New York Business Litigation Attorney Blog

New York City commercial litigation attorneys know that Steve Rothstein was right about one thing: It's not easy to take on giant corporations.

Rothstein is embroiled in what has now been a highly-publicized New York City commercial litigation contract dispute with American Airlines, which revoked Rothstein's unlimited air pass amid allegations of fraud.

Rothstein rightly concedes that large corporations have deep pockets and will fight tooth and nail to protect their bottom dollar. Of course, when you're in the right and you have a skilled New York litigation attorney with decades of experience, your odds of winning are much greater.

In this case, Rothstein is appealing the original verdict, which determined American Airlines was within its rights to terminate the contract on the basis of fraud.

Here's what know of this case, according to The New York Post:

Back in 1987, Rothstein, an investment banker, purchased an unlimited air pass from the airline for $250,000. For an additional $150,000, he also bought a companion pass. These passes gave him unlimited access to air travel on the airline.

And he certainly took advantage of it.

According to the airline, he clocked some 10 million miles on an estimated 10,000 flights. He frequently used his companion pass to fly home strangers who were stranded or in a bind.

There were months he would travel to the other side of the world - 18 times. He would fly to Canada, just for a sandwich, and be home by dinner. His daughter attended a Swiss boarding school and his son went to countless pro-baseball games across the country.

But all this was within his rights under the contract.

However, all of this was costing American Airlines money. A lot of it. Millions.

It wasn't until 2008, though, that they could do anything about it.

Eventually, it appears it was Rothstein's random acts of kindness that did him in. In fact, he gave away some 14 million air miles. When he didn't know who his flight companion would be (maybe that mother who was trying to rush home to her sick child, or the priest trying to make it to a bedside to administer last rights), he would schedule flights under the name "Bag Rothstein." This, of course, was a phony name, and this was the basis the airline used to prove Rothstein had committed fraud, thereby voiding the contract.

Rothstein sued, but the judge found in the airline's favor.

Now, he's still fighting to get back his air pass - which he said has defined him for all these decades. In his words, "A contract's a contract."

Except if there's fraud.

If you have questions about your contract dispute, contact the New York City business litigation attorneys at the Law Offices of Ira S. Newman.

Continue reading "New York City Commercial Litigation: Taking On An Airline" »

A recent appeal between two restaurants with the name Patsy stems from allegations of trademark and unfair competition in New York City based on the name of the restaurant.

These matters and others between businesses must be taken seriously because these issues are the very lifeblood of a company. If a business' very name is being ripped off by another, it must be defended. If consumers can get confused by the name of a business, that can translate to lost dollars and loss of value in the marketplace.

In this case, Patsy's Italian Restaurant, Inc., et al. v. Banas, et al., the owners of Patsy's Italian Restaurant got into a legal battle with Patsy's Pizzeria over the name "Patsy's." At issue was whether each chain of Italian food and pizza fraudulently obtained trademark registrations from the Patent and Trademark Office.

The lower court also refused to reinstate Patsy's Pizzeria's trademark registrations. Both sides then appealed and yet the appeals court upheld the lower court's rulings. After years of litigation, the panel of judges ruled that neither establishment can use the name "Patsy's" as its own.

According to the New York Post's account, the jury found that a Long Island franchise of Patsy's Pizzeria was using the name of Patsy's Italian Restaurant. Both restaurants claimed the late Frank Sinatra loved their food best. A Brooklyn judge ruled that neither establishment could use the name "Patsy's" alone and required the pizzeria to put a sign on the door saying the two weren't affiliated.

Patsy's Pizzeria claims it was the first to sell pizza by the slice, while Patsy's Italian Restaurant claims to have the blessing of Sinatra.

While Patsy's Italian Restaurant has been operating since 1944 and Patsy's Pizzeria since 1933, both have existed without lawsuits until recently, the appellate court's ruling states. In 1998, both began selling packaged sauce under the name "Patsy's," which caused "considerable consumer confusion," the judges wrote.

And they both sought to have the other company's trademark cancelled. It was difficult to determine which company entered the sauce market first as the alleged date was "clearly falsified," the court wrote.

Because of these issues, the two companies have gone through years of litigation in trying to protect their brand and to make sure customers don't get confused about where to spend their precious dollars. Every market is competitive and therefore, a business must do all that it can to protect itself.

