Saturday, August 18, 2007

Slip And Fall Accidents - A Brief Overview

Slip and fall accidents are quite common and these types of personal injury claims go to insurance companies regularly. And why not? Most of us walk more often than we drive. And when we're walking we encounter as many, if not more, obstacles than when we're in a car.

If you slip and fall and get injured, you'll go through the same process as if you were in a car accident. You need to prove liability, which means finding negligence and causation. But unlike car accidents, the signs that someone was actually negligent aren't always clear cut.
When driving a car there are laws and rules for how you get around. This means your duty of care is largely defined by very specific vehicle codes. There are very few laws on the books that regulate how anyone has to walk. In fact, the only laws that really exist for walking are to protect you from getting hit by a car.

Therefore, liability for slip and fall cases is hard to determine. It almost always comes down to finding whether or not someone else was acting reasonably. The phrase 'within reason' comes up in the law a lot, making it difficult to deal with personal injury court cases. It's a very subjective thing, and people rarely agree on what qualifies.

Common reasons for a slip and fall injury are slippery surfaces, unseen objects and worn or torn floors or floor coverings. These all present similar liability issues. How long was the surface in that condition? If it's slippery due to spillage, who spilled? If there was an object that has been tripped over, how did it get there?

If you're injured from a slip and fall on someone else's property, whether it be public, private or commercial, you need to answer these kinds of questions.

If you believe something other than bad luck is the cause, then proceed as you would with any other kind of accident. Examine the environment. Talk to witnesses. Ask questions and take pictures.

Because liability in these cases will most likely come down to whether or not the other party was acting reasonably, it's the presentation of your argument that will make or break your case. So when you finally do approach the insurance company, stress any evidence you know could sway a judge later on.


http://www.articledashboard.com/Article/Slip-and-Fall-Accidents---A-Brief-Overview/279588

How Effective Is It To Hire A Private Investigator?

Private Investigators are a powerful part of our free society. They provide a powerful force against cheaters, evil doers, criminals, and are the single most powerful resource in defending the innocent. Because private investigators are not a government agency they can conduct investigations, free of most restrictions and bureaucratic sludge that often allows criminals to escape the law. Cheaters (criminals) are quick at finding loop holes in the law and are just as quick at finding low priority crimes, that law enforcement just doesn’t have time to investigate. A perfect example of such crimes are commonly called white collar crimes. Many white collar criminals go on for years until they are caught because the crime often does not endanger lives and is subsequently a lower priority. Private investigators are often called in to fill in the gap in by detecting fraud (white collar crime). Law enforcements need for private investigators is further increased by the government bureaucracy, that is often slow to adjust to the changes in crime patterns. In other words the criminals are faster at changing their strategies in crime than the police are at changing their investigative tactics. This often leaves the criminals undetected. Law Enforcement, and the public, need private detectives simply because law enforcement must focus their limited resources on life endangering crimes.

Private detectives are often current or former police detectives. Subsequently private eyes typically have the same basic investigative skills and resources as law enforcement, and have even further skills and resources from their private detective experiences. These increased capabilities are magnified by the private sectors comparatively larger investigative budget, per case. Private Detectives simply have more money and investigative energy to spend on low priority cases. Finally, the laws and regulations that a police office must follow restrict their ability to obtain justice at times, while a private detective enjoys far more freedoms.

Another perfect example of how private investigators commonly help when the police don’t can be found in the area of runaway children and missing children. Children that runaway are often in serious danger from sexual assault, drugs, and street violence, yet the police often do nothing. Unless the runaway child is 12 or under, or unless you can prove foul play, it is almost impossible to get a Police detective, in a major metropolitan area, to look for your child. Sadly, in most runaway cases, the police report is taken and then it simply ends up on a desk in the detective bureau until the parent calls to report that they’ve found the child. However, one simple call to a ‘good gumshoe’ (private detective) and you can expect your child back in as little as 24 hours. Is this true? Why? This is true simply because a private detective can and will dedicate more investigative resources on the case in 24 hours than you can expect an average law enforcement agency to put in place on your case in a month. This is not meant to demean the police departments around the Country, they do the best they can with limited resources. The police are really only financially able to support major investigations such as murder, rape, and robbery’s. A private detective may have 5 or 10 open cases, while a single Police Detective might have 100 cases open. So with a case load that high and a limited budget per case, you can imagine how easy it is to find your case at the bottom of the pile, and no police detective ever gets to the bottom of their case load.

