LexisNexis® Legal Newsroom
Mealey's Toxic Tort/Environmental - New Jersey Judge Orders Purchaser To Pay Taxes On Cartons Of Cigarettes

TRENTON, N.J. - A New Jersey tax judge on Aug. 26 granted a motion for summary judgment filed by a director of the division of taxation, finding that a New Jersey resident was liable for paying taxes on cigarettes he purchased from an Internet vendor (Kenneth Hudacko v. Director, Division of Taxation, No. 015082-2014, N.J. Tax; 2015 N.J. Tax Unpub. LEXIS 70).

Mealey's Toxic Tort/Environmental - Appellate Panel: Tobacco Store's License Properly Revoked For Code Violations

CHICAGO - An Illinois appellate court on Aug. 24 affirmed a trial court ruling that it was not an abuse of discretion for Chicago agencies to revoke a tobacco store's license for its violations of the city's municipal code regarding proper packaging - and payment of taxes - pertaining to cigarettes (Smoke N Stuff v. City of Chicago, et al., No. 1-14-0936, Ill. App., 1st Dist., Div. 1; 2015 Ill. App. LEXIS 646).

Mealey's Banking & Finance - Professional Services Exclusion Bars Coverage For Tax Fraud Claims, Panel Affirms

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Aug. 18 affirmed a lower federal court's finding that an insurer has no duty to defend former directors of a now-defunct company because their business and management indemnity insurance policy's professional services exclusion bars coverage for claims that the insureds engaged in a payroll tax scheme (Darryn Begun, et al. v. Scottsdale Insurance Co., No. 13-16211, 9th Cir.; 2015 U.S. App. LEXIS 14495).

Mealey's Insurance - Professional Services Exclusion Bars Coverage For Tax Fraud Claims, Panel Affirms

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Aug. 18 affirmed a lower federal court's finding that an insurer has no duty to defend former directors of a now-defunct company because their business and management indemnity insurance policy's professional services exclusion bars coverage for claims that the insureds engaged in a payroll tax scheme (Darryn Begun, et al. v. Scottsdale Insurance Co., No. 13-16211, 9th Cir.; 2015 U.S. App. LEXIS 14495).

Mealey's Banking & Finance - Insured's Conduct Amounts To Recommendation Of Illegal Tax Shelters, Panel Affirms

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Aug. 4 affirmed a lower federal court's ruling that there is no coverage for two underlying lawsuits alleging that an insured committed negligence and fraud with respect to its provision of professional services pertaining to tax documents (Financial Strategy Group PLC v. Continental Casualty Company, No. 14-6296, 6th Cir.).

Mealey's Insurance - Insured's Conduct Amounts To Recommendation Of Illegal Tax Shelters, Panel Affirms

CINCINNATI - The Sixth Circuit U.S. Court of Appeals on Aug. 4 affirmed a lower federal court's ruling that there is no coverage for two underlying lawsuits alleging that an insured committed negligence and fraud with respect to its provision of professional services pertaining to tax documents (Financial Strategy Group PLC v. Continental Casualty Company, No. 14-6296, 6th Cir.).

Mealey's Litigation Procedure - 11th Circuit Upholds Rulings On Experts In Tax Fraud Case

ATLANTA - Handwriting and fingerprint experts for the U.S. government in a tax fraud and identity theft case against a Florida man were qualified, used scientifically reliable methodology and provided testimony that was helpful to the jury, the 11th Circuit U.S. Court of Appeals found July 2 in affirming the man's conviction (United States of America v. Lee Ervin Dale, No. 14-10733, 11th Cir.; 2015 U.S. App. LEXIS 11433).

Mealey's Insurance - Panel: Excess Insurer Has Duty To Reimburse Defense Costs Of Tax Liability Suit

CINCINNATI - A Texas appeals panel on June 25 affirmed a lower court's ruling that an excess insurer has a duty to reimburse the defense costs that its insured incurred in an underlying lawsuit alleging that it failed to fully remit hotel taxes (Illinois Union Insurance Co. v. Sabre Holdings Corporation, et al., No. 02-14-00130-CV, Texas App., 2nd Dist.; 2015 Tex. App. LEXIS 6567).

