Oracle, which designed the Java programming language that is behind Google's large network, claims that Google's use of the programming language infringed its copyright and violated fair use practices. Fair use is a concept used in intellectual property law, which states that people who use copyrighted material for particular purposes, such as news reporting or teaching do not have to obtain consent from its original owner to use it.
]]> The determination of fair use in this case was the next step after a jury had already decided that Google had infringed on Oracle's programming language. If Google's actions were deemed fair use, then it would not be liable for up to $1 billion. The judge in the case, however, ruled against Oracle, saying that it failed to prove that Google had violated fair use policies. While this is a decided win for Google, Oracle is also arguing that Google infringed on two Java patents.Intellectual property is a complicated area of the law, which can present Michigan companies with important legal decisions. This is especially true for companies that are dealing in a high-tech industry and have many new innovations coming out in the marketplace. For those companies, it is recommended that they make sure that any innovation is adequately protected before proceeding.
Source: The Washington Post, "Google could be liable for as much as $1b in Oracle intellectual property case," Karen Gullo, May 9, 2012.
]]>The main reason for these shoreline development restrictions is to make sure the water quality and shoreline habitat remain protected. While some owners may be tempted to put lawns to the shore, these lawns can often cause shorelines to erode. Furthermore, the nutrients from the fertilizer may leak down to the water and prompt excess algae growth.
]]> Shoreline development restrictions can vary from area to area, so it's important to look into the regulations according to local law. There usually is a requirement for undisturbed buffer areas to exist between the condominium and the water, which may need to be anything from 10 to 100 feet, though in some communities it can be more. There may also be building structures that are banned within a certain distance of the shore.There also may be additional rules with using plants in design. Certain regulations may only allow for native plants to be planted within a certain distance of the shoreline. Similarly, removing plants in the buffer zone may be prohibited or restricted, although it may be possible to trim the plants to allow for a better view. Furthermore, Michigan passed a law that prohibits the use of fertilizer containing phosphorous near lakes, and other local laws may further restrict the use of fertilizer.
Condominium development can sometimes seem to be a hassle. However, it is hoped that these rules will only serve to protect the pristine beauty of the lakes. For those who are just starting out in the planning stages, it may be helpful to look over the laws and regulations so that their property will be meet required standards.
Source: White Lake, MI Patch, "Modifying Your Shoreline Property? Check Local Regulations First," Dean Solomon, April 30, 2012
]]>For example, a solar power company that has two-thirds of its workforce based in Michigan is experiencing such a difficulty at the moment. The publicly owned company filed for Chapter 11 in February, causing its stock price to plummet and for NASDAQ to delist it. Subsequently, a shareholder filed suit.
]]> The shareholder in question asserts that the bankruptcy filing was unnecessary and that the company was negligent in its duties to its shareholders when it made the filing. In particular, the suit states that the company had enough liquidity to satisfy current obligations and that the filing was unnecessary. However, this may be a dubious claim. After all, most companies tend to do everything in their power to avoid the stigma that some associate with a bankruptcy filing.When filing for bankruptcy, there are some things that are unavoidable. Here, the fall in the company's stock price was probably an expected development. However, shareholder suits may be unpredictable and not necessarily easy to deal with. Michigan business law, though, affords many protections to the decisions of a board of directors, meaning that shareholders may have a high burden to overcome in showing that a bankruptcy was not necessary.
Source: mlive.com, "Shareholder tries to stop Uni-Solar sale by bankrupt parent Energy Conversion Devices," Garret Ellison, April 29, 2012
]]>After that information became public, SET fired the man. He is now suing the company, claiming that it violated the Michigan Whistleblowers' Protection Act. However, it is not clear that the act is applicable here.
]]> In order for the act to apply, the alleged misconduct must be brought to the attention of a public body, such as the Environmental Protection Agency or another government agency. While the man eventually did this, he initially shared the information with the media instead. As the act does not protect employees when they bring purported evidence of employer misdeeds to the attention of the media, the company may have lawfully fired him.Moreover, SET claims that of the two incidents that the man specifically cites as improper cleanup of an oil spill, one was a mere disagreement while the other may have been a foreman acting outside of his scope of employment. It is also not clear if the EPA believes the supposed improper methods demand action, as SET says it has not heard from them. Nonetheless, as the employment litigation suit now advances through the Michigan court system, many questions may well be raised about whether the Whistleblowers' Protection Act applies to this particular matter.