Another example of how a private investigator can help is in the area of locating people. For example, the service of process, or the collection of a judgment, requires you to locate the subject first. Police officers don’t get involved with most civil matters and so it is unlikely that the police would be any help in these matters. However, a good private detective will solve these cases rapidly bringing you results fast. A private detective would simply run several checks on the bad address and the new address would be found, often in minutes. As far as finding hidden assets, its far more time consuming for the private detective, but the private detective is bound to deliver hidden assets if they exist. Private investigators are experts at sniffing out those hard to find hidden assets.

Hidden assets are often hidden for two purposes, to hide them from a person such as a spouse or debtor, or to hide them from the IRS. Private detectives typically get involved in finding hidden assets related to divorces or debtor judgments. Private investigators use various confidential resources, plain old fashion surveillance and detective work, and when legal the use of pre-texting to find hidden assets. Locating hidden assets is one of the most challanging assignments for any investigator and is subsequently one of the more costly tasks that a private detective agency is hired to do. The costs are typically worth the results, since the results often lead to large amounts of discovered assets that the client usually walks away with.

Private detectives are the best kept secret in winning any court case. People mistakenly put their faith in their lawyer alone, and lawyers are often afraid to ask their client for additional money to hire a private detective and subsequently do without. If you want to win your court case, demand that a private investigator be a integral part of your case strategy, don’t take my word for it simply look at the O.J. Simpson trial, the private detectives found the leads and evidence, that the attorneys used to paint an innocent picture to the jurors. We encourage attorneys and the public to put their faith in a good private eye. A good private detective will gather all of the fact winning evidence, and can warn your attorney about the opposition’s case strategies insuring that there are no surprises in court. A good private detective hands the attorney all of the tools needed to win in court, a good attorney decides how to present them in front of the Judge and jury. So if you would like to win your current court battle, remember that a good private detective is critical to your cases success.


http://www.articledashboard.com/Article/How-Effective-is-it-to-hire-a-Private-Investigator-/279551

The Real Danger Of Domestic Violence

This past week I had to face a terrible reality: sometimes, there is no way to prevent the real dangers of domestic violence.

I came to this reality after receiving a phone call from a friend of one of my clients, informing me that my client had been severely beaten by her ex-husband during an exchange of their two children in the courtyard of the local police department. My client is currently in intensive care and is unconscious. I am told by my client's family members that her jaw is broken, her left ear was almost severed off, and she suffers from swelling of her brain. The doctors do not know if she will regain consciousness or suffer permanent brain damage.

As you can imagine, this news was devastating to me, as I care very much for my client who I established a close relationship with during the past three years of representing her in her divorce and subsequent child custody battles. I have been agonizing over my work on this case, wondering if I did everything I could do to protect her.

I was hired by my client three years ago. Early in the proceedings my client obtained a permanent restraining order against her ex-husband. The ex-husband and my client had been married and living together, when he tied her up and beat her while the children were in the house. The ex-husband was arrested and he plead guilty to felony domestic violence. This was the end of the marriage, but only the beginning of a long and drawn out custody battle.

During the marriage, the ex-husband could not keep a job, and by default, he stayed at home and watched the kids while my client worked ten hours a day to support the family. I will spare you the details, but I can assure you that the ex-husband was not a model father. In his attempt to gain primary custody of the children, the ex-husband argued to the court that he had a strong pre-existing relationship with the children, and it was in the children's best interests for him to continue as their primary caretaker. As to the domestic violence charges, the ex-husband claimed that the incident was an anomaly and he had learned his lesson by taking court ordered domestic violence classes.

