ClickCease

If Married, Do I have to File for Bankruptcy with My Spouse?

 

As a married person, do I need to file for bankruptcy with my spouse?

Transcript:

Hi, this is Matt McArthur, bankruptcy attorney at Clear Counsel Law Group. I was recently asked a common question that's presented to me during consultations and the question is this, "I'm a married individual. If I'm thinking about filing for bankruptcy do I have to file with my spouse?"

The answer to this question is simply no, but there are a couple of things to keep in mind if you plan on filing bankruptcy as a married individual, but not including your spouse in the filing of the bankruptcy.

The first concern is that only debt that is in the filing spouse's name is going to be discharged as part of the bankruptcy process. In other words, because the non-filing spouse never filed for bankruptcy, the debts and responsibilities to pay those debts that are in the non-filing spouse's name, will follow them after the discharge of the filing spouse's bankruptcy.

Now, that's kind of a mouthful to think about, but just think of it this way, the person filing for bankruptcy gets their debts wiped out and the person that doesn't file for bankruptcy, obviously, is going to be stuck with those debts after the filing of the bankruptcy of their spouse.

The other thing to keep in mind is, particularly in the Chapter 7 case, even the non-filing spouse's assets can be part of the bankruptcy's process and that a Chapter 7 bankruptcy, where assets could potentially be liquidated to pay off creditors, this is of a major concern that you want to be able to address with an experienced bankruptcy attorney to make sure that you're not going to lose any valuable property like a non-filing spouse's car, or perhaps a non-filing spouse's jewelry that you didn't really think about when you were speaking with your attorney originally because they weren't going to be part of the bankruptcy process.

The fact of the matter is, even the non-filing spouse's assets could potentially be part of the bankruptcy estate sold off to creditors and the non-filing spouse probably isn't going to care for that very much, if you filed for bankruptcy and lost all their items.

Please, before you file for bankruptcy and consider filing as an individual, if you're a married person, please speak with a bankruptcy attorney and address these issues to determine exactly what protections are in place for you as an individual to file without your spouse.

Until next time, I'm Matt McArthur signing off. We'll see you.

demdebate, vegas, hillary, bernie, democrats, democratic, wynn, cnndebate

Behind the Scenes Photos from the DemDebate

"Enough with the damn emails" is right. The punditry spend the last 12 hours telling you who won the debate (stop arguing and just agree with them already. They know best cause they are the ones on the TV. Duh.)

Yet again, the online polls contrast greatly with what the talking heads are telling us. Is it possible that the Chris Matthew's crowd desires different characteristics in their candidates than the voting public? Will the punditry ever notice or care? How does someone win a debate if only the people on the tv thinks she did? Lucky for us, they still have about 30 more of these to figure it out.

CNN was kind enough to allow your humble blogger to join in the fun from the press scrum. I spent much of the time before the debate outside the hotel with the activists hopefully capturing the feel of the first DemDebate.

Not one person rejected my request for picture, so thank you all.

Now, on with the show!

 

Pre Demdebate from Inside the Press Area

No, contrary to popular belief, the press is not permitted in the debate hall itself. This is as close as we got. And by close, I mean to each other. I think I left my complimentary Wynn mug!

 

This here is the spin room, a few hours before the scrum. Keep this picture in mind for later.

Our new friend Sammy, who has already covered more debates in person than I have.

Another shot of the spin room.

Thefacebook had a lounge inside of the spin room. Them employees live in serious fear; I had to ask three people before someone would answer a question. After responding with boilerplate boringness when I asked him why thefacebook is so involved with politics now, I asked if they only planning on partnering with cable news until they have their own cable channel, to which the facebook spokesman responded with a terse "Nice try." Whatever that means.

You wouldn't guess from TV that all the stations broadcast from right on top of each other. That's Andrea Mitchell on the left. Never found Mr. Greenspan though (And oh did I ever want to).

 

Pre DemDebate from Outside the Wynn

Hillary supporters cheering outside of the Wynn 4 hours before the debate. Someone told me they had been there since early in the morning, though I cannot confirm.

Affable Hillary supporters photographed around the LV Strip.

The Nurses Union was not kidding around. Above are pictures taken in front of the Fashion Show Mall, pre demdebate.

"We got a public display of democratic socialism...code red!"

A selection of Bernie fans from the street. Also people who drive 6-figure cars for Bernie!

Sorry I forgot one.

A special thanks to our friends at Metro for keeping the event running smoothly. These two officers were kind enough to pose.

Team Hillary came out in force as well! How the mariachi band played with such good tone on a pedestrian bridge on the Las Vegas Strip is beyond me. They were terrific!

Yes, there were counter-rallies on the surrounding pedestrian bridges! "More debates now?" May we at least have one first?

 

Post DemDebate, from Behind the Curtain

Who can come up with the hottest take the fastest?? Ready, Set...Go.

