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In evaluating a claim for injuries sustained in a car accident or otherwise, it is crucial that the effects of all injuries or even potential injuries are reported before submitting a claim to an insurer. Why? Because it can be difficult to raise claims for later injuries that may have been discoverable earlier on. To determine the scope of loss of enjoyment of life for an injured person, treating physicians interview patients and document the areas that the injury is expected to impact them as a result of their injuries. The report or notes must document the loss of enjoyment of life claim, and anyone filing for a claim must also specifically claim for loss of enjoyment or an insurer might undervalue the total claim. Additionally, a loss of enjoyment of life claim can only be considered if there is a whole person permanent impairment rating of greater than three percent (3%). Nonetheless, it is still important to have any potential injuries or impairments accounted for.

There are many different factors that insurers use when evaluating a claim for loss of enjoyment of life. Therefore, it is crucial to ensure that any claim for loss of enjoyment of life accounts for this type of injury as holistically as possible. For assistance filing a claim for loss of enjoyment of life, or any other personal injury related matters, contact the experienced personal injury attorneys at KI Legal Personal Injury by calling (212) 404-8605 or emailing michael@kilegal.com to set up a free consultation today.

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*PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME*

This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.

_____________________________________________________________________________________

KI Legal Personal Injury fights for victims of a wide array of personal injury claims, from Motor Vehicle Accidents to Scaffolding and Ladder Falls to Slip/Trip & Falls, amongst others. By leveraging its multidisciplinary foundation and, with the help of its experienced litigators, KI Legal Personal Injury can fight for the results and compensation that victims deserve without pushing for premature settlements due to financial reasons. This financial paradigm shift swings the pendulum in our favor when it comes to negotiating with insurance carriers, inherently leading to better results for clients. For the latest updates.

A traditional Chapter 11 bankruptcy reorganization case can be time-consuming and expensive for small and medium sized businesses. These shortcomings often leave smaller distressed businesses without viable restructuring options. To address this, Congress enacted the Small Business Reorganization Act (“SBRA”), which took effect February 19, 2020. The SBRA added the new subchapter V to Chapter 11 of the Bankruptcy Code. Subchapter V provides small businesses with aggregate liabilities of up to $7,500,000 (through June 21, 2024) with an opportunity to resolve outstanding liabilities in what is meant to be a streamlined and cost-effective Chapter 11 bankruptcy proceeding.

As with all new undertakings, the subchapter V process requires some tweaking to ensure that the SBRA’s objectives are met, such as offering a more cost-effective reorganization process. Nonetheless, subchapter V eliminates some of the administrative burdens imposes by the Bankruptcy Code on debtors and removes the absolute priority rule as well. The absolute priority rule often requires existing equity owners to either relinquish ownership of the business or buy back their interest in the company. For small businesses, the requirement that they invest additional funds to buy back their ownership interest in the company could be incredibly burdensome.

Subchapter V has many notable distinctions from a traditional Chapter 11. In a subchapter V case, a subchapter V trustee is appointed to aid in the smooth administration of the case. If the court finds that a debtor has acted dishonestly, fraudulently, or incompetently, the court may order the subchapter V trustee to step into the shoes of the debtor’s management and run the business for the duration of the proceeding. Additionally, an official creditors’ committee is not appointed in subchapter V cases unless by court order. This spares the debtor on the costs associated with a creditors’ committee, such as additional fees for compensation of the committee’s professionals. Also, the debtor is not required to file a disclosure statement with its plan of reorganization, and the debtor has the exclusive right to file a plan, which is not the case in a traditional 11.

In order to file a petition under subchapter V of Chapter 11, a debtor must satisfy certain eligibility requirements. For example, a debtor must be engaged in commercial or business activities other than owning single-asset real estate. The debtor may not have more than $3,024,725 in noncontingent, liquidated, secured, and unsecured debts. Note that this debt cap was increased in March 2020 to $7,500,000 as previously mentioned until June 21, 2024. Of this debt cap, at least 50% must have arisen from commercial or business activities, excluding debts owed to affiliates or insiders.

