Russell Mirkovich & Morrow Los Angeles Admiralty & Maritime Law | Business Litigation Lawyer 2026-06-03T10:12:32Z https://www.rumlaw.com/feed/atom/ WordPress /wp-content/uploads/sites/1304064/2025/02/cropped-favicon-32x32.png On Behalf of Russell Mirkovich & Morrow <![CDATA[Why the LLC is one of the most popular structures for new businesses]]> https://www.rumlaw.com/?p=47244 2025-01-28T19:35:31Z 2025-01-28T19:35:31Z limited liability company, or LLC. For decades, the LLC has been one of the most popular structures for new businesses, and for good reason. The process of forming an LLC is relatively simple and yet it offers a great deal of protection for business owners. Compared to a sole proprietorship or simple partnership, an LLC also offers significant tax advantages. The IRS treats an LLC as a pass-through entity, meaning that, typically, the owners are not personally responsible for the tax debts of the company.

Adaptability

LLCs are also highly adaptable. They can be set up by one owner or a partnership, and the structure can change as the business grows. While LLCs do have certain reporting requirements under California law, these are much less complicated than for a corporation. An LLC must register with the California Secretary of State and pay a tax of at least $800 every year. But for the most part, LLC owners can decide on how to manage their business. In the case of single-member LLC, this means the single owner can decide on how to handle profits and other matters. For a multi-member LLC, the owners must decide through the terms of their partnership agreement.

Partnership agreements

California does not require a multi-member LLC to file a partnership agreement with the state, but it is wise for all LLCs with multiple owners to have one of these agreements. Your LLC's partnership agreement is essentially a contract between the parties. You can use it to manage the expectations of every partner, and to dictate everything from how profits are shared to how the partners must handle disputes among themselves. It can also dictate the terms if one partner leaves the company.

Learn more

While forming and running an LLC is much less complex than forming and running a corporation, it must be done carefully. Experienced professionals can help business owners to choose the right foundation so that they are protected and their businesses can grow.]]> On Behalf of Russell Mirkovich & Morrow <![CDATA[Cargo claims: What are the exceptions to carrier liability?]]> https://www.rumlaw.com/?p=47240 2025-01-27T14:31:44Z 2025-01-27T14:31:44Z Cargo damage is a frequent source of dispute between businesses and carriers. While carriers generally bear responsibility for the safe transport of goods, there are several important exceptions to this liability.  The Carriage of Goods by Sea Act (COGSA) names 17 carrier immunities, which apply to all contracts for sea freight or transport from U.S. ports in foreign trade.  For businesses and other entities with interest in the cargo, understanding these exceptions can help aid better insurance decisions and dispute resolution. Here are some of the most common ones. 

Act of God 

Acts of God refer to natural events that are beyond human control. These include but are not limited to: 
  • Hurricanes 
  • Tsunamis 
  • Earthquakes 
  • Hail 
However, a carrier must prove that the event was both unexpected and unavoidable. This means that even if a natural disaster occurs, the exception may not apply if they could have taken reasonable steps to avoid its impact. 

Perils of the sea 

This exception covers dangers that are inherent to maritime navigation, such as heavy storms or rogue waves. However, the danger must be extraordinary or very unexpected for the voyage’s particular route and season. 

Inherent vice of the goods 

Carriers can use this exception when the cargo has inherent defects or is prone to natural deterioration. Common examples include: 
  • Fruit ripening 
  • Meat spoiling 
  • Metal rusting 
The carrier cannot be liable if the damage happens despite workers taking proper care of the cargo. 

Insufficient packing 

It is the shipper’s responsibility to prepare and pack all cargo for the rigors of sea transport. If they fail to do so, the carrier can argue that the damage occurred due to inadequate packaging. 

Act or omission of the shipper 

Carriers can use this exception if the shipper’s actions or negligence causes damage. Examples might include providing incorrect information about the cargo, which leads to improper handling. However, it may not be an acceptable defense if the carrier was also negligent.  Damaged cargo does not only lead to financial losses. It can also affect a business’s operations, supply chain and ultimately, the bottom line. While carriers can use these exceptions to avoid liability, careful legal interpretation is a must.  Lawyers can help businesses prove or disprove the application of these exceptions. With legal counsel and a proper understanding of the law, businesses can help protect their interests and seek more favorable outcomes for their claims. ]]> On Behalf of Russell Mirkovich & Morrow <![CDATA[How much can trucks get fined for in California? ]]> https://www.rumlaw.com/?p=47238 2025-01-16T12:04:08Z 2025-01-16T12:04:08Z Thousands of trucks move freight across California's highways every day. For drivers and fleet owners, staying within legal weight limits means avoiding steep fines and keeping their businesses on track.  

