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Please choose an area of practice
to review:
· Business Organization
· Creditor Collection
· Commercial Litigation
· Criminal Law
· Divorce
· Estate Planning
· Family Law
· Personal Injuries and Accidents
· Probate
· Real Estate
· Title Insurance and Closing Services
· Traffic Law
· Wills and Trusts
· Workers Compensation
Business
Organization
What are the different types
of limited liability organizational structures available for my business?
The most common limited liability organizational structures recognized
by most US states are corporations, limited liability companies, and limited
partnerships. Other organizational structures include professional
corporations, professional limited liability companies, limited liability
partnerships, and non-stock corporations. A non-stock corporation is a
non-profit structure used by charities. Each form of organization offers
different types of formation procedures, liability protection, management
controls and procedures, and tax treatment.
Corporations are divided into two primary types - S - corporations (also
commonly called a "small corporation") and C -corporations. These
two structures differ primarily in tax treatment and ownership limitations.
The IRS and most states treat a S-corporation similar to a partnership for tax
purposes allowing the shareholder to use pass through taxation. In an
S-corporation, the shareholder is personally taxed on all income and
personally deducts all losses. The corporate level tax is eliminated.
For S-corporations, the IRS and most states a) limit the number of
shareholders in a S-corporation to 35 shareholders, b) allow only one class of
stock, c) limit share ownership to individuals (not corporations or other
organizations) and d) require the corporation to be a US based company.
C-corporations do not have these limitations. Both C-corporations and
S-corporations are essentially the same for liability, operational and
management matters.
What are the advantages of incorporation?
One of the primary advantages of incorporation is the
limited liability the corporate entity affords its shareholders. Typically,
shareholders and directors are not liable for the debts and obligations of the
corporation; thus, creditors will not come knocking at the door of a
shareholder or director to pay debts of the corporation. In a partnership or
sole proprietorship the owner's personal assets may be used to pay debts of
the business. Maintaining the limited liability of a corporation requires that
the shareholders and directors follow all the rules of governance, including
holding annual meetings and maintaining meeting minutes.
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Creditor
Collection
How long after a debt becomes delinquent should I seek the help of a collection agency or collections attorney?
You should seek the assistance of a collection attorney as soon as possible after an account becomes delinquent to ensure that your contact and asset information remain current and to enable the quickest collection of your money.
What's the difference between a collection agency and a collections law firm?
The main difference between a collection agency and a collection law firm is that a law firm has the ability to use the court system to force the debtor to pay. Collection law firms are able to obtain judgment against a debtor and pursue collection of that judgment by the use of the legal system's various remedies.
Is there a statute of limitations on a debt owed to my business?
Yes. The statute of limitation depends on the state where the debt is owed and the type of debt owed. Contact your attorney for statute of limitation information on your particular debt.
Should my business simply write-off small debts owed us and only focus on the larger ones?
Small debts should be placed for collection along with large debts. Smaller debts are often collected by telephone calls and letters because it is not cost effective to use the court process on small debts. However, a collections law firm can collect small debts owed by the same debtor to the same creditor economically by combining the accounts and using the judicial process.
What are some simple things my business can do to reduce the amount of bad debt we are saddled with?
The easiest way to decrease your amount of delinquent receivables is to get good information from each debtor prior to delivering any goods or services. Important information to obtain in advance are the debtor's: name, address, home phone, work phone, social security number, bank, and employer name and employer address. Another easy way to reduce your amount of delinquent accounts receivable is to always obtain a personal guarantee when dealing with a business entity.
If someone who owes me money declares bankruptcy, am I automatically out of luck or are there other options?
You are not necessarily out of luck when a debtor files bankruptcy, but you should immediately stop all contact with the debtor and seek the advice of your attorney. There are some circumstances under which you may still collect your debt, but you will likely require a complete review of all of the relevant facts by
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Commercial
Litigation
What is "Commercial
Litigation"?
Commercial transactions can
give rise to commercial disputes. Commercial disputes often turn into
litigation, as the parties turn to the courts for resolution of the
dispute. Litigation is a fact of modern business life. When you are
faced with commercial litigation issues, you need the assistance of
experienced commercial litigation attorneys.
