Transaction Questions

Please consider and answer the following questions to help us efficiently evaluate and structure your transaction, and help you address issues prospectively.

General information about the proposed transaction:

1. Is there a confidentiality agreement in place?

2. Is the transaction an asset purchase or a purchase of the ownership interest of an entity?

a. Will the transaction cause a termination of the entity?

b. Would you like the purchase of the ownership interest of the entity to be treated as an asset purchase?

3. What is the purchase price?

a. Are there any adjustments to the purchase price (e.g. floors/ceilings/allowances)?

b. Will the purchase price be paid in installments?

c. Is there a reason to hold back any part of the purchase price?

4. How is the purchase price allocated?

5. Is the transaction seller-financed?

a. What are the terms of the promissory note?

Anchorage Board of Equalization — Property Taxes

Jolly Roger of “Calico Jack” Rackham
Image in public domain

The annual right of passage for Anchorage property owners is the receipt in the mail of the Anchorage Board of Equalization green property appraisal card.  If you do not agree with the property value as assessed you may appeal the valuation.  You may appeal on the grounds that the appraisal is “unequal, excessive, improper or under evaluation.” Continue reading “Anchorage Board of Equalization — Property Taxes”

Are You An Employer? Workers Compensation Required?

Do you laugh at the home and garden shows on cable TV?  Do you snort in derision watching those folks spend tens of thousands of dollars on contractors?  Do you smirk to yourself because you know you can do the same thing better, faster, and cheaper?  Well of course you do, you’re an Alaskan.  Even before Home Depot and Lowes came to town we had Spenard Builder’s Supply, Eagle Hardware, and you could quote the price of a spanner wrench at your local ACE store.  When it comes to adding on or building from scratch, no one beats an Alaskan at getting things done.  And not just with Visqueen, blue tarps, and duct tape, either.

On a normal day you could sheetrock a hanger holding Alaska Airlines’ latest 737-stretch in an easy day’s work.  But what happens when you only have a morning?  Perhaps your spouse has lined you up for a snowshoe softball game this evening, or some fish is running in some creek somewhere.  Unfortunately your best bud is rough-necking on the Slope this week, and your brother is sleeping off a 4-pack of wine coolers on a beach in Hawaii.  What now?

Well, normally if you needed a little extra help you’d head on down to Beans Café where there are plenty of folks looking for honest work.  The modern version is to check on Craig’s List from your smartphone while driving to the local man store.  Either way you’ll find some chap willing to hammer, screw, lay tile, hang ‘rock, or just generally clean up your mess when you’re done.  For a hundred bucks or a promise of fresh salmon, Alaskan men will do most anything.

Unfortunately, you have now begun to tread upon the realm of The Man.  The Government.  The State.  The usurious villainy of a democratic republic.  A homeowner, or anyone else for that matter, who chooses to hire someone to do something, must comply with all the rules and regulations just like those fancy contractors who have websites and their names on their pickups.  This can be a rude awakening for many.  You just needed someone to haul Trex around the house while you’re putting on the hot tub deck, or perhaps someone to mix and pour concrete on the motorhome pad next to the garage.  But if you’re paying them, you’re an employer in the eyes of the state.

Fortunately this probably doesn’t mean you’ll have to read up on Obamacare.  But you do have certain responsibilities.  Perhaps the foremost of real concern is workman’s compensation.  Didn’t come to mind?  Paying insurance for just hiring some dude off the internet now and again?  Actually, yes, you are responsible.  If that poor fella trips over the water hose, bangs his thumb with a hammer, or slips and cracks his head while shoveling your driveway, he is a worker by Alaska standards and you are his employer.  It is necessary to report to the state that you have worker’s compensation insurance, and of course pay necessary premiums.

There are other requirements, too, such as keeping records of your employees, tax records, immigration forms, minimum wage laws, etc. etc. etc.  If nothing ever goes wrong one never has to worry, right?  More or less.  Of course our laws aren’t written for when things go right, but for when the unexpected happens.  Let’s say that poor fella really does get hurt.  There he is banging away with the nail gun and the compressor hose bursts.  Safety glasses are for wimps, so naturally splinters and other debris fly straight to his face blinding him for all eternity.  Or at least until the trial is over.  The State will try to hold you responsible for the entirety of his medical care and later disability, and will be knocking on your door grinning from ear to ear.  Actually you’ll get a nasty little letter letting you know that a worker’s comp claim has been filed, the State presumes you are responsible for the costs, and, by the way, there will be fines galore for not having the proper insurance in place and on file.

So what does this all actually mean?  The average Joe Alaska isn’t going to run out and get worker’s compensation insurance.  He’s also not going to be checking the bonafides of his day help.  He may not be keeping records or reporting employment taxes to the IRS.  This is Alaska, free man’s country, where we take care of things up front and don’t need nor want the government standing around looking over our shoulder making sure the paint is the proper color, consistency, and lead-free.  This ain’t Bolder or San Francisco, it’s Willow, or Tok, or Aleknagik.  What it means is that we need to carefully consider what we’re doing, how we’re doing it, and who’s doing it.  We  need to remain aware that we are responsible if something untoward happens.  After an accident you’ll probably think hiring that licensed small business contractor who already has the proper employment credentials and insurance would have been faster and cheaper.  He hires the fella from Beans or off Craigslist and actually insures them.

