Toys R Us Bankruptcy

With the ever-growing popularity of online shopping, it is a wonder that so many brick and mortar stores are still up and running. The days of running out to the store to grab the latest and greatest item are almost completely a thing of the past, and many retailers are feeling the strain. Now another kid’s retailer has taken a hit with the recent Toys R Us bankruptcy.

Toys R Us announced that it filed for Chapter 11 bankruptcy protection on September 18th, 2017. This filing will help the toy retailer relieve itself of debt left over from the $6.6 billion acquisition by Bain Capital Partners back in 2005. At the time, that deal was valued at $6.6 billion. Since the acquisition, the toy giant has accumulated $4.9 billion in debt with $400 million having interest payments due in 2018 and a total of $1.7 billion that is due in 2019.

It seems that the acquisition of Toys R Us had more to do with the value of the real estate. The deal came a year after K-Mart and Sears merged based on the idea that combining the real estate value of both stores would help to strengthen both.

Toys R Us now joins Payless ShoeSource and Gymboree, which are among the retailers that have also filed for bankruptcy over the past two years. This bankruptcy protection filing comes after other private equity-backed retailers closed up some of their locations earlier this year.

Toys R Us currently has 1,600 stores open around the world (including Babies R Us locations). The stores will continue to operate as usual, but the company's operations outside of the US and Canada are not a part of these protection proceedings. What will happen with these locations remains to be seen. However, the company did say that it also intends to seek protection in parallel proceedings for Canada as well.

The company also said that it has already received a commitment from some lenders for a total of over $3 billion in debtor-in-possession financing. This is still subject to court approval, but Toys R Us “is expected to immediately improve the Company's financial health and support its ongoing operations during the court-supervised process.”

If this lender help goes through, where does that leave the company? It will focus on restructuring its debt, allowing the financial flexibility to continue a turnaround. These initiatives will include improving its website and revamping the Babies R Us business. It plans to put a bigger focus on items that are less likely than diapers and blankets to be sold on Amazon, like cribs.

The Toys R Us bankruptcy protection also allows the retailer the ability to manage the upcoming holiday season and give some clear long-term plans to the vendors like Hasbro and Mattel.

“Today marks the dawn of a new era at Toys “R” Us, where we expect that the financial constraints that have held us back will be addressed in a lasting and effective way,” CEO Dave Brandon stated. He also went on to say that, “We are confident that these are the right steps to ensure that the iconic Toys'R'Us and Babies'R'Us brands live on for many generations.”

We have seen over the past year or two that many retailers are getting out from under the real estate footprint and finding that the fast-growing market is online. Relying completely on brick and mortar stores is out of sync with the everyday shopper, as fewer and fewer people head into the mall and instead log in to the store. You can read more about this “Retail Apocalypse” on Dan Higson’s blog here.

Basics of California Personal Injury Law

There are many types of injuries that can lead to a claim for personal injury, and every state has slightly different laws governing them. Here we will go over the basics of California personal injury law, including the time limit to file, compensation, and liability rules.

Statute of Limitations – Deadline to File

Each state sets a time limit in which the injured party can file the claim. There are different deadlines based on the type of claim being filed, and each deadline is called a statute of limitations.

In California, you are given a time limit of two years from the date of your injury to file a lawsuit for personal injury against the person you claim is responsible. Failure to file your claim in time may lead to your case being dismissed before you ever reach a trial on the facts of the underlying injury. If this happens, you will not be granted any compensation for your injury. It is very important to keep the statute of limitations in mind whenever you’re thinking about filing a claim.

If your injury was caused by the conduct of a government entity such as a city, state agency, or county, you have a reduced time limit of six months to file the claim. It also must stick to a unique and stricter set of rules.

Limits on Injury Damages in California

There are a few California laws that set limits on the types or amounts of damages that are deemed recoverable in a personal injury case. In most cases, California law prevents uninsured drivers from recovering any 'non-economic' damages after a car accident. This is true even if the other driver is completely at fault for the accident at issue. Non-economic damages include things like pain and suffering, physical impairment, inconvenience, and disfigurement.

There is one major exception to this rule limiting non-economic damages. The uninsured driver would be able to claim non-economic damages if he or she is in an accident where the at-fault driver was impaired or under the influence of drugs or alcohol.

Along with the non-economic damages law outlined above, California also caps payment for non-economic damages in medical malpractice lawsuits. This is law is known as the Medical Injury Compensation Reform Act (MIRCA), and the maximum payout in a medical malpractice case is $250,000.

Shared Fault Laws in California

In some cases of personal injury, the defendant may argue that you are actually at least partially at fault for causing the accident that creates the basis for your claim. If it turns out that you do share a portion of the blame for the accident, it will affect the total amount that you are compensated from the other party.

In cases of shared fault, the state of California goes with a 'pure comparative negligence' rule. This means that the amount of compensation you receive is reduced by an amount that is equal to the percentage of fault for the accident. For example, if the court determines that you are 25% at fault for an accident, and damages are estimated at $100,000, you would only receive $75,000. The remaining $25,000 represents the percentage of fault that is attributed to you.

Courts in California are obligated to follow this rule while hearing injury lawsuits that make it to trial, but if you deal with an insurance adjuster outside the court, they could raise the issue of the comparative negligence rule while discussing settlements. In this case, you are able to negotiate what the impact of the rule should be on the claim. In this case, having an experienced personal injury lawyer like Dan Higson on your side could help you get the compensation you deserve.

