Hay algunas excepciones, como una sucesión testamentaria no impugnada, pero generalmente la duración y la cantidad de trabajo involucrado en un caso depende en gran medida de lo que haga la otra parte. Si el oponente presenta una moción, generalmente usted debe responder. Eso ralentiza las cosas y crea más trabajo para el abogado.

Lo mismo se aplica a las acciones que toma el juez en el caso. Los jueces imponen plazos y, en ocasiones, toman medidas espontáneamente (es decir. sin moción). El abogado debe responder en consecuencia.
También, ¿Qué pasa si resuelves el caso en el camino? ¿Qué pasa con las apelaciones? ¿Qué pasa si el caso se traslada a un tribunal federal?

Es esencialmente imposible decirle a un cliente cuánto terminará costando una demanda. Sin embargo, eso no significa que no puedas tener al menos alguna idea de qué esperar. Ese es el propósito de este artículo.

Regla general 1: Es menos costoso defender un caso que procesarlo. Depende del demandante hacer avanzar la acción, por lo que la presión recae sobre el demandante para que haga las cosas. Con algunas excepciones, generalmente es menos trabajo para un demandado porque el demandado tiene el lujo de no hacer nada hasta que el demandante tome medidas.

Regla general 2: El tribunal estatal es menos costoso que el tribunal federal. Además, los jueces federales imponen plazos más estrictos, por lo que los costos se incurren en un período de tiempo más corto. Su capacidad para presupuestar durante el curso de un litigio es más limitada en un tribunal federal.

Las diferentes etapas de un juicio son predecibles. Entonces, podemos desglosar lo que sucede en cada etapa y tener una idea aproximada de los costos y tarifas de cada una.siempre con la salvedad de que las cosas pueden ser más o menos caras dependiendo de lo que haga la otra parte.

Etapa 1 – Iniciación

Si usted es el demandante, su abogado deberá redactar la demanda y la citación para iniciar la demanda. Dependiendo de la complejidad del caso, eso podría tomar hasta cinco (5) horas de trabajo. Entonces, serán alrededor de un par de miles de dólares para la investigación y la redacción, dependiendo de la tarifa por hora del abogado.

El tribunal cobra una tarifa de presentación. El monto puede variar un poco, pero probablemente esté en el rango de $600.

Después de eso, la demanda y la citación deben ser notificadas por un notificador de proceso. Puedes pedirle al departamento del Sheriff que lo haga, que es más barato, pero tardan más. . . y realmente no puedes darles prisa. La mayoría de las personas recurren a un notificador privado, que costará alrededor de $100 por acusado.

Entonces, si lo sumas todo, estás viendo algo como $2,500-3,500 para que el caso despegue.

Si usted es el demandado, solo necesita presentar una respuesta a la demanda. Hay algunos tipos diferentes de respuestas que puede presentar, como una moción para anular, una moción para desestimar o una respuesta con defensas. Su abogado decidirá qué enfoque es mejor, pero cualquiera de estas respuestas requiere entre 1 y 3 horas de redacción. Entonces, tal vez estés mirando aproximadamente$800-1000 para cada una de estas respuestas. Tenga en cuenta que su abogado puede utilizar sólo una de estas respuestas o, quizás, las tres, según la situación.

Etapa 2 – Descubrimiento

Esta es la etapa en la que las partes obtienen información de la otra parte o de terceros. Hay casos que requieren sólo un descubrimiento mínimo o, incluso, ningún descubrimiento. Además, el tipo de descubrimiento utilizado marca una gran diferencia en los costos. Por lo tanto, los resultados pueden variar enormemente en esta etapa.

Hay tres tipos de solicitudes de descubrimiento por escrito: interrogatorios, solicitud de presentación y solicitud de admisión. Estos «productos de descubrimiento» son un tanto predecibles ya que simplemente es cuestión de redactarlos y enviarlos. Espere alrededor de 2-3 horas de trabajo ($800-1,600) por producto de descubrimiento. Su abogado decidirá si utiliza algunas o todas estas opciones de descubrimiento.
Otra herramienta de descubrimiento común son las declaraciones. Esas son una bestia completamente diferente.

