Taxpayer Suffers SILO (Pre-tax) Loss in Wells Fargo
February 24, 2010
In <i>Wells Fargo & Company v. United States</i>, a court considered for the first time SILOs involving domestic municipal transit agency lessees. While one would have thought that the domestic and federally approved nature of the transactions would have some influence on the decision, they did not.
Economic Stimulus and False Claims Act Liability
January 28, 2010
Setting aside the contentious issue of whether stimulus activities are good for the economy at large, it is important that applicants for, and recipients of, stimulus funds realize that participation in these programs could result not only in significant benefits, but also in exposure to legal liability.
What's New in the Law
January 28, 2010
An in-depth review of recent key cases and what they mean for your practice.
Braving Tempestuous Times
January 28, 2010
Hell-or-high-water" protection has long been considered a commercial necessity to ensure the free flow of equipment lease financing and now, bolstered by recent changes to the Uniform Commercial Code (UCC), it has been extended to accounts receivable financing of goods and services.
Vacation and Abandonment of Industrial Premises
January 26, 2010
Tenants vacating or abandoning their leased space can create a number of problems for industrial landlords. To prevent these problems, it is imperative that all landlords include in their leases provisions prohibiting tenants from vacating or abandoning their leased space. Each such instance should be deemed to be an event of default.
In the Marketplace
December 18, 2009
Highlights of the latest equipment leasing news from around the country.
Double Duty: UCC Definition of Goods Same for ' 503(b)(9)
December 18, 2009
As most practitioners know, the Bankruptcy Code imposes a specific priority scheme that controls the payment of claims. The higher the priority of a particular claim, the more likely it is to be paid. Generally, secured claims are paid first from the specific collateral backing that claim, followed by administrative priority claims, unsecured priority claims and then general unsecured claims. Equity takes last, assuming there is anything left.
Heightened Pleading Standards Apply to Avoidance Complaints
December 18, 2009
Parties to preference and fraudulent transfer actions should pay careful attention to the decision in <i>Angell, Trustee v. Ber Care, Inc. f/k/a PPS, Inc., et al. (In re Caremerica, Inc.)</i>. There, Bankruptcy Judge J. Rich Leonard dismissed certain avoidance claims and upheld others asserted by a Chapter 7 trustee. <i>Caremerica</i> provides useful guidance regarding whether particular elements of a preference or fraudulent transfer claim have been adequately pled.
Taxpayer Victory in Con Edison LILO Shocks IRS
December 18, 2009
In <i>Consolidated Edison Company v. United States</i>, the taxpayer's tax treatment of a LILO transaction was upheld by the court, and all tax benefits claimed by the taxpayer were sustained. Naturally, some muckraking columnists hurried to criticize the Con Edison decision, expressing disappointment that the court actually applied historic leasing case law to a well-developed factual record. Despite their whining, the case demonstrates that the IRS (and the muckrakers) was wrong to treat all LILO and SILO transactions as though they were some prepackaged tax-shelter commodity. Each case turns on its facts, and the taxpayer wins in a properly chosen and argued case.
