Happy New Year to You All
January 2015
Here we are already welcoming in another year that we hope is full of promise for each of you.
Like many, we make resolutions and commitments each new year, such as fulfilling our continuing promise to deliver to you the highest quality legal representation in a cost-efficient manner. We want to take this opportunity to reaffirm that commitment to you.
In recent years, we have endeavored to provide breadth to our ability to serve you. 2014 was no exception. The addition of Timothy M. Thornton, Jr.
as a Partner in our Encino office added depth to our niche in the insurance industry. Tim has more than 25 years’ experience in insurance-related matters, including mass torts, toxic torts and exposures, environmental contamination and insurance coverage of intellectual property and entertainment matters. He is an immense asset to our clients.
This year, we will again focus on expanding our cost-effective practice. We are eagerly anticipating a family team who will be joining our Redwood City office in March. Attorney George Camerlengo and his daughter, Katie Camerlengo, will expand our labor and employment practice.
We are again proud to reflect on a few of the accomplishments of our team in 2014. Below, we have highlighted several representative results.
Our attorneys are committed to staying at the forefront of emerging issues affecting our clients. They have authored a number of articles for our clients in 2014, including:
The Best Defense Against Errors & Omission Claims
Written by: Michael Eisenbaum
Published: Risk Management
Professionals who provide services to clients are routinely exposed to potential errors and omissions (E&O) claims in the course of everyday operations. Unhappy customers can quickly become claimants when they feel that their expectations have not been met. When a claim does arise, how well the professional has documented communications will play a major role in determining the outcome.
The ultimate goal with E&O is prevention, but a claim can be made or a lawsuit filed even when good defenses are in place and the professional has done everything that can reasonably be expected, or more. Thus, the real task becomes minimizing risk, which includes both preventing and successfully defending against E&O claims.
Timothy Thornton Participates in American Bar Association Tort Trial and Insurance Practice Section Program
Hear From Our Clients
As a professional (legal, insurance, real estate, etc.), fully documenting your conversations during a transaction will prevent a lawsuit for professional negligence.
The most common reason why an E&O claim occurs is due to the unmet expectations of the customer/client.
For a professional, less documentation is necessary where there is a long, historical and trusted course of dealing with the customer/client.
IRS Issues Short Sale Tax Clarification
The IRS has issued a clarification letter concerning short sales and taxes on the forgiven debt. The new IRS letter indicates that forgiven short sale debt is not subject to cancellation of debt (COD) income only if it is non-recourse at its inception.
In their new April 29, 2014 letter, the IRS states that in order for a debt to be non-recourse at the time of the short sale, the original debt must be used to purchase or build a 1-4 principal residence or a refinance of such debt. As in the prior letter, the IRS affirms that a lender’s forgiveness of such debt in a short sale will not result in COD income, but instead will be treated as capital gains.
Please Note : This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.