The child custody evaluator and the court ultimately disagreed with the ex-husband and granted my client sole legal and physical custody. The restraining order was extended, and the ex-husband was given visitation with the children a few hours during the week. The Judge also ordered that all transfers of the children were to be in the lobby of the local police station.

In preparation for our trial on the custody issue, I reviewed the transcript of the deposition I took of the ex-husband two years prior. I was reminded by how disturbed the ex-husband appeared and the amount of anger he demonstrated towards my client. There was something about his face (especially his eyes) that told me he was crazy and out of touch will reality. During the deposition, the ex-husband blamed my client for breaking up the marriage and declared that she had baited him into committing domestic violence against her so that she could gain the upper hand in the custody battle.

At trial, I relied heavily on the deposition transcript while cross examining the ex-husband and he eventually became unglued. The man's insanity and hostility surfaced once again. By the end of the hearing, the Judge was able to see the real nature of the ex-husband and ordered limited visitation. The Judge also ordered that the ex-husband attend serious counseling before his visitation could ever be expanded.

As I was leaving the courtroom I was happy for my client, but I had a weird feeling that, in spite of my best efforts and in spite of the fact that we were victorious by convincing the Court to extend the restraining orders and order that the exchanges were to take place inside the lobby of the police department, that the ex-husband still posed a danger to my client. In view of the subsequent brutal beating the ex-husband committed upon my client, I now know that my intuition was correct.

During the beating the ex-husband repeatedly pounded my client's head against a planter, as their two children watched while sitting in their car a few feet away. The ex-husband was eventually stopped by a bystander and he was arrested and charged with attempted murder. The children are in the care of my client's parents. We are all praying that my client will recover.

Did the system fail? Could this brutal second attack have been prevented? Was there something else I could have done? I don't know. However, I have a few suggestions for those who have been the victims of domestic violence and who still maintain contact with the perpetrator because of child custody issues.

1) Trust your instincts and don't let your guard down. If you fear that you may be the victim of domestic violence, don't be shy in seeking all the available remedies with the court.

2) Consider asking the court to order monitored visitation and that somebody else stand in for you to make the exchanges.

3) If possible, bring someone capable of defending you to the exchanges.

4) Ask the court for permission to video record the transfers so that you can report back to the court when the perpetrator crosses the line.

5) Consider bringing pepper spray, a taser gun, or any other weapon that you can lawfully carry to the exchanges.

6) Finally, consider investing in a security system for your house, including surveillance cameras.

As the above case demonstrates, the legal system does not have all the answers and cannot protect victims of domestic violence, in all cases. In light of this reality, you must take whatever steps you can within the law to protect yourself.


http://www.articledashboard.com/Article/The-Real-Danger-of-Domestic-Violence/279203

Debunking The Prenup Stigma

People love choices. Typical Americans, and especially Californians, are no exception. In the "golden state", residents pride themselves on novelty and uniqueness in most aspects of their lives. Inhabitants here scoff at the notion of a lifestyle template-they would rather tailor their own existence to meet their specific needs and desires. Case in point-personal electronic devices. Almost everyone in California has one-but no one device is quite the same. There are so many exciting choices to make before becoming an owner, such as: What carrier do you choose? What kind of plan do you get? How much do you want to spend each month? How many minutes is enough? What device do you get? A basic cellular phone? Or an "all-in-one", with phone, e-mail, internet, camera, and music features? Or something in between? Do you get a blue-tooth attachment? This year's model or last year's model? What kind of ring tones will you select? What color will you choose? A carrying case? Accessories of any kind? Certainly, there are more decisions to be made. The point is that almost everyone leaps at the chance to make these somewhat silly choices. People love the autonomy and self-design this process allows them.

Strangely enough, Californians do not seem to celebrate choice and self-governance when entering into the marital relationship. The vast majority of Californians do not opt to create their own "prenuptial agreement" (a before marriage agreement) with regard to resolution of property and support issues in the event a dissolution occurs. Rather, they rely on the default community property system which controls here in California, and in several other states. In fact, many argue that the existence of a prenuptial agreement reveals that an impending marriage is doomed to fail. This group would argue that preparing for the ending of a marriage before-hand, during the "good" times, suggests an underlying deficiency in the relationship. Admittedly, creating a prenuptial agreement requires a couple to venture into territory that may not be comfortable. Imagining the end of a marriage is obviously depressing-and certainly no one wants to be depressed, especially after they have decided to embark on a new life with a partner. Nonetheless, this endeavor forces two people to communicate about important financial issues they may have never discussed before, such as: division of assets (present and future), division of debts (present and future), spousal support, child support, etc. In that way, it could even be characterized as a litmus test for the marriage.

