
PUBLISHED EVERY FRIDAY IN THE "SAMOA NEWS",
"LETTERS OF THE LAW" IS MY LEGAL Q&A LEGAL COLUMN. HOPEFULLY
WRITTEN TO BE BOTH FUN AND INFORMATIVE, I HAVE WRITTEN COLUMNS SINCE
OCTOBER OF 1996. THE RESPONSE FROM THE READING PUBLIC (cir. 20,000)
HAS BEEN POSITIVE, AND THE FUTURE SEES THE COLUMN BEING TRANSLATED
INTO SAMOAN FOR INCLUSION IN THE SAMOAN LANGUAGE SECTION OF THE PAPER
AND THE DREAM IS TO SYNDICATE IN A NUMBER OF PAPERS, AT THE OUTSET
THOSE WHICH SERVE THE VARIOUS SAMOAN COMMUNITIES AROUND THE WORLD.
EVERY COLUMN INCLUDES THE FOLLOWING "CAVEAT", WHICH I SHOULD INCLUDE
HERE JUST IN CASE...
"Letters of the Law" is a weekly column that appears
on Fridays in the Samoa News. The column is written by Brian Thompson
(Esq.), a member of the American Samoa Bar Association who is in
private practise. Mr. Thompson is writing the column as a public
service--we neither pay him nor does he pay us. Mr. Thompson will try
to answer questions posed by you, the readers. There is no charge,
and no guarantees.
In the words of Mr. Thompson, "remember, free legal advice is
worth what you paid for it. If you have a serious legal problem,
contact a lawyer of your choice."
THE FOLLOWING IS IN NO PARTICULAR ORDER. ENJOY,
AND SEND ANY QUESTION YOU MAY HAVE ...

LOANING
MONEY
Dear Brian: A few months ago, I loaned $500
to a down-on-his-luck friend who promised to pay me back when he sold
his car, but we did not have a written agreement. He sold his car and
now claims he owes me nothing. What can I do?
First, practically, it is probably best to stop considering this a
"loan". When you give money to friends and family based on an oral
rather than a written agreement, be prepared to consider it a "gift".
It may be best to chalk this one up to experience and hope your good
deed is rewarded in the future.
However, legally, as your claim is for less than $1,000, you could
bring it in the small claims department of the District Court. There,
you will need to prove the existence of the debt by a "preponderance"
of the evidence; in other words, you'll have to convince the judge to
believe your story that there was a loan more than he believes your
friend's that there wasn't. The fact that the agreement is not in
writing is not fatal to your claim. Only a few types of agreements
must be in writing to be legally enforceable--such as those relating
to the transfer of interests in land. A loan such as this does not
need to be in writing, but you'll find when it comes to proving the
existence of an agreement, it would be much easier if it was in black
and white. Good luck.
INTEREST
Dear Brian: One of my credit cards charges
21% interest!! I thought there was some limit in American Samoa to
the amount of interest a company can charge? Do I have to pay
21%?
In ancient times, a merchant who extracted an exorbitant or
illegally high rate of interest would have their hands cut off as a
penalty. Ouch! Then, 1-2% interest was considered "usurious", the
fancy legal term for an excessive or illegal rate of interest. Today,
what is considered usurious is determined by a particular
jurisdiction's legislature. In American Samoa, except for limited
circumstances when 18% is the upper limit, the Fono has set the upper
limit at 15% for transactions originating in the Territory. However,
according to A.S.C.A. §28.1505, the maximum rate on "credit
cards" is determined by reference to the law of the credit card
issuer's "principal place of business". Chances are your credit card
is issued by a company in a jurisdiction which sets 21% as the upper
limit of allowable interest. Yes, you have to pay, though I would
shop around for a card with a lower interest rate and transfer your
balances to it. I did, and now have cards at 5.7% and 8.9%.
Oh, fortunately or unfortunately, depending on your point-of-view,
the penalty for extracting an usurious rate of interest in American
Samoa is a little less physically painful: possible criminal
conviction and the forfeiture of the debt upon which the usurious
rate was imposed. Still hurts.
WILLS
Dear Brian: When I die, I want to be buried
with a picture of my wife and children. I have a Will, but it doesn't
say this. How can I change it?
When I die, I want to be buried in my Seattle Mariner's baseball
hat (since I will live another 50-60 years, I'm assuming they will
have won the World Series by then ... hopefully). My father--the
professional golfer--wants his ashes scattered over his favorite golf
course. The last place we want these directions to be is in our
wills.
Typically upon death, funeral arrangements and burial take place
before the Will is even read. As it may be many years since you
prepared a will, your friends and family might not remember the
special wishes you had for your burial. There is nothing worse than
reading a Will to a deceased's heirs and discovering the deceased
wanted something special (their favorite hat, a picture). The legal
process and emotional difficulty of exhuming a body is to be avoided.
To avoid it, put your directions as to your funeral and burial in
a document entitled "Advanced Health Care Directive". This document
allows you to appoint successive "agents" (usually a spouse and close
family member) who will make health care decisions for you if you are
incapable of doing so. In the Directive, you can instruct your agents
how to act in certain circumstances: such as instructing them whether
or not you wish to receive artificial nutrition or hydration if you
fall into a terminal condition or permanent coma. It is in the
Directive that you should detail your directions regarding the
disposition of your remains, such as being buried with a picture of
your wife and children. Forms for these documents, sometimes known as
"Living Wills", are usually available at local hospitals (though
apparently not LBJ), or can quickly be prepared by an attorney of
your choice.
Of course, the Directive is only useful if your agents know about
it and know they are your agents. Make a point to update your
Directive every year to ensure it reflects your current wishes, and
then contact your appointed agents to ensure that they still have a
copy of your Directive and are willing to serve their appointed
function.
