In a recent opinion, the Third Circuit ruled that an arbitrator, not a state or federal judge, should decide claims raised by workers alleging that they were mischaracterized as “independent contractors” in violation of the New Jersey Wage Payment Law (“WPL”), N.J.S.A. § 34:11-4.1 et seq.
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PPP Loan Forgiveness Application Released
The Small Business Administration (SBA) recently published the borrower application to request loan forgiveness for a Paycheck Protection Program loan (PPP Loan). The form and instructions inform Borrowers how to apply for forgiveness of their PPP Loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
Borrowers can apply for forgiveness at the conclusion of the eight-week covered period, which begins with the disbursement of their loans. Borrowers can find the PPP loan forgiveness application here and submit it to their Lender.
New Guidance Posted Regarding PPP Loan Certification
On April 23, 2020, the Small Business Administration (“SBA”) posted FAQ #31 concerning the Paycheck Protection Program (“PPP”), stating in relevant part that borrowers should review their application to assess their economic need for a PPP loan. Specifically, borrowers should determine if in good faith they can make the certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”
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Construction Contracts During a Pandemic
In the current economic climate, due to the pandemic that has enveloped our nation, a contractor needs to make certain that the contractual terms of a construction contract properly address the issues which they might face during this highly unusual situation.
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Color Combination and Design on Product Packaging Can Function as a a Trademark Federal Circuit Says
Trademarks serve as source indicators for distinguishing the goods sold by different manufacturers. Trade dress, a “symbol” or “device” by which the goods of a manufacturer may be distinguished from the goods of others, is registrable as a trademark if its function is to identify the source of the goods. Trade dress may be the total image of a product and may include features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques.
Continue Reading Color Combination and Design on Product Packaging Can Function as a a Trademark Federal Circuit Says
Where There Is No Will, There Is A Way: Willfulness Not A Requirement for Lanham Act Disgorgement of Profit Damages
In cases of trademark infringement, it has long been debated whether infringers should be required to disgorge profits if they unknowingly violated intellectual property laws.
For decades, there was a wide variance on whether a trademark owner would be able to recover profits in litigation. While the Lanham Act (1946), the guiding trademark legislation, states that profits could be awarded “subject to the principles of equity,” there has not been consensus on how that should be applied. One particular sticking point?
Willfulness, or the voluntary, intentional violation of a known legal duty.
But last week, the Supreme Court provided much-needed clarity on this topic for courts, attorneys, and business owners when it ruled in favor of Romag Fasteners against Fossil Inc. The U.S. Supreme Court handed down a ruling on trademark infringement, stating that infringers can, in fact, be made to hand over profits to a brand owner even when the infringers have not willfully violated the law.
Hair Cuttery Enters Chapter 11 Bankruptcy – Seeks to Trim 49 Locations
Government orders directing the shut-down of non-essential retailers, as a result of COVID-19, have forced another retail chain into bankruptcy. Creative Hairdressers, Inc. (“Creative”), the parent of Hair Cuttery, filed for Chapter 11 relief yesterday in the bankruptcy court for the District of Maryland. According to its first day filings, Creative is one of the largest independent, family owned chain of hair salons that provides comprehensive services for men and women.
Continue Reading Hair Cuttery Enters Chapter 11 Bankruptcy – Seeks to Trim 49 Locations
Paycheck Protection Program Update: More Relief Money on the Way for Small Businesses
UPDATED on 4/24/2020
On April 23, 2020 Congress passed the Paycheck Protection Program and Healthcare Enhancement Act to provide an additional $310 billion for the Small Business Administration (SBA) Paycheck Protection Program (PPP).
Watch out for Coronavirus Scams
Like most trying times, the Coronavirus brings out the best and worst. Unfortunately, criminals are targeting the federal stimulus money that has been distributed to qualified Americans. According to the FBI, scammers are leveraging the COVID-19 pandemic to steal victim’s money and personal information. There has been an alarming surge in the number of scam phone calls, text messages, social media scams, and emails. The FBI is receiving between 3,000 and 4,000, complaints a day through its internet portal.
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Coronavirus is Likely to Affect Business Valuations in Business Divorce Litigation
As I’ve stated in previous blog postings, business divorce or oppression cases usually end with one side buying the other out. Hence, valuation of the subject company is often one of the central issues in the case. Clearly, the coronavirus has negatively impacted a lot of closely held companies. Coronavirus has and will likely affect the valuation of the small businesses that are often ripe for disputes between the shareholders, partners, or members.
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