Commercial litigation takes
in any type of litigation or controversy related to the conduct of
business. The term is a broad one, and covers every type of dispute a
business might find itself involved in. Examples of areas included under
the general term "commercial litigation" include:
The list is not a complete
list of the types of actions covered under the heading commercial
litigation, but it will give an idea of the broad scope of the term. It
will also give an idea of how commercial litigation matters can range
from relatively simple, uncomplicated matters, to highly complex matters
that could take several years to resolve. Litigation that is handled
improperly could lead to additional unnecessary expense for you and your
business. There is not only the expense entailed in losing your case,
but there is the added cost of needless delays, caused by work done
poorly. Commercial litigation is something that should only be handled
by very skilled litigation attorneys. There could be too much at stake
to leave the matter to less able counsel.
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Criminal
Law
I am charged with a crime. Do I need a lawyer?
Yes. Anyone facing criminal charges should hire a lawyer. You have the right to the assistance of an attorney at all stages of a criminal prosecution. It is important to have an attorney present in court to protect your rights. Criminal charges, even minor ones, can result in incarceration and fines. However, there are many unexpected consequences. College students convicted of drug crimes (even possession of marijuana) could lose financial aid. Some crimes may result in the loss of a driver’s license. Many crimes will prevent you from owning or even possessing a firearm. A criminal conviction may mean that you lose your job. Once convicted of a crime, it can be very difficult to rent an apartment since landlords are concerned about liability for renting to convicted felons. Felony theft convictions may result in you losing your ability to get public assistance or be bonded. Given what may potentially be at stake, it is necessary to look at all options for defending a criminal charge. A lawyer can look at all options available to you and explain them.
The police suspect I have committed a crime. Do I need a lawyer?
Yes. As a suspect, you have the right to have an attorney present during police questioning and can refuse to speak to the police. You do have the right to remain silent and anything you say will be used against you. A police interrogation is a crucial time of any criminal investigation and you should never talk to police without the advice of a lawyer when you are a suspect in a crime. An attorney can also help you develop evidence early in the process that may prove your innocence.
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Divorce
How are debts obtained during a marriage divided in divorce in the State of Wisconsin?
Debts are not uncommon at a time of divorce. Often times this is what may instigate the problems that lead a couple down the road to separation. Most attorneys will attempt to settle the debt disputes in the Marital Settlement Agreement, because it is during the process of divorce that the couple should typically withdraw from all joint bank accounts.
What is an uncontested case?
A divorce proceeding in which there are no disputes as far as the legal issues. Both parties tend to agree on all matters and are typically just ready for the whole process to be over with. Sometimes an uncontested case is caused by a missing spouse or one's refusal to participate.
What is a contested case?
The minute the complaint or summons is filed the case becomes contested, and is contested until all disputes are resolved, such as support, custody, visitation, and division of assets. Many divorces start out with the intent of being uncontested under claims of no-fault, but greed often takes part when disputes over the legal issues take place.
If spouses agree on everything do they need an attorney?
If you are going to have an uncontested divorce and you both agree on everything it is still recommended that you hire an attorney to review the papers and make sure everything seems fair. You may be surprised what happens if you do not. A lot of people end up signing what they thought was discussed but actually was not. The state of Wisconsin will not allow one attorney to represent both parties due to the conflict of interest.
Can I get more money if the divorce was not my fault?
Most likely not, because the state of Wisconsin does not weigh in marital behavior when making asset distribution decisions, or awarding alimony.
What does a mediator do?
A mediator may be used if the spouses do not wish to fight in the court room. They choose this alternative to sit down with a mediator that does not make decisions, but instead helps bring the not so clear into reality. The mediator helps the spouse's to understand and express their objectives with the intent to be able to achieve them through negotiation.
What are pleadings?
The initial formal written complaint or summons that is filed with the court and delivered to the spouse is the first pleading , and the response is the second. The response will either admit or deny the allegations made in the complaint. Basically they are the papers filed to formally put a case before the court.
How are temporary orders obtained?
It starts with a proceeding in which one side will request some kind of relief, such as custody and support, before the final judgment on the divorce has been made. Since the divorce process can be quite lengthy at times, many disputes must be resolved on a temporary basis. Without temporary orders it is very difficult to have somewhat of a normal life during the process. If need be a testimony in court hearings is what will resolve disputes over temporary arrangements, but it is not recommended in most situations to take spiteful unnecessary actions.
What if a spouse does not follow temporary orders?
