Archive for 'Michael Dorfman'

Federal Court Ruling Diminishes Michigan Property Rights

One of the bedrock principles of Michigan property law is that property held jointly by husband and wife is protected from the claims from one spouse’s creditors. However, a recent federal court ruling has significantly undercut this important property right. In a recent opinion, the Sixth Circuit Court of Appeals (available at http://www.law.justia.com/cases/federal/appellate-courts/ca6/10-1498/11a0580n-06-2011-08-18.html) ruled that [...]

De Facto Corporation Doctrine Also Applies to an LLC

One of the main reasons to establish a corporation is to avoid personal liability for the corporation’s debts.  However, the protection may not be available if there was some defect in the way the corporation was formed, or the corporation had not yet been formed when a contract is signed. In Duray Development, LLC v [...]

Where is your Businesses “Nerve Center”?

The United States Supreme Court recently decided a case that will assist corporations in removing litigation from the often unfriendly confines of state courts to the more neutral federal court system.    Under federal law, a case filed in state court can be removed (transferred) by the party being sued if there is diversity of citizenship, [...]

Don’t Sign the Satisfaction Unless You’re Satisfied

The Michigan Court of Appeals recently reaffirmed the Michigan Common Law that when a plaintiff enters into a release and provides an accord and satisfaction to settle a lawsuit, that if the plaintiff seeks to later repudiate the accord and satisfaction, he or she must return all the money that was paid by the defendant [...]

Is the Other Side Liable for Attorney’s Fees if I Win My Case?

In most countries when a party loses an adversarial proceeding such as a lawsuit, he or she is made to pay for the other party’s costs and attorney’s fees.   However, the United States subscribes to what is in essence a no-fault legal system where both parties pay for their own legal fees and costs despite [...]

What You Need to Know About Severance Agreements

Contrary to popular belief, employers are not obligated to provide severance pay upon an employee’s termination of employment due to a layoff. If an employer does choose to provide severance pay, it should be accompanied by a severance agreement. The most important provisions in a severance agreement are those regarding payment, non-competition, and the release [...]

A Contract Could Effect Damages in a Lawsuit

In a previous article we had examined the fact that the Michigan Court of Appeals affirmed the common law principle that contract provisions that shorten the statutory period for bringing a cause of action are allowable.   Recently, the Court applied similar reasoning in affirming the principle that a contract can even limit the amount of [...]

Don’t Sign Away Unrelated Rights on Release Agreements

In all aspects of business and contracting, but especially after a lawsuit has been filed or threatened, one party may approach the other party with a comprehensive release agreement as part of a settlement of the dispute.     A release agreement is a form of contract wherein the party who has allegedly committed the wrong requests [...]

Settlement Discussions: What You Say Will Not Be Held Against You

An estimated 95% of lawsuits brought in Michigan are settled out-of-court, without ever going to trial.  Trial preparation is expensive and fears of excessive verdicts are a major motivating factor for small businesses to settle matters.  A settlement amount might not always be palatable because it is lower or higher than expectations, but it removes [...]

Forum Selection Clauses

When entering into agreements with larger business entities, whether it be to lease a photocopier or host your website, for example, it is critical that you read the entire agreement, including one possibly costly paragraph – the choice of forum clause. A choice of forum clause binds the parties to litigate the matter in the [...]