Mealey's Insurance - High Court Affirms Availability Of Tax Credits In ACA Federal Exchange

WASHINGTON, D.C. - The Patient Protection and Affordable Care Act (ACA)'s structure suggests the availability of tax subsidies in the federal exchange, and Congress could not have intended the state insurance market "death spirals" likely to result from barring such subsidies, a divided U.S. Supreme Court held June 25 (David King, et al. v. Sylvia Mathew Burwell, et al., No. 14-114, U.S. Sup.).

Mealey's Health Law - High Court Affirms Availability Of Tax Credits In ACA Federal Exchange

WASHINGTON, D.C. - The Patient Protection and Affordable Care Act (ACA)'s structure suggests the availability of tax subsidies in the federal exchange, and Congress could not have intended the state insurance market "death spirals" likely to result from barring such subsidies, a divided U.S. Supreme Court held June 25 (David King, et al. v. Sylvia Mathew Burwell, et al., No. 14-114, U.S. Sup.).

Mealey's PI/Product Liability - Judge: Companies Owed Duty Of Care For Chemical Spill; Claim For Lost Taxes Fails

CAMDEN, N.J. - The federal judge in New Jersey presiding over the litigation brought by a school district seeking damages related to a chemical spill caused by the derailment of a train crossing the bridge over Mantua Creek on June 8 partially dismissed some of the claims against the railroad company defendants. The judge ruled that the school district had shown that the defendants owed it a duty of care, but the judge also concluded that the defendants were not liable for negligence resulting in a reduction in the property taxes (In re: Paulsboro Derailment Cases, No. 13-784, D. N.J.).

Mealey's Toxic Tort/Environmental - Judge: Companies Owed Duty Of Care For Chemical Spill; Claim For Lost Taxes Fails

CAMDEN, N.J. - The federal judge in New Jersey presiding over the litigation brought by a school district seeking damages related to a chemical spill caused by the derailment of a train crossing the bridge over Mantua Creek on June 8 partially dismissed some of the claims against the railroad company defendants. The judge ruled that the school district had shown that the defendants owed it a duty of care, but the judge also concluded that the defendants were not liable for negligence resulting in a reduction in the property taxes (In re: Paulsboro Derailment Cases, No. 13-784, D. N.J.).

Mealey's IP/Tech - Most Expert Testimony On Bra Patents, Damages Allowed By Judge

FORT MYERS, Fla. - A Florida federal judge on May 24 declined to exclude the testimony of a patent validity expert but limited the testimony of a damages expert so that taxes are not deducted from an accused infringer's gross profit margin, finding that if there is infringement, it is more equitable for the patent holder to receive any windfall that may occur by not deducting the taxes paid (Chico's Fas, Inc. v. Andrea Clair, et al., No. 2:13-cv-792, M.D. Fla.; 2015 U.S. Dist. LEXIS 67394).

Mealey's Litigation Procedure - Most Expert Testimony On Bra Patents, Damages Allowed By Judge

FORT MYERS, Fla. - A Florida federal judge on May 24 declined to exclude the testimony of a patent validity expert but limited the testimony of a damages expert so that taxes are not deducted from an accused infringer's gross profit margin, finding that if there is infringement, it is more equitable for the patent holder to receive any windfall that may occur by not deducting the taxes paid (Chico's Fas, Inc. v. Andrea Clair, et al., No. 2:13-cv-792, M.D. Fla.; 2015 U.S. Dist. LEXIS 67394).

Mealey's PI/Product Liability - 11th Circuit Finds Tobacco Company Owner Liable For $40.62 Million In Back Taxes

ATLANTA - The 11th Circuit U.S. Court of Appeals on April 9 denied a petition for review of a decision by the U.S. Tax Court that a distributor of imported cigarettes may not claim tax deductions for unpaid obligations under the national tobacco Master Settlement Agreement (MSA) (Vidal Suriel v. Commissioner of IRS, No. 14-11533, 11th Cir.).

Texas Bills Would Give Tax Credits To Companies Not Using Fresh Water For Fracking

AUSTIN, Texas - Two pieces of legislation that would provide tax credits to oil and gas operators conducting hydraulic fracturing were referred to the Texas House Committee on Ways and Means on March 23.

Mealey's Labor & Employment - Government Asks Judge To Dismiss Indian Tribe's ACA Employer Mandate Challenge

CHEYENNE, Wyo. - An Indian tribe waived its objections to the Patient Protection and Affordable Care Act (ACA)'s large employer mandate by not raising them during the rulemaking process, and its action runs afoul of the Anti-Injunction Act's (AIA) bar on tax challenges taxes, the government told a federal judge on March 19 (Northern Arapaho Tribe, et al. v. Sylvia Burwell, et al., No. 14-247, D. Wyo.; 2015 U.S. Dist. LEXIS 30480).

