Under the CARES Act, the debt limit to qualify to be a debtor under the new small bankruptcy law has been increased to $7,500,000 for the next year, up from $2,725,625. The new law (known either as the “SBRA” or “Subchapter 5”) is a way for small businesses to go through reorganization in chapter 11...
Up until a week ago, most of you had never heard the phrase “force majeure.” However, I imagine that since then many of you have dusted off your contracts to see if yours contains that clause. What happens if the answer is no? Are you out of luck? Not necessarily. There is a doctrine called...
On April 23, 2020, Hair Cuttery (corporate names Creative Hairdressers, Inc. and Ratner Companies) filed Chapter 11 bankruptcies. CHI has over 800 salons nationwide, with over 10,000 employees. Last year, even though it had over $440,000,000 in revenues, CHI was having difficulties (such as being in covenant (nonpayment) default with it primary secured lender). So,...
In the new reality where we find ourselves, many people have reviewed their contracts to see if there is a “force majeure” clause that will excuse performance until life returns to normal. What if your contract doesn’t have that clause? The next step is to rely on the doctrine of “impossibility of performance.” This is...
Force Majeure – sounds powerful, sounds foreign. Many businesspeople aren’t familiar with this lawyerly term. Should you shrug your shoulders and move forward or pay attention? People often ask me about boiler plate clauses in contracts. They ask—are they necessary? (sometimes). Are they just there so an attorney can make more money? (despite public opinion,...
Most people think the term “attorney’s fee clause” or provision just applies to attorneys. Nothing could be further from the truth. The correct way to think about the attorney’s fee clause or provision is in the context of any contract you might have written for yourself or your business. Any legal dispute you have with...
I was recently talking to a client. I said I was going to start blogging and wanted to know if there any topics he thought would be interesting. I assumed he would want to know about some fascinating aspect of the law, such as confidentiality agreements. What he said is that what he is currently...
Imagine sitting having drinks with someone you’re thinking of doing business with… you’re having a great time, thinking you’ve got a great connection with this person, the ideas are flowing back and forth, you have a similar approach to business and it’s clear there’s the potential for the business relationship to be productive. How do...
Luke Sampson, an attorney at Bovarnick & Associates, is a dedicated VIP volunteer and friend. In his private practice Luke handles small to mid-sized business and general corporate litigation and business bankruptcy. Since taking his first volunteer case in 2013, Luke has assisted five VIP clients in both homeownership and divorce matters. Luke has also...
You can’t afford to wait until a crisis emerges to start planning. Did you know a third of all businesses will be sued, at an average cost of over $100,000? Don’t risk everything you’ve worked so hard for: budget your legal costs now, with Legal Access. The Legal Access program offered by Bovarnick and Associates...