Reporters were literally running to the Spin Room upon Hillary's last word. My toe still hurts.

That's our friend Sammy interviewing Ed Schultz, now a surrogate for Bernie.

 

Oh the mainstream media.

You may remember Van Jones from the few minutes he spent with the Obama administration. He's getting good at this TV punditry business. Bet it pays better than social activism.

Action shot from inside the spin room.

Note: if you want to be scolded by an the MSNBC producer, take photos like this while Chris Matthews is on air.

That John Depodesta, Chairman of Hillary for President. He did not have much spinning to do.

I heard someone ask Don Lemon how he keeps that figure of his. He responded "brussels sprouts."

I was thankful for the Funny or Die folks for coming, they were some of the few that understood the appropriate amount of gravity necessary to cover a debate for an election more than a year away. Unfortunately, this is a family friendly blog so I cannot repeat her question for Sen. Gillibrand (of New York. She actually won Hillary's seat.)

Chairwoman of the DNC.

The spin room stampeded toward Bernie. The cat from "Insider" promised me he would ask Bernie "What are you wearing?"

The good Reverend reminiscing about campaigns past.

You cannot have a Vegas spin room without Wayne and the Goodmans!

That's friend of the blog (he wouldn't agree, but then again, he aint writing this) Jon Ralston (if that is his real name) on the MSNBC with Chris Matthews and the person whose name I won't use because she tweets nasty thoughts about our fair city before going back to her fiefdom.

If I would have caught the spelling error at the time, I would have offered cash for that hat.

Lincoln! No..not that Lincoln.

 

And of course, Trump loomed large over the whole event..

 

What is a 341 Meeting in Bankruptcy?

 

Do you need to worry about your 341 meeting in bankruptcy?

Transcript:

Hi, I'm Matt MacArthur, bankruptcy attorney at Clear Counsel Law Group. I had somebody in my office the other day that was really upset and anxious and quite nervous about a meeting that we were going to have with creditors and the bankruptcy courthouse. This is a meeting that happens in all bankruptcy cases, and I thought this would be a great opportunity to address what goes on in these meetings, and perhaps to put all of your minds at ease about what actually occurs there. This meeting is called the 341 meeting of creditors. The 341 number comes from the section of the bankruptcy code that says that we have to have this meeting. The meeting of creditors part is perhaps a bit of a misnomer because creditors will rarely appear at these hearings. Creditors do have the opportunity to appear if they want to, but I would say it's probably less than 5% of cases, perhaps less, in which creditors actually do show up and ask questions. What usually happens is it'[s a meeting that happens at the bankruptcy courthouse down in a side-mediation type room, where a court official called a bankruptcy trustee will record the hearing and swear in the debtor under oath.

"Do you solemnly swear to tell the truth, the whole truth, and nothing but the truth?" Type of oath. Once you're under oath, the trustee will ask you questions, and the trustee's purpose is typically twofold. One, the trustee is looking to determine whether not you actually filled out all the paperwork correctly, that everything was completely and accurately listed in the bankruptcy documents, that you actually reviewed these documents with your attorney and signed these documents authorizing the filing of the bankruptcy case. The second, the trustee is also looking to see whether not there's any assets that are unprotected or not exempt. The trustee is the individual that's responsible for collecting any nonexempt assets, selling them off for creditors in a Chapter 7 case, or making sure that adequate payments are being provided for in a Chapter 13 plan, and taking care of the administrative side of the bankruptcy case. If creditors are present, they'll have an opportunity to ask questions as well.

Obviously, you'll be under oath at this hearing, so the best advice that I can give is to tell the truth. You get into a lot of trouble when you don't tell the truth, and the vast majority of cases ... Individuals have nothing to hide anyway, so honesty is clearly the best policy at these hearings. A typical hearing lasts anywhere from 3-6 minutes depending on the complexity of the case. They can go much longer if there's a lot of complicated issues involving businesses or non-exempt assets, but the typical person filing for bankruptcy will only be in the courtroom where they're being questioned for a matter of minutes, and then they'll be on their way without any real reason to sweat. The biggest caution that I give to my clients is to tell the truth, and I try to tell all of them to relax because these are really ... Although they're unofficial hearings ... They are official hearings and you will be under oath, there's kind of a laid back setting to them. The trustees are typically very nice, and it's one more obstacle that you have to go through to get your bankruptcy discharge, but on a whole, these hearings are nothing to fear as long as you tell the truth. Then you've disclosed everything to your bankruptcy attorney. Your attorney will have you well-prepared for these hearings. This is Matt MacArthur, bankruptcy attorney at Clear Counsel Law Group, saying goodbye for now.

detrimental reliance, utley, mets, mlb, postseason, dodgers, tejada

Utley, Tejada, Mets, Dodgers, Instant Replay and Detrimental Reliance

Before we begin, here's the clip of Chase "I just play the game hard" Utley breaking the leg of the Mets' shortstop Reuben Tejada from Saturday night:

 

 

Type "Mets" or "Utley" into the twitter, and you will be up to your eyeballs in hot takes. Allow me to share a a few so you get a feel:

 

 

And those were the tweets that were fit to print.

