Posts Tagged Massachusetts
While you were married, you and your ex were running a family business together. You win the business in your divorce, but your ex now opens a competing business right next door and is siphoning away customers from you.
Sound like an episode of Two and a Half Men? What’s a business owner to do?
Well according to a recent Massachusetts decision, a Probate Court judge can order the ex-spouse to not compete against you.
Here’s what happened: a husband and wife ran a feed and grain store while they were married. The wife’s a veterinarian. In their divorce, the judge awards the business solely to the husband.
The story gets a little sketchy from there: the trial judge found that the husband’s landlord then evicted his business from the premises. Then, the wife, with the help of her parents, opened up a competing feed and grain store in the exact same location.
In the divorce, the husband asked the judge to prohibit his ex-wife from running the competing business arguing that the value of the family business awarded to him was being diminished by the ex-wife’s activities. But, the judge refused the request.
The Appeals Court cried “foul!” They held that a divorce court judge can order an ex to not compete in the family business. The reasoning has to do with the ‘good will’ of the business which is considered a valuable asset in the going concern. If the judge awards a family business to one spouse, then the judge can make an order that will protect the value of that business by prohibiting the other spouse from directly competing against it – a non-compete agreement.
Of course, such an order has to be reasonable and no broader than necessary to protect the good will, which means that the non-compete can’t be so strict and over reaching that it prohibits the ex from making a living.
This case is a first of its kind in Massachusetts and some divorce lawyers find the decision shocking. However, if you’re awarded the family business in a divorce, you’ll be happy to know that it’s possible to prevent the ex from opening up right next door to you.
28 Ventura Drive, North Dartmouth, Massachusetts | 508-998-9820 |
In 2011 APC Autobody Celebrated 20 years in business repairing vehicles to pre-accident condition. They serve the consumer directly and deal with all the major carriers on their behalf. Customer satisfaction is their number one goal, and they will work tirelessly to ensure satisfied customers.
We asked Al Correia, Owner, a few questions about his business as well as his relationship with Phillips|Garcia Law.
How did you get into this type of work? I began my automotive career working in a neighbor’s garage learning how to repair cars. When I realized I had a special talent for this type of work, I went to work at a modern repair shop. Soon after I knew I wanted to open and operate my own facility.
What do you like about being in business for yourself? I like being in control of my personal and business future, making decisions that are best for me, my employees, and my customers.
What challenges do you face as a small biz owners? Politics, Taxes, and Red Tape. We do our best to run a clean and efficient operation, to be proactive rather than reactive, and to make sure everything is done correctly including paperwork.
How has Phillips|Garcia Law helped? P&G helps us maintain a healthy business. This includes any State or Federal filings, setting up new corporations, researching land we may want to purchase, and or course litigation if required. They have been a full service legal resource for APC.
If you would like contact Phillips|Garcia Law send us and email at email@example.com or fill out a contact form on our firm page. www.PhillipsGarcia.com
- January Business Client Spotlight: Bay State Gymnastics Academy (onesmartbizowner.wordpress.com)
Andrew Garcia of Phillips Garcia Law explains the importance of understanding the Franchise Disclosure Document when purchasing a franchise. If you would like to learn more about legal documents and business law contact Andrew, visit our website at www.phillipsgarcia.com or call us toll free at 888-449-5343.
- Four Steps To Becoming A Franchise (businessinsider.com)
Before the end of 2011, 20% of judges in the Massachusetts Probate Court will be stepping down. Massachusetts Lawyers Weekly reports.
So what does this mean for my business?
With significantly less Probate Court judges, the Probate process will slow down dramatically, leaving your business in probate, following your death, for an extended period of time and in the hands of the remaining overwhelmed judges.
How do I pass down my business without being affected by the Probate Court?
Set up a Trust! Setting up a trust is the safest way to make sure your business is passed on in an orderly fashion.
Why a Trust and not a Will?
A Will “comes to life” when you die and passes your business on through the Probate Court System. A Trust, or “living trust,” “comes to life” when still alive and after your death while avoiding Probate Court.
