THE

LAW

G o o d N e i g h b o r s . G r e a t L a w y e r s . Winter 2013, Vol. XII No. 1

In Thi s I s sue :

The Quarterly Newsletter of:

Legal Dilemma

Gym membershipcontract obligationsPage 2

Inside Story

Mistakes to avoid in divorcePage 3

Attorney Profile

Cheryl Gill enjoyssolving problemsPage 6

A New Year is not just a good time to make personal resolutions like exercising more frequently and eating better. It’s also an opportunity to assess your business’ health, beginning with how it’s organized.

“If you have a sole proprietorship and your business is growing, consider if that type of business entity is still a good fit,” said attorney Greg Bonney. “You may need the protection afforded by a different entity, such as a limited liability company (LLC) or a corporation, for example.”

With an LLC or corporation, there are other responsibilities like meetings of the owners and annual reports with the state. If you have a corporation or LLC, you should also look into whether you need to register to do business in other states. Whether you must register to do business in another state depends on the requirements of each state.

“Generally, simply owning property in another state does not mean you must register,” Bonney added. “But if you have an agent with an office in another state, you would need to register as a foreign entity.” You generally must also register in another state if you want to use the courts of that state to collect amounts due or enforce a contract in that state.

Greg Bonney

Your New Year’s business checklist also should consider the review of:

Your one-year and five-year business plans. Your budget, along with an analysis of accounts receivable and cash flow. Your line of credit, accounts and loans at banks, including whether changes are needed with authorized signers and personal guarantees. Real estate and equipment leases, contracts or other agreements with vendors and suppliers and your own contracts for purchases and sales, including those used for bids and proposals. Whether important information is up-to-date, including permits, tax identification numbers, insurance certificates and other required information from subcontractors.

“A new year is also a great time to take a look at your employee manual and at job descriptions, along with policies regarding company equipment and computer use,” Bonney said. “Also, review insurance coverage. Some insurance companies will perform a safety audit which could reduce premium costs if you take suggested steps to reduce risks. Reducing your risks means a healthier company.”

“A new year is also a great time to take a look at your employee manual and at job descriptions, along with policies regarding company equipment and computer use.”

A New Year’s resolution to keep–Managing your business risks

Good Ne i ghbo r s . G r e a t L awye r s .

L E G A L D I L E M M A

The LAW EXCHANGE is published quarterly to inform our clients and colleagues of legal trends and decisions. This information should be viewed as a general summary. Please contact your Johns, Flaherty & Collins attorney for specific legal advice. If you know of someone who would like to receive this newsletter, send his/her name and address to the attention of the EDITOR, THE LAW EXCHANGE at the address below.

La Crosse600 Exchange Building205 Fifth Avenue SouthP.O. Box 1626La Crosse, WI 54602-1626Phone: 608-784-5678Fax: 608-784-0557

Holmen403 Main Street, Suite BHolmen, WI 54636Phone: 608-526-5956

Prairie du Chien Phone: 608-326-2475

E-mail: general@johnsflaherty.comWeb: www.johnsflaherty.com

You may also subscribe online at www.johnsflaherty.com/subscribe-law-exchange-newsletter.

I want to join a gym to help me get in shape for the new year, but I’ve heard so many horror stories about people who join and then can’t quit. What should I look for so I don’t have a similar problem?

Question:

Answer:Congratulations on wanting to join a gym to get in shape!

Attorney Jennifer Schank agrees that gym memberships present some risk because they are a contract, and once you sign on the line, you have agreed to all the terms and provisions in the contract.

“Prospective gym members should take the time to read the contract before agreeing to it,” she said, “and pay special attention to the conditions for termination.”

Some contracts require providing your credit card or bank account for automatic payments for the length of the contract, which often is for two years. Shorter-term contracts may be available but are more expensive than a long-term agreement.

“You have to sort out which is better for you,” she said.

Some gyms allow for month-to-month agreements but can continue forever unless you give 30 days’ notice to end the contract.

Something else to consider in the contract is what would happen if you become so ill that you cannot exercise any longer or relocate to another city.

