Our series of posts presenting real-life situations about the consequences of dying without a will. Preparing your will is not expensive and is a great way to protect your family. Please take the time to have your will prepared. Situation 1: Married With Children From Prior Relationship John and Cindy are married, and John owns the house where they live in his sole name. He owned it before they were married and Cindy moved in. He has two adult children from a prior marriage and a younger child with Cindy. John certainly wanted Cindy to remain in the home in the event of his death and to continue to reside there with their young daughter. Unfortunately, John passed away without a will. The state’s will for him, called the Law of Intestate Succession, says that Cindy is entitled to only 50% of his estate and his children divide the remainder equally. The house was John’s most valuable asset, and there were not enough other assets to satisfy the right of John’s children to receive 50% of his estate. Cindy now has to sell the house and give some of the proceeds to John’s children. She may not have enough left over to purchase a new home. If you are married and have children either with your current spouse or former partner, under Pennsylvania law, your surviving spouse is not entitled to all of your assets. That will be quite a shock to your surviving spouse. It can create a financial crisis to add to the emotional crisis of your death. This situation is something that can be easily avoided by preparing your will. DON'T WAIT. Get the process started today.

In part one, Remarkable Truth About Personal Guarantees, we explained what a personal guarantee is and the risks that they present to the business owner. They are the business owner’s kryptonite. Now we’ll give you proven ways to limit or even avoid personal guarantees. Situations Where a Personal Guarantee is Virtually Guaranteed There are some contracts where you are very, very unlikely to avoid a personal guarantee as a small business owner. Most commercial loans will require a personal guarantee and its non-negotiable, especially with larger lenders. Unless you are a major national tenant, commercial leases typically require a personal guarantee. Seeking to sign a franchise agreement? You’ll be signing a personal guarantee almost without a doubt. You can certainly ask to limit or not include a personal guarantee in these situations. We’re here to tell you that you should not get your hopes up. We’ve accomplished this for clients on occasion but not very often. Knowing When to Just Say “No” We suggest that you avoid signing a personal guarantee for current or past debts. You may be tempted to do this in order to avoid the creditor pursuing collection. This is usually a bad idea. There’s a reason why you’ve not paid the debt. Its unlikely that circumstances are going to change so dramatically so as to enable your business to come current on the debt. You get nothing in return for giving this type of guarantee. There is really no good reason to put your personal assets at risk in this type of a situation. If you’re signing as a the owner of a minority shareholder in a business, you should really think twice before you sign. These are some of the worst guarantees to give. You have no control over the business decisions being made, including how the money is being spent and what bills are being paid. Even though your control is limited, your personal liability is not limited as between you and the obligee. The bank or the vendor can collect the entire amount due from you or any of the guarantors. The obligee is not required to seek payment from the business or the majority owners before seeking payment from you. Your co-borrowers are not obligated to reimburse you for amounts that you pay on the guarantee (unless you have a specific agreement to that effect). They probably cannot pay you anyway because if they could pay you, they would have paid the underlying debt in the first place. Before signing a personal guarantee as a minority shareholder, we cannot understate how important it is for you to give a lot of thought to signing. You might suggest that your company purchase personal guarantee insurance for you. Seek professional advice from an attorney for options to protect yourself. How to Limit a Personal Guarantee Although it can be difficult to entirely eliminate the need for a personal guarantee, you may be able to limit its scope by taking the following steps: Refuse to sign or simply cross out the guarantee language. This sounds ridiculously simplistic but frankly, sometimes it works. This is especially true for vendor and supplier credit applications and “small print” contracts that are presented to you. The other side is not always passing these past their legal counsel and may either not notice or even care that you marked up their form. Their review might only go so far as looking to see that you signed the form somewhere. Make sure you retain a photocopy of what you signed and returned. It would not be the first time a vendor “corrected” a contract after the fact without telling you and you see it the first time they try to collect on an invoice. Define when the personal guarantee would go into effect. This could be based on the number of loan payments missed, the amount of working capital of the business, or the net worth of the business falling below a specified amount. Also, consider requesting business days vs. actual days to give yourself more time for reporting and the ability to respond to changing circumstances. Decrease personal guarantee with