Are You an Employee or an Independent Contractor? The Answer May Surprise You

Are You an Employee or an Independent Contractor? The Answer May Surprise You

Do you know if you’re an employee or an independent contractor? It seems like something you should automatically know when you’re hired, but the question comes up more often than you’d think. The confusion often arises when the terms of hire or the expectations from the employer are ambiguous or *shudder* not written down. And there are real consequences to not knowing whether you’re an employee or a contractor: it can affect whether you are eligible for employee-sponsored insurance, whether your employment is temporary, and for artists, whether or not you own rights in the work you’re hired to create.

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When Is It Okay to Write a Bad Review of a Client?

If I had a dime for every time a client complained to me that a customer violated a contract, well thankfully I’d only have like 50 cents. But still, it does happen. And when it does the client sometimes asks me if it’s okay to write a bad review online. That’s when I hesitate.

Whenever possible, You should never badmouth a party in public at all… yes even one who acts in bad faith. But if you’re absolutely going to do it no matter what, you should definitely wait until you’ve recouped what you’re owed (or as much of it as you can) from them and acquired a written history of their bad faith actions. Even then I’m hesitant to advise it. I’m a big fan of killing them with kindness no matter how badly you’re treated, because if you’re ever involved in a litigation, all of your communications will come out in discovery; you don’t want a judge or jury thinking YOU’RE the asshole in this transaction.

Most people don’t write bad reviews when they’re in a good frame of mind. They’re upset - understandably so - but not necessarily thinking clearly about the long-term effects of their actions. So it’s really easy for a person who has been harmed and is mad about it to overstep and accidentally defame the offending party. And the last thing you want is to be sued for defamation when you’re the victim.

There’s a fine line between warning people of bad faith operators and defamation. Defamation is defined as a statement to at least one other party about a person designed to ruin that person’s reputation. Usually the statement must also be false, but that is not a requirement in every state. When the defamatory statement is spoken, it is called slander, when it is written or otherwise recorded, it is called libel, but no matter what form it takes, the effect is the same. 

Your intent in making the statement also matters, as well as the defamed party’s public status… if the party is a public figure (politician, celebrity, etc), for example, your statement must be made with malicious intent, while a statement against a private figure must only be made with negligence. It’s also worth noting that simple name-calling is generally not considered defamation and statements of opinion might also not be considered defamatory (depending on context, of course) since they are harder to prove.

Here are some examples:

“Don’t work with John Smith Productions. They purposely stole my idea and cut me out of the production without paying me!” This is most likely defamation if the statement is false because it asserts as fact that the production company stole your work (on purpose, no less).

“I think John Smith Productions used my copyright without asking me.” Because this is a statement of opinion, it is less likely to be considered defamatory, though it wouldn’t necessarily prevent the production company from suing you anyway, especially if the statement is untrue.

“John Smith Productions is filled with conniving thieves and John Smith is the worst of them all!” Whether or not this is factually true, because this statement is merely name calling and doesn’t allege actual wrongdoing, this would not be considered defamatory.

What I tell people who are determined to write a bad review online is this: divorce yourself as much as you can from emotion. Statements of fact that you can actually back up with evidence are best. And of course, make sure that whatever you say is TRUE. When in doubt, be kind and truthful. Just because you were treated badly doesn’t mean you have to become the bad guy too.

Superman Can Wait: My Personal Experiences With Not Getting Agreements In Writing

You know, I say "get everything in writing" so often on this blog that I feel like I should have it pre-engraved on my headstone. I may be a broken record about it, but that's only because I've had plenty of first-hand experiences where that information would've come in handy. Here's one such experience that proved so formative, it helped shape my eventual journey from film to the law.

In the summer of 2002, I was a freshly minted RISD grad working in the vault of a major post-production house in New York City. I was hoping that after a few months organizing shelves of film and tape, they would call me up to the big leagues so I could learn to be an assistant editor or color correctionist. It wasn't my dream, but it was proximate enough to my dream that I stuck it out. In late August, my friend Maureen from college called and told me about a job opportunity she knew I couldn't pass up. After graduation, Maureen moved back home to Orange County where she was picking up odd jobs in the film business. A friend of hers - who I'll call Jenny because I can't remember her actual name - had been an assistant editor on Brett Ratner's films, and because Ratner was about to direct the new Superman movie, Jenny was slated to work on it. According to Maureen, Jenny could get me a job as a production assistant on the film, but I had to get my ass to L.A. pronto, since production was ramping up. This meant leaving my steady job and steady girlfriend (who eventually forgave me for moving 3000 miles away and married me) and taking a hell of a risk. Other than Maureen, I didn't know anyone in California. I had no money, no connections, nowhere to stay. I was going out on a limb, and trusting to fate, God, the universe, whatever, that it wouldn't snap beneath me.

