issue pdf:09292008 - Crain`s Cleveland Business

CCLB 09-29-08 A 18 CCLB
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9/25/2008
2:59 PM
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CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
SEPTEMBER 29-OCTOBER 5, 2008
Summer good to hot Steris stock
But company execs,
citing a number of
factors, expect firm’s
momentum to continue
By CHUCK SODER
[email protected]
has been acquired by
The undersigned acted as financial advisor to
Gallo Displays, Inc. in this transaction.
For more information, please call (216) 589-0900
or visit www.wesrespartners.com.
Steris Corp. had a great summer,
but the end of the season doesn’t
necessarily mean the end of the
sunshine.
The Mentor-based maker of
sterilization products saw its stock
close on Sept. 9 at $38.21 — a new
all-time high when prices before a
2-for-1 stock split in 1998 are excluded
— after climbing more than $11
a share in five months. Even after
the battering to most stocks that
followed the recent turmoil on Wall
Street, Steris still traded at around
$37 a share last week.
Part of the increase followed the
company’s Aug. 8 announcement
that its first-quarter profits exceeded
expectations. However, Steris officials and a few analysts said they
expect the company’s recent good
fortune to endure, thanks to internal
restructuring and trends that favor
COMMISSIONERS
Jimmy Dimora
Timothy P. Hagan
Peter Lawson Jones
Smart Start 2008
A Public/Private Summer Youth Employment Project
Cuyahoga Board of County Commissioners—Youth Development Initiative
Operated by Youth Opportunities Unlimited
Thank you
One busy CEO
Thank you to over 120 employer organizations who made it possible for over 870 youth ages 14-18, who live
throughout Cuyahoga County to have a summer job through SmartStart 2008.
The youth developed employability skills, learned many new technical skills, and had countless social interactions: valuable experiences that will help them succeed in the workplace. Their earnings, over $1,000,000, will
help their families buy clothes, defray expenses, and go towards the things that help them grow. The money is
reinvested back into our county’s economy, and the work undertaken by so many of these employer organizations
is helping thousands of other county residents.
Thank you, employers, for helping the youth who need you today…
they will be the workforce that helps you tomorrow.
Above and Beyond Childcare
BROMA Information Technology
Building Blocks Academy
Building Bridges Mural Program
CAP - Culinary Arts Program
CCSC Fatima Center
City of Bedford Heights
City of Cleveland Heights
City of Cleveland Div. of Recreation
Clark Recreation Center
Corey Recreation Center
Cudell Recreation Center
E J Kovacic Recreation Center
Earle B. Turner Recreation Center
Fairfax Recreation Center
Glenville Recreation Center
Gunning Recreation Center
Halloran Park Recreation Center
John F. Kennedy Recreation Center
Kenneth Johnson Recreation Center
Lonnie Burton Recreation Center
Stella Walsh Recreation Center
Thurgood Marshall Recreation Center
Zelma George Recreation Center
Forest Hills Pool
Gassaway Pool
Glendale Pool
Glenview Pool
Grovewood Pool
Ken Johnson Pool
Kerruish Pool
Lonnie Burton Pool
Luke Easter Pool
Meyer Pool
Neff Pool
Sunrise Pool
Warsaw Pool
City of Cleve. Hopkins International Airport
City of Euclid Recreation Dept.
City of Garfield Heights
City of Middleburg Heights Recreation Center
City of Parma
City of Warrensville Heights
Clark-Metro Development Corporation
Cleveland Clinic
Cleveland Department of Public Health
Cleveland Municipal School District
Charles Elliot K-8 School
Collinwood High School
East Tech High School
Franklin D. Roosevelt Pre K-8 School
Glenville High School
Harvey Rice School
John Adams High School
John F. Kennedy High School
John Hay High School
Max Hayes High School
South High School
Concordia Care
Council for Economic Opportunities (CEOCG)
Cuyahoga County Office of the Public Defender
CVS
East Cleveland Board of Education
Chambers Elementary School
Heritage Middle School
Mayfair Elementary School
Prospect Elementary School
Shaw High School
Superior Elementary School
East Cleveland Childhood Development
East Cleveland Municipal Court
East Cleveland Police Department
East Cleveland Service Department
East Cleveland Water Department
EB Katz
Enlight
Euclid Child Development Center
Euclid City School District
Central Middle School
Forest Park Middle School
Glenbrook Elementary School
health care companies.
The internal changes include new
executives — CEO Walter Rosebrough Jr. among them — as well as
two cost-reduction efforts, a new
sales strategy and several new products.
Steris officials wouldn’t say what
they thought was the biggest reason
for the boost in the company’s profits
and stock price, but Dan Owczarski,
senior analyst for medical devices
at investment banking firm Avondale
Partners LLC of Nashville, said
the new leadership likely is it. The
previous CEO, Les Vinney, had been
in the role for seven years, a period
when the company’s stock price
rarely exceeded $30.
Mr. Rosebrough, who replaced
Mr. Vinney last October, had spent
more than 20 years as a senior
executive in the health care industry,
including a stint as CEO of Hill-Rom
Co., a subsidiary of medical technology and health care services
company Hillenbrand Industries
Inc. of Batesville, Ind.
“It seemed like (Steris) was stagnant and needed a breath of fresh
air,” Mr. Owczarski said.
Euclid City Schools Div. of Groundskeeping
Indian Hills Elementary School
Lincoln Elementary School
Memorial Park Elementary School
Roosevelt Elementary School
Thomas Jefferson Magnet School
Upson Elementary School
Freedom Ministry Enhancement
Garfield Heights Community Center
Good Shepherd Baptist Church
Helen S. Brown Center
Hillcrest Family YMCA
Huntington National Bank
Huron Road Hospital
Jamocha Arts Center
JUMP Academy
JumpStart Inc.
Kathryn R. Tyler Center
Laborers Local 860
LaParade Child Care Center
MAGNET
Martin Luther King Civic Center
Merrick House
Ministry of Reconciliation
Murtis H. Taylor Peace In the Hood Program
Neighborhood Leadership Institute
Nottingham Youth Center
Restoration Homecare Agency
State Farm Insurance
The Boys and Girls Club of Cleveland
Tom Paige Catering Company
Total Beauty Care
Tri-City Non Partisan Independent Political Org.
United Way of Greater Cleveland
US Bank
Valley Ford Truck
West Park Fairview YMCA
Youth Devoted to Christ Ministry
Youth Opportunities Unlimited
Zaremba
Mr. Rosebrough declined to be
interviewed, said Stephen Norton,
director of corporate communications at Steris, which makes sterilization machines used in hospitals and
other industries, disinfectant lotion
and other hospital equipment.
Though Mr. Norton would not
say what the largest factor in the
company’s growth was, he noted that
Mr. Rosebrough “is actively engaged
in every level” of the company.
Mr. Rosebrough and other new
executives also played a significant
role in enacting Steris’ most recent
cost-cutting plan, according to a
March interview with the company’s
former communications director,
Aidan Gormley. The $30 million
cost-cutting plan was a big factor in
helping improve profits at Steris
and will continue to pay off through
fiscal 2009, which began April 1, Mr.
Norton said.
The plan is producing savings
through an undisclosed number
of administrative staff cuts, most
of which are taking place at the
company’s Mentor headquarters,
as well as through overhead cost
cutting and the renegotiation of
vendor contracts, Mr. Norton said.
About 850 employees work in
Mentor now.
Steris also is starting to see
savings from its decision to move its
Erie, Pa., manufacturing operation to
Monterrey, Mexico, Mr. Norton said.
That decision, announced January
2006, was made during Mr. Vinney’s
tenure as CEO.
Production slowdowns followed
the move, but the Mexican plant
since has reached the production
level of the Erie plant, Mr. Norton said.
He also cited as a contributing
factor the company’s decision to set
quarter-to-quarter goals for its sales
force instead of annual targets to
produce more “consistent execution from quarter to quarter.”
In addition, Steris since June 2007
has released five new products that
have gained positive attention, Mr.
Norton said.
“It’s a combination of all of those
factors,” he said.
‘Why not Steris?’
Profits at Steris in the fiscal first
quarter that ended June 30 nearly
doubled, to $25.5 million from $13.2
million in the year-ago period. Pershare profits rose more, increasing
to 43 cents from 20 cents, because of
fewer shares outstanding this year.
Mr. Owczarski said Avondale
Partners rates the stock a “market
outperform” not just because of those
numbers, but also because its position in the health care market makes
it resistant to current economic
troubles and puts it in position to
serve the world’s aging population.
“This week I’ve been saying, ‘Why
not Steris?’” Mr. Owczarski said
Sept. 17.
Matrix U.S.A. of New York rates
Steris a “hold” but could
upgrade it to a “buy” if the company
builds on recent momentum, said
managing director Daniello Natoli.
Steris’ past performance has held
it back on Matrix’s ratings system,
which compares companies to
the Russell 3000 Index and others
in the same sector. The recent
increase in sales and profits,
however, bodes well for a company
that already is in a growing market,
Mr. Natoli said.
“Steris is well positioned to capitalize on that trend,” he said.
Still, the company faces challenges
and has yet to show it can sustain its
performance, said Elliott Schlang,
managing director of institutional
research boutique Great Lakes
Review of Shaker Heights.
Steris shows promise, but it like
other companies faces rising prices
for raw materials, and there’s no
guarantee the boom in hospital
construction will continue, Mr.
Schlang said. His firm rated the
company a “hold.”
“We’re looking for a good
September quarter,” he said.
So is Mr. Norton.
“It’s just one quarter,” he said.
“It’s a good start.”
■
CCLB 09-29-08 A 19 CCLB
9/24/2008
4:24 PM
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SEPTEMBER 29-OCTOBER 5, 2008
GREAT LAKES PAIN MANAGEMENT:
Dr. Sherif Salama to medical staff.
GOING PLACES
Kristen Schrader to staff accountants; Jeremy Herbert to staff
accountant.
JOB CHANGES
ARCHITECTURE
THE AUSTIN CO.: John Cardilino,
Steve Tressler and Larry Williams
to mechanical designers; Mike
Furlong to CADD supervisor; Lee
Hribar to senior project architect;
Mang Lian and Roman Perkis to
electrical engineers; Gretchen
Schwab to CADD operator; Audrey
Shuster and Frank Trunzo to
structural engineers; Sam Talameh
to mechanical engineer.
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
PEASE & ASSOCIATES INC.:
James Kara to staff accountant.
UNIVERSITY HOSPITAL CASE
MEDICAL CENTER: Dr. Cliff
Megerian to the Richard W. and
Patricia R. Pogue Chair in Auditory
Surgery and Hearing Sciences.
HOSPITALITY
HEALTH CARE
COMFORT KEEPERS: Diana L.
Chike to client care coordinator.
INTERCONTINENTAL HOTELS
CLEVELAND: Bertrand Mangeot
to director of front office.
COMMUNITY HEALTH PARTNERS:
Dr. James Anthony to medical
director and medical review officer,
Occupational Health Center.
