Number one blog for finding anything that has to do with the law. Read up on the law and know your rights. Labor Laws, Wage Laws, Contract Laws, and anything else that has to deal with justice and rights.
Wednesday, August 7, 2013
As Cost of Importing Food Soars, Jamaica Turns to the Earth
Thursday, June 20, 2013
Advertising: Longing to Stay Wanted, MTV Turns Its Attention to Younger Viewers
DealBook: Headhunter for the Rich Turns on Them
Wall Street’s masters of the universe have a new enemy: Adrian Barrie Smith.
Mr. Smith, a British recruiter who supplies butlers, maids and other domestic workers to some of the world’s wealthiest families, has turned on his former clients.
Over the last 18 months, Mr. Smith has filed lawsuits against the families of some of the most prominent names in finance, including Stephen A. Schwarzman, the chairman of the Blackstone Group; Carl C. Icahn, the activist investor; Leonard Blavatnik, the Russian investor who recently acquired Warner Music; Howard Lutnick, the chairman and chief executive of Cantor Fitzgerald; and George Soros’s former wife, Susan Soros Webber. To top it off, he filed a suit against Jerry Seinfeld and his wife, Jessica. Before that, he sued Ron Perelman, the billionaire investor, and the singer Mariah Carey.
This week, Mr. Smith is expected to be in court with a case against the wife of Kenneth A. Buckfire, co-founder of Miller Buckfire, the restructuring firm.
In virtually every instance, Mr. Smith has accused his clients of some form of breach of contract and has then trotted out a list of complaints about race and age discrimination. His targets see it as mudslinging, even extortion. Mr. Smith says he is simply trying to get the truth out about New York’s powerful.
“I could tell you stories that you simply would never believe,” Mr. Smith told me in a recent e-mail. “Who sits in the private planes and homes, dinner parties of the elite? The butlers, the nannies, the housekeepers.” He added, “And who do they e-mail, and tell all the gossip to? Me.”
When I first heard of Mr. Smith a little more than a year ago, I have to admit, I was intrigued. He promised the secrets of the city’s biggest names and stories worthy of a Park Avenue version of the TV show “Desperate Housewives.” He offered himself up as a Robin Hood crusading on behalf of the working class that serve the wealthiest.
But I came to believe that his intent could well be to tell fanciful stories in hopes of drawing media attention to extract settlement payments in his lawsuits.
In 2011, Mr. Smith was convicted of aggravated harassment of a potential client, Tania Higgins, the wife of a hedge fund manager. “I will have a really great laugh when I see your house crumble,” he said in a voice mail message to her that included profane language that can’t be printed here. “I will have my revenge.”
When it became clear that I intended to write about him, Mr. Smith sent a series of blistering e-mails threatening me with a lawsuit. “Bring your lawyer. You personally will be sued,” he said in one e-mail. “You are on notice! A jury made up of New Yorkers will judge you, plus all your colleagues, and the press worldwide,” he told me.
One of his early rambling e-mails said, “It would be nice if someone focused on the truth rather than merely just making me look foolish.” But he quickly moved to more threats: “Who are you taking money from? Who are you doing a favor for? Someone got to you today. Right?” His final e-mail on Monday said, among other things, “You throw dirt on me, and surely it’s my right to return the favor. Walk away. That’s my advice.”
In an interview last year with a colleague of mine, Mr. Smith admitted that he had a temper, and that “curse words were used” in some of his previous business dealings. But he defended himself against allegations that he was a bully who had harassed, or even blackmailed, his high-powered clientele.
“Do I look like a bully? Do you see any tattoos on me? I don’t even drink,” he said.
And yet his Twitter account is an unfiltered diatribe against his targets.
“Gail Golden Icahn is so lazy she cannot squeeze her own toothpaste, or switch on the TVs, cook, clean or drive a car. She hires someone!” he wrote.
Another, misspelling included, said: “Rupert Murdock apparently aided his friend Nelson Peltz to burn his house to the ground for insurance money. Tommy Mottola helped. Wow.”(Mr. Mottola’s former wife is Ms. Carey.)
In his case against the Seinfelds, he contended that the family’s butler rejected a qualified housekeeper because the butler said the Seinfelds would think “she is not cute enough and she’s a little fat.”
I mention these claims not to dignify them, but rather to illustrate the nature of his claims.
In my reporting, I discovered that Mr. Smith had outstanding lawsuits against media organizations including the News Corporation, the Daily Beast, and yes, even The New York Times. (Ms. Higgins’s case against him was mentioned in passing in an article about housekeepers in the New York section last year.) He also brought a case against The Daily Telegraph in Britain, contending that the paper used a photograph of Mr. Smith without his permission.
