January 6, 2026  • By Dennis Beaver

Over the many years I’ve been in law practice, a client’s adult child has more than once called with an urgent need to come into the office, saying, “It is about Mom and Dad. Their judgment about the financial things they were always on top of seems to have fallen off of a cliff. We have to protect them from themselves, but how?”

Usually, they add, “But they are both highly independent and would not stand for control of their finances to be taken away.”

It doesn’t have to be.

I am getting more and more of these calls as our population ages, and the issue often is because my advice to an older couple — “you need to cut ties with this crooked contractor” — is rejected, and they decide to stay with the con to their detriment.

My article last week about Walter and Patty, As We Age, Embracing Our Own Self-Doubt Can Be a Gift: A Cautionary Tale About Elder Financial Abuse, is a case in point.

Guarding against future financial mistakes

When adult children see their aging parent(s) begin to act impulsively or make financial decisions that aren’t sound, this is the time to have a consultation with an elder law attorney — before things get worse. These lawyers focus on the legal needs of older adults, including:

• Long-term-care planning

• Medicaid eligibility

• Estate planning and trusts

• Powers of attorney and health care directives

• Asset protection

• Guardianship and conservatorship

• Elder rights and elder abuse prevention

Today, we look at how an elder law attorney can address financial vulnerability and exploitation by putting safeguards — guardrails — in place that reduce the chances of future mistakes while preserving the parent’s dignity and independence as much as possible.

Effective preventive financial tools

The elder law attorneys I know are among the most compassionate individuals in the legal profession. The last thing an aging parent who has always been in control of their finances wants is to lose that ability.

• How can a family protect them without giving the impression that they are taking over a parent’s life?

• Elder law attorneys use a win-win strategy that demonstrates family support instead of completely limiting Mom or Dad’s financial freedom.

• An elder law attorney can design a limited authority framework that:

• Requires a second signature for contracts or large purchases

• Allows a child to access/monitor accounts

• Allows the parent to have day-to-day control up to a specified dollar amount

• Instructs the parent’s bank to flag and stop attempted withdrawals or payments to anyone over a specified limit and notify the adult child if that is attempted

• Requires the signature of an adult child or named person for amounts over a set dollar figure

• Arranges for a copy of the monthly bank statements to be sent to a designated relative or third party

• Employs anti-exploitative measures, including fraud alerts from all three credit bureaus, credit card spending limits, trusted-contact notifications and automatic bill pay, which may reduce a parent’s confusion on which bills to pay

Also, if a parent has signed a questionable or predatory contract, an elder law attorney can identify grounds for cancellation and speak with the company or reach out to lawyers familiar with the legal issues involved.

For example, I am frequently contacted by attorneys whose clients have become victims of timeshare and rooftop solar sales scams.

What a durable power of attorney accomplishes

An elder law attorney can set up a proper (more on what’s considered “proper” in a moment) durable financial power of attorney, which allows a trusted family member to handle financial affairs if the parent becomes mentally or physically incapacitated because of illness or accident.

A durable power of attorney for health care — aka medical power of attorney or health care proxy — is also essential.

Trusts protect assets from scams and impulsive decisions

Depending upon a family’s assets and needs, an elder law attorney will explore using a trust as a way to protect older people from making poor decisions, squandering their funds or being a target of scammers.

The concept is simple: Control of assets is given to a responsible child or professional fiduciary/trustee, who manages these assets while restricting the aging parent’s direct access.

The objective of all trusts is the preservation of assets for the benefit of the parent or designated beneficiaries.

Why hire an attorney when most of this stuff is free online?

I am occasionally asked, “Why spend the money on an elder law attorney when I can get all the forms and information for free online, or pay just a few dollars for a kit with fill-in-the-blank forms that promise to be as good as hiring a lawyer?”

My answer: What you pay an attorney to draft proper estate planning documents is often much lower than the costs of fixing a botched DIY plan.

Growing up, our parents loved and cared for us. We owe them the same now.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post How an Elder Law Attorney Can Help Protect Your Aging Parents From Financial Mistakes appeared first on Dennis Beaver.

December 29, 2025  • By Dennis Beaver

There is an age when self-doubt — questioning our decisions, seeking approval of family and trusted friends for our choices — can prevent us from becoming victims of financial abuse, consumer fraud or even ourselves.

Like three-quarters of Americans over the age of 50, “Walter” and “Patty,” both in their late 70s, decided to “age in place” — remaining in the home they had lived in for many years, where they’ve formed friendships, have good neighbors and access to health care resources and much more.

Patty deals with severe mobility and dexterity challenges that require their primary bathroom to be remodeled. Watching a local television commercial for a company I will call Nightmare Bathroom Remodeling set the stage for the kind of financial elder abuse and consumer fraud we often see on the news.

If, before ever contacting Nightmare, they had read the negative Yelp reviews — which far outnumber the positive ones — I doubt you would be reading this story.

There were giant red flags

Walter described the first red flag they saw, though they didn’t grasp its significance at the time:

“We visited their showroom on July 22, 2025, to discuss bathroom renovations and met with the owner, ‘Bill,’ who gave us a rough estimate of $90,000. We gave him a retainer fee of $3,000. No contract was signed.”

