May 7, 2008

Students' Personal Injuries: Lawsuits & Settlements with Schools

A study entitled Legal Liability: The Consequences of School Injury in the Journal of School Health, May 2007, Vol. 77, No. 5, (Abstract only) examined cases involving schools, lawsuits, and injuries. Schools paid awards about 2/3 of the time, either by verdict (26.8%) or settlement (40.4%). The average case lasted just under 4 years from the time of injury to the case’s resolution by trial or settlement. Surprisingly, they found it difficult to predict the cases resulting in an award, stating: “this study found no difference on any case characteristics between cases that resulted in awards and those that did not.”

They authors concluded,

Many of the injuries documented in this study may have been prevented through better maintenance of school facilities, equipment and playing fields; addition of safety features and equipment; improved supervision of students; education of school officials, students, and parents; and enforcement of building codes and rules, especially during sports and recreational activity.
Award Range: $1 to $15,398,762; Mean: $562,915; Median: $50,000; 25th percentile: $9,750; and 75th percentile: $300,000.
May 6, 2008

Could your Massachusetts Business Be Facing Triple Damages From Making These Mistakes and Misusing the Label "Independent Contractor"?

Massachusetts Independent Contractor Law: Attorney General Guidelines and Three Prong Test for Independent Contractors

The Massachusetts Office of the Attorney General has issued an Advisory regarding M.G.L. c. 149, s. 148B, to provide “guidance” on the Massachusetts Independent Contractor Law or the Massachusetts Misclassification Law.

Under M.G.L. c. 149, s. 148B(d), an employer violates the law when two acts occur.

1. An employer classifies or treats an individual other than as an employee and the worker fails to meet the following three prong test (each is required for an individual or independent contractor to be classified other than as an employee): a. Is the individual free from control and direction in connection with the performance and service, both under his contract for the performance of service and in fact?

b. Are the services the individual performs outside the usual course of business of the employer?

c. Is the individual customarily engaged in an independently established trade, occupation, profession or business of the same nature as that involved in the service performed?

2. In receiving services from the individual, the employer violates one or more of the following:

a. The wage and hour laws set forth in M.G.L. c. 149.

b. The minimum wage law set out in M.G.L. c. 151, s. 1A, 1B, and 19; 455 CMR 2.01, et seq.

c. The overtime law set forth in M.G.L. c. 151, s. 1, 1A, 1B, and 19.

d. The law requiring employers to keep true and accurate employee payroll records, and to furnish the records to the Attorney General upon request as required by M.G.L. c. 151, s. 15.

e. Provisions requiring employers to take and pay over withholding taxes on employee wages. M.G.L. c. 62B. (purposes of income tax withholding, M.G.L. c. 62B provides a definition of employee that differs from the three prong test in M.G.L. c. 149, s. 148B.)

f. The worker’s compensation provisions punishing knowing misclassification of an employee. M.G.L. c. 152, s. 14.

The advisory arrives at a time when employer liability concerns in Massachusetts' employment matters are growing. See my prior post, New Massachusetts Wage and Employment Law: Tougher on Employers, Better for Employees and Unions, on this topic and a May 6, 2008 email/MCLE Press Release stating,

Just two weeks ago, legislation mandating treble damages for prevailing wage-and-hour plaintiffs was passed, considerably raising the stakes for independent contractor classification and other wage and hour issues. See 2008 Mass. Acts c. 80 (formerly Mass. Senate Bill No. 1059). The new law will be effective July 13, 2008.

With the potential for treble (triple) damages around the corner, now is a good time for all businesses to review both their employment and independent contractor agreements and practices.

May 6, 2008

Massachusetts Public Records Law Resource

Public records can be helpful in government matters but also for business purposes, in automobile and personal injury cases, or many others types of litigation.

People sometime ask, "How do I get a copy of a local government record?" In Massachusetts, the Secretary of State has published A Guide to the Massachusetts Public Records Law, updated January 2008.

Records are presumed public unless they fall under one of sixteen exclusions, but fees may be charged to obtain them.

The difference between the federal Freedom of Information Act (FOIA) and the Massachusetts Public Records Law is FOIA applies to federal records while the Massachusetts Public Records Law applies to state and local records.

May 4, 2008

Is your Massachusetts business ready for electronic evidence issues if you get sued or become involved in a lawsuit?

