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Author Archives: Christopher P. Finney

Ohio Employment Law: Stephen E. Imm addresses sexual harassment before Empower U April 10

Author By Christopher P. FinneyPosted on

Ohio employment law attorney addresses the #MeToo movement and the issue of sexual harassment in the workplace next Tuesday, April 10 at 7 PM before Empower U at the Empower U studio at 225 Northland Blvd., Cincinnati, OH 45246.

Here is the Empower U summary of the course:

Harvey Weinstein . . . Al Franken . . . .Kevin Spacey . . . Aziz Ansari . . . .Louis CK . . . . Garrison Keillor . . . the #MeToo Movement . . . These stories and countless others like them have caused an enormous change in how sexual harassment is viewed in America, and how it is addressed by employers and employees. What can the rest of us learn from Hollywood’s Harassment Problem?
This course is literally as timely as today’s headlines! We will be discussing in detail the implications of the recent explosion in sexual harassment allegations against prominent celebrities, businessmen, politicians, and judges – yes, Judges. Attendees will learn what each of us can do to make sure that we and our companies are not in the news ourselves – six weeks, six months, or six years from now. Among the specific topics we will analyze and discuss are:

How can an employer best protect itself from sexual harassment claims in the Harvey Weinstein era?

What are the implications of the #MeToo movement for the modern workplace?

What is “sexual harassment”? What does that term actually mean in the law, as opposed to what it means in ordinary conversation?

When is a company or employer legally responsible or liable for sexual harassment committed by one of its employees?

How does the term “hostile work environment” relate to sexual harassment?

What differences exist between sexual harassment committed by a supervisor or manager, and harassment committed by a lower-level employee?

Can an employer be held legally responsible or liable for sexual harassment committed against one of its employees by an individual who is NOT an employee of the Company?

What written policies should an employer have in place regarding sexual harassment, and how should those policies be communicated to its employees?

What does a proper internal investigation of a sexual harassment complaint look like?

How is sexual harassment analyzed when the alleged harassment involves people of the same sex?

The course is free.  You can register through this link.  You can watch virtually by logging into this site after 6:50 PM.

Thanks for Steve Imm and to Empower U for bringing this important course.

New ordinance proposes to regulate Cincinnati Air BNBs

Author By Christopher P. FinneyPosted on

Fox19 is reporting today that the City of Cincinnati is considering legislation to regulate Air BNB rental units in the City of Cincinnati.  Features of the proposed ordinance:

  • it would regulate short term rentals of entire dwelling units for periods of 30 days or less at a time.
  • Rentals for each unit would be limited to 90 days out of any calendar year.
  • Unit owners would have to license each unit and renew the license every year.
  • Unit owners would have to submit to annual zoning, building, safety, and housing code inspections.
  • Unit owners would have to have liability insurance on the property,
  • Unit owners would be required to pay taxes on the rental income, including a transient occupancy tax.

The purposes for the ordinance  from the Fox19 are:

  • to reduce the negative impact of short term rentals
  • to protect residential tenants who otherwise would be evicted to allow for conversion of their  units for AirBNB occupants
  • to keep AirBNB renters safer.

Read the Fox19 article here.

Ohio commercial litigation: Chasing deadbeats, it’s part of what we do!

Author By Christopher P. FinneyPosted on

Someone owes you money.

But you have been slow to assign the collection to an attorney for fear of the legal fees and expenses.  This concern certainly is well-founded.

However, Finney Law Firm (a) has the experience, tools and “attitude” to maximize your return from that activity, and (b) is willing to work with you on creative fee relationships, so that the risk and cost of the collection activity does not fall fully on the your shoulders.

The challenge

In every piece of prospective litigation, I attempt to analyze with the client the three components to litigation success: (a) liability (establishing the legal basis the other party owes you money [for example, is the contract clear and the breach easy to establish?]), (b) damages and (c) collectibility.

Collectibility

Let us start at the end: does this target defendant have a pot to pee in?

If you were to get a judgment of any size against him, could we collect from this debtor the sums needed to make the litigation worthwhile form the inception?  Many times the answer is “no.”  If so, you might want to walk away from the matter.

Does the debtor own a house?  A business property?  If so, we can fairly quickly ascertain the mortgage indebtedness versus the value of the property.

Does the debtor own a business?  Car?  Other assets?  Many times debtors structure their lives and their assets in such a way that a creditor really can’t get anything from them — their house in in their wife’s name, and their other assets are well-hidden.

Liability

Ahhh, liability.

The client many times relates to us that liability is “open and shut.”  We file suit and the other side “surely will settle.”