A petition for contempt will need to be filed and if the delinquent spouse can not show good reason for disregarding the order, then a fine or imprisonment may take place.
How long does it take to get a divorce in Wisconsin?
It all depends on how difficult the case is. There is a minimum period of 120
days in the State of Wisconsin. If the case is contested it could take over a year.
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Estate
Planning
What is an estate plan?
An estate plan is a systematic plan for the accumulation, conservation and
distribution of an estate. A good estate plan minimizes taxes and accomplishes
the owner’s goals efficiently and effectively. When the owner dies, the
estate plan distributes the estate with minimum administrative costs. The
sooner an estate plan is made, the more effective it can be.
What are the current estate
tax limits?
In 2005 the Federal Estate Tax Exemption for Individuals is $1,500,000 and in
2006 the Exemption will be increased to $2,000,000. However, in Wisconsin the
State Exemption remains at $675,000. If your estate is in excess of these
amounts you should contact an attorney to review your estate plan.
Can I make tax-free gifts to
my children during my lifetime?
Any person may make annual gifts of $11,000 to any other person without tax
implications. These gifts qualify for for an annual exclusion. In addition,
any person has a $1,000,000 lifetime exemption for gifts to individuals. Gifts
made utilizing the lifetime exemption require the filing of a gift tax return.
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Family
Law
Can Custody
Rights Be Modified?
Absolutely. You can go back to court to change a custody order if there is a substantial change of circumstance that has a significant, adverse effect on the child (such as visitation problems, erratic behavior, relocation and impact on child-parent relationship, change in employment, residence, or marital status). Because we live in a highly mobile society, it is strongly recommended that you periodically evaluate the parenting plan. The courts recognize that many factors (such as, children’s age, relationship with both parents, the parents’ relationship, the wishes of the children) can be altered over a period following divorce and, though reluctant to change the parenting custody plan, the courts will do so if it is clearly necessary and in the best interest of the child.
What Are Pre-Marital Agreements?
Pre-Marital Agreements (also called "pre-nuptial" or "ante-nuptial agreements") are binding legal contracts between you and the one you intend to marry. Among the purposes people have in wanting such written agreements is to try to ensure that their assets remain theirs if the marriage fails, to provide that their assets, or at least a large portion of them, go to their children in the event of death, and to work out arrangements for matters that may become problems after the marriage. For some, it is a smart and practical way to acknowledge the fact that nearly half of all marriages end in divorce.
Can I Do a Pre-Marital Agreements Without an Attorney?
In theory you can do almost anything without an attorney. But the reason you want to have a pre-marital agreement is so that it is far more likely to stand up in the event of marital
trouble. Doing a Pre-Marital Agreement without separate counsel for each party is a road to disaster, and you’ll never know the danger until it is too late.
Must an Adoption Be Handled Through an Adoption
Agency?
No. The natural parents of a child can directly deal with the adoptive parents, in a case such as one in which an adoption occurs among families and friends. Private adoptions (also referred to as "independent adoptions"), facilitated by attorneys, doctors or other intermediaries, are also becoming more common. When dealing with a private adoption it is important to bear in mind that it is against the law to pay someone (or pay a broker's fee) for a baby but providing the reasonable costs of medical and legal expenses of the natural parent is permitted. Private adoptions may also occur where the natural
parent(s) live in one state and the adoptive parents reside in another. Adoptions in which the child is from another country are increasing in frequency.
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Personal
Injury
What
should I do if I’ve been injured?
If you or someone in your family has
been injured, you should seek competent professional advice as soon as
possible to see if you have a claim for personal injury. There are many types
of personal injuries, and the cause of an injury is not always clear. We can
assist you in determining whether you have a valid claim, and if so, who is
responsible and what compensation may be available for you.
What
if an insurance company contacts me?
If you have been injured, do not discuss your injury or the way it
happened until you have consulted a lawyer. These statements might be
incomplete or taken out of context so as to be harmful to your claim at a
later date. Do not sign any papers or agree to any settlement, as this may
affect your right to pursue your claim. Always seek competent legal advice
first.
Will
there be a charge to evaluate my claim?
No. We will meet with you to discuss your injury free of charge. If we
agree that your claim deserves further investigation, we will obtain the
necessary records and evaluate them at no cost to you.
How
does Salutz & Salutz get paid?
