Time and Exposure to Liability Discourage Board Membership

I'm not sure it qualifies as "news" anymore that there is a growing reluctance to sit on corporate boards in the current climate, but there is an interesting article discussing the problem in today's WSJ -- More CEO's Say "No Thanks" to Board Seats -- by Anita Raghavan at B1. The articles notes that exposure to liability creates reluctance, but also emphasizes that a major problem for executives asked to serve is that the required time investment is growing in an era where free time is increasingly scarce.

Contingent Fee = Income to the Person Who Pays It!

The Supreme Court held yesterday that the contingent attorney's fee paid by a successful litigant is included as part of the litigant's "income" from the recovery. Commissioner of Internal Revenue v. Banks, Docket Nos. 03-892 & 03-907 (consolidated) (January 24, 2005).

Deducting the fee did the taxpayer no good because of the alternative minimum tax. The Court stated in dicta at the end that "the American Jobs Creation Act redresses the concern for many, perhaps most, claims governed by fee-shifting statutes."

The Court overruled both the Sixth and Ninth Circuits in reaching this result. Seems like a monumental screwing to me.

Aligning the Corporation for Diversity Purposes in a Derivative Action

Interesting decision from the First Circuit today, aligning the nominal defendant corporation with the defendants for diversity purposes, thus destroying diversity and requiring dismissal of the Complaint. Gabriel v. Preble, No. 04-1744 (1st Cir. January 19, 2005).

Good News for Massachusetts Business Litigation Community

Mass. Lawyers Weekly reported Monday that Allan Van Gestel will likely stay on as one of the two judges in the Business Litigation Session of the Massachusetts Superior Court. Van Gestel is approaching "mandatory" retirement age, but a panel has recommended that he be "recalled," and he has indicated he is willing to continue to serve. The recall still has to "go through proper procedural channels."

My firm tracks reported decisions of the Business Litigation Session through a quarterly publication, Session Watch.

New Digs for the New Year

My firm has successfully moved its Burlington office to a new location. A major ordeal to be sure, but we seem to have our feet under us. The Burlington office will now be located at:

8 New England Executive Park, Suite 310
Burlington, MA 01803
Main Number: 781-359-9000
Fax: 781-359-9001