“Strict” Liability on Dog Bites

California has a very specific set of rules concerning injuries caused by dog bites. For this kind of personal injury case, the owner is considered to be 'strictly liable.' This means that the owner of the dog is always responsible for their dog's bites regardless of whether the owner did anything wrong. In other words, no amount of fault or negligence on the part of the owner needs to be shown in dog bite cases. In the event the dog bite took place in a public location or while the injured person was lawfully in a private place, the dog owner is completely liable, even if the owner doesn’t know of any previous aggressive tendencies of the dog. If you want more information on California dog bite cases, check out Dan Higson’s other blog here.

Personal Injury Resources

Here are several resources for more information for California personal injury claims:

• California Statute of Limitations
• California Pedestrians' Rights and Duties
• California Driving Offenses

Knowing these basics of personal injury law in California will help you as you set out to file your claim or prepare to defend against a personal injury case. Before you file, you need to make sure that you have a good case, and that you file it within the statute of limitations. There are many factors that can help or hurt your case, so it’s very helpful to get professional legal advice. Contact the Law Firm of Hathaway, Perrett, Webster, Powers, Chrisman & Gutierrez for help with your personal injury case. 805-644-7111

Hathaway Perrett Webster Powers Chrisman & Gutierrez, APC is a debt relief agency pursuant to 11 U.S.C. 528(a)(4) and assists individuals, families, and businesses file for bankruptcy relief under the Bankruptcy Code.  This website is a communication under California Rule of Professional Conduct 1-400.  No legal relationship is created by the use of this website and no legal advice is provided.  No guarantee or warranty is provided that your case or matter will achieve any particular result and testimonials and endorsements provided on this site do not constitute a guarantee, warranty, or prediction about your matter or case. This communication is made on behalf of Hathaway Perrett Webster Powers Chrisman & Gutierrez, APC and DANIEL A. HIGSON, State Bar No. 71212 is responsible for its contents.  All information contained on this website may be factually substantiated by a credible source, including data from the United States Public Access to Court Electronic Records (PACER) system.  Detailed data and information is available on request.

Accidents with an Uninsured Driver in California

Accidents with an Uninsured Driver in California

No matter how carefully you drive, accidents happen. You can’t control every factor around you, such as road conditions and other drivers. The State of California requires that everyone who operates a vehicle must have proof of financial responsibility, such as automobile liability insurance. However, studies by the Insurance Research Council have shown that as many as 1 in 7 drivers are uninsured. Car insurance is supposed to help cover the costs of medical and repair bills, but what happens when there’s an uninsured driver involved?

California Insurance Requirements

There are liability insurance requirements for all private passenger vehicles in California. The minimum requirements follow a 15/30/5 arrangement by covering:

• $15,000 for injury or death of a single person.
• $30,000 for injury or death of multiple people.
• $5,000 for property damage.

An at-fault driver is liable for any claims that exceed these numbers. It’s important to choose the right insurance policy for you when deciding whether or not to stick with the minimum requirements. The California Low Cost Automobile Insurance Program provides a source of relatively cheap insurance.

If you want another option, there are other sources of proof of financial responsibility, such as:

• $35,000 cash deposit to the California Department of Motor Vehicles.
• $35,000 surety bond from a company licensed for business in California.
• A certificate of self-insurance from the DMV.

Uninsured Drivers and Non-Economic Damages

Uninsured drivers in California are barred from receiving compensation for non-economic damages when he or she is the victim of a motor accident. Non-economic damages include:

• Disability
• Disfigurement
• Pain and Suffering
• Decreased Quality of Life
• Loss of Wages

The only exception to this rule is if the at-fault driver was under the influence of drugs or alcohol at the time of the accident and was convicted of a DUI.

Uninsured Motorist Coverage

If you are in a collision with an uninsured driver, there are several possible ways to receive compensation:

• Collision Coverage
• Medical Payments Coverage
• Health Insurance
• File a Lawsuit
• Uninsured Motorist Coverage

Although you are not required to have Uninsured Motorist Coverage in the State of California, it comes as an option with most insurance. It will help pay your medical bills, economic expenses, lost wages, and non-economic damages in the case of an accident with an uninsured driver. Uninsured Motorist Coverage takes the place of the liability coverage that should have been the at-fault driver’s responsibility. The coverage often has the same limits as regular insurance, but you should check your policy to make sure.

In California, up to 70% of all auto accidents are caused by an uninsured driver. Yet the insurance industry continues to advise their insured members to purchase inadequate uninsured motorist coverage. For many policies, the additional premium for adding $1,000,000 in uninsured motorist coverage is minimal. If you are injured in a car accident due to the negligence of the other driver, that driver will most likely not be uninsured or have a minimum insurance policy.

Bottom line: Get substantial Uninsured Motorist Coverage on your auto insurance policy. It may cost you as little as $30 to $50 dollars per year. It is the best investment you will make, and your insurance company probably won’t tell you about it without prompting.

Making a claim with Uninsured Motorist Coverage is different than a normal claim. Your relationship with the insurance provider changes. You must negotiate a settlement as if you were dealing with another person’s insurance. Because of this, it is a good idea to have an experienced personal injury lawyer represent you in this situation.

The process of filing an insurance claim involving an uninsured driver can be complicated and stressful. Insurance adjusters may underestimate the value of compensation you deserve for injuries and damages. If you are looking to negotiate with an insurance provider after an automobile accident or have other questions concerning a personal injury case, call Dan Higson today. And make sure you get Uninsured Motorist Coverage on your auto insurance immediately!