A proposed law in the U.S. Virgin Islands legislature related to roadside signage may have a significant impact on local businesses if adopted by the 30th Legislature.

billboardCurrently, the yearly cost for posting business signs and roadside billboards is $10 per year, but the new law could increase that amount to $200. More specifically, the proposed permit fee would increase to $100 paid every six months instead of the current $10 annual payment. In all, this would represent the first increase since 1968.

The Legislature is considering this action as it would raise some much-needed revenue for the government of the U.S. Virgin Islands. It would also reduce the number of roadside advertisements, which some have complained take away from the natural beauty of our islands.

There are many local businesses that would be impacted by increased fees, however, and critics argue that it would jeopardize business owners’ ability to draw in customers. Given the current sluggish economy, it could also prevent some companies from being able to afford the higher fees, thereby greatly reducing their ability to market themselves — especially to tourists unfamiliar with local businesses. A $10 per year fee raised to $200 is a substantial increase, and one that’s likely to impact smaller businesses more than large ones.

To be sure, larger businesses can afford to pay more for marketing and tend to have a diverse strategy for advertising themselves. Smaller businesses, on the other hand, may not be able to find it in their meager marketing budgets to pay the signage fees. This, in turn, would impact their ability to attract new customers and potentially put them at risk of going out of business. Proponents of the measure claim it will help clean up the area from cluttered advertisements, but the side effect could be undue hardships on local companies.

If you own a small business in the U.S. Virgin Islands, this proposed law may impact you, and it is important to pay attention to what’s happening in our Legislature — whether you’re for or against it. For further guidance on this and other issues, speak with an experienced business law attorney.

BoltNagi is a widely respected and well-established business and corporate law firm serving clients throughout the U.S. Virgin Islands. 

The implementation of the Affordable Care Act (ACA) continues to move forward rapidly, with 7.1 million people signing up by April 1, 2014 through the exchanges created through the law. This is happening despite the fact that certain elements of the ACA lack a degree of clarity, especially related to how the law will affect American territories like the U.S. Virgin Islands, Puerto Rico, Guam and the Northern Mariana Islands.

One issue of note is the appearance that the ACA treats territories differently and unequally, putting governments such as the U.S. Virgin Islands in a difficult situation when it comes to dealing with large numbers of uninsured residents.

While some critics have argued that the only certainty is that territories are not able to participate in federal exchanges, the reality is that the ACA bill does address territories specifically. The two pages dedicated to the territories effectively state that they have one of two options: implement their own exchange or boost overall funding for Medicaid. While this has little effect in Puerto Rico, which has relatively low rates of uninsured people, it directly impacts the U.S. Virgin Islands and other insular territories.

The U.S. Virgin Islands has a higher rate of uninsured than the average in the United States. In response to the vague language within the ACA bill, the Governor of the Virgin Islands, John P. de Jongh, has created a task force to determine the costs associated with creating an exchange. The task force concluded that it would cost $251 million to implement and subsidize an exchange for five years, something many critics consider an impossible option. Medicaid funding also would not address the overall uninsured rate, so the second option seems unrealistic to many, as well.

The ambiguity of the text concerning the territories and the ACA also leaves much of the implementation up to the U.S. Department of Health and Human Services. Representatives from the U.S. Virgin Islands are attempting to work with the federal agency to determine a suitable solution to this problem. And with some critics saying that residents of the Virgin Islands are being treated as “second-class citizens,” there’s a lot riding on these efforts.

It’s important for residents throughout the U.S. Virgin Islands to remain updated on progress with the ACA related to our territory. If you have more detailed questions, consider working with an experienced attorney for guidance.

BoltNagi is a well-established and respected government relations law firm serving clients throughout the U.S. Virgin Islands. 

Recently, one of our firm’s clients inquired as to our protecting their intellectual property, and BoltNagi submitted to an in-depth technology audit. Large companies like Google, Microsoft and Apple use considerable resources to protect their intellectual property. An organization of any size, however, can suffer due to intellectual property theft, and small businesses in particular are more vulnerable than well-established companies, as they tend to have more at stake when it comes to new ideas and future projects. Thus, if key intellectual property is stolen, a business could have inadequate resources to defend itself or even lack the ability to continue operations.

