Law Offices of Aericka J. Heavens, LLC bLAWg:

In the News: Response to Warren Buffett's Pro-Tax Position

2012-02-27T19:16:00.000-08:00

Well, it had to happen sooner or later... someone established The Warren Buffett Haters Club. Here is an interesting article in response to Buffett's NY Times op-ed piece published last summer (which we discussed here) that includes responses to Buffett from big names, such as New Jersey's own Chris Christie.

Hollywood Legal: Abdul settles personal injury lawsuit

2012-02-22T05:04:00.001-08:00

In 2009, a woman sued Paula Abdul claiming that she fell and was injured in Paula's driveway during a taping of Paula's reality show "Hey Paula." TMZ reports that Paula has settled the matter for the amount of $900,000.00 in damages, in addition to the $100,000.00 that the reality tv production company agreed to provide.

Your lesson? We always advise our reality tv and other entertainment clients to be fully insured for business-related incidents that might occur on personal property - arguing with your insurance company regarding coverage for a business-related incident on personal property, which is often used in filming reality tv shows, is the last thing you want to be doing once a lawsuit is filed against you.

Additionally, before filming or using your property for business use, be sure that the production company or other third party using your space provides you with an indemnity for such potential injuries.

Important Estate Tax Extension

2012-02-22T04:05:00.000-08:00

The Internal Revenue Service has extended the estate tax "portability" deadline affecting some estates, in a rare move, for the purpose of aiding many who weren't aware of the deadline when filing estate tax returns.

Portability is an estate tax provision Congress passed late in 2010 as part of its tax revisions for 2011 and 2012. It permits executors to make a post-death election to preserve the remaining portion of a decedent's estate tax exemption for use by the surviving spouse's estate.

Thus, the extension provides that, if the first-to-die spouse died during the first six months of 2011 and hasn't already filed an estate tax return, estates now have until 15 months after the date of death to elect "portability" of the estate tax exemption.

Hollywood Legal: Lawsuit over The Godfather sequel novel

2012-02-21T18:49:00.001-08:00

Paramount Pictures Corp. filed suit on February 17th in the Southern District of New York against Anthony Puzo, the son and executor of the estate of author Mario Puzo, to prevent the publication of a new sequel novel to “The Godfather.” Paramount bought the copyright to Puzo’s novel in 1969 and entered into a subsequent licensing agreement with Puzo in 1992.

Paramount alleges in the Complaint that it is trying to “protect the integrity and reputation of The Godfather trilogy,” by preventing the publication of the sequel. Paramount also claims that the Puzo estate not only has the right to prevent such publications, but that the Puzo estate has infringed its copyright and trademarks, by way of promoting the new novel. The parties are not strangers to dispute, having litigated over the 1992 licensing agreement in a 2008 lawsuit.

In the News: UK judge permits legal process service via Facebook

2012-02-21T17:06:00.001-08:00

Now there is an even better reason to make your Facebook settings private (or use a cool nom de plume)... a UK judge has permitted a defendant to be served with a complaint via Facebook. Ouch.

In the News: Taxes in 2013

2012-02-20T18:49:00.003-08:00

Here is an article in today's Wall Street Journal that has some great guesses for taxes in 2013. Most notably, as we discussed the other day, the 5 million dollar estate tax exemption and/or 5 million lifetime gifting amount will likely be lowered, so 2012 is the year to plan... even though it is February, it is not too early to start the planning process. Want to discuss more? Give us a call.

Celebrity Legal Round-up: What you can learn from their legal troubles

2012-02-19T20:17:00.002-08:00

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A former staffer of Jimmy Fallon’s show filed a gender discrimination lawsuit against Fallon and NBC Universal this week claiming that Fallon not only likes being ordered around by women, but that Fallon surrounds himself with an all-female stage crew, replacing the Plaintiff and other male employees with less qualified female staff.

Your lesson? Document all employee performance and disciplinary actions – a full record is key to beating a lawsuit from a terminated employee. Have more questions? We have some great labor attorneys in our “circle of trust” – give us a call and we can help.

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After Macy's filed suit against Martha Stewart claiming that she was double-timing it with her new J.C.Penney deal, Martha fired back this week claiming breach of contract because Macy's used it as a loss-leader for its own products. This has been a rough week for Martha, as her Chow Chow was also ousted at Westminster by a Dalmatian.

Your lesson? Non-compete agreements! Not sure how to advise the Chow Chow, though.

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This is a bad movie in the making... Stephen Baldwin v. Kevin Costner. An oil spill. A technology that might literally save the earth... You then throw in a joint venture agreement and an alleged breach of contract and you have the current litigation.

Your lesson? They did it right by having a joint venture agreement, which is always a great idea when you are entering into a transaction or business with another company or individual, but the remainder of the litigation will prove how comprehensive (or lacking) the agreement is to the issues between the parties.

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On a week where Sony music is taking heat due to their price increase of Whitney Houston's music after her death, more celebrities are taking aim at music companies and digital downloads... Kenny Rogers has sued Capitol Records, seeking a larger percentage of fees for music that has been digitally downloaded, in addition to other issues such as tax withholdings and foreign rate calculations.

Your lesson? Digital rights are at the forefront of many recent legal battles, from contracts to estate plans. Make sure your legal plan protects you and your digital property.

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Warner Bros. sent a cease and desist letter to Charlie Sheen this week, ordering him to terminate his use of photos owned by Warner Bros. that he was using to promote his new show, Anger Management.

Your lesson? When you are using photos or other property to which you do not own the trademark or copyright, be sure to have an authorization in writing from the owner of the intellectual property.

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As we discussed a couple of months ago, people need to watch what they tweet!! Courtney Love is being sued by her former attorney for libelous statements made via Twitter.

Your lesson? Again, watch what you tweet. Although libel can be difficult to prove, as it comes down to proving that a person was stating something as a fact, rather than as his or her opinion, everything you post on social media sites are for immediate consumption and, obviously, your statements are in writing and directly linked to you.

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The litigation between Julie Taymor's union and the company producing Spiderman: Turn off the Dark, a battle over Taymor's contractual rights to royalties as an author and collaborator and the company's allegations against Taymor as her role as director, has settled, the company agreeing to pay Taymor's royalties. However, Taymor's suit against the company with respect to the company allegedly infringing upon her creative input (I think my mom did this to me once) still rages on.

Your lesson? If you are serving dual roles in a production or company, be sure that your contract provides for separate rights for each service - i.e., if you are terminated in one position (Taymor as director), your rights on the other side (in this case, Taymor as collaborator) remain unaffected.

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Britney Spears settles lawsuit with company alleging that they were cut out of the deal that she made with Elizabeth Arden for her latest perfume.

Your lesson? Get everything in writing, especially if you are brokering a deal between parties.