 

 

I know a few New Yorkers. Might be best for Utley to stay off the streets today.

 

 

Does it have to be Matt Harvey?? Also, that may not be real dirt.

 

https://twitter.com/FBillMcMorris/status/653617232514273280

 

#StuffJustWontStopHappening

 

 

#Synergy

 

 

Still not sure if that is good or bad.

 

Or as they say in Queens: "Mets baseball, where we turn the other cheek"1)This is not accurate. I doubt I can out hot-take the Utley conversation on the twitter, but regardless, this time would  be better suited to explain why the umpires ruled the way they did, and the roots of the ruling in doctrines of law2)Seriously!.

 

The Call on the Field

So after Utley's open-field tackle3)he has decent form in hitting a guy who does not see him, Utley ran directly off the field (after being called "out"), right to the dugout to think about what he did. Upon replay, folks discovered that in the process of having his fibula fractured, Tejada never touched 2nd base. Funny enough, in breaking Tejada's leg, Utley jumped over the base and never made contact with the base either.

The Dodgers challenged the ruling the field, and once the umpires saw that Tejada did not touch the base, the call was reversed by the powers that be, and Utley4)because he was not ejected for some reason went back to second base. He eventually scored after the Dodgers rallied in the 7th inning5)Nothing will spark your team out of the doldrums like a little unnecessary, violent contact. Yes, I am a bitter Mets fan.

It has been fun to watch folks practice their statuary interpretation skills with the MLB rulebook. Let us look now:

https://twitter.com/jareddiamond/status/653388275772727297

Thank you Jared.

There is more then enough out there discussing if Utley should have been called out. This part of the issue is not all that engaging6)Remember kids, we only apply the "comment" of the rule in our statutory interpretation if the language of the statute is ambiguous. Our umpire friends are very professional, and I have little doubt that they are well-equipped to make such judgment calls7)After watching the Dodger stud starting pitching get 2 inches off the plate in either direction though, if they replaced the home plate umpire with a robot, I would not necessarily complain.

The interesting element of the play results from Utley being deemed safe at 2nd base without ever actually touching 2nd base. To understand why/how this is possible, we will need the assistance of a little contracts law..

 

Detrimental Reliance, Promissory Estoppel, and Chase Utley

After the umpires overturned the call and permitted Utley to return to second base, Mets manager Terry Collins went out to challenge the same call, insisting that a player cannot be safe if he never touched the bag.

This, strangely, is not true. In fact, it was a contracts concept called detrimental reliance applied in action.

How about a definition?

Determinant reliance: reliance by one party on the acts or representations of another, causing a worsening of the first party's position. Detrimental reliance may serve as a substitute for consideration and this make a promise enforceable as a contract.8)Black's Law Dictionary, Pocket Edition. 2006.

 

By calling Utley "out," incorrectly, Utley actually relied on the umpires to his detriment and prematurely headed back to the dugout.  The umpires then had no choice but to apply the general principle of promissory estoppel9)defined as "[t]he principle that a promise made without consideration may nonetheless be enforced to prevent injustice if the promisor should have reasonably expected the promise to rely on the promise and if the promisee did actually rely on the promise to his or her detriment." Black's. to make the situation right.

The legal concept of promissory estoppel is useful for judges to make all the parties of a contractual relationship whole if one of the parties of the contract acted with good-faith reliance (to his/her detriment) in presuming that the opposite party would abide by the terms of the contract.

Although not an exact fit in baseball, a similar principle applies with regard to players and instant replay. It is not reasonable for Utley to expect that the umpire got the call wrong as he is relying on the umpires to know the rules and make correct calls.

This is the big issue with instant replay in baseball10)this issue has gone on unaddressed all year: it creates a second, fake reality once the umpires make an out call. All plays in baseball are interconnected, meaning that an "out" call on one side of the diamond will effect how the other 10 or more players on the field act subsequently. It is impossible to go back into a sequence after-the-fact and determine what would have happened if the umpires had made a correct call.

Dare I say it, but instant replay is not a good fit for baseball. Maybe for home runs, but a bright demarcation needs to be drawn after that. The best example I have is that if the umpires would have initially called Utley "safe," then there is no way for him to have been permitted back to second base upon replay because he never actually touched the base! Yes, he was declared "safe" only because he was initially called "out."

This, like all rule changes in sport, will have to wait until there is an egregious error committed on the field that affects the outcome.

