Binding Contracts Created by Email

As e-mail exchanges become more and more prevalent in our everyday lives, the courts are beginning to hold that e-mails can create binding, written, contracts. As noted here:

[F]or good or for ill, parties now can conclude a contract, or amend an existing contract, via e-mail....

As ... recent decisions reflect, e-mail contracting can be an effective way to form an enforceable contract. They can however be a boon or curse. E-mail is a casual and speedy form of communications, previously unheard of in the practice of law and which belies its potential legal import.

Parties wishing to avoid the impact of a ruling that e-mail communications have created contractual obligations (or have amended an existing contract) should do what parties do in the traditional context: Make it clear that they do not intend for a contract to be formed until all documentation is fully completed and signed.

In other words, everyone should stop and think before hitting "send."

Beware of Another Tax Scam

With the arrival of the economic stimulus checks comes news of yet-another scam aimed at your taxes:

In the economic stimulus payment scam, people call or e-mail residents, saying they work for the Internal Revenue Service or the Social Security Administration. They ask for personal information, including Social Security and bank account numbers....

Remember: as a general rule you should never give out your social security or bank information to any one who calls you on the telephone.

Seneca County honors judges on Law Day

From the Finger Lakes Times:

100-plus people filled the courtroom of the Ovid Courthouse on May 1 - Law Day - to pay tribute to the 20 judges who have presided over Seneca County Supreme Court since the mid-1800s....

In dramatic voices, readers introduced their subjects. A brief biography of Judge David Herron was read by Attorney Steve Getman; followed by Ovid Town Supervisor David Dresser reading that of Judge James K. Richardson; Judge John E. Seeley by Mary Lou Seeley Schwartzberg; and Judge Sterling G. Hadley by John Porter. Ben Franklin offered details of the life of Judge George W. Franklin; Casey McDonald read the biography of Judge Addison Knox; Judge Josiah T. Miller was presented by Seneca County Assistant District Attorney Mark Sinkiewicz; Judge Gilbert Wilcoxen by Peter Wilcoxen; Judge Peter H. VanAuken by Barry Roach; and Judge William C. Hazelton by Romulus Town Supervisor David Kaiser.

As each biography was read, recently retired Seneca County bailiff Webb Rankin drew the audience's attention to the accompanying portraits hanging on the wall. The originals, displayed at the Waterloo courthouse, were borrowed and cleaned, reproduced and framed as permanent additions to the Ovid courtroom.

As one of the participants, I would like to think Dan Motill, President of the Friends of the Three Bears, for his work organizing this ceremony and for his other work on behalf of the historic Ovid complex.

May 1 is Law Day

Since 1958, our nation has set aside each May 1 as Law Day, to celebrate “the principle of government under law."

Locally, the Seneca County Criminal Justice Advisory Board and the Friends of the Three Bears are commemorating the fiftieth anniversary of this important event by staging a number of events throughout the county.

In the morning the Criminal Justice Advisory Board will assist local high school students with a review of the local legal system:

Students will accompany attorneys, judges, police officers and other government officials during their day to day activities. They will be able to observe court cases, police activities and other functions of the legal system.

Later that evening, the historic court complex in Ovid, New York, known as the “Three Bears,” will host a “Tribute to the Judges.” During that event, members of the legal community and others will discuss some of the history of the old courthouse and the judges who presided there.

More information on each event can be found by clicking on the links above. For information about the history of Law Day nationally click here.

Fighting Abuses by Credit Card Companies: Know Your Rights

As the economy tightens, many people are beginning to take notice of tactics allegedly being used by the credit card companies to limit the rights of cardholders.

For example, on Friday (April 25), the U.S. Court of Appeals in New York reinstated a class action lawsuit against several large credit card companies. According to Reuters:

The credit cardholders "alleged that the banks … illegally colluded to force the cardholders to accept mandatory arbitration clauses in their cardholder agreements," according to the ruling by the 2nd U.S. Circuit Court of Appeals.

The cardholders argued the banks had violated antitrust laws "by refusing to issue cards to individuals who did not agree to arbitration," according to the decision.

The cardholders want the court to stop the banks from compelling arbitration, prevent them from "continuing their alleged collusion" and invalidate the existing mandatory arbitration clauses.

This ruling is not a finding of wrongdoing by the companies, however. It is only a decision that the lawsuit against them may proceed.