That can range from official complaints to full-scale lawsuits. Properly written contracts, licensing agreements and intellectual property matters are all issues that must be ironclad for a company to continue on successfully. Once one company has found a niche or is doing well, others will catch on and try to emulate the product or the strategy in order to latch on and make money themselves.

Continue reading "Patsy's Italian Restaurant Inc. v. Banas Shows Importance of Trademark Law in New York City" »

Many people were shocked in the spring, when Mattel was ordered to pay an $89 million jury verdict to rival MGA Entertainment over a dispute involving the popular Bratz dolls. New York Business Litigation Attorney Blog reported on the verdict in May.

Imagine their shock now, after a judge ordered Mattel to cough up an addition $220 million, bringing the total to a whopping $309 million for violations of copyright and trade secret laws in New York. The judge reduced the initial verdict to $85 million, but then added $85 million in punitive damages and $137 million in legal fees, which have piled up since 2004.

The case highlights the high stakes that businesses are in when they go head-to-head in court over a business law matter. This case also highlights the importance of strongly and clearly worded employee contracts.

The Bratz dolls, introduced in 2001 as a hipper version of other dolls on the market for girls ages 9 to 11 had pouty lips and hip-hop clothing. They were popular when introduced nearly 11 years ago.

The central issue of the lawsuit was that a Bratz designer created the dolls while he was employed at Mattel. The case also dealt with allegations that Mattel tried to crush the doll line because it was giving the long-standing Barbie doll a tough time in the market for girls' dolls. The company alleged Mattel hired spies to find out information about its designs.

Mattel, however, accused MGA of stealing the idea for Bratz and then covering up any evidence the concept wasn't created by them. During the initial trial, a jury sided with Mattel and awarded $100 million, but an appeals court overturned the verdict and sent it back for retrial.

At the second trial, a jury rejected Mattel's claims of copyright infringement and found the company had stolen 26 trade secrets worth an $88 million verdict. Legal fees have reached nearly $600 million, the report states.

As you can see, business law matters can be contentious and expensive. But it is necessary for a company to protect its intellectual property -- that is copyrighted material, ideas, secrets and other creations. Without protecting those things that have made a company unique and profitable, they will often lose out to a competitor. Trade secrets and other ideas pertinent to the future success of a company must be held tightly and if they are stolen, competitors must be held accountable.

And, as this case shows, a well laid out employment contract is critical. Allowing employees who know the secrets, the ideas and the battle plans to go to rival companies without consequence can be the death of a company. It is important to make sure contracts with prospective employees are worded to protect the business. These documents must be legally sufficient and include contingencies.

Continue reading "Mattel Forced to Pay $309 Million in Bratz New York Commercial Litigation Case" »

A sixth teen in Minnesota has filed a lawsuit against a school district there, alleging her school's staff members didn't do enough to protect her from bullying. A Missouri school district faces a lawsuit alleging the school didn't protect a student from being raped.

Those headlines are not what school districts in New York or anywhere want to see, mainly because of a student being injured, but also because of the potential financial impact a large settlement can have on the remaining students who are attempting to learn and prosper there. Education Law in New York has many facets and can include lawsuits filed against school districts, teacher-school district conflicts and even class-size and funding issues with the state.

In the Minnesota case, a lesbian teenage girl claims she was punched and called slurs after attending a middle school there and alerted authorities, who did nothing to protect her. It is an add-on lawsuit filed by five other students who are being flanked by the Southern Poverty Law Center and the National Center for Lesbian Rights.

The lawsuit claims the steps officials took after hearing about the bullying were "grossly inadequate," with some students being told to stay out of the way and lay low, Time reports. The plaintiffs want to get rid of the school district's sexual orientation policy, which instructs staff members to be neutral on sexual orientation matters.

In the Missouri case, a middle school girl alleges school officials didn't protect her from a male classmate, who allegedly harassed her, sexually assaulted and raped her. The special education student alleges she told officials about the events during the 2008-2009 school year, but they allegedly said they didn't believe her, according to the News-Leader.

The lawsuit also alleges school officials forced the girl without her parents' permission, to write a letter of apology to the boy and hand-deliver it. She was expelled and disciplined for filing a false report. When she returned to school, the harassment and assaults continued, and because the school didn't believe her, she didn't report the abuse. But her mother took her to get an exam, which showed she had been sexually assaulted and that the boy's DNA matched samples taken. The boy pleaded guilty to the charges, the lawsuit states.

