THIS ISSUE'S HEADLINES

Revisions to the Bankruptcy Code Provides Options to Small Business

Inside Business — Powered Up For Success Multimedia Learning Center Goes Live!

“Sports Gambling Legalization: Looking Back and What's Ahead” Webinar Set for April 3 – Register Today

Rhode Island Court Adopts New Rule in Discrimination Cases


REVISIONS TO THE BANKRUPTCY CODE PROVIDES OPTIONS TO SMALL BUSINESS

With little fanfare, the Bankruptcy Code just received its first major revision in 15 years. This new revision – called “Subchapter V” – is primarily designed to make it easier for small businesses to declare bankruptcy, reorganize their affairs, and come out of bankruptcy intact.

Prior to Subchapter V, bankruptcy reorganizations for small businesses (versus liquidations) were often too expensive, too unwieldy, and too time-consuming. Indeed, one United States Senator observed that bankruptcy has historically been a “feeding trough” for attorneys and other professionals, all to the detriment of the bankrupt company and its creditors. It was no surprise, then, that small businesses had no choice but to liquidate and go out of business because they could not sustain the cashflow needed to navigate several months or years of the bankruptcy process.

However, Subchapter V seeks to change all of this in several ways. PLDO Partner Brian J. Lamoureux drills down on the revisions in his latest advisory, Bankruptcy Options for Small Business, providing details about the changes this new tool provides for small businesses to consider when facing financial struggles. For further information about the revisions or other business matters, please contact Attorney Lamoureux at 401-824-5100 or email bjl@pldolaw.com.

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PLDO announces the launch of an online multimedia learning center, Inside Business - Powered Up For Success, dedicated to assisting entrepreneurs, startups and business owners to grow, thrive and succeed in today’s business environment.

The unique platform features a six-part series of podcasts with business attorney Joshua J. Butera on topics ranging from corporate structure and governance options and their tax implications, to alternative work space locations and the advantages and disadvantages of owning or renting commercial space, to the pros and cons of different options available for start-up capital and/or to attract investors. Each podcast has an associated business advisory with further information and insights to help individuals make informed business decisions. Additional materials and resources will be added to the microsite that is available on the firm’s website at www.pldolaw.com or by visiting Inside Business - Powered Up For Success.

PLDO Managing Principal Gary R. Pannone, who has been selected by his peers and clients as Rhode Island’s Best Lawyer® “Lawyer of the Year” for his business practice over several consecutive years and recently recognized by Rhode Island Lawyers Weekly as a 2020 Excellence in the Law Hall of Fame honoree, leads the initiative. He will be working with Attorney Butera and other PLDO business lawyers and attorneys with experience in business-related areas including PLDO Partners John (Jay) R. Gowell, Benjamin L. Rackliffe, William F. Miller, Joel K. Goloskie and Senior Counsel Jason S. Palmisano. The creation of the online learning center is a team effort and part of the firm’s innovative approach for sharing legal insights and information.

The firm welcomes suggestions for future interviews about business concerns or questions owners may have as the center grows. Please contact your PLDO attorney or call Attorney Pannone or Attorney Butera at 401-824-5100 or email gpannone@pldolaw.com or jbutera@pldolaw.com.

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Sports betting, enabled by the Supreme Court’s repeal of the Professional and Amateur Sports Protection Act (PASPA) in May 2018, continues to be on a fast-paced track. With states authorized to determine their own requirements for such areas like licensing and tax rates since the law was repealed, a patchwork of rules has been created across the country.

On Friday, April 3, 2020 from noon to 2 p.m. (EST), PLDO Principal William P. Devereaux will be discussing this topic and what the future may hold during a national webinar on Sports Gambling Legalization: Looking Back and What’s Ahead. Attorney Devereaux will be joined by other panelists to provide webinar participants with an in-depth assessment and analysis of the status of sports gambling and betting in the U.S., the opportunities and limitations, and what lies ahead.

The event is hosted by the Knowledge Group. Complimentary registration is available to the first 30 PLDO guests by entering the code, PLDOLAW148680, once logged onto the registration page at Sports Gambling Legalization: Looking Back and What’s Ahead. This webinar is eligible for CLE credits in multiple jurisdictions. Please visit https://www.theknowledgegroup.org/state-cle-requirements for information. For additional questions, email info@theknowledgegroup.org.

Attorney Devereaux leads the firm's Criminal Defense and Civil Litigation Team. He has extensive experience in gaming law and regulations and has represented developers, municipalities and Native American Tribes with respect to gaming, licensing, permitting and contracting issues involving state and federal laws and the Indian Gaming Regulatory Act. He has been recognized by his peers and judges with the AV Preeminent rating from Martindale Hubbell, which is the highest rating based on both legal ability and ethics, and selected annually by his peers and clients to the list of Best Lawyers® in America. For more information on the webinar or to speak with Attorney Devereaux, please call 401-824-5100 or email wdevereaux@pldolaw.com.

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In a case of first impression in Rhode Island, Superior Court Judge Brian Stern adopted the “after-acquired evidence doctrine” in an employment discrimination case. This principle is simple: in a case where a terminated employee claims that he or she was fired for a discriminatory or unlawful reason, the employer can possibly escape liability if they discover facts – after the termination – that would have led to the employee’s firing anyway.

In Judge Stern’s case, the employee sued his former employer, claiming that he was discriminated against because of his gender, among other things. The employer filed a counterclaim against the employee, claiming that the employee breached his fiduciary duties and illegally disclosed the employer’s confidential information. Without deciding the merits of those claims, Judge Stern determined that enough facts were in dispute to justify proceeding to trial on the issue of whether the employer knew about the employee’s alleged conduct when he was terminated and, if not, whether the employer would have fired the employee for that conduct anyway.

In reaching his decision, Judge Stern looked to United States Supreme Court precedent and court rulings in other states. Those cases allow employers to successfully invoke this doctrine if: (1) the employee committed some misconduct which was unknown to the employer; (2) this misconduct would have justified the employee’s termination; and (3) had the employer knew about the misconduct at the time, the employee would have been fired.

The takeaway for employers here is fairly simple. If an employee sues for discrimination or wrongful termination, employers should use the pretrial discovery process to discover facts that would have entitled the employer to terminate the employee for another legally justifiable basis. Although illegal discrimination is never wise or justified, it is often easier to defend unlawful discharge cases when the employee has also committed misconduct during their employment, especially when the employee hid the misconduct from his or her employer. For further information about this decision and other employment law or business matters, please contact PLDO Partner Brian J. Lamoureux at 401-824-5100 or email bjl@pldolaw.com.

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