Small business debtors may choose between a small business case or a subchapter V case. Small business debtors should consult with experienced counsel to consider the advantages and disadvantages of a subchapter V proceeding. The basic advantages of a subchapter V include retention of ownership interest at no cost, assistance from a subchapter V trustee, the exclusive right to file a plan, and ability to pay administrative expenses over time, including fees for post-petition goods, services, and professional fees. Some disadvantages of a subchapter V case include the appointment of a subchapter V trustee, which adds expenses, and a shortened timeframe to file a plan.

Contact KI Legal’s bankruptcy and restructuring attorneys to explore whether a subchapter V bankruptcy is the best option for your business. Call (212) 404-8644 or email info@kilegal.com to schedule a free consultation today.

This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.

_____________________________________________________________________________________

KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum. KI Legal’s services generally fall under three broad-based practice group areas: Transactions, Litigation and General Counsel. Its extensive client base is primarily made up of real estate developers, managers, owners and operators, lending institutions, restaurant and hospitality groups, construction companies, investment funds, and asset management firms. KI Legal’s unwavering reputation for diligent and thoughtful representation has been established and sustained by its strong team of reputable attorneys and staff. For the latest updates, follow KI Legal on LinkedIn, Facebook, and Instagram. For more information, visit kilegal.com.

As the old saying goes, “be careful what you wish for because it just might come true.” WeWork, a pioneer of remote work, simply didn’t anticipate that “remote” work would one day go beyond “hot desks” to include no office at all. In conjunction with the pandemic, remote work created the perfect storm for the decline of WeWork. WeWork’s founder’s vision was bold – without question – but it missed something that would ultimately lead to its demise. This article is intended to educate and inform both landlords and tenants, and more importantly to warn and motivate them to WORK IT OUT, or else potentially deal with the awesome power that is Chapter 11 bankruptcy. Plain and simple. The realities of the commercial real estate market and the economy at large are too clear for either side to ignore or avoid dealing with. It is in the best interest of both landlords and tenants of all kinds to face the music and understand what everyone’s rights are if you don’t reach an out-of-court work out and find yourself in the debtor or creditor seat of a bankruptcy proceeding. So, let’s break it down with WeWork’s recent filing in the backdrop.

On Monday, November 7th, the collaborative workspace provider WeWork filed for Chapter 11 bankruptcy in New Jersey Federal Court. That filing may not come as a surprise to many. Since the beginning of 2023, WeWork’s stock price has fallen by over 95%, and overall demand for physical workspace has declined drastically since the Covid pandemic and subsequent rise of remote work. However, WeWork seemed untouchable just a few years prior. The startup’s business model of leasing and renovating offices for shared use by customers enjoyed initial success; in 2019, WeWork even attempted to go public at a valuation of $47 billion before eventually going public in 2021 at a valuation of $9 billion. WeWork had hundreds of leases in many different cities throughout several countries, including New York and the United States. So, what can landlords and tenants do to prevent situations like WeWork’s, where tenants are unable to pay rent and landlords are left with vacant property? The bankruptcy filing leaves many landlords and lenders unsure of the security of their leases and other executory contracts they may have with the once sought after tenant.

But first, what is a Chapter 11 Bankruptcy? What is an executory contract?

A case under Chapter 11 of the U.S. Bankruptcy Code is frequently referred to as a “reorganization bankruptcy.” This is because the debtor remains “in possession” and continues to operate its business. The filing proposes a reorganization of the business and allows affected creditors to vote on the plan. The first step in a Chapter 11 case is the filing of a petition with the bankruptcy court. The petition may be voluntary, as in WeWork’s case, where the petition is filed by the debtor, or involuntary, where the petition is filed by creditors. In filing the petition, the debtor must also file schedules of assets and liabilities, income, executory contracts and leases, and a statement of financial affairs.[1] Filing for bankruptcy is a drastic measure for a tenant to take, but it is also a measure that expensive or protracted leases can force tenants to resort to.

