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Thursday

25

April 2024

0

COMMENTS

Question: Are Lawsuit Loans Legal?

Written by , Posted in Consumer Law, Contract Law, Securities Law

Answer: Yes, lawsuit loans are legal in most states and jurisdictions in the U.S.

In technical terms, lawsuit loans are legal because they represent a unique financial arrangement where a funding company purchases a portion of the potential future settlement or judgment in a pending lawsuit of a plaintiff (the borrower of the lawsuit loan).

This is legal not a “shady” or under-the-table arrangement, it’s just a legal workaround to ensure that money can be lent, and ensures the borrower doesn’t take on undue risk, and same for the lender, that the lender can be sure of payment from the respective future settlement.

Why People Wonder about the Legality of Pre-Settlement Loans

When it comes to lawsuit loans, it is important to understand that the term “loan” is a word used primarily for marketing purposes. Legally speaking, lawsuit loans are not loans in the traditional sense, but rather cash advances structured as non-recourse purchases of an equitable lien in a settlement claim.

This is legal, but might raise questions when people research online and see disclaimer text to this affect on lawsuit lending websites.

The terms “lawsuit loans,” “pre-settlement funding,” or “litigation financing,” are legal and prominent because they don’t fit the traditional definition of a loan, but still act as one.

Note: lawsuit loans are a legitimate industry, and legal funding services are useful and commonly utilized by plaintiffs in the U.S. who have been injured, such as in car accidents or other personal injury accidents, where they as the victim need immediate access to a portion of their future settlement monies while awaiting the litigation or trial of their case.

What sorts of Interest is Legal?

Many states have implemented consumer protection measures specific to lawsuit loans to keep them legal:

  • Disclosure Requirements: Lenders must provide clear, written explanations of all fees and terms.
  • Interest Rate Caps: Some states limit the annual percentage rate (APR) that can be charged on legal lawsuit loans.
  • Cooling-off Periods: Several states require a period during which borrowers can cancel the agreement without penalty.

In the lawsuit funding industry, companies may use different methods to calculate the cost of their advances. Some (the nicer) funding companies advertise very clearly that they only use simple interest—such as this company offering lawsuit loans (Provident Lawsuit Loans)—where the fee is calculated only on the principal amount.

While many other lenders use compound interest, where fees are calculated on both the principal and previously accumulated fees. This can run afoul of usury laws in certain states and make lawsuit loans illegal in that jurisdiction. Additionally, high interest rates can significantly increase the amount owed when the loan is due and be quite the surprise for the borrower.

Federal Lawsuit Loan Laws

Did you know: there are no specific regulations governing lawsuit loans at the federal level. BUT, the lack of federal oversight has led to various state-level regulations. Also, the Consumer Financial Protection Bureau (CFPB) has shown interest in the industry, particularly regarding consumer protection issues.

State-Level Legality

The legality of these lawsuit loans varies significantly from state to state in the US. Generally, states fall into four categories regarding their approach to lawsuit loans:

  1. Fully legal and regulated
  2. Legal with restrictions
  3. Prohibited
  4. Gray areas with unclear regulations

States Where Pre-settlement Funding / Lawsuit Loans Are Legal

Many states have embraced lawsuit loans as a legitimate financial product. For example:

  • New York: Lawsuit loans are legal and regulated under the state’s Banking Law.
  • Illinois: The state has enacted specific legislation governing lawsuit lending practices.
  • Ohio: Lawsuit loans are permitted and subject to state usury laws.

In these states, regulations often focus on interest rate caps, disclosure requirements, and licensing of lawsuit lending companies.

States with Restrictions

Some states allow lawsuit loans but have imposed significant restrictions. For instance:

  • Maine: Lawsuit loans are legal but subject to a 3% monthly interest rate cap.
  • Nebraska: The state requires lawsuit lenders to register with the Department of Banking and Finance.

These restrictions aim to protect consumers while still allowing access to pre-settlement funding.

States Where Lawsuit Loans Are Prohibited

A few states have taken a strong stance against lawsuit loans:

  • Arkansas: The state Supreme Court has ruled that lawsuit loans violate state usury laws.
  • Tennessee: Lawsuit loans are effectively banned due to strict interest rate caps.