Best Legal Analogy of the Week: Lin v. Rivera

2012-02-18T13:13:00.000-08:00

Hollywood Legal: "Carrie" sued by "Stanford"

2012-02-16T18:57:00.000-08:00

Sex and the City writer and creator Candace Bushnell is being sued again by her former friend and manager Clifford Streit, the inspiration for Bushnell's character, Stanford Blatch. Streit first filed suit in federal court against Bushnell in 2005, claiming that Bushnell owed him 10% of her earnings from the show. The parties settled in 2006 whereby Bushnell agreed to give him 7.5% of her earnings. Now Streit has filed again, claiming that Bushnell last paid him in 2009 and owes him 7.5% of her earnings from Sex and the City 2, as well as residual earnings from the first Sex and the City movie and the show.

NOW is the time to take advantage of current Estate Tax laws

2012-02-15T20:48:00.000-08:00

If you have been waiting to see how the current estate tax law, which is scheduled to expire on December 31, 2012 will be extended, President Obama's 2013 budget is a strong warning - MAKE YOUR ESTATE PLANS NOW! (you can download the Budget here) Estate taxes are currently at a 35 percent rate of all assets over the 5 million dollar exemption. You also have the opportunity to transfer, during your lifetime, gifts in the total amount of 5 million dollars. At the close of this year, estate taxes are scheduled to revert to pre-Bush era tax rates of a 1 million dollar exemption and a whopping 55 percent tax rate. The proposed budget has a 3.5 million dollar exemption, but a rate increase to 45 percent on the excess estate. Most notably, the lifetime gift amount will be LOWERED to 1 million.

At this point, the way the tax rate will go is much like the scarecrow in the Wizard of Oz. However, it is a good idea to have a flexible estate plan in place, especially if the exemption amount is to be lowered as of January 1, 2013. If you have been considering using your lifetime gifting amount, NOW is the time to act, as the ability to gift 4 million may disappear as the ball drops on New Years Eve. Have questions as to how this new proposal will impact you? Give us a call.

Planning Your Estate When You Have a Beneficiary with a Drug or Alcohol Addiction

2012-02-14T12:07:00.002-08:00

In light of recent allegations regarding Whitney Houston’s condition at the time of her death, as well as her history of drug and alcohol abuse, it is fitting to discuss what you can do in planning your estate when you have a potential beneficiary with drug, alcohol or other addictive behaviors that might lead to depletion of their inheritance, as, obviously, a person with an addiction inheriting a large sum of money could have serious consequences.

You do not need to disinherit a beneficiary with an addiction, rather, there are several ways to protect the beneficiary’s inheritance by establishing a trust wherein the addicted family member is a beneficiary. Even if you are not ready to complete your entire estate plan, you should consider a establishing revocable trust (a trust that may be amended or revoked by the individual establishing the trust) in the event of your untimely death, so that your estate assets are protected from the addicted beneficiary.

You may dictate conditions for distribution in your revocable trust, known also as an “incentive trust,” by which the beneficiary must abide in order to receive a distribution. For example, you can require that a beneficiary must remain sober for a specific period of time, be employed for a certain period of time, pass periodic or random drug testing or complete a drug or alcohol rehabilitation program. You can also empower the trustee to stop any future distributions of trust assets until the beneficiary passes a drug test consistently for a certain period of time or attends and completes rehab. Some Grantors also permit that the trustee may also use trust assets for drug and alcohol treatment or counseling services for the beneficiary. Provided that these “incentives” do not violate public policy, which those governing drug and alcohol rehabilitation rarely do, courts generally enforce such provisions if a beneficiary were to contest them.

Upon making the decision to establish the trust, you need to carefully choose a trustee. You might appoint another family member to serve as a trustee because a family member may have more understanding and compassion for the beneficiary than a third-party trustee; however, depending upon your unique family dynamic, it can create additional tension between the trustee and the beneficiary with the addiction, causing further family discord. In this event, an independent professional fiduciary, such as a bank, trust company or other professional such as a CPA or attorney, might be a better option for your situation.

If you do not have a beneficiary with an addiction, but have a family history of alcohol or drug abuse or you are simply being prudent in your estate planning, you can always build protections such as these discussed herein into your trust document.

There are many ways to ensure that your assets and the beneficiary’s best interest are protected, but all solutions must be tailored to your unique situation. A well-drafted estate plan with restrictions on distributions and/or “incentives” in place can prevent dissipation of your assets and ensure that available assets will be used to possibly save the life of the child with alcohol or drug addiction, rather than to enable their problem.

Hollywood Legal: Lessons to Learn from Whitney's Legal Troubles

2012-02-13T14:41:00.000-08:00

Many questions surround the death of Whitney Houston, including questions about her assets at the time of her death. Some say that Whitney was poised for a comeback with her latest movie, Sparkle, but others, according to radaronline.com, say that the six-time Grammy Winner blew through her entire fortune and had, as of late, asked friends to borrow money. According to radaronline.com, "Whitney's fortune is gone," the source said. "Music industry heavy hitters are supporting her and her label is fronting her cash against her next album, but no one knows when that will be released."

Although gossip sites have varying reports, one reliable source, the Federal Court, reported a decision in favor of Whitney against her stepmother, Barbara Houston, in a matter, ironically, involving the estate of her father, John Houston.

In 1990, Whitney loaned John Houston the funds to purchase a home. The mortgage note, held by Whitney, was for the principal amount of $723,800.00 and it included installment payments on the mortgage and the contract provided for default payments and penalties.

By the time of his death in February 2003, John Houston was in default on these payments to Whitney. Whitney, in the form of Nippy, Inc., also purchased an insurance policy, in the amount of $1,000,000.00, on her father’s life. Various documents relating to the insurance policy were drafted, but none of them were ever signed during the many years between the purchase of the policy and John Houston’s death. Upon his death, John Houston bequeathed all of his assets to Barbara and Whitney received the insurance proceeds. Whitney thereafter began the foreclosure process upon the house that she bought for her father in which Barbara was still living.

Barbara sued Whitney in 2008, claiming that the insurance proceeds were meant to benefit her. Barbara claimed that the agreement between Whitney and her father was that the insurance proceeds would pay off the mortgage on the home and that Barbara would remain in the home. Perhaps this was laid out in the documentation that WAS NOT SIGNED after the purchase of the policy and before John Houston’s death, perhaps it was not.

The court ruled in favor of Whitney in December 2011, awarding her both the policy proceeds and the house, in the total amount of approximately 1.6 million.

WHAT CAN YOU LEARN FROM THIS?

1. Make sure your estate plan is in writing, signed and that it is cohesive – you want all documentation to work together to reflect one plan.

2. When doing business with family and friends, PUT EVERYTHING IN WRITING!! AND HAVE ALL PARTIES SIGN IT!! So many times, I hear of clients “feeling awkward” about putting loan agreements and other business transactions between friends and family into writing, but you need to do it. This Whitney Houston matter underlines the importance of doing so. Make your attorney, your accountant, your spouse, your financial planner, etc., to be the bad cop if you need to do so, but get the transaction in writing and get it signed!