In the meantime, a number of state and federal lawmakers are exploring legislation to remedy what they see as abuses by the card companies. For example, Michigan Senator Carl Levin has stated:

[O]ver a dozen bills are now pending in the House and Senate to correct credit card abuses [including] bill [to] stop credit card companies from piling on excessive fees; charging interest on debt that is paid on time; charging so-called "trailing interest" that is added between the time a bill is sent out and the date the bill is paid; increasing interest rates on cardholders who pay their credit card bills on time (employing so-called "universal default"); and applying higher rates retroactively to pre-existing credit card debt…there is a shared focus on provisions to halt unfair practices that attempt to squeeze more money out of even the most responsible cardholders.

Of course, not everyone agrees that such measures will improve the situation. Eli Lehrer, of the Competitive Enterprise Institute, writes:

[T]he new restrictions that self-styled “consumer advocates” and their trial lawyer allies envision will result in immediate, sizeable interest rate and fee increases for the majority of Americans who pay their credit card bills on time. Quite simply, efforts to cap, reduce, and ban penalty fees and interest-rate hikes for bad customers will axiomatically lead profit-minded companies to seek returns elsewhere. Many will hike the annual fees and interest rates for everyone else. New ways to litigate likewise will create another lawyers’ payday while doing nothing to help ordinary Americans.

Those who live on limited incomes or fail to pay their bills on time—the supposed beneficiaries of the proposals—will also see themselves hurt. Many will be denied credit that bureaucrats decide they “can’t afford.” More will find they only qualify for the “secured credit cards”—which require a bank deposit against the credit line—that predominated in the dark days before deregulation helped banks figure out ways to extend credit to everyone.

As these cases make their way through the legal system, and the proposed laws make their way through the legislature, it is important for consumers to know their rights and to be very careful when applying for any credit card.

The Federal Trade Commission has information for consumers on line. In addition, persons facing mounting debt and legal action to collect credit card fees may wish to consult with an attorney who can assist them in asserting their rights during any collection process.

A Note On Contracts

A recent court case in New York City (as reported in the New York Post) serves as a reminder on the basics of contract law.

It might as well have been set in stone. A contract
written on notebook paper is legally binding - and worth $10.5 million to a Brooklyn Internet exec, a federal jury has ruled.

The decision is but the latest victory for Alfred West, 46, who has spent years battling the Newark, NJ-based telecommunications firm IDT over the pact's legality…. IDT had argued that the handwritten pact had no legal standing.

Many people do not realize that a written, binding, contract can be created very simply. Under New York law, a written contract is often created merely by the following:

• An offer or promise;
• An acceptance of that offer;
• Some form of consideration or payment.

In addition, not all contracts need to be in writing to be enforceable. In many cases, an oral agreement, supported by appropriate consideration, will create a binding contract.

Failure to abide by a binding contract can result in money damages or an order of “specific performance,” where the court directs a person to act in a particular manner to fulfill an existing contract. Furthermore, a contract may provide for additional penalties, or directives as to how a dispute between the parties will be tried before the court.

Consumers should be very careful whenever asked to sign any document. Furthermore, when in doubt, it is always wise to consult an attorney who can provide advice on contract law.

Defensive Driving Course Offered for Local Seniors

Seneca County's Office for the Aging is offering a defensive driving course in May:

This 2-day accident prevention course will be held on May 12th and 14th, 2008 at the Seneca Falls Community Center, 35 Water Street, Seneca Falls, NY.

This is for New York State drivers’ ages 50 and older. The course includes the effect of aging and medication on driving, adverse road conditions, vision adjustments, and accident prevention measures.

Participants MUST complete both days of the 2-day course to be eligible for a 10% reduction for 3 years of the liability, collision, and no-fault portions of their automobile insurance and a four point reduction on their driver’s license. There are NO TESTS and all materials are furnished as part of the $10.00 registration fee. CLASS SIZE IS LIMITED. The class will run from 1:00 pm – 5:00 PM.

For further information, please contact the Home Economics Program at (315) 539-9251. Registration is required.

Regardless of age, I encourage all drivers in New York State to participate in a defensive driving class every few years. As noted above, these classes can reduce insurance premiums and, in certain circumstances, reduce the "points" on a driving record caused by traffic tickets.

More information about defensive driving courses in New York State can be found here.