Friday, April 25, 2014

Cybersecurity and District Energy Resilience


d-roby-credit   arukin-credit copy

Jennings, Strouss & Salmon attorneys, Debra D. Roby and Alan J. Rukin, author "Cybersecurity and District Energy Resilience," published in District Energy Magazine's "From a Legal Perspective" section.

In today's digital age, organizations are increasingly susceptible to hacking and cyberattacks. Cybersecurity breaches can pose serious risks to the resilience and reliability of a district energy system. In the midst of these threats, organizations must be proactive about engaging in cybersecurity preparedness. While cybersecurity laws and standards are in their infancy and currently evolving, attention to a district energy system's cybersecurity profile can strengthen operational resilience and data integrity, thereby potentially reducing the risk of liability. 

Twenty-Seven Jennings Strouss Attorneys Recognized in 2014 Edition of Southwest Super Lawyers®


PHOENIX, Ariz. (April 25, 2014) – Jennings, Strouss & Salmon, PLC, a leading Phoenix-based law firm, announced that twenty-seven attorneys have been listed in Southwest Super Lawyers® magazine for 2014, including eight 2014 Southwest Rising Stars.  
The Jennings Strouss attorneys listed in 2014 Southwest Super Lawyers are:

The attorneys listed as 2014 Southwest Rising Stars are:
The selections for the top attorneys in Arizona are made by the research team at Super Lawyers, which is a service of the Thomson Reuters Legal Division based in Eagan, MN. Each year, the research team undertakes a rigorous multi-phase selection process that includes a statewide survey of attorneys, independent evaluation of candidates by the attorney-led research staff, a peer review of candidates by practice area, and a good-standing and disciplinary check. State-wide, only five percent of attorneys are named by Super Lawyers, and just 2.5 percent of attorneys under the age of 40 and practicing 10 years or less are included as Rising Stars.
About Jennings, Strouss & Salmon
Jennings Strouss & Salmon is one of the Southwest's leading law firms, providing legal counsel for over 70 years through its offices in PhoenixPeoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; litigation; real estate; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedInFacebook and Twitter.
The firm’s affiliate, B3 Strategies, assists clients with lobbying and public policy strategy at the local, state, and federal levels. For more information please visit www.b3strategies.com.
~JSS~
Contact:  Dawn O. Anderson  |  danderson@jsslaw.com|  602.495.2806

Thursday, April 17, 2014

Lockout of a Commercial Tenant: The Pitfalls

If a commercial property tenant neglects or refuses to pay rent and is in arrears for more than five days, or if a tenant violates another provision of the lease, under certain conditions and circumstances Arizona law[1] allows the landlord the option to reenter and retake possession of the premises, seize personal property belonging to the tenant, and, after a statutory allotted time period and proper notice, publicly auction the tenant’s property. Entering and retaking possession, however, may not be the best course of action and, in fact, may expose the landlord to liability if not done properly.
The following is a list of questions and comments intended to give landlords a glimpse of just a few potential issues, and why it is imperative they consult with a knowledgeable attorney to discuss whether reentering and retaking possession is legal without a court order, or, is the best option for their situation.

  • Read the lease first.  Does the lease contain language that would prohibit a lock-out?

If so, a lockout is not an option.

  • Does the lease require the landlord provide written notice to the tenant before there can be a default or breach of the lease?

If so, a lockout remains a potential option only if the written notice has been properly delivered to the tenant, and the time to respond to the notice and cure a potential default has expired.

  • Is the tenant five days in arrears on the payment of rent or has there been a material default under the lease by the tenant aside from late rent?

Arizona statutory law provides that the right of a commercial landlord to reenter the premises arises when the rent has been unpaid for five days past the date it was due or when the tenant has violated another provision of the lease. Thus, before contemplating a lockout, questions the landlord should consider include whether the rent is at least five days in arrears and/or whether there has been some other material violation of the lease.  The landlord should also assess whether the tenant has a valid argument that the failure to pay rent or alleged material default of the lease was prompted by the landlord’s own failure to comply with a term of the lease. A breach by the landlord may excuse a tenant from having to comply with certain performance obligations.

