Courthouse Steps
Recently filed cases in entertainment law, straight from the steps of the Los Angeles Superior Court.
<b>Clause & Effect</b>Enforcement of Contestant Confidentiality Agreements
With the increase in 'Survivor'-type reality TV shows ' and competition between program producers ' has come the need for greater protection of production secrets. Applicants and contestants for such reality programs are often asked to sign confidentiality agreements to prevent trade secrets from being divulged. But how binding is a confidentiality agreement if a contestant accuses a producer of manipulating a reality show's outcome?
IN THE MARKETPLACE
Central Leasing Corporation of Birmingham, AL has named Barry Thomas as credit manager. Formerly vice president and group manager at SouthTrust Bank, Thomas will be responsible for overseeing the credit department for the commercial leasing and finance company. In addition, he will also be responsible for managing day-to-day operations.
An Overview of The Terrorism Risk Insurance Act
The Terrorism Risk Insurance Act of 2002 (the Act) was signed by President Bush on November 26, 2002. Lessors should be familiar with the Act as it provides protection against certain terrorist threats and affects multiple lines of insurance coverage they may want from lessees. The Act also requires awareness of new changes in lessors' insurance documentation and coverage.
Automobile Lessors Beware: Vicarious Liability in Three States
A Rhode Island Supreme Court decision has caused lessors to think twice about leasing motor vehicles in the State of Rhode Island. In <i>Oliveira v. Lombardi</i>, 794 A.2d 453 (R.I. 2002), the Rhode Island Supreme Court held that two automobile leasing companies may be held vicariously liable under Rhode Island's vicarious liability statutes for the negligence of drivers operating motor vehicles titled in the leasing companies' name.
Industry Awaits Regulations under USA Patriot Act
The USA Patriot Act was signed into law by President Bush on October 26, 2001 (the 'Enactment Date'). Its stated purpose is to enable law enforcement officials to track down and punish those responsible for the 9/11 terrorist attacks and to protect against any similar attacks.
IN THE MARKETPLACE
Highlights of the latest equipment leasing news from around the country.
Recharacterization: The Hidden Risks
As described last month, the lease is the second element of the tripartite lease transaction. (The tripartite transaction in question consists of two elements and three parties: the first element involves the transfer of equipment from a supplier to a finance lessor, and the second element consists of the lease of such equipment from the finance lessor to the lessee with a supplier support guarantee.) The hidden recharacterization risk is embedded in the first element, that is the transfer of title of the equipment from the supplier to the finance lessor. Depending upon the nature and extent of a supplier guarantee that may be required to support the lease in these tripartite transactions, this transfer may be considered by a reviewing court as a loan instead of a sale.