Will anything change after reading this little blerb?  Likely not, but us attorneys are around when the unthinkable or the unknowable happens.  So if your brother is snoring away on a tropical isle and your high school buddy is raking in big coin in the oil patch and you still need help slinging mud, keep in mind you are an employer, and subject to the crushing wheels of justice.

What Can a Business Attorney do for Me?

Business Attorney Documents
From Negotiable Instruments to the Sale of your Business — a Business Attorney can help

Most Lawyers Are Not Business Attorneys

Most lawyers address criminal and family matters. Someone who does “non-business” matters is probably not the best fit for your business. Business owners need an attorney with the skills in contracts, organizations, real estate, taxes, personnel and collections.

1. Business Attorneys focus on Contracts.

You will need a lawyer that speaks the language of business and can quickly understand your business.  They should regularly prepare standard form contracts for you to use with customers, clients and suppliers.  They should review contracts that other people will want you to sign. Continue reading “What Can a Business Attorney do for Me?”

Chilkoot Charlies Headed to Trial on Alcohol Server Case

Today the Alaska Supreme Court in a three to two decision, sent Chilkoot Charlies to trial on an Alcohol Server wrongful death claim.  The Alaska statute only imposes liability on bars and servers of alcohol if they serve alcohol to someone who is visibly drunk.  The plaintiff did not offer testimony that the person was intoxicated when they Chilkoot Charlies served the alcohol. Instead, the plaintiff offered circumstantial evidence about the drinkers condition before and after leaving Chilkoot Charlies, and how much they had drunk at Chilkoot Charlies.  The Alaska Supreme Court stated circumstantial evidence was sufficient to allow the Plaintiff’s to present their case to a jury.

No. 6805 S-13899 Kalenka v. Jadon [other civil]

Clayton Walker, JD

I-9 Employment Information — Does It Really Have to Be Filled Out?

The Immigration and Customs Enforcement audited Ketchikan Drywall Services, Inc. (“KDS”) personnel records — the I-9 Employment Information form.  The ICE determined that  KDS violated the Immigration and Nationality Act.  ICE proved 225 of the 271 alleged violations of § 1324a(b) and the issued a bill for the resulting civil penalty of $173,250.00.  KDS argued that it substantially complied with the requirements of the statute.  KDS had copies of the employees documents containing the relevant information.   ICE refused to consider those documents.   The court upheld the penalties.  The court held that retaining copies of the underlying documents was neither necessary nor did it comply with the regulations.

Don’t skimp on filling out the I-9.

To discuss this issue or other business or legal matters call us at 907-375-9226.

 

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

KETCHIKAN DRYWALL SERVICES, INC.,

Petitioner,

v.

IMMIGRATION AND CUSTOMS ENFORCEMENT; OFFICE OF THE CHIEF ADMINISTRATIVE HEARING OFFICER,

Respondents.

No. 11-73105

OCAHO No. 10A00034

OPINION

On Petition for Review of an Order of the Office of the Chief Administrative Hearing Officer

Submitted April 8, 2013* Seattle, Washington

Filed August 6, 2013

Before: Dorothy W. Nelson, A. Wallace Tashima, and Consuelo M. Callahan, Circuit Judges.

Opinion by Judge Tashima

 

 

If you don’t take care of details the first time — it may cost you more later.

Schaub v. Schaub

If you don’t take care of details the first time — it may cost you more later.

A couple divorced in 1992. The divorce decree did not divide the parties’ property. The man now receives military retirement benefits from over 22 years of service in the United States military. In October 2010 the woman filed a motion seeking a post­.  The man opposed, arguing that the woman’s claim was barred by (1) the statute of limitations; (2) laches; and (3) estoppel. The superior court concluded that the woman could properly bring her motion, that her motion was not barred by the statute of limitations, and that laches barred only the retrospective division of the man’s retirement benefits. The man appealed. The court affirmed the decision on the merits, although it remanded on other issues.  If you don’t get the Alaska court to issue a property decree when you divorce your spouse can return decades later and ask for more.

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Statutes of Limitations in Alaska

Petro Alaska v. Davis Wright Tremaine

Corporation’s shareholders brought a derivative suit against a shareholder-director and the corporation’s former attorneys for fiduciary fraud, fraudulent conveyance, legal malpractice, and civil conspiracy. After an evidentiary hearing, the superior court ruled all the claims were time-barred. The Alaska Supreme Court affirmed the dismissal of all claims accept two claims against the law firms.  Thirty five pages of information on statutes of limitations, tolling, discovery rule, and the distinction between attorney fee awards as damages versus costs.

Statutes of Limitations in Alaska

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Alaska License Revocation Hearings

CLAYTON WALKER, JD

JULY 20, 2013

 

Patrick

v.

Municipality of Anchorage,

Anchorage Transportation Commission

ALASKA SUPREME COURT

S-14360

No. 1464 – July 19, 2013

 

The Alaska Supreme Court issued another decision concerning Alaska administrative board process of revoking chauffeur’s licenses. The case doesn’t break new ground. However, it stands as a reminder

Continue reading “Alaska License Revocation Hearings”