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Features

What's Your <i>IQ</i>? Image

What's Your <i>IQ</i>?

Emile Loza

Transactional attorneys must ask and answer a deep and relevant question: 'On what does it depend?' If, as Sir Francis Bacon wrote, knowledge is power, then the answer to that 'what' in the question lies in an attorney's information quotient, or IQ.

Features

Independent Corporate Investigations Image

Independent Corporate Investigations

Marjorie J. Peerce & Peggy M. Cross

In this age of regulatory and prosecutorial focus on corporate compliance, companies increasingly are relying on special outside counsel to conduct internal investigations into potential wrongdoing. Sometimes, these investigations are prophylactic: A company may want to understand the consequences of its current hiring practices so it can develop standard operating procedures to better ensure compliance with anti-discrimination laws. Because this sort of proactive, self-reflective investigation generally proceeds without outside scrutiny, counsel has the time and space to conduct a deliberate investigation.

The Not-So-Simple Employee Disclipline Matter Image

The Not-So-Simple Employee Disclipline Matter

Philip M. Berkowitz

In the new age of the whistleblower, an employment lawyer who one day advises on a routine employee discipline or discharge may the next day find him- or herself directing a multi-disciplinary investigation of alleged corporate malfeasance, guiding a team of forensic accountants, private investigators, and public relations experts.

The Leasing Hotline Image

The Leasing Hotline

ALM Staff & Law Journal Newsletters

Highlights of the latest commercial leasing cases from around the country.

Features

Your Best Worker Can Become Your Worst Nightmare Image

Your Best Worker Can Become Your Worst Nightmare

David C. Henderson & Matthew E. Feiner

Although difficult to imagine, your best worker may hold the key to your company's worst security nightmare. Technologically armed employees who routinely use BlackBerry devices, personal digital assistants, laptops, and tiny flash drives to transport critical information to and from the office can wreak havoc on a corporation '' with no intention to do so.

Features

Revisiting Credit Support in Early Sale Transactions Image

Revisiting Credit Support in Early Sale Transactions

James H. Marshall

The current popularity of real estate as an investment class has fostered a favorable environment for the sale of shopping centers, among other properties. With demand seeming to outstrip supply and competition fierce among institutional purchasers, many shopping centers are now sold before the retail spaces therein are fully leased and income producing. Because institutional purchasers typically require a minimum level of return on their investment dollar, they typically will not accept full responsibility for the completion of project leasing. Accordingly, in such early sale transactions, sellers frequently retain some measure of post-closing leasing risk.

You Thought You Had a Radius Clause: Wells Fargo v. Diamond Point Plaza May Change Your Mind Image

You Thought You Had a Radius Clause: Wells Fargo v. Diamond Point Plaza May Change Your Mind

Gary A. Goodman & Elizabeth A. Gable

A landlord secures an anchor tenant with a big-name, stable, and successful chain store. The landlord negotiates that a percentage of this successful tenant's gross sales out of the landlord's location will constitute a portion of the rental payments. In order to protect his percentage rent, the landlord ensures that the lease contains a provision that (it thought) would forbid the tenant from opening another store in close proximity to the landlord's property. Therefore, the landlord has sufficiently guaranteed not only a base rental payment, but also a portion of the tenant's success, and it is confident the tenant will be very successful in the area. The landlord is thrilled, right? Maybe not. New case law indicates that courts may interpret the landlord's lease provision protecting against a new store, a radius clause, in a manner different from the way the landlord had intended.

Severance Waivers Are Endangered Species Image

Severance Waivers Are Endangered Species

Karl G. Nelson & Samantha A. Ferris

When involuntary employment terminations become necessary, employers often seek protection from possible post-employment claims by conditioning severance pay on the signing of a general release and agreement not to sue. As a general rule, such waivers are enforceable if they are 'knowing and voluntary.' Less clear, however, is under what circumstances an employer may condition severance payments on a promise by the departing employee that he/she will not pursue a charge with the Equal Employment Opportunity Commission (EEOC) in connection with an allegation of discrimination, harassment, or retaliation.

Features

In the Spotlight: Avoid the Consequences of Improperly Drafted Premises Descriptions Image

In the Spotlight: Avoid the Consequences of Improperly Drafted Premises Descriptions

Jack Garson

An improperly drafted description of the premises can produce unintended results such as changes in the rent, the granting of unintended tenant rights, or even termination of the lease.

Features

Pitching Green: The Benefits of Green Technology and Sustainable Building Image

Pitching Green: The Benefits of Green Technology and Sustainable Building

James T. Mayer & Jonathan E. Furr

Every successful entrepreneur understands that you must know your audience before making a business pitch. This same cardinal business rule applies to commercial office developments and renovations; a developer or owner interested in pursuing a green building project needs to be prepared to justify the green rationale to different audiences having a stake in the project. Investors and lenders will want to know how the green components impact development and operational costs. Prospective tenants will have an entirely different focus &mdash; they will want to know how the green features will enhance the company's image or impact employees' use of the space.

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  • Private Equity Valuation: A Significant Decision
    Insiders (and others) in the private equity business are accustomed to seeing a good deal of discussion ' academic and trade ' on the question of the appropriate methods of valuing private equity positions and securities which are otherwise illiquid. An interesting recent decision in the Southern District has been brought to our attention. The case is <i>In Re Allied Capital Corp.</i>, CCH Fed. SEC L. Rep. 92411 (US DC, S.D.N.Y., Apr. 25, 2003). Judge Lynch's decision is well written, the Judge reviewing a motion to dismiss by a business development company, Allied Capital, against a strike suit claiming that Allied's method of valuing its portfolio failed adequately to account for i) conditions at the companies themselves and ii) market conditions. The complaint appears to be, as is often the case, slap dash, content to point out that Allied revalued some of its positions, marking them down for a variety of reasons, and the stock price went down - all this, in the view of plaintiff's counsel, amounting to violations of Rule 10b-5.
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