Basic weight rules in California  

California sets an 80,000-pound limit for trucks on public roads. Each axle must also meet specific weight requirements. The California Highway Patrol checks these limits at weigh stations and through mobile units nationwide.  

Fine structure and costs  

Truck drivers must know what to pay when their trucks weigh too much. Here's a clear breakdown of the fines:  
  • 1-1,000 pounds extra: $20 plus $1 per pound over 
  • 1,001-2,000 pounds extra: $70 plus $2 per pound over 
  • 2,001-3,000 pounds extra: $170 plus $3 per pound over 
  • 3,001-4,000 pounds extra: $370 plus $4 per pound over 
  • 4,001-5,000 pounds extra: $670 plus $5 per pound over 
  • Over 5,001 pounds extra: $1,070 plus $6 per pound over 
The actual cost goes beyond these base fines. Courts add fees that can triple the original amount.  

More than just money  

Weight violations hurt truckers in several ways:  
  • Points on their CDL 
  • Higher insurance rates 
  • Possible license suspension 
  • Risk of losing operating permits 
Smart truck drivers check their weights often and plan their loads carefully. They know that paying attention to weight limits saves money and keeps their trucks rolling. Good loading practices and regular scale visits help avoid these expensive tickets.   The best way to dodge these fines is simple: know your truck's weight limits and stick to them. Drivers who follow the rules keep more money in their pockets and trucks on the road.   If you are stuck with fines due to being over the truck weight limit in California, talk to a local lawyer who can help you fight for your rights.   ]]> On Behalf of Russell Mirkovich & Morrow <![CDATA[Understanding your rights as a port worker]]> https://www.rumlaw.com/?p=47237 2025-01-06T11:02:40Z 2025-01-06T11:02:40Z Your basic rights As a California port worker, you are entitled to:
  • Safe working conditions: This includes proper equipment maintenance and protection from hazardous materials, as mandated by Cal/OSHA.
  • Fair wages and overtime: California often exceeds federal standards, with a higher minimum wage and daily overtime after 8 hours.
  • Protection against discrimination: California's Fair Employment and Housing Act (FEHA) offers broader protections than federal law.
  • Right to join a union: Protected by both state and federal laws.
  • Meal and rest breaks: California law requires these for most workers, including many port employees.
Remember, the California Labor Code typically offers stronger protections than federal laws.

Spotting labor violations

Watch out for common issues in California ports, including:
  • Wage theft: This can include unpaid overtime or misclassification as an independent contractor.
  • Safety violations: Report these to Cal/OSHA, which has specific maritime industry standards.
  • Discrimination: California law protects against a wide range of discriminatory practices based on race, gender, age, disability and other factors.
  • Retaliation: It is illegal for employers to punish you for asserting your rights.
If you encounter any of these issues, document them thoroughly, noting dates, times and witnesses.

Getting legal help

Labor issues, especially for port workers, can be complex. If you are facing challenging labor disputes, consider consulting a California maritime labor lawyer. They can help interpret state-specific laws and effectively represent your interests. Your work is vital to California's economy. Understanding your rights empowers you to protect yourself and your livelihood. In the complex world of maritime labor law, knowledge is not just power – it is your anchor in turbulent times.]]> On Behalf of Russell Mirkovich & Morrow <![CDATA[3 essential clauses to include in a business contract]]> https://www.rumlaw.com/?p=47236 2024-12-13T16:15:09Z 2024-12-13T16:15:09Z Breach of contract clauses A breach of contract clause defines what constitutes a violation of your agreement. More importantly, it outlines the consequences of such violations. Think of this section as your playbook for handling problems. It's advisable to include specific remedies like monetary damages, steps for resolution and timeframes for cure periods. This clarity helps both parties understand their obligations and potential consequences for non-performance.

Force majeure clauses

The force majeure clause shields your business from liability when unexpected and unavoidable circumstances prevent you from completing your end of the deal. Examples of these events include:
  • Natural disasters and extreme weather events
  • Government actions or regulations
  • Labor disputes or strikes
  • Public health emergencies
  • Supply chain disruptions
A well-drafted force majeure clause outlines how both parties should proceed when faced with events beyond their control. Think of the risks your business or industry faces—these are the events you should consider when writing a force majeure clause.

Termination clauses

Your termination clause outlines how and when parties can end the agreement. Ideally, it should include:
  • Specific grounds for termination
  • Required notice periods
  • Post-termination obligations
Additionally, your termination clause can help address what happens to ongoing projects or any remaining payments. These would help ensure a smooth and amicable end to your agreement.

