Avoiding These Common Contract Administration Issues May Lessen the Likelihood of Claims

In my nearly 30 years of law practice, I tend to see the same mistakes repeated by general contractors and subcontractors during the administration of a project which either cause or contribute to disputes and claims. Three of the most common are (1) failing to give proper and timely notice, (2) proceeding with changed work without proper written authorization or required paperwork in place, and (3) failing to separately account for cost and time associated with extra work, backcharges or claims.

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Clarifying TILA's Extended Right of Rescission: Jesinoski v. Countrywide

In the recent case of Jesinoski v. Countrywide Home Loans, Inc., the Supreme Court of the United States ruled that a borrower seeking to rescind a loan pursuant to Section 1635(f) of the Truth in Lending Act need only submit written notice to the lender within three years of the loan's consummation to exercise the right to rescind the loan transaction rather than having to file suit seeking rescission within that period.

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Resisting the Lure of S Corporations

As discussed in an earlier writing, an LLC taxable as a partnership is the superior choice of entity when the entity will own Appreciating Assets. The reasons are numerous and compelling. However, some tax advisors advocate S corporations because (1) an S corporation can pay its owners W-2 income (a tax partnership cannot) and (2) dividends from an S corporation are not currently subject to FUTA, FICA, and Medicare. If the entity only provides services and has no Appreciating Assets, this lure to S corporation status is enticing.

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Why Businesses May Like the "Duke Rules Package"

This year, the Supreme Court considers sweeping amendments first developed at the 2010 Federal Rules Advisory Committee meeting held at Duke University and now approved by the Federal Judicial Conference. This so-called "Duke Rules Package" should also interest those businesses engaged in federal litigation, whether frequently or only occasionally. By design, these amendments could help to streamline litigation in federal courts and reduce costs. To meet this goal, the proposed amendments make significant, possibly long-lasting changes to the way lawyers and courts will handle federal lawsuits in years to come. If the Supreme Court accepts the proposed amendments, Congress must then act on them.

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