3. Understand that accounts that name beneficiaries are immediately collectable upon your death by the named beneficiary. There is nothing under the law requiring your beneficiary notify other potential heirs of your estate or to use the proceeds as per an oral agreement or for any other purpose than their own enjoyment.

4. Crack is whack. So are entourages that enable your addictions.

New Business Opportunity? Did you 'Google' It?

2012-02-10T12:00:00.000-08:00

What is the best piece of advice that I can give to a potential business owner, that is, shockingly, so rarely considered before they come into my office? RESEARCH.

Buying a franchise? RESEARCH.

Taking on a new partner? RESEARCH.

Entering into a new industry? RESEARCH.

Taking a course to learn about a new industry or to receive industry leads? RESEARCH.

It is incredible how much information can be disclosed just by conducting a simple Google search and how many times I have asked a client, "have you 'Googled' it?" and the answer is "no." This is not to say that these clients are not educated and successful - it is just in a world of great opportunities, sometimes clients who have made their successes on "gut feeling" can make a bad decision that can result in losses of tens or hundreds of thousands of dollars.

The Wall Street Journal today also discusses the importance of researching franchises before you invest. Even a simple online search for background, reviews and Better Business Bureau reports can save you from significant losses and headaches.

The next easiest tip for potential franchisees? Give a random franchise owner (not the ones in the sales videos or promotional materials from the company) a call. They will be more than happy to share the good and bad points of that particular franchise ownership, especially considering that franchise litigation seems to be increasing, based upon the discretionary authority of the franchises, franchise marketing, franchise "kickbacks" from suppliers and other aspects of the often lengthy, comprehensive agreements executed by franchisees.

Fighting Over a Work-related Twitter Account

2012-02-09T10:38:00.000-08:00

Having handled many corporate divergence (corporate divorce) matters, I always find it interesting to hear what formerly adoring partners might fight over once the relationship (and, usually, the business) goes bad and how the growing impact of social media and digital rights certainly will play a part in future litigations. This update from the ABA addresses a litigation over the proprietary nature of a Twitter account between an employer and former employee, but a decision on the matter might have far reaching effects for business break-ups and digital rights in general. This is also a good warning to all business owners to review their intellectual property policies for employee work and accounts used on behalf of the business.

In the News: Update on Millionaire Adopting Girlfriend

2012-02-08T22:49:00.000-08:00

#iknewnoexwifewouldstandforthisever

As we discussed last week, polo millionaire John Goodman adopted his 42-year old girlfriend in what could only be seen as a legal maneuver to protect his assets from a pending personal injury lawsuit. Last week after our post, the guardian for the minor children of Goodman filed a motion in a Florida court to have the adoption set aside, citing among other items, fraud by Goodman and that the adoption is violative of public policy.

The children have an obvious interest in the adoption matter, as the attorneys for the Plaintiffs in the personal injury case also argued that the adoption made the girlfriend/daughter’s portion of the previously off-limits trust fair game for jurors to consider as part of Goodman's net worth if the Plaintiffs are awarded damages for their son's death. Circuit Judge Glenn Kelley agreed with the Plaintiffs and reversed his previous ruling to keep the trust out of the case.

No hearing date has been set for the motion to set aside the adoption, however, Goodman’s attorneys have requested a delay in the personal injury matter until the adoption issue is resolved. This update is further evidence that, the adoption might have been a legal maneuver, but "creepy" can certainly influence a judge's ruling in a court of equity.

In the News: Details of the Rosa Parks Estate Litigation Settlement Divulged

2012-02-06T17:25:00.000-08:00

Thesettlement agreement governing the nearly five-year estate litigation regardingthe Rosa Parks’ estate, although intended to be confidential, was accidentallyreleased into public court record in January, as reported by the Detroit FreePress.

Some ofthe highlights of the settlement: Parks'nieces and nephews, the parties originally challenging Parks' will, acknowledgeits validity. Parks' assistant andcaregiver, Elaine Steele (the party originally accused by the nieces andnephews of unduly influencing Parks), and retired 36th District Judge AdamShakoor will be reinstated as co-personal representatives of the estate. Steele and the institute she founded withParks, Rosa and Raymond Parks Institute for Self-Development, will receive 80%of the proceeds from the sale of Parks' belongings, said to be worth approximately$8 million, and royalties from licensing Parks' name; Parks’ nieces and nephewsshall receive twenty percent of the proceeds. A three-member committee, appointed by Steele and the institute, Parks'relatives and Wayne County Probate Court will decide how to sell Parks'belongings. Steele, the institute andrelatives agree not to make disparaging comments about on another. Any party that divulges the contents of thesettlement are to forfeit their share. WHOOPS.

BACKGROUND ON THE ROSA PARKS ESTATE LITIGATION

July 1998: Rosa Parks creates a will and trust giving her assistant,Elaine Steele, and retired 36th District Judge Adam Shakoor control of heraffairs.

February 2002: One of Parks' nieces petitions Wayne County Probate Courtto become Parks' guardian and conservator, claiming Parks was being neglectedand exploited. Judge Freddie Burton Jr. rejects the request.

October 2005: Parks dies, leaving nearly all of her assets to the Rosaand Raymond Parks Institute for Self Development.

November 2005: Parks' nephew challenges the validity of her will andtrust, claiming Steele manipulated Parks, who had dementia, into cutting thenieces and nephews out of their aunt's estate.

Are you concerned about avoiding a potential litigation? Give us a call. We can help.

Tax Lessons to be Learned from Zuckerberg

2012-02-06T13:44:00.000-08:00

Interesting article from Forbes including tips to deal with taxes on stock holdings... Top Tax Tips from Zuckerberg

Growing Your Agency, but Keeping the "Family"

2012-02-06T12:35:00.000-08:00

Most of our agency clients pride themselves on the "family feel" of their agency and, happily, in providing general counsel services for several years, we have been accepted as a "family member" in many of these firms. A challenge facing our clients is keeping the family atmosphere while growing both the intake of business and the size of the "family." A recent article from Ad Age has some great tips on keeping the family atmosphere as you grow.

Are you ready to make that next step by entering into a new area of business or perhaps engaging in a joint venture with another company? Make sure you are covered on the legal side. Give us a call.

Hollywood Legal: Lil Kim Hits Seven Figures

2012-02-05T14:56:00.000-08:00

No, not seven figures in earnings. She probably hit that a while back. Lil Kim has officially hit the seven figures in taxes owed to the IRS. One million dollars. Accumulated over the course of seven years. Wow. She needs to fire her "people." Although, to her credit, the story from TMZ claims that she has retained new "people" to solve her millie tax woes.

Seven Super Bowl legal questions that you have always wondered...