Both of these situations are tragic because students were injured. And New York school districts aren't immune to these types of allegations and situations. It's possible that school officials didn't do enough to protect these students and, likewise, it's possible the school staff did their jobs, but bad things still happened.

As stated above, education law can pertain to on-campus attacks and the school's response, the accommodations given to special-needs students and even the battles between school districts and the state on matters of funding, teacher pensions in New York and other matters. Sound legal representation is needed in all cases to ensure a client's rights are protected.

Continue reading "School Districts, Parents, State Often Benefit from Education Law Attorneys in New York" »

A U.S. appeals court recently ruled it is unlawful to import and sell copyrighted works created outside the United States without permission from the copyright owner.

In a 2-1 decision, the 2nd U.S. Circuit Court of Appeals ruled that a man going to school at Cornell University violated the copyrights of publisher John Wiley and Sons when he sold less expensive editions of the company's textbooks in the United States that were produced abroad.

This ruling strengthens the rights of companies whose published works and products are created for cheap in other countries and then sold here or abroad for much less than they would by the original company. These New York intellectual property matters are prevalent throughout the city, where street peddlers try to sell everything from knockoff watches and designer bags to DVDs and movies that are still being shown in the theaters.

Copyright law is essential for any company that produces something because it allows recourse for those who unlawfully copy or rip-off the product. Intellectual property is the area of law that deals with a patent or copyright of a business' products in order to protect them from outsiders who try to profit from the original company's hard work.

In this case, according to the article, the ruling was based on a doctrine that establishes that the owner of a copy made lawfully under the Copyright Act can distribute the copy freely without the copyright owner authorizing it. But judges on the appellate court panel decided the rule in the Act only applies to products made inside this country.

To rule otherwise, the majority said, would defeat the purpose of a section of the law that stops a person from buying copyrighted works outside the country and bringing them in without the permission of the copyright's owner.

But while other circuits, as well as five New York district judges have ruled in favor of copyright owners in other cases, they disagree about whether or not the first sale law applies to works produced abroad. It's possible the U.S. Supreme Court will have to take the case to sort out the varying court opinions.

While this particular copyright law case deals with the production of books, this ruling will apply to any company that manufactures a product. Offshore production of U.S. goods has been a major issue in recent years, as many small businesses abroad have stolen the copyright owner's design and product and sold it for less, even if the original company also sells its wares in those countries.

While competition will call for undercutting on costs to impress the consumer, it can't be done unlawfully and to the detriment of the original company. These copyright and intellectual property matters must be handled by a Great Neck Business Lawyer who can work to protect a company from unfair competition and stolen ideas and products.

Continue reading "Court: Illegal to Sell Copyright Works Made Outside U.S. Without Owner's Permission" »

As technology changes the way we operate in society and takes over the way we used to do things years ago, there are new legal challenges that must be made in order to regulate how businesses can use it.

A recent Thomson Reuters article reports on Manhattan anti-trust lawsuits that were recently filed, alleging technology and communications giant Apple conspired with five of the six major book publishers to fix prices for electronic books. And after one set of plaintiffs filed a lawsuit, four other class action lawsuits were filed -- one in California and three in New York -- making similar allegations.

Anti-trust law is essentially the area of law that governs competition and prevents monopolies from occurring. It's interesting that Apple is on the other end of an anti-trust lawsuit as in 1998, the United States Department of Justice and 20 states filed an anti-trust action against Microsoft Corporation, alleging the company abused monopoly power on Intel-based computers dealing with operating system and web browser sales. The issue in that case was whether it could sell its Windows operating system with Internet Explorer software.

Today, it seems second nature for PC users to have Internet Explorer standard, but the lawsuit raised questions about whether that restricted the market for competing web browsers. After a trial and appeals, Microsoft settled with the government, agreeing to share its application programming interfaces with other companies and allow access to the company's systems, records and source code for five years.

The allegations in the case against Apple are slightly different, however. Electronic books -- those read on Apple's iPad, Amazon's Kindle and Barnes and Noble's Nook, among others -- are the paperless version of millions of books, available with a click. The lawsuits claim that Apple and the publishers struck a deal in January 2010, just before Apple's iPad launched, to fix prices. The deal was to raise e-book prices after the publishers were frustrated with Amazon charging low prices in order to dominate the market.