SHERATON INDEPENDENCE
HOTEL: Jill Vance to director of
sales; Linda Des Forges to senior
sales manager; Beckee Jackson
to corporate catering manager;
Susan Fauskey to sales manager;
Jamie Housley to social catering
manager; John Guercio to sales
coordinator.
INSURANCE
AON RISK SERVICES NORTHEAST
INC.: Kevin Garvey to associate
account executive; Michelle
Mendes to originator, Aon Private
Risk Management Insurance.
LEGAL
BRICKER & ECKLER: Richard H.
Blake to partner.
FRANTZ WARD LLP: Timothy J.
Pillari to associate.
TUCKER ELLIS & WEST LLP:
Edward A. Gecovich to associate.
MANUFACTURING
EATON CORP.: Gary Klasen to vice
president, external communications.
FERRO CORP.: Mark H. Duesenberg to vice president, general
counsel and secretary.
Send information for Going Places to
[email protected] or kratliff-null@
crain.com.
BURT HILL: Thomas Veider to
project manager.
VOCON INC.: Jakecia Brown, Kristi
Gerard and Blair Kodman to project
designers.
DISTRIBUTION
THE CHAS. E. PHIPPS CO.: Kevin
Kasner to vice president of sales;
Tony Filipovic to vice president of
administration.
Salama
Megerian
Garvey
Mendes
Blake
Klasen
Wherever your
business leads,
our health insurance
follows.
EDUCATION
JOHN CARROLL UNIVERSITY:
Jonathan Smith to vice president
and executive assistant to the
president; Richard Mausser to vice
president for finance and treasurer.
KENT STATE UNIVERSITY: Deborah
C. Huntsman to executive director,
Office of Continuing and Distance
Education.
ST. IGNATIUS HIGH SCHOOL:
David Figueroa to alumni director.
ENGINEERING
BBC&M ENGINEERING INC.: Eric
A. Angyal to Northeast Ohio regional
manager.
FINANCE
FEDERAL RESERVE BANK OF
CLEVELAND: Kelly A. Banks to vice
president, community relations;
Susan M. Kenney to vice president,
egovernment treasury services;
Henry P. Trolio to vice president,
information technology services;
George E. Guentner to assistant
vice president.
FINANCIAL SERVICE
ALLEGIANT ASSET MANAGEMENT
CO.: Calvin Zhang to senior investment
analyst/portfolio manager.
BROWN GIBBONS LANG & CO.:
Jacob S. Vogel and William L.
Rottschaefer to associates; Conor
J. Mitchell and Tanay Parekh to
analysts.
BROCKMAN, COATS, GEDELIAN
& CO.: Raymond Dunkle, Thomas
Hastings, Raymond Lampner and
Don Snyder to directors.
CIUNI & PANICHI: Dan Reilly and
Across Ohio or the nation, SummaCare has you covered.
Our expanded network includes hundreds of top hospitals and
thousands of providers. And, with unexpectedly personal customer service,
consider SummaCare this enrollment season. To learn more, call your
agent or visit www.summacare.com.
19
CCLB 09-29-08 A 20 CCLB
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9/24/2008
4:24 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Amount: $6,926
TAX LIENS
The Internal Revenue Service filed tax
liens against the following businesses
in the Cuyahoga County Recorder’s
Office. The IRS files a tax lien to
protect the interests of the federal
government. The lien is a public notice
to creditors that the government has a
claim against a company’s property.
Liens reported here are $5,000 and
higher. Dates listed are the dates the
documents were filed in the
Recorder’s Office.
LIENS FILED
Balance Builders Inc.
4710 Fenwick Ave., Cleveland
ID: 20-3799689
Date filed: July 28, 2008
Type: Employer’s withholding,
unemployment
Amount: $11,553
Brooklyn Chiropractic Inc.
5592 Broadview Road, Suite 107,
Parma
ID: 27-0044620
Date filed: July 21, 2008
Type: Employer’s withholding
Amount: $10,385
Costello Automotive Inc.
11015 Briggs Road, Cleveland
ID: 34-1863104
Date filed: July 21, 2008
Type: Employer’s withholding
Amount: $10,295
Big Kahunas Inc.
6959 Carol Drive, Independence
ID: 01-0768792
Date filed: July 28, 2008
Type: Employer’s withholding,
unemployment
Amount: $9,588
Plus Mark Inc.
1 American Road, Cleveland
ID: 34-1234452
Date filed: July 14, 2008
Type: NA
Amount: $8,500
Anthony Roccos Hair Design
6124 Highland Road, Highland Heights
ID: 04-3726680
Date filed: July 8, 2008
Type: Employer’s withholding,
unemployment
Amount: $8,399
14012 St. Clair Inc.
14012 Saint Clair Ave., Cleveland
ID: 04-3704902
Date filed: July 14, 2008
Type: Corporate income
Amount: $8,167
Hicks Tavern Inc.
11919 Miles Ave., Cleveland
ID: 34-1345586
Date filed: July 2, 2008
Type: Employer’s withholding
Rossi & Sons Inc.
4317 W. 130th St., Cleveland
ID: 14-1944872
Date filed: July 8, 2008
Type: Employer’s withholding
Amount: $6,796
Patrician Inc.
9101 W. 130th St., North Royalton
ID: 34-1291383
Date filed: July 21, 2008
Type: Employer’s withholding,
unemployment
Amount: $6,136
Rossi & Sons Inc.
4317 W. 130th St., Cleveland
ID: 14-1944872
Date filed: July 8, 2008
Type: Employer’s withholding
Amount: $6,111
Auto Clinic Car Care LLC
3275 W. 117th St., Cleveland
ID: 51-0630022
Date filed: July 14, 2008
Type: Employer’s withholding
Amount: $6,057
Ban Steel Co.
17625 Saint Clair Ave., Cleveland
ID: 34-1950023
Date filed: July 2, 2008
Type: Employer’s withholding
Amount: $5,758
LIENS RELEASED
AKM Childcare Centers Inc.
SEPTEMBER 29-OCTOBER 5, 2008
4020 Verona Road, South Euclid
ID: 11-3732794
Date filed: March 5, 2008
Date released: July 28, 2008
Type: Employer’s withholding
Amount: $14,870
BKDW Inc.
815 Crocker Road, Westlake
ID: 20-2268302
Date filed: April 21, 2008
Date released: July 8, 2008
Type: Employer’s withholding
Amount: $5,701
Capital Planners Inc.
25101 Chagrin Blvd., Suite 100,
Beachwood
ID: 34-1521358
Date filed: Dec. 27, 2006
Date released: July 8, 2008
Type: Unemployment, failure to file
complete return
Amount: $24,751
Carl P. Norman Co. D.D.S.
P.O. Box 200429
ID: 34-1311430
Date filed: Nov. 5, 2007
Date released: July 8, 2008
Type: Employer’s withholding
Amount: $9,970
CMS Properties Inc.
25801 Lake Shore Blvd., Apt. 30,
Euclid
ID: 34-1744306
Date filed: Sept. 14, 2007
Date released: July 8, 2008
Type: Corporate income
Amount: $10,826
Comfort Wear Inc.
2261 Warrensville Center Road,
University Heights
ID: 31-1502585
Date filed: March 3, 2008
Date released: July 21, 2008
Type: Employer’s withholding
Amount: $18,461
I T ’S J U S T A C H A I R .
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Donnert Enterprises Inc.
401 Broadway Ave., Bedford
ID: 34-1653897
Date filed: April, 7, 2008
Date released: July 14, 2008
Type: Employer’s withholding
Amount: $6,116
Healthrapid Inc. TA Urgent Care
6739 Ridge Road, Parma
ID: 20-4135845
Date filed: Jan. 16, 2008
Date released: July 14, 2008
Type: Employer’s withholding
Amount: $5,949
Highbanks Care Center LLC
DBA Highbanks Care Center
22021 Brookpark Road, Fairview Park
ID: 51-0466223
Date filed: Feb. 8, 2008
Date released: July 28, 2008
Type: Unemployment
Amount: $6,935
Jacobsen Home Furnishings Co.
2950 Whipple Ave. N.W., Canton
ID: 34-0476952N
Date filed: March 19, 2002
Date released: July 2, 2008
Type: Return of excise taxes
Amount: $259,591
James H. Houston D.D.S. Inc.
T/A Severance Smile Center
601 Rockwell Building, Cleveland
ID: 34-1488966
Date filed: Aug. 5, 1998
Date released: July 2, 2008
Type: Employer’s withholding
Amount: $5,718
LaMarcas Master Pizza Ltd.
6643 Mayfield Road,
Mayfield Heights
ID: 34-1929009
Date filed: Feb. 18, 2005
Date released: July 8, 2008
Type: Employer’s withholding,
unemployment
Amount: $119,201
Larsen Architects Inc.
12506 Edgewater Drive, Lakewood
ID: 34-1577650
Date filed: March 17, 2008
Date released: July 28, 2008
Type: Employer’s withholding
Amount: $45,512
Leighton Industries Inc.
33595 Bainbridge Road, Suite 205,
Solon
ID: 11-3656104
Date filed: May 14, 2007
Date released: July 2, 2008
Type: Employer’s withholding
Amount: $65,373
Leighton Industries Inc.
33595 Bainbridge Road, Suite 205,
Solon
ID: 11-3656104
Date filed: May 14, 2007
Date released: July 2, 2008
Type: Employer’s withholding,
unemployment
Amount: $23,394
Little Feet Ltd.
8161 Broadview Road,
Broadview Heights
ID: 34-1792856
Date filed: March 12, 2007
Date released: July 21, 2008
Type: Employer’s withholding,
corporate income
Amount: $55,678
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CCLB 09-29-08 A 21 CCLB
9/24/2008
4:25 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
SEPTEMBER 29-OCTOBER 5, 2008
INSIDE
26 ADVISER:
ECONOMY
CHALLENGES
FRANCHISES.
Solicitors
balance
expertise,
neutrality
LEGAL AFFAIRS
BROACHING
t
r
A
y
Bod
Law directors legal
voice of municipality
LEFT: Adcom
Communications employees
James Abrams
(left), Lara
Schmida and
Dustin Elliott
display their
tattoos at the
Cleveland
advertising an
web development firm.
Employees are
permitted to
display nonoffensive
tattoos and
body piercings.
BELOW: Dustin
Elliott displays
one of his
tattoos in the
firm’s office.
By SHARON SCHNALL
[email protected]
A
ttorney I. James Hackenberg knows what skill is
essential not only to be a
successful municipal law
director, but a long-running one.
“The key is not to take sides and
remain neutral, and that sometimes
is difficult to do,” said Mr. Hackenberg, law director for Kirtland Hills
Village and solicitor for the Village
of Madison. “But what you should
learn quickly is today’s worst
enemies are tomorrow’s best
friends.”
That insight serves him well.