Unfortunately it does not always pan out that way.  Clients frequently don’t understand the facts of their own case, don’t know all the facts, and wear rose-colored glasses about their prospects of success.  Further, even the simplest fact pattern that clearly leads to liability can be time-consuming and laborious in Court to bring to conclusion.

The client needs a realistic understanding of their chances of success and the Court path to a final enforceable judgement.

Damages

And that brings us to the damages calculation.  Defendants, Plaintiffs and Courts all have differing perspectives on how to calculate damages numbers.  And a separate blog entry would have to explore that issue in more depth.  But take, for example, the sale of a house.  Our client is the seller.  The buyer is clearly in breach.  But the seller sixty days later re-sells the house to another buyer for $5,000 more than the buyer in breach agreed to pay.  (And in today’s go-go real estate marketplace, that’s not an uncommon occurrence). What “damages” has the seller sustained from a clear breach of contract?  Other than the time-value of holding the property (taxes, insurance, utilities and maintenance), likely none.

Collection

So, once you file suit and convince the Judge to sign the entry granting an award of damages against a defendant,  you are “off to the races,”  Right?  Well, not exactly.

We have to first identify assets and income streams.  Does the target own a piece of real property?  A bank account?  A job? Securities accounts?  Do they own a closely-held business?  The Finney Law Firm has gum-shoe and cyber assets and relationships that help us to learn of the income and assets of clients in the collection process.

Tools for enforcement

Our tools to force payment of a legal judgment include:

  • Attaching bank accounts.
  • Garnishing wages.
  • Liening and foreclosing on real property.
  • Seizing and selling personal property such as office furniture and equipment, cars and manufacturing equipment. (This one usually gets their attention and frequently a quick check!)
  • A creditor’s bill to force a third party who owes the deadbeat money to instead pay it to you.  These are very powerful.
  • A receivership to place income-producing assets in the hands of a third party whose job it is to assure you are paid from the income stream of the asset or its liquidation.
  • A Judgment Debtor Examination forces a creditor to tell you — under oath — where they are “hiding” their assets so that you can go and grab them.
  • Use of subpoena power to learn from third parties where assets are being hidden.
  • Working through the intricacies of bankruptcy court to either avoid the collections limitations the Court imposes or maximize the collection through their offices.
  • Involuntary bankruptcy.  It takes three creditors banding together to place a debtor into bankruptcy, but this tools forces all the debtor’s cards on the table and stops them from playing games with assets that should belong to you.
  • Fraudulent transfer actions can un-do illegal transfers of assets to friends and family members.  Most powerfully, the act of the fraudulent transfer to these third parties causes them to become defendants in that new action —  putting them on the hook for the debt, plus punitive damages and attorneys fees — for participating in the scheme.

Creative fee relationships

We are not oblivious to the challenges our clients face of withering legal fees and endless court appearances to collect a small and simple debt.  But at the same time, the tremendous work many times required to get a judgment and pursue it through collection also is known to us.

However, if we are going to recommend that a client proceed with a collections action — which necessarily means the economics should work out positively for the client — we are always willing to engage in a discussion about creative fee relationships (hourly fees, flat fees and contingent fees) to achieve the desired end.

The idea on a contingent fee is the more you collect, the more we make — everyone should be happy if the “ring the bell.”  But on the flip side, it it turns out to be a dry well — and many collection actions that seem promising on the front end turn out to be a dry well on the back end — then we share in the pain.

Conclusion

Collections work can be great fun, outmaneuvering a defendant who knows he owes the debt, but is using his wits — legal and illegal — to prevent you from getting to those assets.

So, let your deadbeats become our firm’s problem and allow us to turn that bad debt into an asset.  Call Chris Finney (513-943-6655) or Julie Gugino (513-943-5669) to learn how we can help you.

Ohio Real Estate Law: Electronic recording has arrived

Author By Christopher P. FinneyPosted on

The day many of us had anticipated in real estate transactions has arrived: Electronic filing of real estate documents.

Hamilton County Auditor Dusty Rhodes, Hamilton County Recorder Norbert Nadel and Hamilton County Engineer Ted Hubbard have collaborated to allow — starting Wednesday, February 7, 2018 — for recording of deeds and other instruments conveying property ownership to be filed completely online using the web portal at Simplifile.com.

Warren County has allowed for electronic recording for some time.

  • The Hamilton County Recorder’s Office has a instruction guides here and here.
  • Warren County’s information is here.

The remarkable advancement eliminates the need for a trip to the auditor’s and recorder’s offices to file a broad variety of recorded real estate instruments.

For more information, contact Auditor Rhodes’ office at 513.946.4235.

