Cleveland Ohio Employment Attorneys
Mansour, Gavin, Gerlack & Manos Co., L.P.A.

Employment Law Practice Areas and Legal Definitions

Labor Laws:
Historically, labor laws have focused on such matters as eliminating unsafe workplace conditions, securing a living wage for employees, and eliminating, or at least, tempering the strife that often occurs between employee and employers. Since the appearance of organized labor, laws have established collective bargaining rights, and have sought to prevent either employers or employees, individually or through associations or unions, from engaging in unfair labor practices. It is well-established, by various statutes, that both sides to a labor dispute are legally required to engage in good faith collective bargaining.  Modern labor laws also address such complex and often emotionally charged issues as strikes, picketing, mutual injunctive relief and lockouts.

Labor and Employment attorneys can help employers with the following:

• Reviewing client employee handbooks, manuals and policy statements
• Assisting with federal and state wage and hour law issues and claims
• Representing employers before the Equal Employment Opportunity Commission (EEOC) and state human rights agencies
• Providing advice on issues involving National Labor Relations Board (NLRB) representation and elections including campaign assistance
• Representing employers in unfair labor practice proceedings before the National Labor Relations Board and state labor agencies
• Providing representation for grievance and arbitration hearings under collective bargaining agreements
• Collective bargaining on behalf of clients including strategic planning and acting as spokesperson
• Counseling on issues related to strikes or lockouts and providing related litigation support

Employment Law:
Employment law is a well-established body of statutes and judicial decisions covering all rights and obligations within the employer-employee relationship, including current employees, job applicants and former employees.  It covers a wide range of legal issues, ranging from employment discrimination and wrongful termination to matters involving wages and workplace safety.  Many employment law issues are governed by applicable federal and state employment law, but a number of issues are determined according to basic contract law.

Employee Rights:
All employees have basic rights arising from both state and federal laws.  Some of these rights include:  the right not to be subjected to discrimination on the basis of race, national origin, skin color, gender, pregnancy, religious beliefs, disability, age, and in some places, marital status or sexual orientation; the right to a workplace free of harassment; the right to be paid at least the minimum wage as provided by federal or state law; the right to overtime wages as provided by federal or state law; the right to a safe workplace and the right to take leave to care for a personal or family member's serious illness, or following the birth or adoption of a child.

Employment Discrimination:
Discrimination generally occurs when an employee is intentionally treated differently because of race, color, religion, national origin, disability, gender, age, and in some states, sexual orientation.  Employment discrimination claims may be prosecuted under various state and federal statutes.  Even if the employee’s evidence is sufficient to show discrimination, an employer may be able to justify a particular job action by demonstrating that such treatment arose out of business necessity, or that a legitimate job qualification required consideration of factors that had an unintentional discriminatory effect.  When the employer makes such a legitimate justification, the employee must show that discrimination, not the employer’s justification, was the true reason for the action.

Age Discrimination:
It is unlawful for an employer, employment agency or labor union to discriminate in employment on the basis of age.  This includes refusing to hire an individual or firing an employee.  It also includes an individual’s compensation, the terms, conditions, and privileges of his or her employment, and all employee benefits.

Disability Discrimination:
Both the Americans with Disabilities Act (ADA) and the Rehabilitation Act of 1973 protect individuals with disabilities from employment discrimination.  An individual with a disability is defined as someone who has a physical or mental impairment that substantially limits a major life activity, has a record of having such a physical or mental impairment, or is regarded as having such impairment.  The term is broadly defined to include any physiological, mental or psychologically-based impairment, but it does not include mere physical characteristics or cultural, environmental, or economic impairment—the impairment must cause a substantial limitation to a major life activity.  Temporary conditions, such as a broken arm or the flu, would not be considered substantial limitations amounting to a disability entitled to statutory protection.

Wrongful Termination:
Termination of employment cannot be classified as "Wrongful Termination" unless it is in violation of some fundamental public policy, as set forth in a state or federal statute, regulation or constitutional provision.  Examples of Wrongful Termination include situations where:

• An employee is discharged for failure to comply with an order to perform an act that violates some law, ordinance or regulation, or
• An employee is discharged in retaliation for complaints about conduct by the employer that he or she believes to be unlawful, e.g., failure to pay overtime, or failure to comply with safety regulations.

