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In the context of large Chapter 11 cases, the resolution of disputed claims can often be the proverbial albatross around the neck of the debtor, delaying the closing of the debtor's case to the detriment of the debtor's estate.

A new tax case from the U.S. Tax Court addresses the question of whether the filing of a Chapter 11 case by a Subchapter S corporation terminates the company's Subchapter S election. This case is important to the shareholders of a Subchapter S corporation that might have post-petition taxable income.

Last month's article discussed the unfortunate fact that bankruptcy courts have made it virtually impossible for creditors to maintain individual alter ego claims against the debtor's shareholders and affiliates - and that as a result, crafting an alter ego claim that will survive an attack requires finesse. This month's article continues with a discussion of "personal" claims.

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Amid the furor surrounding headline-grabbing scandals at corporate giants, the conduct of corporate executives is being scrutinized more closely than ever. Ushered in by the enactment of the Sarbanes-Oxley Act of 2002 (the Act), the era of "corporate accountability" has left many officers and directors worried about their potential exposure if a company struggling to remain profitable goes south during their tenure at the helm, regardless of the cause of the meltdown.

In an insightful Dilbert" cartoon, the boss is reviewing the results from a recent survey with two employees. The survey results being less than desirable, the boss states, "Managers' bonuses are linked to these results. You can be sure we'll make big changes ... to the survey. " Surveys can be a strategic asset and viable financial tool when assessing certain aspects of your firm. Surveys can also be useful in evaluating merger opportunities. Perhaps the best use for survey information is to identify needed improvements and illustrate the benefits of change. Improperly utilized, however, survey data can cause more harm than good. Survey results taken out of context can create unrealistic expectations among partners, foster unhealthy and divisive comparisons between practices or offices, promote unachievable strategic objectives, and generate broad-based anxiety and apprehension.

Introduced in 1998, the Legal Electronic Data Exchange Standard (LEDES') format rapidly became the de facto US standard format for moving legal invoices from law firms to corporations. LEDES has been embraced by law firms and corporate legal departments, time-and-billing system vendors, corporate matter management vendors, and electronic invoicing and cost management vendors. It's been estimated that more than 90% of legal invoices moving electronically today are formatted according to LEDES 1998B, the first released version of the standard.

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The latest news of interest to your practice.

Features

In the last 2 months, the General Accounting Office (GAO) issued two reports detailing the findings of its studies into the medical malpractice insurance crisis and its effects on medical care. The studies were conducted at the request of Congress, which wanted to learn what the root causes of the rising medical malpractice insurance premiums were and what effects these rising costs were having on the public's access to health care. With this information, it intends to consider legislation similar to some states' tort reform laws.