Winter, 1994


On the job

The recently passed Family and
Medical Leave Act entitles eligible employees to receive up to 12 weeks
annually of unpaid, job-protected leave in the event of a birth of a child,
family emergency or medical situation. Employers that must provide leave
include: All public agencies, including state, local and federal employers,
schools; Private-sector employers who employed more than 50 employees in 20 or
more work weeks in the current or proceeding calendar year. Covered employees
include: All employees who work for a covered employer and: -----Have worked for
that employer for a total of at least 12 months; -----Have worked at least 1,250
hours over the past 12 months; -----Work at a location where at least 50 people
work for the employer within 75 miles; Most federal and congressional employees.
While the employee is on leave, the employer is required to maintain his or her
group health insurance coverage on the same terms as if the employee was working
full time. Employees are required to pay their share of that coverage, but no
more. Upon return to work, the employee must be reinstated in his or her
original job or in an equivalent job with equivalent pay and benefits. Covered
employees may take up to 12 weeks of unpaid leave for the birth of a new baby or
the reception of an adopted or foster child; to provide care for an immediate
family member with a serious medical condition; or if the employee is unable to
work because of a serious medical condition. 

Car news

Auto dealers must now disclose to a customer bringing in a car for a specific repair whether that repair is covered. As of January 1, 1994, when you drive your out-of-warranty car to a mechanic, you will have a better chance of discovering that what's ailing it could be fixed for no charge. A new California law now attempts to end an automobile-industry practice of not telling consumers that certain repairs are covered by "secret warranties" in the form of warranty adjustments spelled out in factory service bulletins issued to authorized dealers' repair centers. Such bulletins tell mechanics how to correct certain defects, sometimes at no charge even after the vehicle's warranty has expired. The practice has had the effect of operating like a "silent recall". The message here is that if you have a "gut" feeling about your vehicle, follow your instinct and inquire about service bulletins and non publicized recall. Although the dealer will by law be required to come forward with such information in the first instance, the failure to do so upon inquiry could have far more serious consequences if information provided is ultimately found inaccurate, or incomplete.

Speaking of cars and accidents

Although I have specialized in accident injury cases for nearly 14 years, I am never surprised to see the same questions from clients about just what they have a right to expect, if they have been in an auto or other vehicle type accident. What follows is still the law. If you have been the victim of a traffic accident (or any other type of accident), you have certain rights which are guaranteed by law. Your basic right is to be put back in the same condition that you were before the accident occurred. Practically speaking, this means you have the right to:

  1. Have your automobile repaired to its original preaccident condition. The law applies a "yardstick" in assessing damages for injury of the property. The yardstick is the lower of either fair market value or cost of repair, plus loss of use.
  2. Have any other personal property which had been damaged or destroyed be repaired or replaced.
  3. To recover any lost wages or loss of earning capacity.
  4. To be reimbursed for transportation costs to and from the medical facility; and for the time spent traveling to therapy, as well as for the time spent within the scope of therapy.
  5. To be compensated for any undue physical or mental stress, or any inconvenience which the accident might have caused.
  6. To an equitable settlement for permanent disabilities which might have resulted from the accident and medical expenses incurred, irrespective of insurance coverage.
  7. To choose the very best facilities to repair your automobile-and which medical professionals will attend to your personal physical and mental injuries.
  8. To be assured that all other passengers in your automobile will also receive the same treatment.
  9. To be compensated for any pain and suffering, caused by the accident.
  10. To be represented by the best personal injury lawyer of your choice. Please remember that, in the early stages of an accident controversy (no matter how serious), a time often filled with confusion and stress due to injury; this continues to be one area of law where accessing an attorney can have maximum impact and benefit.

Small business planning

Our office specializes in serving the legal needs of the small business person. With the increases in direct selling, home-based entrepreneurs, franchise ownership, independent distributorships, marketing, manufacturing and sales representatives, this just so happens to be the fastest growing area of the economy. Many times, I get "eleventh hour" or last minute inquiries and assignments. Working with my small business clients requires getting them used to "planning" rather than reacting. Planning in the small business environment, means building on your "network" of information, as well as getting proper advice from your accountant, banker, attorney or industry adviser. If you develop the "networking" habit,very often you will be pleasantly surprised to find out that a publication, seminar, club, group, or database exists which can provide some immediate, "front-line" help. I have attached to this newsletter a list of examples in the form of a "Small Business Reference Guide".

Bankruptcy and credit

Very often, the decision to seek protection from creditors in the Bankruptcy Court comes after months of self-help and other efforts to try to prevent what sometimes is the inevitable. Many times, the wish or hope is "for a little time". Sometimes things can be done to help a current debtor contemplating bankruptcy. The formal terms used include negotiation of extensions, compositions (debt reductions), or consolidation loans (usually involving property with equity). Even though we would be very happy to meet and confer, and help you through your Bankruptcy needs, including Chapter 7 petitions for complete discharge, a little information put to good use can sometimes make a difference. The burden will be upon you, and the "numbers" must be workable. Since your efforts will inevitably involve you in a readjustment of your credit situation, you should be armed with both knowledge and a plan for creating the best chances for success.

The first step is to run a self credit check. If you are denied credit, you are entitled by law to a free copy of your credit report from the agency that supplied the information within 30 days of credit denial. If you just want to check your status, TRW offers one free copy per year. The other two agencies charge. Always make your request in writing: TRW Consumer Assistance Center, P.O. Box 749029, Dallas, TX 75374; 800-392-1122 Equifax Information Service Center, .P O. Box 740241, Atlanta, GA 30374-0241;800-685-1111.The cost is $8. Trans Union Consumer Relations Center, 25249 Country Club Boulevard, P. O. Box 7000, North Olmsted, OH 44070. No 800 number. These three credit companies issue an estimated 400 million records a year on more than 160 million individuals, 90 per-cent of America's adult population. These consumer credit clearing-houses buy data from different sources and then "resell" it to other subcontractors The process of reporting and recording credit information is far from perfect. There is a high rate of inaccuracy. Therefore, the second step is to correct any mistakes by written correspondence. Be sure to check the other two agencies: clearing up errors in one file does not expunge mistakes in the others. Ask for corrected versions to be sent to you and to those who queried the bureau regarding you in the last six months. You are entitled to this by federal law. If you are unable to clear your report, you are entitled to a 100 word explanation that will be inserted into your report.

The final step is to get help, legal or otherwise, if you need it. An excellent source for help even if you are contemplating Bankruptcy, is the non-profit Consumer Credit Counseling Service: 800-388-2227. They can help you develop a budget and prepare a plan for repayment. By law, negative credit information can stay on the record no more than seven years with the exception of bankruptcy which is reported for 10. (However, one can only obtain Bankruptcy Court discharge once every six years.)

Family and Criminal law

I wish to announce my "of counseling" arrangements with J. Michael McCoy, Esq. and Peter Scalisi, Esq. These associations expand my ability to deliver additional legal services in the areas of Family and Criminal law. Mr. McCoy is an experienced domestic relations attorney and long time resident of Moreno Valley. He is versed in all phases of Family Law including divorce, custody, support, property settlements, adoptions and guardianships. Mr. Scalisi is a former Riverside County Deputy District Attorney and a seasoned criminal trial lawyer with numerous "high profile" verdicts under his belt, including all felony matters, State and Federal Court..

With best regards, Gerald Spala January 31, 1994