For this reason, small businesses need to protect anything that can legally be classified as intellectual property. There are a number of strategies that help you do this, often simply requiring a little knowledge, consultation and creativity.

Learn the basics

Begin with educating yourself and your team on the concepts of trademarks, copyrights, patents and trade secrets. You may search the web for credible articles or read books on these subjects, as well as attend professional seminars or course that deal with these complex issues.

To further your knowledge and receive guidance on how to approach intellectual property protection, consult an attorney with experience in this area. Although this may require some investment from your business, it will be well worth it to ensure your ideas and trade secrets remain protected well into the future.

Take action

Once you have educated yourself and spoken with a business lawyer, immediately begin work on patenting anything that is important to you — or that may be important to a competitor. The quicker you file the better, as patents can take up to five years to complete. Don’t worry if the idea is not fully developed, as you can expand on the initial ideas in your patent for up to a year. Also keep in mind that an American patent protects you in the United States and its territories, but not internationally, so spend some time researching international patents as well.

In addition, work with your attorney to develop a sound non-disclosure agreement for your employees and business partners to sign. Finally, conduct an audit of your company’s intellectual property to help determine your registered and unregistered trademarks and copyrights. Understanding everything you legally own and do not own is critical to protecting yourself from theft.

Remember, the risks are too great to avoid protecting yourself right away, so for the future of your company and its employees, get started developing a plan to secure your intellectual property.

BoltNagi is a widely respected and established corporate and business law firm serving individuals and businesses throughout the U.S. Virgin Islands.   

A key provision of the federal Agricultural Act of 2014 (known commonly as the farm bill), recently signed into law by President Barack Obama, may soon make cockfighting illegal in the U.S. Virgin Islands, Puerto Rico and Guam.

mnwelldir/Creative Commons

Currently, the laws related to cockfighting in U.S. territories are ambiguous. An entertainment tax is placed on cockfighting in the U.S. Virgin Islands if tickets are sold, effectively making the sport legal. The new farm bill, which does not directly address cockfights but instead makes it illegal to attend them, may void some legal precedents that had allowed cockfighting in our territory.

The provision was most likely inserted into the farm bill to give further legal backing to states in which cockfights are illegal. In effect, however, it could mean that in insular territories such as the U.S. Virgin Islands, which has a long tradition of the sport, attending such an event could be punishable by law. According to the bill, attending a cockfight is punishable by up to one year in jail and a $100,000 fine. Bringing a minor under the age of 16 to a cockfight is punishable by up to three years in jail and a $250,000 fine.

Advocates of these measures — including animal right groups like the Humane Society of the United States — argue that cockfighting is immoral and cruel to the animals involved. Defenders of this tradition, on the other hand, view it as a sport comparable to many others, such as boxing, and wish to defend a cherished local tradition and pastime.

The future of cockfighting in the U.S. Virgin Islands remains uncertain given the ambiguity of the farm bill, especially in terms of whether or not the law will be enforced in American territories. The U.S. Department of Justice has not yet offered much guidance on this matter and will most likely approach it case by case, even though representatives of the territories have raised questions regarding the change in the law. The U.S. Attorney’s office has also declined to comment thus far.

Considering this lack of legal guidance, the legality of cockfighting will likely be settled in courts on a case-by-case basis. Defenders of this local tradition and animal right advocates alike are eagerly waiting for this legal matter to be sorted out.

BoltNagi is a widely respected and well-established civil litigation law firm serving clients throughout the U.S. Virgin Islands. 

In some cases that would otherwise go before a jury, legal counsel instead recommends requesting a bench trial, in which the judge makes the final ruling. This typically occurs when either the plaintiffs or defendants do not believe they will otherwise receive a fair trial. To make this request, they must officially waive their right to a jury trial with the court.