In these states, the prohibition is often based on concerns about excessive interest rates and the potential for lawsuit loans to prolong litigation.

States with Unclear Regulations

Several states have ambiguous laws regarding lawsuit loans:

  • California: The legal status of lawsuit loans is currently being debated in the courts.
  • Texas: There is ongoing discussion about how to classify and regulate lawsuit lending.

In these states, the legality of lawsuit loans may depend on how they are structured and marketed.

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Wednesday

24

April 2024

13

COMMENTS

Question: Is It Legal To Own A Hedgehog In New York?

Written by , Posted in Statutory Law

Answer: Maybe. It depends where in New York you live if you can have one of these spiky friends. While hedgehogs are legal to own in the State of New York, they are not legal to own if you live within New York City (inclusive of the five burroughs). Other states have banned ownership of hedgehogs as some wildlife agencies are concerned that a larger hedgehog population could pose a risk to local wildlife.

In New York State, the Environmental Conservation Law (ECL) Article 11, Title 1, Section 11-0103 prohibits the possession, sale, barter, transfer, exchange, or import of wild animals as pets without a license. Hedgehogs are considered wild animals under this law.

However, the law allows for individual cities, towns, and villages to pass their own local laws regarding the ownership of exotic pets. As a result, the legality of hedgehog ownership varies across the state.

For example:

  1. In New York City, hedgehogs are illegal to keep as pets under the New York City Health Code Section 161.01, which prohibits the possession of wild animals.
  2. In Buffalo, hedgehogs are allowed as pets, as the city does not have specific laws prohibiting their ownership.

Therefore, to determine the legality of owning a hedgehog in a specific location within New York, one would need to check the local laws and ordinances of that particular city, town, or village.

The only resource tracking hedgehog ownership laws can be seen here: https://www.hedgehogcentral.com/illegal.shtml

[CONTACT THE ATTORNEY WHO ANSWERED THIS QUESTION]

Tuesday

23

April 2024

0

COMMENTS

Question: Is It Legal to Put a Sauna in a House or Apartment as a Renter/Tenant?

Written by , Posted in Contract Law, Insurance Law, Property Law, Real Estate Law

Answer: Yes, in some cases. If you can install the sauna without needing to modify the landlord’s dwelling (such as by running new 220v wiring or similar) or making any other permanent addition or modification to the house or apartment, than you should be good to go. If not, as lawyers, we’d recommend you to definitely need to ask for permission as the first step before doing anything else.

But let’s explore adding a sauna as a renter in more detail, including lease agreement considerations (landlord-tenant law), landlord consent (property law), building codes and permits (building and construction law), liability and insurance (insurance law and tort law), and removal and restoration (contract law).

Lease Agreement Considerations (Landlord-Tenant Law)

Before you start planning your sauna installation, it’s crucial to review your lease agreement thoroughly. Look for any terms, conditions, or restrictions that may prohibit or limit your ability to modify the rental property. Pay close attention to clauses that address alterations, improvements, or installations. Landlord-tenant laws vary by state and local jurisdiction, so it’s essential to understand your rights and obligations as a tenant.

For example, your lease may include a clause stating that any alterations or modifications to the property require the landlord’s prior written consent. If such a clause exists, you’ll need to discuss your sauna installation plans with your landlord before proceeding. “It’s essential for renters to carefully examine their lease agreements and understand their rights and obligations regarding property modifications,” our lawyers say. “Failure to comply with the lease terms can lead to legal consequences and potential eviction.”

Landlord Consent (Property Law)

Obtaining your landlord’s written permission is a critical step in the process of adding a sauna to your rental property. Schedule a meeting with your landlord to discuss your sauna installation plans in detail. Be prepared to address any concerns they may have, such as potential damage to the property, noise levels, or increased utility costs. Property law governs the ownership, use, and transfer of real estate, including rental properties, so it’s essential to understand your landlord’s rights and responsibilities. Your landlord may grant conditional approval for the sauna installation, subject to certain requirements or restrictions.

