Last week, opening statements were held in the retrial of State House vote-buying case. As we discussed on this blog, the case was first tried last summer but ended in a mistrial after jurors were unable to reach a unanimous decision on all charges.

VictoryLand owner Milton McGregor, Sen. Harri Anne Smith of Slocomb, former state Sens. Larry Means and Jim Preuitt, lobbyist Tom Coker and former Country Crossing casino spokesman Jay Walker face charges accusing them of offering, or accepting, cash and campaign contributions in connection with a proposed gambling bill.

According to both prosecutors and defense attorneys, the new trial won’t be a rehashing of the arguments made this summer. “I think it’s going to be different. I think you’ll hear some different things from the government and also some different things from us,” lawyer Joe Espy said.

Like the first trial, the government will have to explain to the jury the difference between bribery and permissible campaign contributions. Then, prosecutors must convince the jury that McGregor and the other defendants did indeed break the law.

The case is expected to last up to two months.

Source: Birmingham News

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

Jefferson County can’t seem to stay out of the courtroom. Bank of New York Mellon has filed a business lawsuit against Alabama’s bankrupt county, accusing it of improperly cutting the amount of money owed to holders of its sewer-system debt.

Specifically, BNY alleges that the county is improperly charging attorneys’ fees and other costs against the system’s net revenue. The bank is an indenture trustee of $3.6 billion of sewer system warrants, tasked with managing the administrative aspects of loans like payments.

According to the lawsuit, the county has violated the creditors’ rights by reducing the system’s net revenue due creditors by deducting certain costs, which include depreciation and amortization, money for planned capital expenditures and other non-operating costs.

The lawsuit comes just after the bankruptcy court handed control of the sewer system back to county officials from a state-appointed receiver. U.S. Bankruptcy Judge Thomas Bennett required county officials to continue payments to creditors from the system’s revenue but did dictate the amounts to be paid.

The BNY lawsuit asks Bennett to bar Jefferson County from charging any expenses beyond labor and other customary operating costs from the monthly amounts due to sewer system warrant holders.

Source: Reuters

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

Opponents of Alabama’s tough immigration law are seeking to form powerful alliances with the business community in hopes of overturning the law. They are asking local manufacturers to help them push for a total repeal of the law during the upcoming legislative session.

As reported by the Huffington Post, a group of advocacy organizations, including the NAACP, the National Council of La Raza, the United Auto Workers and the Alabama-based Southern Poverty Law Center, are hoping to meet with the Alabama executives of Daimler AG, Honda, and Hyundai to discuss the social and financial ramifications of the law and the image of companies doing business in the state.

“We’re not asking the automakers to engage in a high-profile public campaign,” Wade Henderson, president of the Leadership Conference on Civil and Human Rights, said in a conference call. “We’re asking them to use their influence; we’re asking them to their persuasive voice and their impact on the economy to encourage legislators to do the right thing.”

While the groups are looking for support from all Alabama businesses, its focus on the auto industry is likely in response to the carmakers first hand encounters with the unintended consequences of the tough new law. As we reported on this blog, foreign executives from Honda and Mercedes-Benz were arrested last year after they were pulled over by police and failed to produce sufficient documentation.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

As Birmingham business attorneys, we are not surprised to see the attempted takeover of Birmingham-based Vulcan Materials Co. is headed to the court. A Delaware Chancery Court judge is scheduled to hear the business lawsuit on Feb. 28. The issue before the court the legality of Martin Marietta Materials Inc.’s hostile takeover bid.

As we have been discussing on the blog, the contentious takeover bid has spurred a number of different lawsuits, including those by Vulcan shareholders who favor the deal. In the Delaware lawsuit, Martin Marietta is seeking a declaration that a non-disclosure agreement between it and Vulcan will not stand in the way of its takeover bid.

In its countersuit, Vulcan contends that Martin Marietta used confidential information in in hostile takeover bid. Specifically, the Alabama company alleges Martin Marietta violated a letter of agreement and separate confidentiality agreement when it used private information from Vulcan to publicly argue the benefits of a merger last December. It argues that these breaches should bar any takeover attempt.

Vulcan further argues that Martin Marietta sought to “cover its tracks” by filing the current lawsuit that seeks a declaration that it complied with the letter of agreement.

Source: Birmingham Business Journal

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

If you are thinking about starting an Alabama business, basing it out of your home is often the most affordable option. In fact, more than half of all U.S. businesses are based out of an owner’s home. However, it is important to understand that you must still take certain steps to ensure that your home-based business complies with all applicable state and local regulations.

One of the most important concerns is zoning. Some Alabama municipalities have strict rules on the types of businesses permitted to operate out of a home, particularly in residential zones. Therefore, it is important to determine if you can legally operate out of your home.

For instance, many zoning laws:

• Prohibit exterior physical changes to the home for the purposes of conducting business;
• Prohibit outside business activities, storage, or displays, and/or restrict or prohibit signage or commercial vehicles;
• Restrict the numbers of visitors to a home-based business;
• Restrict the number of employees working in the home or prohibit employees altogether; and
• Restrict business parking or require that additional parking be provided.

Luckily, many local governments are becoming more willing to work with small business owners that seek to work out of their home.

Another significant concern is insurance. You should contact your insurance agent to determine if your homeowner’s insurance will cover the property and liability involved in your new business. Often, you will be able to obtain a rider on your existing policy, but it’s always best to find out before you invest any significant money into your home business.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

In many ways, business relationships are just like a marriage. They are great when they work, but messy if things don’t go well.