In a twist, after threatening to sue the musician Lou Reed in 2011 and getting into a heated argument with Mr. Reed’s manager, Mr. Smith had the manager arrested on charges of harassment. That case was dismissed, but a separate case was brought against Mr. Smith, who pleaded guilty to a charge of aggravated harrassment in the second degree.
In Ms. Icahn’s case, Mr. Smith was hired to find a housekeeper but was quickly fired after she discovered he was finding potential prospects on Craigslist, not from the pool of experienced housekeepers he said he had relationships with, according to people briefed on the case. The cases against the others seem equally thin.
When I called many of the subjects of his suits, virtually every one of them refused to speak about him or even provide a “no comment.” They all said that they feared his retribution, name calling and other backbiting.
Oddly enough, Mr. Smith’s litigious efforts appear to be working, at least outside of court. Mr. Schwarzman paid about $19,000 to settle his case, according to people briefed on it, hoping Mr. Smith would go away. Ms. Icahn offered him $1,500, which he rejected.
But the courts could be slowing Mr. Smith down. Last December, the city’s small-claims court barred Mr. Smith from bringing any new cases without receiving permission from the court in advance, citing 51 cases he has brought since 2006. The order said it was intended “to avoid the possibility of the use of the small-claims part for the purpose of harassment.” On Tuesday, Mr. Buckfire’s lawyers are planning to seek a permanent injunction stopping Mr. Smith’s lawsuit against their client.Mr. Smith now says he is writing a book. The title? “Filthy & Rich in New York City.”
Thursday, April 25, 2013
Advertising: Trying to Burnish Its Image, Johnson & Johnson Turns to Emotions
Sunday, November 18, 2012
DealBook: As Labor Talks Collapse, Hostess Turns Out Lights
What might be the last Twinkie in America — at least for a while — rolled off a factory line Friday morning. It was just like the millions that had come before it, golden, cream-filled empty calories, a monument to classic American junk food.
But it is likely to be the last under the current management. After not one but two bankruptcies, Hostess Brands, the beleaguered purveyor of Twinkies, Ho Hos, Sno Balls and Wonder bread, announced plans to wind down operations and sell off its brands.
Since filing for Chapter 11 bankruptcy protection in January, Hostess has been trying to renegotiate its labor contracts in a bid to cut costs. But the talks fell apart, and last week one union went on strike.
The so-called liquidation will probably spell the end of Hostess, an 82-year-old company that has endured wars, countless diet fads and even an earlier Chapter 11 filing. Although the company could theoretically negotiate a last-minute deal with the union, Hostess is moving to shut factories and lay off a large majority of its 18,500 employees.
But Twinkies and the other well-known brands could eventually find new life under a different owner. As part of the process, Hostess is looking to auction off its assets, and suitors could find value in the portfolio.
“The potential loss of iconic brands is difficult,” said the company’s chief executive, Gregory F. Rayburn. “But it’s overshadowed by the 18,500 families that are out of work.”
The company’s current problems stem, in part, from the legacy of its past.
An amalgam of brands and businesses, the company has evolved over the years through acquisitions. In the 1960s and 1970s, the company, then called Interstate, bought more than a dozen regional bakeries scattered across the country. A couple of decades later, it paid $330 million for the Continental Baking Company, picking up a portfolio of brands like Wonder and Hostess.
As the national appetite for junk food waned, the company fell on hard times, struggling against rising labor and commodity costs. In 2004, it filed for bankruptcy for the first time.
Five years later, the company emerged from Chapter 11 as Hostess Brands, so named after its most prominent division. With America’s new health-conscious attitude, it sought to reshape the business to changing times, introducing new products like 100-calorie Twinkie Bites.
But the new private equity backers loaded the company with debt, making it difficult to invest in new equipment. Earlier this year, Hostess had more than $860 million of debt.
The labor costs, too, proved insurmountable, a situation that has been complicated by years of deal-making. The bulk of the work force belongs to 12 unions, including the International Brotherhood of Teamsters and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.
The combination of debt and labor costs has hurt profits. The company posted revenue of $2.5 billion in the fiscal year 2011, the last available data. But it reported a net loss of $341 million.
With profits eroding, the company filed for Chapter 11 in January. It originally hoped to reorganize its finances, seeking lower labor costs, including an immediate 8 percent pay cut.
The negotiations have been contentious.
The Teamsters, which has 6,700 members at Hostess, said it played an instrumental role in ousting Hostess’s previous chief executive, Brian J. Driscoll, this year after the board tripled his compensation to $2.55 million. The union also hired a financial consultant, Harry J. Wilson, who had worked on the General Motors restructuring.
