Archive for 2011

10 New Year's Resolutions for your Company

Here are 10 New Year’s Resolutions for Your Business that will get this year off to a great start!  Be clear and concise about company policies. Review your employee manual and other policies for any necessary updates. If you don’t have one to review and update, set a firm deadline for drafting one. Green your…

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Forfeiture of a Charter: Additional Issues That Arise for LLC's

When the Maryland State Department of Assessments & Taxation (the “SDAT”) forfeits an entity’s charter, that entity can no longer transact business in Maryland. While losing the right to transact business creates problems for any type of entity, there are some additional issues specific to LLCs. For example, the Maryland General Corporation Law (the “Corporations…

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Court Takes A Peek Behind Corporate Veil

“Piercing the corporate veil” is a legal concept by which a court would look through a corporate entity to find the owners liable for the obligations of the business. In October of this year, the Court of Special Appeals of Maryland considered piercing the corporate veil of a company that was being sued for payment…

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The Rights Of An Unlicensed Home Improvement Contractor

Designed to protect homeowners from unlicensed contractors, the Maryland Home Improvement Law renders a contract between an owner and unlicensed contractor unenforceable. Essentially, if you are a contractor that performs home improvement work for a home owner, but you do not have a license, there will be no obligation by the home owner to make…

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A Common Contract Clause Might Not Be So Useful After All

Most clauses that typically appear in contracts serve useful and important purposes. But a recent federal court decision sheds some doubt about the effectiveness of one type of clause that many contracts contain. The clause that the court considered was one that provided that, if one party breaches the contract the non-breaching party will be…

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Maryland Prevailing Wage Laws Can Make a General Contractor Liable for Subcontractor’s Failure to Pay Employees

The Prevailing Wage laws are found in the State Finance and Procurement Article of the Maryland Annotated Code at 17-201 et. seq. Section 17-222(b)(2) states that the “contractor and the subcontractor shall be jointly and severally liable for restitution to the subcontractor’s employees” for payment of less than the prevailing wage. Further, 17-222(b)(1) also states…

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Payment in Governmental Construction Contracts in Maryland

The Maryland Court of Special Appeals recently denied payment to a governmental construction contractor for change order work that was performed and agreed upon onsite, because the contract required approval by the County Council regarding any amendment to the contract. Specifically, an architectural and engineering company entered into a governmental contract with Baltimore County for…

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Timely Bid Protests Offer A Second Chance at Government Work

Many businesses now look to the federal government for work because of the economic downturn, including BRAC, associated projects, and the opportunities created by set-aside contracts. Oftentimes, however, a contractor will have submitted its best proposal only to find that that it has not been successful and therefore must face the question of whether to…

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