The diverse use of trusts is represented in a recent case from the federal Fifth Circuit Court of Appeals. In Gale v. Carnrite, 559 F.3d 359 (5th Cir. 2009), the dispute involved tax liabilities arising from the sale of membership interests in a Nevada limited liability company. The underlying facts were as follows: In 1999, …
Category Archives: Case law
All Sizzle, No Burger
A recent federal case started off with an intriguing headnote – “Lawyer does not breach of fiduciary duty or contracts by advising termination of co-counsel where advice was privileged and protected by agreements.” From the Ninth Circuit Court of Appeals, no less. In the end, the court tackled the issues on narrow grounds, giving rise …
Fiduciary Personally Responsible for Tax Debt
A fiduciary’s liabilities can sometimes arise in unexpected contexts. A recent decision involving an estate tax liability held that a fiduciary was personally liable for unpaid estate taxes. In Carroll v. United States, 2009-2 USTC ¶ 60,577 (N.D. Ala. 2009), the taxpayer was denied a bankruptcy discharge for unpaid estate taxes arising from the estate …
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Hedge Fund Investment Does Not Give Rise to Claim Against Attorneys
In a June 2009 decision from New York’s highest court, the Court of Appeals held that attorneys for a hedge fund did not owe fiduciary duties to the investors. The hedge fund in question was structured as a limited partnership, and the investors were limited partners. When the investment turned sour, the investors sued, claiming …
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