Mr. Hackenberg, managing
partner of the
Painesville law
INSIDE: Solicitors
firm Baker,
or law directors
Hackenberg &
must have the
Hennig Co.
right personality
LPA, was
to effectively serve
Mentor’s law
in the position.
director from
Page 22
1972 to 2002.
He has been Kirtland Hills’ law
director since 1976, and returned this
year as Madison’s solicitor, after a
previous stint from 1971 to 1980.
How solicitors and law directors
are selected varies by village and
city.
“In a village, council appoints the
solicitor; or if the voters have
approved an alternative method of
selection, then the solicitor may be
appointed by the mayor with council
approval,” said John Gotherman,
general counsel for the Ohio
Municipal League and Ohio
Municipal Attorneys Association.
“In cities without a charter, the
position is an elected one,” he added.
“In chartered cities, the city law
director may be appointed by the
mayor, city council, city manager, or
elected by the people or by some
combination of those alternatives.”
Attorneys with a full-time practice
routinely serve as part-time village
solicitors.
“A full-time solicitor would be
overkill. We’re not of the size where
that would make sense,” said John
Dishong, the Village of South
Russell’s council president. “This is a
great option for us. We get the value
we need for what we can afford.”
Since 1998, South Russell’s representatives have contracted with
attorney David Ondrey of the
Chardon law firm Thrasher, Dinsmore & Dolan LPA. Mr. Ondrey said
See SOLICITOR Page 22
JASON MILLER
PHOTOS
Some firms flexible, but employers within
rights to require tattoo, body piercing coverage
By KATHY AMES CARR
[email protected]
A
s the professional workplace becomes more
socially and culturally
diverse, more employers
may draw up a specific policy when it
comes to addressing appropriate
displays of body art, a human resources
professional and employment law
attorney say.
Local employers representing a
range of industries, from health care
to advertising and law firms, vary on
whether they have a specific policy
addressing body art, and one firm is
in the process of incorporating a standard into its general appearance policy.
Each company’s approach to body art
and piercings vary, but brand image
and customer expectations largely
seem to indicate whether employees
can tout their art.
In general, companies may have policies that limit their employees’ personal
expression, as long as such policies do
not result in discrimination against a
protected class under equal employment opportunity laws, says Lori Long,
a local human resources consultant.
See ART Page 23
DIFFERENT STROKES
Firms vary on their body art approach.
Here are some perspectives:
■ Benesch, Friedlander, Coplan &
Aronoff LLP: The law firm will be drafting a
policy requiring that body art be covered.
■ MetroHealth: The health care institution
says body art and piercings should be
covered for safety and image reasons.
■ Adcom Communications: Non-offensive
tattoos and piercings are permitted.
21
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Page 1
22 CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
SEPTEMBER 29-OCTOBER 5, 2008
LEGAL AFFAIRS
Solicitor: Law directors
also practicing attorneys
continued from PAGE 21
he is the firm’s fifth attorney to serve
South Russell in the past 57 years.
Mr. Ondrey was solicitor for another
Geauga County community, the Village of Burton, from 1986 to 2007.
Village solicitors or law directors
are the primary go-to people for a
diverse list of needs: employment
issues, including workers’ compensation; probate, estate and income
tax concerns; open records requests;
misdemeanors; zoning, construction
and real estate matters.
“If you’re getting the idea that the
village law director learns a lot of this
stuff as it comes up, that’s a pretty
fair impression,” said Thomas Reitz,
a partner with Christley, Herington &
Pierce of Aurora who has been the
Village of Hiram’s solicitor since 1988.
“I think that’s true of many areas
of law,” said Mr. Reitz, who last year
also became the Village of Mantua’s
solicitor. Both Hiram and Mantua
are in Portage County.
After 28 years, Oberlin law director
Eric Severs still is learning nuances of
the job, although with longevity,
most matters recycle themselves. He
deals with human resources issues
arising from the Family Medical
Leave Act of 1993, the Americans
with Disabilities Act of 1990 and the
Fair Labor Standards Act of 1938.
At times, he provides legal counsel
concerning law and order issues at
Oberlin College and green energy
issues for the town’s electric plant.
Mr. Severs also represents the city’s
boards and commissions.
“Understand, I represent not
only council but all the department
heads,” said Mr. Severs, who also
runs Oberlin law firm Eric R. Severs
Co. “I also represent the municipal
court including police and fire.”
While infrequent, these legal
experts may recommend that their
clients seek outside counsel.
“I know when to pursue a matter,
when to resolve a matter and when to
retain a law firm,” Mr. Severs said.
Mr. Reitz said he has not tried an
eminent domain case; he would
recommend using outside counsel.
Likewise, Mr. Hackenberg would
defer to attorneys with labor law expertise for negotiations with unionized employee groups.
Although these municipal clients
offer practice stability, they cannot
be treated as the only client. Mr.
Severs, who is a sole practitioner,
devotes 50 to 80 hours a month to
his law director duties in addition
to his other clientele.
The villages of Hiram and Mantua
represent 40% of Mr. Reitz’s workload. Mr. Hackenberg said his two
Lake County accounts make up 15%
of his client time. When Mentor was
in the mix, it was more than 40%.
The three attorneys interviewed
maintain work weeks in excess of 40
hours, and all are masters of prioritization. For attorneys practicing in a
law firm, the municipal workload can
be delegated, as needed, to other attorneys in the practice. Not so, for a
sole practitioner.
“I’ve always (said) I would put
this job ahead of my private practice and I have,” Mr. Severs said.
“No one forced me to be the city’s
attorney.”
■
PERSONALITY MATTERS
MARC GOLUB
Attorney I. James Hackenberg, solicitor for the Village of Madison and law
director for Kirtland Hills Village, whose village hall is seen in the background,
says maintaining a fair, balanced position is the key to retaining the job. Mr.
Hackenberg has been Kirtland Hills’ law director since 1976.
Baker Hostetler is pleased to
be named Best Corporate
Law Firm in Cleveland
– by Corporate Board Member magazine
Baker Hostetler, with more than
600 lawyers across the country, has been
helping businesses achieve, maintain and
defend leadership positions in their markets
for more than 90 years.
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Cincinnati
Houston
Cleveland
Los Angeles
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Columbus
New York
Costa Mesa
Orlando
Denver
Washington, DC
Attorney Thomas Reitz could not
imagine having been a law director
or village solicitor in the earliest
years of his career.
Mr. Reitz joined the Aurora law
firm Christley, Herington & Pierce in
1988 and became Hiram’ s solicitor
in 1998, after the previous solicitor,
Gary Pierce, died. Mr. Pierce also
was a partner in Mr. Reitz’s firm.
By then, Mr. Reitz had gained
experience with many aspects of
law, including municipal law. But,
critical to being solicitor, he said he
had developed a “bedside manner”
to address differing concerns and
emotions of the village council,
mayor, employees and citizens.
“(The solicitor) stays above the
fray,” said John Dishong, the Village
of South Russell’s council president.
“He provides us guidance. ... He
states the facts and doesn’t pontificate.”
Since 1998, attorney David
Ondrey of the Chardon law firm
Thrasher, Dinsmore & Dolan LPA
has been South Russell’s solicitor.
Inevitably, when a solicitor or law
director renders legal advice, someone is going to be unhappy. A law
director’s counsel — objective and
based, in part, on interpretation of
local, state and federal codes —
can support one or more council
members over others or all of council but not the mayor.
The law director or solicitor must
tell those parties why he respectfully
disagrees with their reactions, Mr.
Reitz said. The person must explain
why he or she is obligated to follow
the law and not, for example, get
involved in operational disputes.
“They (solicitors) need to be the
voice of reason,” Mr. Dishong said.
— Sharon Schnall
Lawsuits over texting charges
pushing cell carriers’ buttons
By JEFFREY SILVA
RCR Wireless News
I
t’s official. The plaintiffs’ bar
smells blood.
The mobile-phone industry
suddenly finds itself under
siege over rising text messaging
prices; there are now five different
class-action antitrust lawsuits
against the nation’s largest
wireless carriers over the issue.
The growth followed Senate
Judiciary antitrust subcommittee
Chairman Herb Kohl’s (D-Wis.)
announcement that he was looking
into the matter. And that’s not
counting a slew of consumer classaction lawsuits top cellular carriers
face over extra charges for text
messages and other content that subscribers claim they didn’t authorize.
The class-action antitrust lawsuits contributing to the texting
tsunami are playing out in federal
courts in Illinois, Ohio, Kansas
and, now, Texas.
Where is all the antitrust litigation against the wireless industry
headed? As a procedural matter,
the next likely stop is the Judicial
Panel Multidistrict Litigation, a
body created by Congress that
consolidates similar suits and
transfers them to a single U.S. District court for further proceedings.
The filing to date of five antitrust
class-action lawsuits in various
federal courts further raises the
financial stakes and legal exposure
for AT&T Mobility, Verizon Wireless, Sprint Nextel Corp., T-Mobile
USA Inc. and, in one case, Alltel
Communications LLC.
One of the first class-action
antitrust texting lawsuits brought
against the four national wireless
carriers in Illinois federal court
attracted nationwide media attention. But that suit, which alleges
conspiracy among top wireless
providers to increase the price of
text messages over the past three
years from 10 cents to 20 cents each,
turned out just to be the beginning.
The four additional antitrust
class-action texting lawsuits strongly
suggest the mobile-phone industry
has a much bigger legal problem on
its hands. Tthe antitrust class-action
lawsuits signal that trial lawyers
across the country believe they have
zeroed in on a legal vulnerability
among service providers in the $143
billion mobile-phone industry.
The mushrooming of antitrust
and billing class-action lawsuits
against top cellular operators has
begun to take on the appearance of
the kind of massive litigation on
early termination fees that resulted
in settlements and court judgments
costing wireless carriers tens of
millions of dollars.
■
CCLB 09-29-08 A 23 CCLB
9/24/2008
4:26 PM
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SEPTEMBER 29-OCTOBER 5, 2008
CRAIN’S CLEVELAND BUSINESS 23
WWW.CRAINSCLEVELAND.COM
LEGAL AFFAIRS
Art: Industry, image affect firm approach
continued from PAGE 21
Michelle Arendt, an attorney at
Ogletree, Deakins, Nash, Smoak &
Stewart in Cleveland, expands on
the concept.
“Employers must have a legitimate
business reason for having a body art
policy, and they must be consistent
when they apply it,” Ms. Arendt said.
“Our policy is loose, but I think it
depends on the field,” said Joe Kubic,
CEO of Adcom Communications in
Cleveland. “For an individual to think
he or she can present themselves in
any way that is counterproductive
to how the firm presents its brand
indicates the individual probably
shouldn’t work there.”
According to a 2006 report by the
Journal of the American Academy of
Dermatology, 24% of individuals ages
18 to 50 have tattoos, and 14% have
at least one body piercing other than
an ear piercing.
“Each department has the
right to expand upon our
general appearance policy,
primarily for safety
reasons.”
– Bruce Reimer
manager of employee
and labor relations, MetroHealth
One local law firm said the trend
is concerning, and plans to take a
more proactive approach to body
art displays.
