News & Events

News & Events tag:www.ms-lawfirm.com,2008:/news//6 2008-06-16T19:30:08Z Important News & Event information for Maguire & Schneider, LLP. Movable Type 3.35 Recent Trials tag:www.ms-lawfirm.com,2008:/news//6.148 2008-06-16T19:24:48Z 2008-06-16T19:30:08Z

Partners Bradley Barbin and Karl Schneider completed a criminal jury trial in March, 2008 involving tax and conspiracy charges in the Eastern District of Pennsylvania Federal District Court. Karl Schneider, along with colleague Trina Goethals completed a civil jury trial in early June, 2008 in the Butler County Common Pleas court involving alleged real estate broker negligence as well as concealment of foundation damage. Partner Elected to CBA Board of Governors tag:www.ms-lawfirm.com,2008:/news//6.147 2008-06-05T18:47:30Z 2008-06-10T15:00:23Z

Maguire & Schneider, L.L.P. is pleased to announced that KEITH W. SCHNEIDER, partner, has been elected by his peers as a member of the Columbus Bar Association Board of Governors for the 2008-2009 year. Keith Schneider's practice focuses on all aspects of labor and employment law, general litigation, complex litigation, white collar crime, banking law, municipal law, administrative law, real estate law, and class action. Lisa Wu Fate to Speak at Seminar tag:www.ms-lawfirm.com,2008:/news//6.145 2008-03-10T16:50:41Z 2008-06-05T18:46:53Z

Lisa Wu Fate has been asked to speak at a one-day seminar on April 18, 2008 titled "What You Need to Know About Public Records and Open Meetings in Ohio". Ms. Wu Fate is recognized statewide as an expert in the areas of public records and open meetings law. Bradley Davis Barbin to Speak at Seminar tag:www.ms-lawfirm.com,2008:/news//6.146 2008-02-26T14:42:53Z 2008-02-26T14:56:11Z

Bradley Davis Barbin, a partner of Maguire & Schneider, has been asked to speak at the "Document Retention and Destruction in Ohio" seminar on February 29, 2008. Mr. Barbin has held several key positions in federal and state government over his twenty-four year legal career. Mr. Barbin devotes his practice to civil and criminal litigation in the state and federal courts. Associate Appointed to Commission tag:www.ms-lawfirm.com,2008:/news//6.144 2008-02-19T20:00:04Z 2008-02-20T04:13:02Z

Lisa Wu Fate has been appointed to the Supreme Court of Ohio, Commission on Technology and the Courts, term ending December 31, 2009. The Commission was established in December 2007 to advise the Supreme Court of Ohio on rules and policies, etc. pertaining to information technology systems in the Courts; delivery of technology services, educational and training programs for judges and court personnel; exchange of data information between courts to promote greater efficiency; and other issues promoting comprehensive use of technology in the Ohio courts. The Commission consists of 25 members, appointed by various members of the judiciary, Clerks of Court and Bar Associations, among others. The President of the Ohio State Bar Association is entitled to one appointment, and he appointed Ms. Wu Fate to serve. Ms. Wu Fate is a member of the litigation group and has expertise in public records law and in many different jurisdictions. She graduated with Honors from the Ohio State University Moritz College of Law and with High Distinction from the University of Michigan. Lisa Wu Fate & Karl H. Schneider Speak at Real Living HER Seminar tag:www.ms-lawfirm.com,2008:/news//6.135 2008-01-18T13:44:54Z 2008-02-11T16:49:57Z

Lisa Wu Fate and Karl H. Schneider presented an educational seminar regarding short sales to over 200 associates from Real Living HER, Inc. at the company’s 2008 All-Agent Kick-Off Meeting. The meeting is a quarterly event attended by hundreds of the company’s associates and is intended to keep Real Living’s associates at the cutting edge of developments in their chosen field. Recent events involving the mortgage market nationwide have caused increased risk of foreclosure and many homeowners find themselves in need of selling their properties on the open market to avoid a distressed foreclosure sale. Sometimes, to accomplish the arms-length sale, short sale negotiations are required. This option, however, creates a host of legal and ethical considerations for Ohio real estate agents, which were discussed in detail at the event. Gadolinium Injection Used To Improve MRI Image Can Cause An Incurable Skin Disease In People With Kidney Problems tag:www.ms-lawfirm.com,2008:/news//6.143 2008-01-12T21:49:39Z 2008-02-11T21:47:01Z