Schank suggested a trial membership might be helpful. “Trials differ, depending on the gym,” she said. “You will want to ask a gym representative questions like ‘Will you have access to the whole facility or a limited area? Can you join group classes during the trial?’”

Also consider the length of the trial membership and whether you have to formally opt out to prevent the contract from going into effect. “Make sure you are aware of cancellation fees,” Schank added.

Once you join the gym, she said it is important to be aware of when and how your commitment ends. You may need to make a written request to keep it from automatically renewing.

“You don’t need to be hypersensitive about gym contracts,” Schank said. “Just be aware of your obligations when you sign.”

Jennifer Schank

“You don’t need

to be hypersensitive

about gym

contracts. Just

be aware of your

obligations when

you sign.”

“One of the

biggest mistakes

that couples make

is not anticipating

that they could one

day break up.”

~ Peder Arneson

Classic mistakes to avoid in divorce

Prder Arneson

Sadly, happily-ever-after does not always happen, a reason many couples find themselves in court to dissolve what once appeared to be so promising.

One of the biggest mistakes that couples make “is not anticipating that they could one day break up,” said attorney Peder Arneson.

It is a routine question to ask clients if they have a prenuptial agreement. The response from one was pretty telling: “No. It’s unseemly, isn’t it?”

“It’s not romantic or reflective of an enduring, trustful relationship,” Arneson agreed. “But prenuptial agreements are like estate planning, important even if they are uncomfortable. They are especially helpful for second or later marriages.”

Without such a document, Wisconsin law assumes equal division of property with a few exceptions, such as for short marriages.

What other mistakes should you avoid? Rushing to hire an attorney without first trying to negotiate calmly with your spouse. Early agreement can smooth the process and avoid more time-consuming and expensive divorces.

Waiting too long to see an attorney. “I am morethan happy to spend a half hour on the phone talking, even giving some advice,” Arneson said. “I would rather do that than have them wait six months or a year. I consider this a community service.”

Do-it-yourself divorces. Forms are available to dothat, but Arneson said he has seen major problems arise. “It is easier to keep Humpty Dumpty up on the wall than to pick up the pieces after he has fallen.”

Moving out of the house without first reaching agreement regarding the children. “It’s harder to do that six months after you left,” Arneson said. “You could be considered to have abandoned your kids, which means a lengthy legal process to get regular visits again.”

Arneson recognizes that many people worry about legal costs. “Our objective is to protect our clients’ interests in a cost-effective way.”

More than 51.4 million Americans belonged to a health club in 2011. About 47 percent of members belonged to a commercial health club, and 40 percent belonged to a nonprofit club, such as a YMCA. The remaining 13 percent belonged to miscellaneous for-profit clubs, such as corporate fitness centers, aerobics studios, spas and country clubs. Most common reasons for lawsuits against them are slip-and-fall or wet-area accidents and injury to participants during exercises.

Source: International Health, Racquet & Sportsclub Association

Legal Statistic

Johns, Flaherty & Collins, SC

A husband was stunned to learn his wife had embezzled hundreds of thousands of dollars from her employer. While she served 18 months in federal prison, the Internal Revenue Service came after him expecting him to pay penalties on this unreported income.

“He had no clue even though he had signed off on their joint tax returns that his wife prepared,” said attorney Peder Arneson. “We contended he was an innocent spouse. She was the bookkeeper in the family.”

Eventually, the IRS agreed that the husband was not involved in the crime and thus was not responsible for additional taxes.

After he filed for divorce, his wife demanded he be responsible for half of her restitution for the

theft. The judge agreed with the husband that he was not responsible.

“That IRS ruling helped us prove he did not benefit from the theft,” Arneson said.

After he filed for divorce, his

wife demanded he be responsible

for half of her restitution.

Case study: responsibility for restitution

Johns, Flaherty & Collins opens new Holmen office

Johns, Flaherty & Collins now has an office in Holmen. Attorney Brian Weber, a Holmen resident, splits time between the firm’s La Crosse headquarters and the new Holmen office, located at 403 Main Street, Suite B. The office is also available for appointments with other Johns, Flaherty & Collins lawyers.

“We have a growing clientele in the Holmen community,” said Brian. “This will make our services more convenient for them as well as for clients in other northern communities.”

