DC Metropolitan Business Law Alert

DC Metropolitan Business Law Alert

Category Archives: Limited Liability Companies

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Maryland Lawmakers (Partially) Resurrect the IDOT.

Posted in Finance, Lending Law, Limited Liability Companies, Loan Enforcement, Local News, Maryland Law, Property, Real Estate, Tax
A year has passed since the Maryland legislature enacted a law that eliminated the recordation tax advantage gained by using an indemnity deed of trust (“IDOT”) in most Maryland counties (see our post from May 16, 2012, “Maryland Legislature Effectively Kills the IDOT”). Now just as zombies have overtaken vampires in popular culture, the Maryland … Continue Reading

New Maryland Legislation Would Expand Real Property Transfer and Recordation Tax Exemption to Affiliated LLC Transactions.

Posted in Construction Law, Corporations, Kelley Drye, Limited Liability Companies, Local News, Maryland Law, Property, Real Estate, Tax
On April 8, 2013, the Maryland legislature passed a bill that, following the Governor’s signature (which is expected), will now extend a real property transfer and recordation tax exemption to certain transfers among affiliated limited liability companies.  Currently, Sections 12-108(p) and 13-207(a)(9) of the Maryland Code provide an exemption from real property transfer and recordation taxes for … Continue Reading

Calculating Lost Profits, Maryland Style

Posted in Business Litigation, Construction Law, Corporations, Damages, Homebuilder Law, Limited Liability Companies, Local News, Maryland Law, Property, Real Estate
In CR-RSC Tower I, LLC v. RSC Tower I, LLC the Maryland Court of Appeal held that evidence of post-breach market conditions is not admissible to mitigate consequential lost profits if the contracting parties did not contemplate future market conditions at the time they entered into the contract. Specifically, the court determined that “consequential lost … Continue Reading

Maryland Legislature Effectively Kills the IDOT

Posted in Corporations, Finance, Foreclosure, Lending Law, Limited Liability Companies, Local News, Maryland Law, Partnership, Property, Real Estate, Tax
The Maryland Senate’s passage of the widely debated and publicized Budget and Taxation bill effectively eliminates a long-used approach to avoid the current payment of mortgage recordation taxes on a commercial real estate loan. Rather than providing a direct deed of trust on the real estate to secure the loan, the property owner would create a … Continue Reading

Virginia Supreme Court Ruling Denies Real Property Taxation of Non-Exempt Entity for Taxes Associated with an Exempt Entity’s Ownership Interest in Property Owned as Tenants in Common.

Posted in Business Litigation, Corporations, Limited Liability Companies, Property, Real Estate, Tax, Virginia Law
The Virginia Supreme Court recently considered whether a municipal corporation has the authority to impose additional real property taxes against a tax paying entity which owns real property as a tenant in common with a tax exempt entity.  The court held that there is no such authority. The City of Richmond sought to impose real property … Continue Reading

Virginia Supreme Court Takes On Non-Competition Agreements

Posted in Business Litigation, Corporations, Employment & Labor, Limited Liability Companies, Partnership, Virginia Law
Virginia businesses and employees are eagerly awaiting rulings from the Virginia Supreme Court on two cases that it has heard or is preparing to hear concerning the enforceability of non-competition agreements between employers and employees.  The results of these cases should provide businesses and employees in Virginia with greater clarity on the scope of enforceable … Continue Reading

Maryland Bar Business Law Section Proposes Revisions to MD LLC Act

Posted in Limited Liability Companies, Local News, Maryland Law, Real Estate
On January 6, 2011 a business law committee of the Maryland State Bar Association released a report  detailing its proposed revisions to the Maryland Limited Liability Company Act (the “LLC Act”).  The proposed revisions are intended to strengthen the LLC Act to ensure that “the maximum effect [is given] to the principle of freedom to contract and … Continue Reading