You pay no fee unless we are successful in obtaining compensation for your
injury. We handle personal injury claims on a contingent fee basis. This means
that the legal fee is a percentage of the amount recovered, and there is no
fee due unless and until money is actually collected for you.
What
about expenses?
There are certain expenses, such as court costs, expert witness fees and
fees charged by hospitals and doctors for medical records, involved in bringing a personal injury claim. You do not pay these expenses
until the conclusion of the case, when money is recovered for your claim.
How
much of my time will this take?
Surprisingly, your claim will not require a great deal of your time. After
the initial interview, we will do most of the work for you. In the typical
personal injury case, you would be required to come to the office two or three
times to answer written and oral questions about what has happened to you.
Aside from these questions, which are a routine part of the court process,
very little of your time will be required.
Will
I have to go to court?
You will not have to go to court unless your case cannot be settled and must
be tried. The vast majority of claims are settled before trial; however,
because of the many factors involved, it is impossible to predict whether your
particular case is one, which will be settled, or one, which must be decided
by a jury.
Will
I hurt the person I’m suing by bringing a personal injury claim?
Almost all personal injury claims are defended by insurance company lawyers
and paid out by insurance, so the person or corporation you sue will not have
to pay any money out-of-pocket. A personal injury claim is a civil case, not a
criminal case, and the defendant will not go to jail because of the claim.
Is
it ever too late to bring a claim?
It is important to consult a lawyer as soon as you are aware that you have
been injured, because there are statutes of limitations, which prohibit the
bringing of old claims, and because it is easier to gather information about a
recent injury. However, even if you were injured sometime ago, you may still
be able to bring a claim.
Why
should I bring a personal injury claim?
If you are injured through the fault of someone else, you are entitled by
law to compensation for your injuries. This compensation is available not only
for expenses you have already incurred, but for losses you will suffer in the
future. If you or someone in your family is severely injured, this
compensation can protect against changes in family situations, so that the
injured person’s future is secure. Also by bringing a claim, you may be able
to prevent a similar injury from happening to someone else.
Do
I still have a claim if my medical bills were paid by insurance?
Yes. You are entitled to compensation for your medical bills regardless of
whether or not they have been paid. In addition, you may be entitled to
compensation for any other aspects of injury, such as time lost from work,
scarring or disfigurement, future medical expenses, and pain and suffering.
What
is the value of my claim?
The value of your claim depends on a variety of factors, such as the severity
and permanency of your injury, the amount of your medical expenses, the
liability of the defendant, and whether the case is to be tried or settled. It
is impossible to estimate the value of a claim until the case has been fully
investigated from all aspects, and you should be wary of anyone who tries to
tell you the value of your claim at an early stage. As each person’s claim
is very different, you should not be misled by verdicts or settlements you
hear or read about for similar injuries, because your individual claim may be
worth much more or much less.
After
we have completed a thorough investigation of your case, we are in a position
to offer you our opinion as to the value of the claim. If the insurance
company offers to settle your claim, we will discuss the proposed settlement
with you, and give you our advice about whether or not to accept the amount
offered. Of course, the ultimate decision as to whether or not to accept the
insurance company’s offer of settlement or to allow a jury to determine the
value of your injuries is always up to you.
If
I have a claim how long will it take?
The initial evaluation of a claim may take from four to six months. After
a lawsuit is filed, the length of time depends on how crowded the court
calendar is, and whether the insurance company is willing to settle the claim
before the trial. Most cases take between two and four years to complete.
During this time medical records and other documents are requested and
thoroughly reviewed by our staff as well as experts in the field when
necessary.
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Probate
What
is "Probate"?
Probate is the process that transfers legal title of property from the estate of the person who has died (the "decedent") to his or her proper
beneficiaries. The term "probate" refers to a "proving" of the existence of a valid Will, or determining and "proving" who one's legal heirs are if there is no Will. Since the deceased can't take it with him, probate is the process used to determine who gets his or her property.
Why is Probate Necessary?
The primary function of probate is transferring title of the decedent’s property to his heirs and/or beneficiaries. If there is no property to transfer, there is usually no need for probate. Another function of probate is to provide for the collection of any taxes due by reason of the deceased's death or on the transfer of his or her property. The probate process also provides a mechanism for payment of outstanding debts and taxes of the estate, for setting a deadline for creditors to file claims (thus foreclosing any old or unpaid creditors from haunting heirs or beneficiaries) and for the distribution of the remainder of the estate's property to ones' rightful heirs.