Sexual Harassment:
Sexual harassment is any unwanted and unwelcome sexual behavior.  It involves a broad range of conduct, including such verbal harassment as derogatory comments, explicit sexual comments and descriptions of sexual exploits, leering or requesting sexual favors.  The term also describes physical harassment, ranging from inappropriate touching to outright sexual assault. In order to be classified as illegal the conduct in question must be both unwelcome and offensive to the victim.

Sexual harassment is a form of sexual discrimination, prohibited in employment settings under Title VII of the Civil Rights Act of 1964.  Title IX of the 1972 Education Act makes sexual harassment in schools or other educational settings unlawful.  The Federal Fair Housing Act also provides protection against sexual harassment, and most states have enacted legislation making it unlawful.

Overtime Compensation:
Under both State and Federal law employers are required to pay additional compensation to eligible employees who work more than forty hours during any seven-day period.  For every hour over forty hours in any given workweek the employer must pay the eligible employee at least one and one-half times the employee's ordinary hourly rate.

Defamation (Libel & Slander):
Defamation is the communication of a false and unprivileged statement that exposes another to hatred, contempt or ridicule, or which causes him or her to be shunned or avoided, or which has a tendency to injure him or her in his or her trade or occupation.  The defamatory statement must be communicated to someone other than the person to whom it refers and it must refer to a living person.

Defamation communicated verbally it is called "Slander," but if it is communicated in writing, it is called "Libel".  As a general rule it is easier to recover damages in a lawsuit for libel than in a slander lawsuit.  Most defamation litigation in the employment arena concerns the employer’s “qualified privilege” to defame.  Under this concept, employers and former employers are often protected from liability for defaming employees or former employees.  By its very definition, however, the privilege is “qualified,” and not “absolute”.  It is generally limited to situations in which the employer or former employer is making a good faith communication of information to someone who has a legitimate interest in receiving it.  A good example of this is a former employer’s good faith response to a new or prospective employer’s inquiry about the job performance of a former employee.  Generally speaking, even if the information given is false and damaging and would otherwise give rise to a defamation lawsuit, it will be protected under the “qualified” privilege.

If the communication exceeds the scope of the privilege, the privilege is not available.  For example, if the communication to your new or prospective employer is not in response to an inquiry, but a voluntary and unsolicited communication, liability for defamation will attach if the information is untrue.  Even if the communication is made in response to prospective employer’s inquiry, false and damaging information will not be protected by the privilege if it is made with knowledge or reckless disregard of its falsity, or with the intent to cause injury to the former employee.  It is important to remember that however damaging it may be, a truthful statement cannot form the basis of a defamation lawsuit.  This legal truism is often expressed in the phrase:  "The Truth is a complete defense to a defamation action."

Severance Agreements:
A severance agreement is a form of settlement agreement under which an aggrieved employee agrees to accept an agreed sum of money in exchange for, among other things, abandoning all claims against the employer.  Where it can be negotiated, a severance agreement saves money and aggravation for both sides. Severance agreements commonly include such provisions as "mutual non-disclosure of terms," an agreement that the employee will not compete against the employer, and that neither the employer nor the employee will make negative comments about the other.

Trade Secrets Agreements:
Employment contracts frequently contain provisions for the protection of the employer’s “trade secrets”.  These may range from customer data of one kind or another, to company designs, or even “secret recipes”.  Typically, the Trade Secrets clause of an employment contract will provide for “liquidated” damages in the event of disclosure of the information.  Liquidated damages are a set dollar figure agreed-upon in advance, to be paid in the event the contract clause is violated.

Non-competition Agreements:
Non-competition agreements are provisions contained within an employment contract which restrict the activities of an employee after leaving the service of the company.  Courts treat non-competition agreements with suspicion—with an eye toward preventing unnecessary and unreasonable interference with a person’s livelihood after severance of the employer/employee relationship.