improved business performance or passage of time. You can request the personal guarantee be reduced when business grows and the company becomes more stable. You can also ask that the amount guaranteed decrease as you make timely repayments. You can ask that the guarantee “sunset” (become void) after the passage of a certain amount of time during which you have made time payments. Limit a guarantee. Banks will always want an unconditional or unlimited guarantee. The business owner should start by requesting that the amount of the personal guarantee be limited either by the actual dollar amount or by a percent of the outstanding loan. If there are multiple owners, you can also seek to limit the amount of exposure by the percent ownership for each partner. Revoke old guarantees. You can revoke your guarantee for future purchases or orders with vendors to whom you previously gave a guarantee. You should write a letter to the obligee stating such. If your contract with the vendor or contracting party contains specific notice requirements, you should carefully follow those. Its best to send it via some type of hard-copy mail with a proof of mailing. Again, retain a fully executed copy of what you sent to the vendor. Suggest terms of relief. You can ask to be relieved of the personal guarantee after a certain percent of the loan has been repaid or your share in business has been sold. Modify the reporting requirements. Lenders typically require guarantors to submit personal financial information at least annually. This is one of the ways for banks to locate and request personal assets. You can provide personal financial statements with the minimum acceptable disclosure. Avoid “joint and several” language if possible. Ask to limit who will guarantee the obligation. If there are multiple partners, try to avoid a joint and several personal guarantee. Push for an indemnification guarantee. Don’t cover more than 100 percent. Suggest that each partner carry a percentage of the guarantee rather than each partner carrying 100 percent – state laws may vary on the ability to do this. Try to eliminate certain assets. Request that certain assets, such as your personal residence or stock in the business, be outside the reach of the guarantee. You can suggest that your personal obligation be capped at a certain percentage of your net personal wealth. You can also offer alternate security for the debt. For example, if you have more than one business entity, you can suggest that your other business, rather than you, be the guarantor. Higher interest rate. Evaluate the option of paying a higher interest rate in exchange for no personal guarantee or limited guarantee. Do not include spouse as a guarantor. It is strongly suggested not to agree to a requirement of having the spouse as a co-signer on the personal guarantee. This provides both spouses with some protection, because personal assets under the spouse’s name will not be included, should the personal guarantee be called. Personal guarantee insurance. Personal guarantee insurance can protect your personal assets. With this coverage, you can limit personal risk to a more acceptable level. Get Legal Advice Before Signing a Personal Guarantee While many lenders or other vendors require a personal guarantee when making some business loans and other contracts, it’s usually possible to negotiate at least some of the terms. Our business attorneys can help you understand the provisions of a personal guarantee and provide ideas for negotiating one that fits your needs.

August is National Black Business Month! This month is a time to acknowledge and appreciate Black-owned businesses and all that they represent in the pursuit of diversity and equality. Below we have provided a list of Black-owned businesses across Pennsylvania nominated by our team members and clients. Please consider supporting one or more of these businesses online or in your area! We encourage you to support Black-owned businesses in your community not only during August, but always! Dibbs BBQ Family-owned barbeque restaurant in the Philadelphia area. Leave Dibbs BBQ a review Mt. Airy Deli & Mini Market “Home of the best Philly Cheesesteak in Mt. Airy.” Leave Mt. Airy Deli a review T’s Wicked Wonders Artisan craft and retail shop in the Pittsburgh area. Leave Ts Wicked Wonders a review Sonia’s Handcrafted Art One-of-a-kind handcrafted shadowboxes Leave Sonia’s Art a review Trustworthy Piercing Gallery Body piercings, teeth whitening, and teeth gem services in Pittsburgh, PA. Leave Trustworthy Piercing Gallery a review In the Pocket Pro Shop Bowling supply shop in the Philadelphia area. Leave In the Pocket Pro Shop a review Herring Seminars and Consulting Offering personalized diversity, equity, and inclusion (DEI) solutions to organizations so that they may build diverse and inclusive workspaces. A Potter’s Wheel Counseling Services Licensed professional counselor specializing in marital, anxiety, and depression Leave a Potter’s Wheel a review Sim’s Non-Medical Homecare Agency Licensed and insured agency providing in-home care services to the elderly, disabled, and any individuals who need special home care support in the Philadelphia area. Leave Sim’s a review New Life Staffing Providing professional services to job seekers and employers in the Philadelphia area. Leave New Life Staffing a review Fiffik Law Group, PC assists business owners at every stage of their business journey. Whether you have questions on business formation or you're planning for succession, our group of business attorneys has the experience to help you.

