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High Profile Sexual Abuse Allegations Tied to a Longstanding Reality

Opening door.

Opening door.

Sexual Abuse Suits: A Change in Society or Exposing Institutional Problems?

Recently, there have been high profile sexual abuse lawsuits making headlines across the nation. In light of this, people often ask, “Is something happening to our society causing this increase in harm to children?” Based on statistical analysis it would seem it is more of an unmasking of longstanding problems.

For instance, in 2016, lawsuits were brought against MJJ Productions, a multimedia creation and distribution company founded by the late singer Michael Jackson. One lawsuit accuses MJJ Productions of negligence in the handling of sexual abuse allegations. While it is impossible to predict the outcome of pending litigation, the available evidence and allegations of “businesses [designed] to operate as a child sexual abuse operation, specifically designed to locate, attract, lure and seduce child sexual abuse victims” are disturbing at the very least.

More recently, lawsuits were filed against several prominent members of United States Gymnastics, as well as the governing body itself. The lawsuits allege negligence on the part of the USA Gymnastics. Specifically, it had a pattern of harboring, concealing, and promoting abusive behavior; this is in addition to other claims of action against the athletic organization. The civil action centers around the criminal prosecution of USA Gymnastics’ former team doctor, Dr. Lawrence Nassar.  He faces over 100 complaints of sexual abuse and sexual assault from the athletes that were under his care. According to one complaint, the USA Gymnastics failed to take measures to adequately protect its young athletes from him. The reason: they chose to handle the sexual abuse allegations against the doctor internally, rather than reporting these potential crimes to the appropriate authorities.

The Statistics Show that this is Not a New Problem

These headline cases should motivate people to be more sensitive and handle situations properly. Those in authority sometimes fail to properly react. They can often mismanage or mishandle reported abuse. All jurisdictions mandate reporting of potential sexual abuse of a minor to the proper authorities. The goal being to prevent persons and organizations from covering up the problem.

No one should sweep abusive conduct out of the public eye. Criminal prosecutions might initially stop a perpetrator, and civil cases might deter organizations, but public admonitions, settlements, and convictions make communities safer. This is unlike what happens when childhood sexual abuse remains hidden behind a veil of shame and secrecy.

While, headline cases might shake our belief in the people and organizations we trust, the unfortunate reality is this behavior has persisted. It lurks beneath the surface and research confirms as much. According to the National Center For Victims of Crime, 1 in 5 girls and 1 in 20 boys will be a victim of child sexual abuse. If that is not sobering, consider the further following statistics:

Reporting Sometimes Not Enough

Further sobering statistics highlight the realities of this problem. First, reporting the suspected abuse may not be enough. Even if holding perpetrators responsible, but not the those responsible for victims’ safety, may ultimately hide the problem. Those in power may know about patterns of abuse, but do nothing about it, or worst, turn a blind eye. News stories, reports, and studies bring light to an ongoing situation. However, the unfortunate reality is that the news does not cover less sensational stories, even while these victims’ pain is just as real.

Further Information

For more information on the cases discussed in this post you can visit:

  1. the Hollywood Reporter for updates on the MJJ Productions case; and
  2. the L.A. Times for the USA Gymnastics case.

If you or someone you know is a victim of sexual abuse, please seek help. You are not alone in this situation; there are people and organizations that can help. In Hawaii, there is the Sexual Abuse Treatment Center. For California, there are variety of resources, not only for sexual abuse victims, but many other kinds of problems, consider the California Victim Compensation Board’s Victim Resources page.

Lastly, if you are seeking legal representation to handle your matter, or a loved one’s matter, with diligence and compassion, please consider contacting Hew and Bordenave.  We assist clients both in Hawaii and California and diligently protect the identities of our clients.

DISCLAIMER: This post contains comments and opinions of cases in the news as well as factual data.  It does not constitute as legal advice to any particular person in any respect.  If the reader feels they have an injury or need specific advice based on the information contained in this post, then they should seek the advice of  an attorney in their relevant jurisdiction.  Hew & Bordenave, LLLP expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.

What’s with All this Paperwork, Part VI: Authorization Forms

Today’s Draw the Law will be simple, as I am working to get my enewsletter out as well.  Interested in finding out what my practice is about or what else I am up to?  Send me a message and I will add you to the subscription list.  Even if you ever get tired of my newsletter you can always unsubscribe as the service I use is CAN-SPAM Act compliant.  Anyway, let’s get to it.
In last week’s post I discussed notice, minutes, and written consent.  This week I will talk about authorization forms.  This is another piece of paper you will find in a situation with multiple shareholders and officers.  Notice a trend about corporate formality and recordkeeping?

What is an Authorization Form?

This question and this post would be better put into context if I discuss today’s paper in the terms of an “Authorization of Treasurer to Open and Use Accounts” form, which might be called something else depending on who is doing the drafting, but for all effect it authorizes the person who is the treasurer to open bank accounts on behalf of the business as well as other types of financial accounts.

There is no single correct form as this all depends on what the agreement among the board was on what powers were granted in the treasurer.  The authorization can be as wide or as narrow as the corporate body wants to make it.   The point is remember long ago when I discussed agents acting on behalf of the principal.  In this case, the treasurer is an agent of the corporation, who is the principal.  We all know that corporation is a legal person, but as it is not living person it must act through its agents, namely the officers and directors.

Generally, most financial institutions dealing with your corporation’s treasurer will want to see an authorization form and to have it on record as does your corporation’s owners.  Why?  Accountability.  Typically, in these authorization forms some kind of power is being granted.  In the case of the treasurer, it tends to be able to not only open bank accounts, but to also use the money in them.  Therefore, take a look at today’s “Practical Last Word” for addressing this issue.

How Specific Can These Forms Be?

They can be very specific.  In many ways, you can consider them an instruction to how the officers, directors, employees, and other agents of the corporation are to behave. Once again using the issue of the treasurer and bank account.  Instead of a general authority to open and use banks may be you have it so that other officers, employees, and agents can endorse checks (and other instruments) for deposit purposes only.  However, when the corporation has to pay out may be the treasurer can sign out checks that under $5,000.00, but for anything over it requires both the president’s and the treasure’s signatures.  May be the account is a checking account, may be it is for petty cash.  Bottom line: choices need to be made about how you want your organization to look like and operate, but you also need to work with professionals, such as financiers, accountants, attorneys, bank employees to make sure that what you decide on the inside is matched by conduct with outside third parties.

Practical Last Word

In theory, a written agreement should give you a right of recovery against the bad treasurer who abuses their authority.  However, typically the bad treasurer has run off with your corporation’s funds and you cannot find them.  So once again, an attorney can draft safeguards and protocols into your bylaws, employee agreements, etc . . . but it is up to you to enforce them and to watch out who you partner with.  In addition, work with your fellow founders to create checks and balances on the authorities granted when divvying up duties.  Finally, you may want to ask yourself can you trust this person with the money?  If you find yourself trying to have your attorney draft as many safety measures of accounting for the money, multiple signatures needed, and that the treasurer is only allowed to open a bank account with a small amount of money do you really want to be working with that person?

*Disclaimer:  This post discusses general legal issues, but does not constitute legal advice in any respect.  No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction.  Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.