This type of litigation protects businesses from unlawful competition. Not that competition is bad -- competition is what makes any marketplace thrive, but doing so unlawfully can cripple a business. As any small business owner knows -- or if this is an example, any corporation knows, protecting one's product through litigation is a step many have to take.

New York business law is designed to protect the companies that are acting lawfully and punish those who have broken the laws designed to regulate healthy competition. If companies are caught conspiring together to fix prices, steal competitors' ideas or otherwise control the market, they can suffer the consequences of hefty fines and, in the public realm, very bad public relations.

It is important that businesses consider how the law can benefit them in regulating and policing the industry. Anti-trust laws are here to help companies who are working honorably and who have had dishonest competitors working together to bump out other companies who are trying to get a share of the consumer dollar.

Continue reading "New York Anti-Trust Lawsuits Important In Protecting Business Property" »

A lawsuit between powerhouse coffee company Starbucks and a South Dakota communications company shows the great lengths that companies will, and should, go to in order to protect their identity.

In Starbucks Corporation v. South Dakota Network LLC, the communications company alleges that by Starbucks using "SDN" in promoting its Starbucks Digital Network to customers using free wireless, it infringes on SDN Communications.

Intellectual property matters -- copyright and trademark issues -- are essential to maintaining and growing a business. Without the law to sort out companies unlawfully using another company's hard-earned image, there would be chaos. Thankfully, New York has many laws and processes dedicated to sorting out these common squabbles that can cause a business to go under.

In the Starbucks case, the Seattle-based coffee chain sued the South Dakota information-services company in a trademark dispute, Bloomberg reports. According to court documents, South Dakota Network LLC, which does business as SDN Communications, is owned by 17 telephone companies in the state, offering business services in 19 western states and telecommunications in 36 states.

The company has objected to Starbucks' use of SDN, an acronym that refers to the Starbucks Digital Network, its free Wi-Fi service for customers. Starbucks has received several cease-and-desist letters from the South Dakota company, accusing the coffee company of willful infringement of SDN Communications' trademarks.

Starbucks has asked a judge in the U.S. District Court, District of Nebraska to stop the communications company fro threatening to file an infringement suit and requests attorneys' fees and litigation costs. Starbucks says the allegations "casts a cloud over Starbucks' ongoing use and development of the Starbucks Digital Network."

This type of dispute is common, but it's also a critical aspect of business law in New York and elsewhere. Small companies especially must fend of larger corporations who attempt to use logos, sayings, graphic designs and other information in the marketing of their own business.

Sometimes, a letter from an experienced and well-trained New York intellectual property lawyer can get the job done, causing the other company to back down and stop using information that isn't theirs. But other times, they simply won't stop and litigation is required. But whatever the strategy, protecting a business is paramount.

Other times, defending these types of cases is essential. It's possible that one company tries to bring legal action against another who has the legal authority to use a certain logo or saying, despite claims by the other side. Perhaps that company began using the information first and it needs to be sorted out in court.

The article also cites trademark problems between two cupcake companies and a copyright issue between Google and a group of publishers, who allege the search-engine company unlawfully digitizing books and offering free previews. As you can see, this area of law spans to every field of business and in all kinds of situations.

Continue reading "Starbucks Corporation v. South Dakota Network LLC Shows New York Copyright Infringement Law in Action" »

The owner of Sazon, a popular Puerto Rican eatery in TriBeCa, has filed a $50 million discrimination lawsuit against city and state officials, alleging that recent complaints against the business are racially based, The New York Post reports.

New York Lawyers represent not only consumers, but also businesses that feel they have faced discrimination that threatens their well-being. It is crucial that governmental agencies be held accountable when their agents unlawfully discriminate against businesses. Our New York labor law attorneys are well-equipped to ensure businesses are treated fairly.

Saxon, the restaurant, filed a lawsuit recently, claiming that Community Board 1 curtailed his hours of operation and banned live music or a disc jockey after learning he planned on playing Latino music, saying he wouldn't get a liquor license if he didn't agree to the board's terms, the article states.

The federal lawsuit also states he was fined $5,000 after a board member sent the New York State Liquor Authority after him and caught people dancing and being served drinks in a downstairs lounge. Despite the success of similarly themed East Side restaurant Sofrito, the lawsuit states neighbors of Sazon have lodged complaints and subjected patrons to ugly racial remarks.

