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Report
From Counsel - Summer,
2007 ISSUE:
- Summer,
2007 issue: What
happens to your email after you die?; Beware
of fake checks;
Does the ADA apply to websites?;
Watch
your language, debt collectors;
Zoning
laws and the exercise of
religion;
Unsightly
appearances
- Spring,
2007 issue:
Doing business on the web-clickwrap agreement; Real estate
law update; Establishing patent priortity for interfering
patent applications; Tax consequences of selling collectibles;
Estate planning 101: What is a Trust?
- Winter
2006/2007 issue: Employment
discrimination and retaliation by employers; Roth IRA conversions;
Commercial Landlord sued for unsafe conditions; Computer
fraud and abuse act; Employee or independent contractor;
Did you know?
- Fall
2006 Issue: Deducting
the business use of your home; The dangers of employee internet
use; Inadequate notice of tax sale; Nonowner can be liable under
FHA; Qualified personal residence trust; Financial planning for
a disaster; Steer clear of big rigs.
- Summer
2006 issue: Should
you incoporate your business?/ Sports injuries; Valuation discounts
for estate and gift taxes; The hazards of resume screening; AEDS
help treat heart attacks; Eminent domain update; Smoke alarms:
inexpensive guardian angels.
- Spring
2006 issue:
Where to sue? Websites can affect jurisdiction; Property transfers
and medicaid eligibility; ADA protects employees with cancer;
Social Security number verification for employers; AEDS help
treat heart attaks; New 401(K) investment option; Landlord/tenant.
- Winter
2005/2006 issue: An Introduction to College
Savings Plans; Golf Balls can be Trespassers; FLSA Overtime
Update; "Pop-Ups" Annoy But Don't Infringe; Junk
Fax Protection Act; Contractor Shielded from Liability;
Do You Have Residences in More than
One State?
- Fall,
2005 issue: Careful!
New Rule Affects the Disposal of Credit Information;
Gifting as an Estate Planning Tool; Safeguards for
Electronic Banking; Retirement Guide for Small Businesses;
Protect Your Home with Title Insurance; Taster's
Choice Model Wins Big
- Summer,
2005 Issue: Business
Start-Up: Should You Be a Franchise Player?; Veterans'
Benefits Improve Act; Environmental Law Update; New Tax
Deposit
Rules for Small Businesses; Family Limited Partnerships
Draw Irs Scrutiny
- Spring,
2005 issue and archives:
Real Estate Roundup; Pregnancy
Discrimination at Work; Minimize Your Risk of Identity
Theft; More Businesses
Eligible for C-EZ; Business Liable for Not Investigating Credit
Complaint; FDIC Insurance for Revocable Trusts
- Wills & Trusts
Seminars
- Legal
News
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WHAT HAPPENS
TO YOUR E-MAIL AFTER YOU DIE?
When a young Marine died in Iraq and his parents wanted to retrieve his e-mail
as a memorial to him, they came up against the privacy policy of the Internet
service provider (ISP), which declined to provide the information. Ultimately,
a probate court ordered that the parents be allowed to retrieve the e-mails.
When a prominent
poet died without leaving the password for his e-mail account,
where he kept virtually every significant piece of personal information,
his daughter had no means of gaining access to that information
so that she could notify others of her father's death. Citing
privacy concerns, the ISP for the account refused to divulge
the information to the daughter.
These real-life
stories are the leading edge of what may become a wave of litigation
concerning ownership of e-mail information upon the death of
the account holder. The competing interests are the privacy of
the account holder, coupled with the ISP's interest in preserving
that privacy, and the survivors' rights to the property of the
deceased.
Most of us
think of e-mail as the modern equivalent of a box of letters
belonging to us, when, technically, e-mail is an intangible form
of property owned by the ISP. Nonetheless, if it is possible
to spot an early trend on the issue, that tendency is to treat
e-mail information as the account holder's property upon his
or her death. In most states, the issue is still unresolved and
without clear case precedents. At least one state has passed
a law directing ISPs to turn over the e-mail of a decedent to
the personal representative for the decedent's estate.