Lawyers are generally aware of changes in court rules that deal with electronic evidence, but many small businesses don’t have inside counsel or general counsel available to them who can keep them apprised of what to do and also, what not to do. An article in Law Technology Today: March/April 2008, “Are You Litigation Ready?” by Matthew W. Blake, found,

Most American corporations are ill-prepared to respond to electronic discovery requests and go to court. … In a survey of more than 100 information technology managers in medium and large American corporations, only 6 percent said they “immediately and confidently” can field electronic discovery requests. Just 9 percent told pollsters they receive proper legal guidance and funding for electronic discovery procedures; 40 percent said they receive no guidance at all. Fewer than half feel they have IT professionals competent to testify in court regarding electronically stored information (ESI). More than half said their companies have no enterprise search tools. Three-fourths lack effective e-mail intelligence systems.

Blake recommends taking these three steps: Assess What You Have; Map Out Your Data; and Strengthen Your “Hold” on the Data Giant

He argues failure to take these steps can lead to increased future litigation costs. I agree and would add that failure to take the right steps could also lead to sanctions, fees, and liability in matters that were not handled the way they should have been. Is your Massachusetts business ready for these issues if you were sued today? Do you have a lawyer who understands litigation, local rules of court, and can advise your managers and IT staff on what to do to protect your business interests? As the saying goes, "forewarned is forearmed."

May 2, 2008

Massachusetts Incarceration, Education, and Solutions

Currently, I’m in the process of reviewing Weymouth’s annual budget (around 150 million dollars). The proposed budget would eliminate over twenty positions from the school department’s budget, never mind police and other town services that are being impacted in these tough fiscal times.

David W. White Jr., President of the Massachusetts Bar Association asks,

And what is it about our priorities that has us spending more on incarceration than higher education? In Massachusetts, we have over 25,000 inmates serving time in county jails or state prisons. Governor Deval Patrick's proposed 2009 budget seeks $1.4 billion for the sheriffs' departments and the Department of Correction. This money is primarily for incarceration. The same budget proposes $963 million for higher education.

This isn't an attack on the Governor as the problem certainly isn’t a Massachusetts only problem, Steven Ballard author of the Massachusetts Divorce & Family Law Blog, introduces in a recent post,

The New York Times yesterday published a good basic primer on a most embarrassing type of American Exceptionalism, i.e., America as Incarceration Nation

White should be commended for discussing solutions, even politcally unpopular ones. He offers several in, Fixing our criminal sentencing system,

Maybe it’s time we realize being tough, not wise, on crime, is being tough on schools and education. A 2007 Boston Globe Editorial made its case,

THE ROUGHLY $45,000 spent to lock up a prisoner in Massachusetts for a year is money well spent when it provides social defense against violent offenders who destroy families and destabilize neighborhoods. But such an expense starts to look suspect in cases involving nonviolent drug offenders, especially when recidivism rates are running so high among prisoners who receive inadequate vocational or educational training.
May 2, 2008

Short Sales of Massachusetts Real Estate

Can you sell your Massachusetts home or commercial real estate for less than you owe on it without facing foreclosure?

For some the answer is “yes.” After a committee hearing in Weymouth recently (where the topic of foreclosures and the local economy was brought up), I was asked by a board member, “What is a ‘short sale’ of real estate?”

There are times when a borrower can’t make payments on their current loan or mortgage. A short sale is an alternative method of selling a property instead of losing real estate in foreclosure. In Massachusetts a lender may agree to adjust the amount owed to sell a property. This is a “short sale” of real property (real estate). Under this type of sale, the sale’s proceeds fall “short” of what is owed on the mortgage. A lender may allow a “short sale” and forgive the remainder owed under the mortgage. Why?

Foreclosure can take time, be costly, and lead to a decline in sales price at auction (especially in a declining market). A lender may permit the sale of real property (where the fair market sale price is less than the loan balance) for many reasons. Some examples are to prevent abandonment and waste of a property or to avoid the additional costs incurred by upkeep, maintenance, accruing taxes, legal fees, auction fees…

A Massachusetts real estate lawyer can offer a borrower alternatives to consider. A short sale being one of them, and one that an attorney can negotiate with your lender and structure to best protect your interests. A “short sale” is, however, only one alternative to consider. In others instances a lender may accept a deed in lieu of foreclosure or negotiate a workout agreement. These are topics for later posts.