  • Has the landlord given the tenant a period of time in which to pay rent as part of an effort to resolve the issue?

If the landlord has given the tenant an additional period of time to pay rent as part of an effort to resolve the issue, the landlord should avoid retaking possession of the premises until the allotted period of time expires.

  • Has the landlord routinely accepted late rent payments or led the tenant to believe timely payments would not be required?

If the landlord has regularly accepted late rent payments from tenants, it should bring this fact to the attention of its counsel. This history of such conduct can potentially impact whether reentry is a prudent option and/or whether additional steps should first be taken.

  • Can the lockout be performed without any of the tenants, employees, or representatives present?

A landlord cannot retake possession while someone is inside the building.

  • Can a lockout be accomplished without breaching the peace?

If entering the property will result in a breach of the peace, the lockout cannot be performed. If a breach of the peace occurs during a lockout, then the lockout needs to be terminated. [The phrase “breach of the peace” has been said to include, but not be limited to, conduct or words which interfere with public order. Thus, violent acts and words likely to produce violence in others, among other things, would likely fall within a “breach of the peace.”]

  • Is the personal property on the premises owned by the tenant and, if so, is it of sufficient value to cover past due rent and other costs associated with the lockout?

If the personal property is not owned by the tenant, it cannot be sold by the landlord.  Further, a landlord’s possessory lien will not take priority over another creditor who perfected a lien on the personal property before it was brought into the leased space.  Thus, a UCC lien search should be conducted before deciding whether repossession is prudent. Also, consider what the personal property is likely worth in used condition. If the property is not worth enough to cover the rent owed, the lockout process may not be the best option. Additionally, a landlord could create liability exposure for itself if it retakes and disposes of personal property (such as computers) that contains protected personal information of the tenant’s customers. This is clearly an issue that should be discussed with counsel before initiating the repossession of personal property.

  • Will a lockout put the tenant out of business and, if so, is that in the landlord’s best interest?

Locking out a tenant and taking possession of its equipment may prevent it from satisfying obligations to its clients, forcing it to close it doors permanently.  If the tenant is under a long-term lease and has simply fallen behind on one month’s rent due to a cash flow issue, a lockout is probably not going to be in the landlord’s best interest.

  • Is there a personal guaranty and do the guarantors have money?

If the tenant is a corporation or LLC, the owners of the company signed a personal guaranty, and there is reason to believe the guarantors would not be able to pay a judgment if one was obtained, filing suit on the personal guaranty and getting a money judgment against the guarantors may prove to be a better course of action than going through the time-consuming and uncertain process of seizing and selling the tenant’s assets. The suit can also include a request for a court order requiring the tenant to turn over the premises to the landlord.
In summary, lockouts are ripe with hidden dangers and potential problems if not executed in accordance with the law. It is highly recommended that landlords consult an attorney familiar with commercial lockouts before moving forward with such a process.
*Garrett Olexa is a member of the law firm of Jennings, Strouss & Salmon, PLC. He practices in the areas of real estate and commercial litigation.  Mr. Olexa can be contacted at golexa@jsslaw.com or 623.878.2222.


[1] A.R.S. 33-361(A).  NOTE: The same is not true for residential landlords.

Friday, April 11, 2014

Jennings, Strouss & Salmon Voted as a Top Law Firm in 11 Ranking Arizona Categories