An executory contract has been interpreted by courts to refer to a contract where there may be unperformed obligations by both parties when a bankruptcy is filed. For example, supply contracts are executory because the supplier has an obligation to continue to supply the goods, while the purchaser has an obligation to pay for those goods. In their petition, WeWork claimed to be the “party to thousands of contracts,” that range from leases to vendor supply contracts.[2] 11 U.S.C. § 365 provides that the trustee may assume, assign, or reject an executory contract or expired lease. In deciding whether to grant a motion to do so, bankruptcy courts defer to the bankrupt’s business judgment, and typically will grant the motion absent bad faith. Non-debtors are left with limited options in this case. To exercise any rights to terminate a contract, they must obtain relief from the automatic stay granted by the bankruptcy filing. For more information on executory contracts and automatic stays, see our prior article here: Executory Contracts and Leases in Bankruptcy - KI Legal.

Who does Chapter 11 bankruptcy apply to?

One may be inclined to think that Chapter 11 bankruptcy applies exclusively to large, corporate companies like WeWork because these are the bankruptcies that often garner the most public attention. However, Chapter 11 also contains a subchapter that allows small businesses to file for bankruptcy.[3] Subchapter V went into effect in 2020 and has helped countless small businesses reorganize during the difficult times the COVID pandemic presented. For reference, in September 2023, small business filings under Subchapter V had approximately double the percentage of confirmed plans and half the percentage of dismissals, along with shorter time to confirmation when compared to non-subchapter V small business filings.[4] Not only this, but small businesses make up more than 99% of the businesses in the U.S. (over 30 million businesses).[5] Therefore, the powerful tool that is a Chapter 11 filing extends to small businesses through subchapter V.

But what is a “small business” for the purposes of a subchapter V filing? A “small business debtor” is defined under 11 U.S.C. § 101(51D) as “a person engaged in commercial or business activities . . . that has aggregate noncontingent liquidated secured and unsecured debts . . .” not exceeding $3,024,725 as of the date of filing under subchapter V, subject to some exceptions. As one might imagine, there are tens of millions of small businesses throughout the United States eligible to file for subchapter V bankruptcy so they can benefit from the protections it offers, as well as the expedited and cheaper processing.

So, how does tenant bankruptcy affect landlords?

In recent years, there has been an increase in commercial vacancy rates, including in New York. Commercial vacancy rates in New York office spaces have climbed from twelve percent (12%) in 2017 to over sixteen percent (16%) in 2022.[6] WeWork even tried to renegotiate “nearly all” of its office leases with their landlords in September 2023.[7] The possibility of a Chapter 11 or subchapter V bankruptcy by the tenant always remains a possibility, especially when the lease is not sustainable for the tenant. The long-term effects of the filing on WeWork’s landlords and lenders are still uncertain, as the company will look to continue operating as it works out creditor repayments through the chapter 11 filing.

One thing is clear: WeWork demonstrates the importance for landlords to take note of the power that Chapter 11 (and subchapter V) bankruptcy grants to tenants in the context of executory contracts.

In its initial filing, WeWork already announced that it is seeking approval to reject more than 60 of its commercial real-estate leases, most of which are in New York. The other 400-plus landlords who lease their space to WeWork may have already accepted lower rent in recent years and may now be left with vacant real estate if they do not renegotiate their lease terms. The ability to choose which leases to reject and which to assume grants WeWork leeway in restructuring their company because they can be quite selective with the executory contracts they assume or reject. Going forward, landlords must consider this reality when entering into executory contracts to limit vacancies in the future.

How does tenant bankruptcy affect tenants?

Tenants, on the other hand, can also learn from WeWork’s bankruptcy filing. For the same reason that landlords must exercise care when entering into executory contracts, tenants should understand how Chapter 11 and subchapter V filings serve to protect them in the event of bankruptcy. Specifically, Chapter 11 and subchapter V filings allow tenants to “reorganize” to hopefully survive the bankruptcy. By being able to choose to assume, reject, or assume and resign their executory contracts, tenants can choose the contracts that they believe will help them the most. In the case of WeWork, the company can evaluate which floors of which leases to assume and which to reject. Tenants also may consider out-of-court work outs, which provide other benefits compared to bankruptcy filings, such as expediency, lower costs, and minimizing public scrutiny. This type of resolution involves the debtor contracting with their creditors to resolve debt obligations. Therefore, there are different options available to debtors involved in executory contracts facing financial trouble, including Chapter 11 and subchapter V bankruptcy filings and out of court work outs.