April 29, 2008

Massachusetts Foreclosures Projections Look Grim

A Massachusetts Continuing Legal Education (MCLE) emailed press release quoted a Boston Herald April 14, 2008 article finding

"One Massachusetts homeowner in 48 will lose their property to foreclosure in the next two years. . .32,976 Bay State homeowners will face foreclosure by about 2010."

While a Boston Globe April 25, 2008 article states:

"Foreclosures during the first three months of the year topped 2,800 … up about 140% over the same period last year."

Recently, more small business owners have been raising issues about their businesses and how to go about protecting their personal assets.

Are statistics on small business owners next?

April 25, 2008

Massachusetts Attorney Referral or Lawyer Referral Services

Are you searching for a lawyer in Massachusetts but can’t find an attorney to fit your needs? This isn't a sales pitch for our firm. Instead I'm offering you these three websites listed below as a free resource to help you find lawyers when we can't.

Why? No firm should try to be all things to all people, but we do try to help consumers, litigants, and other lawyers find quality legal advice in Massachusetts -- even when it’s not with us. If our lawyers are not the right fit or we can’t make a suitable referral, perhaps these three attorney referral websites or resources can help you find a qualified lawyer to contact.

Massachusetts Bar Association, Boston Bar Association, or Massachusetts Trial Court Law Libraries lists several resources and contact information for local bar referral resources.

Disclaimer: I’ve been involved in the Massachusetts Bar Association, Boston Bar Association, and Norfolk County referral lists. I also may be listed in Suffolk County and Norfolk County Probate & Family Court under a pilot program for limited assistance representation. As membership on attorney referral lists can change, I thought you should know I have, do, or may participate on referral lists of lawyers from time to time. A referral is not legal advice and we make no representations or warranties about referrals made. I just hope these sites can help you save time in narrowing down your search.

April 24, 2008

New Massachusetts Wage and Employment Law: Tougher on Employers, Better for Employees and Unions

LAW PASSED: A new Massachusetts labor or wage law will create treble (triple) damages against companies in wage and hour violation cases. This departs from federal courts and other states where an employer can raise a “good faith” defense and avoid treble damages.

Massachusetts Lawyers Weekly reports,

“Previously, under a 2005 Supreme Judicial Court decision, treble damages were available only in cases in which the court concluded that an employer had willfully and intentionally committed an infraction.”

“…the [Massachusetts] Legislature passed a bill on April 15 that makes Massachusetts the first state in the country to impose automatic treble damages against any business that violates wage and hour laws.”

EMPLOYEE BENEFIT: From a Massachusetts employee's perspective, this new labor law provides an incentive for employees and their lawyers to pursue claims. A $10,000 claim is now a $30,000 claim, plus attorneys’ fees. Apply this multiplier to multiple claimants and the numbers can add up quickly.

UNION ORGANIZING BENEFIT: Labor unions should celebrate this law’s enactment. From their perspective, this law will provide an additional tool for protecting employees’ wages.

Additionally, it may become a useful tool for union organizers who come across wage claim violations in non-unionized companies. Organizers can educate employees of their rights; motivate an employee to pursue a claim; and then use the cost and risk of litigation as a bargaining chip against a target company. I’ve seen this work with success in past organizing campaigns involving National Labor Relations Board (NLRB) complaints. With even higher stakes involved in Massachusetts wage cases now, I wouldn't be surprised to see this organizing strategy emerge on every union organizer’s radar soon.

DEFENSE STRATEGY: Nevertheless, the new threat of triple damages and attorneys fees in Massachusetts alone will likely impact the manner in which these cases are defended against. Defending these cases will require a reasonable assessment of the facts as well as the potential liabilities created by the new law. As in many areas of law, prevention still works best.

WAGE POLICIES AND PROCEDURES: With higher liability exposure in Massachusetts, companies doing business here would be well served to review their procedures on wage issues, as well as their dispute resolution practices and procedures best suited for these and other disputes. It makes sense for companies of any size to establish a relationship with a lawyer who can respond to an issue when it arises, or even better, before.

LIVING WAGES & FAIRNESS: A recent Massachusetts AFL-CIO Weekly Labor Reader dated Friday April 18, 2008, quoted past U.S. President Franklin Delano Roosevelt.

"No business which depends for existence on paying less than living wages to its workers has any right to continue in this country. By living wages I mean more than a bare subsistence level - I mean the wages of decent living."