The Courts will often decline to enforce “unreasonable” non-competition agreements.  A non-competition clause in the agreement under which a used car lot employs an auto mechanic will likely be summarily rejected by the court as unreasonable.  The agreement must be reasonable in duration.  A non-competition agreement barring the sales manager of a used car lot from engaging in the used car business for the rest of his or her life, or for 50 years, would probably be denied enforcement, while one with a 2-year term might well be enforced.  Non-competition agreements must be reasonable in the area covered.  If the agreement precludes the sales manager from engaging in the used car business anywhere in North America, it will almost certainly be denied enforcement as unreasonable.  If the area is limited to Cleveland, for example, it would probably withstand court scrutiny.

Whistleblower Claims:
Whistleblower Claims involve employer retaliation, sometimes to the extent of Wrongful Termination, against an employee who reports the improper or unlawful conduct of another employee or of management itself to government authorities.  It is illegal for an employer to retaliate against a “whistleblower.”

Administrative Law:
Administrative Law is a system of justice outside the judicial system that is designed to bring resolution to conflicts arising within a detailed and technical structure of regulations.  Administrative Law Courts have a reputation for resolving issues with greater speed and efficiency than the judicial system.  Final Administrative Law decisions can be challenged in the Courts, but not until all administrative remedies have been exhausted.  Final Administrative Law decisions can also be converted to Court Judgments and then enforced by any of the traditional remedies available for the enforcement of civil judgments.

Injunctions:
Injunctions are a type of Court Order that either requires or prohibits specified conduct or behavior.  Injunctions are remedies frequently used in employment cases.  They involve such situations as injunctions requiring striking public employees to return to work, or injunctions requiring someone to stop engaging in an unlawful employment practice.  Willful failure to comply with an injunction can lead to a citation for contempt of court, and can result in significant money sanctions or even time in jail for the purpose of coercing compliance.

Workers’ Compensation:
Workers’ Compensation is a state-run system under which employees receive various types and levels of compensation for on-the-job injuries.  Generally speaking, the dollar amount of compensation in Workers’ Compensation cases is much lower than in ordinary civil actions to recover damages for personal injuries.  On the other hand, the level of proof required is much lower than in a personal injury case.  The claimant in a Workers’ Compensation case is not required to prove that the employer was negligent or otherwise at fault.  All the claimant need establish in a Workers' Compensation case is that the employee was injured in the course of his or her employment, and that the injury was not the result of the employee's own willful misconduct.

Employment Policy Manuals & Employee Handbooks:
An extraordinarily high percentage of Employment Law conflicts arise because there simply is no established company policy on a particular issue or the existing policy is either unknown or poorly understood.  Competent Employment Law counsel can help draft and put together a company policy manual that is both comprehensive and understandable, and an employee handbook that leaves no doubt as to what is expected from each employee, and what he or she can expect from the company.

Preparation and presentation of employee/management classes covering Ohio Sexual Harassment & Employment Discrimination Issues:
Most Sexual Harassment and Employment Discrimination cases these days are the result of ignorance of and lack of sensitivity to these issues at various levels of management.  Arranging for formal classes concerning these matters can be both expensive and inconvenient, but the results of employee/management education about these matters will usually pay enormous dividends in terms of smooth employer/employee relations, and also in the peace of mind associated with avoiding expensive litigation and exposure to civil liability.

Business Litigation:
Business litigation is the area of law that provides assistance in the preparation and presentation of a lawsuit or other resort to the courts to determine a legal question or matter in business situations.  Business can be any activity or enterprise entered into for profit, usually a company, a corporation, partnership or any such formal organization.  Business lawyers advise and represent businesses and financial institutions in such areas as business torts, class actions, complex contracts, financial forensics, government investigations, international dispute resolution, professional relations, real estate disputes, securities and antitrust, technology and intellectual property, professional malpractice, shareholder and corporate governance and telecommunications.  Business lawyers place an emphasis on achieving or defending against pre-judgment remedies, including pre-judgment orders for writs of possession, attachments, temporary restraining orders, and injunctions, as well as arbitration or mediation settlements and monetary compensation resulting from lawsuits.  Transactional business lawyers represent clients in matters relating to, but not limited to, organizational, operational and contractual documents for corporations, partnerships and limited liability companies, commercial transactions, mergers, real estate acquisitions, leasing and development and commercial financing.

