If you would like to discuss your intellectual property rights or questions, please contact us today to schedule a consultation with Thomas Varnum.

In short, Admiralty law is the distinct body of law that governs activities occurring on navigable waters, including oceans, lakes, rivers, and streams.  Admiralty law, also referred to as maritime law, also governs some activities on land that relate to maritime activities such as loading or unloading ships.

The best definition I have seen comes from Professor Martin Davies, Admiralty Law Institute Professor of Maritime Law, Tulane University Law School and Director of Tulane’s Maritime Law Center.  Martin says:

• “Technically, admiralty law is the body of rules that define the scope of the court’s admiralty jurisdiction. Maritime law is the substantive law applied by a court exercising admiralty jurisdiction.”  Martin Davies, Teaching Admiralty Requires Dismissing Important Subjects, 55 St. Louis U. L.J. 48 (2011).
• “Maritime law is a broad and varied field, containing elements of contracts, torts, property, civil procedure, constitutional law, agency and environmental law, as well as such [unique] concepts as salvage and general average, which have no land-based counterparts.” Id.

In general then, maritime law is the law that governs maritime questions, generally relating to things that are “maritime in character,” such as marine commerce, marine navigation, shipping, sailors, and the transportation of passengers and goods by sea.

OK, what does that mean to me?

It means that if a legal matter touches or concerns the oceans, lakes, rivers, or streams, there is almost certainly going to be a unique factor related to maritime law, on which you should be advised by a maritime law practitioner.

Some every day examples include:

• Buying, selling, financing or chartering (leasing) a vessel
  • This includes unique planning issues in “how” (and “where”) a vessel is titled, documented and/or registered
• Boating accidents
• Personal injury or death aboard a vessel
• Personal injuries of people working in a maritime environment (e.g., on a vessel, for a vessel, at a port)
• Cargo matters (damage to cargo, non-conforming cargo)
• Towing & salvage of vessels
• Treasure salvage
• Coast Guard licensing and other regulatory matters
• Operation of Port Terminals or Marinas

If you have a legal question that relates to any of the above, or you have an issue that might otherwise be “maritime in character” – you owe it to yourself to consult a qualified and experienced maritime attorney.

Our attorneys George Rountree, III, Geoffrey A. Losee (both listed in Best Lawyers in America for their admiralty practice), and Jason L. Kesler routinely practice in the admiralty law arena.  If you have any questions, contact us!

This article is provided for informational purposes only and is not legal advice.  Please see the disclaimer.

Crowd funding generally relates to the use of the internet to solicit funds for a start-up company from many small investors.  Prior to the JOBS Act, general solicitations of this nature were prohibited by Federal and State securities laws.  Electronic platforms for crowd funding technology include Twitter and Kickstarter.

Under the JOBS Act, for start-ups raising $1.0 million or less, it is permissible to solicit investments via “internet portals”, subject to a yearly aggregate limit.  However, the internet “funding portals” must be registered with the Securities & Exchange Commission (“SEC”).  Also, the Act preempts State securities laws, so companies can raise funds nationwide.  The yearly aggregate limit on the amount each person may invest in offerings of this type is tiered by the person’s net worth from two (2%) percent of people earning (or worth) up to $40,000.00 up to a cap of $10,000.00 for people earning (or worth) $100,000.00 or more.  Further, these small investments do not count towards the number of shareholders cap at which companies are required to provide financials to the SEC like a public company.  Furthermore, the former 500 shareholder cap is raised by the JOBS Act to 2,000 accredited investors or 500 unaccredited investors.

Should start-up companies junk the securities laws and raise their funds through crowd funding?  Not necessarily.  Even in crowd funding, money comes with strings attached.  Companies should consider:

• Audited financial statements must be provided to investors.  An audit from a reputable accounting firm can cost $20,000.00 to hundreds of thousands of dollars.
• Minority stockholders have rights under State law, including voting rights, the right to inspect the company’s books and records, the right to bring a derivative claim on behalf of the company and minority shareholder provisions designed to protect from oppression by the controlling shareholders.  Adding more shareholders increases the likelihood of a dispute and litigation.
• Shareholders are entitled to participate in annual meetings, to require written notices and must consent to certain fundamental business decisions regarding operations, structure and sale of the company.  As such, having hundreds of shareholders can be an administrative nightmare and time consuming.
• Start-up companies commonly require shareholders to execute a Shareholders’ Agreement to prohibit the transfer of shares in certain circumstances (and to require the shareholder to sell its shares in the event a favorable purchase offer for the company is received).  Each investor must review, approve and sign the document, which is often negotiated, adding to the administrative burden.
• While start-up companies are often launched by money from the 3 “F’s” (Friends, Family, Fools and now a fourth, crowd-Funding), start-ups typically require larger investments from more sophisticated firms, such as venture capital firms, in order to grow and develop a mature business.  It is unclear whether VC firms would invest in a crowd-funded start-up with hundreds or thousands of unsophisticated investors, particularly if there are other attractive companies under consideration that do not impose the foregoing burdens.

