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We welcome attorney Susan Cress Browning and launch our consumer bankruptcy practice

Author By Christopher P. FinneyPosted on
Attorney Susan Cress Browning
Finney Law Firm is pleased to announce that Attorney Susan Cress Browning, a veteran consumer bankruptcy attorney, has recently joined our firm and anchors our bankruptcy law group.
Susan has a passion for the practice of consumer law. Her membership in several legal associations have afforded her the opportunity to learn from and educate some of the most respected consumer law practitioners in the country. This invaluable experience, combined with her strong compassion and commitment to her clients, has culminated in Susan’s successful consumer bankruptcy practice.
Susan earned her Juris Doctorate cum laude at Northern Kentucky University’s Salmon P. Chase College of Law in 2002. Her practice includes the filing and management of Chapter 7 and Chapter 13 consumer bankruptcy cases. She is admitted to both Ohio and Kentucky Bars and to both State and Federal Courts.
She will be located in our Mt. Adams office and will meet with clients at either of our office locations. Please contact Susan (513-797-2857) for a free consultation.
Learn more about Susan here.

Secrets of Savvy Business Owners

Author By Christopher P. FinneyPosted on
Finney Law Firm Business Manager Jane Schulte

Introduction:

Finney Law Firm’s new Business Manager is not an attorney, but an experienced and gifted executive for small businesses, a manager of people and capital resources.  She is the author of four published books, including Work Smart, Not Hard! and BOLD Leadership.  She will from time to time share her leadership and management insights in this blog.

__________________________

It looks like most small businesses are going to have to hit the reset button.  While we are busy “re-opening” and assessing our next steps, it is important not to lose sight of the vision and the dreams that brought us to starting our businesses in the first place.  So, let’s get back on track and begin with renewed energy and focus!

When times are bad is when the real entrepreneurs emerge.

– Robert Kiyosaki, founder Cashflow Technologies Inc.

When searching for ways to grow and attract more clients and customers to our businesses, we are sometimes puzzled by those who have mastered the art of success in a seemingly effortless way. What are their secrets?  They have figured out that success is the direct effect of working from the inside out.  In other words, getting the best out of the people on their team. They know that:

  1. Emotional and Creative Intelligent people are invaluable.

Hire employees with a high EQ and high CQ.  Individuals with high EQ (emotional quotient) soft skills are good at critical observation, problem solving, conflict resolution, project management, teamwork, and adaptability.  Individuals with a high CQ (creative quotient) are curious.  They have keen intuition, improvisation and see problems as opportunities.

The things we fear the most in organizations- fluctuations, disturbances, imbalances – are the primary sources of creativity.

– Margaret Wheatley

  1. All problems and all solutions boil down to one thing – communication.

Effective and ongoing communication is at the foundation of all successful businesses.  Business owners must practice listening empathetically without formulating a reply, understand others’ unique perspectives, and seek a win/win in every communication, to the extent possible.

  1. Change is good.

If you keep doing the same things and expect a different result, you will go insane.  Be open to new ideas and ways of conducting business.  Be flexible, curious and humble.  Attract disruptors – those individuals who can objectively see the company’s blind spots and help pave the way to innovative solutions to nagging, ongoing problems.

  1. Servant leadership works.

Show your employees that you care more about them as human beings than about how they can make money for your business.  If you have an issue with someone, confront it, as it will not go away on its own by sheer avoidance.  If you are clear, concise and kind in your delivery, most people will appreciate honest conversation and the ability to clarify a misunderstanding or the opportunity to perform at a higher level.  Be a mentor rather than a director.

  1. Not everyone is an entrepreneur.

Many business owners want to believe that their employees think like they do.  They do not.  If they wanted to be a business owner, they would be.  Put them in positions that play to their strengths so they can work to optimal capacity and allow them to perform work in their own natural way.

  1. Negative employees cannot remain.

As the saying goes, it only takes one bad apple to spoil the whole bunch.  Even employees who perform well can have an extremely negative effect on the business if they are not rowing in the same direction and are causing turmoil in the workplace.