In California, a home improvement contractor can charge only 10% of the contract price to a maximum of $1,000 as a down payment. Contracts over $500 must be in writing and signed before any money is accepted from the customer.

Violations can result in criminal charges and disciplinary action by the Contractors State License Board in California.

Other states have specific limits on the maximum down payment a contractor can charge. Some set a percentage, while a combination of a percentage and a dollar amount is used in others. To find information for your state, you can check out this website provided by Angi.

That $3,000 down payment clearly violated the law in California. It is Nightmare’s MO. But wait, it gets worse.

Additional huge deposit paid, though no work done or materials delivered

On September 12, 2025, the couple met with customer service rep “Ima” (as in I’m a Thief) and signed a $120,000 contract.

Three weeks later, Nightmare illegally had them pay an additional $90,000. No work on the job had been started, no materials had been delivered, and nothing justified this payment.

Additionally, Nightmare failed, in virtually all respects, to comply with the terms and specifications that must be in a home improvement contract.

And then a shocking call from their bank

Near the end of October 2025, Walter was informed by their bank that multiple charges had been made from their checking account, and Ima had set up an autopay arrangement for health insurance and dental insurance premiums. She had forged Walter’s signature on counterfeit checks.

“I called Ima about it,” Walter said. “She first claimed to have no idea what I was talking about, then she emailed to tell me not to contact her boss — because she needed the job, as she was a single mother with a son.”

The bank replaced the money Ima had stolen from their account.

Angry and disappointed, Walter reached out to friend and neighbor Mark Novak, professor of sociology at California State University, Bakersfield. Novak referred him to me. (Readers might remember meeting Novak in my 2019 Kiplinger article Needing to Hire? Think Wrinkles.)

Walter asked Novak if he should inform Ima’s employer, and Novak felt that he should — to at least protect other customers. Walter did and then was surprised to learn that Ima remained employed at Nightmare.

I tried to reach Nightmare’s owner, but he refused to take my call.

The couple needed to cut ties with this crooked company, but what came next made me worry about their reasoning and decision-making abilities.

Self-doubt can be your greatest friend

Walter emailed me right before Thanksgiving: “Thanks for your advice, but we are continuing to work with Nightmare.”

I replied, “Folks, the fact that an employee forged your signature on counterfeit checks should have scared the pants off of you, and had I been notified at the time, I would have personally helped you file a criminal complaint with the police. I urge that you immediately demand a refund of what they illegally charged you. …

“I have learned over the years that if we have close, responsible family members and friends, major financial/life decisions we make when we get older should be discussed with them. We should get their opinions and ask them to review contracts or anything that puts our money or well-being at risk. And, most of all, we should never feel embarrassed.

“Your decision to remain with this company deeply worries me. This is the time for self-doubt! Am I missing something? Maybe. Let’s discuss this with our kids, accountant or family lawyer — someone whose advice we trust — before we do something that could wind up hurting us.

“Please show this email to your most responsible children. Have them call me to get a referral to an elder law attorney. Yes, you need to do that. And when you are near my office, please drop in. I’d love to meet you both in person.”

My next column will cover why a consultation with an elder law attorney can be the best investment children of aging parents can make.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post As We Age, Embracing Our Own Self-Doubt Can Be a Gift: A Cautionary Tale About Elder Financial Abuse appeared first on Dennis Beaver.

If you are in a line of work that requires a written contract — such as painting and wall coverings, flooring or remodeling — today’s story will help keep you out of hot water.

Let’s talk about contracts. On any reality television courtroom show, such as Judge Judy, we’ve all heard, “No matter what you thought, expected or were promised, if it’s not in the contract, it’s not there.”

The reason is that courts have to rely on what’s written and cannot consider oral evidence that varies from its terms, with few exceptions.

Lawyers often hear, “‘Well, I assumed that we would have this, or they should have known that.'”

Making assumptions about what a customer would know, understand and find acceptable, combined with failing to describe the actual appearance of $30,000 in reclaimed wood flooring, is the basis of our story.

Loved hardwood floors

“Martha” and her husband of 60 years, “Thomas,” loved the appearance and feel of their Douglas fir floors in the kitchen and family room of the house where they had lived for over 50 years. Like the couple, the Douglas fir had aged beautifully.

One weekend when they were out of town, a water pipe in the wall behind their kitchen cabinets began leaking, flooding the house.

Martha hired a restoration company to oversee the replacement of the floor. The owner, “Santos,” told me, “Dennis, if it had just been a few hours, we would have had a chance to save the flooring, but it only takes 24 hours for warping damage to become permanent, requiring replacement.”

He added, “(Martha and Thomas’) insurance company could not have been nicer to them, immediately approving replacement of all wood floors in the entire house. We seldom hear about the good things claims adjusters do.

“Here, she could have denied coverage on the basis that it was a slow leak that went on for days and was therefore not covered. Instead, she helped this couple.”

But that left a question: What kind of wood floors? Reclaimed or distressed wood?

Reclaimed wood is often the most pleasing choice

Reclaimed (salvaged) Douglas fir ideally would be used to replace what had been destroyed. That is any wood that has served its original purpose — for example, old buildings, barns, factories, bowling alleys, gym floors and fences.

