AT MY TRIAL PRACTICE WEBSITE . . . "Tax Consequences of Confidentiality Clauses in Settlement Agreements."
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Have any of the lawyers here been sued for failure to warn on this important case law? Privity would not be an obstacle in such a claim.
Posted by: Supremacy Claus | May 03, 2006 at 05:49 PM
I assume the prevailing plaintiff pirate has no obligation to deduct the tax on the value of the confidentiality agreement, the way he will deduct his expenses and contigency fees.
What if he has failed to inform the plaintiff of this tax decision? Is that the suborning of tax evasion? Should the IRS punish this lawyer? How about the state disciplinary counsel, is it unethical to permit unreported income? Being a crime, should an attorney be punished for allowing the crime of underreporting of income?
Posted by: Supremacy Claus | May 04, 2006 at 08:06 PM
Evan: Could you get permission from the IL Bar and reprint this article on your site?
Does the article provides notice of the law and of the view of the Bar to all members? Does that notice mean that malice and exemplary damages may be added to any legal malpractice case by a plaintiff with a confidentiality clause who was not warned and is sanctioned by the IRS? Does it mean that any member of the Bar now has an affirmative duty to report fellow lawyers who have violated the duties enumerated in the article?
The article might answer some of these questions.
Posted by: Supremacy Claus | May 05, 2006 at 08:02 AM