There are limits to doing this, however, as was illustrated by a recent ruling from the Superior Court of the Virgin Islands. In the People of the Virgin Islands v. Velasquez(Case No. SX-2012-cr-063), the defendants requested a bench trial after arguing that too many of the prospective jurors had expressed bias that would prevent them from receiving a fair trial.

In a February opinion, the Superior Court denied the defendants’ waiver of their right to a jury trial on the grounds that the prosecution did not agree to it. In other words, both sides must consent before a bench trial is warranted.

Although this example is from a criminal case, bench trials can play a role in civil matters, as well. If both parties in a case agree to it, they can forego bringing in a jury and allow the judge to conduct all fact finding and issue the verdict afterward.

Let’s say you’re involved in a case in which an employee accuses your company of discrimination in the workplace. If both sides in the case agree to a bench trial, the judge would be responsible for establishing the legal standards for what constitutes workplace discrimination, and then make a decision based on the arguments both parties make.

In other situations, you may not have a choice between a jury or bench trial. This includes cases involving injunctions, in which one party seeks court action to stop an individual or organization from engaging in certain activities. Generally, if the plaintiff is not pursuing monetary damages, there will likely be a bench trial.

As with many legal issues, there is a lot of middle ground, and whether you wish to seek a jury trial or bench trial may depend on the circumstances of your specific case. If you have questions about this issue, be sure to consult a knowledgeable civil litigation attorney.

BoltNagi is a respected and well-established civil litigation law firm serving clients throughout the U.S. Virgin Islands.

One of the biggest milestones for any start-up or small business in the U.S. Virgin Islands is hiring your first employee. This can be more difficult than some business owners initially think, and there are a number of legal requirements you need to keep in mind as you engage in this process.

Before extending an offer of employment to an individual, your company must complete the following:

1. Obtain an Employer Identification Number (EIN): This is the first step in gaining legal employment abilities. To receive an EIN, you must fill out an SS-4 form and submit it to the U.S. Internal Revenue Service. The form is available for download on the official IRS website, at www.irs.gov.

2. Set up a payroll system to withhold taxes: A key requirement in the employment process is making sure that territorial, federal and other applicable taxes are deducted from an employee’s paycheck. The information to correctly calculate tax deductions for each employee can be obtained through a W-4 or a W-2 form. These forms indicate the marital status, number of dependents and various other factors that affect the amount of taxes that should be taken from each paycheck.

3. Verify employee’s eligibility: One of the most basic steps in gaining an employee is determining whether or not that individual is legally eligible for employment at your company. This can be achieved by having the potential new hire fill out an I-9 form from the USCIS.

4. Obtain worker’s compensation insurance: In the case that your new hire becomes injured on the job, it is necessary to have a worker’s compensation insurance policy. This will allow for an employee to receive medical treatment and applicable recovery time from an injury without losing wages. In the U.S. Virgin Islands, organizations with one or more employees must carry this insurance coverage, regardless of wages. The Virgin Islands Department of Labor oversees the Worker’s Compensation program and more information is available at their website.

5. Keep your employee informed: To ensure employees are meeting all of your expectations, it is necessary to create an employee handbook to guide and inform their decisions in the workplace. Additionally, you must post notices outlining worker’s rights under U.S. Department of Labor rules and regulations.

6. Register with the U.S. Virgin Islands New Hire Reporting Program: Within 20 days of adding a new employee to your payroll, you must register that employment with the U.S. Virgin Islands government. This information may be used to determine if your employee owes child support or other obligations upon becoming employed.  Further information is available from the Virgin Islands Department of Labor.

Following these steps will help ensure you are meeting all of the legal requirements for brining on a new employee. However, some requirements vary depending on your type of business, so if you have any questions, speak with an employment law attorney right away.

BoltNagi is a respected and well-established employment law firm serving clients throughout the U.S. Virgin Islands.

In a recent ruling, the Superior Court of the U.S. Virgin Islands ruled against a motion filed by the plaintiffs claiming that a local government agency was guilty of contempt of court.

