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In the new year, cryptocurrency bankruptcies will be breaking new ground over the ability to recover customer deposits. An understanding of the ruling in the Bernie Madoff SIPC liquidation could provide guidance for such recoveries. Bankruptcy Code sections 548 (a) and 550 (a) give chapter 11 debtors, appointed trustees and post-confirmation liquidating trustees the power to sue and recover money and other forms of property the debtor sold, loaned, gifted, or otherwise transferred to third parties within two years of…

Is your business ready for Illinois in 2023? With the start of each new year come new employment laws in Illinois. 2023 is no different. Here are three changes to Illinois employment law. State Minimum Wage Increases to $13.00 per hour Illinois is moving slowly towards a $15.00 per hour minimum wage across the state. In Chicago, the minimum wage already exceeds that threshold. For large Chicago businesses employing 21 or more people, the minimum wage for non-tipped employees is…

On October 13, the United States Department of Labor (DOL) published a Notice of Proposed Rulemaking regarding the classification of employees and independent contractors under the Fair Labor Standards Act (FLSA). After President Biden took office, the DOL attempted to rescind and withdraw an independent contractor rule (the 2021 Rule) that had been put in place in the waning days of the Trump Administration. The DOL’s attempts to withdraw the 2021 Rule were stymied by judicial action. Now, the DOL…

Why Estate Planning Awareness Week? In 2008, Congress designated the third week of October (October 17-23, 2022) as National Estate Planning Awareness Week as a reminder to the public of the importance of estate planning. Having a proper estate plan is important to ensure that you and your loved ones are taken care of. When done well, estate planning aims both to allow you to pass on your assets as you see fit, and to minimize the state and federal…

Written by: Rick S. Rein with contributions made by Ben Dockery. “The 2022 Amendments to the Uniform Commercial Code (UCC) update and modernize the UCC to address emerging technologies. A new UCC Article 12 on Controllable Electronic Records governs transactions involving new types of digital assets (such as virtual currencies and nonfungible tokens), and corresponding changes to UCC Article 9 address security interests in digital assets.”[1] A member of the uniform law commission explained that two underlying themes of Article…

In August, California’s Attorney General announced a settlement with Sephora that carried a $1.2 million dollar fine for Sephora’s California Consumer Privacy Act (CCPA) violations. This is the first CCPA action taken by California that resulted in a fine and settlement. It is important to understand what the California Attorney General alleged Sephora did in violation of the CCPA, so that your business does not face a similar scenario. The CCPA In June of 2018, the CCPA was signed into…

By Jordan M. Goodman and Joe Carr, Tax Partner, BDO USA. Please feel free to reach out to the authors with questions.  A new trend in state and local tax reporting in California combines certain income tax and unclaimed property reporting requirements on 2021 and future business income tax returns to enhance compliance. The increased compliance efforts of the California State Controller’s Office (SCO) regarding unclaimed property will likely result in increased audit activity. CA Assembly Bill 466, which became…

In the 2021 Supreme Court term (October 2021 – September 2022), the United States Supreme Court (SCOTUS) issued decisions in 66 cases. With its new conservative majority (J. Roberts, J. Alito, J. Thomas, J. Gorsuch, J. Kavenaugh and J. Barrett), the Court tackled a wide variety of issues ranging from immigration, freedom of religious expression, gun safety to abortion rights. You can read Part I of this article examining the Court’s decisions impacting arbitration and the vaccine mandate here. Part…

In the 2021 Supreme Court term (October 2021 – September 2022), the United States Supreme Court (SCOTUS) issued decisions in 66 cases. With its new conservative majority (J. Roberts, J. Alito, J. Thomas, J. Gorsuch, J. Kavenaugh and J. Barrett), the Court tackled a wide variety of issues ranging from immigration, freedom of religious expression, gun safety to abortion rights. Part I of this article will discuss the Court’s decisions impacting arbitration and the vaccine mandate. Part II will discuss…

Trusts are popular for various reasons to hold assets, and the Nevis International Exempt Trust is indicative of the reason for such popularity as an asset protection device. A settlor looks for a safe and stable jurisdiction to hold assets and to be able to access and control such wealth. Nevis provides such security. As important, settlors consider protection from future creditors who may attack the trust trying to set it aside and gain access to the trust funds. The…

Chicago's amended sexual harassment laws went into effect on July 1, 2022. The ordinance applies to companies employing at least one employee within the city. What you Need to know Under the amended Human Rights Ordinance, Chicago employers must: Maintain a written sexual harassment policy Provide the policy in the employee's primary language to employees within the first calendar week of their employment Post the notice in a conspicuous place in the workplace Provide one hour of mandatory sexual harassment…

Recent decisions from courts in Illinois offer guidance in lending transactions and handling of bank accounts. Amos Financial LLC. v. Szydlowski The Illinois Court of Appeals in the First District recently created precedent with implications for lenders dealing with guarantors and assignees. In Amos Financial LLC. v. Szydlowski, 2022 IL App (1st) 210046-U, the court affirmed the lower court’s decision to hold the guarantor of a note liable to the assignee of a separate note created two years later. This…

On July 1, most Chicago employers face an increase in the Chicago minimum wage. Chicago’s Minimum Wage Ordinance applies to employers who maintain a business facility within the city or who are required to obtain a business license to operate in the city and to employees who work two hours in the city within a two-week period. The ordinance does not apply to employees under 18 years of age, adult employees in their first 90 days of employment, certain disabled…

