Announcing a Special Public Seminar on Bankruptcy

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Bankruptcy Basics: a primer for the public
Moderated by Richard A. Klass

October 19, 2010
6 – 8 pm

Brooklyn Bar Association Meeting Hall
123 Remsen Street, Brooklyn Heights, New York

Topics will include:

  1. Overview of the Bankruptcy Process
  2. Differences between Chapter 7 (Liquidation) and Chapter 13 (Reorganization)
  3. What to Expect at the Meeting of Creditors
  4. The Automatic Stay: the Bankruptcy Law’s “Stop Sign”
  5. Discharging Debts (and what is not dischargeable)
  6. Questions and Answers

Moderator:
Richard A. Klass

Speakers:
Hon. Elizabeth S. Stong
U.S. Bankruptcy Court, Eastern District of New York

David J. Doyaga, Sr.
Doyaga & Schaefer

Mary Fox
Pro Se Bankruptcy Law Clerk
U.S. Bankruptcy Court, Eastern District of New York

Light refreshments will be served.

To reserve a seat and for more information,
please contact:
Avery Eli Okin, Esq., CAE
E-mail: aokin@brooklynbar.orgcreate new email
Phone: (718) 624-0675

Directions:
By Subway:
2, 3, 4 or 5 to Borough Hall
A, C or F to Jay Street
M or R to Court Street

This program is a joint presentation of:
The Brooklyn Bar Association, The Brooklyn Bar Association Foundation, Inc., The Brooklyn Bar Association Volunteer Lawyers Project, Inc., and the Brooklyn Bar Association Lawyer Referral Service.

This program does not provide CLE credit.

copyr. 2010 Richard A. Klass, Esq.
The firm’s website: www.CourtStreetLaw.com
Prior results do not guarantee a similar outcome.

Richard A. Klass, Esq., maintains a law firm engaged in civil litigation at 16 Court Street, 28th Floor, Brooklyn Heights, New York.
He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.com with any questions.
Prior results do not guarantee a similar outcome.

The Significance of “ECF” [Electronic Case Filing] in the Courts

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The above headline seems a strange topic for this blog. It does not address a particular area of law, or seem to relate to most people other than lawyers. However, this is not so, and is an important development of which the general public should be aware.

Only until a couple of years ago, the “modus operandi” of various activities relating to a court case, ranging from filing the initial papers to researching archived files, was to make a trip to the actual courthouse. That traditional courthouse is rapidly being replaced with the “virtual” courthouse.

The general process is that documents are uploaded from an attorney’s computer (typically in “Adobe” format) to the court’s server for electronic filing. Once uploaded, the file becomes a part of the court’s case file. The court also provides a manner in which people who either do not have a computer or do not have internet access can either deliver a diskette to the clerk or scan documents into terminals at the courthouse.

For security purposes, each attorney is given a password to permit access. That access password must be protected, as it is treated the same as an attorney’s signature.

In 2003, when I first wrote this article, Electronic Case Filing had begun to be used as the only method filing in several New York area courts, including the Bankruptcy Courts, the federal District Courts, and a pilot project in a couple of New York State Supreme Courts.

ECF has significant benefits for various interested parties:

  1. The courthouse eliminates almost all paper storage of files, along with court personnel associated with file handling.
  2. Files or papers will not be lost, misplaced, or destroyed; unfortunately, these problems have been routine occurrences.
  3. Attorney and non-attorney filers are able to file documents at any time, even when the courthouse is closed.
  4. The public is able to view any filed document in an electronic case file at any time and from any place.
  5. Judges are able to easily review documents.

The ability to view documents online from anywhere is probably the most important part of the ECF evolution. The instantaneous viewing of documents can be a tremendous advantage in making decisions. For instance, the viewing of a debtor’s bankruptcy petition online moments after it is filed can afford a creditor sufficient time to determine whether to discharge or whether its claim has been properly listed. Further, the creditor may obtain information on property co-owned by the debtor with a non-filing party. Another example is that ECF access provides the opportunity to verify information given by a credit applicant.

by Richard A. Klass, Esq.

copyr. 2003 and 2010 Richard A. Klass, Esq.
The firm’s website: www.CourtStreetLaw.com

Richard A. Klass, Esq., maintains a law firm engaged in civil litigation at 16 Court Street, 28th Floor, Brooklyn Heights, New York.
He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.com with any questions.
Prior results do not guarantee a similar outcome.

New Property Registration System Helps New York City Owners

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Last month, New York City went operational with its new “Notice of Recorded Document” System, as part of ACRIS [Automated City Register Information System]. As many people are already aware, several years ago, New York City started electronic recordation of deeds, mortgages, and other types of instruments pertaining to real estate, including buildings, houses, condominiums and cooperative apartments. ACRIS was designed to make these recorded instruments easily accessible to the public.

Now, the City Register has taken the ACRIS program a significant step forward, by introducing the Notice of Recorded Document System. The system allows users to log in and register with the website. Registrants are limited to those with an interest in the subject property, such as owners, lienors, managing agents and executors/administrators.

The user can register to receive notification by email or text of any instrument recorded against the subject property. This may be very useful in preventing deed theft, mortgage fraud or loss of interests in the property.

 

by Richard A. Klass, Esq.

copyr. 2010 Richard A. Klass, Esq.
The firm’s website: www.CourtStreetLaw.com

Richard A. Klass, Esq., maintains a law firm engaged in civil litigation at 16 Court Street, 28th Floor, Brooklyn Heights, New York.
He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.com with any questions.
Prior results do not guarantee a similar outcome.