For instance, they may stipulate that the sauna must be installed by a licensed professional or that you must obtain the necessary permits and approvals from local authorities. “Landlords have the right to protect their property and ensure that any modifications are done safely and legally,” explains Dr. Thompson. “Renters should approach the conversation with their landlord openly and transparently, and be willing to accommodate reasonable requests.”

Building Codes and Permits (Building and Construction Law)

Before installing a sauna in your rental property, you must research and comply with local building codes and regulations. These codes ensure that the sauna is installed safely and meets the required standards for electrical wiring, ventilation, and fire safety. Building and construction law governs these requirements and ensures that structures, including saunas, are built and installed safely and in compliance with local requirements.

Contact your local building department to inquire about the specific requirements for sauna installations in your area. You may need to obtain permits, such as an electrical permit, to proceed with the installation legally. “Failing to obtain the necessary permits can result in fines, legal penalties, and potential removal of the sauna at the renter’s expense,” warns Dr. Thompson. “It’s crucial to navigate the permit process diligently to avoid any legal complications.”

Liability and Insurance (Insurance Law and Tort Law)

Installing a sauna in your rental property comes with potential liability risks. If a guest or visitor is injured while using the sauna, you could be held liable for any damages or medical expenses incurred. Tort law governs the legal remedies available to individuals who have suffered harm due to the actions or omissions of others, such as negligence or premises liability. Review your renter’s insurance policy to determine if it provides coverage for such situations.

If not, consider obtaining additional liability insurance to protect yourself from potential legal claims. Insurance law addresses the coverage provided by renter’s insurance policies and any additional liability protection that may be necessary. “Renters should also consider having guests sign a liability waiver before using the sauna,” suggests Dr. Thompson. “While not foolproof, a waiver can provide some level of protection and demonstrate that the renter took reasonable precautions.”

Removal and Restoration (Contract Law)

When your lease comes to an end, you may be required to remove the sauna and restore the rental property to its original condition. Review your lease agreement carefully to understand your obligations regarding removal and restoration. The lease agreement is a legally binding contract, and contract law principles apply to the interpretation and enforcement of lease terms, including clauses related to property modifications and alterations.

If the lease includes clauses addressing these issues, you must comply with the specified requirements. Failure to do so could result in the loss of your security deposit or additional legal consequences. “Renters should budget for the cost of sauna removal and property restoration,” advises Dr. Thompson. “It’s important to have a plan in place to ensure a smooth transition when vacating the rental property.”

Frequently Asked Questions (FAQs):

  1. Can a landlord refuse to allow a sauna installation? Yes, a landlord has the right to refuse a sauna installation if they believe it poses a risk to the property or violates the terms of the lease agreement.
  2. Is it necessary to obtain a building permit for a portable sauna? We’re not contractors so we’d say no, but portable saunas may still require permits depending on local building codes and regulations. It’s best to consult with your local building department for specific guidance.
  3. Who is liable if a guest is injured while using the renter’s sauna? The renter may be held liable for any injuries sustained by guests while using the sauna. Renter’s liability insurance and waivers can help mitigate potential legal risks.
  4. What happens if the renter fails to remove the sauna at the end of the lease? If the renter fails to remove the sauna as required by the lease agreement, the landlord may have the right to remove it and charge the associated costs to the renter. Legal action may also be pursued.
  5. Are there any tax implications for adding a sauna to a rental property? Installing a sauna may be considered a capital improvement, which could have tax implications for both the renter and the landlord. Consulting with a tax professional is recommended to understand the specific tax consequences.

[CONTACT THE ATTORNEY WHO ANSWERED THIS QUESTION]

Sunday

31

March 2024

3

COMMENTS

Question: Growing Your Own Food, Is it Legal?

Written by , Posted in Land Use and Zoning Law

Answer: Yes, it is obviously legal to grow your own food in most countries around the world, including the United States. Basically, you need to be doing so on your own property or on property where you have permission to garden. However, there may be specific local ordinances, HOA rules, or rental agreement terms that restrict or regulate the types, quantities, or locations of plants that can be grown. These regulations might address concerns such as maintaining sightlines for drivers, controlling pests, or preventing agricultural activities in residential areas.