Ohio commercial transactions: Think twice before signing these six transactional documents

Author By Christopher P. FinneyPosted on

As we march through our lives, folks shove documents under our nose for signature all the time.  In reality, we should carefully, very carefully, read them and consider their implications before signing any of them.

After all, there are charlatans and fraudsters standing eager to take advantage of us at every turn.  And even if other parties don’t start out as such, life events can put people in default or desperate straits – and then “desperate people do desperate things” as they say.

Still, certain documents bear significant additional risk or have a history of resulting in litigation or economic calamity for the signer.

Here, we take a serious look at six transactional documents that frequently result in legal or financial problems:

  • Personal guarantee for debts of another. Your daughter and son-in-law are buying a house, but have bad credit, or you are starting a business and need to guarantee the lease or franchise agreement to provide the fiscal backing for the undertaking.  A personal guarantee is fine and in some instances both called for and reasonable.  But think it through:

–>  Am I financially capable of fulfilling this guarantee if the underlying obligation falls into default?

–>  Would the other party accept a guarantee limited in time, amount or some other cutoff?  Or proceed with no guarantee?

–>  If there are multiple guarantors, would the lender be satisfied with me just paying my pro-rata share of the underlying debt?

–>  Is there some other way that the transaction can proceed without my guarantee?  Can someone offer security for the loan instead?

  • Non-Compete agreements. More and more employers are asking new employees to sign non-compete agreements or agreements wherein the employee agrees not to solicit customers, employees or vendors of the enterprise.  Employers are entirely within their rights to demand such agreements (the question of whether they are enforceable is addressed here).  But should an employee agree to restrict his future earnings potential and career path based upon this job opportunity?  If you really think it through, many time the answer is “No thanks, I’ll take a pass.”
  • Agreements with attorneys. We really hate to say this, but one of our clients was a seller under a land installment contract for the sale and purchase of real estate.  The buyer was an attorney.  After repeatedly falling into default, our client initiated a forfeiture action against the attorney.  He countered with a blistering series of arguments that were all untrue or frivolous.  Confronted with withering legal bills to prove their case, they quickly settled on relatively unfavorable terms.  Lesson learned.
  • Businesses with 50/50 ownership. It seems to make sense: Two partners throwing in equal shares of cash and effort to start a business; they should own it 50/50.  And in decision-making, decisions are 50/50, meaning it requires the consent of both parties to move forward with anything.  However, after years of addressing business disputes, it has become clear that these ownership structures – with no one in charge and everyone’s cooperation required to make decisions – are the source of operational and legal gridlock, resulting in painful, expensive and endless litigation.  I have even seen very difficult dispute resolution between former (or soon-to-be-former) spouses in a 50/50 ownership structure.  Indeed, getting into business with any third party can be the source of conflict, monetary losses and litigation.
  • Agreements you are not prepared to litigation to conclusion. If you think about it, in an instance in which you are investing time or money, you have two essential choices: Either be prepared to “eat” these investments by walking away or be prepared to litigate your claims to conclusion to defend your investment.  Is the person you are contracting with someone you are prepared to sue to enforce your rights?  Is the transaction structured and documented in such a way that you could prevail in that litigation? Will the cost of enforcing these agreements (or defending against a suit from the other party) of such magnitude that it will be worth litigating?
  • Indemnity and “hold harmless” clauses in leases and other contracts. It’s easy to sign a 50-page legal document that satisfies the major business terms you have negotiated.  But what about the fine print?  Buried deeply within a lease, loan documents, or asset purchase contracts can be all sorts of warranties, indemnities, and “hold harmless” provisions.  It seems simple that a seller or borrower should stand behind his obligations, but do you really want to give an open-ended contractual indemnity or warranty in this specific instance?  It is, as is addressed here, a potential blank check, open-ended access to your checkbook.

We are not saying that you should never sign any of the foregoing instruments.  What we are saying is that experientially these undertakings result in much conflict, legal fees and emotional angst, and should be undertaken only with great caution.

 

’tis the season for Ohio property tax reduction (along with a free how-to video)

Author By Christopher P. FinneyPosted on 1 Comment on ’tis the season for Ohio property tax reduction (along with a free how-to video)

Tax bills just hit the mailboxes of Hamilton County taxpayers this week, and our phone is ringing with questions about our Ohio property tax valuation reduction services.

Sample calls:

Many of the cases have merit, and we are aiding those taxpayers in getting their taxes reduced.  Others, not so much.  Here’s a sample call:

Client: “Hey, I just got my tax bill and my valuation just went up by 40%.  Can I challenge it?”

Attorney: “It depends.  How does the Auditor’s new valuation of your property compare to the property’s true value?”

