• The Rent Demand Revisited: Strict Construction and Harsh Results

    It cannot be debated that making or serving a proper rent demand under RPAPL § 711(2) is a necessary precondition to the commencement of a nonpayment proceeding. It is common practice, indeed I suspect it would not be an exaggeration to say it happens every day in every landlord/tenant court, for a landlord to make or serve a rent demand and then commence a nonpayment proceeding seeking to recover not only the rent and additional rent demanded, but also rent that accrued after the demand. Judge Arlene P. Bluth in RCPI Landmark v. Chasm Lake Management Services, LLC, (56557/11 NYLJ 1202494916664, ...

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    Saturday, September 10th, 2011

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  • Tax Deadlines for 2010 Deaths? IRS Finally Issues Guidance

    On August 5, 2011, the IRS finally published some guidance for executors of estates of people who died in 2010. Notice 2011-66 explains how these executors can opt-out of the estate tax, and Revenue Procedure 2011-41 explains the special tax rules that apply to assets when executors opt-out of the estate tax. The estate tax and the Generation-Skipping Transfer (GST) tax were repealed on January 1, 2010; but on December 17, 2010, President Obama signed a law that reinstated them retroactive to January 1, 2010. This law gave people who died in 2010 a special tax break: executors of 2010 decedents can opt-out of the default ...

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    Wednesday, September 07th, 2011

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  • Understanding the Rules of Inherited IRAs

    Do you want to hand your heirs big tax problems? Would you like to hand the IRS a sizable chunk of your inheritance? Probably not. But if you misunderstand the rules when it comes to inherited IRAs, you just might. Here are some mistakes that IRA owners and IRA heirs often make. Many clients think that a will or a trust can facilitate the transfer of IRA assets. IRAs don’t pass to heirs through wills or trusts (a few rare exceptions aside). The beneficiary form takes precedence. This is a form the IRA owner filled out and signed when opening the account.Problems ...

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    Wednesday, July 20th, 2011

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  • NYPMIFA: Important Changes to Laws Governing Not-For-Profit Organizations

    On September 17th 2010, New York State enacted the New York Prudent Management of Institutional Funds Act (NYPMIFA) which significantly changes the rules governing how notfor-profit organizations manage, invest and spend their endowment funds. The Act applies to all public charitable organizations, private foundations and practically every corporation formed under the New York Not-For-Profit Corporation Law. The new law provides institutions with more flexibility in spending from endowment funds giving them greater access to funds needed to support their programs and services that may be struggling due to the recent economic downturn. NYPMIFA eliminates the historic dollar value limitation on spending, ...

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    Monday, July 11th, 2011

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  • Smoking and Second-Hand Smoke Intrusion

    Two recent cases address issues that arose when a tenant’s smoking and the resulting intrusion of second-hand smoke into a neighboring tenant’s apartment created objectionable living conditions. In Upper East Lease Associates, LLC v. Cannon, 30 Misc.3d 1213(A), 924 N.Y.S.2d 312 (2011, Dist. Ct., Nassau Co.; Ciaffa, J.) the Court held that landlords of “high-rise apartment” buildings have a “duty to prevent one tenant’s habits from materially interfering with another tenant’s right to quiet enjoyment. When a tenant’s smoking results in an intrusion of second-hand smoke into another tenant’s apartment, and that tenant complains repeatedly, the landlord runs a financial risk ...

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    Sunday, July 10th, 2011

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  • New York State Wage Theft Prevention Act Notice Templates

    As we informed you in our April 2011 newsletter, the New York Wage Theft Prevention Act (WTPA) was enacted December 2010 and became effective on April 9, 2011. As a reminder, among other new employer obligations and penalties, the WTPA requires that employers provide to all their employees written notice of their pay rate and pay dates, at the time of hire, on or before February 1 of each year, as well as every time there is a change in the employee’s pay. Employers must obtain signed acknowledgement of receipt of this notice from each employee. To assist New York employers ...

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    Saturday, June 11th, 2011

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  • New Supervisory Standard by SEC Increases Risk for Corporate Counsel

    On September 8, 2010, a decision by a U.S. Securities and Exchange Commission administrative law judge in In the Matter of Theodore W.Urban, 2010 WL 3500928 (SEC Release No. 43-31655, Sept 8, 2010) cleared Urban, former General Counsel and Executive Vice President of Ferris, Baker Watts, Inc., of all charges of failing to reasonably supervise broker Stephen Glantz. While the good news for Urban is that his supervision was found to be reasonable, the bad news for in-house legal and compliance personnel is that Urban was found to be a supervisor at all. The administrative law judge (ALJ) deemed that ...

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    Saturday, June 11th, 2011

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  • New Higher Standard for Accredited Investors in Private Offerings

    Amendment to Accredited Investor Standard The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) approved by Congress last year significantly narrowed the definition of “accredited investor,” a standard for investors to participate in certain private offerings of securities. Prior to the enactment of the Act, an individual accredited investor could include the value of his/her primary residence in $1,000,000 net worth requirement for accredited investors. After passage, the value of one’s primary residence is no longer included in the calculation of net worth. Accordingly, many individuals who relied on the value in their homes to meet the ...

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    Saturday, June 11th, 2011

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  • Inadvertent Creation of Month-to-Month Tenancy

    In its recent decision in Islands Heritage Realty Corp. v. Joseph, LT-002642-10, NYLJ 1202492662252, at *1 (Dist., NA, Decided April 28, 2011), Judge Scott Fairgrieve, in deciding a motion brought on by order to show cause to vacate a judgment of possession and warrant of eviction, determined that a month-to-month tenancy had been created by the parties’ conduct after they executed a settlement stipulation, even though the tenant agreed to vacate the demised premises no later than September 30, 2010. Shortly before the day tenant agreed to vacate, Landlord’s agent signed an agreement dated September 9, 2010 that provided: This 9 September ...

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    Friday, June 10th, 2011

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  • New ADA Employment Regulations Finalized Effective May 24, 2011

    The Equal Employment Opportunity Commission “EEOC” issued its final revised Americans with Disabilities Act “ADA” regulations and accompanying interpretive guidance, the ADA Amendments Act “ADAAA”, which will become effective on May 24, 2011. The expanded regulations were designed to simplify the determination as to when employees qualify as disabled. The Amendments Act retains the ADA’s basic definition of “disability” as an impairment that substantially limits one or more major life activities, a record of such an impairment, or being regarded as having such an impairment. However, it changes the way that these statutory terms should be interpreted in several ways, therefore ...

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    Monday, April 11th, 2011

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Fred Eisenbud