Every person is entitled to the pay they earn as an employee. At the same time, good employers who are trying to do right by their employees and are providing a living wage also deserve protection, especially in this tough economy.

Full disclosure, I had attended and graduated from the AFL-CIO Organizing Institute before organizing for several unions around the nation. My experiences there and elsewhere helped guide me in deciding to attend law school. I now represent both employers and employees.

April 21, 2008

Massachusetts Sexual Harassment & Discrimination Law, More than "Don’t Look, Don’t Touch"

Sexual harassment (or discrimination) in Massachusetts workplaces can take many forms creating liability for both individuals and companies. Earlier today, I talked with a good friend about his first day in a new job. Day one consisted of him filling out the usual forms, making introductions, and watching a video on sexual harassment in the workplace. He summed up his new company's sexual discrimination policy as, “don’t look, don’t touch.” While that may be a good message to absorb on day one, as a manager who could subject both his company and himself to liability under sexual harassment law, it may be helpful to know a bit more about it.

Formal workplace sexual harassment standards are set forth in Massachusetts General Laws, Chapter 151B. Additionally, the Massachusetts Commission Against Discrimination (MCAD) issues guidelines regarding sexual harassment and what employees and employers should do to prevent, stop and respond to sexual harassment complaints. Two nonexclusive types of sexual harassment are known as: "quid pro quo" and "hostile work environment" harassment.

Quid pro quo harassment involves “sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when … submission to or rejection of such advances, requests or conduct is made either explicitly or implicitly a term or condition of employment or as a basis for employment decisions.”

Hostile Work Environment harassment includes “sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when … such advances, requests or conduct have the purpose or effect of unreasonably interfering with an individual's work performance by creating an intimidating, hostile, humiliating or sexually offensive work environment.”

Examples offered by MCAD of each type are:

quid pro quo harassment: termination; demotion; denial of promotion; transfer; alteration of duties, hours or compensation; or unjustified performance reviews.

hostile work environment: inappropriate touching; sexual epithets, jokes, gossip, sexual conduct or comments; requests for sex; displaying sexually suggestive pictures and objects; and leering, whistling, or sexual gestures.

While sexual harassment jokes may be funny in movies or sitcoms, discrimination can be devastating for someone suffering it in their employment. If you are the target of or subject to sexual harassment at the workplace then you need to act to preserve your rights in Massachusetts. While Massachusetts law did require claims to be filed within six months, changes in the law have extended the filing deadline to 300 days. Of course, laws and deadlines can change. Massachusetts discrimination and employment law has many nuances best navigated by a lawyer who takes the time to hear your case, identifies the applicable law, and knows how to protect your rights. Whether you work on the South Shore, are appearing in Boston before the MCAD, or have a claim best suited for Superior Court, don’t proceed without knowing your rights and how to protect them.

April 18, 2008

Train Crash Compensation Settlements and Statutory Insurance in Massachusetts

Massachusetts train crashes are recoverable against the MBTA and its operators. I previously discussed this in my post on commuter train crashes and compensation for personal injuries or fatalities, "Personal Injuries and Commuter Train Crashes in Massachusetts: Seeking Compensation for Injuries Involving the Massachusetts Bay Transportation Authority (MBTA)." Some may ask, “What are the outer limits of the state’s liability in a commuter train accident?”

Massachusetts General Laws (M.G.L.) Chapter 161A, Section 43 addresses the liability policy requirements for commuter rail train service (the MBTA and the operating railroad company). The law provides for a liability insurance policy with annual policy limits of at least $75,000,000 subject to self-insured retention of at least $7,500,000.

Liability beyond the available insurance coverage is disclaimed in the statute, but this law does not apply to third parties who may be at fault for a train accident. Nonetheless, this ceiling does seek to cap liability for the Commonwealth of Massachusetts. If a maximum recovery is likely to be paid out, you may consider being among the first to settle so you are not prevented from a recovery based on the state’s liability cap. That is, once the maximum amount of funds are dispersed to other claimants, it will be hard (if not impossible) to receive your fair share.

April 16, 2008

AP Reports Federal appeals judge in Boston named top judge of wiretap court

Bruce Selya, a judge since 2005 with the 1st U.S. Circuit Court of Appeals has been named chief judge of The U.S Foreign Intelligence Surveillance Court of Review. This court handles appeals over wiretaps of suspected terrorists or spies. It was created to hear government appeals when lower courts reject the government's application.

