THE

LAW

G o o d N e i g h b o r s . G r e a t L a w y e r s . Fall 2014, Vol. XIII No. 3

In Thi s I s sue :

The Quarterly Newsletter of:

Legal Dilemma

The ABCs of a raffle licensePage 2

Inside Story

When is a businessvaluation needed?Page 3

Attorney Profile

Anthony Gingrasso practices law to better the communityPage 6

With increasing reports of bullying today, it is natural for parents to worry. Research has shown how bullying can lead to emotional scars, even suicide.

The definition of bullying is deliberate or intentional behavior — words

or physical actions — meant to cause fear, intimidation or harm. It may happen at home, school or in the community.

“Wisconsin doesn’t have a specific law against face-to-face bullying, but it does have one prohibiting cyber harassment,” said attorney Cheryl Gill. “It is unlawful under state law to use a computer, the Internet, email or a communication device to frighten, intimidate, abuse or harass another person. That is considered to be cyberbullying.”

The closest law Wisconsin has concerning general bullying came in 2010 when state law began requiring school districts to define bullying and spell out school responses to incidents. These policies, posted on district websites, define bullying, reporting and investigating procedures and disciplinary actions.

“Most districts have a progressive disciplinary policy that begins with an apology, but has other steps up to and including expulsion,” Gill said. They begin with warnings, consultation with parents, in-school and out-of-school suspension and, ultimately, expulsion.

Another legislative attempt to address bullying came last year when a bill was introduced to fine teachers and other school employees $200 for not reporting incidents of bullying. It did not pass, in part because the Wisconsin Association

Cheryl Gill

of School Boards felt it would have unintended consequences, such as overidentification of incidents as bullying for fear of fines. It also could lead to districts narrowing the definition of bullying, which might prevent students from getting the help they need.

The policies we have today may not have as much teeth as parents would like because both the victim and the abuser have a right to education.

Wisconsin Law on Bullying Limited

How can you protect your children when they’ve been bullied at school?

“First, it’s important to recognize there is a difference between normal kid behavior and bullying,” said attorney Cheryl Gill. “Kids can be mean, but there is a difference between someone saying ‘I don’t like you’ and bullying, which has to be with intent to harm or harass.”

The time to call police or a lawyer is when a student’s action has crossed a line—perhaps into something physical or truly threatening. If you do not receive appropriate action at school, you might then call police or hire a lawyer.

Unfortunately, even putting your child in another school may not end the problem. “You could pull your child out of school and put him in another, but bullying could go on there as well,” Gill said.

Takeaway TipAs a parent, your job is to protect the interests of your children, but do keep in mind that while kids can be mean, there is a difference between someone saying“I don’t like you”and bullying, which has to be with intent to harmor harass.

Good Ne i ghbo r s . G r e a t L awye r s .

L E G A L D I L E M M A

The LAW EXCHANGE is

published quarterly to inform our

clients and colleagues of legal trends

and decisions. This information

should be viewed as a general

summary. Please contact your

Johns, Flaherty & Collins attorney

for specific legal advice. If you

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the attention of the EDITOR,

THE LAW EXCHANGE at the

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P.O. Box 1626

La Crosse, WI 54602-1626

Phone: 608-784-5678

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Holmen501 Empire Street, Suite 102

Holmen, WI 54636

Phone: 608-526-9320

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You may also subscribe online

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I volunteer with the parent-teacher organization at my child’s school, and we’re planning a raffle-style fundraiser. One of the parents said we need a license from the state in order to conduct our raffle. Is that true? If it is, what steps do we need to take?

Question:

Answer:Your parent-teacher organization does need a license for a raffle, but there are different kinds of raffle licenses under Wisconsin law, according to attorney Gifford Collins.

Since raffles are considered a form of gambling, the

application is made through the Wisconsin Department of Administration’s Division of Gaming.

• In a Class A raffle, tickets may be sold up to 270 days in advance—as well as on the day of the raffle. Pre-printed raffle tickets must include the name/address of the sponsoring organization and its license number; a list of prizes worth more than $500, the time and place of the drawing and must stipulate that the buyer does not have to be present to win. The name of each ticket buyer and his or her contact information is written on the ticket stub so winners can be contacted.

• In a Calendar Raffle, which also requires aClass A license, multiple drawings are sold on a single ticket. They are held on specific days listed on a calendar.