Reclaimed hardwood flooring has an aged and worn look that is pleasantly warm with a rich patina. Typically, it has developed a unique character, durability and was often sourced from old-growth trees over a century ago.

Also, it can be far more stable than newly harvested lumber that is “distressed” and artificially made to resemble old wood.

Drawbacks of reclaimed wood

I phoned reclaimed wood dealers across the country and asked, “What are some of the drawbacks, if any, of using salvaged wood for kitchen and family room floors?”

They listed these imperfections that could render the flooring unacceptable:

• Nails and staples, which could cause cuts, scrapes and the risk of a tetanus infection

• Termites, which could spread an infestation to the entire home

• Mold and mildew could expose the family to harmful spores

There also could be knot and bolt holes. Every dealer I talked to cautioned that, while there is no one standard, bolt and knot holes greater than one-quarter inch in diameter that go completely through a plank can be a structural weakness, especially if there are too many, if they’re in high-traffic areas or if they’re near cracks.

They can also pose a tripping hazard.

One dealer said that consumers need to make sure that they see photos of the actual planks they’re buying so they know what they are getting.

The contract

Floor-Co (not the actual name of the company) submitted a proposal to Santos to do the replacement, which Santos accepted and then let Floor-Co do their thing, which is standard operating procedure.

Now, picture yourself as the owner of Floor-Co. Your customers are in their 80s. You install the flooring. Weeks later, a guest trips and falls when the heel of their shoe catches on a large hole in the flooring and suffers a hip fracture.

Is your company at risk of being sued because of the hole the guest tripped over?

You bet!

So, wouldn’t it make sense to state, right in the contract, “Customer is aware and understands this reclaimed wood flooring has multiple knot and bolt holes over one-quarter inch in diameter, which create a stability risk and danger of tripping and falling.”

But that requires something that is always in short supply: common sense in taking the time to alert your customer to a risk with your product.

Floor-Co’s contract stated: “Reclaimed Douglas fir stained and custom-finished to match as close as possible control sample of existing floor.” There was no mention of or any photos shown to the customers of what turned out to be a wooden Swiss cheese of bolt holes, some well over half an inch in diameter.

“We assumed they knew what ‘reclaimed wood’ meant,” Floor-Co’s angry owner told me after Santos refused to pay for the wood.

Before installation, Floor-Co never showed the material or photos to either the homeowners or Santos, and that wasn’t required according to the contract.

I saw photos and a video of the flooring. It scared me. Holes everywhere — big holes — just waiting to catch someone’s toe or shoe. No one in their right mind would ever accept such flooring material. And Martha and Thomas are not cognitively impaired.

“Can you imagine their grandchildren walking barefoot, and one of them gets their toe caught in a hole? Bad fall and loses a toe!” Santos said, “They never even told us when the installation was planned! They just did it over a couple of days. The couple ordered us to remove it when Floor-Co refused.”

Customer’s right to reject the installation

Since the contract did not disclose the presence, size or frequency of bolt holes, the flooring would likely be considered “nonconforming goods” under the Uniform Commercial Code (UCC), allowing the buyer to reject goods that do not conform in any way.

Floor-Co expects to be paid. Santos and the couple refuse but are agreeable to the installation of distressed wood, or safe reclaimed wood. Thus far, Floor-Co has refused.

Luckier than they realize

Karl Susman, a Southern California insurance broker and expert witness in insurance coverage cases (and also a Kiplinger.com contributor), said, “Floor-Co made the classic mistake of assuming their customers knew the reclaimed wood could have all of these defects, yet they failed to show them photos of what was about to be installed.

“That negligence could wind up biting Floor-Co on the nose if someone got hurt. Instead of complaining, they should thank Santos and the couple for saving their bacon,” because since the floor has been removed, no one else is at risk of being injured in a fall.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had Holes appeared first on Dennis Beaver.

Most people understand the risks of being a cosigner for a car purchase or lease. But how should you reply if a good friend or a close family member says, “Will you please be my guarantor — not cosigner, just a guarantor — for the apartment I would like to lease?”

Is there a difference?

“Mr. Beaver,” “Nick” began in his phone call, “I’ve read your column for years and need some guidance. My nephew, ‘Mitch,’ is 42 and has a horrible credit score. He had difficulty in the past paying bills on time, but recently cleaned up his act, has a good job and steady relationship and appears to be on the right financial path.

“He wants to rent an apartment for himself and his girlfriend. Both of them work and have good incomes. He was told to find a ‘guarantor,’ or the management company would not lease him the apartment.

“I am being somewhat pressured by family to take on that role, and they tell me that, at most, I would be responsible for one month’s rent if he defaults, and then I could walk away. I can live with that — but is it correct? Is there a difference between a cosigner and guarantor on a lease?”

What Nick did not know about his nephew?

I said, “Nick, let’s do some due diligence research on Mitch right now. If he’s been sued or has gotten in trouble criminally, it will be on the Superior Court Civil and Criminal Filings index, so turn on your computer.”

We found many entries about Mitch — two bankruptcies, lawsuits and judgments against him going back years, several because this jerk pays rent for a month and then stops, becoming a squatter.

He has written checks galore on closed accounts, and his name appears on the Criminal Register, which shows that he did time in the slammer for the bad checks —which Nick knew nothing about.