Business Contracts:
Business contracts are written agreements spanning a broad range of the business relationships that occur in the life of a typical company.  They can include non-compete agreements, non-piracy agreements, non-disclosure agreements, restrictive covenants, employment agreements, producer agreements, sales representative agreements, consulting agreements, management agreements, franchise agreements, licensing agreements, deferred compensation agreements and independent contractor agreements.

Contracts are the very stuff upon which the marketplace is founded, and they provide the basis for a large share of business litigation.  The remedies for breach of contract include money damages and injunctive relief expressly directing one of the parties to perform a contractual obligation.  This remedy involves a form of injunction called a “specific performance” decree.  The remedy of specific performance is often called an “extraordinary” equitable remedy, in that courts will not grant specific performance except in a sharply limited number of circumstances.  Punitive damages are not an available remedy in a contract lawsuit.

Business and Corporate Services:
Business and corporate services involves advising companies and investors in the purchase, sale and mergers of businesses.  The services provided include forming and funding start-up companies, buying and selling practices, assets, divisions and companies, engaging in private stock offerings and re-sales, structuring venture capital financing, forming off-shore sales and sourcing entities, structuring commercial and partnering transactions and syndicating real property acquisitions.

Mergers and Acquisitions:
The phrase "Mergers and Acquisitions" refers to corporate finance strategy and management dealing with the merging and acquiring of different companies as well as other assets.  Usually mergers occur in a friendly setting where executives from the respective companies participate in a due diligence process to ensure a successful combination of all parts.  Corporate mergers are often aimed at reducing market competition.  On other occasions, acquisitions can occur through hostile takeover by a "corporate raider" purchasing the majority of outstanding shares of a company in the open market.  In the United States, business laws vary from state to state whereby some companies have limited protection against hostile takeovers.

Technically, what differentiates a merger from an acquisition is how it is financed.  Simply put, a merger is a combination of two companies into one larger company.  A "merger" or "merger of equals" is often financed by an all-stock deal (a stock swap).  An all-stock deal occurs when all of the owners of stocks of either company get the same amount of stock in the new combined company.  The term "demerger" is sometimes used to indicate the effective opposite of a merger, where one company splits into two, the second often being a separately listed stock company if the parent was a stock company.  An acquisition (a larger company buying out a smaller company) can involve a cash and debt combination, or just cash, or a combination of cash and stock of the purchasing entity, or just stock.  In addition, the acquisition can take the form of a purchase of the stock or other equity interests of the target entity, or the acquisition of all or substantially all of its assets.

Franchises and Other Types of Business Marketing:
A great many small businesses in the marketplace today are operated not as purely independent businesses, but as franchises, distributorships, or any of various types of licensing arrangements.  All of these businesses are created through written agreements containing express and implied warranties, and it is not uncommon for issues to arise resulting in litigation.

Government Regulation:
Businesses often find themselves at odds with one governmental agency or another, whether it be the local zoning commission, the federal Environmental Protection Agency, the Federal Trade Commission, or any one of several hundred other federal, state and local agencies.  Conflicts with governmental agencies are usually covered under state and federal statutes, and also under state and federal regulations and local ordinances.  As a general rule such conflicts are litigated before administrative tribunals under administrative law.  This usually imposes fewer formal requirements on the parties and produces a quicker result, but sometimes it does so at the expense of someone’s rights.  If you feel that your rights have been violated in an administrative hearing that has gone against you, the judicial system will consider an application for relief, based upon allegations that there was an abuse of discretion in the holding against you.

