Missouri recently adopted a tax amnesty program that runs from September 1, 2015 to November 30, 2015. The program offers relief from the assessment or payment of all penalties, additions to tax, and interest with respect to unpaid Missouri taxes.  The amnesty applies only to tax liabilities due but unpaid on or before December 31, 2014. Missouri taxpayers under civil or criminal investigation for tax-related reasons are not eligible. To take advantage of the amnesty program, taxpayers must apply for amnesty, pay the taxes in full within the amnesty period, and agree to comply with Missouri tax laws for the next eight years from the date of the agreement.

Although the Missouri Department of Revenue has an offer in compromise program, the offer program has not been effectively administered to resolve Missouri tax liabilities based upon a hardship or inability to pay the full amount of the taxes, interest and penalties.  The tax amnesty program creates a small window of opportunity to compromise Missouri delinquencies for the payment of tax only.

Combining the Missouri amnesty program with the IRS “Fresh Start” initiatives and more favorable financial analysis in the IRS offer in compromise program can turn an otherwise hopeless situation of threatened and actual tax enforcement by both the State and the IRS into bright light at the end of the tunnel.  When the IRS grants an offer in compromise and the payments due under the offer are paid, the IRS releases any federal tax liens and the taxpayer must stay compliant for 5 years.  On March 25, 2015, the IRS Acting Director of Collection Policy issued interim guidance that notices of federal tax lien can actually be withdrawn, not just released, after payment of the accepted offer amount.  Withdrawal of the notice of federal tax lien removes it from public record and has the impact of restoring much of the damage the notice of federal tax lien did to a taxpayer’s credit rating.  Participation in the Missouri amnesty program will result in releases of the state tax liens, even though not as effective as a withdrawal, will improve the credit rating especially if combined with the withdrawal of the notice of federal tax lien.         

A commercial aircraft parts supplier was sued in federal court by a Florida-based aircraft parts broker concerning an allegedly defective aircraft auxiliary power unit purchased for a Mexican airline.   The broker sought recovery for breach of contract, and also brought various tort claims against the supplier, including allegations of negligent and fraudulent misrepresentation, and a claim under the Florida Deceptive and Unfair Trade Practices Act. The broker claimed damages in excess of $600,000, plus statutory penalties, punitive damages and recovery of attorneys’ fees. 

On behalf of the supplier, Smith and other Mcdowell Rice attorneys filed a Motion to Dismiss contending that Missouri’s Economic Loss Doctrine bars the brokers negligence and fraud based claims.  They also sought dismissal of the statutory consumer protection claim arguing that the Florida statute has no applicability to a transaction occurring outside the state of Florida, and a similar claim under Missouri’s Merchandising Practices Act would fail as this was a commercial, not consumer transaction.  The Court agreed, granting the Motion to Dismiss in its entirety, without leave to amend.

Bank was sued in 2011 by a former commercial account holder whose bookkeeper had forged checks totaling over $90,000.  The account holder sought to hold the bank liable for a breach of duty under Article 4 of the UCC and for negligence and demanded over $150,000 in liability.  In July of 2014, Rob Maher and Kristie Orme replaced former counsel for the bank.  After some limited discovery, a Motion for Summary Judgment was filed on behalf of the bank against its former account holder in late 2014.

The bank argued that the account holder’s claims failed as a matter of law because the account holder had an obligation to inspect its monthly bank statements and report unauthorized signatures to the bank within the time limits required by both the UCC and the account agreement.  Mr. Maher and Ms. Orme argued that the account holder had failed to timely meet its obligations under the UCC and the account agreement.      

Based on the law cited in the dispositive motion and the factual presentation put together by the two McDowell Rice attorneys, the plaintiff account holder agreed to dismiss the lawsuit with prejudice.  The bank made no payment to the plaintiff and the lawsuit was dismissed with prejudice.

Client, while represented by others, saw millions of dollars in real estate foreclosed and suffered a multi-million dollar summary judgment entered against him and his LLCs in favor of Creditor.  While Client appealed, he separately retained Jonathan Margoliesand Mike Gorman to attempt a settlement with judgment Creditor, along with reacquisition of the real estate at issue.

