Will I be Sued if I Don't Shovel my Sidewalk?
As Winter comes to Michigan, this question is invariably asked because people are rightfully concerned about more and more lawsuits. The answer depends on where your sidewalk is located: at your home or your business. For homeowners, the people who walk on your sidewalk are classified as either trespassers or "licensees" (e.g. social guests). There is no duty owed to licensees for injuries caused by the natural accumulation of ice and snow. For a business, the customers who come are considered "invitees", and the duty is to take reasonable measures within a reasonable time after the accumulation of snow to diminish the hazard of injury.
HOWEVER, a related liability issue for both home and business is sometimes raised. In clearing the snow and ice, what if the situation is actually worsened? Normally, this doesn't happen - the goal of making it safer is achieved. But what if in the process of clearing the snow and ice, the sidewalk or parking lot actually becomes worse? Usually this occurs when the shoveled or plowed snow melts and then refreezes. The law in Michigan is that if the powerful forces of nature reassert themselves and the surface refreezes, no liability reattaches.

SQUEEZE-OUTS!
Increasingly, we have been handling a lot of these cases, which are essentially business divorces. The story rarely changes: two or more individuals go into business together, and work hard to make the business a success. The early years are hard, but the founders work shoulder to shoulder, buoyed by their unflagging belief in the company's ultimate success. Just when things are looking rosy, one of the founders is forced out of the company: terminated as an employee, stripped of director or officer roles, and forced to sell his or her shares at an unfair price (i.e. squeezed-out). This is followed by lengthy, often unpleasant litigation.
Some disputes are inevitable in a business relationship, but early planning can avoid the escalation into a full blown squeeze-out and resulting litigation. The most common method to avoid such a scenario is having the founders agree, as early as possible, on what will constitute a major problem, and if it involves a parting of the ways, how it is to be resolved, and what will be fair notice and fair price.
Many of our clients have opted for a Buy-Sell Agreement (sometimes called a Shareholder's Agreement), often shortly after the start of the business. Not only does it address such occurrences as death, but it also covers a broad range of problems before they occur, so that the solution to the problem is agreed upon before it occurs. This process often helps to ensure fairness, since at the time of the Agreement, none of the affected individuals knows which side of the issue they will be on: payor or payee.

Are You ready to End the Tax Year?
The end of the year is still a little ways off, but it is not too early to make the financial moves necessary to minimize your tax obligations. While some people go to great lengths to ensure their tax liability is low (including one man who recently informed me he was getting married in December to make sure he could take additional deductions!), simpler steps can make a big difference. Since we are not tax experts, we asked three of our favorite CPAs what advice they give for end of the year. Here is a short synopsis of a few of their ideas:

Jeffrey Krentz, CPA; Clinton Twp (810) 790-7990
The best advice is usually to defer taxes whenever possible. Unless you are certain your 1996 tax bracket will be substantially lower, postpone income until the next year. Two specific ideas: Delay Collection - if you're self employed, delay year end billing so that payments are received in 1996; Defer Compensation - if you can, negotiate with your employer to defer compensation (e.g. year end bonus) until January. Usually, your employer will not lose its deduction for 1995 if the amount is determined before the year-end.

Michael Peterson, CPA; St. Clair Shores (810) 774-7990
Things to remember:
· Keep good records - if your return is examined, it probably will not occur for at least a year or two.
· To take a deduction, you must spend the money in 1995 - and you can take advantage of Michigan tax credits to public institutions, homeless shelters and food banks.
· For future purposes, keep a record of home improvement costs.
· If you are self-employed: the health insurance deduction is back!

Timothy Strubbe, CPA; Harrison Twp (810) 468-1950
If you already have a capital gain in 1995, and you are planning on selling stocks or investments at a loss in 1996, consider selling before the year ends to offset the 1995 gain. If you are self employed, if practical open a Keogh Retirement Account by Dec. 31. Funding of the account must be done by the time you file your 1995 return. For all businesses considering fixed asset purchases, make them by the end of the fiscal year.

Naturally, there is much more involved to each of these ideas, and the 'billions' of other ideas the CPAs have. For professional advice, call any of them, and tell them you heard about it in The Gavel.

Kids Ask the Darnedest things.
I was recently a 'guest' speaker for my daughter's third grade class after they had made a field trip to the local District Court. As this was right on the heels of the O.J. verdict, Some of the kid's questions were interesting:

• "Is it true that the jury on O.J. got paid $18 million?"
• "So, like, say one guy kills another guy, and then another guy kills him; how many of those guys will go to jail?"
• "How come when you're in jail for eight years, you only get to have hard bread and water?"
• "If I see one guy kill somebody, and I tell the police, and I am a witness at the trial, and the guy is guilty and goes to jail; How much money do I get?"
• "If an animal eats somebody up and kills him, but another guy lies and says that somebody else killed him, will he go to jail?"
• "If I steal something from a museum, and I bury it in my backyard and nobody ever knows about it, will I go to jail?"

REFERRALS
If you have been pleased with the service and professionalism you have received from our office, it would be greatly appreciated if you passed the good word along. Referrals are always appreciated and encouraged, and we look forward to the opportunity of being of service to your associates and friends. If we can not immediately service their needs, we will be happy to refer them to the appropriate attorney specializing in their specific area of need.
However, if you have not been pleased, contact us directly!

David B. Forest, JD, MBA
Attorney and Counselor at Law