“Yeah, I see all that,” Nick said, “but I still feel almost forced to help the kid.” That history should have scared the pants off of him.

“Nick, he’s no kid. He is trouble, so let me fill you in on the nonsense you were given about being liable for only one month’s rent as a guarantor.”

There are differences

I explained to Nick that a cosigner has equal responsibility for the rent or other financial obligations, and this begins when the agreement (lease or purchase contract) is signed. With a lease, cosigners are considered to be tenants and may live in the property.

A guarantor might sign a separate agreement, assuming responsibility for the debt only if the primary borrower defaults. They do not have the right to occupy the property. So, at first glance, it might appear that serving as a guarantor is fairly safe — the financial exposure is much less than that of a cosigner.

That said, it is very common for real property leases to make a guarantor’s legal obligations virtually identical to those of a cosigner. In my experience, if a guarantor rejects those terms, property managers will pull the plug on the entire transaction. It becomes a take-it-or-leave-it situation.

Think before being pressured into being generous

“Nick,” I said, “we all need to get real — very real — and ask ourselves the following questions when someone requests us to cosign or become a guarantor, especially if the person has already proven themselves to be an irresponsible flake or are at the beginning of a romantic relationship.”

• Why do they need my help?

• Are they, or other family members, putting a guilt trip on me?

• What did they do to put themselves in a position of needing a cosigner or guarantor?

• Will they hit up someone else if I refuse? (They will.)

You should also accept that you are not this person’s guardian angel — they will survive without your help.

Why would you accept the significant financial risks that will likely impact your credit and mental well-being when — not if, but when — they default and you wind up getting sued for their debt?

Consequences at home: Relationship strain

Mixing finances with personal relationships often guarantees embarrassment, feelings of betrayal and the loss of trust when the borrower fails to follow through on promises.

It’s even worse if the borrower defaults on the loan and makes no effort to protect the generous family member who was there when needed — sometimes the borrower will even blame the cosigner for having the nerve to insist they repay their debt.

Even if the borrower is financially responsible, cosigning is a significant financial risk. If you are not comfortable with it, decline.

The bottom line is that cosigning or guaranteeing any financial transaction is a major commitment with real consequences. Seriously consider it only if you have absolute confidence in the borrower’s ability to repay and can answer yes to this question: Can you accept the potential risks to your own well-being and that of your family?

Finally, in a dating relationship, realize there are cons by the bushel who “just need a little help” in getting into that apartment or buying a car. Refuse.

When they say, “If you really loved me, you would help, but I guess you don’t,” you can think to yourself, “That’s right! I don’t have ‘sucker’ stamped on my forehead!”

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post Don’t Be a Sucker: The Truth About Guarantor and Cosigner Agreements appeared first on Dennis Beaver.

Does this sound familiar?

Our longtime client Dr. “G” dropped by the office with a question: “Beave, I want to sell the home I inherited from my parents years ago as is and by myself, without a real estate agent. Why pay a large commission? I’m educated. How complicated can it be?

“I haven’t lived in it since I was in high school, and it has been a rental for over 20 years. Frankly, I have no idea of its condition, and the tenants never complained about a thing, and because we kept the rent low, they took care of all repairs themselves.

“I read an online story that said putting ‘as is’ on the sale ads and the contract means that if anything goes wrong with the home, the seller can’t be successfully sued for anything.

“Is that true? Or do you think I should have my own real estate agent?”

Do you know what you are getting into?

When I ran this question by Southern California-based real estate attorney Luke Carlson, he said, “Your client is correct — it is possible to sell a home without having a seller’s agent. But should you? Do you know what you are getting yourself into?”

He pointed out, “There are two issues here — selling a home yourself and selling it as is. Both have significant risks if you do not understand and meet your legal obligations.”

To that, I would add there are enough moving parts to the sale of a house by the owner (known as an FSBO) to give anyone unfamiliar with the complexity of this transaction motion sickness.

Carlson listed some of the pitfalls of an FSBO:

1. You could overvalue or undervalue the home

Do you know how much homes in your area are actually selling for? Ask too much and the house just sits on the market.

Underpricing may raise suspicions that there’s something wrong with the property. Or you could end up selling for far less than the market price.

A real estate agent has the tools to establish a reasonable price for your neighborhood.

2. It can become an emotional roller coaster

Selling the home you grew up in or where you raised your family can evoke a wide range of feelings. Realizing that you are not going back there again can be a deeply emotional experience.

An experienced real estate agent can be that shoulder to lean on at this time.

3. Lack of knowledge: You don’t know what you don’t know

Without the guidance of a real estate agent, you may not be aware of all the necessary legal documents or how to properly complete them.

The closing process is complex, and it can involve a number of steps that are typically handled by lawyers or legal professionals, depending on the state where you reside.

4. You could waste valuable time dealing with unvetted buyers

When selling privately, folks often lack experience in sniffing out unvetted buyers and can wind up dealing with people who aren’t financially qualified to purchase the home.

The result is frustration, disappointment and wasted time when the deal falls through.