Conclusion

Overall, WeWork demonstrates how a Chapter 11 bankruptcy can serve as a tool for tenants involved in executory contracts. In a market reeling from recent shifts toward remote work and away from the need for office space, landlords and lenders need to be aware of the effects that burdensome leases and executory contracts can have on them and their tenants. If those tenants do opt to file a petition for bankruptcy, they are granted the benefit of their choice to assume, reject, or assume and assign these leases. If you or your business are currently in distress, or you are currently considering a Chapter 11 or subchapter V bankruptcy, kindly contact KI Legal for help at (212) 404-8644 or by email at info@kilegal.com, and we can discuss your options.

This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.

_____________________________________________________________________________________

KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum. KI Legal’s services generally fall under three broad-based practice group areas: Transactions, Litigation and General Counsel. Its extensive client base is primarily made up of real estate developers, managers, owners and operators, lending institutions, restaurant and hospitality groups, construction companies, investment funds, and asset management firms. KI Legal’s unwavering reputation for diligent and thoughtful representation has been established and sustained by its strong team of reputable attorneys and staff. For the latest updates, follow KI Legal on LinkedIn, Facebook, and Instagram. For more information, visit kilegal.com.

There is no such thing as a free lunch. This holds especially true in the world of employment, where employees are often expected to demonstrate loyalty and commitment to their employers in exchange for a paycheck —apart from their daily job responsibilities. Some commentators have posited that this duty of loyalty hinders employees’ professional growth potential while others argue that it is necessary to protect information vital to a business’s success.

One area where this tension plays out is in an employee’s duties to their employer. Under New York common law, an employee's duty of loyalty to their employer is well-established and encompasses their duty not to compete with their employer’s business. “Competing” with one’s current employer can include starting or operating a business that provides the same or similar services as one’s current employer,[1] simultaneously working for a different company that is a direct competitor to one’s original employer,[2] or accepting outside employment that interferes with one’s duties to one’s original employer.[3]

The rationale behind this duty is that many employees have access to confidential information and trade secrets that are vital to their employer's success. If an employee were to use this information to benefit their own business, or that of a competitor, it could cause significant harm to their current employer.

However, the common law duty not to compete is not absolute. For example, it will not prevent an employee from seeking employment opportunities from competitors or from preparing to work for a competitor after the original employment relationship terminates, as long as this preparation does not include using an employer’s time, facilities, or confidential information.[4]

Despite these common law exceptions, many employers have employees sign noncompete agreements. A noncompete agreement may be one section of an employment contract or a standalone contract that an employee signs before or after the employment relationship begins. By signing a noncompete agreement, the employee promises that—for a certain period time after the employment relationship ends—they will not engage in business activities that are in direct competition with their former employer. It is also common for noncompete agreements to have geographical limitations—in other words, they bar former employees from working for competitors that are within a certain radius of their former employment.

New York courts have held that a noncompete agreement is enforceable to the extent that:

1. It is necessary to protect the employer’s legitimate interests;
2. It does not impose an undue hardship on the employee;
3. It does not harm the public; and
4. It is reasonable in time and geographic scope.