WGSF Newswire:  Limiting Personal Liability for Business Debts:  Choosing the Right Entity By Deirdre Burke Moser, Esquire The United States is the world leader in lawsuits, which cost the U.S. economy $264 billion per year.  Litigation costs small businesses in America over $100 billion per year.  According to the U.S. Chamber of Commerce report in 2013, one in three small business owners report that they have been sued or threatened with a lawsuit.  Creditors can attach homes, cars, savings, or other personal assets.  Business owners need to take appropriate steps to protect their personal assets from this epidemic of litigation.  One way to mitigate those risks is to create a business entity.  Whether for a sole proprietorship or a large-scale operation, the advantages to forming a corporate entity are numerous.  The three most popular entities are a corporation, a limited liability company (LLC), and a limited liability partnership (LLP). A corporation is a business entity owned by shareholders and managed by a board of directors.  This form of entity has been around much longer than LLCs and the rules governing the liability protection afforded to shareholders are longstanding.  One drawback is that corporations are a bit more difficult to run as most states place strict requirements on how corporate decisions have to be made and reported.  In addition, there are more “formalities” involved in managing a corporation from a legal standpoint and the additional paperwork can be daunting for small business owners. The LLC has no board of directors or shareholders.  Instead it is owned by “members”.  From an organizational standpoint, it offers the greatest flexibility.  It can be structured like a partnership to be managed by the partners.  It can also be set up more like a corporation and owned by the members but managed by a board of managers.  If you run a smaller company and are looking to reduce risk, a limited liability company may be a better fit.  There are fewer legal and paperwork requirements that have to be adhered to, making LLCs easier to run.  In addition, the LLC gives the owner the greatest number of choices of tax status. The Limited Liability Partnership is a business entity in which a group of people or companies or mixture of both come together to create a business.   There are different “classes” of partners with different interests, rights and powers.  Limited partners are not involved in the day to day running of the business, but want to reap the economic benefits of their investment.  The general partner controls the partnership and can also reap economic benefits.  There are no shareholders or directors.  An LLP is not the same as a traditional general partnership.  A general partnership has the disadvantage of all the partners being jointly and severally liable, regardless of their involvement in the partnership, so from a liability standpoint, creating a traditional partnership is not a good option.  The advantage of a Limited Liability Partnership, on the other hand, is it has aspects of both the traditional partnership and the traditional corporation.   Unlike a traditional partnership where all the partners are jointly and severally liable, in an LLP, the partners are not responsible for their partner’s negligence or misconduct. LLPs are not as popular because some jurisdictions require a general partner to have unlimited personal liability.  Small business owners instead opt to create an LLC where no member is facing personal liability. Finally, there are certain forms of business ownership that do not offer risk protection.   These include general partnerships, sole proprietorships and fictitious names.  If one is creating an entity with mitigating risks in mind, these entities can impact your personal assets if a legal action arises.  They may sound like good options on paper and less cumbersome to create, but in the long run, the small business owner should consider creating a corporation, an LLC or an LLP.  Choosing your business entity can make all the difference when one wants to protect his or her business from potential legal actions.  A corporation, an LLC and an LLP offers the small business owner peace of mind that when he goes to sleep at night, he did everything he could to protect his company, his investment and his family. Check out our business team at Fiffik Law Group .