Who is Responsible for Handling the Probate Process?
The Personal Representative (sometime also referred to as the "executor" or "executrix" if there is a Will, or the "administrator" or
"administratix" if there is no Will) is appointed as part of the probate proceeding and has the responsibility for managing the estate through the proceeding, subject to established probate rules and procedures. In many states, the probate court has a considerable amount of control over the activities of the Personal Representative, and requires that she or he obtain prior permission of the court before certain actions, such as the sale of real estate or business interests owned by the estate, may take place.
Can I Handle Probate without an Attorney?
While there is no requirement to use a lawyer, probate is a rather formalistic procedure. One minor omission or a missed deadline, can cause everything to come to a grinding halt or expose everyone to liability. The death of a family member or friend sometimes tends to bring out the very worst in some people. Experience shows that even in close families there is a tendency to get overly emotional about relatively trivial matters at the time of a loved one's death. Such minor matters, or any delays or inconveniences can be upsetting, pose issues of fairness, and create unfounded suspicion among family members. Thus it generally is a very good idea to "let a lawyer do it".
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Real
Estate
How
Can I Protect Myself Before I Buy?
For starters, know what you are buying. For example:
(1) Are there any zoning violations on the property which will have to be corrected?
(2) Are there any environmental hazards which may be present (someone in the distant past may have dumped environmental hazards on the property so an environmental assessment should be made)?
(3) Are there any apparent conditions on the property which could potentially harm someone who happens to come on the property?
(4) Are there any restrictions or covenants in the purchase contract that would be hard to comply with?
(5) Will you be able to pay the mortgage on time?
(6) Are there any potential defects in the chain of title? Resolve these issues before you take title, interest or possession.
Real property owners can protect themselves from many of the risks of ownership by purchasing insurance. The two most common forms of insurance for real property includes liability insurance and title insurance.
The Seller is Suggesting That We Sign a Letter of Intent Before We Prepare a Contract. Is This a Good Idea?
Often it is. By signing a letter of intent – especially in a complex transaction – you know earlier on that you and the seller agree on the major terms of the deal. Obviously, it is better to know this before you put time and expense into preparing the contract itself. A word of caution, however: The letter of intent should state specifically that it is not a binding agreement. Only the contract itself should be binding. You want to be free to get out of the deal if, later, you and the seller cannot reach an agreement on the details of the contract.
Consider having a lawyer draft – or at least review – the letter of intent.
What Are Some of The Things The Buyer Should Be Sure to Put in The Contract?
The contract should also include a standard clause that enables the buyer to have an inspection made of the property. It should allow the buyer to terminate the deal and receive a full refund of the deposit if s/he
(1) is unable, despite good faith efforts, to obtain financing within an agreed upon time at prevailing interest rates
(2) discovers any serious mechanical problems or environmental hazards with the house
(3) discovers any other serious problems that could not have been discovered before signing the contract.
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Title
Insurance and Closing Services
What is Title Insurance and Why do I Need
It?
Title insurance guarantees that you are receiving full legal ownership of the commercial property that you are buying.
Owner's title insurance will cover you if a problem regarding legal ownership
arises that was not discovered during the title search (for example, if an
earlier deed was forged, or that side yard you thought you were buying
belonged to someone else). The title insurance will pay attorney fees, as well
as all other costs in defending the title. Although title problems are
infrequent, they could result in the loss of the house, so it can be wise to
protect yourself. The bank, or lender, will likely also insist on title
insurance to protect its investment - at your expense.
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Traffic
Law
What Should I
Do After Being Given a Traffic Ticket?
In deciding what to do about a traffic ticket, you need to consider such things as:
The potential punishment that you face for the charged violation of law. Any possible defenses, justifications or mitigating circumstances.
The impact that the violation of law will have upon your privilege to drive. Whether a plea of guilty, or a finding of guilty, will impact any claims persons injured may have against you, or claims you may have against other parties. The impact that the violation of law will have upon your automobile insurance. The amount of energy, time and cost involved in contesting the charged violation. The desirability, and cost, to retain an attorney to defend you and protect your rights.
As soon as you can, write notes about the circumstances that lead up to the issuance of the traffic ticket while the events are still fresh in your mind. Include the time, the weather, the exact location, what the officer said to you, and what you said to the officer (even if you said some things you shouldn't have). Then begin to gather all the required information. You may want to ask an attorney for some advice.