We recommend you check with local authorities, your HOA (if you have one) or any landlords to ensure compliance with any applicable rules or regulations.

oregon garden growing food in backyard 2

Laws Concerning Growing Your Own Food

When it comes to growing your own food, there are federal, state, and local laws and regulations to consider. At the federal level, the Right to Farm Act protects farmers from nuisance lawsuits, while the Food Safety Modernization Act (FSMA) sets standards for the safe growing, harvesting, and handling of produce. However, these laws primarily apply to commercial farming operations, not home gardens mind you.

State laws and regulations vary widely, with some states having more permissive laws than others. For example, California’s Neighborhood Food Act allows residents to grow food on their own property, regardless of local zoning ordinances. Other states, like Michigan, have passed laws protecting the right to farm and the right to keep backyard chickens.

We know it can be an un-optimal and frustrating situation, but local ordinances and zoning laws can have the most significant impact on your ability to grow food at home. These regulations may restrict the types of plants you can grow, the size and location of your garden, and even your ability to raise chickens or other livestock. It’s essential to research and understand the specific laws and regulations in your area before starting your home garden.

Common Legal Q&As

  1. Is it legal to grow vegetables in my backyard? In most cases, yep. However, we recommend you  check your local zoning laws and homeowners’ association rules to ensure there are no restrictions on home gardening.
  2. Can I sell the excess produce from my home garden? Usually.. Some areas may require permits or licenses for selling homegrown produce, while others may have more relaxed rules.
  3. Do I need a permit to start a home garden? Nope. However, if you plan on making significant changes to your property, such as building raised beds or installing irrigation systems though, you may need to obtain permits from your local government.
  4. Are there any restrictions on the types of plants I can grow? Of course. Some local laws may restrict the cultivation of certain plants, such as cannabis or invasive species. Additionally, if you live in a homeowners’ association, there may be rules about the types of plants you can grow in your yard.
  5. Can I raise chickens or other livestock for personal consumption? The legality of keeping chickens or other livestock varies widely by location. Some cities and towns allow backyard chickens, while others prohibit them. Be sure to check your local laws and regulations.
  6. Are there any water usage restrictions for home gardening? During times of drought, some areas like the hill country of Texas and Southern California may implement water usage restrictions that could impact your ability to water your garden. It’s important to stay informed about local water conservation measures and adjust your gardening practices accordingly.
  7. Can I use pesticides or fertilizers in my home garden? Yes, unless it’s a commercial-only product not legally sold to homeowners in which case there may be some gray-area legally.
  8. Are there any legal requirements for composting? Composting laws vary by location. Some cities and towns have specific guidelines for composting, such as the types of materials you can include and the location of your compost bin. Check with your local government for specific requirements.
  9. Can I share my homegrown produce with neighbors or friends? In most cases, yes. However, if you plan on regularly distributing large quantities of homegrown produce, you may need to look into local food safety regulations and permits.
  10. What are the legal implications of starting a community garden? Community gardens are subject to local laws and regulations, which may include zoning restrictions, liability concerns, and rules about the distribution of produce. If you’re interested in starting a community garden, we recommend you work with your local government and experienced community garden organizers to ensure compliance with all applicable laws.

Re-cap

Growing your own food can be a rewarding and enriching experience, but it’s important to understand the legal fine print involved. By familiarizing yourself with the federal, state, and local laws and regulations surrounding home gardening, you can ensure that your garden is compliant and avoid potential legal issues (usually due to unforeseen circumstances).

Remember to stay informed about local ordinances, zoning laws, and water usage restrictions, and don’t hesitate to reach out to local resources, such as cooperative extension offices and gardening clubs, for guidance and support. Very importantly, staying informed and compliant with all applicable laws is essential for anyone considering growing marijuana/weed or any other controlled substance.

Some sources to help you grow food include forums such as:

[CONTACT THE ATTORNEY WHO ANSWERED THIS QUESTION]

Thursday

14

March 2024

2

COMMENTS

Question: Is it illegal to burn money?

