Equipment Finance in Canada: Changes to the Income Tax Act May Have an Impact
August 30, 2007
Canada's conservative minority government recently passed its 2007 Financial Budget (the 'Budget'), which will likely impact the equipment finance industry and particularly cross-border (U.S./Canada) transactions. Central to the Budget was the proposal to eliminate withholding tax on interest payments on loan transactions. As will be discussed below, the likely impact will be that traditional cross-border transactions will be restructured to: 1) provide for quicker repayment of the principal portion of the loan, and 2) provide a means for a greater number of less internationally focused commercial banks and finance companies to undertake cross-border transactions which, prior to the enactment of the new legislation, would have be seen as too complex. This second impact may cause a more competitive environment and further add liquidity to any already liquid market. It is not clear, however, that the proposed legislation will have a significant impact on larger transactions or the activities of internationally focused lenders. While there will likely be enhanced competition for smaller straightforward transactions than currently exists, the market for complex large transactions, while restructured, will have the same level of competition as currently exists.
Negotiating a Medicaid Lien
August 30, 2007
Last year, the U.S. Supreme Court limited reimbursement of Medicaid liens to the fraction of the total recovery that corresponds to medical expenses. <i>Arkansas Department of Health and Human Services et al. v. Ahlborn</i>, 547 U.S. 268 (2006). Measures can be taken, however, that dramatically limit government liens, preserving recoveries to enrich the quality of life of a severely disabled individual.
When Products Liability Intersects with Malpractice Strategy
August 30, 2007
Medical device products liability litigation and medical malpractice litigation have intersected for as long as physicians have been prescribing and implanting medical devices, but that overlap continues to increase and become even more intricate as medical devices become more sophisticated and more widely utilized by physicians and the public, and as plaintiffs increasingly seek to keep their cases in state court by including local diversity-destroying defendants in suits.
An Overview of FIN 48: Accounting for Uncertain Income Tax Positions
August 29, 2007
In an effort to increase comparability and consistency in how companies report income tax positions on financial statements, the Financial Accounting Standards Board ('FASB') issued on July 13, 2006 FASB Interpretation Number 48 ('FIN 48'), <i>Accounting for Uncertainty in Income Taxes.</i> FIN 48 changes the way companies must account for uncertain tax positions taken on federal, state and local, and international income tax returns for financial reporting purposes. Despite the requests for delay by numerous companies and trade and lobbying groups, the provisions of FIN 48 became effective for fiscal years beginning on or after Dec. 15, 2006. The provisions of FIN 48 apply broadly to all companies that issue financial statements in accordance with generally accepted accounting principles ('GAAP') and that are potentially subject to federal, state and local, or foreign income taxes.
Today's Approach to Distressed Situations: A Lessor's Guide
August 29, 2007
Back in 1985, one of us contributed to an industry publication an article titled <i>Strategies for Recovery in Lessee Bankruptcy</i>. Twenty-two years later, the landscape of bankruptcy law and the leasing industry have changed dramatically, and issues and problems faced by the equipment lessor today have much different priorities. As the equipment leasing community contemplates the landscape today, some new approaches and decision drivers face the leasing executive when his lessee files Chapter 11, or threatens to do so.
Why Your Financial Specialist Should Be Independent
August 29, 2007
Over the years, matrimonial lawyers everywhere have increasingly embraced the concept of working with experienced, credentialed professionals who specialize in the financial aspects of divorce. Originally, most of these specialists were Certified Public Accountants and the work was mainly of a forensic nature. Recently, however, we have seen an increase in the involvement of professionals whose background is in the financial planning arena. Today, among other tasks, the planner is often retained to examine the longer-term impact of settlements and answer the client's question: 'Will I be okay financially?'
<b><i>Commentary: </b></i>Keep the Core Neutral: ICANN Policy Proposes to Restrict New Domain Names
August 28, 2007
The Internet Corporation for Assigned Names and Numbers ('ICANN'), the private California corporation set up by the United States Commerce Department in 1998 to manage and control the Internet's root server, is developing a policy to introduce new generic Top-Level Domains. Unfortunately, the draft policy ignores freedom of expression guarantees, expands the rights of trademark owners on the Internet and sets up an arbitrary and subjective process in which ICANN will decide what ideas may be expressed in Internet domain names ' and by whom.
Cameo Clips
August 28, 2007
Concert Tours/Deal Breakdown; Right of Publicity/Web Photo Display; TV Interviews/Anti-SLAPP Law.
In Modern Litigation, Here's One Important Rule
August 28, 2007
Frequently missing from the plethora of articles on the pitfalls and potential problems in electronic discovery data for the uninitiated or unaware is practical experience and analysis from the trenches. This article addresses key EDD issues and pitfalls in a particular case involving 44 million pages of electronic records and a jury verdict of about $570 million, with a focus on the consequences of retaining too much electronic information and ways to solve problems that plague large companies involved in e-discovery.
