They stopped paying so can I pick up my items now?

This is the question:

I live in PA. and I have entered into a contract with another party. I retain ownership of a piece of equipment as it is in my name. The equipment is in physical possession of the other party in the contract. We have each signed a legal contract stating that the other party will pay stated amount of money by a certain date every month. However there was nothing put into the contract regarding what would happen if the party failed to pay either the amount agreed upon or the due date to be paid. My question is this, because the equipment is still in my name do I have the right to go and remove the said equipment because the othewr party has breached the contract.

This is my answer:

Unfortunately, no, you cannot enter someone else’s property and remove any property without his/her permission.  To recover the property, you need to file a lawsuit for breach of contact, and repossession of the property.  Because your contract does not specify what happens when one party fails to pay as promised, case law tells us what to do.  In this case, you are entitled to money damages equal to the entire contract or you can recover the equipment. If you contract allows you to recover attorney and court fees, you can add this figure to your damages. Once you have a judgment, then you must file a Writ of Execution to recover the equipment. Depending on your county, you will need to hire the Sheriff to visit the property to recover the equipment. I recommend talking to a lawyer before you act; otherwise you may be liable for trespass.

The Best Celebrity Lawsuits of 2011

In honor of the New Year, I am posting an article from The Hollywood Reporter. This is a list of the most outrageous celebrity lawsuits of 2011.  Some of my favorites:

  1. The $1 trillion dollar lawsuit against Oprah for stealing the plaintiff’s poet
  2. The lawsuit against Michael Jordan because he looks like the plaintiff.
  3. The lawsuit against Budweiser for falsely advertising that its beer will cause endless merriment with beautiful women.

 Read the entire article and view the photo gallery here.

20 years to sue for breach of contract?

In Pennsylvania, the statute of limitations to sue for breach of contract is 4 years. But a new case was decided by the Superior Court that may extend your time to sue by 20 years.1.

How? Merely add the word “seal” next to the signature, and your contract becomes a Sealed Instrument.  Under Pennslvania statute, a party must bring a lawsuit for breach of a sealed contact within 20 years.2.

________________
1. Osprey Portfolio v. Izett No. 513 EDA 2011 (November 2011).
2. 42 Pa. C.S. 5529(b)(1).

Spike Lee makes more money overseas: understanding breach of contracts

A French court awarded Spike Lee $46 million for a breach of contract.  In 2007, Lee and TF1 Droits Audiovisuels executed a contract where TF1 agreed to distribute Lee’s film “Miracle at St. Anna” worldwide, except in the U.S., Canada, and Italy.  When TF1 failed to honor it’s promises, Lee sued.  Even though TF1 claimed that they could not distribute the film because Lee failed to deliver the film, the court did not agree.  In the end, the court ruled that TF1 was at fault for breaching the agreement,
and ordered TF1 to pay $46 million in Euros to the film’s producers.
Lee will collect $1.5 million of the judgment.

The film is about the story of four black American soldiers who get trapped in an Italian village during WWII.  The movie is based on a book written by James McBride, which tells the untold story of African American’s contributions in WWII.  In the U.S., the film grossed $7 million but cost $45 million to make.

This award is a relief for Lee because reportedly, he is having trouble
finding financing to produce Inside Man 2.

What can you, as a business owner, learn from Lee’s lawsuit?  When deciding to execute an agreement, examine contract laws from other countries.  In the U.S., no state allows recovery for moral prejudice.*  However, in France, this is a valid cause of action.

 

*I am only licensed in  Pennsylvania, so I can only attest to Pennsylvania’s contract law.  Nevertheless, I have colleagues in other jurisdictions; I have never heard of a claim for moral violations.  If I am wrong, please post a comment.
Has someone breached or violated your agreement? Call us for a free
consultation. Sharmil McKee @ 215-242-5260.