When resolving Alabama business disputes is rarely easy, there are steps you can take to make the process a bit less painful.

Remain Objective. As with any type of dispute, it is often difficult to keep emotions in check. It is understandable given that owners often invest significant time and money into the business. However, emotions can often cloud our judgments and get in the way of a solution.

Address the Problem Promptly. While minor issues may resolve on their own, major issues generally only get worse over time and can end up destroying the business. Therefore, it is important to address disputes quickly and openly.

Prepare Ahead. Having a plan in place to deal with disagreements is the best way to avoid litigation. For instance, having a buy-sell agreement in place can avoid a messy business breakup.

Ask for Help. In many cases, the dispute cannot be resolved without the assistance of an Alabama business attorney. Often, a mediator can also help broker an equitable agreement between business owners.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

A bill up for consideration in the upcoming session of the Alabama Legislature would make it easier for Alabama businesses to challenge tax assessments. The bill, sponsored by Paul DeMarco (R – Homewood), is intended to streamline the process.

According to the Birmingham Business Journal, DeMarco said the bill will boost Alabama’s competiveness by reducing business costs associated with unemployment, workers’ compensation, and tax appeals.

In essence, the Alabama Taxpayers’ Bill of Rights II would create an Alabama Tax Appeals Commission, which would be tasked with hearing disputes over assessments involving income, sales, use, rental, and lodging taxes issued by the Alabama Department of Revenue, by cities or counties, or by private auditing firms they employ. The bill also abolishes the Administrative Law Division of the Department of Revenue and transfers its personnel, equipment and functions to the new commission.

Several business groups, including the Business Council of Alabama, the Alabama Retail Association, and the Alabama Bankers Association, have endorsed the bill.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

As we have been discussing on this blog in recent months, Alabama’s tough new immigration law has significant legal and economic ramifications for Alabama businesses. In fact, new research, conducted by an economist at the University of Alabama, sets the price tag at $11 billion.

Sam Addy, director of the Center for Business and Economic Research, conducted the cost-benefit analysis. He found that the state’s immigration legislation could cost as much as $11 billion in economic output and another $264.5 million in tax revenue.

While the study says there are potential benefits to the law, including funds saved by not providing benefits to illegal immigrants and increased opportunities for legal residents, the analysis details significant costs to the state’s economy.

Below are a few of the findings:

• Direct and indirect job reductions totaling between 70,000 and 140,000;
• A 1.3 percent to 6.2 percent reduction in the state’s gross domestic product, or between $2.3 billion to $10.8 billion;
• State income and sales tax revenue losses between $56.7 million and $264.5 million, along with between $20 million and $93.1 million in losses to local tax collections.

“Economies are demand-driven, so any policy, regulation, law, or action that reduces demand will not contribute to economic development no matter how well-intentioned,” Addy said in a statement.

Source: The Birmingham News

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

The ongoing business litigation between the University of Alabama and sports artist Daniel Moore took central stage last week in an Atlanta courtroom. The artist, famous for his paintings of Alabama football, is facing trademark infringement claims by the university.

Moore’s paintings and prints depict some of the most famous victories in Alabama sports history, including The Goal Line Stand from the 1979 Sugar Bowl against Penn State. He is currently working on The Shutout from last season’s national championship win over LSU.

While Moore claims that his work is protected under the First Amendment, Alabama maintains that Moore should pay royalties for the ability to use the Crimson Tide’s trademarks, name, colors, indicia, and logos.

In 2009, a federal judge found that Moore’s paintings and prints were protected but that other merchandise that featured those painting was not. Both sides appealed.

The appellate decision is expected to have a significant impact on sports licensing. The overall retail market for collegiate licensed products is valued at $4.3 billion a year, of which sports art comprised about one percent.

Both Moore and Alabama also have powerful allies. The Collegiate Licensing Company, which represents Alabama and many other big name schools, wrote a friend-of-the-court brief on the university’s behalf. Meanwhile, Moore has the backing of some 30 law school professors.

We will, of course, keep you updated.

Source: CBS Sports

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

With all of the talk about Martin Marietta Materials Inc.’s proposed hostile takeover of Birmingham-based Vulcan Material’s Co., we want to give our readers a brief overview of the federal laws regarding mergers and acquisitions.

As we mentioned last week, the federal government has recently stepped up its scrutiny of proposed mergers, leaving many businesses wary of large-scale mergers and acquisitions. However, mergers can still be a great way for Alabama businesses to grow and expand into new areas.

In fact, each year, the Federal Trade Commission and Department of Justice review over a thousand merger filings. According to the FTC, 95 percent of merger filings present no competitive issues.

What mergers will be questioned?

Merger law bars mergers that may lead to harmful effects. Section 7 of the Clayton Act specifically prohibits mergers and acquisitions when the effect “may be substantially to lessen competition, or to tend to create a monopoly.” The key question the agency asks is whether the proposed merger is likely to create or enhance market power or facilitate its exercise. Issues like higher prices, fewer or lower-quality goods or services, or less innovation are often considered as well.

Due to their potential impact on the marketplace, proposed mergers between direct competitors (horizontal mergers) often get the closest examination. This was the case with AT&T’s failed efforts to buy T-Mobile USA from Deutsche Telekom AG last year.

What happens when a merger is investigated?

In many cases, the parties are able to resolve competitive concerns by consent agreement, which allows the beneficial aspects of the deal to proceed while addressing the competitive threat. Yet, in some cases, the agency and the parties will not agree on a fix, and the government may go to federal court to prevent the merger pending an administrative trial on the merits of the deal.

Source: FTC

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.