Making sure your contracts protect you

These three clauses help lay a strong foundation for your business relationships. They protect you when things go smoothly and when they don't. While template agreements might seem convenient, they often miss crucial details specific to your situation and needs. Seeking assistance from a skilled business attorney can help you draft contracts that truly protect your interests. A well-drafted contract will serve as your safety net and may help prevent costly disputes in the future.]]> On Behalf of Russell Mirkovich & Morrow <![CDATA[The Carmack Amendment: A carrier’s guide to liability limits]]> https://www.rumlaw.com/?p=47233 2024-12-02T17:24:50Z 2024-12-02T17:24:50Z The law generally assumes carriers have full liability At its core, the Carmack Amendment operates on the principle of full liability for carriers. This means that if something goes wrong with a shipment, the carrier is generally responsible for the entire value of the lost or damaged goods. Carriers can avoid liability only if they prove one of these factors caused the loss or damage:
  • An act of God
  • A public enemy
  • An act of the shipper
  • Public authority
  • The inherent nature of the goods
If you're claiming an exception, you must provide clear evidence that the loss or damage was due to one of these factors.

There are some ways to limit liability

The Carmack Amendment allows carriers to limit their liability, but there are specific rules to follow. You can't just decide to limit your liability on your own. Instead, you need to create a written agreement with the shipper. Some usually offer the shipper a choice of freight rates, such as a lower shipping rate in exchange for limited liability in case something goes wrong. Take note that the shipper must have a reasonable opportunity to choose between liability options. Another common way to limit liability is through "released value." This is an agreed-upon maximum value for a shipment. If you and the shipper agree that a shipment is worth no more than $1,000, this amount will cap your liability should the goods go missing or suffer damage.

Know your rights and liabilities

Understanding the Carmack Amendment is crucial, but applying it to your specific operations can be challenging. If you're dealing with a complicated liability issue or interstate dispute, consider reaching out to an attorney.]]> On Behalf of Russell Mirkovich & Morrow <![CDATA[Don’t make these five mistakes when incorporating your business]]> https://www.rumlaw.com/?p=47234 2024-12-04T16:26:48Z 2024-11-22T16:24:12Z business structure to utilize. This structure can dictate how much power you have in making business decisions, how income is taxed and what regulations you’ll have to abide by. Although there are several business types you can turn to, one of the most common is the corporation. While there are several advantages to the corporate structure, there are mistakes that can be made along the way when creating a corporation. If you’re unaware of these potential errors, then you could set yourself up for otherwise avoidable issues. You don’t want that to happen, as these mistakes can be costly and devastating to your business.

Mistakes to avoid when creating a corporation

There are several errors that can be made along the way when starting up a corporation. Here are some that you’ll want to be sure to avoid:
  1. Assuming you’re not big enough to incorporate: A lot of people think that you have to be a big business in order to incorporate, so they write off their ability to utilize this business structure. But the truth is that any size business can choose to incorporate, so don’t make the mistake of simply overlooking this business structure as an option.
  2. Overlooking or ignoring regulatory compliance requirements: Before settling on incorporation as your best business option, you need to understand the corresponding regulations that'll attach to you once you go that route. There are strict guidelines that have to be adhered to when you incorporate, otherwise you could face hefty fines and penalties that could devastate the financial well-being of your business.
  3. Unclearly defining corporate roles: As you embark on your business endeavor, you’ll want to ensure that all key players have clearly identified roles in the business structure. If they don’t, then there can later be confusion and disputes that lead to costly litigation and muddled corporate direction. This can stall your business’s growth and even threaten it with dissolution.
  4. Improperly allocating shares: When shareholders come into play, you need to ensure that shares are allocated appropriately. If you don’t, then there could be wide-ranging and long-lasting implications that prove negative for your business. It might be a good idea to speak to an expert about the best way to issue shares, that way you head off any issues that could arise early on in your business’s creation, such as giving too much power to an individual shareholder.
  5. Rushing the process: There’s a lot that goes into the business creation process, especially when you’re pursuing incorporation. Make sure you give yourself enough time to thoroughly think through the issues. If you don’t, then you could make a mistake that proves costly to your business.

Do you have lingering questions about incorporating your business?

If so, then now is the time to find answers to your questions. Don’t wait too long, or you could miss an opportunity to help your business expand and secure a larger market share. So, if you’re ready to figure out your best path forward, then now is the time to seek out any guidance that you may need.]]> On Behalf of Russell Mirkovich & Morrow <![CDATA[When a co-worker’s mistake leads to your maritime injury]]> https://www.rumlaw.com/?p=47230 2024-11-05T13:44:57Z 2024-11-05T13:44:57Z Untrained crews lead to unnecessary risks Safety while working in the maritime industry depends greatly on having the right protective gear and thorough training, things your employer should provide. Even one undertrained crew member can put everyone at risk. Without the right background or experience, a worker might not recognize potential dangers or make errors in judgment. Inadequate training can result in situations where officers don’t know how to use safety management systems, workers are unfamiliar with certain machines or crew members unknowingly stand in dangerous spots. Unfortunately, these lapses may result in severe injuries or even death.

