Presenting a live 90-minute webinar with interactive Q&A Personal Injury Settlement and Release Agreements: Confidentiality, Tax Liability, Indemnity and Other Complex Issues Drafting and Negotiating Enforceable Agreements That Maximize Damages and Minimize Tax Consequences WEDNESDAY, JANUARY 20, 2016 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific Today’s faculty features: Wyatt Wright, Wayne Wright LLP, San Antonio, TX The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10. Settlement Releases: You Want Me To Sign What?! Wyatt Wright, Esq. WAYNE WRIGHT, LLP 5707 W. Interstate 10 San Antonio, Texas 78201 (210) 734-7077 Telephone (210) 734-9965 Facsimile [email protected] Offices in: San Antonio, Texas Austin, Texas Corpus Christi, Texas El Paso, Texas St. Louis, Missouri (operating as Wyatt Wright, LLC) Strafford Webinars January 20, 2016 © 2006-2016 Mr. Wyatt Wright, Esq. WAYNE WRIGHT, LLP 5707 W. Interstate 10 San Antonio, Texas 78201 www.WayneWright.com Email: [email protected] Direct Telephone: (210) 785-3949 “The gravity of time, from the human perspective, is infuriatingly both illusory and pointedly demonstrable.” Wyatt Wright With offices in Texas and Missouri, Wyatt Wright is a seasoned litigator handling cases nationwide. He has a preference for handling cases related to breaches of contract, bad faith insurance, complex trucking crashes resulting in serious injury or death, as well as dangerous product and drug injuries. Mr. Wright is actively licensed to practice law in the District of Columbia and in thirteen states (Arizona, Illinois, Kansas, Kentucky, Minnesota, Missouri, Nebraska, New Mexico, North Dakota, Pennsylvania, Texas, Washington, and Wyoming). He is also licensed to practice before the U.S. District Court for the Southern District of Illinois; all four U.S. District Courts in Texas; U.S. Court of Federal Claims; U.S. Tax Court; U.S. Court of International Trade; the 5th, 9th, and 10th U.S. Courts of Appeals; and the U.S. Court of Appeals for Veterans’ Claims. Mr. Wright holds a Bachelor of Science in Criminal Justice from Southwest Texas State University and a Juris Doctorate from St. Mary’s University School of Law. Mr. Wright has been named as a Top 100 Trial Lawyer by the National Trial Lawyers, is a life member of both the Multi-Million Dollar Advocates Forum and the Million Dollar Advocates Forum and has received numerous other accolades. As a lecturer Mr. Wright regularly speaks to legal audiences nationwide on topics related to personal injury litigation, such as settlement release issues, bankruptcy in personal injury cases, personal and subject matter jurisdiction issues and suing and serving artificial entities. Active in the legal community, Mr. Wright serves as a member of: American Association for Justice (Leaders’ Forum); Texas Trial Lawyers Association (Sustaining Member); Missouri Association of Trial Attorneys; Illinois Trial Lawyers Association; Arizona Association for Justice; Association of Plaintiff Interstate Trucking Lawyers of America; Pound Civil Justice Institute (current Fellow); American Constitution Society for Law and Policy; and, has served as President of both the San Antonio Trial Lawyers Association and the Society of Ethical Attorneys at Law. Mr. Wright strongly believes in helping those who cannot help themselves. He is a leader in providing legal services to pro bono programs, such as the American Bar Association’s Military Pro Bono Project, and other local programs. He also serves as the panel chair on a bar grievance committee which hears complaints against other lawyers. Mr. Wright previously served on a supreme court Unauthorized Practice of Law subcommittee. For years, Mr. Wright also advocated for the rights of common citizens through his weekly radio program entitled The Wyatt Wright Show (Justice for All) where he highlighted Congressional, legislative and court attacks on consumer rights and access to the courts. As far as other avocations/interests are concerned, Mr. Wright was a police officer for nearly 20 years including serving as Chief of Detectives for a municipal agency. Mr. Wright holds the law enforcement rating of “Master Peace Officer,” the highest attainable, and is also a licensed police instructor and firearms instructor regularly providing continuing training to officers. Mr. Wright is licensed by the U.S. Coast Guard as a Captain (Master) of Near Coastal 50 Gross Ton ocean-going vessels with a commercial assistance towing endorsement. Mr. Wright has a special affinity for water, especially the oceans. So it is no surprise that he is also a licensed SCUBA diving instructor, having certified several hundred divers in his career. Mr. Wright is also licensed by IBM as a computer repair technician. Mr. Wright believes that if you miss seeing the sun rise, then your day is already a loss. Settlement Releases: You Want Me To Sign What?! TABLE OF CONTENTS I. INTRODUCTION—THE SETTLEMENT AGREEMENT ............................................................................. 1 II. WHO GETS RELEASED? ................................................................................................................................ 2 III. CONSIDERATION (How much is enough?) .................................................................................................... 2 IV. TAX CONSIDERATIONS ................................................................................................................................ 4 A. Gross Income Considerations .................................................................................................................. 4 B. Confidentiality Clause Tax Considerations ................................................................................................. 4 C. Indemnity Clause Tax Considerations ......................................................................................................... 5 D. Mechanics of Drafting to Avoid Adverse Tax Implications ....................................................................... 5 E. An Alternative Approach to Handling Confidentiality Consideration ........................................................ 6 V. CONFIDENTIALITY .................................................................................................................................. 6 A. Overview ..................................................................................................................................................... 6 1. View From the Plaintiff’s Seat.............................................................................................................. 6 a. Liquidated Damages as a Remedy.................................................................................................. 7 b. Overly Broad Restrictions .............................................................................................................. 7 c. Existence of a One-Way Breach Clause ......................................................................................... 7 2. View From the Defendant’s Seat .......................................................................................................... 7 3. View From the Plaintiff’s Counsel’s Seat ............................................................................................. 8 4. View From the Ethics Counsel’s Seat ................................................................................................... 8 B. How Should a Confidentiality Clause Look? ........................................................................................... 10 VI. INDEMNITY ................................................................................................................................................... 11 A. View From the Plaintiff’s Seat .................................................................................................................. 11 B. View From the Defendant’s Seat ............................................................................................................... 11 C. View From the Ethics Counsel’s Seat ....................................................................................................... 11 D. How Should an Indemnity Clause Look? ................................................................................................. 12 1. “Hereby Indemnifies” vs. “Shall Indemnify” .................................................................................... 12 2. The Overuse of “Hold Harmless” ...................................................................................................... 13 3. Avoiding Circular Indemnity .............................................................................................................. 13 4. Mechanics of Drafting ........................................................................................................................ 14 VII. ATTORNEYS SIGNING RELEASES ............................................................................................................ 16 VIII. LIQUIDATED DAMAGE CLAUSES ............................................................................................................ 16 IX. IS THIS TRULY A RECEIPT? ......................................................................................................................