Issue 1/96 · Online Edition · February, 1996


A periodic newsletter on legal issues for clients and friends of David B. Forest, P.C., 42657 Garfield, Suite 211, Clinton Township, Michigan 48038 (810) 263-5690 The Gavel MOVES! Hope your New Year is starting out as great as our is ... because the lead story is we've moved! As always, we hope you enjoy this issue.
Disclaimer: Nothing in this newsletter is intended to be or a substitute for legal advice.

LAW OFFICES MOVE!
As some of you have noticed, we have been outgrowing our old offices. After 22 years, it was time to leave the old farm house and move into a modern office. We are still in Clinton Township, and have only moved about two miles west of the old offices; the new offices are located at 42657 Garfield, Suite 211 [the zip changes to 48038]. We're located in the Clinton Oaks Professional Plaza on the west side of Garfield, just South of 19 Mile (map). It is just down the road from Macomb College, and will be convenient for teaching the Business Law courses.
Also, the phone numbers had to change. The general office number is (810) 263-5690 and the new fax number is (810) 263-5696. The new offices are shared with other attorneys, and there are a few nice features some of you have very politely hinted at:
  1. it is on the ground floor,
  2. there is a comfortable waiting area,
  3. the conference room is located within the suite,
  4. the heating and air conditioning are consistent, and
  5. it is smoke free.

What won't change is the quality and level of client service. If you're in the area, please stop in to say Hello!

COLLECTING MONEY
One of the services we provide for our clients (and some other law firms) is debt collection. Generally, we are asked to assist on the "harder" ones. Uncollected accounts receivable are one of the biggest untapped assets of most businesses, and are a significant drag for a large number of individuals.
The number one reason businesses fail is poor cash flow, not lack of "profits". Yet the dichotomy is that some risks (including credit) must be taken to grow a business. When the credit risk turns into a slow or non paying account, you've got a collection problem.
The problem becomes: how to convert a problem account into cash. There are more excuses for not paying than one might imagine (we've heard some very creative ones in this line of work), but that's all they are: excuses. The way to convert an overdue account into cash is to make payment of the debt more important to the debtor than it had been. If a debtor has to pay a bill, a way will be found.
There are many ways to make your debt more important than others. Some of the methods that we have found successful:

  1. a strong letter (most effectively by an attorney) highlighting the effects of not paying the debt (credit rating, etc.);
  2. going to court and getting an Order to Pay; and
  3. Post Judgment collection proceedings. These include Creditor's Examinations (with Bench Warrants for failing to appear), Garnishments, Writs of Execution (seizure of assets) and Receivership.

One key to successful collection is to move as quickly as possible. It is best to think of overdue accounts as perishable assets: The longer an overdue account ages, the less likely it is that it will be successfully collected. According to the Commercial Law League, accounts that are two months delinquent are successfully collected 86% of the time; when an account is 12 months old the success rate drops to 26%.
If someone owes you money or you have a problem account, give us a call to discuss the matter.
CASES IN POINT: Slipping on groceries
'Slip and Fall' cases seem to be more prevalent. On the one hand, many people are outraged at the seeming explosion of these tort cases, particularly when the 'injury' is bogus, or the person caused their own injury by not being careful or not using common sense. On the other hand, if you are the one injured because of someone else's negligence, you want fair compensation.
In slip and fall cases, one of the most frequently sued entities is a grocery store. A store is liable for injury resulting from an unsafe condition caused by its own negligence. A store can also be liable when someone else caused the condition and the store knows of it or the condition has existed long enough that the store should have known of it.
The traditional example is a banana: if the discarded peel on the floor is still yellow, it means the condition is still fresh, and the grocer cannot be assumed to have known of its existence on the floor. But is the discarded peel is brown, it is presumed it has been there long enough that a reasonably prudent grocer would have noticed it and eliminated the hazard.
The following two cases involve different produce, with different results.
· Grapes are Risky?
In a variation on the brown banana peel concept, a grape's condition can be determinative of length of time on the floor.
A customer at a Meijer store in Royal Oak went through the check-out line and paid for her groceries. As she was leaving the check out counter on her way out of the store, she stepped on a grape and fell, sustaining injuries. She later testified that "it felt as if the grape had previously been stepped on." The cashier wiped up the area with a paper towel and discarded the towel and the grape. In the subsequent lawsuit, the store moved for summary disposition since there was no evidence that the grape had been on the floor very long. In fact, the customer testified that after she stepped on the grape, she saw it described it as "flat, white and juicy".
The store ultimately lost, as the Court ruled that no one will ever know for sure what condition the grape was since the Defendant "destroyed the evidence", and thus its condition must be presumed to operate against the evidence destroyer. Plus, the evidence that it had been previously stepped on (customer's description) was sufficient to establish that it had been there long enough to give the store actual or constructive notice. Ritter v Meijer, Inc..
· Rice is safer
A recent case concerning rice went the other way: the Grocer prevailed.
A Kroger customer alleged that while she was shopping, she slipped on rice that had been spilled. The defendant grocer moved for summary disposition and won. The Court agreed with the grocer that Plaintiff had not provided evidence that the rice had been on the floor a sufficient length of time to give the grocer constructive notice of the condition.
The Plaintiff tried to argue that her case was similar to the stomped grape case (above), but to no avail. The Court stated: "There is simply no indication that the rice had been encountered by anyone before Plaintiff, much less that it had been there [long enough]." Coleman v Kroger Co.

NEW PHONE NUMBER
David B. Forest, JD, MBA
Attorney and Counselor at Law
(810) 263-5690


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