En primer lugar, es posible que tenga que emitir una citación, que es una redacción adicional. Pero lo principal es que interrogar personalmente a un declarante suele durar todo un día. Una vez que se tome la molestia de conseguir que la persona ocupe el asiento y esté bajo juramento, querrá aprovecharlo al máximo. Y, por lo general, el declarante opondrá cierta resistencia, lo que ralentiza las cosas. Además, hay que pagar por el taquígrafo judicial y, a veces, por la sala.

Por lo tanto, puede esperar que una única declaración cueste entre $1,000-5,000. Los depósitos son mucho más caros pero, dependiendo del declarante, pueden resultar muy eficaces.
Además, para casos complejos, puede haberrondas de descubrimiento. Entonces, puedes estar enviando («proponiendo») un primer conjunto, un segundo conjunto, un tercer conjunto, etc.
Otra cosa es la práctica de movimiento que se puede realizar en esta etapa. Por ejemplo, si la parte que recibe la solicitud de prueba no responde, o no brinda buenas respuestas, entonces su abogado tendrá que presentar una Moción para obligar y, probablemente, acudir a una audiencia. Eso significa un gasto adicional.

Etapa 3 – Sentencia sumaria

Algunos casos pueden resolverse total o parcialmente sin llegar a juicio, como los casos basados ​​en unacontrato. Esto suele ocurrir mediante la presentación de una Moción de fallo sumario. Si usted es el demandante, espera terminar el caso con esta moción, por lo que su abogado dedicará algo de tiempo a investigar y redactar esta moción. Luego, habrá una audiencia sobre la moción. Calculo que este proceso tomará entre 3 y 6 horas de trabajo ($1,200-3,000), dependiendo de la complejidad de los problemas.

Etapa 4 – Juicio

El juicio sumario es para casos que no involucran cuestiones probatorias. En otras palabras, el juez no está obligado a escuchar testimonios ni a tratar hechos controvertidos. Cuando eso no sea posible –lo que ocurre muy a menudo– el caso tendrá que decidirse mediante un juicio.

H&S se ocupa principalmente de disputas comerciales y de bienes raíces, que normalmente no requieren la participación de un jurado. Entonces, el análisis aquí se centra en los juicios sin jurado. Solo tenga en cuenta que existen pasos adicionales para los juicios con jurado.

El juicio es «la hora del espectáculo». Todas las pruebas y testigos deben estar preparados. Hay que finalizar la investigación. Es necesario discutir la estrategia y todos los involucrados deben estar listos para comenzar. Tiene mucha importancia. Luego está el juicio en sí, que puede durar un día o una semana, según el caso. Entonces, nuevamente, los resultados pueden variar enormemente.

Pero, sólo para darle una idea, es probable que esta etapa cueste algo dentro del rango de$3,000, para un caso relativamente simple,$10,000 para un caso bastante complejo. Esto, por supuesto, en el contexto de un típico litigio empresarial (es decir, no de grandes corporaciones) en un tribunal estatal.

Otros costos

Una cosa con la que probablemente pueda contar es la mediación. En algún momento, una de las partes solicitará una mediación, o el juez simplemente lo enviará a mediación con la esperanza de obtener el caso del expediente. Será un día completo de trabajo, más los honorarios del mediador, así que cuente con$2,000-$3,500 para eso.
Luego están las apelaciones. Incluso existe algo llamado «apelación interlocutoria», que puede ocurrir incluso antes de que se decida el caso. Por lo tanto, puede haber costos de apelación tanto durante como después del caso. No existe una “práctica de moción” en las apelaciones, por lo que los costos son bastante predecibles. Pero el trabajo de apelación es notoriamente caro porque el nivel de «abogado» aumenta.

Conclusión

Con suerte, el análisis que se incluye en este documento le ayudará a comprender mejor los factores implicados en el litigio de un caso, para que pueda prepararse mejor y tomar decisiones informadas. Nunca olvide que un caso puede resolverse en cualquier punto del camino, lo que pone fin a los gastos.