  1. Governing by the dollar does not work.

Money is great – everyone needs it – but making money the primary objective skews thinking.  It can interfere with employee morale and individual self-esteem.  Not all work performed turns into revenue for a company (i.e. sales force versus administrative team).  However, one cannot exist without the other.  Build teams so strong that you cannot tell where one employee leaves off and the other one begins.  Incentivize the net result.

Chase the vision, not the money, the money will end up following you.

– Tony Hsieh, CEO Zappos

Conclusion:

To learn more about how you can recruit the best employees for your team, contact Jane Schulte, 513.797.2855.

Ohio Employment Law: Today, Attorney Matt Okiishi co-presents at the Cincinnati Bar Association on COVID-19 issues

Author By Christopher P. FinneyPosted on
Finney Law Firm attorney Matt Okiishi

Today at 3 PM Finney Law Firm attorney Matt Okiishi co-presents to the public (not just CBA members) at the Cincinnati Bar Association with attorney Kelly Mulloy Myers on “legal issues in the wake of COVID-19.”

It is simply a 30-minute program of pre-selected questions submitted by the public on the noted topic.

A link to the Facebook announcement about the program is here and you can sign up for the program thru that link.

Key Aspects of the CARES Act Provisions Authorizing Small Business Loans

Author By Todd McMurtryPosted on

Small business owners are necessarily prepared for various types of challenges, but what do you do when the government orders you to close for an indefinite amount of time? Unfortunately, the COVID-19 pandemic has put millions in this very difficult position. Even worse, it is still unclear in many places when authorities will allow businesses to reopen their doors, and what the U.S. economic landscape will look like when they do.

To address these concerns, the federal government has passed legislation designed in part to support small businesses throughout this crisis. Understandably, reaction has been overwhelming, but the different types of relief can be confusing, and a mistake that leads to a delay could be very costly. If you’re looking for assistance offered in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, here’s what you should know:

  • Paycheck Protection Program — Much of the media coverage has been focused on the Paycheck Protection Program (PPP), which allows small businesses to apply through their local bank for up to $10 million or 2.5 times their average monthly payroll — whichever amount is smaller. If the funds received from the PPP loan are spent within eight weeks on payroll, mortgage payments or a few other necessary expenses that are outlined in the text of the law, the loan amount is forgiven, making this more of a grant than an actual loan.
  • Economic Injury Disaster Loans — This measure simplifies and expands upon the Economic Injury Disaster Loan (EIDL) program. Run by the Small Business Administration, the EIDL approval process has been streamlined and businesses can now ask for up to $10,000 as an advance on the loan. These amounts do not have to be repaid and can be granted regardless of whether the underlying loan is ever issued. Moreover, the collateral requirements that were previously in place for larger loans have been eased or eliminated.
  • Possible future modifications — Even in the first few days, the popularity of the programs caused delays and fears of depletion. Congress is expected to authorize more funds to back these loans, but small businesses might need tenacity, patience and assistance from an experienced adviser to keep up with the changes and secure the funding they need.

If you’re wondering which loan to pick, you can actually apply for both. Just remember that each loan has its own requirements for forgiveness. If you have difficulty applying for, or getting approved for, one of these loans, or if you have questions about whether your lender or the SBA is complying with the text of the law, consult a small business attorney on whether a suitable remedy is available.

About Finney Law Firm, LLC

Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work.

FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually.

For more information about Finney Law Firm, visit finneylawfirm.com.

Media Contact: Mickey McClanahan; mickey@finneylawfirm.isoc.net; 513.797.2850.

 

Paycheck Protection Program: May 14, 2020 Need Certification Safe Harbor Extended to May 18, 2020

Author By Rebecca L. SimpsonPosted on

 

Attorney Rebecca L. Simpson

We blogged earlier this week about a new need certification safe harbor for borrowers who received PPP loans of less than $2 million.  That safe harbor was created in question 46 of the SBA’s FAQ document, and it also gave further guidance to those with loans over $2 million.  Click here to read our blog about FAQ 46, the new safe harbor, and what it means for your business.