2012-02-05T10:21:00.000-08:00

The Hollywood Reporter has a great post on obscure Super Bowl legal issues that the Average Joe might encounter... Read More

Hollywood Legal: Don Cornelius' Ex-Wife is Life Insurance Beneficiary

2012-02-01T17:00:00.000-08:00

Two lessons today:

(1) Upon your divorce, check your beneficiaries on all payable upon death accounts, including, but not limited to insurance policies, joint accounts and retirement accounts; and

(2) Upon your divorce, sometimes the court prevents you from changing beneficiaries, as in the case of Don Cornelius....

TMZ reports that, Don Cornelius, by way of a divorce settlement agreement, made his wife beneficiary of several hundred thousand dollars in life insurance. I know from client experience, that maintaining a life insurance policy post-divorce is always a bitter pill for the party maintaining the policy, but it can be a great way to resolve a property distribution issue and move on - especially during difficult divorces.

In the News: Florida Millionaire Adopts Adult Girlfriend as Part of Asset Protection Planning

2012-02-01T14:14:00.000-08:00

File this under "creepy but creative"...

Florida businessman John Goodman, 49, likely in an effort to protect his assets, has adopted his adult girlfriend who is 42. Ew.

Why might this asset protection plan work? Goodman is facing a wrongful death lawsuit for the death of a 23-year old man in a 2010 car accident wherein Goodman had a blood alcohol level more than twice the legal limit. A judge has ruled that assets belonging to a trust for Goodman's minor children cannot be touched as part of the lawsuit. Thus, Goodman's attorney crafted a plan whereby Goodman adopted his girlfriend thereby enabling Goodman, ahem, I mean the daughter/girlfriend, to access the trust funds along with Goodman's biological children.

Goodman is also facing criminal charges and could face up to 30 years in prison. It will be interesting to see whether this adoption issue is permitted to be raised at trial - it is certainly indicative of his character and credibility.

In the News: Millionaire leaves 1.5 million to driver and doorman

2012-01-30T15:14:00.000-08:00

You better be nicer to your boss...

NYC Millionaire Alan Meltzer left a total of 1.5 million dollars of his estate to his driver and doorman. When asked about the bequests, his ex-wife had this to say to the NY Post:

“He can leave it to whoever he wants to, I’m doing fine. I could care less. If he wants to give it to the bums, he can give it to the bums. He could f--k a nun. I couldn’t give a s--t. He can give his money to whoever he wants. We’re divorced. The man is dead.”

I guess it is safe to say there will NOT be any estate litigation in this matter...

New Application of New Jersey Statute Governing Property Post-Divorce

2012-01-25T09:44:00.000-08:00

N.J.S.A. 3B:3-14 provides that, with the exception of a governing instrument (i.e., court order or contract relating to distribution of marital property), "a divorce or annulment revokes any revocable dispositions or appointment of property made by a divorced individual to his former spouse in a governing instrument and any disposition or appointment created by law or in a governing instrument to a relative of the divorce individual's former spouse."

What does this mean? This means that, upon receipt of your final judgment of divorce, in the event that you named a now former spouse or a relative of that former spouse (i.e., your former step-child or in-laws) as a beneficiary of a will, trust, etc., and you die without changing this designation, the statute voids this bequest as a matter of law in most cases.

On Monday, the New Jersey Superior Court departed from this standard by ruling in the matter entitled, In re Estate of Mittal Barua; Docket No. ESX-CP-0017-2011, that the former wife and her son from another relationship could share in the insurance proceeds on the life of the decedent.

Olive Barua was married to Mittal Barua for thirteen years. Mittal traveled to Bangladesh in 2006, never to return. After two years, Olive filed for divorce against Mittal and it was granted by the court after receiving testimony regarding Mittal's disappearance and Olive's efforts to locate him. Olive was granted ownership of all assets owned by Mittal in the judgment. Three years after the entry of the Judgment of Divorce, Olive filed an action for Declaration of Death in the Chancery Division, which was granted on March 31, 2011. Subsequently, Olive filed an Amended Complaint for receipt of insurance proceeds on the life of Mittal. The Office of the Attorney General, citing N.J.S.A. 3B:3-14, opposed receipt of the funds by Olive and/or her son, as Olive received a judgment of divorce against Mittal in 2008.

The Court ruled on January 23, 2012 that, due to the unique circumstances of the case, N.J.S.A. 3B:3-14 would not apply and Olive was permitted to receive the insurance proceeds on which she was a named beneficiary.

Why do I think this matter was ruled on in this manner? Perhaps the Court not only found "unique circumstances" that prevented the application of the statute, but the judge might have also seen the equitable side of the matter that went unmentioned in the opinion - if Olive had received legal advice to file for the declaration of death in 2006, rather than filing for divorce, Olive would have received the insurance proceeds as a named beneficiary without question.

What should you do after your divorce to protect your assets? Among several "to do" items, be sure to change the beneficiary designations of every will, trust, IRA and payable on death account.

What should you do to protect your assets upon separation? This is a tricky legal situation, especially in the state of New Jersey, as your spouse will likely still be entitled to what is known as an "elective share," which is roughly one-third of your estate. However, you should immediately speak with an attorney about your estate plan and your options, so that you can avoid bequesting more to your soon-to-be former spouse than they are entitled to under the law.

Proper legal advice is the key to expedient and cost-efficient resolution of your legal matter. More questions? Give us a call.

Hollywood Legal: Update on Twitter Contract Dispute

2012-01-12T12:22:00.000-08:00

As discussed back in October, a guy in Germany, who claims that he deserves the $1,000,000.00 reward offered by Ryan Leslie on Twitter because he returned Leslie's laptop, filed suit in the Southern District of New York. As crazy as this OFFER plus ACCEPTANCE equals CONTRACT via a Tweet lawsuit seems, a judge this week denied Leslie's motion to dismiss the case based upon forum non conveniens (legalese for "filed suit in the wrong court"), which means that the suit can continue...

Hollywood Legal: Lawsuit to Re-open Murphy Death Investigation

2012-01-11T23:00:00.000-08:00

The Hollywood Reporter is reporting that the man claiming to be the biological father of the late actress Brittany Murphy, Angelo Bertolotti, filed suit pro se against the LA Coroner's Office and LAPD claiming that there were certain oversights in its investigation of her cause of death. According to her autopsy, Murphy's causes of death were pneumonia, anemia and excessive use of prescription medications. Murphy's father claims that he has paid to have her hair and tissue preserved for further testing so that they might be tested for toxic mold that may have caused her death.

Murphy's mother, who is not together with Bertolotti, has also filed suit against the law firm that represented she and Murphy in a matter involving the Murphy's Hollywood Hills home and the toxic mold allegedly growing on the property. Murphy's mother and father have not aligned their interests on the matter, although they both seem to be championing Murphy's cause of death to be toxic mold. According to the Hollywood Reporter, Bertolotti has announced plans to write a book about Murphy's life.