Defamation:
Defamation is the communication of a false and unprivileged statement that exposes another to hatred, contempt, or ridicule, or which causes him or her to be shunned or avoided, or which has a tendency to injure him or her in his or her trade or occupation.  The defamatory statement must be communicated to someone other than the person to whom it refers, and it must refer to a living person.  Defamation communicated verbally it is called Slander, but if it is communicated in writing, it is called Libel.  Most defamation litigation in the business arena concerns the employer’s “qualified privilege” to defame.  Under this concept, employers and former employers are often protected from liability for defaming employees or former employers.  By its very definition, however, the privilege is “qualified,” and not absolute.  It is generally limited to situations in which the employer or former employer is making a good faith communication of information to someone who has a legitimate interest in receiving it.

Breach of Fiduciary Duty:
The formation of a "fiduciary relationship" begins when someone places special confidence and trust in another who has substantially superior knowledge and training, and also relies on that person to act in his or her best interest.  If this trust is knowingly and voluntarily accepted, a “fiduciary” relationship is said to exist.  This places a legal duty on the stronger of the two to act diligently in the best interest of the weaker party and never, under any circumstances to secure any advantage at the weaker party’s expense.  There are a limited number of circumstances in business transactions where a fiduciary relationship comes into play.  Courts tend to rigorously enforce fiduciary duties, and in the event of a willful breach often award punitive damages as well as compensatory damages.  Some common examples of fiduciary relationships are a trustee-beneficiary relationship, a doctor-patient relationship, a lawyer-client relationship and a corporate officer-stockholder relationship.

Licensing and Commercial Contracts:
Business services attorneys counsel clients in a wide range of commercial and intellectual property (IP) transactions.  They provide assistance in structuring, drafting, reviewing and negotiating commercial and IP agreements related to the development, acquisition and commercialization of technology, IP, goods or services.  The types of agreements involved in these transactions include:

• Software license, maintenance and support, source code escrow, end user license, patent and other technology license agreements
• Development agreements
• Purchase and supply agreements
• Manufacturing agreements
• Distribution, reseller, value-added reseller (VAR) and original equipment manufacturer (OEM) agreements
• Referral, marketing agreements
• Employment, consulting, technical services and outsourcing agreements
• Joint venture, strategic partner, technology transfer agreements
• E-commerce and Internet-related agreements (including web-based hosting agreements, application service provider (ASP) agreements, web site development, privacy policies and website terms of use)
• Non-disclosure agreements

Sales Commission Disputes:
In avoiding sales commission litigation there is no substitute for an artfully drafted agreement spelling out precisely how and at what rate sales representatives are to receive commissions.  Common usage and custom are also taken into consideration by courts in determining the issues, even where there is a written agreement.

Trade Secrets:
A trade secret is any information that can be used in the operation of a business or other enterprise and that is sufficiently valuable and secret to afford an actual or potential economic advantage over others.  Trade secret difficulties can be eliminated or, at least, minimized by effective legal language in employment and/or severance agreements, but situations will still arise from time to time where litigation presents the only viable solution.

Alternative Dispute Resolution:
Business disputes can be resolved traditionally, by way of litigation.  This involves the filing of a lawsuit in court that is then answered by the defendant.  Over a period of months and sometimes even years, a lawsuit makes its way through the system, ultimately to be decided by a judge sitting alone, or by a jury, presided over by a judge.  It is an expensive, tedious and time-consuming process.  The modern trend in the economic world is away from the courthouse in favor of one or the other of two less formal, less expensive, faster and more efficient methods of conflict resolution, called "mediation" and "arbitration".

Arbitration:
Arbitration is a method of Alternative Dispute Resolution. In this process, the parties jointly select a lawyer to act as arbitrator. The idea is to choose someone with an outstanding reputation for personal and professional integrity, with heavy litigation experience involving cases similar to the one in which the parties are currently involved. The parties may select either "binding" or "non-binding" arbitration. Some lawyers discourage their clients from participating in "non-binding" arbitration, seeing futility in the expense and inconvenience of a process that may prove a waste of time. Other attorneys discourage their clients from participating in "binding" arbitration, so that their options are preserved in the event of an unreasonable adverse ruling by the arbitrator.