PHOENIX – (APRIL 11, 2014) – Jennings, Strouss & Salmon, PLC, a leading Phoenix-based law firm, is pleased to announce that it has once again been listed among the top 10 law firms with 51 or more attorneys in the 2014 issue of Ranking Arizona: The Best of Arizona Business.
Overall, the firm received recognition in 11 law firm categories, and was voted No. 1 in alternative dispute resolution. Other categories for which Jennings, Strouss & Salmon was ranked include:
  • bankruptcy/reorganization
  • business/corporate
  • construction litigation
  • employment/labor
  • estate/trust
  • family law
  • healthcare
  • real estate
  • tax
The top rankings follow Jennings Strouss’ recognition in the March issue of Arizona Foothills’ Best of Our Valley 2014 as “Best Real Estate Law Firm,” in addition to eight of the firm’s attorneys being selected for Az Business Magazine’s “Top Lawyers List.”
About Jennings, Strouss & Salmon
Jennings Strouss & Salmon is one of the Southwest's leading law firms, providing legal counsel for over 70 years through its offices in PhoenixPeoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; litigation; real estate; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedInFacebook and Twitter.
The firm’s affiliate, B3 Strategies, assists clients with lobbying and public policy strategy at the local, state, and federal levels. For more information please visit www.b3strategies.com.
~JSS~
Contact:  Dawn O. Anderson |  danderson@jsslaw.com |  602.495.2806

Wednesday, April 9, 2014

Tuesday, April 8, 2014

Jennings, Strouss & Salmon Voted Best Real Estate Law Firm in the Valley


PHOENIX, Ariz. (April 8, 2014) – Jennings, Strouss & Salmon, a leading Phoenix-based law firm, was voted the “Best Real Estate Law Firm” in Arizona Foothills Magazine’s “Best of Our Valley 2014” contest. Each year, AZ Foothills asks readers to vote on their favorite Valley businesses, people and places. The contest garners millions of votes from Valley residents.
“It is an honor to be voted “Best Real Estate Law Firm,” states Bruce May, Chair of the Real Estate Department at Jennings Strouss. “I am very pleased that the exceptional efforts of our real estate attorneys have been recognized.”
Jennings Strouss has an extensive real estate practice, representing clients in every segment of the real estate industry, including owners, lenders, borrowers, investors, developers, contractors, brokers, property managers, title insurers, escrow agents, municipalities, and syndicators.
Our real estate attorneys’ strengths include acquisition, development and disposition of real property; financing; title insurance; syndications; leasing; construction, renovation and restoration; tax-deferred exchanges and other tax issues; subdivisions; condemnation; and real estate litigation.
About Jennings, Strouss & Salmon
Jennings Strouss & Salmon is one of the Southwest's leading law firms, providing legal counsel for over 70 years through its offices in PhoenixPeoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; litigation; real estate; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedInFacebook and Twitter.

The firm’s affiliate, B3 Strategies, assists clients with lobbying and public policy strategy at the local, state, and federal levels. For more information please visit www.b3strategies.com.
~JSS~
Contact:  Dawn O. Anderson  |  danderson@jsslaw.com|  602.495.2806

Tuesday, April 1, 2014

Jennings, Strouss & Salmon Attorneys Recognized as “Top Lawyers”



Eight Attorneys Selected for Az Business Magazine’s Top Lawyers List 
PHOENIX, Ariz. (April 1, 2014) – Jennings, Strouss & Salmon, a leading Phoenix-based law firm, is pleased to announce that eight of the firm’s attorneys were included in the March/April issue of Az Business Magazine’s “Top Lawyers List.”
Nominees for “Top Lawyers” were submitted by area of focus and selected based on career achievements and commitment to the legal industry.
The Jennings, Strouss & Salmon “Top Lawyers” include:

About Jennings, Strouss & Salmon
Jennings Strouss & Salmon is one of the Southwest's leading law firms, providing legal counsel for over 70 years through its offices in PhoenixPeoria, and Yuma, Arizona; and Washington, D.C. The firm's primary areas of practice include agribusiness; bankruptcy, reorganization and creditors’ rights; construction; corporate and securities; employee benefits and pensions; energy; family law and domestic relations; health care; intellectual property; labor and employment; litigation; real estate; surety and fidelity; tax; and trust and estates. For additional information please visit www.jsslaw.com and follow us on LinkedInFacebook and Twitter.
Contact:  Dawn O. Anderson  |  danderson@jsslaw.com|  602.495.2806