Cuddy & Feder LLP’s Post

Special Event! You are invited! Sign up here: https://lnkd.in/eWd9XHfv What is this? On November 13th, KW Legacy will sponsor an event with Chris Barnette at 24/7 Real Estate School to help our agents understand the importance of forming a legal entity and protecting their assets. Our Leadership teams believe this is essential, especially with the recent NAR settlement. While many think of LLCs or corporations mainly as tax shelters, they are much more than that. The settlement has highlighted the need to safeguard against potential lawsuits—where personal assets could be at risk in the event of a claim. A claim is no longer just an E & O claim but much bigger than that, and tens and thousands of dollars, even hundreds and thousands of dollars can be at stake in the case of a lawsuit. The NAR Settlement protected us through August 17th and we are now on our own if a new lawsuit comes to light. This seminar will feature attorneys and other professionals who will cover why establishing an LLC or corporation is vital, the benefits of an umbrella policy, and the risks of commingling funds. We also have the resources to get the process started if you choose to form an entity.

The CEM Recordkeeping Fee Study debunks the theory in every excess fee case that recordkeeping fees are commoditized. The study further proves that a key driver in lowering the price of recordkeeping fees is whether you include proprietary investments and/or the managed account platform of the recordkeeper – not larger account balances. The use of proprietary investments from the recordkeeper has a larger impact on lowering fees than even when the plan doubles in size. That means that it is not fair or legitimate to compare the recordkeeping fees of random plans to infer a flawed fiduciary process – at least unless you are comparing plans that have discounted fees for using the recordkeeper’s proprietary investments. But that is exactly how plaintiff law firms are misleading federal courts in excess fee cases. 💼 Read the full blog here: https://lnkd.in/g_ZGjQdH #EncoreFiduciary #RecordkeepingFees #ERISA #PlanSponsors #RetirementPlanning #ExcessFees

There is a longstanding belief that the longer a claim is worked up, the more an insurer will be willing to pay to settle it. To maximize the value of their clients’ claims, plaintiff lawyers are incentivized to litigate cases to the point of finally receiving what they believe to be the “courthouse steps” offer. Until then, both sides engage in a game of litigation chicken, negotiating from artificial positions, waiting for their opponent to budge first. This mutual posturing doesn’t only increase the costs for both sides, it also increases the amount needed to reach settlement as the costs incurred by the plaintiff lawyer ultimately reduce the net settlement to be recovered by their client. And during this game of chicken, the parties’ true, unexaggerated settlement positions are never compared. Not once. So while the parties may be negotiating from positions that are “too far apart,” their true positions may actually overlap. Why don’t the parties just tell each other their true position and see if there is an overlap? Because no one wants to show their cards! Negotiators know that if they were to reveal their true position, it would just become their opponent’s new floor or ceiling to negotiate against. Just ask any adjuster or attorney you know! This stalemate keeps them locked in an unnecessary spending frenzy without resolution in sight. StreamSettle gives parties a safe place to test their true positions for overlap without showing their cards. StreamSettle blindly compares the parties’ true positions, which remain concealed unless they trigger a settlement. The process is simple: if the streamed offer exceeds the streamed demand, the claim settles at the midpoint of the values entered. If it doesn’t, the parties have lost nothing and have revealed nothing. Of course there are cases that need to be tried, but for the large majority of cases, StreamSettle’s on-demand comparison provides both sides with the most efficient route to settlement. We’re hoping to bring practicality to negotiations and save both sides a bunch of money along the way. Let’s go! Joe Jones

In a new blog, Attorney Timothy Schweiss explains the crucial "Waiver of Subrogation" clause in commercial leases. Schweiss delves into the significance of these clauses, detailing how they mitigate legal disputes, foster positive landlord-tenant relationships, and ensure that insurance policies align with lease agreements. Read here: https://ow.ly/pCzK50Tpn3A

An example of why D&O/E&O policy wording matters. Here's a case where a federal court ruled that an insurer must advance defense costs for a private equity group, as the costs were a proximate result of its asset management services despite a contract exclusion. #insurance

A new wave of discovery requirements has hit California, and parties need to be prepared or risk having claims and defenses swept under and drowned.  https://lnkd.in/gmTNDGqM Philip Favro covers three areas in his latest article: ➡ Background and Key Aspects of CCP §2016.090 Amendments ❔ Open Questions and Practice Tips 💻 How Should Parties Prepare for Initial Disclosures?

We would like to congratulate Sabah Ahmed (UCL LLB '24) on the publication of her piece, “Shifting the Foundations of Fiduciary Liability: How Target Holdings and AIB Group Reconstructed the Doctrine of Equitable Compensation”, on the LSE Law Review Blog! This piece delves into the evolving nature of equitable compensation for commercial trusts through an analysis of Target Holdings Ltd v Redferns and AIB Group v Mark Redler. The article contends that courts have shifted to prioritise upholding the original intentions of commercial agreements over the strict rights of beneficiaries. This article explores the tension between this approach and the traditional substitutive nature of equitable compensation but notes that case law like Various Claimants v Giambrone demonstrates a continued distinction between common law damages and equitable compensation. You can read the piece here: https://lnkd.in/dPpQCWnA

Understanding indemnification isn't just about legal jargon—it's about protecting your business. Jack Horgan's insights help mitigate risks in tech contracts. Essential reading for any savvy professional!

Understanding indemnification isn't just about legal jargon—it's about protecting your business. Jack Horgan's insights help mitigate risks in tech contracts. Essential reading for any savvy professional!

If you have an LLC or corporation in California, all of your business might soon be public... If it makes it past the State Assembly, SB 1201 will require LLCs and corporations to publicly disclose their beneficial owners (including names and addresses) in their bi-annual filing of their statements of information. #SecondActing #realestate #retail #commercialrealestate #retailrealestate #industrialrealestate #multifamily #LosAngeles