The $1.2 Million Shopping Disaster

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At her local supermarket, a shopper bought her groceries and started to walk out the front door of the market with her cart. As she walked out, the entire door at the exit came unhinged from the frame and slammed down on her. The door managed to slice off the rear portion of her leg, taking out part of her calf. The result was a painful ordeal, requiring extensive medical treatment.

The shopper decided to retain Richard A. Klass, “Your Court Street Lawyer,” to pursue her claim for personal injuries based upon the negligence of the supermarket. An action was brought in the Supreme Court, Kings County against the supermarket, alleging negligence for the fallen door.

Res Ipsa Loquitur:

The Latin term “Res Ipsa Loquitur” means the “thing speaks for itself.” It refers to the legal principle that a court may infer negligence when the nature of the accident is such that it would ordinarily not happen without negligence. In New York, the general rule is that an injured party can establish this claim against the defendant/liable party by proving three elements:

  1. The event must be of a kind which ordinarily does not occur in the absence of someone’s negligence;
  2. It must be caused by an agency or instrumentality within the exclusive control of the defendant; and
  3. It must not have been due to any voluntary action or contribution on the part of the plaintiff.

Dermatossian v. New York City Transit Authority, 67 NY2d 219 [1986].

The circumstances of this injury fit well within the doctrine of res ipsa loquitur. It certainly could be said that doors to supermarkets do not completely come unhinged without negligence.

Structured Settlement:

On the eve of trial, the defendant was eager to settle the case, given the likelihood that a charge of res ipsa loquitur would be given. The parties discussed settlement in terms of a “structured settlement,” which would allow the defendant’s insurance carrier to pay less money but would maximize the money for the injured shopper.

Structured settlements are those where the settling party purchases an insurance product, typically an annuity policy, that pay the injured person a certain amount of moneys per year over a certain number of years. The benefit for the settling party is the payment of a reduced present-value amount for the policy instead of a higher lump-sum payment. It can also be attractive to an injured person since it will generally be guaranteed tax-free income payable over a period of years and allow for settlement of the claim instead of the risk of losing at trial.

The injured shopper settled the case with the defendant supermarket for $1.2 million, with a structured settlement, which will provide her with sufficient income for a very long time.

by Richard A. Klass, Esq.

The firm’s website is here.

Art credits: Anatomy of the Human Body (Figure 438). 1918, by Henry Gray (1825–1861)
copyr. 2010 Richard A. Klass, Esq.
Richard A. Klass, Esq., maintains a law firm engaged in civil litigation at 16 Court Street, 28th Floor, Brooklyn Heights, New York.
He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.com with any questions.
Prior results do not guarantee a similar outcome.

The Importance of Saving Proof of Payment.

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In 1994, tax payments were made to the NYC Department of Finance for several parcels of real property by a client. In 2001, unbeknownst to the client, the Department of Finance unilaterally reversed the payments made, added interest, created tax liens, and bundled up the liens for public auction sale.

My firm commenced an action against the City of New York in 2002, after learning of the tax lien sales, to declare that the payments made in 1994 had truly been made, and that the Department of Finance acted without authority in reversing the credits. Luckily for the client, he saved the receipts issued by the Department of Finance when he made the payments in 1994 (which receipts are stamped onto the tax bills and actually given to the taxpayer).

The case culminated with the City of New York agreeing to reverse all of the unauthorized charges in 2001, reversing the tax lien sales, and clearing the tax delinquencies on the client’s account. A Win!What does this teach? The importance of retaining proof of payment in various situations. Here, proof of payment was crucial in winning the case.

Common proofs of payment include a check or credit card statement, showing that the bill was paid. Other forms of proof may be a store receipt, credit card receipt, or paid invoice. If cash is tendered, a signed receipt should be obtained.

The general rule of thumb is that most business records should be maintained for safekeeping for seven years. Many advocate saving records for much longer, if feasible given space considerations.

The ability to prove payment of a debt or bill comes in handy in various situations, including:

  1. Many parents pay the custodial parent their child support payments by cash; sometimes, the custodial parent has kept poor records, and will allege non-payment. The burden of proving payment will fall upon the person charged with making the support payments.
  2. Distribution companies, such as food wholesalers, will have the drivers pick up payments at the time of making delivery of goods. The driver may not account for the payments, and the store will be forced to show payment of the invoices.
  3. Tenants of smaller rental buildings or two-family houses will pay the landlord (who generally lives at the building) by cash and fail to obtain a rent receipt. Afterwards, the landlord may commence an action for non-payment in the Housing Court, and the tenant will be without proof of payment of the rent.

Since the general burden of proof of payment falls upon the person liable for the same, it is critical that proof be obtained at the first instance and maintained. This will ensure that later mistakes or intentional denials of payment are disproved.

by Richard A. Klass, Esq.

copyr. 2010 Richard A. Klass, Esq.
The firm’s website: www.CourtStreetLaw.com
Richard A. Klass, Esq., maintains a law firm engaged in civil litigation at 16 Court Street, 28th Floor, Brooklyn Heights, New York.

He may be reached at (718) COURT-ST or e-ml to RichKlass@courtstreetlaw.com with any questions.
Prior results do not guarantee a similar outcome.