Dear Brian: Why do I need a Will? I just
want all my assets to go to my spouse and children; won't that happen
automatically when I die?
You're right. If you die without a Will ("intestate" is the legal
term), after paying your debts, your estate will be distributed to
your spouse and children. Your spouse has "dower" rights to 1/3 of
your estate, and your children (or grandchildren if a child is
deceased) share in the remainder. A.S.C.A. §40.01-.02. However,
this process is not "automatic" and therein lies the problem.
Though your spouse and children are entitled to your estate, they
only receive it after going through "probate" in the High Court of
American Samoa. The process of probate is basically the collecting
all the deceased's assets, paying the debts, and then distributing
the remaining assets to the rightful heirs. Though not nearly as
expensive as probate in the United States, it is costly and, more
importantly, can consume a great deal of time. In the past, I've had
the painful job of telling a grieving spouse that she cannot take
money out of her husband's checking account for a few months (her
only source of money) because these assets have to pass through
probate first.
Though each situation is different, everyone needs to plan for
what happens to their assets when they die. Though doing nothing is a
form of planning, it probably is not the most effective. The best is
the use of one or more probate avoidance measures. In the above
example, the husband should have kept the family's money in a joint
checking account with rights of survivorship and the money then would
have passed automatically to the wife without going through probate.
Additionally, through the use of a "trust" arrangement, all of one's
assets can pass to another "automatically", thus never encountering
the delay of probate (which can be important for the continued
success of a family business or for tax purposes). If attorneys are
valuable for anything, it is to help plan for death (which may say
something about why we are not always the most popular profession).
INTERESTING
Dear Brian: Why do lawyers put "esq." after
their names and what does it mean?
"Esq.", short for "esquire", is an English term signifying the
title of the office of barristers at law. It actually identifies an
English title of dignity higher than "gentlemen" but lesser than
"knight". Why American attorneys have adopted it is unclear and there
are some lawyers who reject it as outdated. That most attorneys
continue to use the term has something to do with the fact we study
for many years and receive doctorate degrees, but aren't normally
thought of doctors such as those who study for and receive PhDs. In
other words, we like to show off too. As the term has become
synonymous with the legal profession, I use it as shorthand to
quickly identify my profession on correspondences. As I've been
called much worse (usually by my secretaries), I take no offense if
you don't use it when you write to me.
A brief intermission from your inquires for a few words about a
special day next week which unexplainably is not a legal holiday.
Next Monday is the "First Monday in October"--a celebrated event for
the legal possession--the traditional opening day for the new term of
the United States Supreme Court.
SUPREME COURT -- The Supreme Court
has ultimate (final) jurisdiction over all cases arising under the
Constitution, laws, and treaties of the United States. Without
getting into too much detail, its decisions are binding on the
courts, and thus people, of American Samoa.
The Supremes, as they are sometimes affectionately known, are 9
distinguished men and women who in essence perform two functions:
they interpret acts of Congress and determine whether statutes
conform to the Constitution. Currently, the Supremes are Chief
Justice William Rehnquist and his eight associates: Ruth Bader
Ginsburg, Anthony Kennedy, Sandra Day O'Connor, Antonin Scalia, David
Souter, John Paul Stevens, Clarence Thomas, and Stephen Breyer.
The Justices are nominated by the president, usually approved by
the Senate, and their appointments are for life with removal only by
impeachment (which has never happened). Recent years have witnessed
the retirement of two of the most highly respected jurists of the
past 40 years (and two of my favorites)--Thurgood Marshall and Harry
Blackmun. I've had the honor to meet three of the Justices (Kennedy,
Ginsburg, and Blackmun) and found them all to be imminently
approachable and friendly.
From October to June, the Court holds open hearings from 10:00 AM
until 3:00 PM, Monday-Thursday (they do break for lunch). It is a
sober and dignified procedure throughout, from the moment the red
velvet draperies are opened and the black-robed justices take their
seats to the time the chief justice declares the session at an end.
The public is invited to observe the hearings in the 188
first-come, first-served seats available. As the hearings can be
mind-numbing to even those with legal training, the 188 observers
rotate every few minutes as those watching get their fill of the
experience and yield their seats to others in the long-line waiting
for an opportunity to enter the cathedral-like courtroom and watch
the proceedings. In 1991, while a law student, I had the privilege of
working on a case which found its way to the Supreme Court. I will
never forget the awe I felt entering the courtroom and watching "my"
case being argued to Justices. If there is a Superbowl for lawyers,
that is it.
The great historian/philosopher Alexis de Tocqueville once noted:
"Scarcely any question arises in the United States that is not
resolved, sooner or later, into a judicial question." Though
Tocqueville made that statement in 1834, history has born out his
observation. Supreme Court decisions have touched almost every aspect
of American life and often mirror the times in which they were
decided (not always for the good):
In Marbury v. Madison (1803), the Court established its power to
review acts of Congress and declare invalid those it found in
conflict with the Constitution. In Plessy v. Ferguson (1896), the
Court upheld the doctrine of "separate but equal" facilities for
blacks and whites, but belatedly corrected this terribly decision in
1954's Brown v. Board of Education, holding the practice inherently
unequal and violative of due process. In Standard Oil. Co. v. United
States (1911), the Court broke up the the huge company as an
unreasonable restraint of trade, and set the precedent for the
breakup of Ma Bell years later. In United States v. Nixon (1974), the
Court rejected the president's attempts to keep his papers secret.
Days after the decision, Nixon resigned. In New York Times Co. v.
Sullivan (1964), the Court ruled that the First Amendment guarantee
of freedom of the press protected the press from libel suits for
defamatory reports on public officials unless the officials proved
that the reports were knowingly false.