For assistance with business strategy and securities laws, contact one of our corporate attorneys, Charles S. Baldwin, IV, Thomas G. Varnum or Clark L. LeBlanc.

This article is provided for informational purposes only and is not legal advice.  Please see the disclaimer.

Lawsuits filed under the False Claims Act, also referred to as Whistleblower or Qui Tam actions, are matters in which an individual or business knowingly presents (or causes another to present) a false or fraudulent claim for payment; knowingly makes, uses, or causes to be made or used, a false statement material to a false or fraudulent claim; conspires with others to commit a violation of the False Claims Act, or knowingly makes, uses, or causes to be made or used, a false record or statement to conceal, avoid, or decrease an obligation to pay money or transmit property to the Federal Government.  Many states, including North Carolina, and some municipalities have their own separate False Claims Acts relating to the same or similar fraudulent activity with respect to that state or municipality.  Essentially, liability under the False Claims Act occurs when the Government pays money to an individual or business as a result of false statements or a fraudulent course of conduct.

Typically, False Claims Act cases are filed on behalf of the Government by a company insider or someone else with inside knowledge of the fraudulent behavior, referred to as the “Relator” under the False Claims Act (i.e., the person who “relates” or informs the government of the fraudulent practice); however the Government can initiate a False Claims Act case on its own.  In cases involving a Relator, once the Relator brings the fraud to the Government’s attention by filing the lawsuit under seal and serving the Government with a disclosure statement outlining the fraud and evidence thereof, the Government investigates the matter through various channels before making a decision to intervene (i.e. take up the case as lead counsel) or not to intervene.  If the Government does not intervene, the Relator must decide whether or not to proceed without Government assistance.

As a reward for bringing the fraudulent activity to the Government’s attention, the Relator is given a share of the recovery.  This share can be significant in large health care, defective products, and other False Claims Act Cases (i.e. between 15%-25% if the Government intervenes and 25%-30% if the Government does not intervene).  However, The False Claims Act is a strict first to file statute and requires original information, meaning information not publically available.  If a Relator files a False Claims Act case based on publically available information or is files after another Relator has already filed a False Claims Act case, that Relator will recover nothing.  Additionally, regarding the Relator, it should be noted that new amendments have added protection of Relators against retaliatory action by their employer.

Presently, the number of False Claims Act cases is increasing and the Government is obtaining record recoveries, some in the multi-million dollar range.  Given the complexity of litigating these matters, it is important to consult legal counsel early in the process in the event you are a possible Relator or Defendant.

The Government has broad powers to investigate potential fraud, including Inspector General Subpoenas.  The subpoena or other requests often will not identify the claim of which the Defendant is being investigated and will not identify the Relator.  If you are a company or other potential Defendant, it is important that you engage counsel early to respond properly and mitigate the potential damages.  Civil and Criminal penalties can apply, including a fine of up to $11,500.00 per false claim and treble damages.  It is also important for your counsel to engage early on, if possible, with the Government to gain insight into the matter and, in the best case, dissuade the Government’s pursuit of a False Claims Action.  Although the Government, in the past, has often taken years to investigate a matter, Federal Courts, in managing their dockets, are more frequently requiring a sooner decision by the Government on whether to pursue a case.  If the Government declines to pursue a case, the file is unsealed and the Relator can pursue it on its own, if it so chooses.  However, typically, the odds of a successful recovery are less where the Government declines to intervene.

If you believe you are aware of fraud against the Government or if you are an individual or business that has received an investigative request from the Government or are otherwise aware of possible False Claims Act claims against you, please call our office at (910) 763-3404 to make an appointment with attorneys Charles Baldwin, Jason Kesler, or Ed West for a confidential consultation.

This article is provided for informational purposes only and is not legal advice.  Please see the disclaimer.

To read Combatting Human Trafficking Abroad with Civil Transactional and Litigation Remedies, Will the International Law Bar “Step Up?” (N.C. Bar Assoc, Int’l Section Newsletter, (Vol. 21, No. 1 Jan. 2012)), click here.

Ask-A-Lawyer day is an event organized by the Young Lawyers Division of the North Carolina Bar Association.  During the event, young lawyers devote their time to provide pro-bono legal advice to members of the public.  Our attorneys have participated in past years and thoroughly enjoyed volunteering again this year!