(Flickr Creative Commons)

The case, Wilma Marsh Monsanto v. St. Thomas-St. John Board of Elections, involved several local candidates for elected positions, who originally sued the Board of Elections in May 2013 for failing to allow them to review a number of election-related documents. After the defendants failed to respond to the complaints, the court entered defaults against the defendants, including the Board, in November, 2013.

What happened after that is the basis for the most recent motion for contempt of court. The Board of Elections did allow the plaintiffs and a panel of citizen reviewers to read through and copy some documents, but the group was not able to review them all by the December 20 deadline.

The defendants argued that all of the documents were made available, thus meeting the court’s requirements, while the plaintiffs said that they were not provided enough access during that timeframe. The plaintiffs then filed a motion to hold the St. Thomas-St. John Board of Elections in contempt of court for failing to provide the temporary injunctive relief originally ordered by the court.

Complicating the matter is that the court, in its written order, stated that the defendants “may” be held in contempt for failing to provide the necessary documents, while its oral statement said they “will” be held in contempt for such actions. Ultimately, the Superior Court of the Virgin Islands denied the plaintiffs’ motion on the grounds that they did not provide sufficient evidence that contempt of court had actually taken place.

This case, and specifically the most recent motion, illustrates the high threshold that the Superior Court and other courts in the U.S. Virgin Islands have set for what’s considered contempt of court. To prove this, you must show clear and convincing evidence that contempt has taken place and any reflection of doubt is likely to result in a denial of a motion, as evident in the court’s decision in the Monsanto case.

BoltNagi is a widely respected and established law firm serving clients throughout the U.S. Virgin Islands.

Starting a business can be complicated enough without having to deal with making unnecessary legal mistakes in the process. If you’re considering starting a business in the U.S. Virgin Islands, it’s important to be informed of the most common legal problems to avoid. By taking the following tips into consideration, you can make this process go much more smoothly.

Source: Mish Sukharev / Flickr Creative Commons

Establish a co-founder agreement

One of the first steps to take when forming a business in the Virgin Islands is to make sure you’ve created an official agreement between all of the founders. If you don’t create an agreement, you may be signing yourself up for an expensive lawsuit later on after the company has achieved financial success.

An effective agreement should identify the company’s founders, along with their roles and responsibilities, how much of the company each founder possesses and what will happen in the event that a founder passes away or leaves the company. It should also cover how ownership interests vest over time, how contributions should be made and how major decisions will be handled.

Form a limited liability entity

Running a business means automatically subjecting the owners to liability. Anything that goes wrong — a customer injury, employee discrimination or being unable to repay a debt, for instance — can leave you liable for paying back damages. If you place limits on your liability by choosing to form either a corporation or a limited liability company, all personal assets will be protected if the company loses money through bankruptcy or litigation. While you may still lose your initial investment, you can avoid losing any personal assets.

Safeguard your intellectual property

Intellectual property is one of a company’s most important assets, and if it is not protected, you run the risk of allowing your competitors to steal this property with no legal consequences. Your company’s ideas, name, logo, products and processes should be protected through patents, trademarks, copyrights, non-disclosure agreements (NDAs) and invention assignments.

Use the correct employment procedures

This is a common pitfall for new businesses. Before hiring any employees, make sure you understand the ins and outs of employment procedures including the Virgin Islands “Wrongful Termination Act”. Know the difference between an employee and a contractor, for example, and how tax withholdings and stock issuances work. It’s a good idea to work with a tax attorney or CPA during these steps. It’s best to tackle these issues early on, while the company is still small and problems can resolved somewhat quickly.

Consult a business lawyer

Although you may not want to make the investment to hire an attorney during the start-up process, the reality is that this is one of the most crucial times for your business to have sound legal guidance. By working with a business attorney to help you deal with all of your issues and questions at the beginning of the formation process, you’ll end up saving your company money by avoiding mistakes that could result in expensive legal matters down the road.

BoltNagi is a widely respected and established corporate and business law firm serving clients throughout the U.S. Virgin Islands.