In Mapp v. Ohio (1961), the Court ruled that evidence obtained in
violation of the 4th Amendment guarantee against unreasonable search
and seizure must be excluded from use at state as well as federal
trials. This "exclusionary rule" is written into American Samoa's
constitution. In Gideon v. Wainwright (1963),the Court held states
were required to appoint counsel for criminal defendants unable to
pay their own attorneys' fees. In Miranda v. Arizona (1966), the
Court held that before any questioning of suspects in police custody,
the suspects must be informed of their right to remain silent, that
anything they say may be used against them, and that they have the
right to counsel.
In Griswold v. Connecticut (1965), the Court expanded the "right
to privacy" by holding that a state unconstitutionally interfered
with personal privacy in the marriage relationship when it prohibited
anyone, including married couples, from using contraceptives. In Roe
v. Wade (1973), the Court further expanded this right to privacy by
leaving the decision whether to have an abortion entirely to a woman
and her physician. In Cruzan v. Missouri (1990), the court ruled that
a person had the right to refuse life-sustaining medical treatment.
These are but a tiny fraction of the important and relevant
decisions the Supreme Court has rendered. Though the public does not
always agree with its decisions, the Supreme Court's prominent place
in American society cannot be diminished and thus the "First Monday
in October" will continue to be a day worthy of a moment of
celebration.
Do you think the O.J. Simpson jury made a
mistake when it found him innocent?
Juries don't find people "innocent", they only determine under the
laws whether a person is GUILTY beyond a reasonable doubt. I always
think of "innocence" is a moral question, while guilt is a legal one.
I've tried to avoid comment on whether I thought O.J. was GUILTY or
not; though I don't think a single person I know hasn't ask me, as a
lawyer, whether I thought he was GUILTY or not. I wasn't at the trial
(though I did follow it closely), and cannot really say whether the
jury correctly determined O.J. was not GUILTY. Under the law, it was
up to the jury to determine whether he was GUILTY or not guilty and
they made their choice.
Of course, GUILTY or not, the standard was GUILTY beyond a
reasonable doubt, and the defense team (with the assistance of some
at best inept police work) was successful in placing some doubt in
the jurors minds whether O.J. was truly GUILTY. If the jurors felt in
their hearts that O.J. was GUILTY, but the actions of the police
placed a reasonable doubt in their minds, they were required to find
him not guilty. It might not seem to be the fairest standard, but as
the great jurist Sir William Blackstone once said (c.1765): "It is
better that ten GUILTY persons escape than one innocent suffer."
Dear Brian: I understand they have a
debtor's prison in Rarotonga. You can't be sent to jail for owing
money in Samoa, can you?
Fortunately, or unfortunately, depending on your perspective, you
cannot. The Bill of Rights of the American Samoa Constitution (Art.
I, §9) provides: "There shall be no imprisonment for debt except
in cases of fraud." Imprisonment for the fraud to which this section
refers must be brought as a criminal action by my good buddies at the
Attorney General's Office. Fraud in this context probably is more
than borrowing money with no present intention or ability of paying
it back, but don't count on that not being considered fraud. Oh,
thanks for the tip concerning Rarotonga--I don't know if it is true
but I'll make sure to bring plenty of traveler's checks when I visit!
As another year in paradise comes to an end, here are some of my
law-related hopes for American Samoa 1997 edition:
1. All of the laws passed by the Fono and signed by the Governor
are actually published and made available to the public (like they
are suppose to be);
2. The Fono appoints a commission to consider revising and
updating the laws as they relate to probate, corporations, commerce,
consumer rights, insurance and others. The laws in these areas are
hopelessly out-of-date and changes (some procedural, some
substantive) are needed to bring them more in line with modern
trends, while of course taking into account the effect of any changes
on Samoan culture;
3. The opening of a branch of the High Court in the Western
District (how about Pava'ia'a--near my office?);
4. Progress on the Courthouse revitalization. The current Court
"warehouse" near the Pago Plaza is better than the dilapidated
old-Courthouse in Fogotogo, but a remodeled Courthouse would be
better than the "warehouse";
5. A change in the name of the Workmen's Compensation Commission
to the Worker's Compensation Commission and a Worker's Compensation
Commission which convenes on a more regular basis;
6. The upper limit for Small Claims Court be raised from $1,000 to
$3,000. The old limit is out-of-date and those individuals looking to
recover relatively small sums $1,000-$3,000 should not have to hire
and pay an attorney to do it for them.
7. The upper limit for District Court be raised from $5,000 to
$10,000. Hopefully, this would help clear the High Court calendar a
bit.
8. Some additional thought to federal court jurisdiction in
American Samoa--but on an all-or-nothing basis. None of this federal
court access for ASG matters but not for private individuals and/or
businesses (which was the last proposal);
9. The funding and appointment of an Administrative Law Judge;
10. I stop using so many parentheticals (if that is possible)(I
don't think it is).
HAPPY NEW YEAR.
EVIL WEEVILS -- Termites eating your
house? Ants carting off all your food? Cockroaches so big they scare
your dog? Who are you going to call? An exterminator? Think again.
Call your trusty lawyer and sue those pesky bugs right out of
existence.
I present this novel piece of advice after reviewing a new legal
book, Famous Trials: Cases That Made History by Frank McLynn (©
1995 Andromeda Oxford Ltd.). Though this collection of fascinating
cases somehow does not include any of my trials--maybe in the next
edition--it does chronicle and summarize in an entertaining manner a
wide selection of, well, famous trials from The High Priest Caiaphas
v. Jesus of Nazareth to the Scopes monkey trial of 1925 to the
Pentagon Papers trial of 1973. The case of St. Julien Residents v.