Mealey's Insurance - Government Asks Judge To Dismiss Indian Tribe's ACA Employer Mandate Challenge

CHEYENNE, Wyo. - An Indian tribe waived its objections to the Patient Protection and Affordable Care Act (ACA)'s large employer mandate by not raising them during the rulemaking process, and its action runs afoul of the Anti-Injunction Act's (AIA) bar on tax challenges taxes, the government told a federal judge on March 19 (Northern Arapaho Tribe, et al. v. Sylvia Burwell, et al., No. 14-247, D. Wyo.; 2015 U.S. Dist. LEXIS 30480).

Mealey's Health Law - Government Asks Judge To Dismiss Indian Tribe's ACA Employer Mandate Challenge

CHEYENNE, Wyo. - An Indian tribe waived its objections to the Patient Protection and Affordable Care Act (ACA)'s large employer mandate by not raising them during the rulemaking process, and its action runs afoul of the Anti-Injunction Act's (AIA) bar on tax challenges taxes, the government told a federal judge on March 19 (Northern Arapaho Tribe, et al. v. Sylvia Burwell, et al., No. 14-247, D. Wyo.; 2015 U.S. Dist. LEXIS 30480).

Mealey's Health Law - Home Health Care Companies Owner Pleads Guilty To $12.6M Medicare Fraud Scheme

DETROIT - The owner of two home health care companies on March 13 pleaded guilty in Michigan federal court for tax fraud as well as his involvement in a $12.6 million Medicare fraud scheme in which services were not provided to patients or obtained through illegal kickbacks (United States of America v. Mohammed Sadiq, et al., No. 12-cr-2027, E.D. Mich.).

Mealey's Labor & Employment - Illinois Federal Magistrate: Predisability Earnings Should Be Based On Regular Salary

CHICAGO - In granting a disability claimant's motion for entry of judgment, an Illinois federal magistrate judge on March 13 determined that the claimant's predisability earnings should be based on the claimant's regular earnings and not based on a tax year in which the claimant's salary was vastly different from other years (Carole Cheney v. Standard Insurance Co., et al., No. 13-4269, N.D. Ill.; 2015 U.S. Dist. LEXIS 30918).

Mealey's Insurance - Home Health Care Companies Owner Pleads Guilty To $12.6M Medicare Fraud Scheme

DETROIT - The owner of two home health care companies on March 13 pleaded guilty in Michigan federal court for tax fraud as well as his involvement in a $12.6 million Medicare fraud scheme in which services were not provided to patients or obtained through illegal kickbacks (United States of America v. Mohammed Sadiq, et al., No. 12-cr-2027, E.D. Mich.).

Mealey's Insurance - Illinois Federal Magistrate: Predisability Earnings Should Be Based On Regular Salary

CHICAGO - In granting a disability claimant's motion for entry of judgment, an Illinois federal magistrate judge on March 13 determined that the claimant's predisability earnings should be based on the claimant's regular earnings and not based on a tax year in which the claimant's salary was vastly different from other years (Carole Cheney v. Standard Insurance Co., et al., No. 13-4269, N.D. Ill.; 2015 U.S. Dist. LEXIS 30918).

Mealey's Litigation Procedure - U.K. Energy Firm Files Notice Of Arbitration Against Indian Tax Department

EDINBURGH, Scotland - A United Kingdom energy firm on March 10 announced that it has filed a notice for international treaty arbitration in relation to a $1.6 billion Indian tax assessment.

Mealey's IP/Tech - High Court: Tax Injunction Act Does Not Bar Suit Over Sales Tax Procedures

WASHINGTON, D.C. - The U.S. Supreme Court on March 3 held that a retailers trade association lawsuit challenging the constitutionality of a Colorado tax law, which requires retailers to notify customers of uncollected sales tax on mail order and Internet purchases, is not barred by the Tax Injunction Act of 1937 (TIA) because the lawsuit does not "'restrain' the 'assessment, levy or collection' of Colorado's sales and use taxes" (Direct Marketing Association v. Barbara Brohl, No. 13-1032, U.S. Sup.; 2015 U.S. LEXIS 1738).