“We’ll be drafting a policy on body
art in the workplace over the next
year. We take a very conservative
approach to body art, and no tattoos
or body piercings, beyond ear piercings, will be permitted,” said Mark
Biddlestone, director of operations
and human resources at Benesch,
Friedlander, Coplan & Aronoff LLP.
Region of the American Red Cross.
“Sometimes it’s not feasible to
cover them up, but if anything, the
feedback on my tattoos has been
positive, not negative,” Mr. Wagner
said. “But I’m flexible. If I were told
to cover them up, I would.”
Mr. Wagner represents a majority
of professional employees Ms.
Arendt said she believes are directed
more by personal judgment than
policy when it comes to personal
expression.
“I have a tattoo on my ankle, but
when I was interviewing for the
position, I covered it up. I didn’t
want to draw attention to it either
way,” she said.
Mirifex Systems LLC, a Sharon
Center-based IT consulting firm,
also has a general appearance policy,
and some employees who work
inside the firm’s office expose
tasteful tattoos.
But for consultants working out
in the field, they are expected to
dress according to the environment
by which they are surrounded, said
Mirifex CEO Bill Nemeth.
“If the consultants are working
in a bank, they have to dress like
they’re in a bank,” he said.
Something up their sleeves
The Sherwin-Williams Co.
represents a diverse conglomerate
of employees, but their policy is
the same no matter the department, said spokesman Mike
Conway. “Our store employees can
wear short-sleeved or long-sleeved
shirts, but if they have a tattoo on
their arm, they have to wear the
long-sleeved shirt,” he said.
However, strict dress code guidelines can diminish the talent pool.
Ms. Long advises clients to consider carefully the reasons for imple-
menting a body art policy.
“To say they don’t like body art
isn’t a good enough reason,” said Ms.
Long, who also is an associate business professor at Baldwin-Wallace
College. “Otherwise, they may risk
passing up good job candidates.”
Whether they have specific rules
addressing body art, these employers
all say they’ve never had an employee
challenge the dress code.
That’s not to say it won’t happen in
the future, said Ogletree’s Ms. Arendt.
“If a company is thinking about
drafting a dress code policy in their
handbook, my advice is that the
company should take a position on
body art and incorporate it into their
policy,” she said. “It’s likely to come
up.”
■
MY BENESCH
“Technology companies face
unique legal issues. Thankfully,
we don’t face them alone.”
Mike Broderick
Co-founder & CEO
Turning Technologies
Dress for the job you want
Most employers don’t have
specific policies addressing tattoos or
piercing, according to the Society for
Human Resource Management, a
global professional human resources
association. A 2006 survey of 434
randomly selected human resource
professionals found that 35.9% of
organizations have formal or informal
policies addressing body piercings.
Fewer than one-fourth, or 22.3%,
have a formal or informal policy
addressing tattoos.
On a warm summer day, for
instance, you may see any number of
employees exposing their tattoos at
Adcom, which isn’t a problem at the
web development and ad agency. Mr.
Kubic said he estimates between 30%
and 40% of employees have a tattoo
or body piercing, a number he said
represents the increasing prevalence
of body art on individuals.
But if employees are serving in a
role that represents more client and
patient interaction, for example,
companies and institutions have the
right to enforce additional dress code
limitations, Ms. Arendt said.
“Each department has the right to
expand upon our general appearance
policy, primarily for safety reasons,”
said Bruce Reimer, manager of
employee and labor relations at
MetroHealth.
Jeff Wagner said his tattoo is visible
when he wears short-sleeved shirts
while on the job as a supervisor for
the Northern Ohio Blood Services
M Y
T E A M
According to Inc. magazine, Turning Technologies is the fastest-growing privately held software company in the nation. They also top
the Weatherhead 100 list. In less than seven years, Turning Technologies has grown to 110 employees with distribution in 84 countries,
which presents some interesting legal challenges. That’s why they trust Benesch as their general counsel. Our team approach gives Turning Technologies
access to legal experts with a wide array of specialties ranging from global IP protection and human resources to mergers and acquisitions.
To learn more about our relationship with Turning Technologies, visit beneschlaw.com/myteam
Cleveland • Columbus • Philadelphia • Shanghai • Wilmington
Featured attorneys (left-right): Gregg Eisenberg, Christopher Reuscher, W. Scott Harders, Ross J. Kirchick, Gary Yashko, Mark Avsec, Bryan Schwartz, Steve Auvil, Donald Keller, M. Casey Kucharson, Rick Tracanna, Bryan Jaketic, Joseph Gross and Laura Beresh.
© 2007 Benesch Friedlander Coplan & Aronoff LLP
CCLB 09-29-08 A 24 CCLB
9/24/2008
4:26 PM
Page 1
24 CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
SEPTEMBER 29-OCTOBER 5, 2008
LEGAL AFFAIRS
After foreclosure,
people still have
housing options
Former homeowners
likely renting or
living with family
By KATHY AMES CARR
[email protected]
W
arner Troibner never
dreamed he’d lose his
home to foreclosure.
But after the mortgage loan officer’s six-figure,
commission-only income was cut
in half, he filed for Chapter 7 bankruptcy in June. His 2,400-squarefoot Westlake split-level, for which
he paid about $2,000 a month, in
July was sold at a sheriff’s sale. Mr.
Troibner moved into a 1,300square-foot ranch in Fairview Park,
which he is renting from a client for
$1,000 a month.
“My credit score went from 750
to 600,” Mr. Troibner said. “I took
my credit report with me and was
very up front with (the landlord)
about my situation.”
Mr. Troibner is among an
increasing number of individuals,
representing a broad economic
spectrum in Northeast Ohio, who
have lost their homes to foreclosure.
Because their credit is damaged
and mortgage lending practices are
stricter, they have to rent or move
in with family, say area housing
research organizations.
“A lot of these people have
income and a job,” said Bill Faith,
executive director of Coalition on
Homelessness and Housing in Ohio,
a housing advocacy group. “It would
seem most people are going back to
renting. Where else would they go?”
Mr. Faith and housing industryrelated and legal professionals say it’s
difficult to determine where these
individuals are going once they lose
their homes, and much of their
surmise is based on anecdotes, not
hard facts.
The effects
According to RealtyTrac, a foreclosure information provider,
foreclosure filings were reported on
37,689 Ohio properties in the
second quarter of 2008, the thirdhighest total in the country and a
rate of one in every 134 households,
the nation’s sixth-highest state
foreclosure rate. Foreclosure filings
don’t necessarily lead to foreclosures, in which borrowers lose the
title to their property.
July foreclosure rates throughout
Northeast Ohio were particularly
high in Cuyahoga, Lorain, Summit
and Stark counties, where the
figures ranged from one in every
189 households in Summit to one in
JANINE BENTIVEGNA
Warner Troibner says he and his son, Max, are content in their new Fairview Park ranch, which Mr. Troibner is renting.
The mortgage loan officer lost his home in Westlake to foreclosure after his income fell because of housing-related woes.
“It would seem most
people are going back to
renting. Where else would
they go?”
– Bill Faith
executive director, Coalition on
Homelessness and Housing
every 306 households in Cuyahoga.
Indeed, foreclosure is affecting
everyone, said Kim Hammond, a
foreclosure department attorney at
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Keith D. Weiner & Associates Co. in
Cleveland.
“We’ve seen foreclosures in the
more affluent areas like Shaker
Heights, Chagrin Falls and Pepper
Pike,” she said.
A foreclosure, however, stays on
an individual’s credit report for
seven years, making it difficult for
an individual to obtain another
mortgage loan, said John Kozlowski,
general counsel for the Ohio Credit
Union League, which represents
about 80% of Ohio’s credit unions.
Most banks won’t allow people
who lose their homes to foreclosure
to obtain another mortgage loan for
three years after the bank has sold
and transferred the property, said
Glenn K. Franko, a Realtor with
Real Living Realty One’s Cleveland/Lakewood office.
Housing alternatives
With a variety of economic
circumstances affecting so many
people, such as job loss, a sick
family member or divorce, individuals can find landlords who are
willing to consider the big picture
and allow them to rent, despite
their negative credit.
“People need to find a way to
explain their circumstances,” said
Jay Seaton, president of the nonprofit Consumer Credit Counseling
Service, which has offices throughout Northeast Ohio.
Securing a rental unit from a
reputable renter, however, can be
especially difficult if the individual
defaulted on other payments, such
as utilities, said Ralph W. McGreevy,
executive vice president of Northeast Ohio Apartment Association,
which represents apartment owners
and managers.
“I know where they’re not ending
up, and that’s in the more professional landlord units because
they’re not doing credit and criminal
background checks,” Mr. McGreevy
said.
But if people who lost their
homes still kept their utility payments
current, they may have more rental
options than those who let all
payments go into default. The
attempt demonstrates financial
responsibility, he said.
HOUSING COUNSELING
Help is available for individuals
who face foreclosure, according to
Mark Wiseman, director of Cuyahoga County’s Foreclosure Prevention Program, which connects
distressed borrowers with nonprofit
counseling agencies through United
Way’s First Call for Help line. Since
March 2006, the program has
received 10,000 calls from
individuals facing foreclosure, and
counselors have been able to keep
2,500 people in their homes as a
result of the program.
Jay Murdock, executive director
of the Stark County Out of Partnership program, echoed similar
advice. The program also provides
housing counselors and works with
lenders to help keep borrowers in
homes.
“We officially started doing
mortgage intervention and housing
counseling in July, and so far, we’ve
done five loan modifications,” he
said. “We’re not turning anyone
away.”
Details: www.dontborrow
troublecc.org or www.scopp.org
Another alternative becoming
more attractive for people who have
lost their homes is a lease option or
lease purchase. In a lease option,
individuals have the option to buy the
home after a specified lease period.
“They’re basically glorified
renters, but are responsible for
property maintenance, rent and
possibly even a down payment,”
Mr. Franko said.
Mr. Troibner has opted to pursue
a three-year lease purchase, so after
three years, he will buy the Fairview
Park home.
“Lease purchase is like owning a
home but without having the title,”
Mr. Troibner said.
Losing the larger home was
unfortunate, but Mr. Troibner
advised people who have been
through similar situations to look at
the big picture with optimism.
“I’ve learned to do more with
less,” he said. “I’m one of the
people it worked out for. I’m a
survivor.”
■
CCLB 09-29-08 A 25 CCLB
9/25/2008
1:26 PM
Page 1
SEPTEMBER 29-OCTOBER 5, 2008
CRAIN’S CLEVELAND BUSINESS 25
WWW.CRAINSCLEVELAND.COM
LEGAL AFFAIRS
THEINTERVIEW
MICHAEL BRITTAIN
President
Cleveland Metropolitan Bar Association
By ARIELLE KASS
[email protected]
L
ess than a year after the
region’s two competing bar
associations merged to form
the Cleveland Metropolitan
Bar Association, the board’s first
solo president — Calfee, Halter and
Griswold attorney Michael Brittain
— said he’s been thrilled by how
smoothly the merger has gone.