1. Death – You should update the relevant documents any time an individual named in your estate planning documents (beneficiary, Executor, Trustee, Attorney in Fact, etc.) passes away.
2. Marriage – Many clients I encounter believe without a will, their assets will pass to their surviving spouse upon their death.  When I inform them about North Carolina’s intestacy laws and the fact the surviving spouse could only receive one-half or one-third of the deceased spouse’s estate, the surprise of my clients is palpable.  Also, with marriage rates decreasing around the country as a result of couples choosing to remain unmarried, clients who are a partner in an unmarried couple must create a will for the other partner to receive anything from their estate.
3. Births – Typically, the only instrument parents can use to express their wishes regarding the selection of a guardian for their minor children is a will.  Thus, once children are born, parents should revise their wills to appoint a guardian and to provide for the distribution of assets to any minor children through the use of a trust.
4. Divorce – Some states statutes provide a divorce automatically revokes any provisions in a will concerning a former spouse.  However, it is prudent to revise all estate planning documents including Power of Attorney documents to properly insure your former spouse has no authority to act on your behalf.  Unless the divorce settlement or order provides otherwise, you might consider changing any beneficiary designations in favor of your former spouse on assets including life insurance, pensions, retirement plans, IRAs, etc.
5. Assets – Revisions to estate planning documents may be necessary if the value of your estate increases or decreases significantly.
6. Moving to another state – Generally, estate planning documents prepared in another state are valid in North Carolina.  However, the North Carolina statutes governing the execution requirements for wills are quite specific and may not be the same the state of preparation.  If a will prepared out of state does not meet the North Carolina requirements, it may be valid in North Carolina, but the witnesses and notary may need to be located following your death to provide affidavits to the Clerk.  This additional process during the estate administration can be lengthy and add significant cost to the estate administration.

If you are interested in a review of your existing estate planning documents or the creation of new estate planning documents, please feel free to contact our office to schedule an appointment with Stephanie Adams.

This article is provided for informational purposes only and is not legal advice.  Please see the disclaimer.

The production will run from Feb. 2 – Feb. 5, 2012, at Thalian Hall in downtown Wilmington.  Tickets are on sale now.

1. Integrity;
2. Discipline;
3. Social skills/person-to-person development;
4. Focus/hard work;
5. Strong supportive cast; and
6. Positive attitude/creativity.

The sum of all those demonstrates that successful people understand motivation, drive, vision, creativity, and the necessity of self-awareness and the awareness of others.  Of course, woven through the fabric of those six qualities are intelligence, talent, and most important, wisdom.

Following is an examination of the six qualities of leadership for their meanings and applications:

1. INTEGRITY.  Integrity means honesty and reliability.  Does one do what one says, when one says he/she will do it?  Does one’s word mean anything?  Has honor abandoned one?  In other words, is one only required to do one’s best or must one do whatever is required to maintain his/her integrity?  We must all remember the “do right” rule.  Namely, adhere to the right; avoid the wrong; and if there is a question in one’s mind about it, consult the Bible.
2. DISCIPLINE.  Know what’s required; dedicate one’s self to perform; be early; start and, then, finish; be quick, but don’t hurry.
3. SOCIAL SKILLS.  Develop the capacity to be a good listener.  Look your audience in their eyes without intimidation; observe and understand the body language of the audience; respect those who deserve respect; understand and practice good manners; keep calm; remain in control of one’s emotions.  Essentially, social skills enable one to be engaged.  A person is engaged who interrupts a conversation on point, asks penetrating questions, seeks elaboration and explanation, and look each member of the audience in his/her eyes.  On the other hand, a non-engaged person asks simple questions, never interrupts a speaker, turns partially away from the audience, makes no requests of the audience to clarify a point or question, abruptly changes the topic of the conversation, and forever squirms.
4. FOCUS/HARD WORK.  Determine the dispositive issue(s); understand the necessary, operative facts creating the issue(s); don’t chase rabbits; continue to analyze and consider various applications of the facts throughout the effort.
5. STRONG SUPPORTIVE CAST. Appreciate your associates; pummel and praise each as his/her performance merits; recognize your associates by pay/recognition for performance; inform associates of situations and goals, and where each fits in reaching such goal(s); instruct and advise accurately; treat each honorably; remember, each has a life.
6. POSITIVE ATTITUDE.  Be a can-do person; find excitement in performance; remember, every task is not joyous; be helpful; act interested in what confronts you; smile; find the good in each day.

Mr. Rountree was honored at a ceremony presided over by the Honorable W. Allen Cobb, Jr., Senior Resident Superior Court Judge at noon on Wednesday, November 9, 2011.

At this ceremony, Mr. Rountree was presented the Award by the Immediate Past President of the North Carolina State Bar, Anthony S. di Santi, Esquire.  Mr. di Santi’s presentation included the sharing of excerpts from the letter of nomination and the letters of support in the nomination of Mr. Rountree for this Award.  Harold Lee Pollock, Esquire, North Carolina State Bar Councilor for the Fifth Judicial District, and Dolores M. Williams, Esquire, President of the New Hanover County Bar also participated in the Award ceremony.

Congratulations, Mr. Rountree!