I smell estate litigation coming...

Hollywood Legal: Dubai Apprentice Debacle

2012-01-08T16:07:00.000-08:00

Reality show contestants infamously cannot get along....that is why the world loves reality tv... duh. Recently, contestants on the Dubai version of The Apprentice allegedly entered into an agreement to split the $1,000,000.00 prize money and create a business partnership together. One of the parties, Hannah Dodkin, filed suit in Federal Court today, alleging that once her "partner" was crowned winner of the prize, he refused to share the money with her. Dodkin is suing for breach of contract, breach of fiduciary duty, as well as negligent infliction of emotional distress, unjust enrichment and promissory estoppel.

Did they not learn anything from Zora and Average Joe? Things just don't work out for reality contestants.

Read More: Dubai Apprentice Debacle

Read the Complaint here: Dodkin v. Best

New Years Planning: Part Three - Follow-through Actions: Changing Title of Assets and Annual Review

2012-01-08T14:05:00.000-08:00

As discussed on Friday, you have completed your Private Wealth Worksheet. On Saturday, you learned about consulting with an attorney to create an estate plan. Now, you need to follow-through... this is, perhaps, the client's most important step. In reflecting the same plan across your estate documents, the documents must also match the titles of assets. An attorney can create an estate plan and draft the documents, but if the client fails to correctly title the assets according to the estate plan, the plan might fail to achieve the goals originally intended.

Additionally, your estate plan should be reviewed every year. This does not mean that you MUST hire an attorney every year for this review, but it is a good idea to review your documents to make sure that your plan fits your current lifestyle, relationships, etc.

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The New Year is a great time to get organized and, in some cases, start fresh. Take advantage of this time to make some of the most important decisions that you can make for your family, so that you can carry on the rest of the year assured that you and your family will be prepared in the event of a death or illness or other surprise.

New Years Estate Planning: Part Two - Creating the Estate Plan

2012-01-07T14:00:00.000-08:00

As discussed yesterday, after you have completed your Worksheet, you are ready to begin creating an estate plan. This plan can be as simple or complex as your needs require and a good estate planning attorney and financial professional will have the ability to review your needs with you and advise you as to your estate planning options.

Looking for a simple plan? At a minimum you need to have an current will, power of attorney and a healthcare directive (living will). The key is to make sure all your documents are current and reflect the same plan. Keep in mind something as "simple" as a healthcare directive might need an update due to changes in HIPAA laws.

Tomorrow? Finishing the job with re-titling assets and annual review.

New Year Estate Planning: Part One - Getting Organized

2012-01-06T20:53:00.000-08:00

HAPPY NEW YEAR!!!!

A great way to start out the New Year is to get your estateand family documents in order, making sure that all documentation is current, SIGNED and reflects one cohesive plan.

Do younot have an estate plan? Life isfull of surprises (good - like having a baby; or bad - like sudden illness or death) and, like it or not, it is in not only your best interest,but that of your family, to be prepared. Implementing an estate plan isone of the best ways to prepare for these surprises. According to the Huffington Post, roughly 58 to 64 percent of Americans do not have any type of estate plan in place, so you are certainly not alone.

Have youhad a birth, death or marriage in the family since you last reviewed yourestate plan? If so, you may need to modify the estate plan that you have in place

Implementing and/or organizing yourestate plan begins with creating and updating your Private Wealth Worksheet (and, no, you do not need millions of dollars to have an estate plan!), then creating anEstate Plan, re-titling your assets and providing for an annual review.

PrivateWealth Worksheet

The Worksheet is the first step increating an estate plan and it is something that you create with a littleframework from us. It may take a little time and organization, but the Worksheet lists, among other items, account information, real estate holdings,personal property and the locations of all important documents that your family/estate administrators might not otherwise find in an emergency.

The Worksheet is an invaluable tool for you and your attorney to review your estate, creating an estate plan and even assisting your familyto locate assets in the event of your incapacity or death. The purpose is notonly to list assets and document the location of important paperwork, but, oncecompleted, it will give your financial and legal professionals a comprehensive view of your assets and planning needs.

Think a Private Wealth Worksheet will help you get organized this year? Do youwant to check out our Private Wealth Worksheet? Contactour office and we will be happy to send you a copy of our Private Wealth Worksheet to begin your planning process.

Tomorrow? Creating the Estate Plan. Stay Tuned.

Hollywood Legal: Watch What you Tweet

2011-10-26T12:10:00.000-07:00

According to the Daily News, a lawsuit was filed yesterday against Ryan Leslie, seeking recovery of a $1,000,000.00 reward offered by Leslie on Twitter for his missing laptop while on a trip to Germany.

Why might the Plaintiff prevail? A simple contract equation that everyone learns in law school: OFFER plus ACCEPTANCE equals CONTRACT. Leslie made an OFFER with the reward via Twitter. Plaintiff then ACCEPTED by finding and returning the laptop to Leslie. A simple view of the matter would see a CONTRACT. The legal hurdle for the Plaintiff to prove in court is that, in order for the acceptance to be valid, the person who accepts the reward must know of the offer of the reward. Thus, in order to prevail on his claim for the $1,000,000.00, Plaintiff will have to prove that he actually knew about the Twitter reward when he returned the laptop, which is an interesting topic in this era of instant electronic info.

Your lesson? Anything can be published and out in the universe in a click of a button. Publishing something via your social media account could be as effective as signing your name to a contract. If you are going to make an offer, make sure you mean it, because some German guy could take you seriously.

Ameriprise Event

2011-10-21T16:25:00.000-07:00

Last night we attended the Client Appreciation Event held by Llnon Slossberg-North at Ameriprise's Slossberg North Associates in Montclair. It was a great event and our firm sponsored a gift basket which was won by... another Aericka! Actually, she was "Erika," but we were happy with the coincidence nonetheless. Keep an eye out for a feature with Llnon and her financial planning tips in the New Year!

Hollywood Legal: The Beat Goes on for George Clinton

2011-09-26T12:52:00.000-07:00

George Clinton announced today that he is still pursuing the copyrights for his music - this battle has been going on for over a decade... Read More

Your lesson? Be cautious in leveraging your assets and rights to assets in a business transaction, especially those that you can use as an "annuity" upon your retirement.

Hollywood Legal: Taylor Armstrong Not Likely Named Beneficiary

2011-09-04T19:32:00.000-07:00

Russell Armstrong allegedly may not have had any assets at the time of his death, but RadarOnline.com reports that Russell had a life insurance policy at the time of his suicide and the beneficiary wasn't his estranged wife, Taylor, his son from his first marriage. See RadarOnline. Radar reports that Russell's son, Aiden Armstrong, is believed to be the sole beneficiary of the policy.