There are no competing factions
within the Bar, he said, and the
group is expanding its efforts to
enroll more people, including
judges, who were hesitant to join
either the Cleveland or Cuyahoga
County bar associations in the past.
Mr. Brittain has a number of
initiatives he hopes to pass through
in his year as president, including
the creation of a three-year strategic
plan and more interaction with
nonprofit organizations.
Here, he talks about the challenges
he sees for the group going forward
and the successes it has already had.
Q: How does the Metropolitan Bar
differ from its predecessors?
A: Internally, we perceive ourselves as
one bar association, not one of two
bar associations. We have a focused
vision of who we are. It’s beneficial
because now when we speak, we
speak with the voice of all Cleveland
lawyers, so we have a stronger voice.
The judges all say it’s great because
now there’s one bar association that
we can belong to and one bar association we can work with, so that’s
been great. Externally, my adversaries are shaking my hand and saying this is such a great thing. …We’re
able to attract more lawyers because
people say there’s one bar, there’s no
confusion, and we speak with a
stronger voice. We can provide
greater service, I think, to the community because now we’ve got all the
lawyers behind our programs.
Q: How has what you’re doingchanged?
Q: What challenges do you face
going forward?
A: One of the biggest challenges we
face is attracting the lawyers in our
community who never belonged to
either bar association. One thing we
thought and still believe is that, by
consolidating the bar association, we
could go to nonmember lawyers with
a new message, saying, ‘We are a new
bar association. We are committed to
serving all the lawyers in our community, all size law firms, all practices.
And we want you to belong because
we want you to believe what we
believe — that this is a great bar association — and to truly be part of our
legal community, you need to belong
to this bar association.’ And I think
that’s true because more judges are
joining now. I think what we’re going
to have is this whole community of
lawyers and judges who belong to
our bar association, and you’ll really
feel part of this community if you
belong to it, you’ll network with other
lawyers and judges and have an
opportunity to lead. The great thing
about a bar association is it gives
lawyers a vehicle to be leaders. Not
just in the bar association, but in the
community.
Q: How would you describe the
personality of the Cleveland
Metropolitan Bar Association?
A: I think it’s a hybrid. I don’t think
either personality of the old bar associations is really active. I was involved
on the negotiating team. … The more
we got involved in the negotiations,
the more we realized we were so
much alike. The historic reasons for
having two bars were really in the past.
Q: Why did it take so long for the
two groups to merge?
A: I think it was the fact that lawyers
are such creatures of habit, and both
bar associations and the persons who
were leading those bar associations
were in the habit. … We were in
comfort zones. Change is always
difficult, but change is always exciting.
People were in those comfort zones;
they were stuck in their habits.
year 2000. At the last minute, it fell
through, because strong factionalism reared its head. I think the
leadership in place at that moment,
when we started talking in February
2007, the leadership was of the same
mind on both sides. It was a negotiation of equals, and that was very
important. It had to be a consolidation. If you treat it that way, you’re
going to be successful.
And really at the end of the day, we
want the same thing. We want to
help others through the practice of
law, we want to stand up for justice,
we want to stand up for fair and
impartial courts, we want to protect
liberties and people’s rights, and we
want to have a prosperous legal
career. We all want the same thing.
And let’s do it together.
■
Q: Will there ever be a need for
two bars again?
A: This is the right way to do it. It’s
just right to have one bar in this
town. We are a united legal community. We’re a diverse community,
but we’re united. We’re all lawyers.
3&46-54
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Q: Why was this finally the right time?
A: If anything, we’re doing more.
More is expected of us, because we
are one bar association now and we
have to serve all our constituents.
A: This was an evolutionary process.
The two bar associations came within
a heartbeat of consolidating in the
“We speak with the voice of all Cleveland lawyers, so we
have a stronger voice.”
– Michael Brittain
president, Cleveland Metropolitan Bar Association
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RUGGERO FATICA
CCLB 09-29-08 A 26 CCLB
9/26/2008
11:23 AM
Page 1
26 CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
SEPTEMBER 29-OCTOBER 5, 2008
LEGAL AFFAIRS
Sluggish economy challenges franchise model
C
hallenging business
conditions have some
franchise owners wishing
they never took the plunge.
Of course, that’s also true for
some owners of non-franchise
businesses, but franchised businesses are different from non-franchised businesses in important
respects.
Franchises typically involve a
business concept developed by
someone else — the franchiser —
where the franchiser owns the business name and imposes a uniform
Tuesday, October 7, 2008
11:30 am Registration • 12 Noon Lunch & Program
CHANCELLOR
ERIC FINGERHUT
DR. MICHAEL
SCHWARTZ
MODERATED BY
LEON BIBB
Board of Regents,
State of Ohio
President,
Cleveland State University
Emmy Award-Winning
Anchor, NewsChannel 5
For more information, go online: www.ccatlanderhaven.com or call 440.449.0700
DIGITAL INVESTIGATIONS
We turn digital evidence into intelligence.
system of operating rules on several
independently owned businesses —
the franchisees. The franchiser
provides training to new franchisees
and implements marketing and
advertising programs for the
common benefit of all franchisees.
These benefits come at considerable cost to franchisees in the form
of initial franchise fees, continuing
royalties to the franchiser and loss
of control over a variety of significant business decisions. For example,
franchisees may have little say
regarding how much to charge for a
product or service and where to
buy necessary products or services.
Because franchisers control so
many aspects of their business,
franchisees can end up feeling
betrayed when they fail.
The stereotypical franchise agreement contains more than 40 pages of
legal terms intended to protect the
franchiser. Franchise agreements
promise little to the franchisee, yet
require much from them. Franchisees get the message that they
must take the offer or leave it, and
they sometimes sign the agreement
without having an attorney review it.
A franchisee may reason that if other
people operate under the agreement,
it must not be too bad. Only later do
they discover the possible pitfalls.
The franchiser might be able to
require franchisees to comply with
promotions like a $1 menu or 2-for-1
product giveaways; that could force
franchisees to sell at a loss, yet still
owe a royalty to the franchiser. In a
10-year franchise agreement, even if
the franchisee goes out of business
after three years, the shareholders
might still be personally liable to the
franchiser for lost royalty payments
or liquidated damages for the full 10
years. Sometimes, franchisees end up
feeling that a franchiser has not kept
pre-sale promises, but the written
agreements typically exclude any
DIGITAL INVESTIGATIONS
We turn digital evidence into intelligence.
claims based on such promises.
Because of the potential for franchiser abuse, the Federal Trade Commission passed a trade regulation,
known as the FTC Rule, to govern the
sale of franchises and other business
opportunities. In explaining the need
for the rule, the FTC stated that franchisers “often made material misrepresentations about (among other
things) … the costs to purchase the
business, the success of the seller and
its other (franchisees) and the (franchiser’s) financial viability.”
The FTC Rule requires sellers of
franchises and certain other businesses to provide an extensive disclosure document to the purchaser,
similar to a securities prospectus,
well before signing the contract. The
FTC does not review the documents
prior to their use by franchisers, and
only the FTC can sue to enforce violations of the FTC Rule. An amended
version of the rule, effective July 1,
will require changes in the content of
future disclosure documents, but the
basic structure of the disclosure
obligation remains the same.
The FTC Rule does not prevent
states from passing their own franchise laws, and many have done this.
About 15 states have laws requiring
franchise sellers to submit their
disclosure document to the state for
approval and registration before
selling franchises. A number of other
states, including Ohio, have laws regulating sale of franchises, but do not
require pre-sale approval by the state.
Ohio’s law, called the Business Opportunity Purchasers Protection Act,
requires disclosure in a different format than is required by the FTC Rule.
There are several exemptions,
most notably an exemption for transactions which fully comply with the
FTC disclosure format. The law also
covers some transactions that function like a franchise, even if they are
called something different, such as a
trademark license or a partnership. ■
Mr. Dub is a Cleveland attorney
who specializes in franchise law.
CCLB 09-29-08 A 27 CCLB
9/26/2008
11:14 AM
Page 1
SEPTEMBER 29-OCTOBER 5, 2008
CRAIN’S CLEVELAND BUSINESS 27
WWW.CRAINSCLEVELAND.COM
LEGAL AFFAIRS
Firm policies may Certain political views not protected
leave opinionated
ERIC JOHNSON
A
workers speechless
Political expression rules vary by sector
By CHRISTINE GORDILLO
[email protected]
science professor at Cleveland State
University who studies political
behavior in the workplace.
ith the likes of Marc
Many companies encourage
Dann, Jimmy Dimora
lively debate and discussion
and Frank Russo proamong employees.
viding plenty of water
“If people are talking about
cooler fodder this political season,
(politics) around the water cooler,
and a historic presidential camthat’s OK,” said Mike Conway, a
paign that has tested public sensispokesman for paint maker
bilities about race and gender, it
Sherwin-Williams. “Good dialogue
might be good to know if what you
is encouraged, whether it’s about
say or do in your workplace regardfamily events or political events.”
ing politics can get you in trouble.
A number of large Northeast
Whether or not you can freely
Ohio employers expressed a
express your opinions at your job
company philosophy that not only
“depends on who the employee is,
invites discussion, but facilitates
who they work for and what state
being informed and involved.
they work in,” said employment
“(Eaton Corp.) recognizes what
attorney Ellen Simon, of counsel
impact government has on us as a
for McCarthy, Lebit, Crystal &
company and as people,” said Barry
Liffman in Cleveland.
Doggett, senior vice president of
Some states, such as New York,
public and community affairs at
California and Nevada, have laws to
Eaton. “It’s critical for our employees
protect political speech, while Ohio
to be engaged in the process.”
does not. Employees’ rights also
The Cleveland-based industrial
differ depending on if you work for a
manufacturer will post flyers and
private employer, the government or
send e-mails reminding its U.S. work
are a part of a union, which often
force of voter registration deadlines
make the right to champion political
and election dates. The company’s
issues and candidates as part of a
intranet also allows an employee to
collective bargaining agreement.
input his or her zip code and a page
“Public employees have a constipops up showing local ballot issues,
tutional right under the First
candidates and current elected
Amendment (to
officials, according
free speech),”
to Mr. Doggett.
“Private employees don’t
Ms. Simon said.
Sherwin“Private employ- have First Amendment
Williams has a
ees don’t have
rights, although many think tagline for its
First Amendphilosophy of
they do.”
ment rights,
engagement: REV,
– Ellen Simon or register,
although many
of counsel, educate, vote.
think they do.”