Source: mlive.com, "Whistleblower lawsuit trial begins for former Kalamazoo River oil spill worker John Bolenbaugh," Fritz Klug, April 18, 2012
]]>Businesses outside of Wall Street and Detroit have received little attention in the media. Some commercial real estate markets have seen a precipitous rise in foreclosures. One state's court records show a marked rise in commercial business foreclosure rates since 2006. The rise in proceedings was attributable to the souring economy in general, causing the commercial real estate market to stumble.
]]> Many reasons were cited for the rise in commercial real estate foreclosures. Tight lending markets and a disorganized refinancing infrastructure were some of the reasons cited. Restrictions on federal loans that withheld mixed-use lending in dense geographic areas were also blamed. The majority of the commercial real-estate foreclosures are said to have affected independent stores.Commercial real estate loans are typically shorter than residential loans, interest accrues faster and the final payment is due sooner. Therefore, non-payment carries with it a much greater underlying risk. Understanding all the laws and regulations that apply to commercial business loans can go a long way toward ensuring that a business stays above water.
Source: Forbes, "That Other Foreclosure Crisis: Commercial Real Estate Teeters," Mark Bergen, April 10, 2012
]]>In this case, Current let Olbermann go in late March, saying that he had missed too many work days in January and February. The TV network also claimed that he did not represent the values of the company. However, Olbermann is now suing Current for breach of contract, sabotage and disparagement. He is seeking tens of millions of dollars that he believes the network owes him in compensation.
]]> In particular, Olbermann stated that the network was unable to provide him with what he needed to run his program. In one incident, he says, the lights went off while the show was airing live. He alleges there were other technical malfunctions as well, ranging from "substandard production quality" to computer failures.Sifting through such employment disputes is not easy, and this case may be made all the more complicated due to its high-profile nature. However, there are steps a Michigan-based company can take that may be able to prevent such disputes from arising to begin with. That is, taking the time to ensure all employment contracts are well written and thorough may save money in litigation costs later on.
However, sometimes it is difficult to prevent an employee from taking legal action, whether or not it is warranted. As this particular matter now moves through the judicial system, it will likely continue to garner media coverage, allowing business owners an in-depth look into how such matters are handled.
Source: The Washington Post, "Keith Olbermann sues Current TV for breach of contract, sabotage, disparagement," Lisa de Moraes, April 5, 2012
]]>On the bright side, the founder of Quicken recently bought multiple downtown buildings, and the company has been moving many of its employees into the area. Moreover, Blue Cross of Michigan is also moving downtown. That has led to increased demand for office space. Yet on the other hand, vacancy rates remain high.
]]> During the last three months of 2011, Detroit had an office vacancy rate of 31.2 percent, which was the highest among the nation's 55 largest retail markets. Occupancy rates for area hotels also only averaged 47.4 percent as recently as year-end 2011. Additionally, although rental apartment buildings may be doing well, that may not be the case with condominiums. One building in Midtown that was built in 2008 had hoped to sell 77 units within three years at most. Four years later, though, only 17 units have been sold.The odd contrast between an area that appears to be booming versus the story that statistics tell may simply mean that the commercial real estate market in Detroit is currently in a transition phase. Development leaders believe that the market is currently in an upswing, and even the owner of the previously mentioned condominium building believes that the future is bright. As the national and local economy begins to improve, hopefully the statistics will catch up with what many people are seeing on the ground.
Source: Detroit Free Press, "Downtown, Midtown Detroit developments are in transition," John Gallagher, March 29, 2012
]]>The patents cover many items that may be familiar to any user of Facebook. For example, one of the patents covers privacy controls. Specifically, Yahoo is claiming that Facebook copied tools that allow users to customize their account settings. At the same time, the patents also cover advertising as well as social networking, which is at the core of the Facebook user experience.
]]> The action comes as Facebook is preparing an initial public stock offering that values the company at about $100 billion. Moreover, it does not appear to be the first time Yahoo has targeted another Internet company just prior to its IPO. In 2004, the company filed a patent infringement suit against Google just before the rival search engine company went public. That lawsuit was settled out of court, reportedly for hundreds of millions of dollars.Companies have a duty to protect their intellectual property, aggressively if need be. In the present case, if the alleged claims of patent infringement are correct, then Facebook and Yahoo may decide to settle the matter outside of court, as Yahoo previously did with Google. Nonetheless, just as Yahoo has a duty to see that its patents are not violated, Facebook has a right to fight back against the allegations if the company believes the allegations to be unfounded. Here in Michigan, businesses frequently face intellectual property issues, whether it regards copyright of marketing materials or patenting a unique business process. Ensuring that these rights are not violated may be as simple as writing a letter ordering a company to cease using certain practices, but court action may certainly be necessary in some cases.