~ Jeff Harrington, Esq.

¿Estás pensando en demandar a alguien? ¿O tuvo una mala experiencia en un pleito? No se pierda esta discusión inusualmente franca sobre los lados buenos, malos y feos del litigio.

The purpose of this article is to make both parties aware of the common considerations after default on a commercial lease. 

Uncollectible Tenants

Personal Guaranty

It is hard to blame a commercial landlord for insisting on payment of every dime owed, but that does make it nearly impossible to cut a deal quickly.  So, very often, we end up with Scenario #2, which is protracted litigation.

Real Estate Litigation

Once the lawsuit starts, it’s basically for «all the marbles» because the landlord will be entitled to ALL the costs and fees resulting from this lawsuit, along with unpaid rents and other damages.

But, be aware, landlords.  Sometimes the commercial tenant does have an exit strategy.

I realize that all sounds good from the landlord’s perspective.  Just remember, though, getting a judgment is one thing.  Collecting on the judgment can be quite another.

Executing on the Judgment

The tenant may start transferring assets out of the landlord’s reach.  If you start seeing the tenant’s attorney utilizing delay tactics in the lawsuit, it may be that the tenant needs time to get the asset-protection plan in place.  

Conclusion

Foreclosures

1. Single-Family Mortgagor.  First and foremost, the order only protects so-called «single-family mortgagors.»  The Governor’s choice of verbiage leaves a bit open to interpretation, but it is likely the following types of mortgages are not subject to the moratorium:
   • Commercial loans
   • Residential loans on multi-family properties
2.  Affected by Covid-19.  It might not be too difficult for residential borrowers to show they have been affected by the Pandemic, but there are some who might not qualify.  For example, our firm represents some online businesses that have done just fine over the past months.  Some may even have benefited from the shut-down.  So, while the order is not clear, it is certainly possible that the onus will be on the borrower to prove a Covid-19-related hardship in order to avoid foreclosure.
3. Other Grounds for Foreclosure.  The order specifically states the Order will not prevent foreclosure on grounds other than non-payment of the mortgage.  At this point, one would imagine some lenders, at least, are getting pretty desperate for their mortgage income.  One strategy you might see is lenders getting creative about the grounds for foreclosure.  Is the failure to provide funds for insurance and tax escrows considered non-payment of the mortgage?  Maybe.  What about other provisions in the mortgage that might have been breached?
4. Final Action.  Also, note the Governor’s Order only prevents the «final action» concluding a foreclosure action.  So, that means lenders can go ahead and initiate their foreclosures anytime.  They might even be able to get final judgments in place.  While unclear, the «final action» referenced in Executive Order 20-180 probably means holding the foreclosure auction of the property.  Or, maybe, «final action» means the property can be auctioned, but the owners cannot be removed under a Writ of Possession.  In any event, you get the point.  There is much the lender can do during the pendency of the Order.  And, some aggressive lenders may well do so.
5. Non-Forgiveness.  As with the previous Orders, this Executive Order 20-180 does not make the past due mortgage payments go away.  The past due balance continues to accumulate whether or not the lender is currently prevented from actually taking possession of the property.  That is why many experts believe there will be a wave of foreclosures as soon as the Pandemic Relief measures are lifted.  By that time, some borrowers, at least, will find themselves several months in arrears.  If they were unable to make the mortgage payments on a monthly basis, they certainly will not be able to make a lump-sum payment for several months of past-due payments.