McCarthy,
Lebit,
Crystal
& Liffman
Private
“We want our
employers “have
employees to be
wide discretion to limit political
active in their government,” said
expression in the workplace,” said
Colleen Carpenter, SherwinDoug Schnee, co-chair of McDonald
Williams’ vice president for human
Hopkins’ Labor and Employment
resources. The company has even
group. “An employee can be
had the League of Women Voters
dismissed for political speech.”
come in for a brown-bag lunch
While no employer wants to
session to inform employees about
squelch lively discussion among
ballot issues and candidates.
employees, companies do have to
Watch those shirts
ensure productivity is not affected
and that no employee feels
According to Ms. Simon, some
harassed or discriminated against
private companies can take that to
due to a co-worker’s comments.
the extreme and ban any political
“Supervisors need to be tuned in
expression on their grounds and
(to employees’ interactions) so other
are in their legal rights to do so.
people don’t view (heated discus“They want to be neutral … and
sions) as harassment,” said Susan
don’t want to offend anyone or any
Chermonte, who provides human
customers, so no outward political
resource guidance for members at
expression is allowed,” she said.
Employers Resource Council.
At Sherwin-Williams, for example,
the dress code specifies no logos on
Lively water cooler talk
shirts, so an Obama campaign TSupervisors are bound to come
shirt would be out, Mr. Conway said.
across such political banter,
Similarly, no solicitation policies
according to recent research. In a
would cover employees asking for
2007 survey by Vault, an online
contributions to any specific group
employer information source, 66%
or campaign.
of respondents said political discusMs. Simon said if employers and
sion occurs in their office, and more
employees a like just keep level
than half (52%) said that they are
heads, no trouble should arise.
open about their political views at
“People should approach the iswork. Research also shows that the
sue with common sense,” she said.
workplace is the No. 2 place, after
“Conversations or expressions that
their homes, where people discuss
don’t interfere or harass are probably
politics, said Guowei Jian, a political
going to be tolerated.”
■
W
s a general rule, it’s
prudent for all employers
to keep politics out of the
workplace. How an
employer achieves this goal is
determined by a number of factors.
Regardless of whether the
employer has a unionized work
force, the National Labor Relations
Act (NLRA) gives private-sector
employees the right to engage in
“concerted activities” for their
“mutual aid or protection.” The
Supreme Court has held this “mutual
aid” or “protection” protects employees who seek to improve working
conditions through “channels
outside the immediate employeeemployer relationship,” which may
include political expression.
While the NLRA protects a certain
level of open expression by
employees, it extends only to
political activity directly related to
employment issues. An employee
can rightfully say, “Obama supports
minimum wage. He will help
increase wages at our company,”
but can be restricted from saying,
“Obama is good for America. Vote
Obama in 2008.”
ADVISER
The first example is protected.
The second is not. Employers can
place broad restrictions on employee
speech that is political simply for the
sake of being political.
Protected speech issues also
come into play in such non-work
areas as cafeterias, break rooms
and parking lots. Employees may
engage in “protected, concerted
activity” during non-work time in
non-work areas and cannot be
disciplined unless their actions
somehow disrupt work operations.
Even if the content of the message
may be protected, the method of
delivery may not be. Employees
cannot run up and down the hallway
shouting, “Obama supports minimum wage” for eight hours straight
instead of doing their jobs. However,
an employer should not issue discipline for non-disruptive, employment-related political statements
that do not interfere with the employees’ daily work responsibilities.
Prohibitions should apply to
campaign paraphernalia — posters,
flyers and buttons — although these
already should be restricted through
non-solicitation or non-distribution
rules incorporated into existing
company policies. It goes to the political speech issue; wearing a statement is the same as talking about it.
Buttons that say “McCain 2008” or
“Obama 2008” are not speaking to a
specific issue protected by the
NLRA. They’re making a general political statement. Those statements
can and should be restricted.
Restrictions also may be applied
to e-mail communications.
Employers can implement an
e-mail policy banning non-business
use of corporate e-mail systems or
banning solicitations for membership organizations. With such a
policy, employers can prohibit campaigning via company e-mail.
If a company doesn’t have a policy
that addresses these items, there’s
no better time than now to institute
one with the help of legal counsel. ■
Mr. Johnson is a partner in the Labor
& Employment Group at Walter &
Haverfield LLP in Cleveland.
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CCLB 09-29-08 A 28 CCLB
28
9/25/2008
1:35 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
SEPTEMBER 29-OCTOBER 5, 2008
REAL ESTATE
Don Schwaller - Classified Manager
Phone:
(216) 771-5172
Fax:
(216) 694-4264
E-mail: [email protected]
Copy Deadline: Wednesdays @ 2:00 p.m.
All Ads Pre-Paid: Check or Credit Card
INDUSTRIAL SPACE
CRESCO real estate
216.520.1200 •
www.crescorealestate.com
INDUSTRIAL
SOLON, OH - 87,441 sf on 4.6 acres - manufacturing - warehouse - 8 docks - heavy power
- newer office - sale/lease - Armand Aghajanian
ELYRIA - Rt. 57 and I-90 - 50,116 sf - great visibility and access - available for lease - $3.95/
sf renovated in 2007 - divisible to 17,600 sf - Kevin Kelly
USER/INVESTOR OPPORTUNITY - 42,400 sf on 4.06 acres - 11,400 sf vacant/balance
leased - 20’ clear - 4 DI’s - 3 DK’s - 1979 masonry construction - Joe Barna, SIOR
MACEDONIA - 25,000 sf sale/lease AC showroom w/ great freeway access - upgraded lighting
- well maintained - suitable for retail, wholesale, assembly or high-tech - Matt Beesley, SIOR
I-77/I-480 - 25,000 sf with 2,000 sf office - docks & drive-ins to suit - Fred Christie, SIOR
FOR LEASE - in low tax Valley View - newer building - 15,600 sf w/ 5,600 sf of high image office
- server room - breakroom - shop lav - 18’ clear height - insulated - 2 docks - 1 drive-in - Simon
Caplan, SIOR, Bob Garber, SIOR or Eliot Kijewski
2,000-18,000 SF - refurbished warehouse for lease w/ 450 sf office - dock and drive-in - 5 mins
from I-90 - low rates - easy access - Ken Anderson
CLEVELAND - WEST FOR SALE - 8,473 sf industrial building with heavy power - OHD 20’ clear and storage yard - George Pofok, CCIM or Joe Barna, SIOR
RETAIL SPACE
REAL ESTATE WANTED
Across from Eaton Square
Approx. 3,000 Sq. Ft.
Occupancy Feb. 2009
Call Sharon
216-956-6818 • 216-464-1422
updates, sign up @
CrainsCleveland.com/Daily
AUCTION
Independence
1.56 Acres Main Street
Marblehead, Ohio
Full Info At
www.ohioauctioneer.com
FOR SALE
BY OWNER
Please contact Owner,
Peter Wairegi, directly
at 216-225-8981
Or Owner’s Agent,
Ernest Tisdel,
at 440-786-2649
AUCTIONS
Jack Bradley Realty, Inc.
419-619-9424
COMMERCIAL
SPACE
Income Producing Commercial
Building, with Office and
Warehouse Space.
Located just off I 480
in Warrensville Hts.
LAND
For daily on-line
Greg Peiffer, Auctioneer, LLC
OFFICE
TIME TO PURCHASE A OFFICE BUILDING DOWNTOWN? YES! - unique buy - 4 story 60,000 sf - value priced - Rico Pietro
SUBLEASE OPPORTUNITY - below market rental rates - 19,322 sf - $13.50 sf as-is longer term thru 8/31/2014 - great location - many amenities - Pat Reardon, SIOR
NEW 7,328 SF OFFICE SUBLEASE - thru 11/30/2012 - 65 existing workstations - 1 private office
- 1 conf. room - large kitchen - alarm system in place - Pamela Bertovich or Tom West, SIOR
READY FOR TENANT BUILD OUT - 1,200 sf office space for lease in Middleburg Heights
- electrical and janitorial service provided - Laura Malone
Chagrin Blvd.
Shopping Centers
Motivated Buyer
25,000 – 200,000 sq. ft.
Value add opportunities
Gross leases acceptable
Contact: Emmco Corp. Broker
[email protected]
214' Frontage w/Lake View
October 11 . 11:00am
Owner Needs To
Sell Immediately!
NEW EXCLUSIVE - 3,770 sf in highly visible location - available immediately - next to Giant
Eagle shopping center - Bob Garber, SIOR
FOR SALE SANDUSKY, OHIO - car and truck wash 101 - located on SR 101 - just south
of the Rt. 2 exit ramp - 3 truck bays - 3 car bays (2 self serve, 1 automatic) - Joe Solkiewicz
COMMERCIAL - .53 acre development site with existing 7,272 sf commercial building 19702 Center Ridge Road in Rocky River - $950,000 - Tom West, SIOR
Industrial/Commercial
Sites
Three commercial/industrial
properties available for lease,
18,000 SF (divisible
office/warehouse) &
5,000 SF (office) &
4,000 SF (office/warehouse)
Sell / Build to suit
Chris
2-20 acres, Avon 6 Acres, Sheffield
75 Acres, Sheffield
Gerent’s Realty
216.446.3490
440.949.2505
OFFICE SPACE
1-800-OFFICES
Offices available now at the
best market price, guaranteed.*
3 Cleveland area locations.
Visit us at regus.com
*Offer available on similar inventory. Limited-time offer.
Medical Space
For Lease
TWINSBURG AREA
University Suburban
Health Center
Beautiful, contemporary
office building has suites
available for lease.
2,247 sq. ft. of primary care
space. Available all or in part.
Immediate occupancy. Newly
renovated. Ancillary services
and on-site cafe.
Easy access to I-271 and RTA
Each suite 800 sq. ft. or can
be combined. Large foyer
entry with individual heat and air.
Easy freeway access with
ample parking.
Contact:
[email protected]
or 216-382-6056
For appointment to see
330-298-0100
INDEPENDENCE
7100 E. Pleasant Valley Rd.
Award Winning Building
Offering Class A Office Space
Third Floor
2,500 sq. ft.
First Floor
1,300 sq. ft.
Available Immediately
www.
independencecorporatecenter
.com
216-674-0525
ARE YOU
READING THIS?
This small ad space
could bring
BIG BUSINESS.
Contact
Don Schwaller at
(216) 771-5172
[email protected]
CLASSIFIED
BUSINESS SERVICES
Prepare NOW to save on your 2009 Health Plan Renewal
Looking to Buyout Your Boss?
Want to Sell to a Senior Manager?
DEPENDENT ELIGIBILITY AUDITS
Evolution Capital Partners is a committed fund typically investing
$1-10 million of equity, in partnership with management, to
sponsor buyouts of manufacturing, specialty service and value-added
distribution businesses.
For more information, contact:
Barbara Hernandez
216-593-0402; [email protected]
www.evolutioncp.com
Facilitate Growth Through Capital
& Management Support
Want to SAVE BIG on your UTILITY COSTS?
SAVE A MINIMUM of 50% and up to 75% on your Plant/Warehouse
Lighting Costs while improving light quality
SAVE 25 – 50% on your Plant/Warehouse Heating Costs
Federal EPACT Tax Deductions available for Lighting Projects completed by 12/31/08
No Cost/No Obligation Energy Audits
[email protected]
Jack
440-835-1919
Large Group Health Plans / School Districts / Municipalities / Unions
5–15% of all dependents on your health plan
are ineligible for coverage.
