Business succession planning for contingent fees is important. The fight between your family and your former partners can be avoided. The example in the case below should motivate you to employ estate planning ideas in your partnership agreement. Alternatively, a buy sell agreement funded by insurance could have helped. It could have saved a lot of time and attorneys fees at the end.
THE SUPREME COURT OF THE STATE OF ALASKA
Supreme Court No. S-14060 Superior Court No. 3KN-04-00052 PR OPINION No. 6779 – May 3, 2013
SUZANNE C. DIMEFF and THE OLETA COWAN TRUST, Appellants,
ESTATE OF ROBERT MERLE COWAN and DALE DOLIFKA, PERSONAL REPRESENTATIVE OF THE ESTATE OF ROBERT COWAN, Appellees.
On March 24, 1989, the oil tanker EXXON VALDEZ ran aground on Bligh Reef in Prince William Sound, spilling 11 million gallons of crude oil. Litigation followed — in what became known as the Exxon Valdez Oil Spill (EVOS) Litigation, over 50 law firms and 30,000 plaintiffs appeared before the United States District Court for the District of Alaska.
Several years later, compensatory damages were calculated at $507.5 million and punitive damages at $2.5 billion. Continue reading “Business Succession Planning for Contingent Fees”