Divorce: Sometimes Timing is Everything If you’re contemplating a divorce, there may be good financial reasons to delay the filing. Were you a stay-at-home parent for years while the kids were growing up? Or perhaps you have always worked, but never earned nearly the salary your spouse made. Even if you are nowhere near retirement age, you are well-served to understand the Social Security divorced spouse benefit rules and how the timing of your divorce could mean thousands of dollars in additional income each year when you are ready to retire. 10 is Often the Magic Number If yours is one of the above situations, there’s a good chance that the Social Security benefit you are entitled to based upon your own earnings record is less than half of your spouse’s benefit. Even if you’re divorced, you can still claim on your ex-spouse’s Social Security record. The key to being able to claim a Social Security benefit based upon the record of your ex-spouse sounds straightforward: Your marriage must have lasted at least 10 years. You can file for spousal Social Security benefits independent of when your ex-spouse files. The maximum divorced spouse benefit is 50% of what your “ex” would receive at full retirement age. If one spouse is in the military, a 10-year marriage may also entitle an “ex” to military benefits and a portion of his or her pension. The Widow/Widower Benefit Even if you’re divorced, you can claim on your ex-spouse’s Social Security record after they’ve passed away. Again, your marriage must have lasted at least 10 years. In addition, you must have claimed your benefits BEFORE you remarry (a reason to delay a second marriage). Plan Before You File Divorce If you’re thinking about divorce, our experienced and trustworthy divorce lawyers at Fiffik Law Group are here to help you decide when the time is right to file. Our lawyers have provided guidance to thousands of clients and we’re ready to bring that experience to bear in your case. Contact us today.

WGSF Newswire:  FOR SALE BY OWNER – WHY IT’S IMPORTANT FOR YOU TO CONTROL THE PROCESS You’ve made the choice to sell your own home – Great! The savings on realtor commissions can be huge. The growing number of online services that assist home sellers not affiliated with realtors has changed the way real estate is marketed in sold and will continue to do so (check out some links below). Some experts estimate that FSBO homes account for twenty-five percent of the homes sold each year. Does this mean that the process of selling a home has gotten any easier or less complicated? No. A recent report on mortgage closings from the Consumer Financial Protection Bureau describes real estate closings as confusion, stress, time pressure, cost and delays. Choosing the right attorney as the settlement agent is critical to avoiding these common complaints. As a homeowner selling your own home, you have some basic goals: get a deal on paper, close the deal quickly, avoid problems during the settlement process and no surprises at the closing table. Getting the right attorney involved can help you achieve these goals. Get a Deal On Paper: If your buyer is not using a realtor, someone will need to prepare a sales agreement. There are lots of form agreements available on line but beware; every agreement has a particular “slant” toward one party or another. Quality varies quite a bit. A poor quality agreement can give a buyer many “loopholes” that can be used to get out of the deal. If the buyer has a realtor who presents you with an agreement, you will want to make sure the agreement is reviewed and modified by your attorney to make it most likely that the deal with close. Close the Deal Quickly: Once the deal is signed, there are LOTS of things that need to happen before the closing. Title searches, title insurance, tax clearance letters, inspections and appraisals are but a few of those items. Have your own attorney handle these things if the buyer does not have anyone in mind. If YOUR attorney is controlling the process, it makes it far more likely that a closing happens as soon as possible. You may need to close on your home in order to purchase another. Maybe a delay costs you an extra mortgage payment or other costs associated with owning your home. Not controlling the process can cost you money. Avoid Problems: Title searches, inspections and other items that happen during the time between the signing of the agreement and closing can cause major problems that can derail the deal. If you get an attorney involved before you sign a deal, that person can check to make sure that the title to your property is “clean” and will not pose any problems. You may think you have a “clear title” but title problems are fairly common. Get advice up front on potential issues, such as problems with the title, house, unpaid tax liens and old unsatisfied mortgages that could either derail the closing or give the buyer an opportunity to ask that you reduce the sales price. No Surprises at the Closing Table: Surprise fees and costs at the closing table are common complaints about real estate closings. Many consumers report that even though they encounter discrepancies that result in unease at the closing table, they often feel pressured to sign documents during the allotted time in order to avoid risking delays or even losing the deal. You should ask to see the settlement statement (HUD-1 Form) at least 24 hours prior to closing so that you can understand costs on the form, ask any questions that you have and get things clarified without feeling pressure at the closing table. Making the choice to sell your own home is making a choice to retain “control.” Using your own attorney to handle most aspects of the closing process is a great way to maintain control and ensure that the deal actually closes. Fiffik Law Group provides a full range of services to residential and commercial real estate buyers and sellers. Our real estate services include many experienced attorneys and staff. Reach them at (412) 391-1014. FSBO Links: http://www.forsalebyowner.com/ http://www.zillow.com/homes/fsbo/

