Vann & Sheridan Attorneys at Law

E-Discovery: Why It Can Impact Your Law Suit

December 20, 2010

Filed under: Litigation — jrvann @ 11:15 am

What happens to you and your fellow co-workers when the office network is down? Complete and utter chaos, right? This is a fairly predictable answer since in today’s world, paper files are becoming a thing of the past. Instead, we scan documents into the system, make an electronic file, and people then view the information on their laptops, smart phones, or i-Pads.

But because every form of data nowadays seems to involve the phrases “save”, “email,” or “text me,” such electronic information is routinely requested in the discovery process of litigation earning the appropriate title, “e-discovery.” And while yes, it is sleeker and more advanced than its paper counterpart, it is important to understand that it also shares one important similarity with regular discovery: it is governed by the same rules which provide that withholding or destroying discovery information will result in serious legal consequences.

This issue of parties destroying or withholding e-discovery was most notably seen in the case, Victor Stanley, Inc. v. Creative Pipe, Inc. The Court found that the defendant did in fact destroy and withhold requested e-discovery, which resulted in Magistrate Judge Paul Grimm entering a default judgment in favor of the plaintiff. Additionally, Judge Grimm stated that the defendant’s actions constituted contempt of court and he ordered the defendant to be imprisoned for up to two years unless and until he paid the plaintiff’s attorney fees and costs.

The lessons to be learned from this are:

  1. businesses should prepare ahead of time to make sure all emails and electronic documents are backed up at the business/server level and not rely on individuals to do so on their computers;
  2. businesses should be prepared if they become involved in litigation and work earnestly with their attorneys to follow all the proper e-discovery protocol.

Such collaborative efforts will greatly improve your ability to furnish all the necessary electronic information.

If you have questions about this type of process or how to insure accuracy in this area, please feel free to call us.

Equipping Your Employees and Company for the Worst

December 10, 2010

Filed under: Business Law — jrvann @ 8:09 am

When people encounter high pressure situations, their bodies react in one of three ways: fight, flight, or freeze.  What some employers do not recognize is that when employees find themselves in unexpected high stress situations, more often than not, workers freeze and are unable to adequately deal with the situation unfolding around them.

So how can employers prepare employees for these situations?  Here are a few tips:

  1. Act It Out: Role playing is an effective method for employees to see the right and wrong way to deal with emergency situations.  Not only does it allow employees to react naturally and see firsthand whether or not their instincts worked in a controlled environment, they also learn the proper way to handle crisis situations.  In other words, they are provided the tools and are allowed to learn in the process.

  2. Phone-y Conversations: Angered customers will often call employees to vent.  But sometimes, these discussions turn verbally abusive.  Here are a few cues which allow employees to take the conversation in a more positive direction:

    • “Mr. Jones, can I ask you a question?”—This will suppress an angered customer’s verbal outburst and cause them to lose their train of thought.
    • Try using empathy.  “I understand what you have said and I’d like to assist you with this problem, but I need you to lower your voice and not curse, otherwise I cannot focus my energy to solving this issue for you.”—Usually, people will respond to this by de-escalating their behavior.
    • If they continue their tirade, try: “Mr. Jones, if you’re still upset, will you please call back when you’ve cooled down?” –The strategy behind this language is to disengage the customer and give them an opportunity to call back when they are cooler, calmer, and collected so the conversation will travel in a more positive direction.

  3. Speak in Code: Having a code word or pre-determined way to deal with high pressure situations provides employees with a game plan and will hopefully allow them to call for backup/security should that be necessary.

  4. Write It Down: Litigation often will ensue after a high pressure situation.  In such scenarios, people will often have different recollections of the events.  As a result, employees should always write down exactly what happened as close as possible to when the situation ends.  That way, employers and companies will be legally protected from potential liability in the future.  Some companies even video the employees involved having the employees tell the story.

  5. Call a Counselor: Though some might be handling high stress situations just fine, it is a good idea to have a counselor on call or available for employees should they need it.

  6. Be Positive: Expressing appreciation and encouragement to employees that they successfully made it through a traumatic situation may assist them in dealing with any emotional repercussions and will build team morale.  Remember that isolation is the enemy of traumatic stress recovery.

  7. Keep an Eye on Everyone: Look out for any emotional red flags such as crying, panic attacks, depression, etc from employees who have recently dealt with high pressure situations.  This sort of behavior is a sign that employees need additional help and time to deal with their past experience.

  8. Is Public Relations Necessary?  If the owners/leaders of the company determine that the business might be in jeopardy of negative public perception, we suggest dealing with the press and public quickly.  In today’s environment, dealing with negative public perception quickly is essential.  Hiring an experienced public relations firm can be a real plus.

We hope these suggestions will help when your business faces stressful situations.  Please feel free to contact us if you have questions.

Frequent Foreclosures for North Carolina

December 3, 2010

Filed under: Creditor's Rights — jrvann @ 8:06 am

North Carolina has been making headlines.  Why?  Because in October 2010, the state’s residential foreclosure rate increased 40 percent from last year’s figure and 13 percent from September 2010’s figure.  According to the Irvine, CA based company Realty Trac Inc., which keeps tabs on default notices, auction sale notices, and bank repossessions, in October 2010, 4,818 North Carolina homes were involved in the foreclosure process.  This translates to one out of every 872 North Carolina households in foreclosure.

In comparison to other states, North Carolina ranks 31st in rate of foreclosure filings.  Ranked no. 1 is Nevada, followed by Arizona and Florida.   Vermont has the lowest foreclosure rate in the nation.

Yet despite recent foreclosure increases seen in states like North Carolina, in October 2010, foreclosures nationwide decreased by .04 percent from last year’s rate and 4.4 percent from September 2010’s rate.  The numbers suggest that in October 2010, one out of every 389 U.S. households received a foreclosure filing.  But even with this supposed decrease, October 2010 marks the 20th consecutive month where more than 300,000 U.S. homeowners received a foreclosure notice, says Realty Trac.

The issue of foreclosure is not limited to the residential market.  Commercial foreclosures are up as well.  Our experience seems to indicate that there are more commercial loan agreements which are nearing default and possible foreclosure than in the last year.

If you have questions pertaining to this area of law, please feel free to contact us.

 
 
 

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