So that borrowers have time to assess their situations in light of the new guidance in FAQ 46, the SBA has now issued FAQ 47, which extends the May 14, 2020 need certification safe harbor to May 18, 2020:

  1. Question:  An SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith.  Is it possible for a borrower to obtain an extension of the May 14, 2020 repayment date?

Answer:  Yes, SBA is extending the repayment date for this safe harbor to May 18, 2020, to give borrowers an opportunity to review and consider FAQ #46.  Borrowers do not need to apply for this extension.  This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor.

To read more about the now extended May 14 safe harbor, click here.  If you have questions, please feel free to contact Rebecca L. Simpson at 513.797.2856

When Can a Worker Sue for Defamation?

Author By Todd McMurtryPosted on

Your ability to earn a livelihood depends in large part on your reputation, which can be heavily based on what your present and previous employers or clients say about you. If you believe that anyone connected with your career made disparaging remarks that hurt your prospects for a job or a promotion, you may be entitled to sue for defamation, seeking money damages.

Proving defamation requires showing that the statements were false, of a defamatory nature, about the worker, made to a third party, made negligently or intentionally, and (depending on the defamatory nature of the statements) caused damages. Because of this exacting standard, there are important things to keep in mind when contemplating such a claim against an employer or other business associate:

  • Some communications are privileged — Employers usually may speak about an employee’s character and qualifications to other parties who have a legitimate interest in that information, such as a hirer or recruiter seeking a reference. This is a qualified privilege, however. It does not cover a false statement made with actual malice — namely, knowledge of its falsity or reckless disregard of whether or not it is true.
  • The statement must have been harmful (i.e., of a defamatory nature) — Even if a knowing false statement can be proved, the plaintiff still must show that an injury resulted, such as reputational damage or emotional distress. This includes showing that the plaintiff’s job prospects were significantly hampered as a result of the defamation.
  • Certain statements are defamatory per se — When false statements are made that an employee committed a crime, engaged in lewd or promiscuous activity or carried on other conduct that would be considered a public disgrace, defamation is presumed to have occurred. The employee may recover punitive damages even without showing actual harm.
  • Opinions are not statements of fact and thus cannot be proven false —An opinion by its very nature is neither true nor false but only an indication of the speaker’s frame of mind. However, the line between opinion and statement is not always clear. Even expressions couched in terms like “I feel,” “I think” or “In my opinion” can be defamatory if they convey false information.

Many companies have adopted best practices that prohibit giving out any data about employees, other than to confirm their job titles and dates of employment. However, offhand comments on the side can be defamatory. What’s more, these communications are usually not protected by the qualified privilege.

About Finney Law Firm, LLC

Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work.

FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually.

For more information about Finney Law Firm, visit finneylawfirm.com.

Media Contact: Mickey McClanahan; mickey@finneylawfirm.isoc.net; 513.797.2850.

 

Paycheck Protection Program:  If you received less than $2 million in PPP, you are deemed to have made “Need Certification” in good faith

Author By Rebecca L. SimpsonPosted on
Attorney Rebecca L. Simpson

The SBA issued new guidance today which provides that If you and your affiliates combined received less than $2 million in Paycheck Protection Program (PPP) funds, you will be deemed to have made your “need certification” in good faith.  Upon application, every PPP borrower was required to make a good faith need certification, which reads:

Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.

New guidance clears up confusion

Over the last several days, the SBA had issued guidance reminding borrowers that this “need certification” had to be made in good faith, and warning borrowers that if it was not made in good faith their PPP loan should be repaid by May 14, 2020.  This May 14 deadline had left many questioning what the SBA would consider in determining if a borrower made the need certification in good faith, and if the PPP should be repaid by tomorrow.  The SBA promised more guidance on this issue, which came today in new question 46 in the SBA’s FAQ document.

