OFF THE RECORD
October 2020
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For Businesses, Entrepreneurs & Organizations |
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Restaurants Face Challenges Dealing with
Food Delivery Services
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The COVID-19 pandemic should have been a golden opportunity for food delivery apps such as Grubhub, DoorDash, Uber Eats, and Postmates. Thanks to months of lockdown and limited dining options, both restaurants and customers have come to rely on takeout and delivery. But instead of filling a valuable need in the marketplace, the reality of using online delivery services has been fraught with problems, and some restaurants say these services threaten their very survival.
As the food delivery apps battle for market share, restaurants are often finding themselves the unwitting victims. Fees paid by restaurants can be exorbitantly high, ranging from 10% to 30% of the cost of the order. For smaller independent restaurants, especially those who believe they have no choice but to use online delivery services to survive, the costs are so high that some may be forced out of business.
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What You Need to Know About Indemnification Clauses - Part 2 |
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In a previous article, we discussed the importance of the indemnification clauses in contracts. To briefly recap, to “indemnify” someone means that one party agrees to compensate the other party for losses that the other party may suffer when things go wrong, especially for losses caused by injuries to a third party. An indemnification clause allocates and shifts potential risk in a contract from one party to another. In this article, we will delve into a discussion of the types of losses that are typically covered by an indemnification provision, the parties who are being indemnified, and what triggers a duty for one party to indemnify the other.
Let’s start with an example:
Company A enters into a contract with Company B to remove some dead trees from property owned by Company A. The terms of the contract provide that Company B will indemnify Company A for all losses, damages, judgments, rulings and settlements, including costs and attorney’s fees, incurred by Company A in connection with Company B’s performance of its obligations under the contract, as long as Company A has not been negligent. While removing trees from Company A’s property, a tree accidentally falls on a car that happens to be parked in the parking lot located on Company A’s property, causing significant damage to the car. The owner of the car, or the owner’s insurance company, files a lawsuit against Company A for the damage to the car.
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Small Business Administration & Treasury Release Simplified Forgiveness for Small PPP Loans |
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The U.S. Treasury and Small Business Administration (“SBA”) recently issued updated guidance for small businesses that borrowed $50,000 or less under the Paycheck Protection Program (“PPP”). Business owners with PPP loans that are below this threshold may be eligible to complete the simplified SBA Form 3508S when applying for loan forgiveness. Borrowers that, together with affiliates, received PPP loans totaling $2 million or greater are not eligible to use the simplified form.
PPP is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and authorized the U.S. Treasury to fund loans for qualifying businesses to help cover costs including payroll, mortgage interest, rent and utilities in response to the pandemic. As part of the program, a qualified borrower is eligible for forgiveness of loans received. According to Treasury Secretary Steven T. Mnichin, “[The Treasury Department] is committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds.”
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For Individuals & Families |
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Intentional Interference with Inheritance |
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Recently, in the case of Barclay v. Castruccio, the Maryland Court of Appeals recognized, for the first time, a claim for intentional interference with an inheritance or gift.
This cause of action can arise when a claimant (“plaintiff”) is deprived of an inheritance or gift as a result of wrongdoing by another (“defendant”) against a third party that prevents the third party from providing the plaintiff a gift or inheritance.
Prior to the Barclay decision, while a plaintiff may have been the party most injured by a defendant’s wrongdoing (and the defendant may have intended that injury), a plaintiff could not recover from the defendant directly because the wrongdoing was committed against someone else. The third-party, the immediate victim of the defendant’s wrongdoing, may have died by the time the wrongdoing is discovered. Now, as a result of the Barclay case, the plaintiff may seek relief directly against the defendant wrongdoer.
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Child Support Law Changes in Maryland |
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Beginning October 1, 2020, a new law in Maryland will change the way child support is calculated for families in which the child or children spend ninety-two or more overnights per year with each parent. Pursuant to the prior law, a child had to reside with the non-primary custodial parent for at least 128 overnights per year (or 35% of the year) for the schedule to be considered a “shared” custody schedule for purposes of calculating child support. This framework, in practical application, meant that a parent who had his or her child for 127 or fewer overnights (meaning that the other parent had “sole” or “primary” physical custody) would owe substantially more child support than a parent who had his or her child for 128 or more overnights (a “shared” physical custody arrangement), even though the expenses a parent incurs while providing care for a child for 127 overnights or 128 overnights are approximately the same.
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Webinar: The Eve of a Supreme Court Confirmation |
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Please join us on Wednesday, October 28th at 9:30 AM to hear our invited speaker, Beth Levine, share her past experience with the SCOTUS Nomination Process. Registration required.
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We hope all of you are staying well, and we miss seeing many of you visiting us in-person. To limit crowded workspaces, our firm is continuing to operate at full capacity in a hybrid mode.
Our plan includes enhancements to our already established in-office and remote work capabilities, which enable our attorneys and staff to continue to be responsive to your needs throughout the day.
The firm has begun allowing some face-to-face client meetings by appointment only. Anyone entering the firm will be required to wear a face mask at all times. Our conference rooms are continually sanitized and will allow for social distancing, keeping clients and employees safe.
We look forward to the day when we can fully open our doors and welcome all of you back!
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News That Could Affect You,
Your Business & Your Community
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This Is the Worst Thing About Working From Home, and It...
Productivity We are probably past the point where we should recognize that working remotely is no longer a trend. Seven months into a global pandemic, the realization has started to set in at many companies that this is simply the way we're going ...
Read more
www.inc.com
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INSIGHT: Three Important Areas in 2020 Year-End Planning
New laws and the rapidly changing environment brought on by the Covid-19 pandemic present new tax challenges. Robert Rojas and Michael Pusey of Rojas & Associates walk through year-end income tax, estate tax, and real property tax planning.
Read more
news.bloombergtax.com
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