Chadbourne & Park LLP v. Troice: Holding: The Securities Litigation Uniform Standards Act of 1988 (SLUSA) does not preclude state-law class actions based on false representations that the uncovered securities that plaintiffs were purchasing were backed by covered securities. Effect: SLUSA bars the bringing of securities class actions “based upon statutory or common law of any state” in which the plaintiff alleges “a misrepresentation or omission of a material fact in connection with a purchase of sale of covered securities.” The statute defines “covered securities” to include only securities traded on a national securities exchange or those issued by investment companies. … [Read more...] about United States Supreme Court Round-Up: Key Opinions from 2013 to 2014 and Upcoming High-Profile Business Disputes
United states tax court
Whether, prior to the implementation of individual mandate in 2014, the Anti-Injunction Act bars the court from considering the constitutionality of the individual mandate?Whether Congress has the authority under the Commerce Clause to enact the individual mandate?If Congress does not have the authority under the Commerce Clause to enact the individual mandate, then is the individual mandate severable from the ACA or is the entire ACA struck down?Whether Congress exceeded its authority when it enacted the Medicaid expansion mandate?The decisions of the United States Supreme Court on these issues will have tremendous impact on the state of healthcare reform at the federal and state level. … [Read more...] about United States Supreme Court to Rule on Constitutionality of Healthcare Reform
The taxpayers received the EZ Credits from New York for engaging in specific economic development activities in the state through their pass-through business entities. As the Court noted, New York labels the EZ Credits “credits” and treats them as refunds for “overpayments” of state income tax; the taxpayers in Maines received refunds of their state income tax based on their claim for the EZ Credits. Despite New York’s characterization of the EZ Credits, the Commissioner asserted that they were nothing more than cash subsidies, and thus should be treated as taxable income to the taxpayers. On the other hand, the taxpayers argued that New York’s label of the EZ Credits as overpayments was binding for purposes of federal law. The Court, noting President Lincoln’s famous quip that “if New York called a tail a leg, we’d have to conclude that a dog has five legs in New York as a matter of federal law. . . . Calling the tail a leg would … [Read more...] about U.S. Tax Court Finds Refundable State Credits Result in Taxable Income
Practice Point: Several factors should be considered by taxpayers in deciding whether to file an amicus brief in Tax Court. In addition to the cost, taxpayers may want to consider whether their position is being adequately represented by another taxpayer’s case and whether they believe that they can provide arguments that might persuade the court to adopt their position. Participation as an amicus can also be helpful to taxpayers in coordinating legal positions and ensuring that the best possible arguments are presented on issues of first impression. An effective amicus brief has the potential to persuade the court, and can be an effective tool to resolve an issue favorably. This is especially true when, because of the specific facts of the taxpayer, the perspectives of other taxpayers are not adequately addressed. … [Read more...] about Should Taxpayers File Amicus Briefs in Tax Court Cases?
The Tax Court considered whether Eaton made misrepresentations during the negotiations or the implementation. With respect to the APA negotiations, the court established the standard for misrepresentation as “false or misleading, usually with an intent to deceive, and relate to the terms of the APA.” Based on the evidence of the negotiations presented at trial, the court concluded that there were no grounds for cancellation of the APAs; “Eaton’s evidence that it answered all questions asked and turned over all requested material is uncontradicted.” Additionally, the court rejected the IRS’s contention that more information was needed; “The negotiation process for these APAs was long and thorough.” Thus, the IRS “had enough material to decide not to agree to the APAs or to reject petitioner’s proposed TPM and suggest another APA. Cancelling the APAs on the grounds related to the APA negotiations was arbitrary.” … [Read more...] about Tax Court Hands Eaton a Complete Victory on the Cancellation of its Advance Pricing Agreements