According to the U.S. Equal Opportunity Employment Commission, of the 99,922 discrimination complaints in 2010, 11,304 were based on national origin. That made up about 11 percent of the total number of complaints.

In this competitive market, it is absolutely crucial that business owners protect their investments and livelihoods as best they can. In New York, that sometimes means filing lawsuits against other businesses, sometimes for copyright infringement, and sometimes the government for abuses in licensing. When discrimination is involved, so should Great Neck Business Lawyers.

But while businesses sometimes feel they are subjected to discrimination, individual workers or consumers file the most discrimination lawsuits in New York. In one recent case, two men have sued the Apple Store in New York City, claiming they were discriminated against based on their race, according to The Huffington Post.

According to the article, the two black men alleged they were forced to leave the store in December 2010 because of their race. The lawsuit states the men entered the store to buy headphones and were wearing baggy jeans and sweaters with hoods when a white Apple employee in his 50s, standing 6-foot-2 and weighing 225 pounds allegedly approached them.

According to the lawsuit, the man said "You know the deal. You know the deal" and told them they had to leave unless they planned on shopping. The man told them he didn't want "your kind" hanging out in the store.

These types of occurrences are disturbing and must be fought in court. While many people are initially shocked and hurt by such actions, it is important to quickly seek an experienced law firm that handles these types of cases. The more time that goes by can hurt your case because witnesses will move or forget what happened and it's possible that the statute of limitations could cost you an opportunity to seek justice. Don't hesitate; act today.

Continue reading "TriBeCa Restaurant Files Discrimination Suit Against New York City and State" »

A network of Long Island doctors recently signed a deal with the state's largest insurer, Long Island Business News reports.

Such a deal highlights the need for a firm of lawyers who have knowledge of New York contract law. Such insurance deals are complex and usually have many terms, including rates, conditions and other factors that require a contract is properly handled.

The Beacon Independent Physician Association, founded last year and has nearly 250 members, reached a three-year agreement with Empire Blue Cross Blue Shield. IPAs have been cropping up around Long Island and nationwide, allowing doctors to remain independent but give them big bargaining power in deals with insurers.

The IPA can lead to compensation based on efforts to improve care through electronic medical records, follow up and eliminating unnecessary testing, such as exams that are duplicated. The doctors share information with each other.

Contractual agreements require precision and extensive research and dedication to detail. Contracts are an essential element to doing business in New York. Without proper contracts, those written with a strict attention to detail, a business can fail.

In business, disputes often arise when one party doesn't honor the terms of the agreement, which can bring up breach of contract actions. That's when aggressive representation is necessary to protect your company's rights. Many breach of contract allegations can be settled through negotiation, arbitration or mediation and our firm is dedicated to finding the best solution, which sometimes means avoiding an expensive lawsuit.

Contract disputes can often lead to financial ruin for the company if the issues aren't properly handled. Competition is fierce and therefore resolving these problems as quickly, quietly and least expensive as possible is in the best interests of a company. And our firm is dedicated to doing what can most benefit our clients.

New York business litigation can be extensive and focus on many matters that affect the well-being of a company. Founders, executives and employees work hard to make sure the business grows and prospers and it can take only one lawsuit to ruin years of hard work. Our firm works to serve businesses that need legal help protecting them and those they serve.

Continue reading "Long Island Health Care Network Signs Deal With Empire Blue Cross/Blue Shield" »

Steven Madden, the famed footwear and accessories company, recently announced a $30 million buyout of Cejon Accessories Inc., a group of design and marketing companies, The Associated Press reports.

New York Business Lawyers understand that buying or selling a business is complex and there are many factors involved in a multi-million dollar acquisition or merger.

The all-cash deal includes Cejon Inc., Cejon Accessories Inc. and New East Designs LLC. The companies design scarves, wraps, winter accessories and other items. The Long Island City, NY-based Steve Madden runs 87 retail stores, including its three online stores.

The deal is subject to a working capital adjustment and some financial performance-based provisions through June 30, 2016. The deal is expected to add 7 to 9 cents to Steve Madden shares in the first year.

