05.27.09
Posted in Tax at 11:23 am by Eric
“When the king of Bithynia died he left his entire kingdom to the Roman Senate. The Bithynians had been loyal to Rome during the first revolt of Mithridates and they enjoyed tax immunity. The gift of the kingdom to Rome seemed like an appropriate way to show appreciation to the ever-so-generous Senate. The king did not realize the legal implications of this provision in his will. As a new Roman territory, Bithynia would no longer have tax immunity. It now had the same legal status as land that had been forfeited to Rome as punishment for rebellion. Bithynia was open for new taxation or rental in whatever form the Senate desired. This blunder by the king’s lawyer was probably history’s worst example of estate planning.”
Charles Adams, For Good and Evil: The Impact of Taxes on the Course of Civilization (Madison Books, 2001), pp. 91-92.
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05.21.09
Posted in Employment Law at 11:24 am by Eric
Although a former employee is allowed to compete with his former employer, The Indiana Trade Secrets Act (IC 24-2-3-1 et seq.) provides that a former employee may not use trade secrets or other confidential information acquired during employment in a manner that is detrimental to the former employer’s interests. This applies even in the absence of a written non-compete agreement. Michigan has a similar statute.
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05.20.09
Posted in Bankruptcy/Creditor Rights at 11:09 am by Eric
So, you’ve repossessed that Trans-Am (with the spread eagle on the hood) for nonpayment and lapse of insurance, with no bloodshed and the debtor’s stash of weed still in the glove box. You have it sitting at the repo company’s pen, you’ve obtained repo title, and you sent a notice that the debtor has ten days to redeem it. Everything is good, right?
Maybe not. If the debtor files for bankruptcy before expiration of the redemption period, you have to give the car back . . . if your debtor resides in Michigan.
There’s a “split in the circuits” on this issue, which means some federal circuits say one thing, others say another. Michigan is in the Sixth Circuit, and the Sixth Circuit says, “Creditor, give it back, no exceptions. If you don’t, you’ll be in violation of the automatic stay.” Other circuits (including the Seventh, I believe, which is where Indiana is located) say the creditor can keep the vehicle without violating the automatic stay if the creditor isn’t adequately protected. So if the debtor has let the insurance lapse or the value of the car is less than the debt, you can keep the vehicle pending receipt of adequate protection or issuance a court order directing you to give it back.
So, bank clients south of the border that is 600 yards from my house have it better than bank clients north of that border. I’m not saying it makes sense, but until the Supreme Court rules on the issue or Congress passes an amendment to the Bankruptcy Act that clarifies the situation, that’s what we’re stuck with.
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05.15.09
Posted in Tax at 5:30 pm by Eric
The Christian Science Monitor criticizes the flurry of sin taxes being tossed around the Beltway. Excerpt:
Remember: one man’s sin is often another’s little piece of heaven on earth. Our ability to control the personal details of our lives is rare and precious. What a shame if the Statue of Liberty no longer held up a torch of liberty but instead a ruler to whack citizens across the knuckles when they reach for a treat.
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05.08.09
Posted in Uncategorized at 3:45 pm by Eric
Ten Most Bizarre Moments in Legal History. Pretty good list. Sample:
Heather Mills, upset with what she regards as a paltry $48.6 million alimony settlement from her ex, Paul McCartney, takes justice into her own hands during a hearing earlier this year. Grabbing a pitcher of water, she dumps it on Fiona Shackleton, McCartney’s attorney. How hated is Mills? For the first time in history, the world sympathizes with a rich man’s divorce lawyer.
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