• Class B raffle tickets are sold the day of the event and use a generic ticket. Winners must be present to win.

“Separate applications for Class A and B raffles must be made, even if both are held the same day,” Collins said, adding approval takes four to six weeks.

Organizations eligible for holding raffles are religious, veteran, fraternal, service, schools and charitable organizations that are tax-exempt under the Internal Revenue Code.

Documentation needed with the application depends on the type of organization. Also, a license cannot be transferred to another organization or person. Those conducting the raffle may not be paid for the work.

“If the raffle license is not used properly and if profits are not used locally, the organization could lose its fundraising privileges permanently,” Gifford said. “Choose the person who conducts the raffle wisely.”

Gifford Collins

Takeaway TipEligible organizations need a license in order to hold a raffle since it is a form of gambling. That requires planning in advance for getting the license and special care to make sure rules are followed and funds managed appropriately.

“The goal of a

valuation is to

determine what a

third party would

pay for it.”

~ Greg Bonney

Does Your Business Need a Valuation?

Greg Bonney

As a business lawyer, Greg Bonney is periodically asked about business valuations. Business owners want to know when valuations, which can be costly and time-consuming, are warranted.

Bonney advises business owners to consider seeking a valuation

• If they are thinking about selling the business or developing a succession plan.

• If they are seeking a loan using the assets of the business as collateral.

• When a stockholder or other owner dies.

• When thinking about gifting the business or a portion of the business.

When a valuation is needed, Bonney generally works with the company accountant(s) to determine the process to be used in determining a value. The method used and the items to be considered in the valuation depend on the type of business.

Items to be considered may include the value of equipment, financial statements, service or manufacturing contracts in place and other factors an appraiser feels impact the value of a business.

Equipment figures heavily in a valuation of a manufacturer, but less so in a service business where the equipment may be little more than desks and computers. What adds value in a service business, such as a dental practice, is in the patient and contact base and the reputation of the owner and business.

“The intangibles are tricky. How many patients will stay with that practice after it is sold?” Bonney asked. “Will the patients stick around after the dentist or other staff move on? Also, will the prior owner stick around for the transition?”

There is no single way to place a value on a business, and appraisers usually use multiple approaches to arrive at an accurate value. Of course, the most accurate value of a business is the amount a willing buyer pays a willing seller.

“The goal of a valuation is to determine what a third party would pay for it,” Bonney said. “There are a lot of different factors to be considered, depending on the particular company, the business of the company, its owner, its experience and its reputation.”

In 2013, the Wisconsin Division of Gaming awarded 9,636 raffle licenses and denied another 71 requests. (Source: Wisconsin Department of Administration)

Legal Statistic

Takeaway TipThe idea behind a business valuation is to determine how much someone would pay for a business if it were sold. The process can be costly and time consuming, but is needed in special circumstances, such as in planning for the sale or gifting of a business.

Johns, Flaherty & Collins, SC

The death of one owner in a business partnership triggered a valuation so the surviving partner knew what was needed to buy out the portion of the business in his deceased partner’s estate.

This could have been a tricky situation, but attorney Greg Bonney had convinced the partnership to develop a buy-sell agreement outlining the process for transferring the business in case of certain events, such as a death.

“It’s always easier for clients who have that kind of agreement in place because it provides a method of determining a value and the terms of sale and purchase if the parties are unable to reach an agreement,” Bonney said.

The agreement called for two appraisals to be made of the business, which would then be averaged to set the buyout cost. It also established

a timetable for payment, with the surviving partner using life insurance proceeds to pay the majority of the purchase price.

“I always advise businesses with two or more owners to have a buy-sell agreement,” Bonney said. “If they can’t agree on what to do when they separate, they can follow that previously established agreement.”

It is a good idea to develop a

buy-sell agreement outlining

the process for transferring

the business in case of certain

events, such as a death or

partner separation.

Case study: Business Partners Separate

No one knows better than human resources professionals the range of issues they face in any given day, much less any given year. From unemployment and disability issues to everyday policies and practices, local employers know each decision potentially carries legal implications.