In any event, the creation of a prenuptial agreement allows a couple to craft their own plan with regard to their marital future. It provides a way to tailor and design the possible termination of a marriage to completely meet your needs and wants. In essence, a prenuptial agreement puts a couple in the driver's seat, letting two individuals make their own specialized marital laws. So why not take advantage of this ability to self-govern? If one is willing to take so much care in ensuring their favorite song is also their ring tone, surely, they should invest as much time (if not more) protecting their legal interests if a divorce ensues.

So, for those out there brave (and wise) enough to create their own laws, the following is a brief summary of the legal requirements California imposes upon prenuptial agreements in 2007. The agreement shall:

Be in contemplation of marriage; Be in writing; Be signed by both parties; Not adversely affect a child's right to support; Not be in violation of public policy or a statute imposing a criminal penalty; Be voluntarily entered into, which is defined as: the party (against whom enforcement is sought) being represented by legal counsel at the time of signing the agreement or said representation being expressly waived, in a separate writing the party (against whom enforcement is sought) having not less than seven calendar days between the time that the party was first presented with the agreement and advised to seek independent counsel and the time the agreement was signed the party (against whom enforcement is sought if unrepresented by counsel) was fully informed of the terms and basic effect of the agreement as well as the rights and obligations he or she was giving up by signing the agreement, and was proficient in the language in which the explanation of the party's rights was conduced and in which the agreement was written the explanation of these rights must be memorialized in an agreement in writing and delivered to the party prior to signing the agreement receipt of this explanation (as well as the source) must also be acknowledged in a signed document All documents were signed without duress, fraud, undue influence, or lack of capacity; and Not be unconscionable, which is defined as: the party being provided a fair, reasonable, and full disclosure of the property and financial obligations of the party the party voluntarily and expressly waiving their right to disclosure of the property and financial obligations beyond disclosure provided the party having an adequate knowledge of the property and financial obligations.

***If the agreement contains provisions regarding the issue of spousal support, including, but not limited to, a waiver of said support, the party against whom enforcement is sought must be represented by independent counsel at the time of signing.

Clearly, the aforementioned guidelines are intended only to be a starting point in the creation of a prenuptial agreement. Once you and your partner have discussed the ideal plan for your legal partnership, it is most advisable to take said plans to an attorney to have him or her memorialize the agreement.

http://www.articledashboard.com/Article/Debunking-the-Prenup-Stigma/279190

New York State Lemon Laws - 8 Frequently Asked Questions

New York State Lemon Laws can be quite confusing to someone who is legally inexperienced. We walked about the streets of New York conversing with various men and women about the New York State Lemon Laws. We tossed them a few pop quiz questions on the laws, and we realized that people have many misconceptions about the New York State Lemon Laws.

The citizens of New York actually have a lot of questions regarding these regulations. We have listed those frequently asked questions here for your reference, along with the quick and simple answers.


1. Why are there two New York State Lemon Laws, while other American states only have one?
The first New York State Lemon Law pertains to brand new cars, and the second is the New York State Lemon Law covering secondhand vehicles. As of today, other states do not have an equivalent of the second New York State Lemon Law.

2. I just discovered that my new van is defective. Is it okay to ask the seller for repairs?
It is more than okay, it's your right. You should go straight to the manufacturer, though. They should complete all necessary renovations on your defective automobile free of charge. New York State Lemon Laws require manufacturers to shoulder this expense.

3. What if the manufacturer refuses to refurbish my van?
New York State Lemon Laws allow the manufacturer 20 days to fix the problems. If after this period there is still no action, New York State Lemon Laws entitle you to a replacement or refund.

