CNN provides a summary of the proposed $42 billion bill aimed at helping small businesses, which has been sent to the President for his signature.
For more information contact Theodore F. Claypoole.
The Pennsylvania Department of Treasury is offering amnesty from penalties and interest to unclaimed property holders who voluntarily come into compliance with Pennsylvania’s Disposition of Abandoned and Unclaimed Property Law before October 31, 2010. Businesses and tax-exempt entities, which hold unclaimed property, are required to file an unclaimed property report with the Department of Treasury each year.
For information on how to participate in the Department of Treasury’s amnesty program, please contact Theodore F. Claypoole.
On July 22, 2010, Attorney General Tom Corbett announced legal action against various home improvement contractors for violations of Pennsylvania’s Home Improvement Consumer Protection Act. The Press Release can be found on the Attorney General’s website.
For information on how to comply with Pennsylvania’s Home Improvement Consumer Protection Act, please contact Theodore F. Claypoole.
As a follow up to my March 26, 2010 post on the new Uniform Construction Code provisions in Pennsylvania that mandate sprinkler systems in new homes, the Pennsylvania Builders Association has set up a “Roll Back the Code” website. The issue appears not to be with sprinklers themselves, but the requirement and associated cost to include them, especially when hard wired smoke detectors are already mandated by the building codes. The Builder’s Association states that the installation of sprinklers should be the consumer. Whether you agree with the code changes or not, the site contains useful links to the new rule, the obligations builders now face and public commentary on the subject. You can find all the information here or contact Denise Werkley.
Today, April 22, 2010, the final portion of the Environmental Protection Agency’s Lead Paint Renovation, Repair and Painting Rule takes effect. All contracting firms performing renovation, repair and painting projects that disturb lead-based paint in homes, child care facilities, and schools built before 1978 must now be certified, use individuals with accredited training and must follow specific work practices to prevent lead contamination. To become certified, your firm must submit an application and fee payment to EPA and you must ensure that each of your employees working with lead paint is properly trained. In addition to the certification, the owner of the property must be provided with certain disclosures and you will need to properly document receipt. For more information on the new lead paint rules, please contact Denise C. Werkley.
The application and more general information about the Lead Paint Renovation, Repair and Painting Rule can be found at the Environmental Protection Agency’s website.
By: Transactional Department
No matter what the lease says, the mere filing of a bankruptcy by a tenant does not terminate the lease or entitle a landlord to evict the tenant. That being said, if a residential tenant files bankruptcy they are always required to continue paying rent. If they stop paying rent the landlord usually needs to file a motion in bankruptcy court to be allowed to evict the tenant. However, the 2005 changes to the bankruptcy code created an exception to when the automatic stay is imposed for some residential lease matters. If the landlord has received a judgment for possession before the tenant filed bankruptcy, then the automatic stay may not apply and the landlord may be able to continue the eviction without leave of the bankruptcy court. In some instances the tenant will have the ability to file a certification and deposit with the bankruptcy court, which if done timely and properly, can impose the automatic stay for a period of 30 days. Within those 30 days the Debtor would be required to pay all delinquent rent to maintain the automatic stay and prevent eviction. However, if the judgment for eviction is based solely on the expiration of the tenant
After some delay, the Pennsylvania Association of Realtors has released its new 2010 form Agreement of Sale. You can find a sample of the PAR Standard Agreement for the Sale of Real Estate on the Pennsylvania Association of Realtors website.
If you have questions on the new form, please contact Denise C. Werkley in our West Chester office.
In early 2010, the Pennsylvania Builders Association, among others, filed a lawsuit to stop the implementation of a new and updated Uniform Construction Code in Pennsylvania. Copies of the filing are available on the Builders Association website. Among the provisions objectionable to the Builders Association was a provision requiring new single family and townhomes in Pennsylvania to be equipped with sprinklers. The fire sprinkler requirement states that newly constructed townhomes built after January 1, 2010, and all newly constructed one- and two-family homes built after January 1, 2011 must contain a residential fire sprinkler system. The lawsuit sought an injunction asking for the implementation of the Code to be stopped immediately
The Commonwealth Court denied the requested for an injunction earlier this month, meaning that the case will progress and in the meantime, the requirement for sprinklers is in full force. For more details, see this article on the injunction.
If you would like more information on real estate issues in Pennsylvania, please contact Denise Werkley.
Business owners form corporations, limited partnerships and limited liability companies to protect their personal assets from debts, claims and liabilities that can arise out of any business. Although the liability protection afforded by corporations, LPs and LLCs is real and worthwhile, it is far from absolute, and there are numerous exceptions.
Sometimes creditors attempt to “pierce the corporate veil” which is the subject of other blogs on this site which can be found here and here. In addition, representatives of an organization are potentially liable for acts or omissions in which they personally participate as representatives of the organization, under the so-called “participation theory” of liability.
Owners who receive distributions when the organization is insolvent or that render the organization insolvent, or who receive distributions in liquidation of the organization rendering it unable to pay valid claims, may be required to account for and disgorge funds distributed.
There are various state and federal laws that specifically impose liability for certain categories of claims. These include liability for unpaid wages under the Pennsylvania Wage Payment and Collection Law, and liability for “trust fund” taxes, which are taxes that the organization withholds from others and is required to pay over to federal, state or local taxing authorities, such as sales taxes and income, social security and Medicare taxes.
Observing corporate formalities, ensuring that the organization is adequately capitalized, and engaging in sound business entity housekeeping practices can and will bolster the liability protection the law affords. In addition, however, to avoid unexpected personal liability that can arise when a troubled business cannot pay all of its obligations, the owners and the officers are well advised to ensure that the types of claims for which personal liability can be asserted by law are paid in preference to other obligations for which personal liability is not present.
For more information, contact William J. Burke, III.
By: Daniel Dwyer
Read my recent blog about doing business with local government in Pennsylvania.
For more information, please contact Daniel Dwyer.