Local Weevils of 1587, however, caught my attention.
According to the author, "Bringing animals to justice for 'crimes'
was standard procedure in Europe for many centuries. Animals accused
of homicide were tried before secular [civil] tribunals and condemned
to death, exactly as a human being would be. Guilty animals (often
dressed in human clothes) were publicly hanged, burned at the stake,
or whipped and tortured. Such punishment was evidently not intended
as a deterrent, since nobody brought other animals to witness the
fate of their fellows. Pigs most frequently came before secular
courts, and records of 34 cases have been discovered in local
archives in which pigs were executed for the murder of children.
"Most of the animal trials heard in ecclesiastical [church] courts
involved hordes of rodents or insects (rates, mice, locusts or
weevils) accused of destroying property. The pests were necessarily
tried in absentia, and the court would prescribe a religious means of
dealing with them--normally a solemn curse that declared them an
anathema.
"The notion of animals as criminals survived until the end of the
19th century. The last known such trial was a Swiss case in 1906, in
which two men and a dog were tried for robbing and killing a man. The
men were given life sentences, but the dog was condemned to death."
Where's the justice in that?
In the St. Julien Residents v. Local Weevils case, the vineyards
of a small French town were under attack by a horde of evil
weevils--bugs--and the residents sued for the bugs' removal. You'd
expect a quick trial, but the bugs were appointed defense counsel (a
job our public defenders probably would not want to be added to their
duties), who was successful in delaying the proceedings and
apparently securing the court's permission to find the evil weevils a
new home. Unfortunately, the ultimate outcome of the case is not
known, as the archives containing the result were long ago destroyed.
This and the other interesting legal tales in Famous Trials are
available for review on the coffee table in my office. Stop by if
you're interested in learning a little legal history. Oh, I've
checked the statutes and laws, but have been unable to find any
precedent for suing Samoan bugs out of existence. Pay my hourly rate,
however, and I'll pursue the case for anyone interested (absolutely
no guarantees of success however).
PREMARITAL AGREE.
Dear Brian: My fiancee and I waited until
later in life to get married. I have a successful career and somewhat
substantial assets. I'm not planning on it, but my family in the
States says I should take some precautions just in case. Should I
have a prenuptial agreement in the remote chance things don't work
out?
The key to any good relationship is communication and
understanding. For example, my wife likes to communicate her
understanding of our marriage to me on occasion: "what's hers is hers
and what's mine is hers." We do not have a prenuptial agreement, but
neither of us came into the relationship with substantial assets.
Besides its historic and religious underpinnings, marriage is a
legal relationship. If you were buying a car, you would want to know
in advance what happens if it breaks down. The same should be true of
a marriage. A premarital agreement serves this purpose by listing the
parties' separate assets and deciding at a stage when the parties are
on good terms how assets should be fairly divided upon dissolution
(divorce). I've even heard of some prenuptial agreements which list
each spouses' responsibilities as to taking out the garbage, doing
the dishes and other "personal" items (though I doubt these sections
are legally enforceable).
Many states have adopted the Uniform Premarital Agreement Act
which lays out the permissible scope and enforceability of such
agreements. Samoa hasn't, but a premarital agreement probably would
be legally valid in our courts. As upon dissolution the court will
divide the parties' assets in an equitable--fair--manner, a valid
premarital agreement would assist the court by letting it know what
the parties thought was fair at the outset--before problems
arose--and what property each party brought into the marriage. My
advice is to do it.
CONTESTS
Dear Brian: I recently purchased a case of
milk after seeing this ad in the newspaper: "buy one case of ----
milk and get a free raffle ticket to win a $100 shopping spree.
Drawing every Friday." On the next Saturday, I was told they had
indefinitely postponed the raffle because they had only sold one
ticket (mine) and had to sell 14 before they could have the drawing.
Is this legal?
You were robbed, sue 'em. Every wonder why companies in their
"giveaway" contests always include "no purchase necessary to enter or
win" language in the small print? It's because if they don't they've
formed a contract with every person who bought their product hoping
to win the prize and if they do not follow their rules as to the
contest, then they have breached their contract with each and every
purchaser.
With this language included, the law considers these companies to
only be expressing an intent to give a gift in these giveaway
contests and this intention (to give a gift) can be revoked right up
until the time possession of the "gift" passes from the company to
the "winner" of the contest.
If this milk contest did not use the "magic words" in their
advertisement, then you have a contract with them and they breached
it by not holding the drawing as promised. The fact their contest was
not as popular as they hoped is their problem. As the only
participant, you'd be the winner and your damages are easy to
calculate--$100 shopping spree! Smells like Small Claims Court to me.
Additionally, in most jurisdictions, games or contests such as
this are heavily regulated by consumer protection laws. As I've noted
a number of times in the past, American Samoa's consumer protection
statutes are in dire need of updating. However, the Attorney
General's Office does have a Consumer Protection Bureau and it might
pay to give them a call to complain.
COPYRIGHTS
Dear Brian: I am going back to college in
the States for my Junior year. When I do research for papers,
sometimes I see documents with copyright warnings and sometimes I
don't. Can I get in trouble if I copy either?
When an author fixes an original work to a tangible medium of
expression (legalese for things like a piece of paper), copyright
rights automatically arise regardless of whether there is a notation
of federal registration (®). For example, I have copyright rights
in this column. If you copy someone else's original work without
permission, you have violated their copyright rights and could be
liable for actual or statutory damages--as high as $100,000 for
willful infringement.