Client: “What do you mean ‘true value?'”

Attorney: “I mean, if you put the property on the market and offered it for sale, is the Auditor’s valuation lower than or higher than that value?.”

Client: “Oh, I would never sell it for that number.  I mean, my property is worth a whole lot more than that.”

Attorney:  “Then, don’t bring the case.  The Board of Revision compares the Auditor’s valuation to the true value and adjusts the valuation accordingly.  For single family homes, they use comparable sales of other properties.  Actual sales.”

Client: “But my valuation went up by 40%!  I mean there is no way my property increased in value 40% in three years.”

Attorney: “Well, that may be true, but how do we know the Auditor had not undervalued your property three years ago, and is just getting it right now?”

Client: “But the Auditor has my neighbor’s property valued for less than mine and the houses are the same.”

Attorney: “None of those things matter.  They really don’t.  The Board of Revision can’t even consider those things.  The only question is the comparison of your home’s true worth versus how the Auditor has assessed it and that comparison hinges off of comparable sales in your neighborhood.”

Some basic concepts:

The concepts are hard to swallow sometimes:

  1. The Board of Revision takes a fresh look at valuation when a  challenge is brought.
  2. How the Auditor’s current value compares to the true value of the property (typically as established by comparable sales in your neighborhood) is the only yardstick of value in the current cycle.
  3. The percentage increase of your property valuation from the prior cycle is completely irrelevant to that analysis.  Completely.
  4. The Auditor’s opinion of the value of your neighbor’s property also is completely irrelevant to that question
  5. Both data and arguments relating to those issues are inadmissible before the Board of Revision.  If you try to talk about those things at your hearing, you will be shot down by the panel.  Period.  Just don’t go there.
  6. The Auditor does not have to justify how he came up with his valuation of your property.  In fact, he is completely within his rights and authority under Ohio law to choose any value he wants for your property for absolutely no justification at all.  That’s simply how the law is written.  It is the statutory prerogative of the Auditor.  If you don’t like it, then YOU can run for Auditor.
  7. At a hearing, it is the taxpayer’s burden to prove the correct valuation. The Auditor does not have to prove anything.
  8. NOTE: The result of a Board of Revision challenge to your property’s valuation could well be an increase, rather than a reduction.  Be forewarned.
  9. From 2008 to 2015 — throughout the real estate recession (some would say depression) — it was relatively easy to get valuations reduced for many properties.  However, with the rising tide of real estate prices, those hoping for quick and easy savings should think twice.  They may well get a surprise — an increase rather than a reduction.
  10. If you don’t like the law, don’t be mad at us.  We are not legislators or judges.  We didn’t make these rules.

Free how-to video:

Here is a complete videotaped seminar presented by attorney Christopher P. Finney on property tax valuation reduction with step-by-step instructions.

More help:

For questions (other than those in the sample call, above!), feel free to contact Christopher P. Finney (513-943-6655).

County Auditor Dusty Rhodes and Chris Finney present to REIA on Property Tax Reduction

Author By Christopher P. FinneyPosted on

Tonight, Hamilton County Auditor Dusty Rhodes and attorney Chris Finney presented to the Greater Cincinnati Real Estate Investors Association on the topic of “Property Tax Reduction.”

The presentation went in-depth in instructing property owners on the procedure to reduce the Auditor’s valuation of real property in Ohio to achieve tax savings.

We thank the County Auditor for appearing with us in this important public service!  And we thank REIA founder Vena Jones-Cox and REIA President Scott Ellsworth for making this presentation possible.

Property owners are reminded that March 31 of each year is the deadline in Ohio for tax challenges.  You may call Chris Finney (943-6655) for more information.

 

Brave the cold weather and join us this evening for a presentation on Property Tax Reduction with Dusty Rhodes and Chris Finney at REIA

Author By Christopher P. FinneyPosted on

Tonight, Hamilton County Auditor Emerson “Dusty” Rhodes and Finney Law Firm attorney Chris Finney present on “Property Tax Reduction” at the Greater Cincinnati Real Estate Investors Association (REIA) at 6 PM at the Ramada Plaza at 11320 Chester Rd., Cincinnati, OH 45246 on Thursday, January 4 at 6 PM.

A dinner is served beforehand at 5:30 PM.

The meeting is open for free to REIA members and first-time attendees can obtain a free guest pass here.  REIA’s program announcement is here.  REIA’s web site is here.

Please join us!

