Alaska LLC Operating Agreements

Alaska LLC Operating Agreements

Partnerships have been around forever.  Corporations have been with us for 400 years. The American LLC was invented in Wyoming in 1977.  Alaska joined the fray more recently; however, they seem to have selected this entity as their entity of choice because the state makes it available for self filing online.  An Anchorage LLC lawyer helps point out some of the issues the State leaves out on their web site and why a visit with a lawyer can pay dividends later. Continue reading “Alaska LLC Operating Agreements”

Alaska Contractor’s Outlook with Government Shut Down

Government Shut Down Affects Contractors
http://flickr.com/photos/84539227@N00/10111702255

How will the government shut down affect Alaska contractors?

Considering all the moving parts and implications of the government shutdown what should Alaska contractors focus on now.  In short, brace yourself, what is happening now is not a one-off situation; this is  ground-zero for the foreseeable future.

Sequestration happened in March.  During that time federal job losses averaged 9,000 per month, or 72,000 jobs lost. We anticipate that federal payroll decline will escalate.

We expect continued:

1. Reduction in new contracts;
2. Changes in administration contract administration on existing contracts;
3. Changes in procurement type;
4. Increase in Bid Protest activity; and
5. Increase in CDA Claims activity

Cost and need will drive new contracts. The government will likely focus on existing programs over long-term projects. On vehicle usage, conservatism should be anticipated as the rule; the Fed has lots of flexibility for greater restrictions – so dot the I’s and cross the T’s.  You can expect a frequent use legacy indefinite in quantity contracts  (IDIQ) and a desire to lock contractors in to  Firm Fixed Price contracts.

Alaska Contractors can expect the government to offload risk to the contractor community.  Alaska Contractors will need to  manage this increased risk.  Alaska Contractors should approach opportunities with a focus on discipline and rigorous risk evaluation. Fully-funded contracts and phases should be safe; forward phases and contract options are  at risk and should be re-negotiated as soon as possible.

The same applies to your IDIQ task-orders.  The funded task or delivery orders should be safe.   Those that are not are at risk. You should determine 1) whether your contract relates to a sequestration exempt program; 2) whether it is impacted by any new congressional budget, 3) whether it is fully or incrementally funded, 4) when the agency anticipates exercise of options or issuance of task orders, and 5) what changes are planned.

With scarce contract opportunities; we expect an impact on Bid Protests and CDA Claims. The GAO shutdown creates doubt that protests will trigger an automatic stay.   If the GAO protests fails to stop disputed contracts, you may reconsider rolling the dice in more expensive litigation at the U.S. Court of Federal Claims. However, if you decide to engage the GAO; the Agency has issued guidance to federal contractors about how bid protests and related filings will be handled during this period.

Alternatives to Selling My Annuity

Alternatives to Selling My Annuity

People have all seen the J.G. Wentworth advertising “Its my money and I want it NOW!”  They’ve done a great job of getting people interested in immediate gratification from their rights to future money.  Many people become reliant on the receipt of those future funds and fail to realize the other options available to them.

Borrowing Money Inside the Annuity Contract

Some annuities and insurance policies provide for borrowing against the future sums that they owe you in the contract.  You need a copy of the annuity contract to know if this is possible.  Generally the transaction costs are much lower on these types of transactions.  They can be the cheapest way to get funds early.

Continue reading “Alternatives to Selling My Annuity”

Valuing My Money — Like an Investor. What is it worth?

This is part two of a series on selling your rights to money in the future.  These rights may arise from an:

  • annuity,
  • structured settlement,
  • court judgment,
  • court settlement,
  • note payments or
  • other contract rights for money in the future.

When the dollars you will receive and the dates for their payment are known values for the payments may be described with precision.  When the payments are all the same size and the dates are uniformly separated the value may be expressed by resorting to single formulas.  When the amounts and dates change then the formulas become more complicated.  The formulas related to valuing these transactions are taught as upper level college courses, but you could take an online class here.  It is impossible to teach an entire college course in a single blog post.  Much less the issues related to the secondary market on annuities.  (You can find a great book on that here.)  The formulas generally reduce the comparison to a single number called the discount rate.  You can look for their statement of the discount rate applied.  You should then find someone competent to independently verify that the rate the state is actually the rate computed.