The U.S. Small Business Administration will re-open the Paycheck Protection Program (PPP) loan portal on Tuesday, January 19, 2021 to all participating PPP lenders to submit First and Second Draw loan applications to SBA. The funding is limited and you should expect it to go fast. That means get started now. Here’s what you’ll need to submit along with your PPP Loan Application. If your business is any of the following: Corporation, Professional Corporation, General Partnership, Limited Liability Company or Non-Profit Corporation All business types should provide the following: Color copy of government issued ID (front and back) of person signing application Organizational documents e.g. articles of incorporation and bylaws (corporations), certificate of organization and operating agreement (LLCs), partnership agreement. All should be fully executed (signed) by business owners. 2019 or 2020 IRS Form W-3 2019 or 2020 IRS Form 940 If you have employees making over $100,000, W-2s for employees making over $100,000. If your business is any of the following: Sole Proprietorship, Independent Contractor, Self-employed or single member LLC Color copy of government issued ID (front and back) of person signing application Organizational documents (if applicable) e.g. articles of incorporation and bylaws (corporations), certificate of organization and operating agreement (LLCs), partnership agreement. All should be fully executed (signed) by business owners. If you have employees: 2019 1040 Schedule C 2019 or 2020 IRS Form W-3 2019 or 2020 IRS Form 940 If you do not have employees: 2019 1040 Schedule C Substantiation of self-employment 1099- MISC for Independent Contractors 2020 invoice, bank statement or book or record to establish you were operating effective 2/15/2020 #smallbusinesstips #PPPLoan #ppploan2 #smallbusinessattorney #ppploanrules #ppploannews #ppp2 #smallbusinessadvice #ppp2020 #smallbusiness

Reduced or Waived Filing Fees for Bankruptcy You are eligible for bankruptcy case filing fee waiver if you are at or below 150% of poverty level. If your income puts you above 150% of the federal poverty guidelines, the fee is $335 for a Chapter 7—which may be paid in installments. 2020 Federal Poverty Guidelines Number of people in your household (include yourself)150% of Poverty Guidelines Yearly Income150% of Poverty Guidelines Monthly Income150% of Poverty Guidelines Weekly Income 1 $19,140 - $1,595 - $368 2 $25,860 - $2,155 - $497 3 $32,580 - $2,715 - $627 4 $39,300 - $3,275 - $756 5 $46,020 - $3,835 - $885 6 $52,740 - $4,395 - $1,014 7 $59,460 - $4,955 - $1,143 8 $66,180 - $5,155 - $1,273 More than 8: *Add $4,480 for each additional person. *Add $373 for each additional person. *Add $86 for each additional person. SOURCE: U.S. Department of Health & Human Services (at 100%), January 15, 2020, https://aspe.hhs.gov/poverty-guidelines Note: Your income includes any household income you can use. Do not include your spouse’s income if it is not available to you. *With the 2020 poverty guidelines that took effect as of January 15, 2020, you add $4,480 for each additional person in the household THEN calculate how much 150% of the federal poverty guidelines would be. So if you had a household of 9 people, you would add $4,480 to $44,120 (100% of the federal poverty guidelines for a household of 8), which equals $48,600. Then, 150% of $48,600 is $72,900/year; $6,075/month; and $1,401/week. We understand the stress and sleepless nights that arise from difficult financial times. Our bankruptcy attorneys are ready to get you some relief and back on the path to good credit. FLG Bankruptcy Attorney: Matthew Bole, Esquire #debtrelief #bankruptcyattorneypittsburgh #bankruptcy #bankruptcyphilly #bankrtupcyattorney #covidcreditrepair

iPhone owners in the U.S. could receive up to $500 compensation from Apple, following the settlement of the so-called “Batterygate” scandal. Apple was accused of using software updates to hamper the performance of certain iPhone models. Although Apple acknowledged the change in performance, it said that it was necessary to preserve older batteries in the handsets. The suit asserted that the motive for the updates was to cause customers to purchase newer and more expensive phones. Apple has never admitted wrongdoing, but is paying up to $500 million in a legal settlement to end the matter. That now means owners of selected iPhone handsets can qualify for a rebate, which could potentially be as much as $500, but is estimated to be $25. Those handsets are: iPhone 6, 6 Plus, 6s, 6s Plus or iPhone SE that ran iOS 10.2.1 or later before December 21, 2017 iPhone 7 or 7 Plus that ran iOS 11.2 or later before December 21, 2017 If you don’t quite remember what version of iOS (the software that runs your phone) your phone was running before a set date in December three years ago, so the online claim form is making it easy to check if you have a valid claim. You can either enter your phone’s serial number or your Apple ID and various details about the handset to check if you’re due compensation. Only when all the claims have been submitted will it be decided how much each claimant will receive. However, if the number of claimants is low, the windfall per customer could be as much as $500.