4. What if they did try to fix the vehicle but for some reason, they keep failing?
According to New York State Lemon Laws, after 4 unsuccessful attempts, you are still entitled to a replacement car or a refund.

5. What do I do if they charge me for the repairs?
You can file charges under the New York State Lemon Laws. Even if you did not purchase the extended warranty from the car company, New York State Lemon Laws mandate that all expenses for the first 24 months are to be covered by the company.

6. The manufacturer is always willing to fix my car for free, but the same problem keeps recurring and my vehicle keeps going back to the auto shop. What can I do?
If your car had been in the shop for more than 30 days for the same problem, New York State Lemon Laws again entitles you to a replacement or refund.

7. Since I loaned my sedan to my sister who lives in Atlanta, there seems to be some kind of trouble with the steering wheel. Is this covered under the New York State Lemon Laws?
This seems to be a defect obtained from misuse or negligence, and these are not encompassed in the New York State Lemon Laws.

8. I bought my auto in Connecticut but I've been using it in New York ever since. Do the New York State Lemon Laws apply to my vehicle?
In order to benefit from the New York State Lemon Laws, the vehicle has to be bought in New York, and have a New York registration as well. Vehicles bought elsewhere are not covered by New York State Lemon Laws.


http://www.articledashboard.com/Article/New-York-State-Lemon-Laws---8-Frequently-Asked-Questions/278603

Mobile Users Risk Road Accident Claims

We all know the temptation ourselves, and we all know the irritation felt at others doing it. Yes, using a mobile telephone while driving is as easy to do as it is stupid. It is well worth remembering that even if, while using a mobile phone, you're involved in a car accident that is not your fault your entitlement to car accident compensation may be greatly reduced.

On 1st December last year it became illegal to talk on a handheld mobile while driving. Currently the penalty is set at a minimum £60 fine in addition to three driver's license penalty points. The evidence supporting this change in the law was clear. According to one study, reaction times when using a mobile phone, even a hands-free, are greatly reduced. In fact, they are even slower than when just over the legal drink-driving limit.

Unfortunately, there is much to suggest that since 1st December people have continued to use handheld mobiles while driving, treating the new law as if it were nothing more than a trivial impediment to their own civil liberties. I see them, literally every day, blatantly pulling out of intersections with a phone in one hand and steering wheel limply held in the other, guiltily avoiding my gaze.

Somehow, the government's message has been lost on them. Not only do they risk serious personal injury, or worse, a fatal accident, but they also jeopardise their chances of making a car accident compensation claim in the event of anything going wrong. Any no win, no fee solicitors is going to think twice about representing a driver making a road accident claim who was breaking the law at the time of the incident.

A train to catch, a mobile, the headmaster's wife and a neck brace
But, as they say, 'old habits die hard'. I know how easy it is. Just last week, I was in a rush to make my train - little did I know that it was running nearly an hour late anyway - when my phone rang. Instinctively I leaned to forage it from the passenger seat and blindly pressed at the little green button.

"Hello." I panted.

"It's-"

"Sorry. [expletive deleted]. I've got to go. I forgot. I'm breaking the [expletive deleted again] law." And that was it, without any further niceties, I ended the call.

Once I'd settled comfortably on the train, I returned the call I'd earlier had to end so abruptly. I was, I think, understandably horrified to discover that the call had been from the Headmaster of my daughter's school. He was calling because the week before I'd been appointed to the board of school governors.

"Are you alright?"

"Er.Yes, fine."

"Which law exactly, might I ask, were you breaking?"

Once I'd explained, he was very sympathetic. He completely understood my position through the experience of his wife's own recent misfortune, and even forgave my expletives.

She was in a neck brace, he told me. She had been since receiving a whiplash injury in a car crash five weeks earlier. She still hadn't been able to return to work.

"We've gone through a no win, no fee solicitors, but they've advised us that her whiplash compensation claim will be considerably reduced because she was on her mobile at the time of the car accident."

It seems that the headmaster's wife and I are not alone when it comes to risking both serious personal injury and our chances of successfully claiming car accident compensation.