Enjoy the game this evening, a New Yorker just texted me with an update that yes, the rumors are true, there currently is a bat signal projected above Gotham...

 

Footnotes

Footnotes
1 This is not accurate
2 Seriously!
3 he has decent form in hitting a guy who does not see him
4 because he was not ejected for some reason
5 Nothing will spark your team out of the doldrums like a little unnecessary, violent contact. Yes, I am a bitter Mets fan.
6 Remember kids, we only apply the "comment" of the rule in our statutory interpretation if the language of the statute is ambiguous
7 After watching the Dodger stud starting pitching get 2 inches off the plate in either direction though, if they replaced the home plate umpire with a robot, I would not necessarily complain
8 Black's Law Dictionary, Pocket Edition. 2006.
9 defined as "[t]he principle that a promise made without consideration may nonetheless be enforced to prevent injustice if the promisor should have reasonably expected the promise to rely on the promise and if the promisee did actually rely on the promise to his or her detriment." Black's.
10 this issue has gone on unaddressed all year

Will I Get My Tax Refund if I File for Chapter 7 Bankruptcy?

 

What happens to your tax refund if you file for bankruptcy?

Transcript:

Hi. Matt MacArthur, Bankruptcy Attorney, Clear Counsel Law Group. I had somebody in my office the other day who was getting ready to file for Chapter 7 bankruptcy, and they asked a very common question. Am I going to be able to get my tax refund next year or am I going to lose it through filing for bankruptcy? The answer to this question is: it depends. Classic lawyer answer. It actually depends on a number of different things.

To answer the question, first, we need to back up a little bit and think what a Chapter 7 bankruptcy is. Chapter 7 bankruptcy is a liquidation bankruptcy. It involves the process of listing all of a persons assets and determining whether or not those assets are exempt or protected. Or whether they're going to be subject to liquidation or seizure by the bankruptcy court to be distributed to an individual's creditors in exchange for the discharge or the wipe out of the debt.

The question then becomes, so it relates to a tax refund, is a tax refund an asset that can be protected? This is where the depends part comes in. A tax refund is definitely an asset and it needs to be protected in order to be preserved for the individual to be able to keep the funds that come in the refund the following year. Whether or not it's something that can be protected is going to depend on what state the person is filing in and what state's exemptions or protective laws are available for this individual to claim as part of their bankruptcy process. It also depends on what the nature and make up of tax refund is. There are certain kinds of refunds that people will receive that contain something that's called Earned Income Credit. That's a very commonly protected portion of a tax refund. It also depends on the amount of the refund. There's several different factors that determine whether or not a person can keep their refund.

It's impossible for me to give a general answer for everyone whether or not they'll be able to keep their refund or not. Again, it's a very fact intensive analysis that we go through to determine whether or not a person can keep their refund.

If you come in and see me or another experienced bankruptcy attorney, I'll do my best to make sure we go through the facts of your particular case, and let you know, with a very high degree of certainty, what the outcome is going to be in relation to your tax refund for the following year. Until next time

 

How Bankruptcy can Assist You with a Payday Loan

 

How will bankruptcy protect me from the unfair terms of a payday loan?

Transcript:

Some of the most aggressive predators that we come across are payday loan lenders. These payday loan lenders are notorious for charging high interest rates and putting people in a situation where it's near impossible to pay off these loans and get back to square one. Question often arises where a client asks me, can we wipe out the payday loans, and what can we do to stop these payday loan lenders?

The bankruptcy laws apply to the payday loan lenders just like they do all other creditors that would normally be encountered in a bankruptcy case. Now there are a couple of unique situations that apply directly to these payday loan lenders. Because of their aggressive tactics, one common situation that we come across is that in order to sign up for a loan in the first place, our clients have already granted the payday loan lenders direct access to their bank account. Now this means when the money is owed, they simply go into your bank and they take it out.

What we find is that when we file for bankruptcy and we send out a notice of bankruptcy, there are situations where the payday loan lenders are slow to update their systems and they continue to take money out of your bank account even after you've filed for bankruptcy. That's why it's very important to find an attorney that is aware of these issues, that will contact the payday loan lenders immediately upon filing your bankruptcy so that there isn't this issue.

Now, sometimes it happens where these payday loan lenders, either they're incompetent and they don't update their systems to reflect there's a bankruptcy automatic stay in place. In other words, that they can't touch your money in your bank account. Or they simply are ignoring the bankruptcy laws. This is money that can be taken back from those payday loan lenders. As long as we filed for bankruptcy before they take the money, that's money that we can get back. Again, I urge you that if you have payday loans, to speak with a bankruptcy attorney who can help you fight these very aggressive creditors and keep them off your back.

Eviction, bankruptcy, nevada, las vegas

Can Bankruptcy Save Me from a Potential Eviction?

