NEW YORK · No. 11 Civ. 1590 (LTS)(HBP) (S.D.N.Y. Sep 30, 2013)UNIVERSITAS EDUC., LLC V. NOVA GRP., INC.S.D.N.Y. UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK NO. 11 CIV. 1590 (LTS)(HBP) NO. 11 CIV. 8726 (LTS)(HBP) 2013-09-30 UNIVERSITAS EDUCATION, LLC, PETITIONER, V. NOVA GROUP, INC., RESPONDENT. NOVA GROUP, INC., PETITIONER, V. UNIVERSITAS EDUCATION, LLC, RESPONDENT.
MEMORANDUM ORDER ADOPTING REPORT AND RECOMMENDATION On May 21, 2013, Magistrate Judge Henry Pitman issued a thorough and well reasoned Report and Recommendation (docket entry no. 252,1 the "Report") regarding the motion of Universitas Education, LLC ("Universitas"), pursuant to Federal Rule of Civil Procedure 11 for sanctions against Nova Group, Inc. ("Nova"), and its attorney Jack E. Robinson, III, Esq., for conduct during litigation of a renewed motion
Claims Trimmed In $1.9M Lincoln National Tax Shelter Row By Eric Kroh
Law360, New York (August 25, 2015, 6:50 PM ET) -- A North Carolina federal judge on Tuesday said negligence claims were time-barred in a $1.9 million suit filed by a businessman accusing Lincoln National Life Insurance Co. of disguising abusive tax shelters as employee welfare benefit plans. Dennis J. Reittinger's 2013 lawsuit is also too late in alleging unjust enrichment on behalf of the insurer and that unfair and deceptive trade practices led to his purchase of the Benistar 419 Plan from Lincoln, Judge Catherine C. Eagles said in the order granting the insurer’s motion for summary judgment. The only remaining claims to be addressed are for breach of fiduciary duty and constructive fraud, which the court is still considering, Judge Eagles said.
“It is undisputed that the statutes of limitations for all claims except breach of fiduciary duty and constructive fraud are less than six years,” Judge Eagles said. “This lawsuit was not begun until 2013, some six years after plaintiffs’ claims accrued.”
Reitinger also cannot seek to recover amounts he paid in back taxes, as they are not recoverable as a matter of law, and damages arising out of foregone investment opportunities are also out of reach because plaintiffs have not proven the extent of the losses, Judge Eagles said.
Lincoln had argued in a summary judgment motion that it was not responsible for the tax liabilities from Reittinger's purchase of the now-infamous Benistar 419 Plan because he signed an acknowledgement that he did not receive any tax advice from Lincoln’s predecessor, which had worked with him on the policy.
Reittinger responded that the court should not nix his claims on that basis, because he never had the tax savvy necessary to understand the details of the Benistar plan.
As a result, he relied upon the purported expertise of Lincoln and its agent Jim Graves, according to Reittinger, the multimillionaire president of a North Carolina auto body shop. It was Graves who urged Reittinger to sign the multiple documents and disclaimers prior to investing in the plan and reassured him that the plan was aboveboard, he said. He sued Lincoln seeking to recover over $1.9 million in damages
Welfare benefit plans are employer-sponsored plans that provide various benefits to employees like life or health insurance. Plans that have multiple contributors, like the Benistar 419 Plan, receive preferential tax treatment. In the case of the Benistar plan, employers would make contributions that the insurer allegedly claimed were tax deductible as ordinary and necessary business expenses, according to Reittinger’s complaint.
Lincoln allegedly used its life insurance policies as funding vehicles for the plans, and Reittinger claims the Benistar 419 Plans were in actuality illegal tax shelters that exposed him and others to IRS audits, penalties and other tax liabilities.
Reittinger maintains that Lincoln marketed the Benistar 419 Plans against the advice of their general counsel and assured him that the plan was legitimate, yet also issued several disclaimers about the program.
Reittinger, his deceased wife, Karen Reittinger, and Mid-Town Body Repair Inc. are represented by Julia C. Ambrose, Robert J. King and David Smyth of Brooks Pierce McLendon Humphrey & Leonard LLP.
The Lincoln National Life Insurance Company is represented by Robert R. Marcus, C. Bailey King and Timothy P. Lendino of Smith Moore Leatherwood LLP.
The case is Reittinger et al. v. The Lincoln National Life Insurance Co., case number 1:13-cv-00954, in the U.S. District Court for the Middle District of North Carolina.
--Additional reporting by Caroline Simson. Editing by Patricia K. Cole.