Source: Detroit Free Press, "Yahoo sues Facebook over patents," Barbara Ortutay, March 12, 2012
]]>Filed on March 14, the suit claims specifically that the linings of fuel tanks on 10 E- and F- series truck models were defective in models made from 1999 to 2008. It further claims that Ford knew of the defect, and even sent a purported "secret" notice to dealers explaining the issue. The plaintiffs are seeking class-action status.
]]> Here, the alleged defect is that the lining of the fuel tank can begin to flake off. This allegedly causes problems as it can clog the fuel systems, which can in turn cause the vehicle to come to a sudden halt or to kick unexpectedly. Yet it may not be entirely clear that Ford had knowledge of the defect for most of the time the trucks supposedly had this problem. That is, the "secret" bulletin was apparently not issued until 2007.Despite these claims, the F- series truck is the best-selling car or truck in the United States. Yet according to the plaintiffs, only hundreds and maybe thousands of owners experienced the problem. Situations like this can be hurtful to reputable businesses like Ford. However, just because a problem is complex, doesn't mean there isn't a solution. As the lawsuit moves forward, it may be worth watching here in Michigan for its business law implications.
Source: Reuters, "Ford sued, said to hide truck fuel tank defect," Jonathan Stempel, March 15, 2012
]]>The restaurant in question is owned and operated not only by Paula Deen but also by her brother Bubba Hiers. The woman who is filing the lawsuit was promoted to general manager in 2005 just months after she was hired. However, she is now claiming that Hiers routinely sexually harassed her throughout her five years at the restaurant.
]]> For example, she says that she shared a small office with Hiers and that he would watch pornography in the office. In another alleged incident, Hiers purportedly distributed inappropriate, sexual pictures of women in an office meeting. She says that she finally left in 2010 after Hiers screamed and spit in her face. Moreover, she makes the further claim that black employees were mistreated and forced to use a back entrance.Employment litigation suits are rarely cut-and-dry matters. However, mere allegations can tarnish the reputation of a business. Nonetheless, Michigan businesses should have procedures in place to deal with possible employee misconduct so that they can ensure a reasonable work environment and avoid such lawsuits of their own.
Source: New York Daily News, "Paula Deen named in racial, sexual harassment suit," March 6, 2012
]]>The emergency manager acted under Public Act 4, which authorizes emergency managers who run districts in trouble to alter or even cancel existing contracts, and it also permits the firing of elected officials. The employment litigation detailed that that the actions of the emergency manager withheld approximately $81 million in pay and benefits from employees.
]]> The settlement covers approximately 8,000 employees and makes up for some of the 10 percent salary cut previously imposed. It includes a 2.5 percent pay bonus for 2011-12 earnings, the restoration of salary increases, any pay lost for preparation periods as well as a retirement incentive. Top-earning DPS secretaries earn approximately $28,000 per year, while teacher's aides at the high end of the pay scale earn about $15,000 per year.The DPS emergency manager noted he is not interested in using his power to harm to the district and its employees. Rather he wants to improve the finances of the district for which he is responsible. He acknowledged that the terms covered by the employment litigation settlement are the right thing to do. Further, he expected the agreement would give all parties a clean slate and allow them to move forward collectively.
This employment litigation dispute resulted in a settlement that returned some $30 million to the affected employees. The Detroit Public School's union contract is due to end in June, which is also when the settlement expires. It remains to be seen how these parties will negotiate their differences going forward, though the case underscores the fact that courts treat employment disputes very seriously, particularly those involving so many workers. Businesses in the area may want to take note of this case. Often the best way to avoid litigation is to have the proper paperwork and comprehensive contracts in place. Experienced business law attorneys may be helpful in determining if your paperwork is up to date.