With Maureen's help, I called Jenny who put me in touch with the production company. The woman I spoke to there was very encouraging and though she couldn't guarantee I'd be hired, she assured me that once I got to Los Angeles, I could come in for a proper interview and, most likely, get myself a set PA job. A month later, I was in the City of Angels, ready to make my dream come true.

"A job as a production assistant?" you might ask. "That was your dream?" Well, yes. Certainly I had no illusions about where a PA's job was on the totem pole. I knew the majority of my job would be making coffee runs to the nearest Starbucks. But this was a chance to work on a Superman film. SUPERMAN! For those who don't know me, Superman is my jam, particularly Christopher Reeve's iteration. Not enough to name my kid Kal-El or anything, but growing up, he meant a lot to me. He represented the ideal of heroism and goodness in a world that seemed continually bereft of both. He was what I wanted to be. It didn't matter that the script Ratner was working from (written by J.J. Abrams) had leaked online and been universally lambasted. It didn't matter that Ratner had only one good film under his belt and was widely considered a hack. It only mattered that it was Superman and I would be on the same set as him. How could this not all work out?

Oh my friends, how I'd love to tell you the gambit paid off. And if life were more like a movie, it would have. But within weeks of landing in L.A., Ratner was off the project and it reentered development hell. And all of a sudden, I had to make a life for myself in a strange place with no resources. You could say I acted recklessly, that I was dumb. And you'd be right to say that. A smarter man might have waited for an official job offer from Warner Bros, something in writing that I could hold in my hand on that plane ride across the country. But I was young and ambitious and excited to get started before there was even something to get started on. I upended my life without a guarantee of employment, only the vague promise of it.

But do you know how many artists do the very same thing? Sure, most don't move across the country for it, but it's so common for artists to get excited and start working on something before the deal is written down that it can take up anywhere from 50% to 75% of my law practice. So when I tell you to get everything in writing, I say it not just because it's smart business, not just because I see my clients going through it, but because I've lived it and know what can happen if you don't. Getting all your deals in writing protects your interests and holds everyone accountable. It should be an invaluable tool in your arsenal. So learn from my mistakes. If the job is important enough, it can wait until everything is written down. 

Making The Injured Party Whole Again: Punitive Damages in John Wick 2

[Warning: Major spoilers for John Wick: Chapter 2 ahead. Don’t read unless you’ve seen the movie or don’t care about being spoiled.]

At the end of John Wick: Chapter 2, the eponymous hero (Keanu Reeves) strolls into The Continental, the posh assassins-only hotel in downtown Manhattan, points a gun at bad guy Santino D’Antonio (Riccardo Scamarcio) and blows his head off despite the protestations of Winston (Ian McShane), the hotel’s proprietor. This is a violation of the most sacred rule in the underworld: The Continental is safe ground. No assassin may kill another on the premises without paying the ultimate price, a penalty we saw play out at the end of the first film. A severe punishment for the breach of a severe covenant. 

Soon after, Winston summons John to Central Park to mete out the same sentence. John is informed that he is "excommunicado," that he can no longer seek refuge at any Continental hotel, and a $14 million contract has been put on his life. Every professional killer in the world will now be looking for him. Out of respect, John is granted a one hour head start to run. But before leaving, John issues this chilling ultimatum:

"You tell them, whoever comes, I'll kill them. I'll kill them all."

Oh man, it’s so good I just got goosebumps typing that. If this film is any indication, John Wick: Chapter 3 promises to be a highly entertaining bloodbath.

Anyway, while the whole mishegas was playing, I was thinking about contract damages and whether John’s actions, bad as they were, deserved such serious punishment. I know it’s silly to presume traditional contract principles apply in an underworld populated by killers and other bad men, but the Wickverse is steeped in rules and formality and the films go to great lengths to showcase that. Everything is intricately choreographed. The system is built on profound order and relies on respect for that order. It doesn’t matter if you’re a lowly factotum or the famed Baba Yaga, the system comes before the man and everyone must pay what they owe. The contracts may not be written on paper, but they exist, and participation in this world requires that everyone meet their contractual obligation - we can call this one the Implied Covenant of Assassination Forbearance.