Continue reading “Valuing My Money — Like an Investor. What is it worth?”

My Money Now!

A judge asked me to publish a list of structured settlement buyers soliciting business from Alaskans.  He wanted Alaskan’s to find competitive bidders.  To many Alaskans come to court to approve a sale and only have a single bid because they can’t find another bidder.

40% Excise Tax on Buyers without Court Approval

Judges are required to evaluate the fairness of the structured settlement transactions.  When the buyer gets a judge to approve their purchase, then the buyer isn’t required to pay the 40% excise tax to the IRS on the transaction.  The problem is most judges never took finance so they can’t quickly evaluate whether it is a good deal.  The person selling doesn’t have a clue on how to evaluate the matter and they think they can’t afford an expert to evaluate the value.  Furthermore, the underlying rights may be very complex and a simple finance equation may not resolve the issue.  That is one of the reasons people historically require competitive bids to evaluate whether the deal is reasonable.  Buyers tend to be experts.  But, buyers tend to only use the sharpest pencil when in competition with others.  That is why public projects are put out to bid.  Annuities shouldn’t be any different.

Those Who Want My Money Now — Need Multiple Bidders

To get the best price for anything, you have to have multiple bidders.  Just because you have only seen the commercials from one company doesn’t mean their are not more buyers available. This list is provided to help Alaskans find more bidders for their future cash.

If these people think that you are letting them be a sole source bidder they will likely low ball the offer.  If you let them think the matter is urgent and that selling is your only solution, they will low ball the offer.  Selling probably isn’t the only solution to your need.  Those three issues are topics for another post.  This post is simply about finding more bidders.

There are rumors that there are at least two buyers in Alaska.  However, they do not appear to maintain a web presence.  If any company would like to be added to the list of prospective bidders, please forward the information about who you are, where you are located, what instruments you are interested in and your contact numbers, including a web site.

Disclaimer About the My Money Buyer List

I do not endorse any of these companies.  I have never represented any of these companies.  I have represented clients that had offers from a few of these companies.  I have represented clients that received substantially better offers after they engaged my services.   My experience dealing with these companies is that they will offer low amounts of cash for your rights.  They will also do everything they can to make you commit to only negotiating with them.  In every case I have handled, these same companies will pay substantially more money than their first offer.  The list also does not attempt to discover or disclose any financial relationships between these entities.  However, J.G. Wentworth and PeachTree Settlement Funding are owned by the same entity.  They know when they are bidding against each other for business.  Accordingly, don’t rely on bids between these entities alone.  In competitive bidding scenarios any one of them may become the highest bidder.

The inspiration for this table came from Vaughn’s List, which can be found here.  I added the additional research on whether the business registered to conduct business in Alaska.  I also eliminated one entity from his list that no longer appears to be doing business.

I noticed that he reports problems with J.G. Wentworth.  Apparently J.G. Wentworth does  not appreciate unsolicited back-links to its domain.  Apparently they have threatened Mr. Vaughn with litigation over the link.  J.G. Wentworth has claimed that its recent financial misfortunes are due to Google punishing J.G. Wentworth due to his back link.  But, it appears that the real reason for J.G. Wentworth’s financial misfortunes arise from Moody’s down grading the company, see their report. Moody’s reported that J.G.Wentworth planned on going public but didn’t and then decided to issue massive dividends to the private investors. Moody’s stated “Net proceeds from the $425 million Senior Secured Term Loan issuance will be used to finance a $309 million capital distribution to JGW’s shareholders as well as to repay an existing $142 million term loan.” Almost a third of a billion dollars in profits being distributed to private investors from the profits of giving people My Money now.

 

Future Articles about My Money:

  1. Viewing My Rights to My Money — Like an Investor.  What is it worth?
  2. Alternatives to Selling My Money.
  3. They offered enough for My Money to get a new Snow Machine — What a Deal?
  4. Negotiation Strategies for Selling My Money
  5. I’m Selling My Money — But They Say We Have to Go To Court
  6. Picking an attorney to evaluate your My Money Sale
  7. 40% Excise Tax on Buying My Money
  8. Buyer’s Attorney Has no Conscience Will Help You Give Your Money Away

Clayton Walker

Alaska Online Workman Compensation Coverage Checker

Workers’ Compensation Requirements for Employer
Requirements for Employers

The Alaska Workers’ Compensation Act requires each employer having one or more employees in Alaska to get workers’ compensation insurance, unless the employer has been approved as a self insurer. Determining employee status is accomplished utilizing the relative-nature-of-the-work-test as set out in Alaska Regulation 8 AAC 45.890.