Evictions

1.  Residential Tenants.  First and foremost, the order only protects so-called «residential tenants.»  So, commercial tenants are not protected at this point.
2.  Affected by Covid-19.  It might not be too difficult for residential tenants to show they have suffered economically as a result of the Pandemic, but there are some who might not qualify.  It remains to see how individual judges will handle this, but it is certainly possible that it will be up to the tenant to demonstrate a Covid-19-related hardship in order to avoid eviction.
3. Other Grounds for Eviction.  The order specifically states the Order will not prevent eviction on grounds other than non-payment of rent.  Rental agreements generally have a fair number of provisions other than payment of rent, which a landlord could use as an excuse for eviction.  It would almost certainly be easier for landlords to use this loophole than it would be for lenders.  Given the level of frustration many landlords are experiencing, I would expect we will see some evictions for failure to maintain the property, excessive noise, parking violations, etc.
4. Final Action.  In the case of evictions,  the «final action» is probably execution of the Writ of Possession.  So, that means landlords can initiate their eviction actions and, probably, obtain a final judgment.  They could have the Sheriff ready and waiting to remove the tenants the moment the moratorium is lifted.
5. Non-Forgiveness.  As with the previous Orders, this Executive Order 20-180 does not make the past due rental payments go away.  The past due balance continues to accumulate whether or not the landlord is currently prevented from actually taking possession of the property.  Since eviction is generally considered less traumatic than taking someone’s property, it is predictable that — while the State or Federal government may provide some protection to homeowners — tenants will be at the mercy of their landlords.  Landlords may not see this as a great time to have their properties vacant, so that would be the only real incentive to work with their tenants.  Still, it is hard to imagine that tenants will ever be able to catch up on several months of past-due payments.  Many will probably walk away.

Whether you are a lender, borrower, landlord or tenant, you should consult your real estate attorney for information and strategies regarding the current Pandemic and the aftermath that is sure to come.

~ Jeff Harrington, Esq. 

What’s next?

You can now expect a Form 1099-C from your bank or lender stating that they are forgiving a portion of your debt that remains unpaid. Great news, right? Wrong. The debt that is being forgiven is now considered income to you by the IRS and you are now subject to taxation on that income.

You already have financial issues–that’s why you’re losing the home–so what are your options?

Find a Tax Attorney 

First, try your best not to panic. This is not the end of the world. There are options available to you in order to avoid paying this extra tax. However, going to your accountant may not be the right choice as many accountants are unfamiliar with Cancellation of Debt income and the exclusions that apply. Additionally, many accountants prefer not to give out tax advice or come up with a strategy that may be used to avoid taxes. Accountants prefer to be “bean-counters” and work solely with the numbers and not with any strategy that may help the taxpayer. Therefore, get on the internet and find a trustworthy tax lawyer. Tax attorneys have the tools necessary to negotiate with the IRS and remove any additional tax liability that comes with a Form 1099-C.  And, if it becomes necessary, a tax lawyer can litigate for you.

Qualified Principal Residence 

The most common way to avoid the extra income stated in Form 1099-C is to use the Qualified Principal Residence Indebtedness (QPRI) exclusion. QPRI is defined as debt cancelled on the taxpayer’s “principal residence” as defined under IRC Sec. 121 (for the exclusion of gain on the sale of the taxpayer’s principal residence). QPRI is “acquisition indebtedness” (which means that the debt must have been incurred in acquiring, constructing, or substantially improving the taxpayer’s principal residence) up to $2 million ($1 million for married filing single).

For a taxpayer’s principal residence to be qualified for the exclusion the taxpayer must have owned and lived in the property as a principal residence for 2 out of the last 5 years. Therefore, if you, as the taxpayer, owned and lived in the home as a principal residence for 2 out of the last 5 years and the debt incurred was used in acquiring, constructing or substantially improving the taxpayer’s principal residence, then the Cancellation of Debt income may be excluded completely.

Your tax attorney will be able to review your unique situation and determine whether this exclusion applies to you and will work with the IRS, you and your accountant to exclude this debt.

Insolvency

The next most common way to avoid the extra income stated in Form 1099-C is to be insolvent. This is a tough pill to swallow for many taxpayers and no taxpayer ever wants to admit that they are insolvent. Being insolvent is not a bad thing in the world of taxes. This will allow the taxpayer to exclude the Cancellation of Debt income.

Under the insolvency exclusion, the taxpayer may exclude the cancellation of debt from income to the extent the taxpayer is “insolvent.” Debt discharge in excess of the amount by which the taxpayer is insolvent, is generally taxable income, unless another exclusion applies.