Arbitration is more like a trial than is Mediation. For one thing, in binding arbitration the arbitrator's decision is virtually the same as a judgment. In both types, however, the arbitrator actually renders a decision, as opposed to simply making a recommendation. Each side submits an arbitration brief, containing a summary of relevant facts, a list of the legal issues thought relevant, and reference to the applicable law.  There is a hearing in the nature of a trial, but much less formal. It is usually held at the arbitrator's office. Sworn testimony may be offered, subject to cross-examination. The attorneys usually join in a stipulation agreeing that certain specified facts are not in dispute.

The rules of evidence are less rigorously applied in arbitration hearings than in trials. Sometimes the arbitrator announces a decision at the end of the hearing, but more often, the case is taken under submission by the arbitrator, the decision being communicated by letter to both sides within a week or two. The arbitration process takes a lot of pressure off the court system, and it has proven itself as an effective alternative method for the resolution of disputes.

Real Estate Financing and Transactional Services:
Typically, as they expand, growing businesses become more and more involved in real estate transactions, ranging from office space to retail store properties to warehouses and shopping mall syndication.  A qualified business lawyer can provide valuable assistance in traditional real estate purchase, sale and leasing transactions, and in dealing with environmental and various other issues arising out of industrial and agricultural redevelopment projects.

Real Estate Negotiations:
In major financial transactions, especially those involving real estate properties, it’s important to have a knowledgeable negotiator working for you, one who knows the law and whose loyalty to you is undivided.  Real estate brokers and agents depend on sales commissions for their livelihood.  If the sale does not occur they receive nothing for their time and energy, and this can create a conflict of interest.  You need someone representing you who is less concerned about a particular sale going through than with making certain your legal rights are protected.

Title Clearance Issues:
In large urban centers title insurance has reduced the need for in-depth title searches by real estate lawyers, but this is not necessarily the case in rural areas of the state.  As with any other insurance policy, title insurance documents are usually packed with disclaimers of one kind or another, all in highly technical real estate jargon and legalese, and all set forth in the tiniest of fine print.  Failure to fully understand the import of a particular clause or disclaimer in the policy can result in financial consequences at some later date, when it may be too late to do anything about it.  If you find things in the title policy you don’t understand, your real estate attorney can explain them to you and can also point to you any items that need to be challenged and resolved.  Given the amount of money involved in modern real estate transactions, it is critical to make certain that title problems are not going to make the deal a disaster.

Quiet Title Matters:
Sometimes a particular piece of real property has title defects of such significance that no sale or other transfer of ownership can occur until they are resolved.  The usual method of clearing title defects is a lawsuit called a “Quiet Title” action.  In the Quiet Title action, the Court would receive and consider evidence on the issue, and if satisfied that the judgment had been discharged, would issue an order dissolving (removing) the judgment lien.

Construction Liens:
When doing building construction or repairs, building contractors often utilize a legal device called a “construction lien” as a means of making certain they will be paid for their labor and materials.  The creation of a lien involves written notice to the owner of the property and other formal requirements, and its enforcement is subject to strict procedural rules. Once a valid lien attaches to the property, however, it operates as a claim against the property which, if it remains unpaid, can ultimately result in foreclosure proceedings.

Real Estate Document Preparation:
Whatever may be said during real estate negotiations, whatever promises may have been made, it is the final written documents that will control what happens.  Many of the closing documents involve the completion of pre-printed forms, but sometimes the details of a particular transaction require modification of a form to provide adequate protection.  Your real estate attorney can either prepare all of the documents, or can review the documents that have been prepared, explaining them to you and suggesting changes, as needed, for your benefit.

Closing Attorney Representation:
The majority of transactions are concluded routinely, with no unanticipated problems and as it may well appear after the fact, no need for legal representation during the closing.  There is no legal requirement for representation by counsel at the closing, but most lenders and prudent investors will do so.  It is at closing that critical disputes often arise concerning the language in a particular clause or some other technical aspect of the transaction.

Sales Breach Issues:
Once a written agreement has been executed by both parties to a real estate transaction its provisions are legally binding.  Which judicial remedies, if any, may be available for the breach of the agreement depends on a variety of factors.  There may, for example, be remedies available to the Buyer if the Seller breaches that are not available to the Seller, if the Buyer is the breaching party.

