The Alabama House of Representatives has approved a bill that would allow lawmakers to rewrite the state constitution to protect a proposed business incentive plan from legal challenge. The underlying plan aims to attract new business to Alabama and encourage existing businesses to expand.

As reported by the Birmingham News, the proposed constitutional amendment, House Bill 159, now goes to the Senate for debate. If the measure passes, it must still be approved by voters in a statewide referendum.

As we discussed in an earlier post, the bill is designed to protect the tax incentive bill from lawsuits based on the state constitution or other laws. That bill, House Bill 160, has already passed the House.

Under House Bill 160, the governor would have the discretion to permit an Alabama business, in return for building a new or expanded facility in Alabama, keep from 50 percent to 90 percent of the state income tax withheld from the pay of people working at the facility.

While the two bills have the support of the business community, the Alabama Education Association opposed the bill, arguing it would take funds away from local schools.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

In the latest development in the hostile takeover bid of Birmingham’s Vulcan Materials, Martin Marietta Materials has announced that it will seek Department of Justice Approval this spring. By doing so, Martin Materials would address one legal hurdle standing in the way of its attempted acquisition of Vulcan.

According to the Wall Street Journal, the company reached an agreement with DOJ to discuss the merger in late April, ahead of Vulcan’s next shareholders meeting in May. At this time, the parties will address the DOJ’s antitrust concerns in an attempt to come to terms on a consent order. If an agreement with the DOJ is not reached in April, the agreement provides that Martin Marietta will not seek to close the transaction prior to mid-August without the consent of the DOJ.

“We believe that both sets of shareholders will be best-served by Vulcan and Martin Marietta commencing active, good-faith negotiations with a view toward reaching mutual agreement on a compelling transaction,” said Martin Marietta President and Chief Executive Ward Nye.

“We are ready and willing to meet with Vulcan and their advisers immediately to accomplish this objective,” he added.

In a statement, Vulcan said, “This timing agreement is a routine procedural step by the DOJ and is fully consistent with our expectations and analysis. We think it’s important for both sets of shareholders to have clarity on the impact of the DOJ process.”

For more information about what the DOJ will be considering at the April hearing, please see our previous post here.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

Many government agencies require that some percentage of their procurements be set aside for small businesses. In fact, federal, state and local governments offer businesses a wealth of opportunity when it comes to selling products and services. Therefore, it is important to know if your Birmingham business fits the bill.

In order to register as a government contractor, you must adhere to industry size standards established by the U.S. Small Business Administration. The Birmingham business may be a sole proprietorship, partnership, corporation, or any other legal form.

The SBA, for most industries, defines a “small business” either in terms of the average number of employees over the past 12 months, or average annual receipts over the past three years. In addition, SBA defines a U.S. small business as a concern that:

• Is organized for profit;
• Has a place of business in the US;
• Operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor;
• Is independently owned and operated; and
• Is not dominant in its field on a national basis.

Since all federal agencies must use SBA size standards for contracts geared towards small business, you will need to determine the NAICS codes that best fit your Alabama business and then determine if you meet size standards for the selected NAICS codes. These tools are available at the NAICS section of the Bureau of the Census website.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

Last week, opening statements were held in the retrial of State House vote-buying case. As we discussed on this blog, the case was first tried last summer but ended in a mistrial after jurors were unable to reach a unanimous decision on all charges.

VictoryLand owner Milton McGregor, Sen. Harri Anne Smith of Slocomb, former state Sens. Larry Means and Jim Preuitt, lobbyist Tom Coker and former Country Crossing casino spokesman Jay Walker face charges accusing them of offering, or accepting, cash and campaign contributions in connection with a proposed gambling bill.

According to both prosecutors and defense attorneys, the new trial won’t be a rehashing of the arguments made this summer. “I think it’s going to be different. I think you’ll hear some different things from the government and also some different things from us,” lawyer Joe Espy said.

Like the first trial, the government will have to explain to the jury the difference between bribery and permissible campaign contributions. Then, prosecutors must convince the jury that McGregor and the other defendants did indeed break the law.

The case is expected to last up to two months.

Source: Birmingham News

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

Jefferson County can’t seem to stay out of the courtroom. Bank of New York Mellon has filed a business lawsuit against Alabama’s bankrupt county, accusing it of improperly cutting the amount of money owed to holders of its sewer-system debt.

Specifically, BNY alleges that the county is improperly charging attorneys’ fees and other costs against the system’s net revenue. The bank is an indenture trustee of $3.6 billion of sewer system warrants, tasked with managing the administrative aspects of loans like payments.

According to the lawsuit, the county has violated the creditors’ rights by reducing the system’s net revenue due creditors by deducting certain costs, which include depreciation and amortization, money for planned capital expenditures and other non-operating costs.

The lawsuit comes just after the bankruptcy court handed control of the sewer system back to county officials from a state-appointed receiver. U.S. Bankruptcy Judge Thomas Bennett required county officials to continue payments to creditors from the system’s revenue but did dictate the amounts to be paid.

The BNY lawsuit asks Bennett to bar Jefferson County from charging any expenses beyond labor and other customary operating costs from the monthly amounts due to sewer system warrant holders.