Gadolinium is used to obtain a brighter and better image on MRI (magnetic resonance imaging) and MRA (magnetic imaging angiography) scans. In people with kidney problems it can cause an incurable disease known as NSF/NFD. NSF/NFD typically starts with swelling and tightening of the skin, frequently with red or dark...

www.techsn.com Download Gadolinium Fact Sheet (MS-Word) Download Gadolinium Fact Sheet (PDF) Download FDA Warning Document (PDF) You may want to consider contacting us if you have NSF/NFD or think you might have it, to discuss your legal rights. You can contact our Pre-Paid Legal Provider department at 1-800-464-2266. ]]> Partner Named 2008 Super Lawyer tag:www.ms-lawfirm.com,2008:/news//6.103 2008-01-09T21:37:11Z 2008-01-21T21:57:33Z

Congratulations to Karl H. Schneider who has been named a 2008 “Super Lawyer”. “Super Lawyers” is a comprehensive and diverse listing of exceptional attorneys representing a wide spectrum of practice areas, firm sizes and geographic locations. The list is based on surveys of thousands of lawyers and peer reviews. Only the top five percent of lawyers from nearly sixty practice areas are named “Super Lawyers”. This is Mr. Schneider’s fourth year being listed in this publication. 2005-2007 he was recognized in the practice area Criminal Defense: White Collar and in 2008 he was recognized in the practice area Professional Liability: Defense. Business Partner Pitfalls: Fiduciary Duty in a Close Corporation tag:www.ms-lawfirm.com,2007:/news//6.139 2007-12-12T21:53:09Z 2008-02-11T23:02:36Z

Amy has the experience and connections. Betty has the money. Together they open a little shop. The grand opening of A&B is a dream come true. They have properly incorporated, hired a CPA, drafted a business plan, carefully selected employees, obtained insurance, and got a great deal with suppliers. When...

www.techsn.com Amy has the experience and connections. Betty has the money. Together they open a little shop. The grand opening of A&B is a dream come true. They have properly incorporated, hired a CPA, drafted a business plan, carefully selected employees, obtained insurance, and got a great deal with suppliers. When the honeymoon is over and the real work of developing a small business begins, Betty the minority shareholder is ignored or worse. Amy, the majority shareholder, runs the store on a day to day basis but does not keep good records. The cash register is broken so all sales are maintained (or not) on a notepad. Amy makes the cash deposits on a regular basis but diverts some of the cash to another similar business she owns alone. Amy doesn’t see the need to advertise in light of the ads she runs for her other business. Betty is never in the store but relies on sporadic communications from Amy. Since the venture was well funded and they have been friends for years, Betty assumes all is well. Out of the blue, Amy withdraws from the little shop after nine months of operation. The doors are closed. Of the $50,000 invested by Betty, only $1,500 remains in the corporate bank account. How could this happen? Records of sales are nearly non-existent. Paid invoices provide a clue as to the number of sales. Bank records indicate transfers were made to Betty’s other business account. The former employees confirm that shop sales exceeded the deposits listed. What is a minority shareholder to do? Fiduciary duty between shareholders of a close corporation imposes on the members of the firm the obligation of the utmost good faith in their dealings with one another with respect to the company’s affairs, of acting for the common benefit of all in transactions relating to the firm business, and of refraining from taking any advantage of one another by the slightest misrepresentation, concealment, threat, or adverse pressure of any kind. A majority shareholder has a fiduciary duty not to misuse her power by promoting her personal interests at the expense of corporate interests. In our example, Amy’s failure to keep adequate records or to promote the business as agreed in the business plan is a breach of fiduciary duty. She clearly wanted the cash to promote her other business venture to the detriment of A&B. Betty is now in a position to sue her partner (and former friend). Amy’s deposit of A&B money for her own purposes is also an act of Conversion. Conversion is a wrongful exercise of dominion or control over property of another in denial of or under a claim inconsistent with her rights. Betty can show, through the sales receipts she has and bank statement that Amy converted the A&B cash to her other accounts. This is another count in the lawsuit. Betty, of course, will win her breach of duty lawsuit against Amy. But a Judgment from the Court does not guaranty the collection of her initial investment. Amy has no money since she sunk all the cash into her other business which has also closed due to poor management. The sad ending - Betty is out $50,000 with little hope of recovering even a small portion. This does not have to happen to you. Fiduciary duty rules are great, but you need to BE INVOLVED. In a close corporation, a minority shareholder is entitled to information regarding the activities of the business in which the investment is made. Minority shareholders can call meetings, request accountings, and be given notice of material changes in the business. A well drafted shareholder agreement is an excellent way to spell out how the business will be run and what information a minority shareholder is entitled; but that does not mean the agreement will be followed. You need to stay involved, particularly in the first year. The most important lesson to take from this example is – if you are looking for a passive investment where you do not need to be involved in the operation of the business, a close corporation may not be for you. Small businesses have many pitfalls –operationally, taxes and others. As a shareholder, you must be ready for the work involved to make a small business successful. Consumer Protection Laws; Reality vs. Myth tag:www.ms-lawfirm.com,2007:/news//6.137 2007-11-29T17:41:48Z 2008-01-18T17:50:06Z

