Litigation
June 27, 2005
Recent rulings you need to know.
Domestic Partner Wins Share of Child's 9/11 Benefits
June 27, 2005
A New York State appellate panel upheld a Workers' Compensation claim that will result in a domestic partner sharing benefits deriving from 9/11 with the decedent's child. The consequence of the decision is that Paul Innella's 6-year-old daughter will lose some Workers' Compensation death benefits to a woman who says she was engaged to Mr. Innella. The woman is not the child's mother. "[O]ne certainly could debate the equities of the statute," Justice Crew wrote for a unanimous panel. Nonetheless, the justices said, the provision survives constitutional scrutiny.
News Briefs
June 27, 2005
Highlights of the latest franchising news from around the country.
Winds of Regulatory and Legislative Change in Canada
June 27, 2005
The impetus for greater international harmonization in the law of pre-sale franchise disclosure is about to get a boost in Ontario, Canada. At press time, financial statements to be attached to compliant disclosure documents under Ontario's Arthur Wishart Act ("Franchise Disclosure"), 2000 ("The Wishart Act") are required to be prepared only in accordance with generally accepted auditing standards ("GAAS") — if audited — or, if not audited, then prepared under the review engagement standards in accordance with generally accepted accounting principles ("GAAP") set out in the Canadian Institute of Chartered Accountants' Handbook ("CICA Handbook"). No other standards are currently acceptable.
How 7-Eleven Developed a New System-Wide Franchise Agreement
June 27, 2005
In 2004, 7-Eleven, Inc. offered its entire U.S. franchise network a new franchise agreement. More than 96% of the franchisees representing its 3400 franchised stores signed the new agreement. The plans, process, and activities that were a part of this endeavor and the experiences developing and implementing this new agreement offer insight to both franchisors and franchisees when planning system-wide changes and/or new franchise agreements.
Court Watch
June 27, 2005
Highlights of the latest franchising cases from around the country.
The Challenge of Electronic Records
June 27, 2005
Legal standards regarding electronic discovery and document retention have recently undergone a rapid transformation. Increased regulatory oversight of corporations and resulting record-keeping obligations, coupled with the increasing volume of electronic communication, have created new challenges with regard to document retention and production. More than 99% of information is now being created and stored electronically. Anything that can store, transmit, replay or access electronic data may potentially hold useful corporate records and electronic evidence. Recently, courts and regulators have issued a multitude of new obligations requiring document retention that attempt to define and reconcile the duties of parties and counsel with regard to electronic documents as the judiciary struggles to keep pace with technology.
Compliance in the Era of 'Undersight'
June 27, 2005
The thesis of this article is that the new civil and criminal whistleblower provisions of Sarbanes-Oxley (SOX), coupled with growing acceptance of whistleblowing in both the law and popular culture, may create a climate in which employees more frequently engage in "undersight" to report violations of law or policy. "Undersight" is a term this author has coined to describe corporate employees who witness potential fraud first-hand and voice their concerns, in contrast with "oversight" through which corporate outsiders attempt to detect fraud relying on second-hand information.