 

~~~~~~~~~~~

Sharmil McKee

Business Attorney

Philadelphia, PA

http://blog.mckeeoffice.com

 

 

 

 

Indie Writer sues Twilight: copyrights and takedown violations

What happens if you demand that a website take down some copyright material, but it turns out that you don’t actually own the material?  Well, Summit Entertainment may soon find out.  Summit distributes the Twilight series.  They successful got songwriter Matt Heart’s song “Eternal Knight” kicked off YouTube, iTunes, and Amazon, claiming the song improperly copied the Twilight intellectual property.  This story is interesting because Heart produced the song  before the Twilight movie came out.  The story is also interesting because Summit is only claiming that Heart violated Twilight’s trademark; however, You Tube, Amazon, and iTunes’ ‘take down’ procedure only refers to copyright infringement. In this case, Heart’s CD cover states “inspired by Twilight”.  This only appears to violate Summit’s trademark, not their copyright. (What is the difference between trademarks and copyrights)

So, Heart believes that Summit misled YouTube, Amazon, and iTunes about the extent of their intellectual property rights; thus he is suing Summit for $75,000.  Summit is very aggressive about protecting its property; some retailers have filed lawsuits to protect themselves from Summit.

Summit should be concerned. If someone demands that a website takes down infringing material, but misrepresents the extent of their ownership or rights, under the Copyright Law, the innocent party is entitled to cost and attorney fees.

Sharmil McKee
Business Lawyer
Philadelphia, Pennsylvania
blog@mckeeoffice.com

Bishop Long’s Sex Assault Lawsuit: will he lose?

Last week, Bishop Eddie Long of New Birth Baptist Church in Atlanta Georgia was accused of sexually assaulting four 17-year old males that attended the church.  What to do if your church’s leader is accused in civil court of committing sexual assault?  Because the priest, bishop, reverend or pastor is the leader of your organization, the organization has an interest in the outcome of this case. First step, don’t panic.  Because someone has filed a lawsuit against you, does not mean the allegations are true or that the plaintiff will prevail in court. Second step, hire an attorney to analyze and review the complaint.  Your attorney’s job will be to address the claim, one by one, and discuss the claim’s likelihood of success.  I will use Bishop Long’s complaint as an example of this analysis.  You can read the lawsuit here.

 Vicarious Liability

Vicarious liability in Pennsylvania means the employer shares liability for the negligent acts of his employee which cause injuries to a third party, provided that such acts were committed during the course of and within the scope of the employment.  This claim is not likely to prevail because clearly  sexual assault is outside the scope of the Bishop’s duties as it pertains to the organization’s published mission statement.

 Negligent Hiring

Negligent hiring in Pennsylvania means an employer is responsible for harm resulting from employing an improper person in work involving a risk of harm to others, or improperly supervising the employee, or permitting or failing to prevent his employees from tortuous conduct upon the premises under the employer’s control.  To win, the plaintiff must prove that the organization has evidence or proof that the bishop was or is likely to become a sexual predator when he was hired. What kind of evidence would suffice? A criminal record, or a report from his former employer, or complaints from your members.  In addition, the sexual assault must have occurred on the church’s property. Without this kind of evidence, the claim is likely to fail. 

 Negligence Per Se

Negligence Per Se in Pennsylvania means that the defendant violated a specific statute and this violation injured the plaintiff.  In the Bishop Long case, the plaintiff cites to a confidential relationship statue.  But that statute merely defines a confidential relationship; it does not create a duty to act.  The statue limits itself to a fiduciary relationship created by contract or by law.  In Pennsylvania, there is no law that prohibits a preacher from having sex with his parishioner (in comparison, consider the law prohibiting an attorney from having sex with his client).  Thus this claim will probably fail because it is not specific enough.

 Intentional Infliction of Emotional Distress

 Intentional Infliction of Emotional Distress means the defendant’s conduct was so outrageous and extreme, that the plaintiff suffered emotional distress.  In Pennsylvania, the law requires the plaintiff to suffer a severe medical injury as a result of the defendant’s actions. The complaint does not specifically list the plaintiff’s medical injuries, so this claim will probably fail because it is not specific enough.