NEW YORK · No. 11 Civ. 1590 (LTS)(HBP) (S.D.N.Y. Sep 30, 2013)UNIVERSITAS EDUC., LLC V. NOVA GRP., INC.S.D.N.Y.
ReplyDeleteUNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
NO. 11 CIV. 1590 (LTS)(HBP) NO. 11 CIV. 8726 (LTS)(HBP)
2013-09-30
UNIVERSITAS EDUCATION, LLC, PETITIONER, V. NOVA GROUP, INC., RESPONDENT. NOVA GROUP, INC., PETITIONER, V. UNIVERSITAS EDUCATION, LLC, RESPONDENT.
--------------------------------------------------------------------------------
LAURA TAYLOR SWAIN
MEMORANDUM ORDER ADOPTING REPORT AND RECOMMENDATION
On May 21, 2013, Magistrate Judge Henry Pitman issued a thorough and well reasoned Report and Recommendation (docket entry no. 252,1 the "Report") regarding the motion of Universitas Education, LLC ("Universitas"), pursuant to Federal Rule of Civil Procedure 11 for sanctions against Nova Group, Inc. ("Nova"), and its attorney Jack E. Robinson, III, Esq., for conduct during litigation of a renewed motion
Claims Trimmed In $1.9M Lincoln National Tax Shelter Row
ReplyDeleteBy Eric Kroh
Law360, New York (August 25, 2015, 6:50 PM ET) -- A North Carolina federal judge on Tuesday said negligence claims were time-barred in a $1.9 million suit filed by a businessman accusing Lincoln National Life Insurance Co. of disguising abusive tax shelters as employee welfare benefit plans.
Dennis J. Reittinger's 2013 lawsuit is also too late in alleging unjust enrichment on behalf of the insurer and that unfair and deceptive trade practices led to his purchase of the Benistar 419 Plan from Lincoln, Judge Catherine C. Eagles said in the order granting the insurer’s motion for summary judgment. The only remaining claims to be addressed are for breach of fiduciary duty and constructive fraud, which the court is still considering, Judge Eagles said.
“It is undisputed that the statutes of limitations for all claims except breach of fiduciary duty and constructive fraud are less than six years,” Judge Eagles said. “This lawsuit was not begun until 2013, some six years after plaintiffs’ claims accrued.”
Reitinger also cannot seek to recover amounts he paid in back taxes, as they are not recoverable as a matter of law, and damages arising out of foregone investment opportunities are also out of reach because plaintiffs have not proven the extent of the losses, Judge Eagles said.
Lincoln had argued in a summary judgment motion that it was not responsible for the tax liabilities from Reittinger's purchase of the now-infamous Benistar 419 Plan because he signed an acknowledgement that he did not receive any tax advice from Lincoln’s predecessor, which had worked with him on the policy.
Reittinger responded that the court should not nix his claims on that basis, because he never had the tax savvy necessary to understand the details of the Benistar plan.
As a result, he relied upon the purported expertise of Lincoln and its agent Jim Graves, according to Reittinger, the multimillionaire president of a North Carolina auto body shop. It was Graves who urged Reittinger to sign the multiple documents and disclaimers prior to investing in the plan and reassured him that the plan was aboveboard, he said. He sued Lincoln seeking to recover over $1.9 million in damages
Welfare benefit plans are employer-sponsored plans that provide various benefits to employees like life or health insurance. Plans that have multiple contributors, like the Benistar 419 Plan, receive preferential tax treatment. In the case of the Benistar plan, employers would make contributions that the insurer allegedly claimed were tax deductible as ordinary and necessary business expenses, according to Reittinger’s complaint.
Lincoln allegedly used its life insurance policies as funding vehicles for the plans, and Reittinger claims the Benistar 419 Plans were in actuality illegal tax shelters that exposed him and others to IRS audits, penalties and other tax liabilities.
Reittinger maintains that Lincoln marketed the Benistar 419 Plans against the advice of their general counsel and assured him that the plan was legitimate, yet also issued several disclaimers about the program.
Reittinger, his deceased wife, Karen Reittinger, and Mid-Town Body Repair Inc. are represented by Julia C. Ambrose, Robert J. King and David Smyth of Brooks Pierce McLendon Humphrey & Leonard LLP.
The Lincoln National Life Insurance Company is represented by Robert R. Marcus, C. Bailey King and Timothy P. Lendino of Smith Moore Leatherwood LLP.
The case is Reittinger et al. v. The Lincoln National Life Insurance Co., case number 1:13-cv-00954, in the U.S. District Court for the Middle District of North Carolina.
--Additional reporting by Caroline Simson. Editing by Patricia K. Cole.