Being forcibly removed from your home with all of your belongings is a terrifying, but very real concern that is faced by individuals that have received a notice of eviction posted to their front door. An individual’s home is normally a place of sanctuary and refuge from the concerns of the outside world, however, when an eviction notice is posted, the turbulent storms of the outside world threaten to destroy this place of refuge and potentially leave the evicted person homeless. Fast action must be taken in order to avoid such a devastating result.

Finding a new place to live can often take weeks, let alone arranging for the transportation of personal belongings to the new residence. Once a notice of eviction is posted on your front door, however, you simply may not have that kind of time to make arrangements to leave on your terms.

 

How Bankruptcy Can Help With an Eviction

Perhaps the most powerful means to buy some additional time to make arrangements for securing a new residence is by filing for bankruptcy. The filing of a bankruptcy case invokes powerful federal laws that trump1)No, not that Trump local eviction laws, and these laws stay2)meaning cease any collection actions, including the eviction process. In other words, by filing a bankruptcy a person can put a stop to an imminent eviction from his or her home. Unfortunately, the stop put in place by the bankruptcy laws is likely only a temporary solution if the individual being evicted does not have the ability to get back in good standing with the landlord (i.e., paying back missed rent payments, etc.) relatively quickly.

Most people that I meet with in this situation, however, know that their time is limited and are not necessarily looking to stay in the property long term, but rather they are looking to buy a little additional time to find a new residence so they do not end up on the streets while simultaneously addressing any financial liability that may result from breaking a lease and being evicted. Filing bankruptcy will assist you with each of these objectives.

Additionally, as is often the case, people who face eviction often have more debts than just back rent. Since rent is usually the first bill that gets paid in most households, the fact that someone is behind on their rent is indicative of a person’s financial situation as a whole, where Peter has been robbed to pay Paul, and a host of other debt and financial liability is outstanding. By filing for bankruptcy, not only will it give a person some time to put their move in motion, but it will wipe out all other dischargeable debt holding a person down and allow for a fresh start financially.

If you are facing an eviction, I highly recommend speaking with an experienced bankruptcy attorney that can advise you regarding how much additional time a bankruptcy case would allow you, and whether or not you are a good candidate for the bankruptcy process.

Footnotes

Footnotes
1 No, not that Trump
2 meaning cease

Redemption: How to Declare Bankruptcy and Keep Your Car

 

Redemption Can Save Your Car in Bankruptcy

Transcript:

One of the worst investments you can make is to buy a brand new car and then to drive it off the lot. Everybody knows the moment you drive it off the lot the car depreciates in value. It's a very common situation for me to meet with people that have purchased a car and the financing is such that they owe much more on the car than the car is actually worth. There's something really cool that we can do to fix this terrible investment in a Chapter 7 Bankruptcy and it makes me pretty excited actually to tell you about this.

This is what we call a Redemption. The sound of that word just sounds good, Redemption. We've got this car; this car was a great car at one time. We wanted to buy it. We took out a big loan to pay for this car but now we're not so in love with the car anymore partly due to the fact that we owe so much money on the car.

What is a Redemption? A Redemption inside a Chapter 7 Bankruptcy is a situation where the car is worth less than what is owed and Chapter 7 Bankruptcy allows a person in this type of Bankruptcy to pay off this car for what the car is currently worth and not what you owe on the car under the contract terms. Now, a lot of people considering Chapter 7 Bankruptcy simply don't have the money, the thousands of dollars that's usually necessary to pay for the car in order to make the original creditor go away and release the title on the vehicle. However, we are able to obtain independent financing from a third party financial institution to obtain the funds and essential create a new loan for the car. This new loan is going to be for what the car is worth and not what you owe. We only do it in those situations where we're able to drop the principle amount owed on the car.

This also will be accompanied by lower monthly payments making the car more affordable in the near term future as well as the long term future. You may be thinking, "I'm filing for bankruptcy. I probably have very bad credit. How am I going to qualify for financing on this car?" There are lenders that specialize in this type of financing. It's going to result in a higher interest rate, usually in the neighborhood of 23-24% but if we're knocking off thousands of dollars off of the principle loan balance and we're able to lower your monthly payments t usually ends up being a good deal for you.

The really cool thing is if you've fallen behind on your monthly payments on your current car loan those monthly payments get rolled into the purchase of the vehicle and to the Redemption payoff. You're essentially starting a new loan in which you will be current and you won't be behind on your monthly payments anymore, the payments will be lower than what they were before and if you're able to pay off the car more quickly you're able to take advantage of that lower principle balance and the higher interest rates won't come back to bite you at all. I really believe in the Redemption process and it is a great option for a lot people that found themselves upside down in a car loan.