Don't worry, the copyright laws provide an exception for you. The
"fair use" provision (17 U.S.C.§107) allows reproduction of
copyrighted materials for such things as news reporting, teaching,
scholarship and research. That's you. Remember however that all
schools have rules against plagiarism. If you slavishly copy
someone's words, give them credit by footnote or the like. Oh, and if
I remember one thing from college it's this: stealing from one author
is plagiarism, but stealing from many is research.
Dear Brian: I have a unique name for my
product (_______) and I want to prevent others from using it. What
can I do?
First, stop telling people your unique name. Not all people are as
honest and trustworthy as we lawyers are, and some unsavory
characters may misappropriate it.
Second, secure a trademark. In legalese, a "trademark" is a
distinctive mark, word, design, picture or arrangement that a seller
uses in conjunction with a product which tends to cause consumers to
identify the product with the producer (whew, take a breath). It's
just a unique name people identify with a particular producer, such
as CocaCola soda, Big Mac hamburgers (as opposed to
computers), Ben & Jerry's ice cream--can you tell I'm
heading to the States for a quick vacation?!?
It does have to be unique and distinctive, as opposed to "generic"
or merely "descriptive" such as "cellular" for phones or "aspirin"
for pain reliever. Though once upon a time Aspirin was actually a
trademark, over time it lost its unique quality and came to represent
the product itself, thus becoming "generic" and losing trademark
protection.
Securing a local trademark is easy, even before you start using
it. Under A.S.C.A. §27.0302, all you need to do is file an
application with the Territorial Registrar's Office declaring that no
one else is using the mark and attaching 2 copies of it or a
description of it. The fee is only $10 and once approved your mark is
registered and kept in a book at the TR--which does not contain very
many at this point. You get a certificate of registration, and the
mark is valid throughout the Territory for 10 years, subject to
renewal.
Third, start using your trademark within 1 year. If you don't, the
mark is subject to revocation if challenged by someone else wanting
to use it. A.S.C.A. §27.0304-06. Once registered, you own the
trademark, can prevent others from using it, and can recovery damages
from those who do use it. [Note: there is a separate federal
trademark law and international treaties which apply depending on
where you product is sold]. Oh, once you have a trademark registered,
you can protect it from misappropriation and from becoming generic by
placing the "" symbol by it (option-2 on my Apple
Macintosh, who knows where on lesser computer systems).
BANKRUPTCY
Dear Brian: I operate a business which has
fallen on tough times. Some of my creditors have obtained judgments
against my business (a corporation)and are now trying to seize its
assets. What can I do? Can I declare bankruptcy? Can these creditors
take my personal assets?
Declaring bankruptcy in American Samoa is one thing you cannot do.
There is no local statute providing for the legal remedy of
bankruptcy, and there is no federal court in which to petition for
bankruptcy pursuant to the federal statutes (which is an argument
both for and against the extension of federal court jurisdiction to
American Samoa).
As you've operated your business as a corporation, and if you
haven't extended your personal guarantee to any of the corporate
debt, your personal assets should be safe. One of the benefits of the
corporate form is that the law considers the corporation a distinct
entity (its own person if you will) which shields its owners from
personal liability for its debts. Of course, this rule will only
apply if the owners of the corporation have treated it as a distinct
entity. This means keeping up the corporate records (annual meetings,
boards of directors and officers), maintaining separate bank
accounts, and a number of other steps. If you don't treat the
corporation as a corporation, you (the owners) and your personal
assets run the real risk of being held responsible for the corporate
debts.
Assuming you've properly treated your business as a corporation,
you can go to court and ask that you be given an opportunity to keep
the business running while you pay the judgments over time. The court
will want to know the extent of all the corporate assets and
liabilities, and it may decide to allow a reasonable repayment
schedule. The court is protective of debtors, but it does insist
debtors live up to their responsibilities.
Whoa, wait a minute, I thought you said
there was no bankruptcy in American Samoa. How is Samoa Packing
declaring bankruptcy and what does it mean legally?
Ready to split hairs? Got one? Here we go: a person or company
cannot file for bankruptcy in American Samoa, but orders from
bankruptcy courts in the United States are enforceable here in
American Samoa. Does it make sense? Not really, but that's the way it
is for now unless federal jurisdiction is extended to American Samoa.
Bankruptcy simply means being unable to pay one's debts as they
become due (a condition we are all familiar with at one time or
another). In a traditional bankruptcy, the creditors seek to have a
court declare such a person or company bankrupt and then they seize
and sell (liquidate) assets. This is an involuntary, liquidation-type
of bankruptcy.
Today, most bankruptcy filings for companies are of the voluntary,
reorganization type under Chapter 11 of the Bankruptcy Act. As the
continued operation of the company is more valuable than the sale of
its individual assets, the company continues to run while it, as a
whole, is sold to a third party. The funds from the sale are used to
pay the creditors who have debts which were posted prior to the
bankruptcy filing.
During the bankruptcy proceeding, the company is protected from
its creditors by the "automatic stay" provisions of the Bankruptcy
Act. While this stay is in place, the company cannot pay prior
creditors nor can suits by or against the company proceed unless
approved by the bankruptcy trustee--the person appointed by the
bankruptcy court to oversee the operation of the company during the
proceeding. As the company declaring voluntary bankruptcy has
detailed their creditors to the trustee, the trustee will inform
these creditors in writing of their rights and ask them to submit a
claim to the eventual proceeds of the sale of the company.
In the local case, Van Camps Seafood Co., Inc., the parent company
of VCS Samoa Packing Co. (a client, I should mention), has filed a
voluntary petition for bankruptcy in the United States (San Diego)
under Chapter 11. They will continue to operate while a buyer is
located (and one is already lined up: Tri-Union). Prior creditors
will be compensated through the trustee and out of the funds of the
sale. Current creditors will be paid out of the operation of the
business as usual; well, usual as possible.