Steps to Take
Now
It will be some time before legislatures and courts catch up with the reality
that millions of people use their e-mail accounts as repositories for all sorts
of information having sentimental, historical, or economic value. In the meantime,
there is some practical advice for facilitating access to e-mail information "left
behind":
* Read your
ISP's privacy policy to determine what your survivors may have
to contend with to get access to your e-mails. The policies run
the gamut from providing e-mails to next of kin upon showing
a power of attorney over the account and a death certificate,
to treating e-mail accounts as non-transferable and with no right
of survivorship.
* As strange
as it may sound, consider dealing directly with the issue in
your estate planning by including e-mails specifically in your
will, especially if they have monetary value. In connection with
this, you should archive the information to your hard drive and
be sure that your survivors have any necessary passwords. Conversely,
if you want to take your e-mails with you, in effect, stipulate
in your will that no one is to have access to your account.
* Get good
legal advice, including information as to whether there are any
new laws in your state on the subject. They could trump, or at
least affect, whatever arrangements you have made or may be considering
for disposing of your e-mails after your death.
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BEWARE
OF FAKE CHECKS
You have responded
to a work-at-home offer in which you will be an account manager
for a foreign company, depositing checks from its U.S. customers.
It
seems simple: You deposit the checks, take your pay out of them, and send the
remainder to the foreign company. Or . . . you have reason to believe you have
won a sweepstakes or lottery prize. You receive a check for your winnings,
with instructions to cash it, then return a portion of the money to cover taxes
or other fees. Or . . . having sold something through a newspaper ad or online,
you receive a check for much more than the purchase price. Calling it an accounting
error, the buyer apologizes for the mistake and asks that you return the excess
amount.
If these scenarios
activate your fraud antennae, there is a good reason for that.
Each is a typical example of circumstances in which people are
victimized by fake checks. This is a growing problem, perhaps
because of the ways in which strangers are brought together for
transactions by new technologies and the Internet. If there is
a single best piece of advice for not becoming a victim, it is
to accept no check if it is accompanied by a request that you
return some of the money.
Of course,
the sting from the scam occurs when the victim deposits the check
he receives, then withdraws funds and sends off money or merchandise
before his bank discovers that the deposited check is fraudulent.
Even when the bank is vigilant, that discovery could take days,
or even weeks. Your first reaction might be to blame the bank,
but, generally, the depositor is on the hook, as he is considered
to have taken responsibility for the funds spent or sent before
the fraud is discovered.
In addition
to the big red flag in the form of being asked to return part
of the money sent by check to you, here are some more warning
signs and protective measures:
* Upon receiving
a check from a stranger, explain the situation to your bank manager
and ask the manager when the check is likely to be considered "good." Then
wait until you get the go-ahead before using the funds. If, in
the meantime, the check writer pesters you about the delay, that
may just be one more sign that you were targeted to be a fake
check victim.
* Scam artists
are often clever and skillful, making it difficult to detect
a false check from the check itself. This makes it all the more
important to pay attention to, and to be guided by, suspicious
circumstances. Some of these include offers that defy common
sense (if you really won a prize, wouldn't they just deduct taxes
or fees from the check for your winnings?); being asked to send
money outside of the U.S. (thus making it harder to find the
culprit and the money); and being warned not to discuss the transaction
with anyone else.
* Consider
accepting payment not by personal check, but only in the form
of a money order or a cashier's check drawn on a local bank,
so that you can take it there to ensure that it is legitimate.
Another option is a money order from the U.S. Postal Service.
* Especially
when dealing with a stranger over the Internet, try to confirm
the person's name, address, home phone number, and work number
through some independent means, such as directory assistance
or an online database.
If the worst
happens, and you have reason to believe that you have been had
by the writer of a fake check, contact your bank and the local
office of the FBI. Then resolve to keep an eye out for the red
flags next time.
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DOES
THE ADA APPLY TO WEBSITES?