Able business attorneys will provide an initial analysis of a prospective purchase, prepare contracts and determine employer obligations. Many concerns may surface about employees and every party's responsibilities. A trusted advocate will be proficient in federal, state and local laws that must be factored into a large-scale transaction. The New York Code is complex and requires a firm with decades of experience so that every issue is anticipated.

According to the New York State Division of Corporations, more than 1.8 million business entities are on file with the state. A corporate law firm should be counted on to handle contracts, employment agreements, non-compete agreements, tax issues, stock options and other areas that are complex.

There are no "standard" or "boilerplate" contracts used by business lawyers. Our attorneys spend as much time as necessary to study Individual cases, determine the terms of the contracts and represent the best interests of the client. We're not just an attorney, but we become trusted members of your corporate management team.

Using an inexperienced firm during a business transaction can create a negative lasting effect on the business. It could be the difference between a successful and disastrous transaction.

Continue reading "Steven Madden Buyout Deal" »

The historic Tavern on the Green is no more, but its name lives on after a trademark settlement, The Wall Street Journal reported recently.

New York City will retain use of the name for restaurant services in the city, but its rights can be sold in other areas after a bankruptcy court settlement was reached. The famed Central Park restaurant closed in 2009 after the operators filed for Chapter 7 bankruptcy.

Manhattan Intellectual Property Lawyers represent companies whose names, ideas, inventions and other copyright and trademark issues must be litigated. Trust 30 years of experience if you are considering a lawsuit or must defend yourself from someone else.

Buyers can now use the Tavern name and logo for restaurants outside of the area, which also includes a portion of Pennsylvania. While the buyer will be able to use the trademark, it must have distinguishing features and specify that the operation is not related to Tavern in New York City, the newspaper reports. The trademark has been used in New York City since 1937.

It's unclear whether the Central Park building will ever reopen as a restaurant. Negotiations broke down last year between the person who won a license to operate Tavern in 2009 and the former workers' union.

The building is now being used as a visitors center lined with gourmet food catering trucks, The Huffington Post says. The famous Crystal Room was demolished and replaced with a courtyard for the trucks.

New York business law can be complex, especially when bankruptcy and other issues are involved. It's important that businesses be well represented when procuring contracts, especially when the success a company has spent years building is threatened.

A trademark can be any word, name, symbol used in commerce. They distinguish a company from others and tell consumers and the public what services or products the company provides. The purpose of U.S. trademark laws is to protect consumers from getting confused about where they are spending their money.

But the laws also protect businesses that sometimes fight about who can use a certain term or logo in the branding of a product. That's when a firm can be the difference between the success and failure of a business.

Continue reading "Tavern On The Green Trademark Battle Ends in New York City" »

A recent bill filed by a New York senator would re-classify New York City cooperatives and condominiums being slammed by recent assessment increases, The Queens Courier reports.

The bill by Senator Toby Ann Stavisky would change the classification of New York City co-ops and condos to that of single- and multiple-family homes. Recent valuation assessments released by the New York City Department of Finances showed, in some cases, 100 percent increases valuation, meaning a jump in taxes for the owners.

A New York City cooperative housing law attorney can help you identify areas where your rights as a homeowner could be violated.

Supporters of the bill say it would cap assessments annually and allow those homeowners to be on equal footing with other single family houses in the city. It would also bring affordability to many condominiums and cooperatives.

Owners of commercial facilities and apartment buildings often make the decision to convert their properties into condominiums or cooperatives. But that decision affects the people already living in the building. All of these issues must be sorted out according to New York real estate law and an experienced real estate law firm should be consulted.

For instance, specific information must be included:

• A full description of the building
• Details on financing
• Specific obligations and rights of all parties
• Documents
• Certifications
• Disclosure of purchase procedures
• Agreements for operations

And, New York requires that every condo or co-op offering be reviewed and approved by the New York Attorney General. This requires detailed contracts, shareholder matters, leasing issues as well as sales and transfers of units. All of this is complex and requires attorneys with years of experience in this area. Whether considering this type of a conversion or if you're living in a building going through this change, contact an experienced group of New York City co-op attorneys.

Continue reading "New York Cooperative Bill Would Change Classification System" »

Six subcontractors, their owners and a construction company's executives were recently charged with allegedly participating in a scheme where New York City businesses were overcharged for interior construction projects, The Wall Street Journal reports.