Purchasing a commercial property can be a great investment, with the potential to earn you a sustained income now and in the years ahead. However, there are some key legal and financial issues to consider before moving ahead with your purchase. The following are four of these issues:

Courtesy Flickr Creative Commons user Bohman

1. Determining the property’s value

First and foremost, you want to know how much the property is truly worth in terms of both its current and potential value. Location is undoubtedly the most important component to this, although the potential to earn income and the overall condition of the property are also critical. Make sure you know as much as possible about the the property’s value before moving forward with a transaction.

2. Reviewing the title and survey

When considering the purchase of a commercial property, you need to be sure that the title does not include exceptions that could impact how you use the property, such as easements or conditions that allow other individuals or organizations to have access to it. A real estate attorney will review the title and survey, giving you the information you need to determine if there are any exceptions present in the title.

3.  Dealing with existing tenants

If the property you are thinking about purchasing already has commercial tenants, you need to decide if you want to become a landlord. In the U.S. Virgin Islands, you must respect the terms of the original lease with all existing tenants. You will not be able to cancel or early terminate the leases without good cause, and you would be responsible for all of the duties of the landlord as stipulated in the leases. This may include options allowing your tenants to renew their leases after their terms are up.

An attorney can help you examine existing leases and determine your obligations under them. This includes reviewing lease conditions, security deposits, existing claims and contributions required of the landlord.

4. Navigating land use issues

In some situations, you may wish to purchase property in order to renovate or convert it at a later date. Before you do, you need to be sure that the various government agencies with oversight for development such as the Department of Planning and Natural Resources, Permit, Comprehensive Planning, and Coastal Zone Management Divisions as well as the Historic Preservation Commissions will approve such actions. Your purchase agreement should include a land use approvals contingency so that you can get the approvals you need, terminating the agreement if you cannot obtain them.

Although these are four of the primary issues you’ll need to consider when purchasing commercial property in the U.S. Virgin Islands, there are a myriad of other matters that may come up during these types of transactions. It’s always helpful to work with a skilled real estate lawyer to guide you through the process.

BoltNagi is a widely respected and established real estate law firm serving individuals and businesses throughout the U.S. Virgin Islands.

Wrongful death claims are inherently complex for both sides, and in many situations it takes a jury trial to determine fault and if an employer or insurance company needs to provide compensation to the victim’s family. However, in some situations, the facts of the case are fairly clear-cut, allowing for what’s called a “summary judgment.” A recent case before the Superior Court of the Virgin Islands illustrates how this process works.

The case, Bertrand v. Cordiner Enterprises, involved a wrongful death claim after a large, 800-pound marble slab crushed a worker while he was unloading it from a shipping container in April 2008. The worker died several days after the accident.

Soon after, the administrator of the deceased’s estate filed a wrongful death lawsuit against Cordiner Enterprises, as well the Abaco, manufacturer of the lifting clamp, and Mystic Granite & Marble, the organization that initially loaded the container.

The plaintiff argued that Mystic was negligent in its loading of the container, and that the Abaco Lifter 50 Professional Series clamp used to unload the slabs was flawed. In addition, the lawsuit alleged that Michael Cordiner was negligent in his operation of the crane that loaded the container.

After both sides presented initial arguments and evidence, Mystic made a motion for summary judgment, in which at least one party asks the court to expeditiously dismiss the case before going to trial. The plaintiff objected to the motion, but the court ruled in favor of both Mystic and Abaco on the issue. It did so due to a lack of “material fact,” which is any evidence whose existence or non-existence impacts the outcome of a case. In making this ruling, the Superior Court agreed with the defendants that there were no genuine issues of material fact that would prevent a summary judgment in the suit.

In other words, it was apparent that there was no clear evidence that Mystic was at fault for the worker’s death. Additionally, it did not appear that Abaco’s clamp was the reason for the accident, but rather the worker’s own handling of the clamp.

Every personal injury or wrongful death case is different, but it’s important to know that in some situations, it may be possible to have a case dismissed quickly through a summary judgment — especially when there is a lack of evidence on the part of the plaintiff.

BoltNagi is a widely respected and established civil litigation law firm serving individuals and businesses throughout the U.S.Virgin Islands.