Audrie Lawton Legal Blog

Collection companies must validate debt with detailed billing history and endorsed contracts. The purpose of this law is to eliminate abusive collection practices, promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information’s accuracy. Cease and desist letters to collection companies are allowed under this law

1.                  Mechanic’s Lien – Anyone that supply materials and/or services to the owner to improve the real property, and did not get paid, may file a Mechanic’s Lien on the property. A Mechanic’s lien is also a secured lien on the property and should be clearly stated in Schedule B.

2.                  Deed of Trust - The deed of trust is an instrument that identifies the original loan amount, legal description of the property being used as security for the mortgage, the parties, inception and maturity date of the loan, provisions of the mortgage and requirements, late fees, legal procedures, acceleration and alienation clauses, and riders, if any, regarding such clauses as prepayment penalties or terms of an adjustable rate mortgage.

3.                  Easements – Ingress and Egress to and from the property.

One of the primary roles and responsibilities of a real estate transaction attorney is draft and prepare legal documents necessary for the sale and closing of the property. These documents include but are not limited to preparing the sale/purchase agreement, deed of trust and the warranty deed. If the property is financed through a bank or a mortgage company, then the financing institution will underwrite the documents necessary for the loan. If the loan is financed by the Seller (Seller financed), then the attorney may also be responsible for drafting and recording the loan agreement and the promissory note.

The attorney, working in conjunction with the title company and escrow officer, also assists the client to verify that the title of the real property is clear of any and all encumbrances. Any such encumbrances should be clearly identified and delineated in a preliminary title report. An attorney should have his/her client obtain from the title company a preliminary title report on the condition of title to the property and copies of all encumbrances and exceptions. There are two (2) primary sections of a preliminary title report. The first section is called a “Schedule A.” Schedule A is a legal description of the property. The address of a real property is not its legal description. The address is a “common description” of the property. The legal description of the property is the “metes and bounds” description of the property that is usually attached in the property’s warranty deed.

Unemployment Benefits

Unemployment benefits are based on combinations of federal and state statutes. Texas’ unemployment compensation program is administered by the state and provides monetary compensation to workers who have been terminated without cause, through no fault of their own. Employees who voluntarily terminate their employment for “good cause” may also be entitled to benefits. In Texas, the law governing unemployment benefits is the Texas Unemployment Compensation Act, which can be found under Title 4 of the Texas Labor Code.

COBRA

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), which is a federal law, employees may be allowed to continue their health insurance benefits, at the employee’s expense, for up to 18 months after either voluntary or involuntary termination, if the employer has 20 or more employees.

To qualify for COBRA continuation coverage, an employee must have a qualifying event that causes the employee to lose group health coverage. The following are qualifying events:

For employees

•  
  • Voluntary or involuntary termination of employment for reasons other than gross misconduct
  • Reduction in numbers of hours worked

For spouses

•  
  • Loss of coverage by the employee because of one of the qualifying events listed above
  • Covered employee becomes eligible for Medicare
  • Divorce or legal separation of the covered employee
  • Death of the covered employee

For dependent children

•  
  • Loss of coverage because of any of the qualifying events listed for spouses
  • Loss of status as a dependent child under the plan rules

Some states have enacted “mini” COBRA laws similar to the federal COBRA law. In Texas, employees of employers with 2-19 employees can qualify for 6 months of COBRA continuation coverage.

Sexual Harassment

An employer may be liable to an employee for instances of “sexual harassment” which can include unwelcome sexual advances, conduct or other physical or verbal acts of a sexual nature, which occur in the workplace. The following conduct is generally considered sexual harassment:

• Direct sexual conduct–an employer makes sexual advances or statements
• “Quid pro quo” - job-related benefits are offered in exchange for sexual conduct
• Hostile work environment–an employer maintains an overly sexual work environment

Because the laws determining what conduct, or pattern of conduct, constitutes actionable sexual harassment are complex, a licensed attorney should be contacted to review individual circumstances.

Discrimination and Wrongful Termination

Employers are not allowed to terminate or discriminate against employees for the following reasons:

• Age
• Race
• Sex
• Religion
• National origin
• Disability
• Pregnancy

It’s illegal for an employer to consider these characteristics with regard to:

• Promotions
• Job assignments
• Termination
• Wages

And it’s illegal for an employer to terminate an employee:

• For refusing to break a law
• In retaliation for filing a discrimination or safety claim
• For taking leave under the Family and Medical Leave Act
• Without following its own stated procedure or policy
• For reasons not contained in the employment contract, if one exists

Family and Medical Leave

Under federal law, eligible employees are allowed to take up to 12 weeks of unpaid medical leave, with continued medical benefits and restoration of their original position upon return. An employee is eligible under FMLA when they:

• Have worked for the same employer for the previous 12 months
• Have worked at least 1250 hours in the previous 12 months
• Are employed by a “covered” employer, which is:
  • All federal, state, and local governments and agencies
  • Private employers with 50 or more employees for 20 weeks in the calendar year and engaged in interstate commerce