Hertz Schram PC
Oakland County 248-494-4486
Detroit 313-757-4724
Toll-free 866-775-5987

Hertz Schram PC Legal Blog

To Disclose or Not Disclose to Your Investor?

This blog is a part of the "Cleaning House" series on preparing your business for fundraising. See the first article on How to Prepare Your Business for Funding, and our second article on Cleaning House: An Audit for Your Business.


Whether looking for funding, trying to locate an investor or even selling a business outright, one of the most critical questions to consider is whether to disclose an issue. These are questions to ask pre-funding. Generally, when in doubt, disclose. Ask, "is this something I would want to know if I was investing?" This process will help the entrepreneur think like an investor rather than like a business owner/developer. Think like an Investor. Would you invest? If not, why not? Make changes accordingly.

Cleaning House: An Audit for Funding Your Business

This blog is a part of the "Cleaning House" series on preparing your business for fundraising.


While preparing to raise funding for your business and prepping your business plan, pre-funding is a good time to undertake a complete audit and review of all of the company's organizational and business documents to make sure that all of the necessary agreements are in place and to determine what rights and obligations may need to be disclosed, amended or even eliminated. Here's a list of what you should audit as you prepare your business.

Getting Ready for Funding Your Business

This blog is a part of the "Cleaning House" series on preparing your business for fundraising. Follow our blog and Hertz Schram on Facebook and Twitter to stay up to date.


No start-up business can survive very long without capital. Most new businesses fail because they are undercapitalized. It is very common to raise money among close friends and family and then, once these avenues are exhausted, to seek funding from others. But before doing so it is very important to make sure that the business is in a position to make efficient and effective use of the additional capital and, more importantly, to make sure that a third party potential investor(s) believes it, all while making complete and accurate material disclosures.

"MOST WORKERS ARE EMPLOYEES" UNDER THE FAIR LABOR STANDARDS ACT

On July 15, 2015, the Administrator for the Department of Labor ("DOL"), issued the "Administrator's Interpretation No. 2015-1" (hereafter "Interpretation") regarding "The Application of the Fair Labor Standards Act's 'Suffer or Permit' Standard in the Identification of Employees Who Are Misclassified as Independent Contractors." The Interpretation provides an overview of the problem of businesses' misclassification of workers as independent contractors1 instead of employees.

Utility Companies May Install "Smart Meters" on Customer Property Without Permission

Last week's Michigan Court of Appeals decision in Stenman v. Stenman, Docket Number 321203, provides a cautionary tale: You do not always have absolute control over your own property. In Stenman, the court recognized the broad authority of a public utility company, the Detroit Edison Company ("DTE"), to install and maintain meters on their customers' property without tampering from the customer.

Can a Court Hold Non-Party Children in Civil Contempt?

I believe it would be beneficial to shed some additional light, not that there isn't enough attention on this case already, as to how we arrived at today's juncture.

Dr. Tsimhoni sought counsel from attorney Lisa Stern on a very sensitive matter concerning her children. In most family law matters, the essence of our practice revolves around the best interests of children, and unlike other areas of law, family law issues seldom fit into a "black letter of law" scenario as the Tsimhoni case clearly demonstrates.

It is my belief that the focus of what Ms. Stern is trying to accomplish has been lost in the recent media frenzie. And while it may not appear that way, I believe that Ms. Stern and the Honorable Lisa Gorcyca have the same goal: to accomplish what is best for the children. Both are doing their jobs, and both in my opinion, are truly fine professionals.

Hertz Schram PC Obtains $6.25 Million Settlement for Largest Inland Oil Spill Case

In July of 2010, an oil pipeline operated by Enbridge LP and related companies (Enbridge) ruptured, spilling almost 1 million gallons of crude oil into Talmadge Creek and the Kalamazoo River. The spill is the largest inland oil release in the history of the United States. Almost 10,000 properties were impacted by this massive oil spill.

Lawyers Join Detroit's Rising Tide of Entrepreneurial Energy

Recently, I've read a few articles about how entrepreneurship is losing its cachet among millenials. Really? I guess the authors of these articles have missed a real "boots on the ground" story in Detroit. I can attest that the entrepreneurial spirit is alive and well and even expanding into the practice of law.

Supreme Court Decision Legalizing Same Sex Marriage Has Critical Impact on Michigan Workers and Employers

On June 26, 2015, the United States Supreme Court issued its 5-4 decision in Obergefell et al. V. Hodges, Director, Ohio Department of Health, et al. pertaining to 14 same sex couples and two male same sex partners, now deceased, who challenged the constitutionality of the state laws of, Michigan, Kentucky, Ohio and Tennessee. The Supreme Court held that the 14th Amendment to the United States Constitution requires a State to license a marriage between two people of the same sex. The Court also held that the 14th Amendment requires a State to recognize a marriage between two people of the same sex when that marriage was lawfully licensed and performed out-of-state.

A Dangerous Twist: Beware of Injuries Caused by Chiropractic Manipulation

A study released earlier this year by physicians at Baylor University Medical Center highlighted the risk of injury to vertebral arteries from chiropractic manipulation of the neck. The damage to the blood vessels can lead to disastrous strokes and death. This danger has been reported repeatedly in recent years by the medical profession as a means to alert both physicians and patients to the dangerous hazards frequently associated with this type of chiropractic treatment.