That’s why Johns, Flaherty & Collins, SC, is returning on Tuesday, Oct. 21, with its annual employment law seminar. This year’s seminar, What If? A Look at the Practical Side of Employment Law, will take a new, more interactive approach. Johns, Flaherty & Collins employment law attorneys will present different personnel and employment scenarios that often happen in local workplaces and track the

implications of different facts, issues or twists on the scenarios. Through a what-if question-and-answer approach, participants will learn how current employment laws relate to real-life situations in areas such as disability, Family & Medical Leave Act, workers compensation, unemployment and more.

The seminar is free and open to all area employers and managers. Advance registration is requested by Oct. 14, 2014. For more information or to register, visit johnsflaherty.com/ employmentseminar or call Johns, Flaherty & Collins at 608-784-5678.

What If? A Look at the Practical Side of Employment Law

TuesdayOctober • 21 • 2014Registration 7 a.m. Seminar 7:30-9 a.m.Lunda CenterWestern Technical College

Registration requested by Tuesday • October 14

johnsflaherty.com/ employmentseminar

Good Ne i ghbo r s . G r e a t L awye r s .

B R I E F S

Attorney Brent Smith, a board member for the Western Wisconsin Chapter of JDRF, was named volunteer of the year along with fellow members of the JDRF-La Crosse advisory committee for their stellar work on the first-ever JDRF-La Crosse Evening of Hope Winter Gala. The event sold out and raised more than $115,000 toward finding a cure for type 1 diabetes. JDRF formerly was known as the Juvenile Diabetes Research Foundation.

Greg Bonney will present Decisions by Choice: Intentional Estate Planning for Women and Their Families to Coulee Region Professional Women on September 23.

Ellen Frantz presented at the Wisconsin State Bar’s seminar entitled “The ABC’s of Being a Child in the Legal System.” The seminar was sponsored by WisPact.

Gifford Collins served on the training committee for “Stopping the Commercial Sexual Exploitation of Our Children.” The seminar was sponsored by a collection of La Crosse-area

organizations and people working to eradicate modern slavery.

Sonja Davig and Brian Weber are again supporting the Holmen Athletic Booster Club, which supports athletic programs and co-curricular activities in the Holmen School District. Both attorneys practice law in the firm’s Holmen office.

Kim Riemenapp joined Johns, Flaherty & Collins as firm administrator, replacing Mary Ann Duncan who retired in July. Kim brings nearly 20 years of administrative and financial experience. In her new post, she’ll

be managing the firm’s business operations and finances.

Stay Informed Whether you’re into Facebook, LinkedIn, Twitter or blogging, we’re there. Stay informed about the latest legal news that affects you and receive top tips for everything from business and estate planning to divorce and traffic law. So choose the vehicle that’s best for you and stay up-to-date between newsletters.

Brent Smth

Greg Bonney

Sonja Davig Brian Weber Ellen Frantz

Gifford Collins

Kim Riemenapp

JOHNS, FLAHERTY & COLLINS ATTORNEYS:

Robert D. Johns, Jr. RetiredRobert P. Smyth

Maureen L. Kinney

Terence R. Collins

Brent P. Smith

Peder G. Arneson

Ellen M. Frantz

Gregory S. Bonney

Cheryl M. Gill

Sonja C. Davig

Brian G. Weber

Joseph G. Veenstra

Brandon J. Prinsen

Anthony R. Gingrasso

Gifford M. Collins

PARALEGALS:

Lisa L. Felt

Teresa Nielsen

Jill Sherry

Anthony Gingrasso

The importance of continuing education is one lesson that Anthony Gingrasso learned at Hamline University School of Law that has stayed with him.

“It’s why it is called the practice of law,” said Gingrasso, a new associate at Johns, Flaherty and Collins. “You must be

prepared to continually learn in your practice, not only in the law but also your local community.”

A 2008 Hamline graduate, Gingrasso joined the firm in May, after six years with another La Crosse practice.

His work includes business, real estate, family, children’s and elder law.

Gingrasso is pleased to be part of Johns, Flaherty & Collins because of the excellent reputation it holds in the legal services it provides along with the encouragement for all staff members to be “good neighbors.” He is vice president of the La Crosse Kiwanis Club, serves on the Hunger Task Force Board and volunteers with the YWCA.

“I want to carry on this firm’s traditions as a very good place to practice law and for making a difference in our community,” he said.

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P R O F I L E

Anthony Gingrasso