Ohio offers consumer protection in several different types of transactions. For instance, there is a Lemon Law for new car purchases which allows a buyer to bring a claim against the vehicle’s manufacturer if the buyer has experienced problems within the first year or first 18,000 miles of delivery. The...

www.techsn.com Ohio offers consumer protection in several different types of transactions. For instance, there is a Lemon Law for new car purchases which allows a buyer to bring a claim against the vehicle’s manufacturer if the buyer has experienced problems within the first year or first 18,000 miles of delivery. The problems must substantially impair the use, value, or safety of the car and must have been reported to the manufacturer within the first year or 18,000 miles. Protection is also provided to consumers under the Consumer Sales Practices Act, the Telephone Solicitation Sales Act, the Home Solicitation Sales Act, as well as legislation including but not limited to automobile repairs, home mortgages, credit cards, store refund and return policies. Despite a popular belief that consumers have a right to cancel a contract within 3 days of signing, no such right exists. Some exceptions which allow cancellation within 3 days under certain circumstances include mortgage refinance contracts, sales made to a consumer in the consumer’s home and prepaid entertainment contracts. Buyers should consult an attorney before signing any contract. While consumer protection laws exist, buyers still need to exercise care when signing contracts; whether it is a credit card receipt for an in-store purchase or a contract to buy a home. Stock Exchange: Traps for the Unwary Sole Proprietor tag:www.ms-lawfirm.com,2007:/news//6.140 2007-11-06T21:55:45Z 2008-01-18T21:59:09Z

Converting a sole proprietorship into a corporation seems like a simple matter of filing Articles of Incorporation, issuing stock certificates and adopting By-laws. No need to pay the lawyers or CPAs more money, right? You risk some serious tax consequences by failing to plan your transaction appropriately. A conversion from...

www.techsn.com

Have an attorney form the corporation and draft the bylaws and a shareholders’ agreement.

Issue the stock to the sole proprietor upon transfer of the assets and execution of the applicable documents.

Obtain appraisals of all property contributed to the entity or otherwise document the valuation.

Consult with your tax advisor and/or CPA regarding an S corporation election.

Determine whether any gain will result if liabilities are assumed in excess of basis.

Have an attorney review loan documents to be sure the assumption of debt, or even the transfer of debt, is allowed. Obtain lender consent, if necessary.

Make sure the RESULTS you intend are the RESULTS you get. Plan appropriately for your stock transaction and avoid the traps of the tax code by obtaining expert advice.]]> Maguire & Schneider Attorney Passes Missouri Bar tag:www.ms-lawfirm.com,2007:/news//6.136 2007-11-02T12:48:05Z 2008-01-18T13:53:31Z

Congratulations to Attorney Trina N. Goethals who passed the Missouri Bar. Ms. Goethals practices in the areas of Litigation and Real Estate. A graduate of Central Missouri State University in 2000, Ms. Goethals received her law degree from Capital University Law School in 2005....