Effective January 1, 2022, the California Franchise Tax Board (“FTB”) has the authority under Assembly Bill 466 to share information with the State Controller’s Office (“SCO”) relating to a taxpayer’s compliance with the California’s unclaimed property laws. To gather this information, the FTB has added a few questions to California’s business entity tax returns for tax year 2021, including whether the business has previously filed an unclaimed property Holder Remit Report with the SCO, the date the report was filed,…

While cryptocurrencies have increasingly become more mainstream, they are still relegated to the edges of financial systems because they are still not widely accepted as legal tender and are limited to private transactions between individuals online. Cryptocurrencies are global, and bad actors that use them to perpetrate fraud may be located in various jurisdictions around the globe. Not all countries have the framework to freeze and seize crypto assets. This has to be considered when designing plans to recover these…

As cross-border restructurings grow, especially in the wake of the global COVID-19 pandemic, global companies filing for insolvency relief in foreign countries may utilize chapter 15 of the Bankruptcy Code to facilitate the protection of assets located in the U.S. In Chapter 15 proceeding, assistance is available upon recognition of the foreign proceeding under Section 1521 (a) (4) of the Bankruptcy Code to pursue discovery “concerning the debtor’s assets, affairs, rights, obligations, or liabilities.” In a recent matter, In re…

The Supreme Court of Canada in H.M.B. Holdings Ltd. v. Antigua and Barbuda, recently considered whether foreign judgment creditors can seize assets in Canada when the party does not have an actual presence in Canada. There, the connection in British Columbia (B.C.) contracted with businesses in B.C. that were to pay a finder’s fee to the judgment debtor. The judgment creditor sought to enforce the judgment under Ontario’s Reciprocal Enforcement of Judgments Act (REJA). The REJA prevents the enforcement of…

On August 13, 2021, Illinois Governor J.B. Pritzker signed into law an amendment to the Illinois Freedom to Work Act, which will impact the enforceability of some non-competition and non-solicitation restrictive covenants in Illinois. Although the new law will not impact all restrictive covenants in Illinois (the amendment excludes from its scope restrictive covenants entered into ancillary to the sale of a business, for example), anyone who requires employees to sign non-compete or non-solicitation clauses should carefully review their form…

This overview is offered to provide a structured analysis of how enforcement measures can be implemented in civil law jurisdictions such as France and common law jurisdictions such as the UK and Germany. Creditors need to adapt their approach given the options provided by local law for recovering a debt and assets. The conditions for application of interim collection measures differs by jurisdiction. In French civil law, protective interim measures are permitted before a judgment is rendered. Creditors may apply…

As we move into harvest season, we here at Cover Your SaaS (CYS) have cultivated a fresh crop of updates for your enjoyment. Keen observers will note that there has been a somewhat larger gap than usual between newsletters and we admit, it has been a minute. Of course, absence makes the heart grow fonder so we are excited to provide you with the cloud computing and digital product SALT developments that your hearts have been pining for during the…

The Letter of Request Procedure is the main means of evidence gathering under the Hague Convention. This process begins with a request made to the U.S. court where the action is pending to issue a letter of request seeking the production of specified documents or the taking of testimony from a particular witness. The court transmits the letter of request to the Central Authority, a governmental agency responsible for receiving and overseeing execution of letters of request, which then transmits…

In 1998, The U.S. Supreme Court in Grupo Mexicano de Desarrollo S.A. v. Alliance Bond Fund, 527 U.S. 308, held that the District Court had no authority to issue a preliminary injunction preventing petitioners from disposing of assets pending adjudication of the respondents’ contract claim for money damages. Subsequently, courts have interpreted Grupo to carve out exceptions for equitable actions and legal claims with specific statutory authority for injunctive relief. The Delaware Bankruptcy Court in Urban Commons Queensway, LLC v.…

On August 30, 2021, the Second Circuit decided in Irving Picard, trustee for the Liquidation of Bernard L. Madoff Investment Securities, LLC v. Citibank N.A., 20-1334, on “appeals of the latest installment in the long-running litigation arising from Bernard Madoff’s Ponzi scheme” whether the District Court properly dismissed actions brought against initial and subsequent transferees, to avoid and recover transfers, inter alia, under Sections 548 and 550 of the Bankruptcy Code. Section 548 (a) (1) permits a trustee to “avoid”…

With the recent rise in popularity of special purpose acquisition companies (“SPACs”), expect an uptick in SPAC related litigation to follow. SPAC’s are referred to as “blank check” companies because they are shell companies formed by a sponsor group to raise funds in an initial public offering (“IPO”) for the purpose of acquiring a yet-to-be-identified privately held target company. After the IPO, the SPAC has a specified period of time – often two years – to identify and combine with…

On July 7, 2021, Colorado’s Governor, Jared Polis, signed the Colorado Privacy Act (“CPA”) into law.  Colorado is the third U.S. state to enact a comprehensive privacy law, following the previous enactment of the California Consumer Privacy Act (“CCPA”) and the Virginia Data Privacy Act (“CDPA”). Though the CPA will not become effective until July 2023, it is critical for businesses to evaluate their current privacy frameworks, and whether they will be sufficient to meet the extended requirements under the…

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