 

Make sure to subscribe to our YouTube channel! Thanks for watching.

wrongful death, tony stewart, nevada, las vegas, speedway

How the Tony Stewart Wrongful Death Case Would Turn Out in Nevada

I am sure that most of you have heard, at least in passing, about the horrible accident that took the life of race car driver Kevin Ward Jr.. Because the case has gotten so much play1)for better or worse in the press, I thought it might be an opportune time to apply the known facts of the incident to Nevada law so our readers have a better idea how a wrongful death tort works in practice.

 

What Happened

You should watch the cellphone video yourself and make your own determination of the facts (Warning: Graphic.). Ward died shortly after being hit by a race car that was driven by Tony Stewart.

On August 9, 2014, Ward and Stewart were racing winged sprint cars, which are the unusual looking buggy-like vehicles that have oversized spoilers on their roof and hood.2)Source They were racing on a short dirt oval track in the town of Canandaguia, New York.

Ward’s car crashed while the cars of Stewart and Ward were next to each other, possibly as a result of a relatively minor collision between the two. Ward exited his car and walked toward the middle of the dirt racetrack while the other race cars were still driving. Since the racetrack is a short oval, it only took about 22 seconds for Stewart’s car to come back around to where Ward was walking and pointing in the general direction of Stewart’s approaching car. It was then that Stewart’s car hit Ward and knocked him further down to the ground.

 

 

A Little Background on the Cars/Track/Drivers

The race involved 360 Winged Sprints; “360” refers to the cubic inch iron block size of the engine, which produce between 700 and 800 horsepower; the vehicles are light, typically less than 1,475 pounds, which results in a very powerful and light vehicle. For comparison sake, the top selling small car for 2014 was the Toyota Corolla, the mid-range LE model of which weighs 2,855 pounds and has 132 horsepower.

The oval track is 1/2 mile in total length, which just about double the length of a high school 400 meter track. The track appears slightly sloped with the outside being a little higher than the inside of the track; it is otherwise flat. In the middle of the oval, there are very few obstructions preventing spectators or racers to see the opposite side of the track.

It was nighttime and moderately well lit. It did not appear as well lit as a baseball park at a good community field, but lighting was sufficient to show many details from the stands on the opposite side of the oval.

Tony Stewart was 43 years old at the time; he was and is well known and a very experienced and successful NASCAR and sprint car racer. Kevin Ward Jr. was a local 20 year old sprint car racer who graduated from a South Lewis Central high school. His high school is located in the small town of Turin, New York, which is just a two and a half hour drive away from Canandaigua.

 

The Scope of Our Discussion

This is purely a hypothetical because it is an analysis of the claims of Ward’s estate and his decedents if the accident occurred in Nevada.

There are persons who may claim that Tony Stewart may have intended to harm Ward, but that issue will not likely prevail and will not be addressed here. The issues addressed here are whether Stewart’s actions were negligent, regardless of whether he intended on intimidating Ward or not. Next, even if it can be proved that Stewart was negligent, Ward was almost certainly negligent by placing himself in harm’s way through his actions of walking towards moving race cars during an active race. What would Ward’s negligence be and how would it affect the claim of his estate and heirs?

 

The Relevant Wrongful Death Law

In order to succeed on a wrongful death action in Nevada, a party must prove that “the death of any person, whether or not a minor, is caused by the wrongful act or neglect of another.”3)NRS 41.085. A legal cause is a “cause which is a substantial factor in bringing about the injury.”4)Nevada Jury Instructions – Civil 2011 Edition Inst. 4.16; Cnty. of Clark, ex rel. Univ. Med. Ctr. v. Upchurch, 114 Nev. 749, 759, 961 P.2d 754, 760 (1998).

Since wrongful death is a negligence claim, the family of the person who passed away must show that the “tortfeasor,” the person alleged to have caused the death, was actually negligent. The Nevada Supreme Court held that in order to demonstrate negligence the plaintiff must show:

(1) there was a duty owed;

(2) there was a breach;

(3) causation; and

(4) damages were suffered.5)Scialabba v. Barndise Const. Co., 921 P.2d 928, 930 (Nev. 1996) (citing Perez v. Las Vegas Med. Ctr., 107 Nev. 1, 4, 805 P.2d 589, 590 [1991]

 

The determination of duty is adjudicated by the court6)Turner v. Mandalay Sports Entm't, LLC, 124 Nev. 213, 220, 180 P.3d 1172, 1177 (2008). The remaining issues of negligence are fact intensive for a jury to decide.7)Doud v. Las Vegas Hilton Corp., 109 Nev. 1096, 1106, 864 P.2d 796, 802 (1993).

In Nevada, a defendant may assert a defense that the injured or deceased plaintiff was also negligent and the claim should be reduced by that percentage of negligence or eliminated.8)(NRS 41.1410). Nevada is a state that prevents recovery completely only if the plaintiff was more than 50% at fault9)Id.. If the plaintiff is 50% or less responsible for the incident, s/he may recover damages reduced by his or her share of the negligence.