Brian’s Holmen services focus primarily on family and personal law, including divorce and custody issues, wills and estate planning and tax law, among others. He also concentrates on litigation, personal injury, insurance defense and worker’s compensation law.

The Holmen location is open Monday 8 a.m. to noon, Wednesday 2 p.m. to 7 p.m., Thursday 2 p.m. to 5 p.m. and other hours by appointment. To make an appointment or reach Brian in Holmen, call 608-526-5956.

Brian Weber

New Johns, Flaherty & Collins Holmen office focuses on:

Family and Personal Law,including divorce, wills, custody issues, estate planning and tax law

Litigation

Personal Injury

Insurance Defense

Good Ne i ghbo r s . G r e a t L awye r s .

B R I E F S

Cheryl Gill spoke at Viterbo University’s Nonprofit Leadership Development certificate program in October. She covered topics relating to liability of nonprofit organizations, their directors and officers.

Attorneys Peder Arneson, Greg Bonney, Ellen Frantz, Cheryl Gill and Jennifer Schank attended the Gay Friendly Professional

Network (GFPN) monthly meeting in October in La Crosse. Arneson is a board member of Options Clinic, which sponsored the meeting. Arneson also hosted the Options Clinic board retreat.

Peder Arneson and his wife Lil were the hosts of two visiting teachers from La Crosse’s sister city in Dubna, Russia, in October. The teachers accompanied the Arnesons to a fundraiser for the Viroqua community held at Rooted Spoon.

Greg Bonney gave a presentation about estate planning to a full house of parents and grandparents at The Parenting Place in La Crosse in September.

Cheryl Gill Peder Arneson

Attorneys Brent Smith, Ellen Frantz, Joe Veenstra and Cheryl Gill spoke at the annual employment seminar sponsored by Johns, Flaherty & Collins, SC, in the Lunda Center at Western Technical College. The seminar covered recent case law updates, employee manuals, employee screening and compensation discrimination.

Brent Smith

Stay Informed Whether you’re into Facebook, LinkedIn, Twitter or blogging, we’re there. Stay informed of the latest legal news that affects you and receive top tips for everything from business and estate planning to divorce and traffic law. So choose the vehicle that’s best for you and stay up-to-date between newsletters.

Joe Veenstra Ellen Frantz Jennifer Schank

Greg Bonney

JOHNS, FLAHERTY & COLLINS ATTORNEYS:

Daniel T. Flaherty RetiredRobert D. Johns, Jr. RetiredRobert P. Smyth

Maureen L. Kinney

Terence R. Collins

Brent P. Smith

Peder G. Arneson

Ellen M. Frantz

Gregory S. Bonney

Cheryl M. Gill

Brian G. Weber

Joseph G. Veenstra

Brandon J. Prinsen

Jennifer M. Schank

Gifford M. Collins

PARALEGALS:

Lisa L. Felt

Teresa Nielsen

Cheryl Gill

Why did Cheryl Gill become an attorney? Consider the case of a carpenter who was so severely injured on the job that he can never work again. In a lawsuit against the person who injured him, attorney Cheryl Gill found a way to ensure he had the financial resources he needed for the rest of his life.

“I became a lawyer to solve problems for people who look to the law for help when they can’t get it in any other way,” she said, adding, “The law can’t solve all problems, but it does feel good when the law can fix some of a client’s problems.”

True to that commitment, Gill today focuses her practice on civil litigation, appeals, personal injury, product liability, wrongful death, insurance, commercial disputes, employment issues, criminal defense and municipal law.

Gill, who joined the Johns, Flaherty & Collins practice in 2004, said she also appreciates the opportunities the firm provides to give back to the community. Consistent with the firm’s “Good Neighbors, Great Lawyers” philosophy, she serves on the boards of the Salvation Army of La Crosse and Legal Action of Wisconsin.

“Many people in this firm are involved in community activities,” she said. “I enjoy that opportunity.”

PRST STDU.S. Postage

PAIDLa Crosse, WIPermit #1626

Suite 600, Exchange Building205 Fifth Avenue SouthP.O. Box 1626La Crosse, WI 54602-1626

P R O F I L E

Cheryl Gill