If you are an accountant in Utah, you know that you have a friend in the Utah statutes, specifically Utah Code section 58-26a-602 (the Accountant Liability Statute). Your protection is that you only owe fiduciary duties to your client and not to others. The Utah Court of Appeals recently reiterated the strength of this protection in Reperex, Inc. v. Child, Van Wagoner & Bradshaw. I will outline the case, the accountant’s protections, and what accountants need to watch out for and, for persons attempting to rely on the accountant, how they can make the accountant accountable to them. Here we go. Continue reading “Utah Accountants Remain Well-Protected After Recent Utah Court of Appeals Ruling”
The Utah Supreme Court ruled against a debtor who asserted a novel defense to repayment of a $250,000 loan in default. The case is Crapo v. Zions Bank. The debtor claimed that once the bank sent him a Form 1099-C discharging his debt, the bank could no longer attempt to collect the bad debt from him. Failure to act reasonably by the debtor, however, ultimately barred the debtor’s defense. And, while the debtor’s defense appeared a bit stronger on its face than it actually was, you can see in details are below it appeared he was gaming the system by not getting more information before purportedly relying on the bank’s conduct. Continue reading “The Utah Supreme Court Again Requires Reasonable Conduct Under the Circumstances”
When you start a business in Utah, you are going to make money. When you make money, you will have to pay taxes. The type of business you create will determine how you account to the IRS for the money you make. The four business entities that an entrepreneur will typically encounter are partnerships (including limited liability companies), C corporations, S corporations, and disregarded entities. Continue reading “Important Tax Considerations in Starting a Business in Utah”
The Utah Court of Appeals recently provided a quick and dirty summary of basic contract terms in Lebrecht v. Deep Blue Pools, 2016 UT App 110. The case also provides a primer for creating an enforceable settlement agreement without an attorney. Let’s take a look. Continue reading “Basic Contract Terms in Utah”
What happens when you suffer harm from a breach of contract that you cannot prove or would have a very difficult time proving? Such as for a delay? Often your damages will go unreimbursed.
One typical situation is for delay in contract performance– “Time Is Money,” right? The proof of damages under this axiom is often nearly impossible or at least impractical. For example, if a construction delay causes you to open your new business four weeks later than planned, how do you prove damages? You have no history of income and it would be claimed that any damages would be pure speculation. Enter liquidated damages. Continue reading “How to Use a Liquidated Damages Clause in Utah Contracts”