Can "bankrupt" residents of American Samoa fly to say Hawaii, file
for bankruptcy, and discharge (clear) their debts here and start
anew? Good question. An individual would have to be a bona fide
resident of the place under the jurisdiction of a bankruptcy court.
In essence, you'd have to move to Hawaii to be able to accomplish
this. Declaring bankruptcy also comes with a lot of baggage (destroys
creditworthiness) and not all debts can be discharged through a
bankruptcy proceeding (such as student loans). If you still are
interested, contact an attorney of your choice to discuss the
options.
EMPLOYMENT
Dear Brian: My employer fired me for no
reason after I worked there for 2 years. Can I sue him?
Sure, you can sue. Of course, you'll lose, which always makes
suing less attractive. Unless you have an employment contract which
provides you can be terminated only "for cause", your employment
relationship with your employer is "at will"--which means you serve
at their will or whim. Your employer can terminate you for just about
any reason.
Now, if the reason you were terminated is discriminatory in some
manner, you may have a cause of action for wrongful termination
pursuant to a variety of federal statutes. Discriminatory reasons are
those based upon a person's gender, religion, national origin, age,
or physical handicap. There are limited exceptions when an employer
can base its employment decisions on these discriminatory factors,
and the laws do not always apply to a particular business. Thus, if
you believe one of these discriminatory reasons is behind your
dismissal, your best bet (short of contacting an attorney) is to
contact the Equal Employment Opportunity Commission for more
information about your rights and remedies.
Dear Brian: Can a person lose their job just
because they've been accused of a crime? I thought it was innocent
until proven guilty?
Hey, wait a minute, didn't I already answer this question. Let me
see ... yeah, here it is: September 6, 1996. Here's the question: "My
ex-employer fired me for no reason after working there for 2 years.
Can I sue?" Here's my astute answer: "Sure, you can sue. Of course,
you'll lose which makes suing less attractive. Unless you have an
employment contract which provides you can be terminated only 'for
cause', your employment relationship with your employer is 'at
will'--which means you serve at their will or whim. Your employer can
terminate you for just about any reason." ... I also said some stuff
about discriminatory reasons.
OK, I guess your question is a little different, but the answer is
still the same. Innocent until proven guilty works great in a court
of law, but unfortunately it seems to have no application in the
court of public opinion. Being charged with a crime is one of those
whimsical reasons your employer can fire you if you are an "at will"
employee--it may not be loyal, but it is legal.
Now if there is a contract of employment involved--and thus you
cam only be discharged for "good cause"--you get my favorite legal
answer: "it depends." It depends on your contract of employment,
which may be comprehensive enough to define what cause means in such
a situation. Of course, if you are arrested for committing a crime
against your employer, I'm pretty confident that would establish
cause for terminating your employment contract.
Of course, outside the collective bargaining (union) contract
situations, most contracts of employment are silent as to this issue.
As such, the effect of an arrest on the performance of your job
responsibilities would determine whether an employer has cause to
fire you. If your arrest results in an inability to perform your
duties (if you are in jail), your employer has cause to terminate
your employment contract. If your arrest has no effect on your job,
then it is less likely an employer would have cause to terminate your
employment contract. The type of crime charged also plays a part (an
arrest for bank robbery of Bank A would probably be cause to
terminate the employment of a bank teller at Bank B).
Employers must take care, or else face suits for wrongful
discharge. Many employers guard against this by placing contract
employees charged with crimes on leave--in essence suspending their
employment contracts--pending outcome of the criminal proceedings.
Dear Brian: Both my wife and I work, but
have a child on the way. Neither of us wants to lose our jobs, but we
want to spend the first few months of the child's life at home with
him or her. Is there anything we can do legally?
As I mention whenever an employment-related question comes up, a
lot depends on your employment status. If you are an at-will
employee, you can loose you job for just about any reason--including
taking time off to care for a newborn. However, if you employed
pursuant to a contract, such as a collective bargaining agreement,
you may have rights to such time off. My favorite answer--it depends.
However, all is not lost. Again, you can thank your federal
government for something--here, the Family Medical Leave Act (29
U.S.C. 2601 for those who care). This Act requires employers to
provide 12 work weeks per year of unpaid leave in certain situations
(e.g. birth, adoption, serious health condition). Though this Act
does apply in American Samoa, it only applies to those who employ
more than 50 workers on any day. This cuts down on the number of
businesses to which it could apply. There are also requirements for
qualification, including length on job (basically 12 months),
advanced notice to the employer, and medical certification of reason
for time off (which is probably easy to establish in your case).
The Act is nice because it allows either spouse to take time off,
and requires your employer to continue some benefits during your
unpaid time off--such as continuing health insurance coverage. It
also requires the employer to give you your old job back or a
functional equivalent. I think it is a good piece of legislation,
especially as it does not adversely affect small businesses who
sometimes really can't afford to meet its requirements.
See if either of your employers comes within the Act. If not, you
can always try another approach--ask nicely for the time off and
appeal to your employers sense of family values.
Is it constitutional for an employer to
require it's employees to work on their Sabbath, regardless if it is
Sunday, Saturday, or another day of the week? How about employees
whose religion requires prayer at certain times of the day--does the
constitution require the employer to accommodate them?
Interesting and topical question which brings up a number of legal
principles, two of which I'll address today. First, it is
constitutional (whether it is legal is another question). "That can't
be constitutional" is a refrain I often hear directed at private
parties and one that is completely unwarranted.
A quick civics lesson. Those rights you have under the
constitution (be it ours or the United States), such as freedom of
the press, religion, assembly, apply against the government not
private individuals.
