Bits & Bytes
August 26, 2003
News and developments in legal tech.
Insurance Company Insolvencies: A Primer for Corporate Policy Holders
August 26, 2003
The past several years have seen some major property-casualty insurance companies on the ropes and worse, far worse. Home Indemnity Company and Legion Insurance Company, two notable insolvency casualties, have left their policyholders without the full protection paid for and required. Sadly, they pale in comparison to the train wreck that is Reliance Insurance Company. The demise of Reliance has had repercussions for insurance buyers and others all over. Once a fixture in the directors' and officers' ('D&O') liability insurance marketplace, among other insurance markets, Reliance is now well underway in the liquidation process, after a brief and unsuccessful attempt at 'rehabilitation.' The Reliance debacle has left policyholders scrambling to protect themselves while state insurance departments wrangle with one another in an attempt to snap up a share of the inadequate pool of assets left behind in the collapse of Reliance.
NEWS BRIEFS
August 26, 2003
Highlights of the latest franchising news from around the country.
Five Keys to Assessing Economic Damages
August 24, 2003
The proper assessment of economic damages, once liability is determined, is one of the most crucial elements of the legal process. In fact, even before a case ever enters the courtroom, an accurate estimate of economic loss may pave the way for a settlement, saving both sides time and expense.
E-Commerce Rising
August 22, 2003
What does a cash-register ka-ching sound like online? It's the tune of $45.6 billion. That's the estimated e-commerce sales ring-up for 2002, the U.S. Department of Commerce reported in February. The activity represented an estimated increase in total e-commerce revenues from 2001 to 2002 of 3.1%.
Hotline
August 19, 2003
Recent developments of interest to corporate counsel.
Sarbanes-Oxley: Reflections Eight Months Later
August 19, 2003
Since it became the law on July 30, 2002, The Sarbanes-Oxley Act has been the subject of an endless stream of panel discussions, seminars, speeches, articles and media interpretations. It may or may not be a tsunami in the financial markets comparable to the changes brought by the regulatory scheme developed in the 1930s. But the statute and the corollary changes by stock exchanges to their listing requirements will alter the relationships between the participants in the financial markets in significant and long-term ways. This article highlights and places in context the changes wrought thus far, and concludes by noting areas in which further change is yet possible.
Trademark Dilution: Likelihood of Confusion Among the Courts?
August 18, 2003
As it stands now, if your company brings a trademark dilution claim in federal court, you are risking a ruling that your company's brand is not diluted or, even worse, 'not famous.' There is currently a great deal of confusion among the courts over the concept of trademark dilution, and none of the recent decisions are helping to clear the air. Courts across the country continue to struggle with the very concept of trademark dilution and its application. Issues the courts are struggling with include: How much fame is required for a mark to be 'famous' under the statute? What marks deserve protection under the Federal Trademark Dilution Act (FTDA)? What factors should a court consider when evaluating a dilution claim? Is proof of actual harm or injury required in order to prevail on a dilution claim? These issues are not easily resolved, and it is only the issue of proof of actual harm or injury on which the Supreme Court will provide guidance this spring. In light of these other continued uncertainties, companies should carefully analyze their case before putting their most prized brands at risk.
A Broker's Perspective: How to Position Your Company for Success in Subleasing Office Space
August 18, 2003
The ensuing softening of the commercial real estate market fueled by massive corporate restructuring, downsizing and changes in geographic locations has led to a flood of sublease space being placed on the market. As recently reported in the National Real Estate Investor, there are 124 million square feet of office space being offered for sublet today, which equates to approximately 25% of total available office space nationwide. <i>See</i> Parke Chapman and Matt Valley, 'The Sublease Overhang: A 124 Million Square Foot Headache', National Real Estate Investor (February, 2003). In order to mitigate the cost of leasing unused space, companies are subletting, or similarly, positioning their excess space so that a favorable lease termination fee or a lease buy out can be negotiated with the existing landlord. As tenant representatives, we are often retained by companies to assist with their disposition efforts. We recommend that the following subleasing strategies be considered for mitigating a company's remaining leasehold obligation effectively.
Strategies For No-Grief Rent Relief
August 18, 2003
Recent downturns in the economy have increasingly found retail and office tenants in the position of having to seek rent relief in varying degrees from their landlords in an effort to overcome short-term financial difficulties. While the landlord finds unpalatable the prospect of reducing a rental income stream to which it has become accustomed, the prospect of having a vacancy in a shopping center, with its attendant adverse effect on neighboring tenants, as well as the additional costs involved in replacing the tenant through the payment of brokerage fees and lease inducements, may be even more unpalatable.