So humor me for a bit. John agreed to the rules of The Continental, then blatantly flouted them to exact his revenge on Santino. A kill order is placed on his life in order to appease the system. Is that bounty fair? It’s an important question to ask because fairness is at the heart of calculating damages in contract or tort law. How do we make the injured party whole again? How do we make it so that the injuries they sustain are offset as much as possible?

It can be done monetarily, of course. That’s the way we usually resolve contract disputes in the U.S. Compensatory Damages are financial in nature, the most common of which is what lawyers call Expectation Damages: the damages that are intended to cover what the injured party expected to receive from the contract. 

There are other types of monetary damages too. Consequential Damages, which are paid to the injured party for indirect damages other than contractual loss; Liquidation Damages, which is when the contract states that the breaching party will be liable for a specific amount of money; Nominal Damages, which are awarded when the injured plaintiff doesn't incur a monetary loss but the judge wants to show the winning party was in the right; and Restitution, which is an equitable remedy designed to prevent the breaching party from being unjustly enriched.

In this movie though, the damages aren’t monetary. While money - paid in the form of gold coins - is important to many operators in the Wickverse, to those in power, it's less important than honoring the system (the entire plot hinges on the importance of a blood oath John made). Instead, the damages to be paid = John’s death. But John’s death isn’t just about making The Continental whole again. It’s to send a message. John didn’t just kill some random person, after all; Santino was a member of the shadowy High Table, a cabal of crime lords alluded to throughout the film, but never seen. The High Table presides over the entire Wickverse, and everyone works for or with them to some degree. So the price on John’s head is also about removing a level of chaos that John has introduced into the system. To the powers that be, he must be punished severely enough that it deters future assassins from making the same choices. $14 million and every killer in the world gunning for you sounds like a pretty major deterrent. And to me that sounds an awful lot like Punitive Damages.

According to the New York State Court of Appeals, Punitive Damages are:

“available only in those limited circumstances where it is necessary to deter defendant and others like it from engaging in conduct that may be characterized as ‘gross’ and ‘morally reprehensible,’ and of ‘such wanton dishonesty as to imply a criminal indifference to civil obligations.’”

Punitive Damages come into play when Compensatory Damages aren't enough to make the injured party whole. They're also generally unavailable for contract disputes, but can be applied in contract situations where there’s an overlapping tort claim. So are there any tort claims that can piggyback onto the breach of contract claims The Continental and The High Table might have against John that could result in Punitive Damages? It’s a stretch, but I think there might be.

For The Continental, I would say their best tort claim against John would be Intentional Interference with a Prospective Economic Advantage. And while the elements of that claim differ by state, they generally are:

  1. An economic relationship existing between the plaintiff and a third party containing the probability of future economic benefit to the plaintiff,

  2. Knowledge by the defendant of the existence of the relationship, 

  3. An intentional act on the part of the defendant designed to disrupt the relationship,

  4. Actual disruption of the relationship, and

  5. Damages to the plaintiff caused by the acts of the defendant.

While proving all these elements isn’t a slam-dunk, I think a good lawyer could make them work. John knew that The Continental was a safe haven for professional killers, traveling there throughout both films to derive its benefits and utilize its unique services (the Sommelier and Tailor sequences in the second film are incredible). John also demonstrates previously existing relationships with various hotel staffers, including friendly bonds with the managers of both the New York and Rome branches. John is also plainly aware that many other assassins use the hotel for the same reason he does: for peace of mind that they won’t get whacked while on the job, as he makes several allusions to this throughout the two films. In fact, in the first film, after he’s attacked in his room by Ms. Perkins, John is able to subdue her and instead of killing her, he asks a fellow assassin named Harry to watch her, then report her to the manager. This is all to say that John clearly knows the hotel derives an economic benefit between itself and its specific customer base. This takes care of the first two elements. 

The third element is John’s execution of Santino on Continental grounds, even as Winston tells him in the moment not to do it and what the repercussions would be if he did. The fourth and fifth elements are a bit harder to prove within the text of the film, since we don’t know if The Continental’s business suffers as a result of John’s actions. However, I think a reasonable argument can be made that business may be jeopardized. The whole benefit to staying at The Continental is that you can’t be killed there. It’s a safe place for everyone regardless of your criminal affiliation. If customers don’t feel safe there, they won’t use the hotel. If they don’t use the hotel, the hotel will lose money and cease to operate. You’d need some documentation to prove that assassins are now staying away from the hotel, but I think you could get there.