If the government makes a law which infringes on one of these
rights, then the question of constitutionality comes into play. If a
private party prevents people from assembling on his or her property,
or a book publisher chooses not to publish a certain book, that is
their right and not a "constitutional" issue. Here, a private
employer's failure to respect an individual's first amendment rights
to religious freedom is not a constitutional violation.
However, if your question really was "is it legal for an employer
to require it's employees to work on their Sabbath", then the answer
is no (probably). The United States Congress, under their
constitutional power to make laws affecting commerce, has passed the
Civil Rights Act of 1964, and particularly Title VII of that Act,
which applies to American Samoa and to employers of 15 or more
employees. 42 U.S.C. §2000e-2. The requirements of this Act
answer your question.
Title VII makes it an "unlawful employment practice" to "fail or
refuse to hire or to discharge any individual, or otherwise to
discriminate against any individual with respect to compensation,
terms, conditions, or privileges of employment, because of such
individual's race, color, religion, sex or national origin." Under
Title VII, an employer must accommodate religious needs whenever
possible and terminating an employee because they refuse to work on
their religious holidays would seem to violate the Act.
Ready for the BIG loophole? An employer need not accommodate
religious needs if doing so would subject the employer to "undue
hardship". If the employer has sufficient advanced notice and the
cost of accommodation is de minimis (very small) in terms of expense
or efficiency, then there is no "undue hardship" in accommodating the
religious needs. The burden is on the employer to demonstrate "undue
hardship".
What does this mean on a practical level? Well, evaluating that
for employers is why I get paid the big bucks (OK, medium-sized
bucks), so I'm not giving it away for free. However, here are a
couple of general examples--accommodating time for daily prayers, not
undue hardship; accommodating religious holidays where "identical"
substitute workers available, not undue hardship; accommodating
extended paid leave for a religious mourning period where only a more
expensive supervisor or premium part-time worker could act as
substitute, undue hardship. You get the idea.
ENFORCE.
JUDGMENT
(1) Dear Brian: I sued and won a judgment
against a person who doesn't have any assets in American Samoa, and
who has left Samoa for the U.S. He does have a job and assets there.
Can I enforce my Samoa judgment in the United States?
(2) Dear Brian: Can a civil judgment
obtained in the United States be enforced in American Samoa?
Yes and yes. You can run (well, fly) either to or from American
Samoa, but you cannot hide. American Samoa, and most states, have
adopted the "Uniform Enforcement of Foreign Judgments Act" (A.S.C.A.
§43.17). It allows an authenticated "foreign" judgment (foreign
in this case meaning the United States and its other territories) to
be filed with the High Court and enforced in the same manner as a
judgment of our court. Upon filing, the High Court clerk is required
to mail notice of the filing of the judgment to the debtor. It
basically works the same way for judgments from American Samoa in
U.S. courts. Challenges to the judgment can be raised just as in any
other case, such as not having been made a party to the action from
which the judgment arose, or that the judgment is not final (i.e. it
is on appeal). Depending on the size of your Samoan judgment, contact
either an attorney or collection agency in the place your debtor is
located in the U.S. to discuss enforcing the judgment.
TRAFFIC
FYI!!! A particular high governmental
official has requested I review some of American Samoa's traffic
ordinances. Here's a few of the more prominent rules, all of which
are located in Title 22 of the American Samoa Code:
¥Every driver, except for nonresident active duty military
personnel and their dependents or nonresidents in the Territory for
less than 30 days who possess a valid license from elsewhere, must
possess a valid American Samoa driver's license.
¥You must possess your license whenever driving (though if you
forget it and are stopped, you won't be convicted if you can produce
your license at a later time).
¥You may only pass on the right if your vehicle remains on the
pavement or main-traveled portion of the roadway (don't drive through
someone's yard or a sidewalk).
¥You may only pass on the left ...
¥You must signal (either manually or with blinkers) 100 feet
before stopping in the roadway to make a turn.
¥If a school bus is stopped with its light's flashing, no passing
on either side of the road.
¥No coasting down hills, your vehicle must be in gear.
¥Vehicle headlights must be turned on between 1/2 hour after
sunset and 1/2 hour before sunrise, during heavy rainstorms or other
situations with limited visibility. Parking lights may only be on
when a vehicle is parked, not while driving on the roadway (hence the
name "parking lights").
¥If carrying a load which extends 4 feet or more beyond the bumper
of your vehicle, you must stick a 16 square inch red flag on it. (I'm
told the police are required to carry tape measurers so they
presumably can tell the difference between 3'11" and 4'1").
¥Every occupant of a vehicle must wear a seat belt and small
children (under 3-years-old) must be in a car seat.
¥If involved in an accident causing injury or more than $100 in
property damage, you must render aid to the injured, inform the
police, and stay at the scene until the police arrive, if possible.
¥Every car must be insured at a minimum level. However, these
minimum levels are very low and everyone should carry as much
additional liability insurance as they can afford, and then some.
You'll be personally liable for damages which exceed your insurance
coverage.
¥Extra lights on vehicles (such as in back windows, or lighting
the undercarriage) are probably illegal.
¥DON'T DRINK AND DRIVE, AT ALL. PERIOD.
The rules can be avoided in "emergency" situations when following
them would be dangerous. Oh, emergency vehicle operators (police,
ambulance, fire) are not immune from the rules of the road, unless
they are responding to an emergency. If you see one violating the
rules (such as the seat belt law), note the license plate of the
vehicle, the time of day and report it. I'm sure these government
officials are interested in setting a good example and won't mind
being reminded when they're not.
Dear Brian: I understand Hawaii has just
passed a law making it illegal to ride in the back of a pickup truck.
What is the law in American Samoa about this? The way people stand
and sit on the railing of pickup trucks here seems dangerous.