Subpoenas have been in the news quite frequently this year. They are not unique to the high-profiles cases in the news. Subpoenas are a frequent and necessary part of litigation in state and federal courts and administrative proceedings. If you have received a legal document called a subpoena from a process server, it is important that you know what this paper is and what it means to you. What is a Subpoena? A subpoena is an order issued by a government agency authorized to issue them. Subpoenas can be issued in state and federal court proceedings (both civil and criminal matters) and by administrative agencies that have adjudicative functions such as the Bureau of Workers Compensation, Equal Employment Opportunity Commission or U.S. Department of Labor. The subpoena usually requires you to appear at a certain place, date, and time to testify as a witness about a particular case. In a criminal case, you can be subpoenaed only to testify in court. In a civil case, you may be subpoenaed for out-of-court testimony (known as a deposition) as well. In either kind of case, a subpoena may order you to provide documents. Delivery of Subpoenas The rules for delivery of subpoenas vary depending on the issuing authority. Typically a subpoena must be delivered in person. In most cases this can be done by one of the parties in the case or by anyone who is at least 18 years old. If you receive a subpoena and are not one of the parties in the case, you should receive an attendance fee and transportation costs for appearing at the designated time and place. In a civil case, you should receive the attendance fee and transportation costs by the person who delivers the subpoena. In a criminal case, you will be paid after you travel to the designated place and testify as a witness. If the subpoena was sent by ordinary first-class mail that is not proper service. However, the recipient may sign an acknowledgement acknowledging that they were served and waive the requirement of personal service. Be careful who signs for things sent to you. If you get your subpoena in the mail and return the acknowledgement or another person signs on your behalf, the court can issue a warrant for your arrest for failing to appear even if personal service is not established. Material Witness Subpoena If you are a material witness to a criminal trial, by application of either the Commonwealth or the defense attorney, the court may set bail for any material witness to appear. Bail may be monetary, or the person may be held until they testify. A material witness is one who’s testimony is essential for either the Commonwealth or the defense. In other words, the case cannot proceed without that witness. The application must set forth adequate cause for the court to conclude that the material witness will fail to appear when required if not held in custody or released on bail. When You Receive a Subpoena Read the subpoena carefully. The subpoena will tell you the names of the parties; the date, time and place you will need to appear; the name of the lawyer who issued the subpoena; and the location and type of court in which the case is taking place. If the subpoena requires you to bring certain documents or other objects, they should be described in the subpoena or in a separate paper given to you along with the subpoena. It is not an option to simply ignore the subpoena, even if there was some defect in the appearance or delivery of the subpoena. You must either appear as ordered or file papers with the court objecting to or seeking to quash (i.e. rescind) the subpoena. You should contact an attorney immediately to discuss your options. Objecting or Quashing the Subpoena You may object to any subpoena. If you have a legitimate reason for not wanting to comply with the subpoena, you or any person with a sufficient interest in the matter can file a motion to quash a subpoena. A motion to quash asks the court to issue an order that you are not required to comply any or portions of the subpoena. The court will often hold a hearing to determine if there is a valid reason (technical or legal) to quash the subpoena. A motion to quash can be filed for many reasons: · the documents requested are confidential or protected from disclosure by the law (such as attorney-client communications, spousal communications); · there is some technical defect in the appearance or delivery of the subpoena; · the is some legal basis for challenging the validity of the subpoena; · you are too far away from the place where you are required to appear; · the subpoena is overly vague; or · the required appearance or documents requested would cause an undue burden or cost to you. The court may quash a subpoena to protect a party or witness or other person from unreasonable annoyance, embarrassment, oppression, burden or expense. You should file any objections with the court immediately, not on the date you are required to appear or provide the documents. A subpoena will also require that you remain at the place described until the testimony is closed, unless the judge excuses you. But you should contact the lawyer for the party who subpoenaed you to find out if you may be called the next day, or on a day in the future. This may help to prevent confusion or unnecessary time spent waiting. Minimum Compliance