Myth: Selling your home as is frees you from all responsibility

Carlson also highlighted a risky assumption some as-is buyers make. “Dennis, one of the most dangerous beliefs floating around is that (some sellers think that) simply writing ‘as is’ on sales material, contracts — anything connected to the sale — is a get-out-of-jail-free card, and they are immune from being sued. The false message is that the seller can just walk away from any issues the house could have.”

The legal requirement is transparency, he noted. “Using the words ‘as is’ when selling doesn’t mean you can sweep problems under the rug. Do so, and don’t be surprised if you find yourself in hot water, as there still is a legal obligation to disclose known issues with your property.”

If after the sale, a buyer discovers an issue that they feel should have been disclosed, “You may be given a choice,” Carlson said. “‘Pay to repair the damage, or we go to court.'”

So what would be considered “known issues”? Carlson pointed out, “This typically means revealing serious problems, such as water damage, structural issues or hazardous conditions like asbestos, lead paint, electrical problems, tendency to flood — the list could go on for pages.”

Carlson suggested a seller should invest in a home inspection and give the written findings to the buyer. “This would prove valuable in the event of a claim that you covered something up,” he noted.

What does selling your home as is really mean, then?

“Listing your home ‘as is’ means that it is in its current condition, and you are not making repairs,” Carlson explained. “You are disclosing all the defects of which you are aware, and the buyer is accepting the house as it is.”

Carlson concluded our interview with this caveat: “Sellers often choose to sell as is when they can’t or don’t want to invest in repairs. Common situations include inherited properties, estate sales or financial issues. Selling as is typically results in lower offers and fewer interested buyers.”

Bonus tip: For anyone whose homeowners association (HOA) is driving them nuts, Carlson’s recently published book, Bad HOA: The Homeowner’s Guide to Going to War and Reclaiming Your Power, is filled with useful tips. It is currently an Amazon bestseller, and I will be discussing I in an upcoming article.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post Think Selling Your Home ‘As Is’ Means You’ll Have No Worries? Think Again appeared first on Dennis Beaver.

Most of us have had the experience of being stood up for a date or some other social interaction, possibly a meeting with a potential employer or customer.

In a dating context, according to psychologists, we may never forget the pain and disappointment of being left waiting for someone who never shows up or even bothers to call to explain why they’re not coming.

Being stood up demonstrates a lack of respect for the other person’s time and feelings. When someone agrees to a date or commitment, we expect them to keep their word, or at least communicate if they cannot make it.

Now, let’s go one step further and ask: Could the results of the equivalent of being stood up form the basis for a lawsuit alleging breach of contract?

Scott encounters a frustrating scheduling issue

“Mr. Beaver, I am a fee-based CPA financial planner and work with clients on a per-hour basis. With an administrative assistant, I run my own shop and am usually booked at least two weeks in advance,” said “Scott” in our lengthy phone conversation.

“We budget from an hour to 90 minutes for an initial meeting with clients, and my hourly rate is $400 for general financial planning, but often a couple will be referred to our office to have their financial and estate plans reviewed.

“Depending on the complexity, this can run as much as $5,000 or more, and with older clients whose existing investment/estate plan was developed decades ago, we often need to draft a new one and refer them to an estate attorney as well.

“As there is a lot of competition in this field, making a client unhappy is costly,” he noted, adding, “Unless there is a very good reason, I try to avoid rescheduling appointments, as that tends to annoy people.”

A costly decision

“A few days ago, I got a phone call in the morning from a local talk radio show, asking if I could be on the show that day, following news articles about possible changes in inheritance taxes in the president’s One Big Beautiful Bill.”

Scott explained to the caller that it would be necessary for him to reschedule his afternoon appointments, but he could come to the studio to be on the show. He also stressed that he was counting on actually being on the show, since rescheduling clients was inconvenient for them.

He was assured that his guest spot on the show was a go and that he would get a follow-up call to officially set things up. He immediately asked his admin to rebook clients at their preferred day and time — including telling them why he was making this request.

“All but one client were OK with it,” Scott told me. “But the couple who needed the most work said that if I would do that to a client, then they would retain someone else. Right then, I lost over $5,000.”

Then Scott never got any follow-up calls about the guest spot. “I reached out to the people at the show more than once, and each time I was promised, ‘They will call you right back.’ Finally, I asked the station’s manager to directly call the show’s host and see what the heck was going on, and the host texted me, It is not for this week.

“This was like a Saturday Night Live comedy skit, with incompetent flakes working for the radio show host! I was so upset, you can’t imagine. These flakes kept on telling me, ‘Oh, yes, his producer will call you right back,’ not only wasting my time, but costing me over $5,000. Do I have any recourse at all against the station?”

Is the station in breach of contract?

This situation would make an ideal question for a bar exam: “Was there a contract for Scott to be on the air that the station breached? What are the station’s defenses, if any?”

No compensation was discussed — Scott would not be paid for his time on the air. Still, being on the show would mean a substantial benefit in free advertising for his professional services. And he would, in effect, be paying for the advertising simply by being in the studio to share his professional insight while potentially losing an afternoon’s income.

If this ever found its way into court, the station would maintain that Scott assumed the risk that some clients would not agree to reschedule their appointment. So, no, it’s not a breach of contract.