The Providence Journal reports Selya will take over as chief judge on May 19 and his term will run through 2012. Selya, from Rhode Island, was a federal judge before being appointed to the Federal Appeals Court in 1986.

A Congressional Research Service Report, The U.S. Foreign Intelligence Surveillance Court
and the U.S. Foreign Intelligence Surveillance Court of Review: An Overview
, dated January 24, 2007, by Elizabeth B. Bazan, Legislative Attorney, American Law Division provides a 15 page report. The Report's Summary states:

The national debate regarding the National Security Agency’s Terrorist Surveillance Program (TSP) focused congressional attention on the U.S. Foreign Intelligence Surveillance Court and the U.S. Foreign Intelligence Surveillance Court of Review created by the Foreign Intelligence Surveillance Act. Congressional interest in these courts has been heightened by the January 17, 2007, letter from Attorney General Gonzales to Chairman Leahy and Senator Specter advising them that a Foreign Intelligence Surveillance Court judge had “issued orders authorizing the Government to target for collection international communications into or out of the United States where there is probable cause to believe that one of the communicants is a member or agent of al Qaeda or an associated terrorist organization,” stating that all surveillance previously occurring under the TSP will now be conducted subject to the approval of the Foreign Intelligence Surveillance Court, and noting that the President has determined not to reauthorize the TSP when the current authorization expires. This report examines the creation, membership, structure, and jurisdiction of these courts. It will be updated as subsequent events may require.

Wikipedia gives a general overview of the topic,

The United States Foreign Intelligence Surveillance Court of Review is a U.S. federal court authorized under 50 U.S.C. § 1803 and established by the Foreign Intelligence Surveillance Act of 1978 (known as FISA for short). It is a three judge panel whose sole purpose is to review denials of applications for electronic surveillance warrants (called FISA warrants) by the United States Foreign Intelligence Surveillance Court (or FISC). Each judge of the FISC, in turn, has the jurisdiction to oversee requests for surveillance warrants by federal police agencies (primarily the F.B.I.) against suspected foreign intelligence agents inside the United States. Any appeals from the Court of Review are made directly to the Supreme Court. Like a grand jury, the Court of Review is not an adversarial court; rather, the only party to the court is the federal government, although other parties may submit briefs as amici curiae. Records of the proceedings are kept, but they are classified, although copies of the proceedings with sensitive information redacted may be made public.

The judges of the Court of Review are district or appellate federal judges, appointed by the Chief Justice of the United States for seven year terms. The terms are staggered so that there are at least two years between consecutive appointments. A judge may be appointed only once to either this court or the FISC.

The Court of Review was called into session for the first time in 2002 in a case referred to as "In Re Sealed Case No. 02-001". The FISC had granted a FISA warrant to the F.B.I., but had placed restrictions on its use; specifically, the F.B.I. was denied the ability to use evidence gathered under the warrant in criminal cases. The Court of Review allowed a coalition of civil liberties groups, including the American Civil Liberties Union and the Electronic Frontier Foundation, to file briefs as amici curiae arguing against the F.B.I's new surveillance regulations. The Court of Review held that the restrictions that the FISC had placed on the warrant violated both FISA and the USA PATRIOT Act and that there was no constitutional requirement for those restrictions.

Current composition of the court listed by Name, Circuit, Appointed, Expiration of Appointment Edward Leavy (presiding), Ninth, September 25, 2001, May 18, 2008 Ralph K. Winter, Jr., Second, May 18, 2003, May 18, 2010 Bruce Marshall Selya, First, October 8, 2005, May 18, 2012 List of former judges Laurence H. Silberman, D.C., May 18, 1996, May 18, 2003 Ralph B. Guy, Jr., Sixth, October 8, 1998, May 18, 2005 The exact dates of Judge Silberman's tenure are uncertain.

In 2002, Anita Ramasastry, an Assistant Professor of Law at the University of Washington School of Law in Seattle and the Associate Director of the Shidler Center for Law, Commerce & Technology wrote a critcal review entitled, "THE FOREIGN INTELLIGENCE SURVEILLANCE COURT OF REVIEW CREATES A POTENTIAL END RUN AROUND TRADITIONAL FOURTH AMENDMENT PROTECTIONS FOR CERTAIN CRIMINAL LAW ENFORCEMENT WIRETAPS"

While "A history of Foreign Intelligence Surveillance Court" indicates:

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