Insolvent means the amount by which all of the taxpayer’s liabilities exceed the fair market value of all of his or her assets. This also means that the cancelled debt may count as a liability for the purpose of determining the taxpayer’s insolvency. Insolvency must be determined immediately before the cancellation of debt occurs.

Therefore, finding a competent and trustworthy tax attorney can be the difference between paying thousands of dollars in extra tax or paying very little to nothing in extra tax.

If you are already an H&S client, then you have access to tax counsel right along with your foreclosure attorney.  Simply contact the office and ask for a free consulation.

If you are not already a client, please fill out the form below and one of HLA’s competent tax attorneys will contact you to assist in any tax matter that you may have.

~ Craig W. Young, Esq.

More on Tax Controversy

Posted: 4:00 p.m. Wednesday, July 3, 2013

By Kimberly Miller – Palm Beach Post Staff Writer

WEST PALM BEACH —

A Palm Beach County judge’s order requiring a bank to modify a homeowner’s mortgage instead of foreclosing has lender lawyers scrambling for a do-over and defense attorneys at attention.

The order, signed by Judge Howard Harrison last month in a Royal Palm Beach foreclosure case, specifies payment amounts, a fixed 3.15 percent interest rate for 40 years, and requires the bank to mitigate damage done to the homeowner’s credit — details foreclosure defense attorneys said they have never before seen in a ruling.

In fact, several said they were surprised and intrigued by the unusual order, which attempts to enforce a trial loan modification the homeowner received in 2009 but which may ultimately overstep the judge’s legal authority.

“It seemed like the bank was trying to get payments out of the homeowner but never really had any intention of modifying the loan,” said attorney Jeff Harrington, who is defending homeowner Paul Posti. “Our argument is, if you look at it closely, it’s a binding contract.”

The bank has asked for a rehearing in a 64-page request that includes the assertion that a trial loan modification is not an enforceable contract.

“We disagree with the ruling in this case for a number of reasons, including that compliance with the decision would require us to violate several federal laws and it imposes a modification with terms that were never agreed to by the Bank,” Wells Fargo said in a statement Wednesday.

Posti, who defaulted on his more than $470,000 loan in 2009, said Wachovia Bank granted him a trial loan modification through the federal Home Affordable Modification Program that was supposed to convert to a permanent agreement after he made three successful payments.

But after six payments and a bank takeover by Wells Fargo, he said he was given different terms, never got a final approval, and was never given an explanation as to why the terms changed.

Posti said he made “over 40 telephone calls attempting to find out why the bank was not honoring their agreement.”

Confusion surrounding the loan modification process is repeated in stories by thousands of homeowners nationwide. Their claims of lost paperwork and wrongly denied applications were recently bolstered by former Bank of America employees who said in sworn statements they were told to lie to homeowners, purposefully delay modifications and reject eligible applicants. Bank of America said the statements, filed as part of a federal lawsuit, are “rife with factual inaccuracies.”

Foreclosure defense attorney Tom Ice said he won’t be surprised if Wells Fargo wins a rehearing in Posti’s judgment strictly on legal principles, but that the case exposes the “sordid underbelly” of the federal loan modification program.

“We’ve always viewed it as a government-issued license for the mortgage servicer to steal a few more payments before it takes the home,” Ice said. “Often, these one-sided contracts are not even signed by the bank, so even if it said the bank would modify, it would be impossible to enforce.”

According to the order, Posti will pay no more than $2,584-a-month on a loan balance of $493,370. But Wells Fargo says Posti owes more than $625,000 including interest accrued while the loan was in default and taxes the bank paid.

“Even with an interest rate as low as 5 percent, if monthly payments cannot exceed $2,584, it would take over 100 years to repay the loan,” attorneys for Wells Fargo wrote in their rehearing request.

Regardless of the outcome of this case, foreclosure defense attorney Michael Wasylik said he believes the order will push homeowners to be more aggressive in pursuing the enforcement of a trial loan modification.

“The way the industry has handled loan modifications, just stringing them along and misleading people all the time, is really obvious abuse,” Wasylik said. “Everything is carefully worded in the bank’s favor.”

Click here for more Harrington And Sheppard in the News.