THE CLIENT’S UNDERLYING CONTRACT: WHY THE FACTOR SHOULD REVIEW IT AND WHAT THE FACTOR SHOULD DO IF YOUR CLIENT DOES NOT HAVE ONEBruce E, Loren, Esq. and Allen J. Heffner, Esq. | May 10 2018

It is a basic tenet of factoring law that the Factor purchases its Client’s receivables and the Client, in turn, assigns the Factor the right to collect those receivables. Pursuant to the UCC §9-404, unless an Account Debtor has made an enforceable agreement not to assert defenses or claims, the rights of the Factor are subject to all terms of the agreement between the Account Debtor and the Client and any defense or claim in recoupment arising from the transaction that gave rise to the underlying contract. Simply put, the Factor stands in the shoes of its Client and is subject to the terms and conditions of any underlying agreement between the Account Debtor and the Client. As such, it is important that a Factor familiarize itself with the terms and conditions of the Client’s underlying agreement, if one exists.

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CAUTIONS TO EMPLOYEE LEASING FOR THE CONTRACTORBruce E. Loren, Esq. and Kyle W. Ohlenschlaeger, Esq. | May 09 2018

Employee leasing arrangements offer a number of benefits and are used by many contractors to manage payroll and workers’ compensation requirements. However, contractors choosing to use employee leasing arrangements may not recognize some of the risks associated. This article explores the risks of employee leasing arrangements and provides a practical alternative to reduce those risks and potentially reduce costs. Note that this article does not discuss temporary labor companies, who are more like subcontractors and do not come with the risks described below.

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OSHA Citations and “Repeat” Violations Bruce E. Loren, Esq. and Cristina E. Groschel, Esq. | May 08 2018

How much time must pass for violations to clear the “repeat” classification hurdle?A recent decision reminds us that there is no limitation period.

Under current law, there is an enhanced penalty for “repeat” violations of OSHA rules and regulations.While the law does not specify a time limitation for what constitutes a “repeat” violation, OSHA, like many other administrative agencies, relies upon a Field Operations Manual (“FOM”) to provide guidance to its field offices.Since these FOMs are published, they also provide guidance to employers.

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Avoiding Change Order DisputesBruce E. Loren, Esq. and Michael St. Jacques, Esq. | May 08 2018

Change orders amend the original construction contract.Typically, the change is to the contract sum, scope of work, contract time or completion date. A change order is simply a mini-contract that modifies a few items in the contract, and therefore, change orders should follow all of the typical formalities.

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CAUTION TO GENERAL CONTRACTORS – FINAL PAYMENT AFFIDAVITS AND NOTICES OF CONTEST OF LIENBruce E. Loren, Esq. and Kyle W. Ohlenschlaeger, Esq. | Apr 02 2018

We recently prevailed at trial where we defended an owner against a construction lien foreclosure claim brought by a general contractor. Our defense was based upon the general contractor’s failure to timely provide a contractor’s final payment affidavit to the owner. The time for the general contractor to furnish the affidavit had been shortened by the owner’s recording of a Notice of Contest of Lien. The outcome of the case serves as a reminder to general contractors of their responsibilities with respect to both final payment affidavits and notices of contests of lien. Even armed with the information below, because of pitfalls notices of contest of lien create, we recommend that any contractor (general or sub) contact an attorney as soon as they discover that an owner has filed a notice of contest of the contractor’s lien.

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Cybersecurity Compliance: Small Businesses Need to Protect DataBruce E. Loren, Esq. and Michael St. Jacques, Esq. | Mar 26 2018

In January we published an article highlighting the importance of obtaining a “cyber” liability insurance policy. This article provides an overview of the types of data that businesses are required to protect, the growing body of regulations that businesses must comply with, survey results identifying primary cybersecurity threats and resources to help evaluate your company’s vulnerability to cyber-threats.

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Cybersecurity Compliance: Small Businesses Need to Protect DataBruce E. Loren, Esq. and Michael St. Jacques, Esq. | Mar 26 2018

In January we published an article highlighting the importance of obtaining a “cyber” liability insurance policy. This article provides an overview of the types of data that businesses are required to protect, the growing body of regulations that businesses must comply with, survey results identifying primary cybersecurity threats and resources to help evaluate your company’s vulnerability to cyber-threats.

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