 

Federal Income Taxes: One more note for pre-payers

Author By Christopher P. FinneyPosted on

Our blog and every major media outlet has been writing about pre-payment of 2018 real estate taxes (see prior blog entries).  So, for procrastinators on pre-payment (how’s that for a mind-bender?), do you have to drive to the Treasurers office today to do that so that the payment is posted in 2017?

No.

Here’s the update from our crack paralegal team today:

According to the Treasurer’s Office, they post the payments as of the date of the postmark from the post office.

Also, they do have options for paying the real estate taxes online (via credit card), however there are convenience fees that are charged (credit card, 2.5%; electronic check, $1.50 per check).

If mailing a check, make sure the parcel number is in the memo of each check.  I would also mail with each check a copy of the summary from the Auditor showing the new annual tax amount.

So, save yourself the trip and wait in line.  Drop that check on the mail.

Federal Income Tax: IRS muddies the waters on pre-payment of 2018 real estate taxes, but our “advice” stands: Pay them now!

Author By Christopher P. FinneyPosted on

Last week, Congress passed and President Trump signed the most sweeping tax reform package in more than two decades.  And one significant provision of that bill as to individuals is the cap on deductibility of state and local taxes at $10,000 in tax year 2018 and going forward.

This led to our “advice” here that Ohio taxpayers may want to pay their entire (both halves) 2018 real estate tax bills before year’s end to attempt to grab that additional (and perhaps final) deduction in 2017.

(Let us emphasize again the word “may.”  Your specific situation may differ.  Consult your tax professional for advice as to your specific circumstance.)

IRS Advisory muddies the waters

Since that advice, the IRS has muddied the waters by issuing this advisory.  In there, they caution that the 2017 deduction (already condition based upon individual circumstances) applies only if taxes are “assessed” and “paid” in 2017.

(OK, this is going to get confusing.  Perhaps we know “too much” about Ohio real estate taxes making this so complicated.)

What does “assessed” mean?

What exactly does “assessed” mean?  In Ohio, taxes are “a lien on the real estate” for the tax year in question on January 1 of that year.  Since the proposed-to-be-pre-paid 2018 taxes in Ohio are in fact the 2017 taxes (confusing we know, but Ohio real estate tax law is intentionally confusing), then they would seem to be “assessed” as of January 1, 2017, at least as to how this author sees things.

But even though taxes are a “lien” and are “assessed” as of January 1, 2017, when they are “determined” as to amount is another matter.

In Ohio, as in most states, property taxes are a product of multiplying the tax rate times the assessed valuation of property.  For every County in southwest Ohio (except Warren) and most major urban counties in Ohio (Hamilton, Butler, Clermont, Montgomery, Franklin, and Cuyahoga), 2017 is a new “re-valuation” year, meaning that the bills coming out in 2018 will have brand new valuations.  Those valuations were only finalized by the various county auditors in September or October of this year.

Then, the rate.  Tax rates are determined in Ohio for the tax year in question only after the November election results have been finalized.  Levies passed in that election apply retroactively to January 1 of that year, here 2017.

Does “assessed” mean “determined”?

Now this is where it gets super-confusing.  From our perspective, taxes have been assessed for 2017 (payable in 2018) as of January 1 of this year, but the amount of the tax bill in some counties was only very recently determined (and as to Warren County as of this writing has not yet been determined).

So, if the IRS means “determined” in terms of amount when saying “assessed,” then it derives the entirely illogical and unfair result that folks who pre-pay their real estate tax bills in 2017 in Hamilton, Butler, and Clermont Counties can deduct those payments, but folks in Warren County, where that determination appears to be lagging for a few days or weeks, cannot.  It makes utterly no sense.

(As we wrote here, In Warren and certain other counties where the amount has not been finally determined, your 2017 tax year payment may be based on the amount you paid for the 2016 tax year payment.)

Conclusion

Given the last-minute scramble that Congress created with the passage of tax reform, it is from our perspective inexcusable that the IRS chose to inject this uncertainty into what otherwise should be a straightforward matter.  But that is the nature of this federal agency.  Why make things simple, when they can be hopelessly complicated?

However, as to prepayment of Ohio taxes, our advice set forth in our original email and blog entry stands: Pay them now.  The worst-case scenario is that you will have paid the taxes, respectively, one month and seven months too early.  No real harm.  But if we are “right” that they are deductible if paid this year, but may not be next year, then it means a 25% to 39% “savings” on that payment for you (because of the deduction).

Thus, pay them now!

Read more

Read more about the last-minute confusion created by the IRS below:

Washington Post: If you prepaid property taxes, will you get the deduction? If not, can you get your money back?

New York Times: Prepaying Your Property Tax? I.R.S. Cautions It Might Not Pay Off

We hope this clarified things, and did not further confuse them for you.

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