Because we've never seen The High Table and don't know the extent or type of its business, it's harder to say what economic harms they can pin on John Wick. I do think they could also benefit from an intentional interference claim though. What little we know of the group indicates that membership is incredibly coveted, and that each member controls certain geographic areas. The unexpected death of a member could result in lost profits from the various rackets they operate. 

Look, obviously no one is taking John to court (though it wouldn't surprise me if an underworld judicial system pops up in the sequel), so I appreciate you humoring me on this little journey. I'm always looking for the legal footholds to latch onto, even if it's not really applicable. That said, everyone in the Wickverse operates out of a certain sense of justice that isn’t wholly divorced from our own. The High Table and The Continental owners certainly feel that having John Wick killed for his transgression is the right thing to do. A fair thing to do. That's what will make them whole again. And if the punishment is harsh, well it's deservingly so. John, on the other hand, has very different ideas about what's fair. And when those two concepts of fairness go head to head in the sequel, I imagine it'll be a bloody good time.

How To Keep Your Contracts Brief

When was the last time you read a contract all the way through? Go on, take a few minutes and really think about it. I bet for most of you, the answer is somewhere between “a long time ago” and “never,” even for those of you who deal with contracts regularly. And you know what? I don’t blame you because most contracts are too long. Nearly every contract I've seen in the last few years has suffered from this problem - page after page of dense legal text. And the result of these overlong legal documents is that people don't read them and fully understand the transaction they're involved in. I know this because many of my clients admit it to me. 

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Is Working For Exposure Ever Worth It?

If an employer offers something intangible, unquantifiable, or that he may have no control over, he’s not really offering anything. In essence, he’s creating a one-sided contract where you do all the work and receive none of the benefit. That’s called an “illusory promise” and it makes the contract unenforceable. Exposure in particular is illusory because there's no guarantee that you’ll actually get it (i.e. that anyone will actually see your work) or that the employer must do anything to ensure your work is seen by others. Ultimately, the problem with an offer of exposure is that you end up pinning your hopes on a promise the employer may not be able or willing to fulfill. 

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Is The Roommate Agreement In The Big Bang Theory Valid?

The Big Bang Theory gets a lot of hate and I have to confess I don’t really understand why. Sure it’s no Mad Men (what is?), and it relies too frequently on dumb blonde and fat jokes, but I just can’t muster a strong feeling about it either way. My wife and I used to watch, mostly in syndication, but I just couldn’t get enough of a foothold to stick with it. Despite my ambivalence to the show, one thing has nagged at me for several years. So in honor of TBBT’s return tonight for its ninth season, I’d like to discuss whether Sheldon and Leonard’s roommate agreement is legally valid.

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Merger Clauses And You

Unless you’re a witch (you’re not), your contracts don’t manifest fully formed out of thin air. They're the product of a negotiation, and whether long or short, the process will consist of you and the other party generating ideas about what the deal will look like. Sometimes during the negotiation, one of you may make a promise that for whatever reason doesn’t end up in the final written agreement. But when the other party assumes it’s still part of the deal, that’s when things can get FUBAR.

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Writing Contracts: Yes, Emails Are Okay (To A Degree)

Writing Contracts: Yes, Emails Are Okay (To A Degree)

When it comes to writing contracts, there’s always a tension between best practices and doing what’s minimally acceptable to keep your ass covered. If it were up to me, every client would use detailed written agreements for every transaction with every one of their clients. But I’m not an unreasonable person; I know firsthand the pressures of small business ownership (being one myself). I understand that level of diligence can be hard to maintain, especially at the beginning when you’re still figuring out how to put dinner on the table for your loved ones.

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Get All Your Contracts in Writing, Especially With Friends and Family

Get All Your Contracts in Writing, Especially With Friends and Family

Most of the time, you’re not going to be screwed over in a massive, purposeful, stinging betrayal. It’ll be entirely by accident, with each little problem manifesting slowly over time. Joe hadn’t been double-crossed. His friend didn’t steal from him or lie to him. It just became clear to both of them that their work habits didn’t gel. And that created a sense that neither could rely on the other, dooming the business. And because there was no written agreement to memorialize how they were supposed to act, neither knew how to act.

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