How to turn the situation into a win-win

It is seldom a good idea to pick a fight with the press or media. I told Scott this can be turned into a win-win. He doesn’t need a lawsuit, and the radio station — especially the talk show’s staff — does not need to reveal their incompetence to the public.

I recommended he speak with the station’s general manager and propose being a guest on the air to discuss the need for couples to schedule a consultation with a good financial planner and how to find one. “Turn this into a win for the station’s listeners,” I said, “and the benefits will come back to you tenfold.”

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post Stood Up by a Radio Show: But Was It a Breach of Contract? appeared first on Dennis Beaver.

Arizona readers, 80-year-old Sandy and Jim, sent this email with an offer they almost accepted:

“We own 100 acres of land ideal for a solar farm and just received a letter of intent (LOI) from a San Francisco company wanting to lease it.

“We were about to sign and return the document when we came across your article ‘Leases of vacant land for solar farms pose great risks to owners.’ What do you think of this LOI? Thanks.”

Hanford real estate attorney Ron Jones — who helped me with that earlier article — explained the elements of a letter of intent.

What is a letter of intent?

“It outlines the basic terms of a proposed contract, lease or option, sent to the property owner in hopes that an eventual agreement will be accepted. Consider it a knock on your door with an ‘I am interested in your property on these terms.’

“The property can be anything from industrial machinery, a million dollar yacht, a business, employment, to land.

“In most cases, a letter of intent is not an enforceable contract, but some of its specific contents might be. So, if you receive one, and are tempted to sign, it would be a mistake not to have it reviewed by a lawyer who can clarify points you might not fully understand,” Jones says.

So, consider an LOI as a “cut to the chase,” designed to benefit the offeror by saving the time and expense of drafting a tailor-made agreement for someone who might be uninterested in selling or leasing the property.

Watch Out For These Clauses in an LOI

Jones cautions, “An LOI can lead to some real problems, especially if it contains language that was in the one sent to your readers.”

For example:

Confidentiality

“This agreement will be treated in confidence and no disclosure will be made without Tenant or Landlord’s prior written consent, except as required by law.”

Exclusivity Agreement

“Owner agrees that until the earlier of (a) signing of a lease, or (b) 300 days after the execution of this LOI have passed, the property shall be withdrawn from the market and owners will have no discussions or negotiations with any third parties concerning its possible sale, lease or the offer itself.”

Jones points out, “This means that the couple may be forbidden to discuss the terms of the LOI with their own real estate advisor, and the property will be in limbo for almost a year. If better offers come in, the owners can’t discuss them. This is over-reaching.”

It’s Now or Never

A cover letter to the LOI gave two weeks to respond or the offer would lapse, resulting in the hoped-for response: “They are offering us a great deal of money per acre and we certainly don’t want to let this thing die on the vine,” Jim wrote.

Jones’ take? “The solar farm developer is putting pressure on the couple and it may be considered elder financial abuse since they know their age. It is pure nonsense because the land isn’t going anywhere. They should contact the company and say, ‘We understand you would like this signed quickly, but we need time to run it by our family lawyer.’ It is virtually certain they will agree and just ask to be kept informed.”

He adds, “If the response is, ‘We need it by that date or all bets are off,’ then, they’ve just done the couple a real favor because these guys can’t be trusted.”

Unreasonably long due diligence time frames

Due diligence is designed to lessen risks to the party financing the project and to discover the potential impacts on the site. This may require input from civil engineers as well as archaeological, environmental, water, land and title experts.

Typically, this takes anywhere from eight to 18 months.

Jones underscores, “Before committing to a longterm relationship with a developer, the owners need to conduct their own due diligence to be certain they are dealing with a legitimate company that has a good reputation. Therefore, research their online presence, including reviews, serious complaints, and get references from others who have leased to them.”

Bottom line: It’s always a good idea to consult with a lawyer if you receive an unexpected LOI.

Dennis Beaver Practices law in Bakersfield and welcomes comments and questions from readers,
which may be faxed to (661) 323-7993,
or e-mailed to Lagombeaver1 – at – Gmail.com.

The post Know this before signing a ‘letter of intent’ appeared first on Dennis Beaver.

“I am the CEO of an accounting firm that is looking into leasing a solar system for our 8,000-square-foot office building. Some of your articles on solar have been very negative as to leasing options. We have met with solar salespeople who have given us energy-saving projections that seem reasonable, as well as the impression that leasing is the best way to go. Are you still to opposed to leasing these systems, and if so, why? Thanks, ‘Mike.’”

Yes, I am strongly opposed to leasing solar, and I’ll tell you that not a week goes by when I have not heard via this column from businesses and homeowners who are pulling their hair out and going crazy while trying to obtain service on their leased unit because their seller went out of business, as thousands have across the country. For a real eye-opener, I recommend reading Time magazine’s September article Rooftop Solar Power Has a Dark Side.

But, first, let me tell you about Brenda, Chris and his mother’s 2023 Christmas that never really happened. Back in 2017, the couple moved into his mother’s home to help care for her ailing husband. They were looking for ways to save money and met with a sales rep from Vivint Solar, “who showed us realistic-appearing projections of huge energy savings on a system we could lease from them. There was nothing due up front: They would install, maintain the system — which they owned — and we would pay them for the energy produced over 20 years.