Stop paying for these individuals and save a fortune.
Remove ineligible high claimants from your plan.
Local Benefits Firm offering Dependent Eligibility Audits.
Contingency Fee Basis.
440-930-5096 x 7 or [email protected]
WWW.ELITEBENEFITS.US
A Better Way to
Promote Your Business
Crain’s Cleveland Business BUSINESS SERVICES
DISCOUNT RATES AVAILABLE!
Call Don Schwaller... 216.771.5172
Delivery Service
Have freight?
Need it delivered?
We can help.
Call us at
Ideal Delivery
for all of your
delivery needs.
SPORTS &
ENTERTAINMENT
BROWNS FANS
Prime Location Suite Available
Enjoy watching the
Cleveland Browns from a
Prime Suite at the 40-yard line
during the 2008 season.
We have dock high straight
trucks & cargo vans ready
for consignment and/or
same day delivery.
We also specialize in
unique delivery situations.
Call for more info
216.409.3956
440.781.1520
Selling individual games/20 seats
plus 4 parking passes per game.
(let us do the driving for you)
CAVS TICKETS FOR SALE
E-MAIL US
YOUR AD
FULL OR HALF SEASON
SECTION 108 ROW 2
SECTION 110 ROW 9
GREAT SEATS!
EMAIL:
[email protected]
Dschwaller@
crain.com
If interested, contact Cindy at
(216) 621-5351.
GO BROWNS!
CCLB 09-29-08 A 29 CCLB
9/25/2008
1:36 PM
Page 1
SEPTEMBER 29-OCTOBER 5, 2008
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
29
REAL ESTATE
CLASSIFIED
LUXURY PROPERTIES
PUBLIC NOTICE
Crain’s
Cleveland
Business
can now
SHOW
your
available
property
on-line.
(216) 249-2021
www.chestnuthillrealtyinc.com
Presents a Showcase
of Fine Homes
AVON LAKE - Designed with a contemporary flair. Glassed
2-story living room, floor-to-ceiling stone fireplace and views
of Sweetbriar Golf Club. Gourmet designer kitchen includes
opening to an arbored patio. Master suite has French terrace and glamour bath with custom stone steam shower.
Also a fitness center and endless lap pool.
HUNTING VALLEY - Located in the heart of the land conservancy. A 1929 custom designed English manor home
with special features including a formal fire lit reception hall,
paneled and firelit His/ Hers libraries and lovely gardens.
The master suite has his / her baths.
Crain’s Cleveland
Business’ has
recently updated
our on-line
classified section
to now include
logos, photos and
hot-links.
HUNTING VALLEY - A once in a lifetime opportunity. On 17
lush acres bordered by Luce Creek. Designed as a classic
center hall with formal rooms radiating from a grand reception foyer. Included is a fully equipped guest cottage, inground pool, tennis and multi-car garage with 2 separate attached carriage houses.
To Advertise your
Luxury Property
contact
Don Schwaller at
(216) 771-5172
MORELAND HILLS - French country Normandy designed
colonial overlooking private wooded views. Enjoy indoor
swimming, fitness and designer kitchen. Fire lit formal dining opens to tiered deck with gazebo and skylit family room.
In-law or AuPere suite.
“BY OWNER ”
Pepper Pike -- One of the most spectacular, adult
contemporaries on one of the most spectacular
private settings imaginable.
"A secluded, Nature Lovers Lifestyle"
• Designed by SanDiego
architect Tony Crisafi
* 1st floor Master Suite with Private Deck / Porch
* 2 other Master Sized Bedrooms, in suite Spa Baths/Porches
* 2 additional rooms, now serve as office / bedrooms
NOTICE TO VENDORS
Notice is hereby given that sealed proposals will be received in the Board
of County Commissioners Office of Procurement & Diversity, Room
100, County Administration Building Annex, 112 Hamilton Court,
Cleveland, Ohio 44114 until 11:00 A.M. local time on October 30, 2008
for lease of office space for a Juvenile Court Regional Probation Office
for the period July 1, 2009 through June 30, 2014 per RQ 11954.
Required geographic location: The space must be in an area bounded
by:
Option “A” - Supervision Unit and Option “C” - Mega Unit
North: Superior - Mayfield Rd.
South: Woodland - Shaker Blvd.
East: Warrensville Center
West: East 79th
Option “B” - Investigation Unit
North: Rt. 90
South: Miles
East: Richmond
West: East 55th
The official closing time shall be determined by the wall clock located
in the Office of Procurement & Diversity. (SAME ADDRESS) Late proposals will be returned unopened.
There will be a Pre-proposal Conference on October 8, 2008 at 10:00
A.M. at the Department of Central Services, 2nd floor conference room,
1642 Lakeside Avenue, Cleveland, OH 44114. IT IS STRONGLY RECOMMENDED THAT INTERESTED VENDORS ATTEND.
Specifications and proposal blanks may be obtained at the Board of
County Comissioners Office of Procurement & Diversity. (SAME ADDRESS) Questions may be addressed to Mr. John Myers, Real Estate Manager at 216-698-2517
Payment will only be made upon approval of the Board of County Commissioners and payments will be warrants issued by the County Auditor
upon notification from the Commissioners.
The Board of County Commissioners reserves the right to accept or reject any proposals or any part or all parts of any proposal submitted, and
waive all technicalities.
Each proposal must state in full the name and address of each person,
firm or corporation interested in the proposal submitted.
BY ORDER OF THE BOARD OF COUNTY COMMISSIONERS
OF CUYAHOGA COUNTY
JIMMY DIMORA TIMOTHY F. HAGAN
PETER LAWSON JONES
LENORA M. LOCKETT, DIRECTOR
Office of Procurement & Diversity
PERSONAL SERVICES
BUT WHAT IS HAPPINESS
EXCEPT THE SIMPLE HARMONY BETWEEN
A MAN AND THE LIFE HE LEADS?
(total of 3-5
5 bedrooms, 5 full baths)
* Timeless choices of Materials and Fixtures
* Concealed "touch latch" storage EVERYWHERE!
* Sophisticated applications of Florescent & Halogen
lighting augments tons of Natural Light throughout.
Real Estate Auction
Sun. Oct.19 @ 2:00pm
2900 Fairmount Blvd. Cleveland Hts.
Pre approved buyers please make inquiries to 216/509-5
5656
Priced firm @ 875,000
LUXURY PROPERTY
FOR SALE
List your high-end real estate here for
great high-end exposure.
One of the most magnificent houses in the city on 1.2acrs. 3 stories, 9,025 sq.ft.,
library, ball room, 10 Bdr, 6 bth, 2 half bth, 4 fireplaces, in-ground pool, 4 car
garage, and much more... Built in 1991
Discount rates available.
24 HOUR RECORDED INFO
1-800-991-9243 ext. 3015
www.ThomasMichaelAuctions.com
Call Don Schwaller at
(216) 771-5172 for more info
Thomas Seaman, Auctioneer *10% Buyer premium add-on applies
- Albert Camus
Do you wish you had more harmony in your life,
your relationships or your career?
Find out how individual or couples counceling can help
you to maximize your potential, increase your satisfaction
and cope with difficult adjustments.
KARSTEN SIEBERT, M.ED.
PROFESSIONAL COUNSELOR
Heinlen, Hanson & Siebert
440-333-2106
[email protected]
Convenient Rocky River location.
Evening and weekend
appointments available.
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CLASSIFIED
CONTINUED ON PAGE 30
CCLB 09-29-08 A 30 CCLB
30
9/26/2008
1:56 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
SEPTEMBER 29-OCTOBER 5, 2008
City View: Other tenants’ future plans concern some officials
continued from PAGE 1
they have indicated that if their
concerns are met, they’re willing
to reopen the store. We believe
that we’ll be able to meet those
concerns and that they’ll reopen the
store.”
Citing a report by an independent contractor it hired to evaluate the City View site, Wal-Mart
announced the closure Sept. 15. It
declared at that time that methane
gas levels, structural shifts and
foundation, electrical and sewage
problems created what Wal-Mart
spokeswoman Tara Stewart called
a “volatile mix of potential safety
hazards.”
City View’s methane-related
troubles are well-documented
and arise from construction of
the 740,000-square-foot shopping
center on a former landfill. But
whether its problems are as severe
as Wal-Mart portrays is open to
question.
Ohio Environmental Protection
Agency director Chris Korleski said in
a strongly worded Sept. 3 letter to
City View owners that he would
consider shutting down the shopping center if the owners lapsed
in their methane monitoring and
mitigation. However, agency spokesman Mike Settles insisted in an interview last Thursday, Sept. 25, that the
EPA feels “City View can be operated
in a safe manner if the responsible
parties monitor for methane and
mitigate when necessary.”
“We still hold that position, and
frankly, we wish Wal-Mart had
talked to us prior to making their
decision,” Mr. Settles told Crain’s.
The portion of City View that
includes the Wal-Mart space
belongs to City View Center LLC,
formed by New York grocer
Thomas Klein, who bought it from
McGill Property Group in late 2006.
Mr. Klein did not return a message
left seeking comment.
Mr. Markowitz, the attorney, said
Wal-Mart jumped the gun in
leaving City View, but that other
tenants aren’t panicking.
“They’re all staying on top of
what’s going on, but there’s no
need for anybody to take any other
action right now,” he said. “There
are a lot of issues there, and we’re
working through them. Both City
View as well as my client and the
EPA believe we’re going to get it
settled.”
Spokeswoman not encouraging
Ms. Stewart, Wal-Mart’s regional
director of media relations, said last
Thursday that the company’s City
View lease runs through 2015,
though she couldn’t say whether
the big retailer is trying to negotiate
an early termination.
“We are currently in discussions
and are still evaluating all available
options with regard to the lease,”
she said.
Though Ms. Stewart noted that
Wal-Mart in its Sept. 15 announce-
ment described the closing as
indefinite as opposed to permanent,
she didn’t indicate in the interview
last Thursday that the retailer is
seriously considering reversing its
decision.
“If I was asked ‘Are you going to
reopen the store?’ I’m told that no,
it doesn’t look likely,” Ms. Stewart
said. “If something can happen and
everything gets fixed, then maybe
we’ll take another look at the situation. Our initial response was that
we didn’t think those issues we
were concerned about could be
fixed.”
Wal-Mart is moving the City
View store’s merchandise to other
stores in the region, though its
fixtures and shelving will stay in
place for now. Ms. Stewart said the
171 employees of the City View
Wal-Mart have all been placed in
jobs at other locations.
Garfield
Heights
building
commissioner William Wervey said
he was “flabbergasted” upon hearing
news of the closing, especially
because of the structural problems
that were cited by Wal-Mart.
“We had heard rumors of floors
sinking and breaking and this and
that, and I walked basically the
whole building,” Mr. Wervey said.
“I looked around where pillars
dig into the floor, into the pile
blocks, into the foundation. I didn’t
see anything other than the fine
cracks you see in concrete floors.