Written by , Posted in Statutory Law

Answer: Yes. There is actually a law against burning money.  According to Title 18, Section 333 of the United States Code, it is illegal to “mutilate, cut, deface, disfigure, or perforate, or unite or cement together, or do any other thing to any bank bill, draft, note, or other evidence of debt issued by any national banking association, Federal Reserve Bank, or Federal Reserve System, with intent to render such item(s) unfit to be reissued.”

While the law does not explicitly mention “burning,” this act clearly fits into the category of mutilation or defacement intended to render the currency unfit for reissue. Thus, burning money in the U.S. could be deemed illegal under this statute, especially if done with the intent to deface or destroy the currency.

It’s unlikely you’ll face consequences if you’re burning a small amount of money in private, but know that technically it’s illegal. Also, there’s a difference between burning a few small bills as a symbolic gesture versus systematically destroying large sums of money. Burning a couple dollars might go unnoticed, but setting hundreds of thousands of Dollars ablaze is much more likely to attract legal scrutiny.
burning money benjamins political protest

Why Is it Illegal?

Burning or otherwise mutilating money is illegal because the government wants to preserve the integrity and stability of the nation’s currency system. There are several key reasons behind why they made laws against burning currency:

  1. Preservation of National Wealth: Currency represents a country’s economic stability and wealth. When money is destroyed, especially in large quantities, it can potentially lead to a loss in the overall monetary supply, affecting the nation’s economy. Although the physical act of burning a small amount of currency might not significantly impact an economy, the legality sets a precedent to prevent more substantial losses. In the past, when only physical money existed, this was a big deal and laws were needed to protect the money supply against nefarious actions by enemy states or in times of revelation or civil war.
  2. Cost of Replacement: Money that is damaged or destroyed needs to be replaced, which incurs a cost. Printing new currency involves significant resources, including materials, labor, and security measures. Laws against mutilating currency help minimize these unnecessary expenses.
  3. Trust in the Currency System: Confidence in the currency system is crucial for its stability. Laws against destroying currency reinforce the idea that the national currency is a protected and valued symbol of the economy. Such legal protections help maintain public and international confidence in the currency’s value and stability.
  4. Prevention of Fraud: We think a BIIIG reason for these laws is to prevent fraud! By making it a crime to mutilate currency, the government can prosecute attempts to alter banknotes to increase their value or to reuse materials from higher denomination notes for counterfeiting purposes.
  5. Cultural and Symbolic Respect: Currency often carries significant cultural and historical symbols. Laws against destroying currency also serve to respect and preserve these symbols, which might represent important national figures, historical events, or national heritage.

As satisfying as it might feel to set your cash aflame, in the U.S. and many other countries, burning money is generally illegal when done with currency that is still in circulation. Engaging in such behavior can result in fines and even imprisonment, especially if done on a large scale or with fraudulent intent.

What About Burning Money for Artistic or Political Statements?

There might be certain artistic or expressive contexts, like a film production or political protest, where burning a small amount of money could potentially be permitted as free speech. It’s advisable to check the laws and regulations in your local area or consult with a legal professional to understand the specifics regarding money burning.

While freedom of expression is protected under the First Amendment in the United States, the law against currency mutilation remains applicable. That said, the government’s interest in prosecuting such cases might weigh the public interest in freedom of expression against the need to maintain the integrity of the currency. In other countries, laws and enforcement will vary, and such acts could be more likely to result in legal consequences, particularly if they’re viewed as damaging to the national economy or disrespectful to national symbols. In other words, in 2024 we’d recommend not setting Rubles on fire in Moscow as an act of protest against Putin’s government.

In Summary

In conclusion, while the act of burning money may be seen by some as a form of expression or protest, it is important to be aware of the legal boundaries within your jurisdiction. Given the potential for fines and imprisonment, those considering such actions should thoroughly understand their local laws and weigh the consequences. We’d recommend consulting with a legal professional can provide clarity and guidance on this complex issue.

[CONTACT THE ATTORNEY WHO ANSWERED THIS QUESTION]

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