Indictments announced recently by the New York County District Attorney show not only the importance of a strong New York City criminal defense attorney, but also the need for an aggressive business law firm.

Lehr Construction Corp. and four of its top executives have pleaded not guilty to hatching and executing a billing model that overcharged clients for work by agreeing with subcontractors it hired to inflate costs in exchange for guaranteed future work. Following the Lehr executives being charged with racketeering, six subcontractor owners pleaded not guilty to grand larceny charges.

According to prosecutors, the scheme resulted in $30 million being taken illegally over 12 years from clients that included banks, law firms and the Economist Magazine. They allege the companies didn't keep any of the illicit funds they collected from clients, but instead held money and transferred it to Lehr by allowing Lehr to underpay them on future jobs.

Overzealous prosecutors can often make mistakes in the prosecution of business professionals when information is based on less-than-credible witness testimony and numbers that appear off but are, in fact, legitimate. That's why having a New York City criminal defense team prepared to fight for your rights in court is important when facing white-collar criminal allegations.

That being said, there are times when businesses are unethical and untruthful and that's when having a business litigation firm ready to fight to protect your business from being ripped off is equally important. Lawsuits may be necessary to recoup millions of dollars that were unlawfully taken in schemes created by those in power.

Continue reading "New York City Construction Fraud Case: Business and Criminal Litigation" »

The Plaza Hotel's Oak Room Restaurant in Manhattan is closing after squabbles with hotel management, The New York Times reports.

A business law attorney can defend you and your business from falling prey to loopholes in contracts or illegal actions by a property owner. New York contract law is complex and ensuring that your business lease is favorable when it comes to permitted uses, rent increases, renewal clauses and other factors is key to making sure a Manhattan restaurant and hotel work well together.

According to The Times, lease negotiations broke down with the hotel in March after tensions between the parties soared because hotel owners pushed the Oak Room owner to cancel events or pay double rent. The Plaza's owners have sued the Oak Room's owners for more than $33 million, claiming "numerous violations of the lease, unacceptable activities and significant financial arrears."

The dispute between the parties started with the restaurant's "Day and Night" Saturday afternoon parties, which invited hundreds of young partiers and made the restaurant as much as $180,000 in the afternoon, much of it from top-shelf alcohol sales. But the parties disrupted hotel residents and guests.

The Plaza Hotel has been in the news as recently as October, when actor Charlie Sheen, naked and apparently intoxicated, ransacked one of the Plaza's rooms and was later hospitalized. The hotel was hit hard by the recession, as by January 2010, nearly a dozen condo owners had to sell their units at a loss, the Times reported.

Plaza owners claim in court filings that Oak Room owners violated the terms of their lease and obstructed the landlord's "costly efforts to restore the landmark Plaza Hotel to its former glory, in a city where the amenities and manners of cosmopolitan society have increasingly given way to the rude and the ordinary."

The Oak Room opened in fall 2008 after delays from $8.5 million in renovations. The restaurant started with poor reviews from its first chef and once the recession hit, the owners were unable to pay the $125,000 per month in rent, so the Plaza agreed to a reduced rent of $50,000 plus 8 percent of sales, making the parties necessary to keep business flourishing.

Continue reading "Oak Room to Close After Landlord Dispute With Hotel in New York City" »

The recent Bratz Doll cases involving Barbie Doll giant Mattel illustrates the importance of employment contracts in New York.

Of course, the case also involves copyright, trademark and licensing issues and illustrates why hiring a business litigation attorney in New York is always important when establishing new product lines or dealing with issues involving terms of employment for highly-skilled employees.

Forbes reports Mattel was ordered to pay an $89 million jury verdict to tiny rival MGA Entertainment; Mattel originally won a $100 million verdict against MGA in 2008, however that verdict was overturned on appeal.

At issue was whether a Mattel designer had the rights to develop the wildly popular Bratz doll on his own time and sell it to a rival. The employee claimed he developed the doll while living with his parents in Missouri -- between stints working for the company.

Mattel argued the invention came during his second stint with the company -- and that he violated the terms of his inventions agreement by taking the concept to MGA Entertainment. The company claimed copyright infringement and breach of contract and was awarded $100 million at the original trial.

However, the appeals court overturned the verdict, ruling that MGA deserved "sweat equity" for manufacturing and marketing the doll.

Continue reading "Mattel Case Illustrates Importance of Employment Contracts " »