Mr. Margolies and Mr. Gorman approached judgment Creditor, provided full disclosure of Client’s financial situation, and after several weeks of negotiation, obtained for Client a settlement totaling roughly 50% of the judgment. As part of the bargain, Client reacquired the previously foreclosed real estate. 

Jonathan Margolies: “Full disclosure was the key. In these situations, open and honest communication about financial realities goes a long way.”

Mike Gorman: “It was a good deal for both sides. Our client is now back in business, and the judgment Creditor avoided liquidating the real estate.”

At its 2015 Annual Meeting, McDowell Rice announced that James F.B. Daniels and Greg T. Spies were elected to the Executive Board, along with the re-election of R. Pete Smith as Chairman, Thomas R. Buchanan as President, and Kristie Remster Orme as General Counsel.

One of McDowell Rice’s favorite annual charities is the Salvation Army's Corporate Angel Tree Program.  Local businesses partner with the Salvation Army to provide requested gifts to Kansas City Area children who would otherwise not have a present under their tree.  We take great joy in helping to make Christmas a happy memory for our Kansas City families in need.

Wishing you a healthy winter season filled with happiness, joy and laughter.

McDowell Rice successfully enforced the Missouri Credit Agreement Statute in a guaranty enforcement action to bar a co-guarantor’s counterclaims for fraudulent misrepresentation, negligent misrepresentation, and breach of contract based on an alleged oral agreement by the bank to limit the co-guarantor’s liability to his proportionate share of the debt. Following the Court’s denial of the co-guarantor’s Motion for Leave to Amend Answer and Counterclaims, denial of the co-guarantor’s Motion for Reconsideration, grant of the bank’s Motions in Limine and grant of the bank’s Motion to Strike Jury Demand, a favorable settlement was reached in favor of the bank. Adam Gasper handled the briefing and Kristie Remster Orme handled the oral arguments before Judge Fahnestock in Jackson County Circuit Court. 

FOR IMMEDIATE RELEASE

KANSAS CITY, Missouri (November 21, 2014) – McDowell Rice Smith & Buchanan PC, announced that Hannah K. Hemry has joined the Firm as an Associate.  

Ms. Hemry is a member of both the Construction & Architect/Engineering Law Group and the Litigation & Dispute Resolution Group. She primarily focuses on business, commercial and construction litigation, representing corporate clients in a variety of legal matters, including commercial disputes, contract claims, employment disputes, and construction defect claims. Ms. Hemry represents both local and national clients in Missouri and Kansas and in various jurisdictions across the country. 

Ms. Hemry obtained her J.D. in 2008 from Saint Louis University School of Law and was Editor of the Saint Louis University Law Journal. She holds a B.S. degree from the University of Denver, graduating  magna cum laude, with honors, and is admitted to both the Missouri and Kansas Bar Associations.


Contact:
Sherry Newsom
snewsom@mcdowellrice.com
(816) 753-5400

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Mike Gorman was a speaker at the Missouri Bankers’ Association 2014 Legal Issues Conference. On October 30, 2014, Gormanspoke about “Forbearance Agreements.”

“Creditors often agree to workouts or loan modifications without getting anything in return from their borrowers. I wanted to remind lenders that a forbearance agreement is their chance to do just that,” Gorman said.

Gorman’s Forbearance Agreement presentation focused on releases, additional collateral controls, Missouri Credit Agreement Statute of Frauds and ECOA Defenses, and bankruptcy-related provisions, among other issues. Attendees received a form forbearance agreement and a slide show covering the main points of Gorman’s presentation.

If you would like to receive a copy of the slideshow, please contact Mike Gorman at mgorman@mcdowellrice.com.

Congratulations to the following attorneys who have been selected to the 2014 Missouri & Kansas Super Lawyers® List and Rising Stars® List in their primary practice area and are featured in the 2014 Super Lawyers® Magazine for Missouri & Kansas.

2014 Missouri & Kansas Super Lawyers® List:

R. Pete Smith - Business Litigation
Thomas R. Buchanan - Construction Litigation
Kristie Remster Orme - Business Litigation
Louis J. Wade - Bankruptcy
Michael J. Gorman - Business Litigation
Jonathan A. Margolies - Bankruptcy: Business
Greg T. Spies - Business Litigation

Rising Stars® List:

Tiffany A. McFarland - Family Law