Life insurance policies can be a great complements to an estate plan, as it is technically a contract with a third party, so the creditors of the decedent (and family members the decedent wants to leave out) will likely have a difficult, if not impossible, time to gain access to the funds due to the beneficiaries.

IRS Says Estates Must Decide 2010 Tax by 11/15/11

2011-09-01T09:04:00.000-07:00

The Internal Revenue Service is giving executors of estates of people who died in 2010 until November 15, 2011 to opt out of the estate tax. As you may know, the federal estate tax was not in effect for most of 2010. When Congress extended the tax retroactively in December 2010, it gave the estates of people who died in 2010 a choice: skip the estate tax or pay the tax with a $5 million per-person exemption and a 35 percent top rate, the same as in 2011.

Some estates may fare better by paying the estate tax because the assets, such as stocks, will pass to heirs with stepped-up basis, which means the beneficiary inherits the asset at the value carried by the asset at the decedent's time of death. Those whose executors opt not to pay the estate tax pass on assets under a carry -over basis, which is effectively the initial price paid for the asset by the decedent. The importance in making the decision between the two options is that, if the heirs sell assets, they would owe capital gains taxes on the difference between the sale price and the inherited basis, which is currently 15 percent on most assets.

In the News: NJ mortgage foreclosure rate the third highest in the nation

2011-08-24T09:01:00.000-07:00

As reported by the NJ Law Journal today, a new report by the Mortgage Bankers Association says New Jersey is third in the nation in the number of home loans either in foreclosure or on the brink. The Law Journal reports that more than one in 10 New Jersey mortgage loans are already in foreclosure or are 90 days or more in arrears, according to the Association's National Delinquency Survey for the second quarter of 2011, which looked at almost 43.9 million mortgage loans across the country, including 1,252,958 in New Jersey. The state's 11.36 percent rate of "seriously delinquent" mortgages was third highest in the U.S. Florida topped the list with 18.68 percent, followed by Nevada, with 14.34 percent. Read more: NJ Foreclosure Rate 3rd Highest in US

In the News: Further developments in the Windsor DOMA Estate Tax case

2011-08-20T21:07:00.000-07:00

In a matter that we have been following since late 2010, Edith Windsor, who is seeking a refund of the $350,000.00 estate tax bill that was paid to the federal government by the estate of her same-sex spouse, Thea Spyer, because their marriage was not recognized by the federal government, received some good news last week.

On August 19th, the Department of Justice admitted in its brief filed in the Southern District of New York that Windsor's claim on behalf of the state should be granted because DOMA's federal definition of marriage is unconstitutional.

In the brief, the DOJ admits that, "Section 3 of DOMA fails heightened scrutiny, and this Court should deny the motions to dismiss Plaintiff's constitutional claim and grant Plaintiff's motion for summary judgment." This admission is the first time that the government stated affirmatively to the court that a lawsuit seeking to strike parts of DOMA as unconstitutional should be successful.

While this is not a clear path to success for Windsor, this admission is a clear stride in the right direction.

In the News: SHOCKER!!! Baby-Boomers to Spend Millions to Counter Aging

2011-08-19T23:00:00.000-07:00

According to the New Jersey Law Journal, "baby boomers heading into what used to be called retirement age are providing a 70 million-member strong market for legions of companies, entrepreneurs and cosmetic surgeons eager to capitalize on their 'forever young' mindset, whether it's through wrinkle creams, face-lifts or workout regimens. It adds up to potential bonanza. The market research firm Global Industry Analysts projects that a boomer-fueled consumer base, 'seeking to keep the dreaded signs of aging at bay,' will push the U.S. market for anti-aging products from about $80 billion now to more than $114 billion by 2015. The boomers, who grew up in a culture glamorizing youth, face an array of choices as to whether and how to be a part of that market."

Does this translate into a reluctance of baby boomers to create business succession plans and estate plans? It is great to look and feel young forever, but being prepared with an estate plan protects both your family and your assets.

In the News: Buffett's Call to Tax the Rich

2011-08-15T19:47:00.000-07:00

The Oracle from Omaha, Warren Buffett, has long been a proponent of estate taxes. Now he is calling for higher taxes on the "super-rich," those making more than one million dollars each year. It will be interesting to see how his op-ed might shape future financial policy. Read More: Buffett's Latest

Hollywood Legal: Louboutin Loses

2011-08-10T17:00:00.000-07:00

Could the signature red soles on Christian Louboutin high heels be as ubiquitous as any other color? The exclusivity of the red lacquered red soles to Louboutin shoes, that some see as a sign of status and style, has been threatened, as a judge declined on Wednesday to grant a preliminary injunction requested by Christian Louboutin against Yves Saint Laurent. YSL was accused of trademark infringement for shoes that featured red soles. The decision not only allowed YSL to continue producing its shoes, but it also could, arguably, pave the way for other shoe manufacturers to use the soles.

Judge Victor Marrero of Federal District Court in Manhattan ruled that the trademark Louboutin obtained in 2008 for its “lacquered red soles” was “overly broad” and most likely not subject to protection under the law. The Court did recognize the red sole as the brand's signature, stating, “[w]hen Hollywood starlets cross red carpets and high-fashion models strut down runways, and heads turn and eyes drop to the celebrities’ feet, lacquered red outsoles on high-heeled black shoes flaunt a glamorous statement that pops out all at once...For those in the know, cognitive bulbs instantly flash to associate: ‘Louboutin.’ ” But, alas, the preliminary ruling came against Louboutin, stating, “[b]ecause in the fashion industry color serves ornamental and aesthetic functions vital to robust competition, the court finds that Louboutin is unlikely to be able to prove that its red outsole brand is entitled to trademark protection, even if it has gained enough protection in the market to have secondary meaning.” Is the red sole a trademark with secondary meaning to indicate a Louboutin product and only Louboutin? As this is a preliminary injunction and a trial is sure to follow, it will be interesting to see how the court rules on the red.

Read More: NY Times: Red Faces at Louboutin

In the News: Bacardi "Havana Club" prevails against false advertising claim

2011-08-05T08:10:00.000-07:00

As reported by the New Jersey Law Journal: "The Third U.S. Circuit Court of Appeals on Thursday unanimously affirmed a ruling dismissing international spirits producer Pernod Ricard's claim that its rival Bacardi duped consumers by slapping the 'Havana Club' label on rum manufactured in Puerto Rico. The panel affirmed a district court finding that the Havana Club label, taken as a whole, could not mislead any reasonable consumer about where Bacardi's rum is made. Each bottle of the Bacardi run in question includes a label explaining that 'Havana Club' rum is distilled and crafted in Puerto Rico. The battle over the false-advertising claim is the latest skirmish in a 14-year trademark dispute. The Cuban government owned the 'Havana Club' trademark in the US from 1976 until 1999, when Congress passed a law barring enforcement of many trademarks used in connection with businesses confiscated by the Castro regime."