There’s some settlement of the
parking lot paving and the driveway paving behind the building,
but that’s been going on continuously since it was built, and it was
expected.”
Image problems
Garfield Heights Mayor Thomas
Longo says he’s concerned about
the impact of Wal-Mart’s closure
on City View’s remaining tenants
and on the shopping center’s
image.
“There’s a perception problem
that’s been perpetuated by WalMart that the center is unsafe,”
Mayor Longo said. “That’s a
perception that we are going to be
working with the owners and the
developer on trying to remedy.”
Wal-Mart’s move also raises questions concerning the commitment of
other City View tenants because
many shopping center leases include
co-tenancy clauses that allow smaller
tenants to break or renegotiate their
leases if a traffic-drawing anchor
store closes.
Mayor Longo calls co-tenancy
fallout something to worry about and
says he’s heard rumblings that some
City View tenants have such clauses,
though he admits he knows no
specifics about the leases.
The parent corporations of
several City View tenants declined
to comment on the situation at City
View or to reveal whether WalMart’s closing affects their leases.
Pittsburgh-based Giant Eagle
spokesman Dan Donovan responded
to questions with a statement
asserting that its supermarket at
City View “has not experienced any
structural or methane gas-related
issues that would cause an unsafe
environment.”
“Both the EPA and Garfield
Heights officials have assured us
that our building and the shopping
center are safe,” Mr. Donovan said.
“As an added measure of safety,
Giant Eagle has a methane gas
monitoring system which has not
indicated any unsafe conditions.”
Though the Ohio EPA is backing
a civil suit filed by the Ohio attorney general’s office against City
View owners over a recent lack of
proper methane monitoring, the
agency is negotiating a possible
settlement before the Dec. 8 trial
date.
City View’s current system
involves checking methane levels
daily and dissipating the flammable gas with blowers.
“The developers and property
managers in the last few weeks …
have been doing a good job staying
on top of the situation out there,”
said the Ohio EPA’s Mr. Settles.
“The main thing we’re looking
for is to get an active gas extraction system out there that would
permanently take care of this
methane migration issue. Whether
there’s a financial penalty with that
is something I’m sure they’re
discussing, too.”
■
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CCLB 09-29-08 A 31 CCLB
9/26/2008
4:57 PM
SEPTEMBER 29-OCTOBER 5, 2008
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
31
THEINSIDER
THEWEEK
SEPTEMBER 22 - 28
The big story: Snap-on Business Solutions
Inc. plans to build a 105,000-square-foot
headquarters in Richfield on 8.5 acres across
from the company’s current home in Kinross
Lakes Office Park. The subsidiary of tool maker
Snap-on Inc. has employees at its Wooster location who will move into the new headquarters,
which then will have more than 300 employees.
The company’s current Richfield HQ is 85,000
square feet. Snap-on Business Solutions provides electronic parts catalogs for the auto and
powersports industries.
Talking taxes: The city of Cleveland and the
Greater Cleveland Partnership have begun to
talk about how the income taxes assessed by
Cleveland and other communities in the region stack up
against each other. Cleveland
Mayor Frank Jackson said
he’s responding to inquiries
from Eaton Corp. and other
companies that would like
Ohio cities to exclude certain
deferred compensation from
Jackson
city income tax calculations.
He said creating an exemption for the deferred
income could cost the city up to $4 million a
year. “Why would I just give up millions of
dollars with no benefit to the city?” the mayor
asked during an interview with Crain’s.
Pumping up JumpStart: JumpStart Inc.
will receive the biggest grant that the Burton D.
Morgan Foundation has ever given to a program
that doesn’t involve construction. The Hudsonbased foundation announced it would give the
Cleveland business development organization a
grant that could reach $3 million if JumpStart
finds another $3 million to match it. JumpStart
can use the money to help pay for the assistance
services it provides to high-tech companies or to
add to its nonprofit investment fund.
REPORTERS’ NOTEBOOK
BEHIND THE NEWS WITH CRAIN’S WRITERS
The ol’ Nigerian e-mail
scam, with a U.S. twist
■ In the midst of the Bush administration’s
push last week for a $700 billion bailout
package for the financial industry, the
following e-mail arrived in the Crain’s newsroom. It’s a send-up of the phony e-mail
solicitations, allegedly
from an official of
the Nigerian government, that try to
convince recipients to share their bank
account information so that an urgent
transfer of funds can be made into their
accounts. Only this time, the sender is U.S.
Treasury Secretary Henry Paulson.
Enjoy.
Dear American:
I need to ask you to support an urgent
secret business relationship with a transfer
of funds of great magnitude.
I am Ministry of the Treasury of the
Republic of America. My country has had
crisis that has caused the need for large
transfer of funds of 800 billion dollars US. If
you would assist me in this transfer, it would
be most profitable to you.
I am working with Mr. Phil Gram [sic],
lobbyist for UBS, who will be my replacement
as Ministry of the Treasury in January. As a
Senator, you may know him as the leader of
the American banking deregulation movement in the 1990s. This transaction is 100%
safe.
This is a matter of great urgency. We need
a blank check. We need the funds as quickly as
Grass-roots thoughts
on the big bailout
WHAT’S NEW
STOCKS
Quick on the draw:
Goodyear Tire &
Rubber Co. of Akron said it plans to draw $600
million from its U.S. revolving credit facility
due to what it termed “a temporary delay” in its
ability to access $360 million of cash currently
invested with The Reserve Primary Fund. The
Reserve Primary Fund, a troubled money
market fund, has delayed the payment of
requested redemptions pursuant to a Securities
and Exchange Commission order allowing an
orderly disposition of its securities.
To keep up with local business news as it
happens, visit www.CrainsCleveland.com.
■ If you’d expect Cleveland City Councilman
Tony Brancatelli, whose Ward 12 includes
foreclosure-riddled Slavic Village, to embrace
the Bush administration’s $700 billion mortgage bailout bill, you would be wrong.
“This feels like we’re negotiating with
terrorists to release hostages,” Mr. Brancatelli said.
The councilman said he opposes a direct
bailout for banks and holders of busted mortgages, although he would support different
measures. Better, he said, would be provisions
to keep people in their houses or require
lenders to surrender the assets to local authorities in exchange for federal tax credits.
The idea of a large federal organization or
contractor disposing of the loans and properties makes Mr. Brancatelli shudder because of
his experience with the U.S. Department of
Housing and Urban Development and federally owned houses in his ward. The houses are
a shambles, and it takes a long time to get
them sold, which means they’re in even worse
shape before they’re in line for a real fix-up.
“I’d rather be in position where I could be
in control,” he said. — Stan Bullard
Another medical mart
that’s slow to materialize
■ The competition to Cleveland’s medical
merchandise mart has added an influential
partner.
The Greater New York Hospital Association
has agreed to be an anchor tenant and joint
venture partner for what is called the World
Product Centre, a 60-story midtown Manhattan skyscraper touted as a year-round showroom and conference center for companies
that supply medical devices and services.
Modern Healthcare, a hospital industry
trade journal and sister publication of
Crain’s Cleveland Business, wrote about the
agreement in its Sept. 1 issue.
The project was first announced in
August 2007 by developer Israel Green with
a 2012 completion date. However, Modern
Healthcare notes that besides the commitment from the hospital association, which
has 300 hospital members in the region, the
developer has no other tenants and no financing lined up.— Jay Miller
10 BEST PERFORMERS
Instrumental cuts: Keithley Instruments
Inc. announced staff cuts designed to improve
the Solon company’s bottom line. The maker of
sophisticated measurement instruments has
reduced its global work force by about 5%, which
includes recent attrition. Keithley did not say
how many jobs have been eliminated. Keithley
said its actions are expected to reduce operating
expenses by about 7%.
possible. We cannot directly transfer these
funds in the names of our close friends
because we are constantly under surveillance. My family lawyer advised me that I
should look for a reliable and trustworthy
person who will act as a next of kin so the
funds can be transferred.
Please reply with all of your bank account,
IRA and college fund account numbers and
those of your children and grandchildren to
[email protected] so that we
may transfer your commission for this
transaction. After I receive that information,
I will respond with detailed information
about safeguards that will be used to protect
the funds.
— Yours Faithfully Minister of Treasury
Paulson
COMPANY: Wright Tool, Barberton
PRODUCT: Wide-opening
adjustable wrench
Open wide. That’s the motto behind Wright
Tool’s new line of adjustable wrenches.
The company says an extra-wide jaw
opening is standard on lengths 6 inches to
12 inches to accommodate bigger nuts and
bolts. The new jaw design “provides a better
grip, which avoids slippage or nut round off,
while its creep feed ground parallel face
assures smooth, tight operation,” according
to the company. Wright Tool also says the
jaw is longer and thinner, increasing the
performance of the wrench.
For
information,
go
to
www.wrighttool.com.
Send new product information to managing
editor Scott Suttell at [email protected].
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
COMPANY
CLOSE
9/26
WEEK’S
% CHANGE
52-WK
HIGH
52-WK
LOW
DataTrak International (DATA)
Invacare Corp. (IVC)
Steris Corp. (STE)
Hawk Corp. (HWK)
U-Store-It Trust (YSI)
FirstEnergy Corp. (FE)
Progressive Corp. (PGR)
KeyCorp (KEY)
Sifco Industries Inc. (SIF)
Diebold Inc. (DBD)
0.28
25.77
38.38
21.13
12.50
68.64
17.35
14.70
8.50
33.77
12.00
2.14
1.37
0.62
0.16
-0.42
-1.14
-1.21
-1.28
-1.46
3.47
27.75
38.93
25.63
14.40
84.00
21.31
34.05
23.25
45.90
0.20
16.13
20.71
13.25
7.56
63.03
15.00
7.93
8.37
23.07
COMPANY
CLOSE
9/26
WEEK’S
% CHANGE
52-WK
HIGH
52-WK
LOW
National City Corp. (NCC)
Chart Industries Inc. (GTLS)
Omnova Solutions Inc. (OMN)
Brush Engineered Materials (BW)
Cleveland-Cliffs Inc. (CLF)
Eaton Corp. (ETN)
FirstMerit Corp. (FMER)
OM Group Inc. (OMG)
LNB Bancorp Inc. (LNBB)
Jo-Ann Stores Inc. (JAS)
3.71
27.99
2.17
19.76
59.89
58.06
21.91
24.74
7.20
22.49
-33.87
-32.81
-26.44
-23.02
-21.61
-16.26
-15.73
-13.56
-13.20
-12.73
27.21
55.73
5.91
58.74
121.95
101.82
28.79
66.00
15.44
26.85
2.00
21.84
1.83
19.07
36.75
56.21
13.76
23.98
7.12
9.03
10 WEAKEST PERFORMERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Source: FinancialContent Inc.
Open House
Weatherhead School of Management
October 11, 2008 8:30 a.m.–11:30 a.m.
weatherhead.case.edu
CCLB 09-29-08 A 32 CCLB
9/25/2008
1:37 PM
Page 1
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