“We were promised prompt service if anything broke down, and all worked fine for about two years, and then the inverter failed — as they often do. Despite repeated calls for service, we were ignored for months, paying the normal rates of our expensive utility.”

Surprise! You owe us $4,000!

As Chris explained, every month, Vivint, which was taken over by Sunrun in 2020, would make automatic deductions from his bank account to pay for the energy the system produced. “The amounts varied greatly,” he pointed out. “And then, on December 15, we got a bill for over $4,000 with no explanation, no justification beyond the statement that they had failed to properly make deductions over 18 months.” Chris confirmed that they did make monthly deductions over the 18 months, but this $4,000 was in addition to those charges.

Request for proof falls on deaf ears

“I asked them for a detailed accounting (of what the extra charges were for), which they refused,” Chris said. “Then someone from their collections department phoned and insisted on large payments, again refusing to justify the amount. We had no Christmas, no presents, afraid to spend money. That is when I found your articles, and we spoke.”

In our phone conversations, I learned that Chris is an unemployed agricultural worker, and Brenda is off work, being treated for breast cancer. None of that mattered to the bill collector. So on January 26, I emailed Sunrun’s general counsel, with a cc to the company’s media department, simply asking them to look into this and work out something fair. Later the same day, Chris phoned and told me, “Mr. Beaver! They are forgetting the entire balance! They confirmed it via email.”

So, hats off to Jeanna Steele, Sunrun’s general counsel. This was a powerful example of the power of the press and an attorney who did the right thing, the fair thing. So, in my book, Jeanna is a real gem.

So, how much energy savings have Brenda and Chris realized all these years? “Around a thousand dollars a year, and it wasn’t worth all the recent grief,” Chris said.

Why leasing is often a lousy idea

Let me be blunt. If you can buy a system with cash or obtain a loan for a solar system at a reasonable interest rate, owning solar panels directly is the way to go, rather than going with a leased system.

Also, if there are tax breaks and incentives — which just got nuked in California, and sales are down 82%, according to CalMatters — they are not available with a lease.

Next, selling a property that has an active solar lease is often difficult to impossible, as the buyer must agree to assume the remaining contractual obligation. I have never spoken with one real estate agent who’s had anything good to say about trying to sell a property with a leased solar system.

Finally, I do not want anyone to walk away from this story thinking that I oppose solar energy in general. Quite the contrary! Friends who own their systems generally are delighted with the energy savings and budget for replacement of inverters and backup batteries.

There is one more consideration: your age. Will you live long enough to recover the out-of-pocket cost or complete a 20-year lease? Do you want to burden family with that “brilliant” solar idea?

The post Looking into Leasing Solar Panels? Think Twice appeared first on Dennis Beaver.

Every spring American businesses start their search for talent – potential new hires – by offering students summer internships.

Some are unpaid and observational. Others, hybrid – at first observational and if everyone agrees, it becomes a paid internship. Many are like real, paid jobs.

Often, faculty who have established trusting relationships with hiring managers, select students suitable for a particular position or company who are accepted sight unseen.

However, a personal statement is generally required that responds to a company’s specific questions about a student’s employment desires and life goals.

But what happens if a personal statement is submitted that, in the eyes of management, was just plain insulting?

“It was that poorly written,” as “Gene” described in an email. He sent me a copy and I agree.

His company operates meat processing facilities, which “require a certain kind of person to feel comfortable working here,” he says. “So, we cover your travel plus room and board for two weeks – on an unpaid basis – allowing a chance to see the reality of our business. If you are positive towards the job and we all get along, then you will become a paid summer intern.”

Offer of Internship Revoked

Upon receiving the personal statement, Gene immediately notified the professor the internship offer was revoked. This occurred within three days of the student being notified that he had been selected.

“I said the student’s essay failed to answer the questions, and had no paragraphs. It was a solid page of words in a tiny font size, impossible to read without a magnifying glass, and filled with rambling thoughts.”

Attorney’s Letter is Delivered

“The next day we received a letter from attorney ‘Jeff,’ whose law firm represents the student’s father, saying that we were in breach of contract and would be sued unless a financial settlement was reached.”

“Mr. Beaver, I read you in Kiplinger and thought this is a good story. Do I have anything to worry about?”

I learned that “Jeff” is a newly minted lawyer working in a large law firm, no doubt doing as told to keep his boss happy, regardless of any merit.

More often than you would think, clients intentionally fail to tell the whole story to their attorney, embarrassed or afraid that if they do, the lawyer won’t help them.

What Contract Did Gene Breach?

I phoned Jeff and said that I was looking into this interesting withdrawn internship matter. Would he explain for me how Gene could be in breach of contract?

“By revoking the offer – and you have seen the student’s personal statement, I assume – how was the young man harmed?”

… “Well, no I haven’t seen, uh, what personal statement?”

“The one that a 6th grade elementary school kid could have done better,” I replied with a congenial laugh, and emailed it to him at once.

… “Wow! I never saw this. It’s horrible! Our client’s son never told us about it. But there could still be a breach of an employment contract.”

“Jeff, maybe I am a bit dense, but where is the contract? The first two weeks were not paid and all expenses were entirely on the employer’s dime. The student knew within three days – plenty of time to seek other summer employment. So, he never had anything to lose in the first place. How was he harmed financially?”