 

How Does Nevada Law Apply to This Accident?

At this point, there are a number of facts that are not known that may be found through discovery in litigation. Aside from background information about the track and race, the only real piece of evidence available for analysis is the 52 second video taken by a cell phone of a witness. Other videos may exist as taken by other witnesses, Canandaigua Motorsports Park, or the organizers of the race, which has videos of other races on their website. We do not have the testimony of any depositions from Stewart, other racers, and other witnesses. They may be able to provide some important facts that we do not have. The opinions and testimony of experts will likely be required to explain to a judge or jury safe practices of drivers, track operators, and race organizers.

The rules of the Canandaigua Motosports Park and Empire Super Sprints also provide useful standards for determining the duties of the operators, organizers, and drivers. Under Section B.12 of Empire Super Sprints 2014 Rules of Conduct and Procedure, it states:

If there is an accident, the field will be restarted with the car or cars causing the restart, plus any stopped car, going to the rear of the field.

 

The rules leave much to be desired, for example, they do not define accident, restart, and or the procedures of a restart. The rules make multiple references to colors of flags indicating actions, but do not state what flag is flown after an accident to indicate a restart. They also do not state what actions are to be taken by the drivers upon notice of a restart. If the flag person communicated to the drivers that there was an accident, or just that there is to be a restart, then the drivers have no reason to be racing, driving quickly, or passing one another because rule B.12 also states that, except for those involved in the accident, the order of racers will be preserved for the restart. In the beginning of the video, there is a person on a raised stand near the spectator bleachers who has multiple colored at his feet. If the race organizer or director did not properly train its employees on how to respond to an accident, they may be subject to liability as well.

It makes sense that a restart was communicated to the drivers after the accident because in the first 13 seconds of the video, which was before and immediately after the crash, many of the racers traveled on the far outside of the track on the straight portion after the turn (one car passed just after the collision and while Ward’s car was still moving). After the first 13 seconds, approximately 18 cars can be seen in the foreground passing between Ward and the inside of the track prior to Stewart’s car hitting Ward, most of which appear to be much closer to the inside of the track than the outside. Only 3 more cars passed after Stewart’s, immediately after which a waiting ATV and truck quickly entered the track, which indicated that the people waiting to help Ward were probably able to see that these last 3 racers were the last to enter a line for the restart. According to the race results, there were a total of 22 racers. This makes a total of 24 cars, including Stewart’s and another that passed Ward’s car after the first collision. It is quite possible that a restart flag did not go up until after the first two cars passed the flag position and had to pass the accident scene twice.

Assuming that a restart was communicated, this shows three big reasons why a driver should have been traveling slowly. First, the cars should slow down and drive to avoid any stopped or disabled cars. There was not much dust to prevent visibility, the track was small, and the visibility out of the side of a sprint car is quite good; thus, a racer should easily be able to see a stopped car even from the opposite side of the track and on the approach sufficient to be able to avoid it.

Second, the cars had to be slowing down because they would presumably have to stop for the line-up in preparation for the restart. All three of the cars that came after Stewart's second collision drove past less than five seconds later; they were not driving quickly and one was moving so slowly you can almost read the words on the side of the tires.

Third, there was no reason to hurry because the order of the racers is preserved unless you are Stewart and Ward, both of whom were supposed to be sent to the back of the race for being involved in the collision (assuming Stewart’s car actually made contact with Ward’s car).

Based upon the information obtained from the video in combination with the rules and some assumptions, it appears that Stewart was likely negligent for failing to drive slowly and avoid Ward walking on the track. While it is difficult to tell exactly, it appears that after Ward exited his vehicle, three of the 18 passing cars did not drive past on the very inside of the track. Stewart was the last of the three. He had the most time to slow down of the three and he was the 17th of now-21 cars to enter the line for the restart. He likely had ample time to observe Ward on the track and to take actions to avoid him by traveling on the inside of the track just like most of the other safe drivers.

Some individuals have commented that Ward should not have been on the track so Stewart should be excused. That is similar to stating that any driver who hits a pedestrian on a freeway should face no liability. Drivers on a freeway still have obligations to drive safely and avoid hazards and other people, even if the pedestrian is not supposed to be there.

In regards to comparative negligence, there is little doubt that Ward is at least partially at fault for the unfortunate incident. Common sense dictates that a pedestrian does not belong in the middle of dirt racetrack where multiple vehicles are traveling. Furthermore, the 2015 Canandaigua rules, which were likely the same in regard to this section state:

Any driver involved in an accident, spin, or has a mechanical failure on the track MUST stay in their car until the Safety Crew arrives. If there is imminent danger of fire or leaking fluids you may exit the car and stand as close to the car as possible. If you exit your car you will be penalized.10)Source

 

Ward clearly violated this rule, which was for his own safety. The most difficult determination is whether Ward’s negligence exceeded Stewart’s. This decision would probably be affected by evidence not available to the public at this time such as whether Stewart “revved” his engine while passing Ward in an attempt to intimidate Ward, which would also suggest that the location of Stewart’s car closer to Ward was also part of an intimidation tactic. If so, this would show Stewart was behaving even more dangerously than the video shows. Assuming that there was an order for the racers to restart, Ward had some expectation of safety in walking on the track because the cars would be slowing down to get in line. While additional facts could tip my opinion either way, I am going to slightly side with Ward and argue that he was 45% at fault and Stewart was 55% at fault.