Recently a
federal trial court became the first court to find that a commercial
website must be accessible to the disabled, and to blind customers in particular,
because of the prohibition against disability discrimination by places of public
accommodation contained in the Americans with Disabilities Act (ADA). Whether
the retailer would, in fact, be liable on the particular facts of the case
remained to be decided, but the court declined to dismiss the class action
complaint.
Requiring businesses
to make their websites fully accessible by the blind will likely
involve adding computer code for "alternative text" that
permits screen-reading software used by blind individuals to
vocalize the text and describe the contents of the webpage. Using
this code when the site is initially designed is less expensive
than retrofitting a website later.
The retailer
argued to no avail that the demands of the ADA do not apply,
because a website, since it is not really a physical place at
all, is not a "place of public accommodation" within
the meaning of the ADA. The court reasoned that the ADA requires
full and equal enjoyment of the services "of" any place
of public accommodation, not services "in" a place
of public accommodation. The ADA is not only about physical access
to places.
The court found
that the retailer's many brick-and-mortar stores constituted
the "places" of public accommodation. The retailer's
website serves as a "gateway" to such stores, especially
for blind customers. If the website is not fully accessible to
them, it impedes those customers from coming through the gateway,
that is, from having the "full and equal enjoyment" of
the stores' goods and services that the ADA mandates. The court
drew an analogy to a case in which a telephone screening process
for prospective contestants for a television game show violated
the ADA by discriminating against the hearing disabled, even
though the discrimination took place away from the studio where
the show was produced.
Although the
decision broke new ground in ADA jurisprudence, the court's "gateway" reasoning
relied on the connection between the business's website and its
many retail stores. The court did not have occasion to address
the variation on the same issue posed by the websites of retailers
who have no brick-and-mortar stores. Such a situation presents
a closer question as to whether the ADA applies. For a website-only
business to come within the ADA, a court would have to find that
a "place of public accommodation" does not have to
include a physical place at all, but can, instead, be the virtual
world in which website transactions occur.
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WATCH
YOUR LANGUAGE, DEBT COLLECTORS
In a letter
to a debtor intended to prompt payment of $250 in debts, a collection
agency's choice of words entangled it in protracted litigation under the federal
Fair Debt Collection Practices Act (FDCPA). The theme of the dunning letter
was honesty, or the lack thereof, on the debtor's part. In all capital letters,
the letter informed the debtor: "YOU ARE EITHER HONEST OR DISHONEST YOU
CANNOT BE BOTH." It proceeded to question the debtor's good intentions
in allowing the account to become past due and in supposedly ignoring all prior
requests for payment.
The debtor
struck back with a lawsuit under the FDCPA that was at first
dismissed by a federal trial court, but then reinstated when
the debtor appealed. The letter violated the FDCPA in more than
one respect. A debt collector may not falsely represent or imply,
in order to "disgrace" the consumer, that the consumer
committed any crime or other misconduct. It was true that a check
written by the consumer did not clear, but there was no evidence
as to why this happened, or that the debt collector had, in fact,
previously made communications to the consumer that were ignored.
Since there
could have been an innocent, or at least honest, explanation
for the unpaid bills, the letter's comments impugning the consumer's
honesty and claiming that other collection attempts were ignored
could be shown to be both false and intended to shame the debtor
into payment. This violated not only the letter of the FDCPA,
but also its underlying rationale that even defaulting debtors
deserve to be treated in a reasonable and civil manner.
The same letter
also ran afoul of the prohibition in the FDCPA against using "unfair
or unconscionable" means to collect or to attempt to collect
a debt. By way of example, the Act lists eight forms of conduct
that constitute unfair or unconscionable means. The letter in
question did not fit neatly into any of the examples, but the
debtor's claim could still proceed because the list was not meant
to be exhaustive.
It was conceivable
that impugning a debtor's honesty and good intentions could be
regarded as an unfair or unconscionable collection method. Since,
by law, a court views a claim under the FDCPA through the eyes
of an unsophisticated debtor, the plaintiff was planning to support
her claims by conducting a consumer survey to determine if such
debtors would find the letter she received to be false, misleading,
unfair, or unconscionable.