While highly critical of management missteps, the Teamsters agreed in September to major concessions, including cuts in wages and company contributions to health care. As part of the deal, the union was to receive a 25 percent share of the company’s stock and a $100 million claim in bankruptcy.
“The objective was to preserve jobs,” said Ken Hall, the Teamsters’ general secretary-treasurer. “When you have a company that’s in the financial situation that Hostess is, it’s just not possible to maintain everything you have.”
But Hostess reached an impasse with the bakery union. Frank Hurt, the union’s president, seemed to lose patience with Hostess’s management, upset that it was in bankruptcy for the second time despite $100 million in labor concessions. He saw little promise that management would turn things around.
“Our members decided they were not going to take any more abuse from a company they have given so much to for so many years,” said Mr. Hurt. “They decided that they were not going to agree to another round of outrageous wage and benefit cuts and give up their pension only to see yet another management team fail and Wall Street vulture capitalists and ‘restructuring specialists’ walk away with untold millions of dollars.”
About a month ago, Mr. Rayburn said, the bakers union stopped returning the company’s phone calls altogether. For its part, the bakery union said the company had taken an overly aggressive approach. David Durkee, the union’s secretary-treasurer, said Hostess had given an ultimatum. “They said, ‘If you do not ratify this, we are going to liquidate based on your vote.’ ”
With the company standing firm, the bakery union struck last week, affecting nearly two-thirds of the company’s factories across the country. The Teamsters drivers honored the picket line, further shutting down the operations. The company gave union members until 5 p.m. on Thursday to return to work.
Mr. Rayburn said the financial strain of the strike was too much for the company, which had already reached the limits of its bankruptcy financing. Over the last week, Hostess lost tens of millions of dollars as many customers’ orders went unfilled. And its lenders would not open their wallets one more time.
By Thursday morning, Hostess’s executives were ensconced in the company’s headquarters in Irving, Tex., still hoping that enough employees would return to work to resume production. A small number of workers had already crossed the picket lines that had sprung up at most of the baker’s factories, but more than 10 plants remained well below their necessary capacity.
Mr. Rayburn’s deadline of 5 p.m. passed without either side backing down. Soon after, executives asked the company’s legal advisers to finish the court motions that would begin the liquidation. Papers had been drawn up well before that afternoon.
Around 7 p.m., Mr. Rayburn had his final discussions with the company’s board and his senior managers and made the call to begin winding down.
“We were trying to focus on where people were having success, but I had to make a call,” Mr. Rayburn said.
Thursday, October 18, 2012
Square Feet: Gritty Koreatown Block Turns Hot With a Taste of Home
Sunday, September 23, 2012
Deals Competition Turns Into Free Online Transactions Class
It started in 2009 with a first-of-its kind transactional law competition in which small teams of law students competed to negotiate the best deals for fictional clients.
The meet was popular enough that its creator, Drexel University Earle Mack School of Law professor Karl Okamoto, took the idea a step further in 2011 by launching LawMeets, a free website that presents law students with transactional simulations. The students are presented with a business scenario and then submit videos in which they offer legal advice. The videos are rated by their peers and the best are evaluated by experts, who offer video feedback for all participants to view.
With a fresh grant of $500,000 from the National Science Foundation, LawMeets in October will expand its offerings with the first in a series of free online courses that combine lectures and simulations exploring the finer points of transactional law.
Okamoto hopes the LawMeets programs will help to fill a curricular void at law schools, where many business law courses focus on legal doctrine and precedents rather than the nuts-and-bolts of deals.
"Very few of these courses talk about how to get a deal done," Okamoto said. "Even in most business organizations classes, there's limited discussion on how to form an LLC and draft an operating agreement."
The first LawMeets course, the Basics of Acquisition Agreements, will last for two weeks -- from October 23 to November 7. The course is what is known as a MOOC -- massive open online course, a technology that law schools are only beginning to experiment with.
The course will include four video lectures, four interactive simulations and two panel discussions moderated by LawMeets faculty and transactional lawyers. Participants may view the lectures online at their own convenience, although there are cutoff dates for the student video submissions.
The lectures will be delivered by Okamoto; DLA Piper partner Jay Finkelstein; University of California, Davis School of Law professor Afra Afsharipour; and Cornell Law School professor Charles Whitehead.
Sixty participants have already signed up for the inaugural class in the few days since it was announced, some as far away as the United Kingdom and Australia. Okamoto hopes that 500 students participate, but the online platform can support thousands of users, he said.
Individual students can participate, but Okamoto hopes that law professors will incorporate its mini-courses into their own classes.