Who can help me set up a trust to protect my business? We can! At Phillips Garcia Law we specialize in protecting business owners by helping them legally pass down their business in the safest and most precise way possible. Contact us using the Contact Form, call us at 508-998-0800, or email us at firstname.lastname@example.org. As always, you can find out more information on protecting your family and creating Trusts at our website, www.phillipsgarcia.com.
A Massachusetts judge found that a Boston business violated the Massachusetts wage law when it deducted money from an employee’s weekly paycheck for a retirement contribution but then never deposited the wages into a retirement account. The judge then awarded triple damages of $25,814 plus attorney’s fees to be paid to the employee.
The Boston real estate investment and development company had promised its employee that it would set up a retirement account into which the employee could make contributions. In December 2005, the employer began deducting money from the employee’s weekly paychecks. These deductions went on for at least two years.
During those next two years, the employee made inquiries about the status of his retirement account and his funds, but the employer’s administrators ignored him. The judge found that the employer never bothered getting around to setting up the account and instead withheld the money. The amount of the weekly deductions over this time frame was $8,604.80.
Sometime in the Spring of 2009, the company offered the employee a check for the $8,604, but as a condition for the money, the employee was to release any claims. The employee refused and then filed the lawsuit alleging that by withholding the money from his paycheck but not putting it into a retirement account, as promised, was a violation of the Massachusetts Wage law.
There are lessons to be learned by all Massachusetts business owners by this case:
First, the Wage Act states that an employer must pay an employee his wages within six days of the ending of the pay period during which those wages were earned. So, for example, if a weekly pay period is Monday through Saturday, then an employee must receive his wages by the following Friday. In this case, by withholding weekly deductions from its employee and not putting them into a retirement account as promised, the judge found the employer had failed to pay its employee within the six-day time period allowed under the law.
Second, the Wage Act has very harsh penalties. Under the version of the Wage law adopted in July 2008, when an employee proves that the employer violated this section of the Act, then the court must award triple damages. It is mandatory. And, the employee is entitled to recover his attorney’s fees and expenses. So, in this case the judge multiplied the employee’s back wages of $8,604 by three and ordered damages of $25,814. The judge also allowed the employee to seek an award of his attorney’s fees and costs (that amount had not been decided as of the publication of this news story).
If you would like to learn more about Massachusetts Wage laws and your responsibility as a business owner, contact us at 508-998-0800 or email me at email@example.com. As always you can find out more at our website www.phillipsgarcia.com or scan the code above.
Massachusetts Attorney General, Martha Coakley, recently released a report following a review of the National Association of Insurance Commissioners (NAIC) and Automobile Insurers Bureau (AIB) stating that, since 2004, business owners have overpaid by $1 Billion for commercial auto-insurance. The statement followed a review by the Attorney General‘s office in which she responded with:
“These inflated commercial auto premiums impact virtually every industry in Massachusetts – from manufacturing, trucking, and construction to sales and services. The added costs limit the ability of businesses to invest in Massachusetts and cost Massachusetts residents thousands of jobs. The problem is especially acute for small businesses, who ability to create jobs is impaired by excessive rates.”
The report also narrowed down the dramatic sum to a yearly commercial auto-insurance overcharge of nearly $150 million, dating back to 2004, in which rates were high by at least 21.6%.
This stunning report proves that not only are Insurance Companies overcharging but many business owners are accepting this and choosing the wrong plans without learning the facts. Phillips & Garcia Law offers an extremely helpful Free Book on Auto Insurance which can help your business choose the correct and financially reasonable plan.
Local Dartmouth Ma. lawyer Andrew Garcia of Phillips & Garcia Law is currently flying over the continental United States on his way to California Federal Court to take on the largest American bank, Bank of America. Andrew’s trip is for a widely publicized illegal lock-out and trash-out case.
You can follow Andrew for updates on twitter.
Check out earlier discussions about illegal lockout and trash-out cases with Phillips & Garcia featured on the Today Show and Countdown with Keith Olbermann.
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