GKG Law Achieves Successful Result in Construction Litigation Arbitration

Posted on April 25, 2019May 28, 2019 by admin

GKG Law recently successfully represented a mechanical and plumbing subcontractor in arbitration in which a general contractor alleged defects in the subcontractor’s performance of work performed on a brewery. The contractor sought in excess of $200,000 in damages plus attorneys’ fees in the arbitration. GKG filed a counterclaim seeking recovery of the unpaid balance under the subcontract of over $200,000. GKG utilized a team of construction professionals and an expert Professional Engineer as witnesses to establish that the subcontractor had fully performed under the subcontract and that the allegations of faulty workmanship were baseless. Following a week-long arbitration, the arbitrator awarded the subcontractor damages of $200,000 plus interest (and awarded nothing to the contractor). Brendan Collins and Kristine Little handled the matter for GKG Law.

Please contact us if you have construction related litigation (or other potential litigation) issues. Brendan Collins may be reached by telephone at (202) 342-6793 or by email at bcollins@gkglaw.com; Kristine Little may be contacted at (202) 342-6751 or by email at klittle@gkglaw.com.

U.S. Supreme Court Grants Petition for Certiorari in Oil Spill Case in which GKG Law Filed Amicus Brief Requesting Certiorari Be Granted

Posted on April 24, 2019July 19, 2019 by admin

On April 22, 2019, the U.S. Supreme Court (SCOTUS) granted certiorari in a case involving over $143 million in oil spill cleanup costs incurred when a submerged anchor pierced a tanker as it approached a New Jersey refinery. The Supreme Court will address a split among the federal circuits over the applicable standard of care terminal owners assume regarding vessel operators’ ability to safely unload cargo when entering into a form of maritime contract containing what are known as “safe berth” clauses.

The decision to take up the case follows the filing of an amicus brief in favor of the petition for certiorari that GKG Law submitted on behalf of the American Fuels & Petrochemical Manufacturers Association (AFPMA) and the International Liquid Terminals Association (ILTA). AFPMA and ILTA have members who are stakeholders in the maritime transportation, storage and oil refining, and petrochemical industries. The primary issue raised in the petition, and in GKG’s amicus brief, was the Third Circuit’s decision in Frescati v. CARCO holding a charterer (or shipper) strictly liable for damages arising under a charter party agreement (a form of maritime contract involving the marine transport of goods). The Supreme Court’s decision on the merits should resolve a split among the circuits as to how to interpret safe berth clause in charter agreements.

More information on this matter and GKG Law’s amicus brief can be found here.

GKG Law’s Ed Greenberg Speaks at the 46th NCBFAA Annual Conference

Posted on April 16, 2019May 6, 2019 by admin

GKG Law's Ed Greenberg will speak at the 46th NCBFAA Annual Conference on April 16, 2019, in San Antonio, TX. Ed's session "Transportation Update" will discuss ways to make a solid step to success with transportation services, covering topics such as the ease of use of NRAs, Low Sulfur Fuel impact, changes to TSA, and California Drayage Law. NCBFAA's transportation leadership will highlight these important areas in open forum to offer support of that step with additional knowledge.

More information on the NCBFAA Annual Conference can be found here.

IRS Record Keeping Requirements – Best Practices for Business Aircraft Owners

Posted on April 9, 2019May 9, 2019 by admin

As the April 15 individual income tax return filing deadline approaches, it is important to think of ongoing requirements regarding recordkeeping to support any business related deductions claimed on your tax return including those relating to aircraft ownership and operations. As is the case with the governance of any operating business, owners of business aircraft must maintain adequate records to support the deductions claimed with respect to such aircraft. Furthermore, the records must be retained for a sufficient amount of time in the event they are needed in connection with an income tax audit.