Land Development Issues:
Land development projects grow more difficult and complex with each passing year.  Your real estate lawyer can guide you through the labyrinth of zoning regulations, environmental agency requirements, building, fire and safety codes and the various other requirements for doing business in this complicated field of real estate.

Foreclosure Issues:
When mortgage payments fall behind, the lender may ultimately take steps to foreclose.  Sometimes the best course is to seek temporary relief in the United States Bankruptcy Court.  Since the mortgage is a “secured” debt, it cannot be discharged in bankruptcy.  The filing of a bankruptcy petition triggers an automatic federal court order temporarily staying (suspending) any pending foreclosure sale.  With the additional time provided by the stay, the defaulting borrower can often make arraignments to sell the real property for a much higher price than would be obtained in a foreclosure sale.

Essentially, a foreclosure sale involves sale of the real estate at public auction.  The proceeds of the sale are then applied against the debt owed on the mortgage.  Any funds remaining after the mortgage (and the foreclosure costs) are paid will be transferred to the defaulting borrower.  What happens when the proceeds of the auction sale are insufficient to pay off the mortgage and/or the foreclosure costs depends on the law where the property is located.

Eminent Domain Proceedings:
Eminent Domain proceedings are used by governmental agencies to acquire real estate (even when the owner doesn’t want to sell it) for use in a project of some kind for the general public benefit.  A recent decision by the United States Supreme Court has greatly expanded the discretion of state and local governments to seize property, even when they do so for the benefit of a private company, if they feel the project contemplated by the private company will benefit the public.  In mounting a defense to an eminent domain action, the landowner can resist the seizure itself, and can also challenge the dollar amount the agency is willing to pay for the land.  The landowner in an eminent domain proceeding is entitled to the fair market value of the land.

1031 Exchanges:
Internal Revenue Service Code §1031 provides a means for deferring the capital gains tax consequences of a real estate transaction when the proceeds of sale from one transaction are to be promptly reinvested in another similar type property.  The key word here is “deferral".  What happens is that the tax basis of the old property is transferred to the new, so that when the new property is ultimately sold, the tax will be due.  Of course, if the second property is also sold under a 1031 exchange, the tax will be deferred yet again.

Zoning & Land Use Issues:
Zoning and land use laws come into play in every real estate development, whether large or small.  Before buying real estate property or making major improvements to property you currently own, it is absolutely essential that you know about and understand the existing zoning and land use restrictions.

As a general rule, specified land uses are compatible.  You cannot, for example, put in a dairy herd, a shopping mall or an office building on land zoned for residential use.  It is sometimes possible to persuade local authorities to change the zoning for a particular area, but it can be very difficult, very expensive and it can take a long time.  In some cases it is possible to secure a zoning variance.  A variance is in the nature of an “exemption” for the particular parcel of real estate, from a particular zoning requirement.  Zoning changes and variances both involve extremely complex and difficult legal and political skills and often require public hearings before governmental agencies.

Condominium Conversions:
The upsurge in land values in recent years has contributed to the growing popularity of condominium living.  More and more people, especially first time home buyers, are turning to condominiums for their first real estate investment.  As the cost of building materials and construction labor has increased, so has the interest in the conversion of mobile home parks and apartment buildings into condominiums or cooperative corporations.  Condominium conversions can be extremely profitable, but they are long-term projects, sharply regulated by state and local legislation.

Condominium Association Matters Including Common Area Fee Recovery:
While Condominium Associations are autonomous, they must comply with state and federal law and with the provisions of their own bylaws.  A qualified real estate lawyer can provide timely and useful advice to Condominium Associations so that they may accomplish this purpose.  Association officers can be held individually responsible if the Association fails to comply with the law.

If you or someone you know needs the assistance of an experienced Cleveland Ohio Employment Attorney, call Mansour, Gavin, Gerlack & Manos Co., L.P.A. today at  866-343-0019 ext. 257, or complete the contact form provided on this site to schedule your free consultation.