New safe harbor for those who received less than $2 million in PPP funds

The SBA defined a new safe harbor today in question 46 of its FAQ document:

Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?

Answer: …  SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue:  Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith. …

Purpose of less than $2 million safe harbor

The answer to FAQ 46 goes on to explain the reasons for this new safe harbor, including:

  • Those with PPP loans under $2 million are generally less likely to have had access to adequate sources of liquidity in this economic environment than those with larger loans
  • As PPP borrowers with more limited resources work to retain and rehire employees, this safe harbor will provide greater economic certainty
  • This safe harbor enables the SBA to focus its limited resources on larger loans, “where the compliance effort may yield higher returns”

Treatment of borrowers who received more than $2 million

While the answer to FAQ 46 acknowledges that those with PPP loans over $2 million may be able to show that their need certification was made in good faith, it also reiterates that the SBA will review all PPP loans in excess of $2 million.  And, it provides that if the SBA determines that that the borrower “lacked an adequate basis” for the certification, then the borrower must repay the loan and will not be eligible for loan forgiveness.  It further provides that if the borrower then repays the loan, the SBA will not pursue administrative enforcement.

Conclusion

For assistance with an application for a PPP loan or for PPP loan forgiveness, contact Rebecca L. Simpson (513.797.2856).

Eli Krafte-Jacobs obtains his Ohio title insurance license

Author By Christopher P. FinneyPosted on

 

Finney Law Firm is pleased to announce that Attorney Eli Krafte-Jacobs has obtained his Ohio title insurance license.  Eli is a part of our Commercial Real Estate Title and Closing Practice Group.

Consistent with our mission to Make a Difference for our clients, Eli works directly with the Firm’s affiliated title company Ivy Pointe Title, LLC to provide a comprehensive suite of commercial real estate title, title insurance and closing coordination services, with transparent communication and timely delivery.  Our professional team possesses the core competency and capacity to handle even the most challenging commercial real estate transactions.

Contact Eli Krafte-Jacobs, 513.797.2853.

 

Potential Tax Effects Associated with the CARES Act Stimulus

Author By Todd McMurtryPosted on

Since March, federal and state governments have engaged in a variety of methods designed to safeguard Americans’ health and financial security in the wake of the coronavirus pandemic. At any time, taxes have a direct impact on our lives, so it’s natural that some of the key provisions of the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act relate to taxation. Designed to assist states, medical providers, businesses and individuals, this legislation was signed into law on March 27, in the midst of what is usually income tax filing season.  

Critical aspects of the CARES Act that have an effect on taxes include: 

  •     Rebate payments — Much has been made of stimulus dollars that will be going directly to taxpayers. Not everyone will collect these payments, however, which begin to phase out for individuals with an annual income of at least $75,000 and jointly filing married couples whose combined income is $150,000 or more. The individual maximum payment is $1,200 and as much as $2,400 can be sent to a couple when the spouses file jointly. On top of that, an additional $500 can go to a household for each child 17 years of age or younger. 
  •     Filing and payment extensions — Congress extended by three months the traditional April 15 deadline for the filing of federal income tax returns and the payment of amounts owed to the government. Originally, only the payment date was shifted, but now both deadlines are slated for July 15. That is also the date by which someone must apply for an extension, to October 15, if they need one.
  •     Payroll tax credits — Employers that do not take a Paycheck Protection Program loan, offered through the CARES Act, are eligible to take a credit on their payroll taxes through the end of 2020. This credit is offered to businesses that have been closed down due to government order or have seen a year-over-year drop of at last 50 percent of gross receipts in a given quarter. Within a quarter, the credit can total as much as $5,000.  

Handling tax issues can be a challenge at any time, and especially during these perilous economic times, you don’t want to make a costly mistake. Consulting with an effective tax attorney will help you take advantage of programs that have been created or modified to address the issues you’re facing.

About Finney Law Firm, LLC

Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work.

FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually.

For more information about Finney Law Firm, visit finneylawfirm.com.

