U.S. Virgin Islands law & politics
Litigators love to hedge their bets. It is my experience that most litigators are loathe to concede any issue, no matter how tendentious, either for fear of or in the hope that the issue might be useful somewhere down the road.
Continue Reading Twombly and Iqbal: Good for Affirmative Defenses, Too?
Discussing your estate plan with heirs can be a very difficult conversation to have, but no matter how uncomfortable it may be, it can be quite effective in reducing potential conflicts among family members and make sure your heirs understand the choices you have made. If your children will not receive equal amounts of inheritance, it would be helpful to explain why. Maybe you previously helped one child buy a house, so the other is receiving a larger percentage of your estate. Maybe one child will require medical care, so you wish to make sure they are taken care of into the future.
CNN recently ran an article titled “Divorce attorneys catching cheaters on Facebook”, in which it featured several attorneys across the nation who have used information posted on Facebook to discredit a party and win their case. In one divorce case, the wife claimed her alcoholic husband was drinking again, but the husband denied it. Then a mutual friend of the couple found Facebook photos of the husband drinking beer at a party a few weeks earlier. The wife’s attorney presented the photos in Court, and the wife won the case. In another case, after the wife had been blocked from her husband’s Facebook page, she found the profile page of another woman with whom she suspected her husband having an affair. On that woman’s profile page, a public album of photos taken on a romantic getaway with her husband appeared.
Continue Reading Beware of Facebook Evidence Being Used Against You
With the ever increasing liability for injury to guests being imputed to the hotel or restaurant when in fact the injury stems from the actions of a third party vendor being utilized by the hotel or restaurant, it is important to carefully consider who is being hired to perform work at your establishment. Below are twelve items to bear in mind when selecting a vendor.
The Third Circuit Court of Appeals which includes the U.S. Virgin Islands, has affirmed the dismissal of class action claims against cell phone manufacturers and retailers of wireless handheld telephones alleging they are unsafe to use without headsets because holding the antennas next to the head purportedly exposes the user to dangerous levels of radio frequency (RF) radiation. Farina v. Nokia, Inc., No. 08-4034 (3d Cir., decided October 22, 2010).
Continue Reading Third Circuit Rules Cell Phone RF Litigation Federally Preempted
The Federal Communications Commission (FCC) has proposed new rules that would require cell phone providers to provide usage alerts and related information to assist consumers in avoiding unexpected charges on their bills. The proposed rules would give consumers alerts, tools, and information to assist them in making decisions about their cell phone plans.
The FCC stated that cell phone “bill shock” is a growing concern for consumers. According to an April-May 2010 FCC survey, 30 million Americans, one in six cell phone users, have experienced “bill shock.” The FCC is proposing rules that would require cell phone companies to provide consumers with simple alerts both before and when they incur overages. The FCC proposes that consumers be provided with basic information that would allow them to control their cell phone costs.
The Virgin Islands Bureau of Internal Revenue has implemented a 90 day gross receipts tax amnesty program. The waiver of penalties and interest for failure to timely file territorial gross receipts taxes was granted as a result of Act No. 7233 which was signed into law by Governor John P. deJongh, Jr. on October 26, 2010.
Daniel J. Gravel, Chair of BoltNagi’s Corporate, Tax and Estate Planning Practice Group said that "taxpayers who file and pay their delinquent gross receipts taxes before the January 25, 2011 deadline will be exempt from the payment of penalties and interest for the late filing." Gravel further noted, "Unlike previous amnesty programs that were enacted, all delinquent gross receipts taxes are eligible for the current amnesty program. It is an outstanding value to Virgin Islands taxpayers."
Virgin Islands landlords receving $600 or more annually in rent from real estate will be required to file Form VI-1099 with the Virgin Islands Bureau of Internal Revenue (BIR) and with their tenants. They will also have to send Form VI-1099’s to the BIR for all service providers such as plumbers, electricians, handymen, accountants, etc. for rental property services provided to the landlord for payments of $600 or more. To ensure compliance, the BIR may levy penalties of $50 for each failed to file Form VI-1099 or with the tenant or service provider. These penalties are capped at $100,000 or $250,000 depending on the delinquency.
Designed to close the tax gap, this new legislation was passed to ensure that income paid to contractors gets reported accurately and deductions for work and improvements or rental properties can be verified by the VI-1099 form. While this new reporting requirement will not impact rental properties held out as a trade or business (owning multiple properties and a full-time business) since they are already covered, it will affect smaller, “mom and pop” landlords, who typically are not armed with accountants to track contractors, verify deductions and report taxes. This will also create a new burden for small real estate operations.
On September 29, the U.S. Congress voted to extend higher loan limits for government-backed mortgages in the U.S. Virgin Islands and other high cost areas, a move that should help keep borrowing costs low and support the housing sector.
At the height of the financial crisis in 2008, the government raised the ceiling on the size of loans Fannie Mae and Freddie Mac could buy. At the time, the private market for so-called jumbo loans had all but dried up.
The legislation approved by the House of Representatives and Senate, which President Barack Obama is expected to sign into law, would keep in place until September 30, 2011 the higher $729,750 ceiling for single-family home mortgages in high cost areas such as the U.S. Virgin Islands.
Continue Reading Congress Extends Higher Loan Limits for VI Fed Backed Mortgages
In today’s economic climate, homeowners in default on their note and mortgage obligations may believe that foreclosure is inevitable. However, a deed in lieu of foreclosure is an alternative that homeowners facing foreclosure should consider.
Continue Reading The A,B,C’s of Deeds In Lieu of Foreclosure