The practical
lesson to be derived from this case is that debt collectors should
steer away from any inclination they may have to try to enhance
the impact of collection communications by casting aspersions
on the debtor's character and intentions. Collection letters
should stick to the provable facts and should be direct and simple.
Opting for spicy language over plain vanilla only invites legal
indigestion.
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ZONING
LAWS AND THE EXERCISE OF RELIGION
The federal Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA)
provides that the government may not implement a land use regulation in a manner
that imposes a substantial burden on the religious exercise of a person, including
a religious assembly or institution, unless the government demonstrates two
things: that imposition of the burden on that person, assembly, or institution
is both in furtherance of a compelling governmental interest, and is the least
restrictive means of furthering that interest.
In applying
the standards of the Act, courts have held that various activities,
whether or not central to an individual's belief system, are
a "religious exercise" within the meaning of the RLUIPA.
If individuals are forced to modify the religious exercise, courts
have tended to find that the governmental regulation has created
a substantial burden within the meaning of the Act. Nevertheless,
where an individual is still left with the ability to choose
another method that will not seriously affect the religious practice,
or the action taken only tangentially impacts the religious exercise,
courts have held that there is no substantial burden.
Compelling
Interest?
In deciding whether or not to uphold the governmental regulation, courts have
analyzed the interest the governmental unit had in creating the regulation
to see if it is a compelling one. For example, significant health and safety
considerations may be found to be compelling public interests. Even a finding
of a compelling interest does not end the analysis. The regulation employed
must be the least restrictive means to meet that interest, as required by the
Act.
The governmental
entity may change its regulations to alleviate the burden on
religious exercise and thereby avoid the prohibitory effects
of the Act. For example, the government may escape the prohibitions
by retaining most of its land use policies or practices, but
adding exemptions for applications that substantially burden
the exercise of religion. In addition, the RLUIPA will not apply
in the first place if the governmental unit acted pursuant to
some authority other than a law on zoning or the designation
of landmarks.
In the Courts
A recent case demonstrates that it is not enough to invoke the protections
of the RLUIPA that a proposed land use is connected in some way with a
church or religious group. A church brought an action under the RLUIPA
challenging a municipality's refusal to permit it to operate a day-care
facility with a component of religious instruction in a low-density residential
neighborhood.
According to
the federal court that decided the case, the RLUIPA does not
require the religious activity that was substantially burdened
by the land use regulation at issue to be "fundamental" to
a religion. Still, the church's claim failed because the jury
found that the church did not prove that it was engaged in a "sincere
exercise of religion" in seeking a variance to operate the
day-care center.
The church's
case was hurt by its bishop's admissions, in a letter responding
to the church pastor's request for help, that the day-care center
appeared to be more of a traditional commercial venture and less
of a religious function.
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UNSIGHTLY APPEARANCES
A property
owner operated a business variously described as a flea market,
a second-hand store, and a repair service for lawnmowers and tillers. After
the city inspected his property, it cited him for violating a public nuisance
ordinance, listing a variety of items ranging from baby strollers to automobile
seats. The property owner argued that the city ordinance against an "unsightly
appearance" was so hard to pin down as to be unenforceable. The state
supreme court, however, rejected his argument.
The challenge
to the ordinance rested on the contention that the term "unsightly" is
so vague that a reasonable person could not know which conditions
were prohibited and which were not. The city's winning response
to this argument was that the court was not to look at the ordinance
section on "unsightly appearance" in a vacuum, but
was required to consider it in the context of the entire public
nuisance ordinance.
The city had
the power to prohibit conditions that debase the appearance and
character of its neighborhoods. An ordinance regulating aesthetic
conditions must use some general terms because it is impossible
to describe every conceivable circumstance that the ordinance
is meant to address.
Ugliness, like
beauty, is in the eye of the beholder.
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variations of facts and state laws. This web publication in not intended
to provide legal advice for specific subjects, but rather to provide
insight into legal developments and issues that we feel could be useful
to our clients and friends.
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