I went on to note that going back to the first-year course at law school in Contracts, this is simply a revocable offer of a gift. And unless you rely on the offer to your detriment – doing something like buying a non-refundable airline ticket – there’s no basis to sue the person making the offer for damages.

Jeff thanked me for taking the time to talk and said, “I have to admit forgetting all about those gift cases.”

We ended our conversation on a positive note. Jeff promised to verify what I told him and get back to my reader. He did, sending a letter advising they were no longer pursing the matter.

University Students Can’t Write

The underlying issues in our story are a cancer in the American educational system. Just Google “Why Can’t American University Students Write?” and you’ll find dozens of articles.

Lyle Sussman, professor emeritus, College of Business, at the University of Louisville, writes:

“In my 42 -year career teaching undergraduate and MBA students I noticed a significant decline in the skills of: grammar, punctuation, vocabulary, appropriate level of formal/informal style/tone and failure to understand and relate to audience/reader. It seems as if students have little idea what a paragraph is.”

The post The case of the revoked summer internship offer appeared first on Dennis Beaver.

“Terry” was my first hoarder client. About 50 years old, he worked as a custodian at a high school in a small town not far from where I was living at the time.

He was a genuinely nice guy and proud of his collection of washing machines from the 1940s onward.

Now, “collectibles” to some people are pure junk to others and to Terry’s neighbors, his front and back yard, as well as the inside of his rented home had become a dangerous junkyard, complete with rats and other vermin that freely roamed the property.

The place was overflowing with, not just washing machines, but broken down cars, airplane parts, toilets, sinks, you name it.

In those years, he was known as a junkman. Today he would be called a hoarder.

He had received and ignored notices from his town’s code compliance officers to remove the items, and especially the things that made entry or exit from his home dangerous. With few window coverings, the home’s interior was visible, piled to the ceiling with “stuff.”

His wife and children were living in dangerous conditions that Terry did not acknowledge. With the assistance of code compliance, they and their landlord arranged for a meeting at my office to work out a clean-up plan with Terry – or he would face prosecution.

I was asked to drive him to my office. In reality — behind my back — during our lengthy afternoon meeting, Terry’s wife, with the enthusiastic approval of the landlord had embarked on something like an intervention. Later she told me, “I hired a disaster restoration company and told them to remove every last piece of junk from inside and outside the home. Anything of value was purchased by a scrap dealer.”

The crew did such a good job that when I drove Terry home, it took a few minutes before we could find his house!

I have to admit that it made me happy to see this crap gone and a bit of sanity restored to his family and the neighborhood. Terry got into therapy and did not repeat his hoarding behavior. He was lucky as there is a high relapse rate among hoarders.

But this was well before the psychology of hoarding became widely understood. Today, if the same things happened, some poor landlord – driven out of his mind by the insanity of having a hoarder as a tenant – could wind up being sued.

Seen as a mental illness – Landlords Must Protect Themselves

Once called “junkmen,” hoarders – who landlords and governmental officials agree pose major risks to the health and safety of not only themselves, but their families, neighbors and communities – are viewed as suffering from various forms of mental illness and are generally protected under the ADA, the Americans with Disabilities Act.

“This is why it is so important for landlords and property managers to have proper language in their rental agreements that covers these types of tenants and scenarios,” San Diego attorney Evan Walker points out.

“State law requires landlords to maintain habitable dwellings, and also requires tenants to keep their units clean and sanitary, disposing of garbage properly, avoiding excessive clutter and not damaging the property or using the premises in an improper way.

“So, when you are on notice that the tenant’s ‘stuff’ is blocking exits or doorways, interferes with ventilation or sprinkler systems, and attracts pests because of improper food storage – to list just a few – this could be a hazard for other tenants, and could be considered as a violation of the rental agreement and, likely, state law.

“At this stage, contact the tenant, point out what you have seen, and politely – but firmly – indicate that if the problem isn’t resolved, you may have to file an eviction suit. Be sure you can prove that you have brought these items to the tenant’s attention.”

Build your Case against the Hoarder

Pasadena property manager Jon Anthony Dolan says, “Document Everything!

“If the tenant will not respond appropriately and clean up the mess, you may have no choice but to evict them. So, begin preparing for the possibility now and document your correspondence with the tenant and keep detailed, chronological records. This means taking videos, photos, detailed notes which establish a record of the property’s condition. This material is critical to prove your case.”

Important: You are NOT evicting because they are a hoarder, but because of their behavior.

Dolan stressed the importance of understanding what you are NOT evicting them for – “You are not evicting them because they are a hoarder, because if you use that language, it is a violation of Fair Housing laws, since mental illness is a protected class.

“In addition to a possible violation of the rental agreement, often the hoarding behavior can be seen as a nuisance to other tenants if it substantially interferes with their use of the property. For example, filth that creates a pest infestation, and clutter in common areas can create accessibility issues for EMS personnel.”

Walker strongly recommends retaining experienced landlord-tenant counsel, “as hoarders are among the most difficult of tenants. They may be unlike any tenant you will ever have, and the risks of being sued for violating their rights are very real.”

Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. Contact Dennis Beaver.

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