Mobile offences still widespread
Recent statistics show that more than 246 drivers a day are fined in England and Scotland for using handheld mobile phones since the implementation of tougher penalties for the offence. This figure does not even account for some of Britain's largest police forces, including the Metropolitan Police in London, so in reality the figures are likely to be far higher.

Since the new laws took effect, a cultural shift in attitudes towards mobile phone use while driving is slowly taking place. This will inevitably have an impact on road accident claims and car accident compensation payouts. The Royal Society for the Prevention of Accidents hopes that eventually the use of a mobile phone while driving will be perceived to be as unacceptable as drink-driving. Their research shows that drivers using a mobile phone are 400% more likely to be involved in a car accident.

There is a common misconception that using a hands-free kit is the solution. Yet statistics show that even when using a hands-free kit, drivers' response times are significantly reduced. Once again, this could be a factor in reducing any amount of car accident compensation awarded to a driver involved in a road accident.

Nor will using a hands-free kit exempt you from the wrath of the law. Since the introduction of the tougher penalties, more than 20 drivers have been fined for not being in full control of their vehicles while using a hands-free kit.

The new laws also have an impact on employers. For companies whose employees spend a lot of time on the road, there is now an obligation for them to provide their workers with hands-free kits. If they don't, the Department for Transport says that they face being liable for both any fines and any car accident compensation claim resulting from a road accident.

It is not only in the UK that the danger of using a mobile telephone while driving is a prominent issue. In Australia, police are reporting an epidemic of car accidents where they arrive to find young drivers slumped over their steering wheels, clutching mobile telephones with unfinished text messages visible on the screen.

A police spokesperson said, "It is becoming quite common to see unfinished text messages on the driver's mobile phone after car crashes."

A prominent Australian no win, no fee personal injury solicitor is quoted as saying, "My advice is this. If you want to protect yourself and other road users from personal injury, keep your insurance premium intact, and not risk your right to car accident compensation, then refrain from using your mobile phone while driving - whatever the circumstances."

I, the headmaster, and the headmaster's wife all couldn't agree more.

This article may be published on another website free of charge, on the condition that a link is provided from this article to our website: http://www.car-accident-claim.com/car-accident/eyesight-tests-and-car-accident-claims.htm


http://www.articledashboard.com/Article/Mobile-users-risk-road-accident-claims/278505

Do It Yourself Last Will And Testament Tips

Contemplation about your death is never pleasant, but doing the wise thing by foreseeing the possible circumstances of your demise and impact on your family is an honorable act. A last will is a document/form that will ensure your wishes are upheld upon your death.

The most important reason why you probably want to make a perfect last will and testament is because you want your loved ones to inherit your precious wealth. You can also use a last will to determine whom the legal guardian(s) for your children will be. A tax efficient last will can help ensure your wealth is mainly transferred to your loved ones by allowing you to name an executor of your will. The executor will ensure the application of the will.

There are a few basic things you should consider while making your will. Make your will at a young age before your so old or become so senile that it could be argued you were too mentally incompetent to execute your last will and testament. Also, remember to always date your last will since a newer last will always cancels out the older last will and testament. Finally, its best to keep your last will as simple, precise, and as easy to read/understand as possible.

Whomever the will is for (the "testator") must sign their last will and testament in the company of at least two witnesses who are not beneficiaries of the will and can attest to it. Each page of the last will and testament must be signed by the testator, numbered, and dated accordingly (any corrections must be countersigned).

It is best to keep the will in a safe place you and the beneficiaries know about; typically this is a bank vault. Any signed copies can be held by an advocate. Codicils can be attached to it and read out to make changes in the will. Although, if there are too many changes it's best just to write a new will.

The main contents of the will are:
1) Name and home address
2) Short descriptions of your assets
3) An alternative beneficiary in case the first one becomes deceased before you.
4) Gifts to people
5) If desired, the cancellation of debts
6) Name of the executor to manage your estate
7) Name of the guardian to look after your minor child(ren).
8) Your signature
9) And, the two witnesses signature's

Appointing a guardian is important if you have minor children. If you do not appoint a guardian the state will appoint one for you and this can mean CPS (Child Protective Services) in some cases. The guardian for the minor must be over 18 years of age. The guardian must also be previously consulted about your decision to appoint him/her as the guardian.

