About a year after a married couple sold their home, the buyers sued them for fraudulent misrepresentation The buyers contended that the sellers had falsely represented that the home had no moisture or water problems, no damage due to Hooding, and no problems with its foundation The sellers, in turn, asked a state court to declare that the carrier on their homeowners insurance policy was obligated to defend and indemnify them against the buyers’ lawsuit.
Report from Counsel
Lapsed Flood Insurance
Hurricane Katrina destroyed Merlin’s house in August of 2005 About two weeks before Katrina hit he had missed a deadline to pay a premium to keep his flood insurance policy in effect for 2005 to 2006. After Katrina, the Federal Emergency Management Agency extended a grace period of 90 days for paying premiums to keep policies in force.
Condominium Buyers Cannot Revoke Contract
In 2005, a married couple signed a contract with a builder to purchase a unit in a condominium building that was being developed in a luxury resort community. The contract specified that the condominium would be built within two years, although the contract included a “force majeure” provision that allowed for delays under certain circumstances. The contract also specifically waived the buyers’ right to speculative, punitive, and special damages.
Business Loans Cannot Reduce Estate Taxes
A section of the federal Internal Revenue Code authorizes estate tax deductions for qualifying interests in family-owned businesses. For the deduction to apply, the value of the interest in the business held by a person at the time of his or her death must exceed 50% of the total value of the person’s adjusted gross estate. This is known as the “50% liquidity test.”
E-Mailed Documents Allowed
Shortly before he left the employment of a residential treatment center for addicted persons, an employee e-mailed some of his employer’s documents to his and his wife’s personal e-mail accounts. The employee operated two consulting businesses of his own concerning addiction rehabilitation services. The employer’s documents, including its financial statement and the names of past and current patient, at the center, could have been useful to those businesses.
Credit CARD Act
Recently, the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (the Credit CARD Act) went into effect. Congress saw a pressing need to protect consumers from abusive fees, penalties, interest rate increases, and other unjustified changes in the terms of credit card accounts. A new hike in the penalties for violators of the Act will provide extra incentive for compliance.
Car Dealers Clash with Website
In a variation on a familiar phrase, a federal trial court effectively has ruled that, in the context of a website posting customers’ reviews of their retail buying experiences, “you can’t blame the message board.”
Illinois law has some tough laws governing home repair and remodeling contractors.
Illinois law has some tough laws governing home repair and remodeling contractors. The laws include (among other things) minimum insurance requirements and mandatory distribution of a pamphlet from the Illinois Attorney General under certain conditions. For more on the Illinois Home Repair and Remodeling Act please see the following: 1. Illinois Code Section 815 ILCS … Read more
Business Start-Up Checklist
Both heart and mind must be working well if the owners of a new small business are to experience success. While it is only human nature, not to mention fun, to indulge one’s imagination about what a new business started from scratch could be like, would-be entrepreneurs need to engage in some cold, hard thinking … Read more
Golfer Can’t Be Sued for Errant Shot
Azad and Anoop were friends and frequent golf partners. The friendship was no doubt strained when they became adversaries in litigation arising from an injury to Azad during a golf outing. A shot struck by Anoop hit Azad in the eye, causing a serious injury. There was a factual dispute as to whether, when he saw his wayward shot heading for Azad, Anoop yelled “fore” or some other warning, as golf etiquette would dictate. Anoop said he did call out something, while Azad and another witness said they heard no warning at all.