If you learn that the proposed fine is affordable, the admission of guilt is not likely to be used in a lawsuit against you, and the impact upon your driving privilege inconsequential, you might decide to enter your guilty plea, pay the fine and continue your life. On the other hand, after weighing the consequences of an admission of guilt or a no contest plea or a finding of guilt after a trial with the cost and possibility of successfully defending against the charge, you might want to prepare to contest the traffic ticket in court. This decision must be based upon a careful analysis of the relevant facts and law governing the particular traffic ticket.
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Wills
and Trusts
Who Should Have a Will?
Anyone who cares how his/her property is distributed upon his/her death, or who would handle matters for those she or he leaves behind, or be guardian for minor children. After all, "you can't take it with you".
What Happens if I Do Not Have a Will?
If you die without a Will, you have died in testate. Your property must go through the probate process in order to have the legal title to the property transferred to your heirs at law. Your heirs at law are defined by applicable state statutes. The law of the state where you live controls the distribution of your personal property.
Should I Write My Own Will?
No. A Will is a critically important legal document. IF YOU DIE YOU WILL NOT BE AROUND TO EXPLAIN WHAT YOU INTENDED. A Court will have to interpret your Will.
Anyone who thinks she or he would be better off without the self-prepared Will can contest it. If it does not meet some very stringent tests it can and will be disregarded. The costs of litigation can -- and too often do -- wipe out an estate.
What is a Trust?
A Trust is a well recognized type of legal entity which is used to hold legal title to property for the benefit of one or more persons. The person creating the Trust is often known as the Trust Creator or Grantor. The person or institution holding legal title to the property is called the Trustee. The persons who are intended to benefit from the Trust are known as Beneficiaries.
Why Create a Trust?
A Trust, if properly drawn and "funded", can be extremely helpful in many situations such as:
(1) to avoid a conservatorship. If property is held in a Trust, a successor Trustee can step in and take over management, without the delay and expense of going to court to appoint a "conservator" to manage the property, if the Trust Creator becomes disabled.
(2) to avoid probate. A properly drawn Trust is a separate entity that does not die when the creator dies. The successor Trustee can take over management of the Trust estate and pay bills and taxes, and promptly distribute the Trust assets to the beneficiaries, without court supervision, if the Trust agreement gives the Trustee that power.
(3) maintaining privacy. Trusts, unlike Wills, are generally private documents. Your neighbors and the public would be able to see and how much you had and who your beneficiaries were under a Will, but usually not with a Trust.
(4) help keep certain property separate from other property. For example, if you want your daughter to get your vacation home, and your son to get your house in the suburbs, if you create a separate Trust for each property there would be no question of commingling or who gets what.
In many estate plans, the Trust is the central tool that is used to control and manage property. A Trust continues despite the incapacity or death of the grantor. It determines how a Trustee is to act with respect to the Trust estate. It determines how property is to be distributed after the death of the grantor. A Trust is thus one of the major estate planning tools used for a grantor's property so that court interference in the event of incapacity or death can be dramatically reduced (if not completely eliminated).
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Workers
Compensation
What Is Workers Compensation?
Each state has its own workers' compensation laws to handle claims from employees who are injured on the job. These laws are strict liability - fault and negligence by the employer need not be established in order to collect benefits. However, the injury or illness has to be incurred in the course of employment in order for the workers' compensation system to provide benefits to the injured worker. Since workers' compensation law imposes strict liability on employers, it is the exclusive remedy for an employee's injuries or illnesses arising out of the course of employment.
What Benefits Are Typically Available Under Workers Compensation?
There are three major components to workers' compensation:
(1) Medical Expense - the cost for hospitals, doctors, medical treatment, etc.
(2) Disability Pay - either temporary while you are getting back to normal, or permanent if you will never fully recover. The amount varies, but can be as high as one-half to two-thirds of your normal pay.
(3) Vocational Rehabilitation - if your injury renders you unable to perform the usual duties of your occupation, you may need re-training so that you can enter into a new trade or business. Also, you may need physical therapy to get your normal strength back.
Since workers' compensation imposes strict liability without inquiry into fault, an employer could be penalized where its conduct was egregious - violation of federal or state safety standards, failure to correct known defects or other conduct - situations where there is a need to punish and deter such conduct in the future.
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