An executor's job is to pay off taxmen, creditors, cancel credit cards, subscriptions and distributes the testator's assets according to his/her will. The executor can be a spouse, a friend of yours, a family member, a trust company, or a lawyer.

You could start getting ready to write your will today by taking an inventory of your assets, and who receives them. Consider your family's future liabilities in the case of death, and decide for yourself if you want to do the honorable act.


http://www.articledashboard.com/Article/Do-it-Yourself-Last-Will-and-Testament-Tips/278018

New Tax Law Changes Affect Trial Lawyers

The New Law. Under the new Internal Revenue Code Section 6045(f), which was passed last summer by Congress and signed into law by President Clinton, the method by which trial lawyers report contingent fees has been changed. The new law requires anyone in business (which includes insurance companies and corporations) who pay attorneys (that is when either the attorney's name is on the check alone or with the attorney's client) to report the entire amount to the I.R.S. on Form 1099. The Form 1099 is to be issued to the attorney. The attorney is then required to report the entire amount of the check on a tax return, indicating how much was the attorney's fee and how much was distributed to others.

For example, if a case is settled for $45,000 and the attorney's fee was one-third, under prior law, the attorney would report on the tax return a fee of $15,000. Under the new tax law, the attorney must report receipt of $45,000 and show a distribution of $30,000, leaving an adjusted gross revenue of $15,000. In most firms, the annual "gross" of settlements and verdicts collected will be substantial, some well into the millions of dollars. This gross figure will now have to be shown on the tax return for the firm or individual trial lawyer.

Some trial lawyers have already grumbled, indicating that they will continue to do what they have done in the past. That is, they will report what they always have reported: only their fee. The problem is that now, not only is there a requirement to report the gross of settlements and verdicts collected, there is a nearly fool-proof method by which the I.R.S. can determine whether an attorney is in compliance . . . the Form 1099. The I.R.S. almost always runs computer checks to compare the 1099 Forms issued to each taxpayer against the taxpayer's return. If the amount shown on the gross sales receipt line does not equal or exceed the sum of the 1099 Forms, AUDIT! . . . which may result in underreporting issues.

Chester L. Stewart, C.P.A. summarized the new act affecting trial lawyers as follows:


1) Any person engaged in a trade or business must file an information return (Form 1099) for any payments made to an attorney even if the payment is a single amount and it is not known what portion is the attorney's fee. Form 1099-B will be used.

2) The present exemption from reporting payments to corporations will not apply to payments made to corporations that provide legal services.

3) The provision to report applies to attorneys even if the attorney is not the exclusive payee.

4) Attorneys (or the corporation) must supply their federal identification number or their payment will be subject to the back-up withholding requirements.

Former ATLA President Howard Twiggs has stated that Congress "singled out" personal injury lawyers with this new law. Former ATLA President Larry Stewart said "the only thing this proposal will do is add another layer of paperwork".

Despite these protests, the bill was supported by Republicans and President Clinton. Their rationale was that the change was necessary to increase lawyers' compliance with the tax laws. Some believed that the legal profession was the only profession left that was not required to report its gross earnings. The Joint Committee on Taxation estimates that it would bring in an additional $2-3 million a year in taxes.

How to Comply. Because the law has just been enacted, there are very few regulations which chart exactly what trial lawyers will need to retain as records. Because of the uncertainty, we have started, as of the first of this year, to keep a separate file for all personal injury settlements and verdict recoveries. Contained within this file is a copy of the settlement statement for each client. On the settlement statement we have added the client's social security number, date of birth, address and telephone number (see a sample of our settlement sheet below). Our judgment is that at the end of the year we will probably be able to claim a total deduction of all payouts from the gross receipts as opposed to detailing each one or putting them into categories. However, we wanted to be prepared just in case something more is required.

http://www.smithlaw.bz/lawyer-attorney-1182248.html