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No Business Interruption Coverage for COVID-19 Losses, Judge Rules

A federal judge in San Antonio has ruled that several small businesses seeking business interruption coverage for losses sustained due to the coronavirus economic shutdown do not have valid claims. The claims were from barbershops which, because they were classified as non-essential, had to close their doors in March 2020 when state and local authorities Read More

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Court Rules Old Friendship Does Not Equal a Fiduciary Relationship

A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties. The fiduciary must place the interests of the other above his or her own. This type of relationship can exist between a trustee and a beneficiary, a financial adviser and a client and other contexts Read More

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Why a Buy-Sell Agreement is Essential for a Small Business

Whether you’re starting a new business or are fully engaged in running one, it’s vital to plan ahead for what happens to the enterprise when you or one of your co-owners retires, becomes disabled or passes away. Creating an agreement that provides for such contingencies can help you ensure a smooth transition that avoids business Read More

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What Are the Advantages of an LLC Under the Texas Business Organizations Code?

Entrepreneurs forming a business must decide which type of organizational structure best suits them. There are several types of business entities recognized under Texas law, among them partnerships and corporations. A third type — the limited liability company, or LLC — combines elements of both, in that it is subject to lesser regulation than corporations Read More

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How Will Coronavirus Affect Contractual Relationships and Obligations?

The coronavirus pandemic has disrupted practically every aspect of American life. Whether closed by government order or by concerns about public safety, millions of businesses around the country have seen their operations come to a halt. Despite the overwhelming effect of COVID-19, it is not a certainty that an “Act of God” clause in a Read More

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Piercing the Corporate Veil

Generally, the individuals who own and run a company are not liable for the acts of the corporation. Veil piercing is a way around this. Veil piercing typically involves multiple parties and multiple claims and can be a complex and confusing theory of liability. Nonetheless, a few key concepts can assist the decision maker in Read More

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Business Divorce

What do you do when you and your business partners just can’t make it work anymore? A business is very much about relationships, but unlike a marriage where there is only one way to legally dissolve the relationship, when it comes to a business in which you might have partners, members, co-owners or shareholders, there Read More

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Quantum Meruit: Recovering on a Contract When There Is no Contract

When two parties enter into a contract for goods or services, the parties generally create a set of responsibilities to one another. Each side is obligated to perform their part of the contract in exchange for the performance by the other side. A contract that would be upheld by a court is called an enforceable Read More

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Possessory Liens: Enforcement and Collateral Recovery

The Texas Legislature has enacted possessory lien statutes in the Texas Property Code to protect service providers who perform work on personal property such as motor vehicles, boats, and aircraft. This article is limited to the liens available to service providers who repair, tow and store motor vehicles. The purpose of this article is to Read More

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Predatory Lending Practices by Bank of America Corp

The U.S. Supreme Court recently heard oral arguments in a case involving alleged predatory lending practices by the Bank of America and whether a municipality, the City of Miami, may file a suit for economic damages under the Fair Housing Act (FHA). The City alleges that the bank’s predatory lending practices disproportionately affected minority communities. Read More

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