 

Concluding Thoughts from Our Hypothetical Wrongful Death Discussion

It would ultimately be up to a jury to decide whether Stewart should be held at fault for wrongful death of Kevin Ward Jr.. After Stewart’s and Ward’s cars appeared to have collided, causing Ward’s car to lose control and crash, it appears a restart of the race was ordered. Ward negligently walked on foot towards the middle of the track before all the cars stopped and approached Stewart’s car, which was moving when Ward’s body was tragically thrown. Stewart likely knew of the importance to slow down and stay away from the accident scene and appeared to only partially perform these actions. Thus, both men appeared to be negligent, yet Stewart appeared to be slightly more so.

Footnotes

Footnotes
1 for better or worse
2 Source
3 NRS 41.085.
4 Nevada Jury Instructions – Civil 2011 Edition Inst. 4.16; Cnty. of Clark, ex rel. Univ. Med. Ctr. v. Upchurch, 114 Nev. 749, 759, 961 P.2d 754, 760 (1998).
5 Scialabba v. Barndise Const. Co., 921 P.2d 928, 930 (Nev. 1996) (citing Perez v. Las Vegas Med. Ctr., 107 Nev. 1, 4, 805 P.2d 589, 590 [1991]
6 Turner v. Mandalay Sports Entm't, LLC, 124 Nev. 213, 220, 180 P.3d 1172, 1177 (2008
7 Doud v. Las Vegas Hilton Corp., 109 Nev. 1096, 1106, 864 P.2d 796, 802 (1993).
8 (NRS 41.1410
9 Id.
10 Source
Timeshare Rentals, probate, estate planning

Your Timeshare Trouble Will Not Die with You

Timeshares can be a source of endless fun and excitement. However, there is another side1)perhaps a bit nefarious of timeshares that cause significant anger and frustration. This can be said for timeshares while the owner is alive and even more so after s/he is deceased.

The complexity and frustration of transferring ownership in a timeshare after death depends on one simple factor, type of ownership.

Timeshares come in two different forms. A significant portion of the first category of timeshares are deeds. This would be similar to a home or condo. When the timeshare was purchased, a portion of the real property where the timeshare sits is deeded to the purchaser.

A smaller percentage of timeshares are in the second category, contractual right to use. For this type, there is not a deed or real property transfer. The owner of the timeshare has a contractual right to use the facility where the timeshare is located according to the time and dates specified in the contract.

Both types present different issues in transferring the interest in the property or the right to the property at the time of the owner’s life. I will first tell you a little more about each type of timeshare, then more importantly, how to avoid the costly probate process with timeshares.

 

Deeded Timeshares

In Nevada, if the timeshare is a deeded interest, then there must be a probate in Nevada in order to transfer the interest to the beneficiaries or heirs of the decedent. For example, if a Decedent was a resident of Ohio and passed away in Ohio, but held interest in a timeshare in Nevada by deed, then the Decedent would have a probate proceeding in Ohio and a separate probate in Nevada. A probate administration established for the sole purpose of transferring an interest in a timeshare is extremely time consuming and expensive, and most importantly, can be avoided.

 

Contract Timeshares

If the timeshare is a contractual “right to use” and the value of the timeshare is less than $20,000, then in Nevada the beneficiary or heirs of the Decedent can possibly transfer the interest by use of an Affidavit of Entitlement without any court proceedings, with the assumption that there are no other assets in Nevada. If the value is more than $20,000, then it may be necessary for a probate administration to be established. Similar to deeded timeshares, the need for probate can be avoided with contract timeshares.

 

Avoiding Probate

If you own a timeshare in another state or own more than one parcel of real property in different states, the easiest way to avoid costly probate is to create a revocable living trust. A trust, if funded properly, removes the assets from the jurisdiction of the courts and, upon death, the trust will pass ownership interest to the listed beneficiaries of the trust without court involvement. A trust will alleviate the necessity of creating numerous probates in different states.

If you own a timeshare, it is important to contact an estate planning attorney and put the timeshare in a living trust so you do not inadvertently burden your loved ones.  If you have inherited a timeshare, it is important to contact an attorney in the jurisdiction where the timeshare is located to determine your options.

Footnotes

Footnotes
1 perhaps a bit nefarious
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