Source: Detroit Free Press, "Settlement in emergency manager lawsuit to restore some pay to Detroit schools workers," Chastity Pratt Dawsey, March 1, 2012
]]>State Street was hired in 2006 and acted as independent fiduciary for GM stock in the company's two 401(k) plans. Plaintiffs assert they had between $1.45 billion and $1.9 billion in GM stock during the period prior to the bankruptcy filing, and that State Street failed in its duty to sell the stock before the price bottomed out. But the 6th Circuit U.S. Court of Appeals disagreed with the lower court ruling, holding that State Street could not avoid liability simply by claiming that plaintiffs had the option to choose other stock within the investment options for the plans and could simply have avoided investment in the General Motors common stock fund.
]]> It is not known how much money plaintiffs lost in their investments, but based upon the class-action lawsuit, the number is likely substantial. Detroit-based General Motors is not a party to the lawsuit and indeed is operating under a new corporate identity after its bankruptcy reorganization in 2009. State Street recently countered that it acted within the boundaries of the law and fulfilled its obligation as a fiduciary.While it remains to be seen what the result of this business law litigation will be, both sides undoubtedly will rely on experienced professional advice in advancing their arguments and seeking an equitable resolution.
Source: Pensions & Investments, "Appellate court reinstates GM company stock suit," Barry Burr, Feb
]]>The lenders are reportedly negotiating a massive settlement to conclude all of the investigations and potential business litigation pending in the offices of each state attorney general, with the future possibility of including smaller banks in the agreement as well. Some states appear to be holding out for terms that would provide for the possibility of bringing further litigation against the lenders at a future time.
]]> Other pending litigation involves investment disputes for damages that were triggered by investors who requested refunds after finding flaws in the underwriting of mortgages they purchased. They claim to have discovered false data about home values and borrower incomes in purchased loans. These sales came with promises to buy back defective loans in the event misleading data was uncovered.Any time there is a concern over the legitimacy of a contract or commercial transaction in Detroit or elsewhere, there is a potential for business litigation. In this circumstance, the projected settlement may reach upwards of $25 billion, a figure that is in addition to the costs already incurred. But the quicker a resolution can be reached, the quicker lenders will have a better handle on the overall cost. Other Detroit businesses that are facing accusations of illegitimate practices may find it helpful to speak with an experienced attorney.
Source: Bloomberg News, "Faulty loans, foreclosures cost $72 billion," Donal Griffin, Feb. 9, 2012
]]>When the business closed down, the commercial real estate building began to attract intruders and was said to have become somewhat of a nuisance to the county. The Macomb County executive is urging the Board of Commissioners to put the property up for sale or tear it down. . Both options appear to be viable and the county's recommendations have been taken under advisement.
]]> The meeting at which the fate of the building was discussed began with presentation by an equipment maintenance company. Closed-door discussions involved a memo from the county's lawyer about the building, though the details were not disclosed. While the building was not claimed to be in violation of any city ordinances, concern was voiced that it is likely a haven for intruders, making it a headache for city officials.A decision about the fate of the Michigan building is pending but may not be forthcoming very soon. A member of the Board of Commissioners stated that it was unclear when action on the building would be taken. It will be interesting to see what the county decides to do with the property.
Source: The Detroit News, "Macomb committee takes no action on vacant building," Charles E. Ramirez, Feb. 8, 2012
]]>When the customer agreed to pay or even made a promise to pay the debts, they may have unwittingly reset the clock on the statute of limitations on their debt. The government also alleges that Asset did not investigate people's claims that they didn't owe the debt or were the victim of identity theft as well as consumer claims that the debt had already been paid. Asset is also accused of reporting negative information to credit bureaus about consumers even with the knowledge that a debtor had not received a notice of fact. Consumers sometimes only learned that Asset had reported them when they applied for a loan.
]]> The settlement ended with Asset Acceptance resolving the FTC investigation against them without admitting to any type of wrongdoing. The CEO of Asset is pleased that the settlement is over and believes that the agreement will give Asset a transparency in their practices that was missing before. He continued by saying that many of the requirements in the settlement have already been implemented and welcomes the opportunity to work with the FTC so that their new practices will become the new standards in the debt collection process.The outcome of this case allowed Asset to continue the practice of debt collection and make changes to benefit consumers all without admitting any wrongdoing on their part. When businesses are accused of unlawful practices, speaking to an experienced attorney may be beneficial.
Source: The Detroit News, "Warren company settles federal suit over 'zombie' debts," David Shepardson, Jan. 31, 2012
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