Examples of an employer’s legitimate interest may include protecting its trade secrets and confidential information as well as preventing employees from taking specialized skills they gained on the job to a competitor. On the other hand, New York courts have struck down these types of promises if the geographic scope is, for example, “the entire world” and the employer did not prove that such scope would be necessary to protect its legitimate interests.[5]

Critics of the duty not to compete argue that it is often used to stifle competition and prevent employees from advancing their careers. They argue that the clause is often included in employment contracts to prevent employees from leaving and taking their skills and knowledge to a competitor, rather than to protect trade secrets or confidential information. In recent years, there has even been a push to reform or eliminate the duty not to compete altogether. The Federal Trade Commission (FTC) has even proposed a rule that, if passed, would amount to an effective ban on the use of noncompete agreements.[6]

Ultimately, the duty not to compete remains a contentious issue in the world of employment. While it may be necessary to protect trade secrets and confidential information, it can also limit the ability of employees to pursue new opportunities and advance their careers. As with many areas of the law, finding the right balance between competing interests is key. At KI Legal, our Labor and Employment Division specializes in the intricacies of the employer-employee relationship. Business owners, operational managers, and human resources professionals are encouraged to consult with our team of attorneys at KI Legal as we are well-versed in employment law and compliance matters. If you are an employer and you feel that one or more of your employees is in breach of their duty of loyalty, do not hesitate to contact our labor & employment attorneys by calling (212) 404-8644 or emailing info@kilegal.com.

This information is the most up-to-date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.

_____________________________________________________________________________________

KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum. KI Legal’s services generally fall under three broad-based practice group areas: Transactions, Litigation and General Counsel. Its extensive client base is primarily made up of real estate developers, managers, owners and operators, lending institutions, restaurant and hospitality groups, construction companies, investment funds, and asset management firms. KI Legal’s unwavering reputation for diligent and thoughtful representation has been established and sustained by its strong team of reputable attorneys and staff. For the latest updates, follow KI Legal on LinkedIn, Facebook, and Instagram. For more information, visit kilegal.com.

In the general medical practice, when your doctor provides you with a prognosis, they are essentially giving you an explanation of how they expect your condition or disease to advance in the future. There are general prognosis categories, such as excellent, good, fair, poor, etc. When it comes to claims assessment cases, the categories may differ, depending on the software that the insurance company is using.

For example, the most prevalent software – Colossus – uses the following categories:

1. Resolution undetermined,
2. No complaint/no further treatment required,
3. Complaint/no further treatment required,
4. Complaint/further treatment required,
5. Guarded

With all this being said, the most important thing that you can do when filing your claims assessment case is to ensure that your doctor gives each of your injuries a prognosis. If you are aware of the type of claims assessment software your insurance company uses, then make sure that your doctor adopts the terminology that the software prefers. To give your claim the best chance of success with a high settlement, it is important that all of the documents are properly filed with attention to the details of each injury sustained. If you are concerned about whether your documents are sufficient to make a claim, or need help with properly formatting your demand letter to the insurance company, our personal injury attorneys at KI Legal Personal Injury are here to help. With a strong attention to detail and a focus on dedicated advocacy, our team will do everything it can to help you succeed with your claim. Give us a call at (212) 404-8605 or email michael@kilegal.com to set up a free consultation today.

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*ATTORNEY ADVERTISING*

*PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME*

This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.

_____________________________________________________________________________________

KI Legal Personal Injury fights for victims of a wide array of personal injury claims, from Motor Vehicle Accidents to Scaffolding and Ladder Falls to Slip/Trip & Falls, amongst others. By leveraging its multidisciplinary foundation and, with the help of its experienced litigators, KI Legal Personal Injury can fight for the results and compensation that victims deserve without pushing for premature settlements due to financial reasons. This financial paradigm shift swings the pendulum in our favor when it comes to negotiating with insurance carriers, inherently leading to better results for clients. For the latest updates.

The certificate of incorporation is a legal document that outlines the formation and structure of a corporation. It is a crucial document that sets forth the rights, powers, and limitations of the corporation and its shareholders. One of the most important aspects of the certificate of incorporation is the limitations on liability that it sets forth. These limitations are designed to protect the corporation and its shareholders from legal and financial liabilities.

Limitation of Liability for Shareholders

The limitations on liability set forth in the certificate of incorporation can take many forms. One common limitation is the limitation of liability for shareholders. This means that shareholders are not personally liable for the debts and obligations of the corporation. Instead, their liability is limited to the amount of their investment in the corporation. This limitation is important because it encourages investment in the corporation and protects shareholders from financial ruin in the event of the corporation's failure.