As a general rule, business aircraft owners should retain tax records for a minimum of six years following the date that the owner files the income tax return to which those records relate. Normally, the typical limitations period prohibits the IRS from challenging the contents of a tax return more than three years after it is filed. However, in certain instances, such as where income is understated by a substantial amount, this time period can be expanded to six years. There are exceptions to these general rules, such as where a taxpayer engages in fraud or fails to file a tax return. In those situations, there is no applicable statute of limitations. Assuming that those exceptions do not apply, following the general six-year rule should be adequate.

Additional Rules of Thumb

In addition to these “rule of thumb” recommendations, business aircraft owners should keep all records relating to an aircraft, including those pertaining to the purchase and sale of the aircraft, until six years after the owner sells or otherwise disposes of the property. The purpose for such retention is to ensure that the owner can support the amount of any gain or loss reported as a result of the sale of its aircraft and any concomitant tax basis adjustments to the aircraft that affect the amount of such gain or loss.

Business aircraft owners also face certain unique tax record keeping requirements. For example, they must create and retain records relating to SIFL (Standard Industry Fare Level) income inclusion amounts and personal loss deduction limitations. (SIFL is an amount specified by the federal government to determine the value of personal travel on the company aircraft.)

These records include items that must be created contemporaneously with the flights to which they relate. If a business aircraft owner fails to create such records contemporaneously with the relevant flight, the IRS may have a basis to question or challenge the veracity of the information contained in those records during an audit by, for example, arguing that a business aircraft owner created records merely to support its tax position in an audit.

Records and Management Companies

A business aircraft owner should be able to access flight, financial and tax records relating to ownership and operation of its aircraft. If a business aircraft owner hires a management company to maintain certain records (e.g., flight logs, passenger manifests, flight-related activity and maintenance costs), the owner should ensure that its agreement with the management company gives it the right to access these records as necessary even after the termination of the agreement between the owner and management company. Among the recommended provisions to guarantee access to such records would be a covenant by the management company that it will retain those records for an adequate period of time after their creation.

A business aircraft owner should also ensure that certain records are created in a manner that will enable the owner to effectively utilize them in the event of a tax audit. This is especially true for records that are used as back-up to support SIFL income inclusion amounts and deduction limitations resulting from use of the aircraft for personal purposes and/or entertainment purposes.

Since the process can be complex, a business aircraft owner should consider retaining a qualified aviation tax consultant who has expertise in collecting and organizing the information needed to correctly calculate these items. Seeking legal counsel regarding record keeping will ensure that an owner of business aircraft is well prepared in the event of an IRS audit of the owner’s tax return.

For more information on this topic or other business aviation related tax needs, please contact Chris Younger at cyounger@gkglaw.com.

How Associations Can Address Sexual Harassment in the Post#MeToo Era

Posted on April 4, 2019July 19, 2019 by admin

In this 90-minute webinar hosted by Association TRENDS, GKG Law's Katie Meyer shows associations how to assess sexual harassment risk factors, address incidents and update complaint policies and training before incidents occur.

The #MeToo Movement has increased everyone’s awareness of sexual harassment. Most states are now considering new bills that address sexual harassment in the workplace. These changes will likely affect how an association addresses and prevents sexual harassment within its organization,

Associations should be aware, that, along with having an obligation to prevent sexual harassment in the workplace, they also need to address harassment that occurs at association events and meetings. they must take steps to ensure their staff is not harassed by members, directors, event attendees, donors, vendors, and volunteers.

How must your current policies, complaint procedures, and training change? Find out in this new webinar focused specifically on associations.

Register now for How Associations Can Address Sexual Harassment in the Post #MeToo Era.

GKG Law’s Tom Wilcox Speaks at the National Coal Transportation Association’s 2019 Spring Conference

Posted on April 2, 2019May 6, 2019 by admin

GKG Law's Tom Wilcox will lead a session at the National Coal Transportation Association (NCTA) Spring Conference in San Antonio, TX, April 1 – 3, 2019. More information on this event can be found here.