No kidding. I even had clients in from Japan this week and they
were surprised to see people riding in the back of pickup trucks
because it is (A) illegal in their country, and (B) well, dangerous.
Of course, it really could not be illegal here in Samoa as many
people rely on others for their transportation needs and it just so
happens that pickup trucks in Samoa, with their open backs, are only
slightly outnumbered by the palm trees.
Here, the only laws applicable are the mandatory use of seat belts
or restraining devices for drivers, front-seat passengers, and
children under 4-years-old. A.S.C.A. §§22.0332; .0333. To
say these laws are fully and fairly, rather than selectively,
enforced is a matter of some debate. No law concerning riding,
standing or sitting on the railing of pickup trucks.
In fact, though Hawaii has passed the prohibition on riding in the
back of pickup trucks, the state has left it to individual counties
to decide whether to enforce it. I suspect (well, I read in the
Hawaii newspapers) that the more rural counties will not enforce it
while the more urban ones will--the populations of the more rural
counties presumably more dependent on others for their transportation
needs.
Though I do not necessarily want to see it illegal here in Samoa,
I would like to see a law making it a traffic offense for any person
to stand in the back, or sit on the railing, of a moving pickup
truck, no matter how cool these people think they look when they do
it. It could be affectionately known as the "Butts in the Bed"
Act--"any person riding in the open back of a moving pickup-type
truck must have their backsides planted on the bed of the truck" or
something like that. !!Conflict alert--I proudly represent clients
who would benefit by such a law, but it still is a good idea!!
"NO FAULT"
DIVORCE
What exactly is "no-fault" divorce? Does it
apply in American Samoa or does someone have to be at "fault" to get
a divorce?
Until recently, there were only 5 grounds--all with one parties'
fault as their foundation--upon which a couple could dissolve their
marriage in Samoa: adultery, cruelty, desertion for 6 months, jail
term of more than 10 years, or 5 years separation.
Now that the trend in the United States is to make divorce more
difficult to obtain (especially where children are involved),
American Samoa has finally made it easier. Public Law No. 24-11,
passed earlier this year, amended A.S.C.A. §42.0202 to add
"irreconcilable differences" as a ground for divorce. In essence,
this "no fault" provision allows couples to dissolve marriages which
have simply not worked out, irrespective of whose "fault" it is.
Rather than forcing a particular cases into the "fault" categories
when it does not belong, and thus perhaps wrongfully labeling one of
the parties as an adulterer or the perpetrator of cruelty simply to
expedite an appropriate divorce, the statute now reflects the
realities of modern marriages: sometimes they just don't work.
EXTRADITION
I am a little confused. I thought a person
could only be forced to trial once. However, O.J. Simpson is going to
trial again, those police officers who beat up Rodney King were found
not guilty then convicted at another trial, and I always hear about
someone going to trial again after the jury couldn't decide if they
were guilty--like the Menendez brothers. Isn't there some rule
against this?
That would be the Double Jeopardy Clause, which provides: "No
person shall be subject for the same offense to be twice put in
jeopardy of life or liberty." It allows a government only one full
opportunity to convince a jury to convict a person of a crime. If
they can't, and the person is found not guilty, the government cannot
ever try that person again for the same crime.
The cases you cite are good examples of something I've mentioned
before and will mention again: every law is riddled with exceptions.
As to O.J., the Double Jeopardy Clause does not apply to civil
proceedings because a person's "life and liberty" is not in jeopardy
in the civil setting. All O.J. stands to lose is what money he has
left.
As to the Rodney King police officers, the Double Jeopardy Clause
only prevents the same government from trying a person twice; it does
not prevent separate governments ("separate sovereigns" is the legal
term) from trying one person for the same crime in each jurisdiction.
In the King case, the state government was unable to convince a jury
to convict the police officers of a crime, so the federal government
stepped in and did just that (and to a lesser extent, the charges
were arguably different: assault in the state prosecution, violation
of Rodney King's civil rights in the federal prosecution).
As to "mistrial" situations such as the Menendez brothers (where
the jury could not render a verdict because they could not agree),
the legal theory is that the government has not had one full
opportunity to convince a jury to convict them. In essence, the
protection of the Double Jeopardy Clause only apply once the jury has
rendered a verdict; either guilty or not guilty. Without a verdict,
the law pretends a "second" trial is merely a continuation of the
first. I've seen cases go through 3 or 4 mistrials before finally
reaching a conclusion, allowing the government a "second (and third)
bite at the apple" to correct their mistakes at previous trials.
There is a debate whether this last non-application of the Double
Jeopardy Clause is fair, but it is the law.
TRADESMEN BOARD
Dear Brian: My question concerns the
Tradesmen Board. ASCA 31.0705(c) states "This chapter shall apply to
tradesmen in the employ of the government of American Samoa." If a
tradesman (as defined) does not work for or perform any services for
the ASG, is that tradesman exempt from obtaining a tradesmen's
certificate?
Good question (I didn't even know there was a "Tradesmen Board").
The answer, though, is NO. ASCA 31.0705 provides as follows:
(a) This chapter shall pertain to all individuals desiring to
obtain certificates as carpenters, plumbers, painters, electricians,
masons, millwrights, welders, tinsmiths, tile setters, cabinet
makers, radio/tv repairmen, refrigeration airconditioning repairmen,
draftsmen, auto mechanics, sheet-metal men and such other trades as
the board may, by rule or regulation, from time to time determine
should be within the purview of this chapter. This chapter applies to
those tradesmen who wish to perform services for hire on an hourly,
daily or other basis, including a contractual agreement, but does not
apply to laborers working under the supervision of qualified
tradesmen or tradesmen contractors.
(b) All specialty contractors or g