Limitation of Liability for Directors and Officers

Another common limitation on liability is the limitation of liability for directors and officers. This means that directors and officers are not personally liable for the actions of the corporation. Instead, their liability is limited to the extent of their negligence or misconduct. This limitation is important because it encourages individuals to serve as directors and officers of the corporation without fear of personal liability.

Certificate of Incorporation

The certificate of incorporation may also include limitations on the liability of the corporation itself. For example, the certificate may limit the amount of damages that can be awarded against the corporation in a lawsuit. This limitation is important because it protects the corporation from excessive damages that could threaten its financial stability. There are, however, some limitations on liability that cannot be set forth in the certificate of incorporation. For example, a corporation cannot limit its liability for intentional misconduct or fraud. Additionally, a corporation cannot limit its liability for certain types of environmental or employment law violations.

In conclusion, the limitations on liability set forth in the certificate of incorporation are crucial for protecting the corporation and its shareholders from legal and financial liabilities. These limitations encourage investment in the corporation, protect directors and officers from personal liability, and limit the liability of the corporation itself. However, there are some limitations on liability that cannot be set forth in the certificate of incorporation, and corporations must still comply with all applicable laws and regulations.

As a law firm committed to upholding the highest standards of corporate law, we stand ready to assist our clients in navigating these complex issues. Contact our experienced corporate governance attorneys by calling (212) 404-8644 or emailing info@kilegal.com to discuss.

This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.

_____________________________________________________________________________________________

KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum. KI Legal’s services generally fall under three broad-based practice group areas: Transactions, Litigation and General Counsel. Its extensive client base is primarily made up of real estate developers, managers, owners and operators, lending institutions, restaurant and hospitality groups, construction companies, investment funds, and asset management firms. KI Legal’s unwavering reputation for diligent and thoughtful representation has been established and sustained by its strong team of reputable attorneys and staff. For the latest updates, follow KI Legal on LinkedIn, Facebook, and Instagram. For more information, visit kilegal.com

Many people who are injured in car crashes or other accidents unfortunately must continue performing some activities that still cause them pain out of necessity, such as work, household, and educational duties. These activities are labeled “duties under duress” in the personal injury world. Duties under duress are among the most valuable factors used by claims assessment software in determining the value of a potential claim for an insurance company. Therefore, it is extremely important that you understand what exactly constitutes a “duty under duress” and how they must be properly accounted for.

To begin assessing a potential personal injury claim as a duty under duress, the duress must be recorded by a doctor. Duress may remain unaccounted for if a doctor does not note the pain in their chart note and narrative report. Both the chart note and narrative report provide detailed accountings of the injured person’s visit to the doctor. They are also used by the doctor to determine the chronological order of the events prior; this includes information about any injury-related time restrictions at work, or activities the injured person continues to do at home out of necessity. When meeting with a doctor post-accident, it is imperative that any details about duties under duress be mentioned by the injured person and subsequently reported (if applicable) by the injured person’s doctor.

If a claim fails to include existing duties under duress, it can be substantially undervalued. That is why it is extremely important that you have an experienced personal injury attorney in your corner advocating for your case and making sure they're doing everything to get you the money you deserve. Our team here at KI Legal Personal Injury is here to help you, whether you want to learn more about duties under duress or get started on filing a lawsuit for an injury you, or someone you know, suffered. Reach out to us today for a free consultation by calling (212) 404-8605 or by emailing michael@kilegal.com.

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*ATTORNEY ADVERTISING*

*PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME*

This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.

_____________________________________________________________________________________

KI Legal Personal Injury fights for victims of a wide array of personal injury claims, from Motor Vehicle Accidents to Scaffolding and Ladder Falls to Slip/Trip & Falls, amongst others. By leveraging its multidisciplinary foundation and, with the help of its experienced litigators, KI Legal Personal Injury can fight for the results and compensation that victims deserve without pushing for premature settlements due to financial reasons. This financial paradigm shift swings the pendulum in our favor when it comes to negotiating with insurance carriers, inherently leading to better results for clients. For the latest updates.