 Breach of Fiduciary Duty

 A fiduciary duty is an obligation to act in the best interest of another party. Pennsylvania recognizes that a fiduciary duty can exists between a priest and his parishioners.  However, this duty does not develop when the plaintiff is merely a member of the church. The relationship must rise to one of special dealings giving one side an unequal influence and the other side weakness and dependence. The court will examine the nature of the relationship between the plaintiff and defendant to determine if a fiduciary duty existed.  The relationship must not be too general in nature.  It must rise to a higher level of association, like counselor-patient, clergy-penitent.   The federal courts have refused to find a cause of action based merely on the relationship between parishioner and clergy.  The basis of this refusal is the First Amendment.  But some federal courts have permitted a breach of fiduciary duty claim where the plaintiff received counseling or participated in church-sponsored activities.  When the plaintiff is a child, the disparity between the plaintiff and the priest is more obvious.  However, when the plaintiff is an adult, the age disparity does not automatically lend to a finding of fiduciary duty. 

The First Amendment claim is also a powerful shield.  Many state courts, including Pennsylvania, have ruled that a breach of fiduciary duty claim based on the priest’s failure to adhere to the church’s canon is precluded by the First Amendment.  To prove its theory, plaintiff would necessarily involve excessive governmental entanglement with religion.  The court or jury would have to inquire into the propriety of the church’s decisions, matters of discipline, internal organization, ecclesiastical rule and custom.  Such an inquiry would violate the First Amendment.  The law does not recognize clergy malpractice for the same reason.  So, this breach of fiduciary duty claim against Bishop Long probably will not prevail, unless plaintiff received counseling and participated in church-sponsored activities.

Sharmil McKee  |  Business Attorney  |  blog@mckeeoffice.com

Webinar: Learn how to take down counterfeiters

Monster Cable shares their 11 point strategy for success
Tuesday September 28, 2010 at 1:00 PM EDT/10:00 AM PDT
This webinar is free

Event Description:

Counterfeit sales are now estimated to be a $600 billion a year problem. The problem is well-established in physical channels, but online channels are a growing concern for brands as it’s easier than ever for counterfeiters to capitalize on online auctions, B2B exchanges, and eCommerce sites.

At Monster Cable, as demand for their state-of-the-art cables and audio accessories soared, counterfeiters found the company’s strong brand to be a lucrative lure. Monster Cable decided to fight back, implementing a holistic, global strategy to take counterfeiters down—online and offline.

Dave Tognotti, General Counsel at Monster Cable, will explain how he successfully spearheaded a worldwide anti-counterfeiting program designed to combat counterfeiters wherever they lurked.

In this informative one-hour webinar, Dave will share his strategies for beating back counterfeiters—online & offline—including:

  • His 11 point strategy for choking off the distribution—and promotion—of fake goods
  • How he and his team coordinate with law enforcement and line-of-business teams to gain global visibility and take swift action
  • How he cost-efficiently fights counterfeiters by using online intelligence to pinpoint the source of fake goods—no matter where they may be located
  • His success to date: from factory raids to delisting fake goods on auction, B2B exchange & eCommerce sites

Featured Presenters:

Dave Tognotti
General Manager, Vice President of Operations, and General Counsel
Monster Cable Products, Inc.

Mr. Tognotti is responsible for the management of corporate planning and strategy, operations, corporate governance, legal affairs, external affairs, human resources, staffing, information technology, facilities, travel, and real estate of Monster worldwide. He serves as a corporate director of Monster Cable Products, Inc. and several of the company’s subsidiaries.

Teresa Chen
Sr. Manager, Product Marketing
MarkMonitor, Inc. Teresa Chen is a Senior Manager of Product Marketing for the MarkMonitor Brand Protection™ solution. She has over 10 years of product marketing and product management experience from the Internet, security and consumer electronics industries. Teresa earned her MBA from Santa Clara University and her BSE from University of Michigan, Ann Arbor.

To register, click here.