  Catch Bob's interview on channel 8.  Congratulations Bob.

Owning Investment Real Property in Your Series LLC

Greg Herman-Kiddens at the North Carolina Estate Planning Blog has a good reminder article about using a limited liability company to own your investment real estate.  A limited liability company, as the name implies, gives you the capability to limit your liability exposure if you have any investment properties.  Insurance is the first level of protection, but there can be exceptions and limitations to insurance coverage.  That's where a LLC can come into play for the extra layer of protection.  If there is a gap in insurance coverage, individually-owned property exposes the owner and the owner's assets to liability.  However, placing that property in an LLC and only the LLC's asset are exposed.  But what if you have several investment properties?

Iowa is currently one of a few (7) states that permit series LLC's.  Basically, a series LLC allows the owner to have multiple properties/business ventures under one company structure, but treated as separate entities for tax purposes and liability purposes.  In fact, Marc Ward believes that there may be an argument that a series LLC could provide even better protection than a separate LLC. 

Bullies in the Workplace

When does bullying behavior in the workplace rise to an actionable level? This question was considered by the Iowa Court of Appeals in Wilson v. Cintas Corp No. 2 released Wednesday, December 17, 2008.

The facts indicate that Wilson was daily subjected to a “constant barrage of personal attacks, insults, and vile profanity” by his co-worker Mills. (The conduct occurred for approximately 5-10 minutes each day). The specific insults are too vulgar to repeat, but can be found in the opinion. It was also brought out that both employees were involved in the insults and profanity. Wilson did report the conduct to his supervisors. Apparently the employer took some action because Mills was terminated in December because he had four occurrences of shouting inappropriate language and not maintaining a level of professionalism. Later Wilson terminated his employment for reasons unrelated to Mills’ conduct.

 

The opinion tells us that “outrageous conduct” is the standard for maintaining an action against a co-worker for this type of conduct. Outrageous conduct “is so extreme in degree as to go beyond all possible bounds of decency, and to be regarded as atrocious, and utterly intolerable in a civilized community.”  It should extract an exclamation of outrage from and instill resentment in the average member of the community. Mills’ behavior was considered “inconsiderate, unkind, and offensive” but was not outrageous conduct according to the court.

 

The court contrasted Mills’ behavior with the behavior of a supervisor in Blong v. Snyder, 361 N.W.2d 312 (Iowa Ct. App. 1984). In that case a discharged employee who was reinstated after filing a grievance was falsely “accused of stealing, wasting time, intentionally breaking his machine, intentionally producing inferior parts, violating fifteen company rules, playing with himself in the restroom, given extra work without receiving the proper tools to do the job and was then berated, threatened, and disciplined for his inability to properly complete the task.”

It’s apparent from the comparison between these two cases that the court will not get involved in personality conflicts but will step in when offensive conduct rises to a level that is unconscionable.

Iowa Law: Walking in a Winter Wonderland of Shoveled Sidewalks

Looking out my window at today's snow accumulation, I am unfortunately reminded of my legal duty to shovel my sidewalk when I get home.  According to Iowa Code Section 364.12(2)(b):

The abutting property owner is responsible for the removal of the natural accumulations of snow and ice from the sidewalks within a reasonable amount of time and may be liable for damages caused by the failure of the abutting property owner to use reasonable care in the removal of the snow or ice.

 

A "reasonable amount of time" means:

  • Des Moines:  within 48 hours following the end of the snowfall. Property owners who do not comply are subject to a civil citation.
  • West Des Moines:  after the 24 Hr period after the storm ends, complaint calls will be routed to the Police Department for complaint follow-up and code enforcement.
  • Urbandale: after twenty-four (24) hours or more, 12 hours to shovel following complaint, then subject to criminal prosecution.
  • Clive: twenty-four (24) hours after a snowfall or the deposit or formation of ice.

If your City is not included in my list above, suffice it to say, you should still shovel your walk tonight.

Photo on Flickr by Marko K

Iowa's Brain Drain

A December 2008 report by the Generation Iowa Commission finds:

  • Iowa had a “brain drain” of 19,500 college-educated people for 1995-2000.
  • 12 percent of currently available jobs in Iowa are for college graduates.
  • Iowa’s brain drain is 4th worst in the nation since 2000.
  • Iowa is one of only six states facing a declining rate of the percent of our population with at least a bachelor’s degree.
  • Iowa has the 9th lowest average wage out of 10 regional states.
  • Iowa’s wages are 20 percent lower than the national average.
  • Cost of living adjustments do not make up the wage gap.
  • Iowa college students rank 17th nationally at a volunteer rate of 32 percent.

The Commission offers several recommendations to attempt to reverse these alarming trends, including:

  1. Allowing Next Generation more participation and input on state economic commissions and boards,
  2. Advancing a more ambitious and expansive job-creation program throughout the state,
  3. Expanding internship availabilities to Iowa college students in higher-educated growth industries, and
  4. Providing increased incentives for participation in Americorps and other volunteer organizations within the state.

Iowa is a national leader in alternative fuel and energy production.  It would be interesting to see if the state can create a new model for economic success by powering the country through the utilization of young talent and ideas, before these college graduates leave our state in search of greener pastures.

Planning for Meeting with Estate Planner

Whether you are planning on meeting the estate planning attorney for the first time or the fifteenth time, there are a few things to consider before the meeting for preparation.

  1. The "what" - Determine Your Assets - Know what assets you have, how much is your net worth, who are the designated beneficiaries.
  2. The "whom" - Determine whom you would like to benefit - Who do you want to receive your assets?  What about alternate beneficiaries if your primary beneficiary is not surviving?
  3. The "how" - Determine how you can accomplish your plans - Is a trust appropriate?  Or a Will?
  4. The "who" - Decide upon the key individuals to act in your absence - Who will be the executor, trustee, attorney-in-fact and guardian (as appropriate).

Injunctive Relief for the NFC North title?

 

On my way into work this morning, I caught a radio segment from ESPN's Mike and Mike in the Morning radio show on 1700 The Champ.  The discussion was regarding the NFL's decision to suspend six players for violating the league's policy on anabolic steroids and related substances.  The players are each suspended for the rest of the regular season.  This news is difficult for some fans in our office, including yours truly, since two of these players are defensive tackles Kevin and Pat Williams of the Minnesota Vikings.  The fact that the Vikings just took the lead in their division (NFC North) makes the news even more difficult to bear. 

 

However difficult the ruling is for a fan, there are some interesting legal issues to come out of the story:

1) The Williamses plan to file suits in U.S. District Court for injunctive relief, which if granted, would allow them to play through the season and address the issue after the season.  Generally, to prevail on a temporary injunction, a petitioner must show: 1) that he or she is likely to succeed on the merits of the case, and 2) that there is no other adequate remedy at law.  Whether the Williamses will be able to meet this burden is not clear, but a grant of injunctive relief is rather difficult to obtain.

2) Another remedy for the Williamses includes suing the manufacturer of the weight-loss pills for failure to include on its label the ingredient bumetanide, which is banned by the NFL.  To prevail in this lawsuit, a plaintiff would likely need to show that the manufacturer was negligent in its failure to warn consumers about the included ingredients.  The case would revolve around whether the Williams' harm was foreseeable, and whether inclusion of the ingredents would have been a reasonable method to warn the consumer.  However, this lawsuit would not help the Vikings win the NFC North and make the playoffs.

 

Check back for updates on the fate of the Williamses and the Vikings.

photo on flickr by  funnystrange or funny ha ha