McDowell Rice Smith & Buchanan is pleased to announce that Rebecca Martin has been named the 2019 President of the Business Law Section of the Kansas City Metropolitan Bar Association.  Ms. Martin will also serve as a Member of the Board of Directors during 2019. 

McDowell Rice Smith & Buchanan congratulates Ania Moncrief for completing the 2018 KCMBA Bar Leadership
Academy Program and becoming a graduate of the Academy’s most recent graduating class. The Bar Leadership Academy is a selective program designed to help emerging leaders of the legal profession in Kansas City develop the skills, knowledge, and experience needed to become leaders in both the profession and the community. During this seven-month program, Ms. Moncrief participated, along with a select group of new attorneys in Kansas City, in seven interactive leadership training sessions featuring prominent speakers, instructors, and  discussion facilitators. Participants also completed a CLE presentation and a group project.  We proudly congratulate Ms. Moncrief on this prestigious accomplishment.

KANSAS CITY, Missouri (January 23, 2019) – At its 2019 Annual Meeting, McDowell Rice Smith & Buchanan, PC, announced the re-election of R. Pete Smith as Chairman of the Board of Directors.  Also re-elected were Thomas R. Buchanan and Greg T. Spies.

It was also announced at the Firm’s annual meeting that Thomas R. Buchanan will serve as the Firm’s General Counsel in 2019. Ronald S. Bronstein will continue to serve as the Firm’s Vice President/Treasurer/Assistant Secretary.

Lender floor planned an auto dealer in New York. Dealer sold cars out of trust and diverted $1.2 million of vehicle proceeds to personal use. Floor Plan Lender, represented by Gorman, sued Dealer in New York Federal Court for Replevin and Breach of Contract, and sued Dealer’s Guarantors for Breach of Contract.

Dealer filed bankruptcy, and the Federal Court lawsuit continued against the Guarantors. Before taking any discovery, Floor Plan Lender filed a Summary Judgment Motion against the Guarantors, based only on Lender’s own records and affidavit. Guarantors resisted, challenging the accuracy of Lender’s evidence.

The Federal Court granted Floor Plan Lender’s Summary Judgment Motion, and entered a $1.2 million judgment against Guarantors. In so doing, the Court found that Guarantors’ challenge to the accuracy of Floor Plan Lender’s evidence failed to create a genuine issue of material fact so as to preclude Summary Judgment.

Congratulations to the following McDowell Rice Smith & Buchanan lawyers who have been selected to the 2018 Missouri & Kansas Super Lawyers® and Rising Stars® Lists in their primary practice area.  The announcement will appear in the 2018 Super Lawyers® Magazine for Missouri & Kansas, published November 14, 2018. 

Super Lawyers® List:
Thomas R. Buchanan – Business Litigation
Susan Saper Galamba – Family Law
Michael J. Gorman – Business Litigation
R. Pete Smith – Business Litigation
Greg T. Spies – Business Litigation

Rising Stars® List:
David A. Jack – Business Litigation

After eighteen months of highly contested litigation, McDowell Rice successfully obtained a settlement in excess of one million dollars for its client in a non-compete and defamation case against former employees who started a competing business.  McDowell Rice immediately obtained injunctive relief for its client, barring the former employees from continuing to contact the clients' customers.  Despite the former employees claiming no involvement in creating the new business or soliciting customers, McDowell Rice relentlessly pursued electronic communications by the former employees to establish their liability.  Before the close of discovery, the former employees agreed to enter a 537.065 settlement  by which they agreed to sign new extended non-compete agreements, agreed to a more cost-effective arbitration, and allowed McDowell Rice's client to pursue collection of any damages awarded at arbitration from their insurer.  Prior to the arbitration, the insurer agreed to pay a settlement in excess of one million dollars.  Patrick C. Guinness was lead counsel, with Jason L. Buchanan and Thomas R. Buchanan assisting in obtaining this favorable result.

By R.Pete Smith:

https://ingrams.com/article/the-role-of-the-accountant-in-the-divorce-process/

On April 5, 2018 after a one-year highly contested post dissolution matter, the Circuit Court of Jackson County, Missouri granted McDowell Rice’s Motion for Judgment on the Pleadings. On the eve of the one-year deadline, Petitioner sought to set aside the Judgment and Decree of Dissolution of Marriage which incorporated an agreed Separation and Property Settlement Agreement on the basis of fraud. Petitioner sought an extra six million dollars in addition to the settlement she had already received. Petitioner sought to discredit the firm’s client by aggressively and relentlessly pursuing confidential, privileged, and irrelevant discovery from third-party sources. The case moved into a unique procedural posture as the firm’s client passed away during litigation. McDowell Rice successfully argued that the Court lacked subject matter jurisdiction in the case, and even if the Court granted Petitioner’s Motion to Set Aside, the Court could not grant the relief requested. R. Pete Smith was lead counsel.

Congratulations to Rebecca D. Martin on her election as President-Elect of the Business Law Section.

KCMBA’s Business Law Section encompasses a variety of committees that are dedicated to addressing issues and topics relevant to the practice of certain specific areas of business law including Business Law (Corporate Law), Construction Law, Corporate House Counsel, Environment and Energy Law, Media Law, Patent/Trademark/Copyright, Real Estate Law, Securities, and Tax Law.

By Rebecca D. Martin

The Internal Revenue Service is now authorized under Section 7345 of the Internal Revenue Code to certify seriously delinquent tax debt to the State Department for action with respect to denial, revocation, or limitation of a passport.  
Seriously delinquent tax debt is an individual’s unpaid, legally enforceable tax debt totaling more than $50,000 for which a notice of federal tax lien has been filed and administrative remedies have lapsed or been exhausted or a levy has been issued.
The authorized certification will not include otherwise seriously delinquent tax debt which is being paid in a timely manner under an approved installment agreement with the IRS, being paid in a timely manner under an offer in compromise accepted by the IRS or a settlement agreement entered with the Justice Department, for which a timely collection due process hearing is requested in connection with a levy to collect the debt, or for which collection is suspended because of a request for innocent spouse relief has been made.
While an individual is serving in an area designated as a combat zone or participating in a contingency operation, certification will be postponed.
The State Department will hold a passport application for 90 days to allow the taxpayer to resolve any erroneous certifications issues, fully pay the tax debt, or enter into a satisfactory payment alternative with the IRS.
The IRS is required to notify a taxpayer at the time the seriously delinquent tax debt is certified to the State Department.
A taxpayer cannot obtain a reversal of certification merely by paying the debt below $50,000.00. Reversals of certification require an installment agreement approved by the IRS, the acceptance of an Offer in Compromise by the IRS, an approved settlement agreement with the Justice Department, suspended collection because of requested innocent spouse relief, or a timely request for a collection due process hearing is made with respect to a levy to collect the debt.
The U.S. Tax Court has the jurisdiction to determine whether the certification is erroneous or the IRS failed to reverse certification when required to do so.  
If you have questions regarding the revocation or denial of a passport because of a seriously delinquent debt, please contact Rebecca.