There are few exceptions to those who must be covered under a workers’ compensation policy. Generally speaking, those include: sole proprietors in a sole proprietorship; general partners in a partnership; executive officers in a nonprofit corporation, members in a member managed limited liability company, part-time baby-sitters, cleaning persons (non-commercial), harvest help and similar part-time/transient help, sports officials for amateur events, contract entertainers, commercial fishers, taxicab drivers whose compensation is by contractual arrangement, a participant in the Alaska temporary assistance program, and professional hockey team players and coaches if those persons are covered under a health care insurance plan. In addition, executive officers in a for-profit corporation may exempt themselves by filing an Executive Officer Waiver with the department.

Businesses get Insurance coverage from commercial insurance carriers. Employers should contact their insurance agent or broker to buy a workers’ compensation policy. Businesses unable to get coverage from an insurance company, may buy insurance through Alaska’s Assigned Risk Pool.  The National Council on Compensation Insurance (NCCI) administers Alaska Pools. Alaska does not have workers’ compensation group pools. Once an employer has coverage, they must give proof of workers’ comp insurance to the Division of Workers’ Compensation on form 07-6119 (usually submitted by the insurance company). There are huge civil and criminal penalties that apply to an employer who fails to keep up coverage and/or fail to pay compensation.

The the employer’s payroll, type of business risk (classification assignment), and the employer’s loss history determine the cost for coverage. If an employer believes that their premium is too high, or that their business is improperly classified, they can request arbitration from the NCCI, and the Alaska Review and Advisory Committee.

Alaska Online Workman Compensation Coverage Checker

So, who wants to know if a given employer has worker’s compensation coverage.  Employees want to know, because if they are hurt they would like insurance to pay for the hospital bills.  Property owners hiring contractors want to know because they are liable for injured workers if the contractor fails to insure his workers.  General contractors want to know because they hire subcontractors and need to know they are hiring insured workers.  Business owners want to know if their leased employees are actually covered by the employee leasing company.  Business owners also want to know that their competitors carry insurance — because they want to make sure the competition is paying their fair share of injured worker claims.  Alaska provides the following checker here:

Alaska Employer Workman Compensation Coverage Verification

This link takes you off site.  When clicking on the coverage verification link above, you will be leaving our site and going to an external web site not maintained by us or the Alaska Department of Labor.  This is the same site the Alaska Department of Labor would presently uses for verification.  The list does not include self insured businesses nor those employers for which coverage is provided on a statutory basis.  The site requires cookies and javascript to be enabled in order for it to function correctly.

If you are an employer and have been served with a Failure to Insure for Workers’ Compenstion Liablity, a discovery demand and give us a call at 907-375-9226.

 

 

 

 

Property Damage Lawyers Defeats Insurance Company Exclusion Claim

The Knowles owned rental property. Fidelity Co-operative Bank (Fidelity) owned the mortgage on the property.   Nova Casualty Company (Nova) insured the property. A 2008 tropical storm caused substantial damage to the building interior.   The Town  closed the building. The Knowles submitted a claim for reimbursement for the water damage with Nova, which denied the claim. Due to Nova’s denial of coverage the Knowles could not afford to repairs the building.  The building remained vacant and was vandalized. Nova also refused to cover the vandalism claim. The Knowles defaulted on their mortgage due to the lack of rent.  Rather than foreclosing In 2010, Fidelity, individually and as assignee of the Knowles, pursued the insurance claim against Nova for the property losses and the lost business income under the all-risk insurance policy. The trial court granted summary judgment for the insurer. The  Appeals Court reversed and ordered the parties to trial on the damage claims.

The full decision is  here.

If you are a lenderproperty owner, property manager or real estate agent with a client that has incurred property damage that you think an insurance policy should cover, give us a call at 907-375-9226 for an appointment to review the matter.

Clayton Walker, JD

Anchorage Business Attorney

Alaska Law Offices, Inc.