Karl H. Schneider has been asked to speak at a title insurance agents’ forum sponsored by Old Republic Title Insurance Company on November 14, 2007. Mr. Schneider will address various litigation matters including foreclosure suits and attendant bankruptcy issues. Pre-Paid Legal Services, Inc. Awards Maguire & Schneider, LLP tag:66.227.2.251,2007:/news//6.101 2007-08-27T19:24:19Z 2007-08-27T19:27:51Z

At the 2007 Provider Awards Banquet, held on September 23rd in Nashville, Tennessee, Pre-Paid Legal recognized Maguire & Schneider and some of its lawyers with awards for distinguished customer service. Maguire & Schneider received the “Determination Award”. This award recognizes our continued commitment to meeting and exceeding the requirements of Pre-Paid Legal’s service criteria. Maguire & Schneider has been recognized with a customer service award in 9 out of the last 10 years. Attorneys Bill Donahue, Tom Gallagher, Chris Lentz and Andrea Martin received Members’ Choice Awards. These awards are based on Member feedback and excellent survey results for the past year. Partner Wayne Hassay and Attorney Jeffrey Runyan received awards for their excellent service as Legal Shield attorneys. No other firm had two attorneys selected for this award. Congratulations to all of our attorneys who individually received awards and to the attorneys and staff who worked together to receive the Determination Award! No Kidding -- More Kiddie Tax tag:www.ms-lawfirm.com,2007:/news//6.141 2007-06-12T21:14:40Z 2008-01-18T22:17:59Z

The Small Business and Work Opportunity Tax Act of 2007 was signed into law on May 25, 2007. Included int eh Act are various small business tax incentives and a few revenue raisers such as new and enhanced penalties and broadening of the kiddie tax. Previously, a child subject to...

www.techsn.com The Small Business and Work Opportunity Tax Act of 2007 was signed into law on May 25, 2007. Included int eh Act are various small business tax incentives and a few revenue raisers such as new and enhanced penalties and broadening of the kiddie tax. Previously, a child subject to the kiddie tax pays tax at his or her parents’ highest marginal rate on the child’s unearned income over $1,700 if that tax is higher than the tax the child would otherwise pay on it. In the alternative, parents could elect to include the income on their own return the child’s gross income in excess of $1,700. A child was subject tot the kiddie tax if he or she has not attained age 18 before the close of the tax year; either parent of the child is alive at the end of the tax year; and the child does not file a joint return for the tax year. For tax years beginning after May 25, 2007, the kiddie tax rules apply to children age 18, and children over age 18 but under age 24 who are full-time students – their earned income doesn’t exceed on-half of the amount of their support. This expansion of the kiddie tax rules attempt to curtail a strategy some parents were advised to use to take advantage of a beneficial feature of the long-term capital gains rates. The top tax rate on “adjusted net capital gain” in 2007 is 15%. But to the extent a taxpayer’s adjusted net capital gain would otherwise be tax in the two lowest tax brackets (10% and 15%) it’s taxed at 5% for 1007 and 0% for 2008 through 2010. Same families sought to benefit from these rates by gifting appreciated stock, mutual-funds shares, and other securities to their low-income, young-adult children, who could then sell the securities tax-free in 2008, 2009, and 2010. The new law changes will eliminate the opportunity to do this in many cases. However, if the earned income of a child over age 18, or age 19-23 if a full time student, exceeds one-half his or her support, the kiddie tax rules won’t apply and he or she will be able to take advantage of the 0% capital gains rate next year and his or her own bracket on other types of unearned income. Earned income is always taxed at the child’s tax rates. Thus, one way of providing a child with income without triggering increased tax liability under the kiddie tax rules is to employe the child (at reasonable compensation) in, for example, a trade or business owned by the parent. Computer-literate children, for example, could help with a variety of tasks. As a result, the child’s earnings won’t be subject to the kiddie tax and will generate a deduction for the family business. As an added bonus, this could help to avoid the kiddie tax on unearned income of a child age 18 or age 19-23 if a full0time student. For purposes of the kiddie tax, support is defined the same as it is for the dependency deduction requirement that a qualifying child not provide more than one-half of his or her own support for the tax year, but any scholarships received by a student for study at an educational organization are excluded in determining the total support paid for the student for the tax year. You should discuss the options for dealing with your children’s tax liability with your tax professional. Gifting strategies and other estate planning tools can still be used to reduce your tax burden.