New on The McTexLaw Business Owner's Resource Center:

THE WORST LITIGATION RISK OF ALL: UNFAIR JUDGES

It is critical for every business owner to operate their business in a way that reduces the chances of getting involved in a lawsuit. This requires things like putting contracts in writing, performing contracts a certain way, enforcing proper business policies, and protecting the assets used by the business to earn money. Perhaps most importantly, it takes doing business with the right kinds of people. Lawsuits are horrible remedies if they become necessary. Here's a true story about how the federal Sixth Circuit Court of Appeals got stacked like a deck of cards, which changed the ultimate decision in the case. It is a glaring example of the worst litigation risk of all: unfair judges. And while it pains me to have to share this story, which is an embarrassment to the legal profession, click the headline and read this because it can only be prevented from happening again by spreading it far and wide. Grutter v. Bollinger, et al., United States Court of Appeals for the Sixth Circuit, Case No. 01-1447/1516, Decided May 14, 2002.

New on The McTexLaw Commercial Real Estate Resource Center:

IN CONDEMNATION, SOMETIMES THE LAND TAKEN ISN'T THE ONLY COST

Whataburger recently ate the State's lunch in a condemnation case. It recovered for the land taken, lost profits, impairment of access, and costs to raze and rebuild the building to comply with roadway set back regulations, totaling over $1.5 million, for 8,421 square feet of land (that's $178 a foot). Click the headline to get the skinny on damages available in condemnations, and why commercial lease provisions on condemnation are so important. State of Texas v. Whataburger, Inc., Fourteenth Court of Appeals (Houston), Case No. 14-00-00203-CV, Decided September 6, 2001.

DOES THE REAL ESTATE BUBBLE COMETH?

With the recent business scandals roiling the stock market, money has been pouring into real estate investments at a record pace. But that's not something the FDIC is pleased to see. About 31.6% of FDIC-insured banks have moderate to high exposures to development and commercial real estate loans, which puts their exposure risk higher than at any point since 1985.

And there is cause for concern that problem loans could mount. Nationwide, more office space is being built than occupied, resulting in a net increase in vacant office space, in 37 of the largest 51 markets. As a result, Moody's Investor Service is downgrading the credit ratings of banks with significant exposure to commercial real estate. The trickle down effect to would-be borrowers is that banks may become more unwilling to make commercial real estate loans in order to protect their credit ratings.

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