with Subpoena What is the bare minimum you can do without getting into trouble? Minimum compliance with a subpoena means that you appear at the time and place directed. You must also bring whatever is requested specifically on the subpoena. When it comes to requested records, you must only comply with the language of the subpoena, not the intent. Minimum compliance means that you only need to bring the exact records requested. Even if you know there are other records out there, you need only produce those explicitly listed on the subpoena. Failure to Comply with Subpoena If you do not object to the subpoena or appear as the subpoena orders, a judge may find you in contempt of court. Contempt of court may result in a jail term in criminal proceedings. The court may also order you to pay fees to the parties who may have been damaged by your failure to appear. The court may also issue a warrant for your arrest. The sheriff may take you into custody and bring you to the place where your testimony is required. If it is impossible or extremely difficult for you to appear as required by the subpoena, call the lawyer for the party who issued the subpoena. Usually, the lawyer’s name, address and phone number will appear on the subpoena. The lawyer might be able to postpone your testimony so you could testify at another time. But you should keep in mind that the lawyer may not be able to change the date and time of your appearance if a court date is already set and cannot be moved. If it is impossible for you to appear, or if it would be seriously harmful to your health or business, you should seek the advice of your own lawyer. If the appearance is for a deposition or to produce records, the issuing attorney will usually try to accommodate your schedule or help you better understand what documents they are seeking from you. Receiving a subpoena in any type of case is a serious matter. You must get an attorney even if you have nothing to hide. Even if you are a victim of a crime, you should consult with an attorney. Defying the court can land you in prison or result in paying very hefty expenses for failing to comply. Don’t try to handle it yourself. Contact the experienced litigation attorneys at Fiffik Law Group for help.

By Michael E. Fiffik, Esquire On September 7, 2014, Act 117 of 2014 became effective. Act 117 amends the Pennsylvania Mechanics’ Lien Law (“MLL”), 49 P.S. 1101, et seq., to provide that a construction loan secured by an open-end mortgage will have lien priority ahead of any filed mechanics’ lien claims, even when the visible commencement of work was prior to the recordation of the open-end mortgage where at least 60 percent of the proceeds are “intended to pay or used to pay” all or part of the “costs of construction.” The amendment to the MLL overcomes the problems created by the decision by the PA Superior Court in Commerce Bank/Harrisburg, N.A. v. Kessler. That ruling mandated that for an Open-End Construction mortgage to have statutory priority over mechanics liens, 100% of the proceeds of the loan had to be used for hard costs of construction. And if any portion of the loan proceeds were used for something other than the costs of construction, such as closing costs, satisfaction of an existing mortgage or payment of other judgments and liens, the entire mortgage lost its statutory protection against mechanics liens. Now, in addition to clarifying that loan proceeds may be used for purposes other than construction costs, an expansive definition of “costs of construction” has been added to the MLL, which encompasses all costs, expenses and reimbursements pertaining to erection, construction, alteration, repair, mandated off-site improvements, government impact fees and other construction-related costs, including, but not limited to: costs, expenses and reimbursements in the nature of taxes; insurance; bonding; inspections; surveys; testing; permits; legal, architect, engineering, consulting, accounting, management and utility fees; tenant improvements; leasing commissions; payment of prior filed or recorded liens or mortgages, including mechanics’ liens; municipal claims; mortgage origination fees and commissions; finance costs; closing fees; recording fees; title insurance or escrow fees; or any similar or comparable costs, expenses or reimbursements related to an improvement, made or intended to be made, to the property. Act 117 will apply to mechanics’ liens perfected on or after the Act’s effective date of September 7, 2014, including liens relating to construction of an improvement for which the visible commencement of work occurred prior to the effective date. For Further Information If you have any questions about this change in the MLL, please contact Michael E. Fiffik, or the attorney in the firm with whom you are regularly in contact.

Deadline to apply is June 30. June 30th is the deadline to apply for a Paycheck Protection Program Loan. Many lenders have stopped accepting applications. Here is a list of Fintech lenders that may still be accepting applications (but act fast!): Fundbox Biz2Credit Funding Circle Paypal Quickbooks Capital Confirm that they are still accepting applications. You can also check out the SBA’s lender match. As always, our attorneys are here to help and answer any questions.