Who is liable for maritime injuries from insufficient training?

The medical expenses and damages from a maritime injury can be overwhelming. If you are injured while working, seek medical attention immediately, notify your employer and document everything you can. Depending on where your injury occurred, you have several options for pursuing compensation:
  • The Merchant Marine Act (Jones Act doctrine): If your accident happened on a vessel due to employer or shipowner negligence, you have the right to file a personal injury claim against them.
  • The Longshoremen and Harbor Workers Compensation Act (LHWCA): If your accident occurred on a dock, you may be entitled to benefits covering medical care, travel expenses, lost wages and rehabilitation.
If these laws don’t apply, you might still receive compensation through state workers’ compensation benefits or by filing a personal injury lawsuit against your employer. Acting quickly and gathering strong evidence can improve your chances of securing what you deserve.

How an attorney can support you

Dealing with legal matters while recovering from an injury can be overwhelming. Moreover, you’ll want to avoid making any mistakes that may delay or hurt your claim. An experienced attorney will know how to navigate the complex legal issues often arising from maritime injury claims. With them by your side, you can make informed decisions and focus on your recovery.]]> On Behalf of Russell Mirkovich & Morrow <![CDATA[Legal challenges in international shipping]]> https://www.rumlaw.com/?p=47229 2024-10-24T09:59:10Z 2024-10-24T09:44:10Z Customs and tariffs The U.S. Customs and Border Protection handles duties and tariffs. Your business must provide correct and complete paperwork to avoid delays and fines. The fines can be hefty, and delays in customs clearance can result in profit loss and damage to your company's reputation.

State regulations

Besides federal rules, California has strict laws for ships. The California Air Resources Board (CARB) sets strict emission rules for all ships docked at California ports. The state also controls how ships manage their ballast water to stop invasive species.

Contract problems

Shipping contracts often involve multiple parties. Arguments can happen over terms, delays or damages. Clear contracts can reduce these risks. California uses the Uniform Commercial Code (UCC) to handle business deals and solve disputes.

Liability concerns

Federal laws, such as the Jones Act and the Longshore and Harbor Workers' Compensation Act, cover accidents at sea. These laws spell out rights and duties in sea operations and ensure fair pay for injuries and damages.

Ensuring compliance

To stay on the right side of the law, consider talking to a lawyer who knows maritime law. They can help your business run smoothly and continue providing excellent shipping services to your customers while remaining compliant and avoiding regulatory penalties.]]> On Behalf of Russell Mirkovich & Morrow <![CDATA[What is the unseaworthiness doctrine?]]> https://www.rumlaw.com/?p=47228 2024-10-08T13:05:40Z 2024-10-08T13:05:40Z Working at sea presents unique dangers and risks. From rough waters to heavy machinery, maritime workers face hazards daily that can lead to serious injuries. If you sustained an injury while working on a vessel, you may have more legal options than you realize. The unseaworthiness doctrine is an often overlooked aspect of maritime law. It could be a valuable option for compensation beyond standard negligence claims. Arming yourself with knowledge of this doctrine could profoundly impact your ability to recover damages.

A powerful tool for maritime injury claims

This doctrine developed from maritime common law and court decisions. It requires vessel owners to maintain high safety standards for ships and equipment. Key points about unseaworthiness include:
  • Unseaworthy vessels lack proper equipment, crew or safety measures for their intended function
  • Faulty machinery, worn ropes or inadequate safety gear can render a vessel unseaworthy
  • Insufficient, untrained, or incompetent crew may contribute to unseaworthiness
  • Slippery decks, loose railings, or improperly stored cargo create unsafe environments
These factors can help you identify potential claims. It is also a good idea to know how this doctrine differs from other maritime injury claims.

How do these claims differ from negligence?

Unseaworthiness claims offer advantages over negligence-based claims under the Jones Act. These differences can affect your case outcome:
  • Strict liability: Unseaworthiness claims do not require proof of negligence.
  • Lower burden of proof: You might only need to show the unseaworthy condition contributed to your injury.
  • No fault requirement: Shipowners may be liable even if unaware of the unseaworthy condition.
  • Broader coverage: Unseaworthiness claims can cover more hazardous conditions than negligence claims.
The unseaworthiness doctrine could be an invaluable legal option for hurt maritime workers. Understanding its application and consulting with a lawyer can steer you towards a better outcome as you move forward with your injury claim.]]>