As we discussed in our prior article, Types of Nonimmigrant Visas, a nonimmigrant visa, aka a temporary visa, grants its holder with U.S. government permission to perform a specialized activity – and only that activity – for a specific, limited time. Temporary visas can allow for multiple entries, or they can allow for a single entry. A visa is usually stamped on your passport and will contain information on whether it was issued for multiple entries or a single entry and the expiration date. You will only be given admission into the United States at an airport or border if the visa you are using to enter the United States is valid at the time of entry.

A visa is a document used only at the time of entering the United States. Once you enter the United States, you should refer to your I-94 validity period to determine how long you are allowed to remain in the United States and your immigration status during your stay. If you intend to apply for an extension of your status or change your status while you remain in the United States, you must do so before the expiration date of your I-94. Again, the visa on your passport is only important at the time of entry. Once you enter, your I-94 dictates the time limits. So, if your I-94 is still valid but your visa has expired while you are in the United States, it is not a problem - you are still considered to be maintaining valid immigration status.

A visa can be obtained at a U.S. Consulate in your home country. If you plan to obtain a temporary visa at a consulate other than the one in your home country, this process is called third country national (TCN) processing.

There are several indicators of the time limits on your visa and your status, which will be described below.

Look at the Expiration Date of your Visa Petition or Certificate of Eligibility

Some work visas require that your employer submit a petition requesting that you be allowed to enter and work in the United States. Some work visas that include this requirement are visa categories H, L, O, P, and Q. Student visas may require that you first obtain a certificate of eligibility from the U.S. school. The petition’s approval notice or the certificate of eligibility will indicate the desired start and expiration dates of the visa. This may give an idea of how long your visa and/or I-94 are valid for. You should always refer to your visa and/or I-94 for official validity periods.

Expiration Date of your Visa

The expiration date on your visa does not indicate how long you can stay in the United States once you arrive. Instead, it indicates how long you have the right to enter/reenter the United States. There is a chance that your visa expires before you are required to leave the United States, the time of which was allotted through your certificate of eligibility/approved petition, and which is listed on you I-94 card. If this is the case, you can renew your visa at a United States consulate the next time your travel outside of the U.S. You can also choose to stay in the United States without traveling for the full term of your petition or certification of eligibility, so long as your I-94 remains valid throughout the entire time that you are in the United States.

Number of U.S. Entries Permitted on the Visa

There are two types of visas. Most are the multiple-entry type, which allows you to go in and out of the United States as many times as your please until the visa expires. Some are the single-entry type, which you can use to enter the United States only once.

Departure Date on your I-94 Card

The “admit until” date on your I-94 card controls how long you can stay in the United States, not the expiration date on your visa. The "admit until” date on your I-94 card will come either from the date on your approved petition/certificate of eligibility, or from governing immigration laws and reciprocity between countries. Although it is common for the “admit until” date, the end date on your approved petition, and the expiration date on your visa to all be the same, that is not always the case.

There are times when a border patrol officer may give you a shorter stay in the United States on your I-94 card than your petition allows for. If this happens, you can apply for an extension. Applying for this extension can be a complicated process, however, so we recommend you have an experienced attorney handling it for you.

If you are a student, then your I-94 card may say “D/S,” which means duration of status. This indicates that you can stay for as long as you are actively pursuing the academic program for which you entered the United States, and you are not violating the terms of your status.

Expiration Date on your Passport

First, it is important to know that you cannot enter the United States without a valid passport. With that said, your visa is stamped in your passport, and if your passport expires while you are trying to enter the United States, there is a simple fix to the problem: apply for a new passport and bring your expired passport with you. As you are entering the United States, simply show the border patrol officer your expired passport with the Visa in it, and then your new valid passport.