Source: Reuters

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

Opponents of Alabama’s tough immigration law are seeking to form powerful alliances with the business community in hopes of overturning the law. They are asking local manufacturers to help them push for a total repeal of the law during the upcoming legislative session.

As reported by the Huffington Post, a group of advocacy organizations, including the NAACP, the National Council of La Raza, the United Auto Workers and the Alabama-based Southern Poverty Law Center, are hoping to meet with the Alabama executives of Daimler AG, Honda, and Hyundai to discuss the social and financial ramifications of the law and the image of companies doing business in the state.

“We’re not asking the automakers to engage in a high-profile public campaign,” Wade Henderson, president of the Leadership Conference on Civil and Human Rights, said in a conference call. “We’re asking them to use their influence; we’re asking them to their persuasive voice and their impact on the economy to encourage legislators to do the right thing.”

While the groups are looking for support from all Alabama businesses, its focus on the auto industry is likely in response to the carmakers first hand encounters with the unintended consequences of the tough new law. As we reported on this blog, foreign executives from Honda and Mercedes-Benz were arrested last year after they were pulled over by police and failed to produce sufficient documentation.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

As Birmingham business attorneys, we are not surprised to see the attempted takeover of Birmingham-based Vulcan Materials Co. is headed to the court. A Delaware Chancery Court judge is scheduled to hear the business lawsuit on Feb. 28. The issue before the court the legality of Martin Marietta Materials Inc.’s hostile takeover bid.

As we have been discussing on the blog, the contentious takeover bid has spurred a number of different lawsuits, including those by Vulcan shareholders who favor the deal. In the Delaware lawsuit, Martin Marietta is seeking a declaration that a non-disclosure agreement between it and Vulcan will not stand in the way of its takeover bid.

In its countersuit, Vulcan contends that Martin Marietta used confidential information in in hostile takeover bid. Specifically, the Alabama company alleges Martin Marietta violated a letter of agreement and separate confidentiality agreement when it used private information from Vulcan to publicly argue the benefits of a merger last December. It argues that these breaches should bar any takeover attempt.

Vulcan further argues that Martin Marietta sought to “cover its tracks” by filing the current lawsuit that seeks a declaration that it complied with the letter of agreement.

Source: Birmingham Business Journal

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

If you are thinking about starting an Alabama business, basing it out of your home is often the most affordable option. In fact, more than half of all U.S. businesses are based out of an owner’s home. However, it is important to understand that you must still take certain steps to ensure that your home-based business complies with all applicable state and local regulations.

One of the most important concerns is zoning. Some Alabama municipalities have strict rules on the types of businesses permitted to operate out of a home, particularly in residential zones. Therefore, it is important to determine if you can legally operate out of your home.

For instance, many zoning laws:

• Prohibit exterior physical changes to the home for the purposes of conducting business;
• Prohibit outside business activities, storage, or displays, and/or restrict or prohibit signage or commercial vehicles;
• Restrict the numbers of visitors to a home-based business;
• Restrict the number of employees working in the home or prohibit employees altogether; and
• Restrict business parking or require that additional parking be provided.

Luckily, many local governments are becoming more willing to work with small business owners that seek to work out of their home.

Another significant concern is insurance. You should contact your insurance agent to determine if your homeowner’s insurance will cover the property and liability involved in your new business. Often, you will be able to obtain a rider on your existing policy, but it’s always best to find out before you invest any significant money into your home business.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

In many ways, business relationships are just like a marriage. They are great when they work, but messy if things don’t go well.

When resolving Alabama business disputes is rarely easy, there are steps you can take to make the process a bit less painful.

Remain Objective. As with any type of dispute, it is often difficult to keep emotions in check. It is understandable given that owners often invest significant time and money into the business. However, emotions can often cloud our judgments and get in the way of a solution.

Address the Problem Promptly. While minor issues may resolve on their own, major issues generally only get worse over time and can end up destroying the business. Therefore, it is important to address disputes quickly and openly.

Prepare Ahead. Having a plan in place to deal with disagreements is the best way to avoid litigation. For instance, having a buy-sell agreement in place can avoid a messy business breakup.

Ask for Help. In many cases, the dispute cannot be resolved without the assistance of an Alabama business attorney. Often, a mediator can also help broker an equitable agreement between business owners.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.

A bill up for consideration in the upcoming session of the Alabama Legislature would make it easier for Alabama businesses to challenge tax assessments. The bill, sponsored by Paul DeMarco (R – Homewood), is intended to streamline the process.

According to the Birmingham Business Journal, DeMarco said the bill will boost Alabama’s competiveness by reducing business costs associated with unemployment, workers’ compensation, and tax appeals.

In essence, the Alabama Taxpayers’ Bill of Rights II would create an Alabama Tax Appeals Commission, which would be tasked with hearing disputes over assessments involving income, sales, use, rental, and lodging taxes issued by the Alabama Department of Revenue, by cities or counties, or by private auditing firms they employ. The bill also abolishes the Administrative Law Division of the Department of Revenue and transfers its personnel, equipment and functions to the new commission.

Several business groups, including the Business Council of Alabama, the Alabama Retail Association, and the Alabama Bankers Association, have endorsed the bill.

Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.

In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.

To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.