Law Update (Estates): Changes to Creditors' Ability to Pursue Estates for Debts

2011-07-28T08:51:00.000-07:00

Pursuant to the FTC's authority to enforce the Fair Debt Collection Practices Act (``FDCPA''), debt collectors may now have more freedom in collection practices for estates. The FTC will no longer enforce Section 805(b) of the Act against a debt collector for communicating about a decedent's debts with persons specifically identified as appropriate to contact under the Act (i.e., spouse, parent, guardian, executor, or administrator) or any other person who has the authority to pay the decedent's debts from the assets of the decedent's estate.

In the News: Ex-NFL Players Sue Over Concussions

2011-07-20T10:08:00.000-07:00

Seventy-five former football players, including former Pro Bowlers Rodney Hampton of the New York Giants and Mark Duper of the Miami Dolphins and Super Bowl MVP Otis Anderson, are reportedly suing the NFL,claiming that the league intentionally withheld knowledge of the serious effects of concussions for nearly 90 years. According to TMZ.com, the lawsuit claims, "[t]he NFL knew as early as the 1920's of the harmful effects on a player's brain of concussions; however, until June of 2010 they concealed these facts from coaches, trainers, players and the public."

The suit reportedly alleges that the NFL waited until 2010 to admit that multiple concussions can affect memory and cause dementia and chronic traumatic encephalopathy, a degenerative brain condition that has been linked to the deaths of several former NFL players; alleging that the NFL even issued a report in 2004 stating that there was "no evidence of worsening injury or chronic cumulative effects" from multiple concussions.

Same-sex Marriage is Legal in NY, but Challenges Remain for Couples

2011-06-25T18:48:00.000-07:00

Gay New Yorkers may now have the right to marry in the state, but the lack of federal acknowledgment of the right to marry for same-sex couples will still continue to present several financial challenges.

1. COUPLES MUST FILE SEPARATE FEDERAL RETURNS. Even though New York married couples may file as such, married same-sex couples will continue to be treated as single filers by the IRS. This confusing tax status that varies greatly from the state to federal levels will not only take extra time to put together at tax time, but it will likely cost extra money as well if you are employing an accountant.

2. EMPLOYER BENEFITS ARE TAXED ON THE FEDERAL LEVEL. Companies providing benefits to the spouses of married same-sex couples will continue to be taxed for the value of the benefit received, unlike the spouses of straight couples.

3. SPOUSAL INHERITANCE FROM FIRST TO DIE SPOUSE IS SUBJECT TO ESTATE TAXES. Topping the largest financial burden on the federal level facing same-sex couples is the estate tax. While a straight spouse may inherit the estate of a first-to-die spouse tax-free, same-sex couples will not have the same luxury. Any estates over 5 million dollars are subject to the federal estate tax when passing from spouse to spouse upon death. We have been following a high-profile contest of this issue here.

What can you do as a same-sex couple? While the first two items will only be resolved upon federal acknowledgment of same-sex marriage, the impact of estate taxes can be minimized with proper planning and the aid of legal and accounting professionals. Have more questions? Give us a call.

Law Update: Standard Mileage Rates Increase

2011-06-24T08:35:00.000-07:00

The IRS announced that the optional mileage allowance for owned or leased automobiles is increased 4.5 percent from 51 cents to 55.5 cents per mile for business travel from July 1, 2011 to December 31, 2011, to better reflect the real cost of operating an automobile in light of rising gas prices. Employers may reimburse employees tax-free under an accountable plan to those employees who supply their own automobiles for business use and employers may also utilize the rates to value personal use of certain low-cost employer-provided vehicles. The rate for using a car to get medical care or in connection with a move that qualifies for the moving expense also increases 4.5 percent for the last half of 2011 from 19 cents to 23.5 cents per mile.

Giving Back: Glamour Gals Glamour in the City Event

2011-06-03T15:57:00.000-07:00

Last night we attended the Glamour Gals Foundation's Seventh Annual Glamour in the City Event at The Griffin. It was a great time for a great cause and the event raised over $25,000.00! I am an advisory board member of Glamour Gals Foundation - if you are interested in learning more about Glamour Gals, please let me know.

Law Update: IRS Scrutinizes Real Estate Transfers

2011-05-24T08:02:00.000-07:00

DON'T FORGET TO FILE YOUR GIFT TAX RETURNS!!

Non-spouse real estate transfers are under scrutiny, as omissions by the parties has allowed the IRS to gain access to the records from the transaction. A recent court case in California, In re: John Does, reveals that the IRS has discovered that many taxpayers have failed to file the gift tax returns for the transactions. As a result, the IRS launched a compliance initiative to capture data from states and counties regarding real property transfers taking place between non-spouse family members for little or no consideration during the period of January 1, 2005 through December 31, 2010. While the IRS has faced hurdles in attempting to force California to release the data, a number of states have voluntarily done so, including Connecticut, Florida, Hawaii, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, Washington, and Wisconsin. Thus, to avoid increased IRS scrutiny of transactions, individuals involved in transfers of real property to non-spouse family members should make sure that required gift tax returns were filed and, in the event that returns were not filed, the parties need to ensure that amended returns are filed.

Law Updates (Tax and Small Business): Health care reporting to remain voluntary through 2012

2011-04-15T09:56:00.000-07:00

The new health reform legislation will generally require employers to report the cost of health insurance they provide to employees on their W-2 forms. Last fall, the IRS made this new reporting requirement optional for all employers for the 2011 Forms W-2. Most recently, the IRS announced that the reporting requirement will continue to be voluntary for small employers at least through 2012.

Law Updates (Tax): New law creates 100% write-off for heavy SUVs used entirely for business

2011-04-15T09:36:00.000-07:00

Now you finally have an excuse to buy that full-size Range Rover Supercharged.... Under the 2010 Tax Relief Act, a taxpayer that purchasing a new heavy SUV (meaning more than 6,000 lbs) after Sept. 8, 2010 and before Jan. 1, 2012 for 100% business use may write off its entire cost in the placed-in-service year.

Our Office In the News: Adweek

2011-04-08T07:00:00.000-07:00

Adweek's coverage of the lawsuit filed by our firm on behalf of a client against Microsoft and several other parties involved in the Kinect product launch in Times Square on November 3, 2010.

In the News: DOMA and Estate Taxes

2011-02-28T17:58:00.000-08:00

We posted back in November 2010 about Edith Windsor’s suit to reclaim the estate taxes paid by the estate of her same-sex spouse, Thea Spyer. Last week, Windsor's suit to reclaim the estate taxes from the U.S. government was one of two cases cited by Attorney General Eric Holder in an announcement stating that President Obama’s administration would not defend the law as constitutional in court cases challenging the law. Holder also referenced a Connecticut case filed by seven parties challenging the constitutionality of the law. In the latter case, each plaintiff is a survivor or partner of a state-recognized gay spouse and the suit claims that the act deprived them of the same federal benefits afforded heterosexual couples. Only six challenges to DOMA are currently before the Federal courts because, until same-sex marriage was legalized by individual states, prospective parties did not likely have standing to file suit.