Potential Visa Cancellation due to Overstaying your Visa Status

If you overstay the “admit until” date on your I-94, your visa will automatically be cancelled. This will make you ineligible for TCN processing, and you will have to return to your home country to apply for a new visa. There are severe immigration consequences to overstaying beyond the “admit until” date on your I-94 and you should consult with an immigration attorney before departing the United States. If you have overstayed your visa, and are looking for guidance, it is imperative that you consult with an experienced immigration attorney who can provide information on the consequences applicable to your case and minimize negative consequences.

If you are looking to apply for a temporary visa, concerned about how long your visa allows you to stay and work in the United States, or believe that your visa may have expired and you don’t know what to do next, our immigration attorneys at KI Legal are here to help. Don't hesitate to call us at (212) 404-8644 or you can email info@kilegal.com to learn about your next steps.

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This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.

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KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum. KI Legal’s services generally fall under three broad-based practice group areas: Transactions, Litigation and General Counsel. Its extensive client base is primarily made up of real estate developers, managers, owners and operators, lending institutions, restaurant and hospitality groups, construction companies, investment funds, and asset management firms. KI Legal’s unwavering reputation for diligent and thoughtful representation has been established and sustained by its strong team of reputable attorneys and staff. For the latest updates, follow KI Legal on LinkedIn, Facebook, and Instagram. For more information, visit kilegal.com.

Tortious interference can take place in a variety of settings, but the most common cases involve interference with contracts, potential business relationships, or existing economic relationships. Courts only allow claims for tortious interference with contract, in the context of mergers and acquisitions, when a real breach of the contract has occurred. Under New York law, the standard test for finding if a defendant has committed tortious interference with contract is: “(1) the existence of a valid contract between plaintiff and a third party; (2) the defendant's knowledge of that contract; (3) the defendant's intentional procuring of the breach, and (4) damages.”[1] Despite this bar, New York Courts will attempt to only strictly interpret these when dealing with mergers and acquisitions.[2]

To support a claim for tortious interference with a contract, courts typically will not accept interference with a merger agreement by a third party that causes the acquiring party to pay a higher price for the target entity. There is typically no breach of contract to support a claim for tortious interference with contract in the event that the target entity is ultimately purchased by the acquiring entity, even at a price that is higher than anticipated.[3] New York courts have consistently found that a change in a price agreed to, even if because of interference by a third party, will not be enough to support a claim for tortious interference with contract. Additionally, Courts will generally refuse a claim for tortious interference of contract where a party pulls out of a merger agreement because of interference by a third party, so long as there was a clause allowing a party to leave said agreement of their own accord.[4] That is because, in this context, there was no actual breach of contract.[5] Simply put, courts hold a very strict and narrow interpretation of tortious interference of contract, especially in the context of mergers and acquisitions. A breach of contract, consistent with the New York standard, must be caused by a third party in order for a plaintiff to prevail on their claims.

In the context of a merger, the potential acquiring company typically needs to demonstrate that the third party engaged in intentional interference by employing "wrongful or unlawful means to secure a competitive advantage" in order to establish a tortious interference with economic relations claim.[6] Just like claims for tortious interference with prospective business relations in the employment contract context, merely showing that a third-party was acting for financial gain as a primary motivation is not enough for a plaintiff to prevail on their claim. For example, if there are competing parties trying to either merge or acquire the same entity, there is little chance a party can prevail if trying to sue the other for tortious interference with prospective contract, as both parties are simply acting out of financial motivation.

For help navigating restrictive covenants and drafting employment agreements, contact KI Legal’s knowledgeable labor & employment attorneys by calling (212) 404-8644 or emailing info@kilegal.com. We are here to help protect your business and interests.

This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team.

_____________________________________________________________________________________

KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum. KI Legal’s services generally fall under three broad-based practice group areas: Transactions, Litigation and General Counsel. Its extensive client base is primarily made up of real estate developers, managers, owners and operators, lending institutions, restaurant and hospitality groups, construction companies, investment funds, and asset management firms. KI Legal’s unwavering reputation for diligent and thoughtful representation has been established and sustained by its strong team of reputable attorneys and staff. For the latest updates, follow KI Legal on LinkedIn, Facebook, and Instagram. For more information, visit kilegal.com.