Media Contact: Mickey McClanahan; mickey@finneylawfirm.isoc.net; 513.797.2850.

 

Ohio Title Insurance: “The Tale of the Clueless Clerk,” yes, this really just happened

Author By Christopher P. FinneyPosted on

As we have written here and here, the coverage provided by title insurance is particularized to the policy issued, and that is usually tailored to the property insured.

Background

In other words, when someone wants to buy a property, the title insurance company hires a title examiner who conducts a title search of the subject property and ascertains monetary liens, easements, covenants, restrictions, and other encumbrances against that property to be insured. Then, a title insurance policy is prepared that lists as exceptions to coverage the encumbrances found to be of record. It has to be this way; an insurer simply can’t insure against and over valid easements and other encumbrances.

As we have discussed previously, then, for a buyer/insured to know the quality of title he is receiving, it is not enough to obtain an Owner’s Policy of Title Insurance.  Someone has to read the policy and read and understand the encumbrances excepted from coverage.

For almost all parcels in urban and suburban areas, there are some easements, and if you are not careful there could be monetary liens that need to be released. These might be subdivision (residential and commercial) covenants, reciprocal easement and maintenance agreements, utility easements (which circle every commercial and residential subdivision) and other easements and covenants.

Very occasionally, typically in a rural area with no recent development, you will find a parcel with no easements, no covenants, no restrictions, and no monetary liens, but it’s a relative rarity.

My friend is buying an investment property

So, this week, a friend of mine called me.  He was helping his daughter who invests in real estate with financing a property for a “flip.”  Someone else has selected another title company, and he asked me to assure that the title would be clear.

I told him, as I have advised on this blog, someone needs to review the deed, and someone needs to carefully review both the title insurance policy and the exception documents referenced therein.

So, he asked the title insurance company for a copy of the policy pro forma, or a commitment for title insurance and the exception documents.

The clueless clerk at a title company

In return, a clueless clerk at said title company sent a blank form policy, with only pre-printed Schedule B-1 exceptions. These are such standard things as taxes not yet due and payable, things a  survey would disclose, and mechanics liens. Many of these pre-printed exceptions can be deleted by means of a Title  Affidavit provided by the seller at closing, but none of them reveal the exceptions to be taken by a title examination of the specific property.

In other words a title company would be crazy to issue such a policy, as it would insure over actual title deficiencies that would create a loss to the title company to remove such restrictions or pay for any “damage” arising from their existence.

An innocent inquiry to get the real policy

Therefore, I wrote to the clueless clerk as follows:

I have reviewed the documents you sent to my client in this matter, and candidly they are not at all helpful or informative.

 A title policy is only as good as its terms, and the terms of a title policy are dependent on the exceptions to coverage set forth in Schedules B-1 and B-2.  The form you sent is just a blank form.  Now, if you are promising to issue a policy with no exceptions, except those pre-printed, that is great.  Just confirm that.  If not, we will need to (a) know exactly what the exceptions are to the policy being issued (i.e, this actual policy to this actual buyer for the purchase price for this actual property) and (b) see and read the exception documents, meaning we will need copies of them.

 Let me know and thank you.  

I thought it was pointed, but polite.

What just happened?

Her response simply stunned me:

Every policy that we issue is free of exceptions except for those that are pre-printed.

I hope this clarifies the issues laid out so we can remain on schedule.

This is amazing. Her response indicates that on every policy (not just this one) that they write, they don’t bother to perform a title examination, and make no exception to coverage.

I mean this is fantastic for buyer, but not the underwriter. Every title problem magically is insured over, and a buyer is always assured they have fee simple, unencumbered, absolutely clear title in every closing.

I want some of that coverage!

Conclusion

So, I told my client: “Close”! You can’t get coverage that good from me or any other title company.  That is simply amazing.

[Now, notwithstanding her promises, I look forward to seeing the language of the actual policy when it is delivered to my client, and my subsequent insistence that the title company issue precisely the coverage that had been promised. This should be fun!]

Yes, that really happened this week.

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