In the News: New Jersey is the worst state to die

2011-02-22T14:59:00.000-08:00

As if being identified with Snooki and the Sopranos was not bad enough, now New Jersey has been cited by WSJ Smart Money as the worst place to die, thanks to estate and inheritance taxes. New Jersey, along with Maryland, are the ONLY two states that have both an estate tax AND an inheritance tax. In New Jersey, the inheritance tax exemption is zero, with an inheritance tax rate of sixteen percent, and the estate tax rate has an exemption of $675,000.00 and an estate tax rate of sixteen percent. This means that your combined tax rate on your estate (both state and federal taxes) could be 54.1 percent!

What does this mean for you? This means that anyone with an estate over $675,000.00 should consider estate tax planning. Have questions? Give us a call.

Pre-Business Planning: Buy-Sell Agreements

2011-01-17T17:49:00.000-08:00

You have been best friends since you met in the second grade. You both love pistachio ice cream. You were her maid of honor. Your kids call her "aunt." You both have a great business idea. And you want to do it together. What do you do first? You position yourself for the best by preparing for the worst.

Starting a business with one or more partners is exhilarating and exciting. Often, clients get so caught up in the excitement and the friendships that they forget, or feel too uncomfortable, to plan for a possible end of the business. Businesses end for many reasons: death of a member, “break up” of the partners, lack of money and the list goes on...

That is why buy sell agreements are so important. Think of it as a business pre-nup. It helps make the dissolution (the "break up") process a whole lot easier. It helps your company survive the death of a partner – as well as the subsequent buy-out of his/her estate. Buy sell agreements can prepare your business for many scenarios, all of which always seem to occur at the worst possible time - it is in your best interest to be prepared.

Why you want a buy-sell agreement:

1. They can make the dissolution process smoother by providing a method for valuing and breaking down the business.

2. They can aid the partners in preparing for the death of a partner, such as arranging for life insurance policies on the lives of the members or ensuring that the surviving member will have the right of first refusal for the decedent’s interest in the business.

3. They can protect your assets that you are bringing into the business, including capital, equipment and client.

How to approach the discussion of a buy-sell agreement with your partners:

1. Show them this post.

2. Be open with your partners - ask them to sit down and discuss a plan in the event of either the death of the partner or the dissolution of the business. Then consult with an attorney. Most importantly, many times these simple steps go uncompleted: put the agreement in writing and sign the agreement.

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Businesses are not easy ventures - the problems that arise are not always simple and partners do not always agree. Discussing the end of a business, especially when it is only in the beginning, is almost always an awkward discussion. Bottom line: the more open that you and your partners are to discussing the future of your business, the stronger and healthier your business will be.

More questions about Buy-Sell Agreements or starting your own business? Give us a call. We can help.

Our Office in the News: Appellate Decision

2011-01-04T09:31:00.000-08:00

On November 7, 2007, the Superior Court of New Jersey; Appellate Division issued a decision in favor of Plaintiff, Estate of Raul Machado, which was represented by Aericka Heavens.

In the News: NJ Wineries protest Federal Ruling

2010-12-31T09:17:00.000-08:00

In Freeman v. Corzine (United States Court of Appeals for the Third Circuit; Nos. 08-3268 and 08-3302; December 2010), the plaintiffs, two New Jersey wine enthusiasts and a California winery, brought suit before the United States District Court for the District of New Jersey against the State of New Jersey, alleging that aspects of New Jersey’s Alcoholic Beverage Control Law infringe upon the Commerce Clause, a federal law.

The suit challenges the constitutionality of New Jersey’s alcohol beverage control laws that permit New Jersey farmers and wineries to bypass wholesalers and sell directly to retailers and consumers. These laws require out-of-state wineries to use wholesale distributors to sell their products in New Jersey, but in-state vineyards can sell to customers directly in their tasting rooms and retail stores throughout the state. The plaintiffs argue that the rules provide in-state wineries with an inequitable competitive advantage.

The Court of Appeals ruled in favor of the plaintiffs, upholding the decision of the lower court which found the laws to be unconstitutional. The Court of Appeals also returned the case to the District Court to determine a solution to the issues, which will either provide all vineyards the same rights to sell directly to consumers in New Jersey or require all wineries to go through wholesalers. Obviously, this can be seen as a lose-lose for New Jersey business, as only one party, New Jersey farmers or New Jersey wholesalers, can win.

In the News: Gay Rights Activist Files Suit Over Estate Tax

2010-11-11T14:39:00.000-08:00

Gay rights activist, Edith Windsor, filed suit against the federal government on Monday, challenging the Defense of Marriage Act ("DOMA") seeking to recover $350,000.00 in taxes paid by the estate of her wife, Thea Spyer, upon Spyer's death in 2009. In her suit, Windsor states that she should receive the same exemption provided to married heterosexual couples under the law, which permits them to inherit the assets of the deceased spouse tax-free. "While New York State considered us married, the federal government did not, so the government taxed Thea's estate as though we were strangers rather than spouses," Windsor said.

No challenge to DOMA has been argued before the Supreme Court and it has never said sexual orientation is cause for a heightened standard of statutory review, which would cause the court to examine whether the law is substantially related to an important government objective. This heightened standard is used to assess the constitutionality of laws targeting protected classes, such as race, disabilities and gender, that have historically suffered discrimination.

While it is likely that the statute is unconstitutional because marriage is an issue to be governed by the states, not the federal government, obviously anti-DOMA advocates have a long road ahead.

Hollywood Legal: Anna Nicole Smith Update

2010-10-29T18:04:00.000-07:00

On Thursday, Howard Stern and Dr. Khristine Eroshevich were found guilty on charges of using false names to provide Anna Nicole Smith with drugs. With Stern’s permission, Eroshevich used Stern’s name, as well as other names, to get Vicodin prescriptions to Smith. The prosecution showed that Stern and Eroshevich used false names to hide Smith’s excessive prescriptions from the state’s monitoring system. The prosecution further argued that the doctors wanted to be part of Smith’s entourage, so they never said no to her drug-seeking.

Sentencing for the two defendants will be determined on January 6. They could each face a maximum of three years in prison.

Read More: Anna Nicole Smith’s Boyfriend, One Doctor Convicted in Drug Conspiracy, CNN, Oct. 28, 2010.

Hollywood Legal: Anna Nicole Smith - Still Litigating

2010-03-23T19:47:00.000-07:00

Year 15: Anna Banana still lives on in spirit... A federal appeals court ruled on Friday that the estate of Anna Nicole Smith was not entitled to any of the more than $300 million that she claimed J.Howard Marshall intended to leave her on his death. Let's all take a moment and remind Anna like this: