The requirements for notice vary based on your policy. An occurrence policy is the more traditional type of coverage for things like automobile accidents, fires, and other torts. A claims-made policy covers claims that could be made years in the future, such as professional liability.
Occurrence-based policies do not necessarily require a timely notice to the insurance company by a certain date. The insured can recover even if there is late notice of the claim. However, if the insurance company can show that the delay prejudiced it, the claim may not be paid. Claims made policies, such as professional liability policies, require notice to be served on the insurance company within the effective period of the policy or they could be denied by the insurance company. You do not want to take the chance that the insurance company can come up with a credible argument of how it was harmed by failing to report what happened timely.
Ultimately, strict adherence to the policy’s notice provisions is the best practice. This means meticulously following the specified procedures and timelines outlined in the policy when notifying the insurance company or relevant parties about an incident or claim. These notice provisions typically detail the necessary information, such as the nature of the claim, the parties involved, and the timeframe within which the notice must be given. Also, the method of serving notice on the insurance company is often specific. By adhering strictly to these provisions, policyholders can ensure that their actions align with the contractual obligations outlined in the policy.
Your notice to the insurance company should include details of the incident and the damage your property sustained. The insurance company may already take their time paying your claim. You may need to negotiate with them to receive all your due money. If you delay reporting your claim to the insurance company, it will give the insurance company a reason to make a later payment.
When you do give notice, you should retain documentation for your files. If you reported the claim verbally, you should record the time, the person you spoke to, and their title. Make copies of any communications about your claim and continue to note conversations with the insurance company. It is crucial to have some type of record in case the insurance company denies that they received notice.
If you have a claim and have not reported it yet, you should not assume it will automatically not be covered. The insurance company may try to deny the claim, but a court could decide the matter in litigation. You may want to consider contacting a lawyer before you file a claim if some time has passed between the incident and the claim. However, you do not want to be in this legal position, so you should notify your insurance carrier of any occurrence sooner rather than later.
If you are having difficulty or need assistance with a claim, contact our experienced New Jersey insurance lawyers at Herold Law, P.A. Call us at 908-679-5011 or complete our online form to schedule a consultation. We have a convenient office location at 25 Independence Blvd., Suite 301, Warren, New Jersey 07059, and we serve clients in Somerville, Morristown, and across the state.
]]>Businesses have a multitude of agreements with various vendors and customers. Everything should be reduced to writing because a contract can protect both parties. However, some businesses may have so many agreements that tracking and following everything they promised could be complicated.
Businesses should regularly review their contracts to understand their obligations. In addition, they should keep track of what is due when and what obligations they may need to perform.
Not only must businesses know the specific tasks that need to be done, they also need to understand how to perform them. Timing is only one element of successful contract performance. The business may perform on time but not follow the specifications outlined in the contract.
Businesses benefit when all employees know what to expect and how to perform their responsibilities. Although each contract may be different and stand on its own, general guidelines must outline the expectations. While employees may have discretion, there should be top-down principles that apply to performing contractual tasks.
Any modification must result from a negotiation between the parties. You may need to modify a contract or even negotiate an end to the agreement. The other party is under no obligation to agree to any modification. Still, it may be in their best interests because changing the agreement could reduce their legal risk. In many cases, it does not hurt to approach the counterparty to seek to amend the agreement.
Businesses may run into trouble because they may not understand the exact language of the contracts they signed. There could be ambiguities that may cause legal headaches. When in doubt, a business should speak with a commercial litigation lawyer because it could mean the difference between compliance with contractual obligations and a possible lawsuit. A lawyer can advise you on what the contract’s language means and requires. If there are any disputes, a lawyer can represent you in dealing with the other contractual party.
Our New Jersey commercial litigation lawyers at Herold Law, P.A. can help if you have any potential contractual issues. It is always better to be proactive in getting legal help. Call us today at 908-679-5011 or contact us online to discuss your case. Located in Warren, New Jersey, we serve clients in Somerville, Morristown, and across New Jersey.
]]>Before you file a claim, it is crucial to be familiar with the exact language of your policy and the exclusions. You should be careful about the way that you describe your damages. If they sound exactly like something excluded by the policy’s language, the insurance company may deny the claim. You should truthfully detail the damage in a way that would bring it under the policy’s coverage. A lawyer can help you review the language of your policy and assist in filing and processing your claim for successful results.
The insurance company needs to see what is backing your claim. They may have sent an adjuster to view the damage, but they will want to see your documentation for the damages you claim. If you fail to include documentation, the insurance company may not believe your statement of damages, or they may discount the harm that you suffered. Insurance companies have a lot of resources at their disposal to verify your claims, such as the use of satellite images and other techniques.
The insurance company will go over everything you say with a fine-tooth comb. Not only will lying on a claim lead to a possible denial, but there may even be insurance fraud charges. The insurance company will be able to know how much your claim is worth without any embellishment on your part. It is important that you are factual and do not give any opinions.
As a policyholder, you have the obligation to mitigate your damages. This means that you have taken steps to minimize the harm after the damage-causing event. You should not expose your property to additional loss. If the insurance company believes you have, they may cut the amount they pay you or even try to deny your claim altogether. You must act as soon as possible to prevent further loss to the fullest extent possible.
An insurance claim is a time-sensitive matter. Your policy itself may impose certain deadlines for you to file a claim. Not only is it in your best interest to meet these deadlines, you should not even come close to missing them. The longer you wait to file, the more likely the insurance company will deny your claim.
If you are making a large claim, you can anticipate that getting everything you deserve from the insurance company may be more challenging. You may want to contact a lawyer before you make the claim, knowing that you may need them in the future anyway. Insurance companies are known to make low settlement offers. They may view you differently when they see that you have an experienced attorney who can help you file a lawsuit.
Our New Jersey insurance lawyers at Herold Law, P.A. can help you file a claim and represent you if your claim is denied. To schedule a consultation, call us at 908-679-5011 or complete our online form. We have decades of experience in dealing with large insurance companies. Located in Warren, New Jersey, we serve clients in Somerville, Morristown, and across the state.
]]>We believe our regular readers know a lot about the Federal gift and estate tax system. In general, until January 1, 2026, present law imposes a 40% of asset value tax once property transfers by gift or by the laws of descent and distribution exceed a cumulative $13,610,000 of transferred property value. Of course, as well, there are the annual per donee gift tax exclusion amount ($18,000 for 2024), and the tuition and medical expenses payments exclusion amount. These matters of Congressional grace involve much smaller transfers of transfer tax value exclusion than the exemption’s millions.
We appreciate that paying 40% in transfer taxes later than sooner is ordinarily simply common sense. Mathematical models we have seen over the last three decades purporting to show transfer tax savings from paying now rather than later usually contain express or implied assumptions that are not realistic or are fantastic. Today, the law provides for the exemption amount to be cut back to approximately $6,805,000 for gifts or death transfers occurring during 2026 and thereafter.
This fact leads us to arithmetic. Gross taxable estates include in their taxable values the estate taxes to be paid by executor not later than nine months after death.
For instance, assume a taxable estate of $100,000,000 and no exemption amount left. The estate tax is $40,000,000. The value received by heirs is $60,000,000. This is nice. Watch this: the estate tax is estate taxation tax inclusive.
Turn the example to the gift tax, which is gift tax exclusive, and modify the transaction so as to make a fair comparison. A gift of $60,000,000 value draws a 40% gift tax of $24,000,000. $100,000,000, minus $60,000,000, minus $24,000,000 = $14,000,000. A 40% estate tax on $14,000,000 = $5,600,000, which leaves another $8,400,000 to heirs. This is nicer: loved ones get $68,400,000.
The transfer tax efficiency of the inclusive / exclusive arithmetic fact is magnified the larger the gifts relative to the value of the eventual estate. Depending on which of two parties controls the federal government during the next Congress, the transfer tax rate may be reset as high as 55% and the exclusion amount reset at between $3,500,000 and $6,805,000 + for 2026 et seq., if not during 2025. The magnification is greater with these possibilities as assumptions.
Many in the USA complain about the members of our biennial Congresses not being very good at arithmetic. In 1976, however, when neither party alone controlled the federal government, they noticed the inclusive / exclusive arithmetic fact and introduced some more arithmetic by adding Section 2035(b) to the Code. The provision states that if the decedent (or his spouse) made taxable gifts within 36 months of the decedent’s date of death, any of the gift tax paid by the decedent is added back to the decedent’s gross taxable estate. The effect is to eliminate the gift tax efficiency edge over the estate tax, all other facts like tax rates being the same. So far it’s a 36 month look back and not a lifetime look back. So far, so good.
This writing is not and should not be interpreted as the rendering of legal advice or performance of legal services to any person by Herold Law, P.A. In accordance with professional ethical rules, furthermore, Herold Law, P.A., renders legal advice and performs legal services only in the context of an attorney-client relationship entered into before rendering advice or performing services.
]]>Your documents can contain helpful evidence for your case. They may form the basis of your position at trial. At the same time, the other party may want access to your documents because they would provide substantial evidence that backs up their arguments.
At the outset of the case, each side may send the other a document retention letter. This letter would direct the other party to preserve documents in anticipation of potential litigation. You may receive a demand letter after the other side has sent you a demand or cease-and-desist letter. You need to heed what the letter asks because you are not in a position to determine what documents need to be retained.
It is essential that you take steps to preserve important documentation relevant to your case. If the commercial litigation progresses further, your case will reach the discovery phase. You will be legally obligated to produce documents relevant to the case if the request complies with civil rules of procedure. The judge may have to determine what you are obligated to produce.
Document retention will help you when it comes time for discovery. You will need to produce large amounts of information under a short deadline. Knowing what is in your possession is crucial before you produce it. You do not want to hand over privileged or irrelevant information.
Most documents are kept in electronic format. You must retain these documents in a separate drive. Then, you should make sure to back up the files. Keeping them electronically in one place will help you later in the case. Once you learn of the possibility of litigation, you should immediately take steps to keep and organize documentation.
There will also be significant consequences if you fail to retain relevant documentation properly. The term for document retention failures or destroying relevant evidence is “spoliation.” One of the harshest penalties a judge could impose is ordering the jury to draw an adverse inference based on the documents that were not retained. The more intentional the failure to maintain records seems, the more likely a judge will impose serious sanctions.
Hiring an attorney early in your case can help you avoid some of the pitfalls you may encounter if left to your own devices. Your attorney will advise you of your document retention obligations. A lawyer will also have the resources to help you produce large amounts of documents when requested during discovery.
Our New Jersey commercial litigation lawyers at Herold Law, P.A. can advise you at all phases of your case, whether it is early preparation for a lawsuit or taking your case to trial. Call us today at 908-679-5011 or contact us online to schedule a consultation. Located in Warren, New Jersey, we work with clients in Somerville, Morristown, and across the state.
]]>You have the right to demand strict compliance with the contract’s exact terms. If the other party has not lived up to their obligation, you may be entitled to damages that include:
You must determine how to enforce your contractual rights effectively. You may benefit from trying to resolve the issue with the other party without the need for a lawsuit. When you hire an experienced lawyer, they can communicate with the other party. Your lawyer may help work out a settlement or lay out your position.
You may have no choice but to take your case to court. The other party may have their defenses that you need to overcome. They may argue the following:
There are always risks when you file a breach of contract case. The other party may turn around and claim that you were the one who breached the contract, and they may file a counterclaim against you.
One of the first things the court may do is ascertain what the document says. The breach of contract claim may be a dispute about the contract’s requirements. If there is still no clarity, the court may look to eliminate any ambiguity using principles of contract determination.
The court will look at the facts of the situation and determine whether each party performed in accordance with the terms of the contract. This is a factual analysis based on each side’s proof in court. The judge or jury would quantify the damages if the court finds that one party breached the contract.
An experienced commercial litigation attorney can do the following:
Our experienced New Jersey commercial litigation attorneys at Herold Law, P.A. routinely handle high-stakes contract disputes for our clients. Call us at 908-679-5011 or complete our online form to schedule a consultation. Located in Warren, New Jersey, we serve clients in Somerville, Morristown, and across the state.
]]>Your insurance policy will cover certain losses within the language of the policy. Your policy may cover you against a named loss, such as a flood. Alternatively, you could have a general policy like homeowners or property insurance.
The exact language of the policy matters. If a certain loss does not fall into the language of your policy, it is not covered.
The insurance company will also specifically take certain events out of the policy’s coverage through exclusions. One major thing that is typically excluded from insurance coverage is flooding. Now, you need specific insurance that just covers flooding. Often, there is a dispute over the origin of water.
The insurance company may claim that your claim is specifically excluded from the terms of your coverage, setting the stage for potential litigation.
You pay for the basic coverage with your policy. Your insurance coverage can also be customized to meet your needs. You can add certain types of coverage to your policy by paying more. For example, you can add insurance for valuable jewelry to your homeowner’s insurance policy. The insurance company would give you a specific quote for how much it will cost to add the endorsement.
The adjuster is perhaps one of the most important people you will deal with as part of your claim. The adjuster is the gatekeeper the insurance company designates to handle your claim. They will be the ones who make the initial investigation as to what happened and whether you may be entitled to a check. Then, they will assess the damage and determine the amount you should receive. Insurance adjusters can work directly for the insurance company or on a contract basis.
The insurance company is not obligated to cover an unlimited amount of damage. You will decide how much coverage you want when you purchase the policy. The insurance company is only obligated to cover up to the amount of the policy limit. Of course, you can usually purchase more coverage if needed, although insurance companies sometimes have maximums that they will write for certain policies.
The insurance company is legally obligated to pay you for losses covered by the policy up to the policy limit. However, you may have disputes about whether a certain loss is covered or the value of the damage.
An insurance policy is a contract between you and the insurance company. If they do not honor their side of the bargain, you can file a lawsuit against them. Then, a court may interpret the language of your policy to determine whether the loss is covered. A court may force them to pay what they owe. Alternatively, you could reach a settlement agreement before your case goes to trial.
If your claim has been denied, or the insurance company will not offer you enough money, you may have no choice but to litigate.
Herold Law, P.A. frequently utilizes risk management specialists and national brokers with many markets available to secure better and more economical coverages for mid-range corporations and high-net-worth individuals. Many brokers renew policies without informing the policyholder what the changes to the policy are and avenues to reduce mounting policy premiums. We can help you understand your coverage and secure a policy that fits your needs.
Contact our New Jersey insurance attorneys at Herold Law, P.A. today if you need help understanding your rights under your policy or in litigation. Call us at 908-679-5011 or contact us online to schedule a consultation. Located in Warren, New Jersey, we serve clients in Somerville, Morristown, and across the state.
]]>First and foremost, you should hire a lawyer with the experience necessary to handle your case. You would not hire a family law attorney for a large corporate case with high stakes. Generally, you want someone who has dealt with a case involving your specific area. In addition, you also want to pay close attention to your attorney’s record, which goes beyond merely winning cases. Successful results often mean that you have avoided litigation entirely.
Further, you want to know which attorneys will be assigned to your case. Law firms will use associates for your case, but you also want experienced partners handling the heavy lifting.
Your attorney will be a constant presence throughout your case. You need your attorney to be responsive to your concerns and communicative with you. The last thing that you want is for your calls to go unreturned. You must also know when your lawyer is available. Commercial litigation cases can be complex, and you need to understand complicated legal topics that your lawyer should be able to explain.
A commercial litigation case can take up much or all of your attorney’s time. If your case goes to court and the lawsuit proceeds through the system, your attorney would be devoting long hours to your case. While they may have other clients, your case could take up most of their time. You do not want an attorney with no clients and all the time in the world, but you do not want an attorney with no time for you or your case.
Commercial litigation involves much more than just appearing in court. An extensive process could deal with hundreds of documents or more. The law firm may need more than one attorney on staff to handle your case. Then, they may have to handle or produce large amounts of data in the discovery process. The law firm needs an infrastructure to handle your case effectively. You should understand how discovery will be handled and the other aspects of your case.
Depending on the type of case, many commercial litigation actions will not be handled contingently. You will pay an attorney by the hour, so you must understand how you will be charged. Commercial litigation cases also involve fees beyond the attorney’s time, so you have to know how much you will be charged for what.
Our New Jersey commercial litigation attorneys at Herold Law P.A. have the experience and resources to handle your case skillfully. Call us at 908-679-5011 or contact us online to schedule a consultation. Located in Warren, New Jersey, we serve clients in Somerville, Morristown, and across the state.
]]>In 2023, the average cost of a homeowners insurance policy is expected to increase by 9 percent. Premiums may keep rising sharply for the foreseeable future.
The average value of a homeowners insurance claim has increased substantially, especially in the past few years. Prices of contractor labor and building materials have risen faster than the overall rate of inflation. From Oct. 2021 to Oct. 2022, the construction inflation rate was more than double the already high 7.7 percent increase in the Consumer Price Index.
In addition, the insurance company is also dealing with higher administrative costs. They need to pay more to hire employees and for their benefits.
At the same time, the insurance company has not been earning the same rates of return on their investment in the past two years. Both the stock and bond markets have produced below-average returns. Insurance companies rely on profits they earn from investing the premiums they receive before they must pay homeowner claims. Thus, you are beginning to understand how insurance companies may see their profit margins threatened. You will be the one who bears the brunt of it because they will pass the costs along to you.
At the same time, an insurance company is a for-profit business. They must also answer to their shareholders, especially when their profits fall short of Wall Street expectations. If the insurance company must pay higher costs, they must pass them along to you as higher premiums. The insurance company’s job is to price risk. If the insurance company assumes more risk, they will need to charge more.
On the other side of the equation, homeowners have filed more claims in recent years. There has been more severe weather that has resulted in damage to homes. Not only are there more claims, but the ones that are filed are more severe. These include both fires and storms. Insurance companies have had to pay more themselves, both in claims and to reinsurance companies.
As a homeowner, you have every right to expect the insurance company to fully pay you for the damages you have suffered when the terms of your policy cover them. However, you can expect higher premiums when:
Finally, homeowners are purchasing more insurance coverage than they had in the past. They realize that their home could suffer more expensive damage, and they want it all covered instead of having to make up the shortfall itself. In addition, the sharp rise in property values means homeowners need more coverage; higher coverage amounts mean steeper premiums.
If you are involved in a coverage dispute, contact a New Jersey insurance attorney at Herold Law, P.A. We can deal with the insurance company on your behalf. Call us at 908-679-5011 or complete our online form to schedule a consultation. With offices in the Plainfield area, including Warren, New Jersey, we proudly serve clients across New Jersey.
]]>ADR helps bring the two parties together when they cannot talk on their own effectively. You and the other party may have a dispute that could be conducive to a settlement, but you are having difficulty in negotiations.
In most cases, when two parties voluntarily attempt ADR, there is a high success rate. Even court-ordered ADR is more likely to work.
Your attorney will advise you on your legal options in a commercial litigation case and help you with a strategy in ADR. You need to come prepared for ADR and give your lawyer room to negotiate or help them prepare to present your case.
Mediation is one way that ADR can play a role in your case. Mediation is non-binding, and during the process, two attorneys are not necessarily speaking directly to each other. They are getting help from a neutral third party (mediator).
There are several ways that mediation can come into play. The judge may order the parties to at least try to mediate their dispute. The court’s time is valuable. Alternatively, the two sides could opt for mediation on their own.
Arbitration is another form of ADR that can be used in your case. You may have a contract requiring arbitration or agree to it with the other side.
You may obtain a binding decision from a neutral third party without requiring a lengthy and expensive litigation process. An arbitrator could hear the evidence in your case, and it may not take years or cost the same amount as a trial. Then, they could issue a binding decision in your case that cannot be appealed. You can typically get a decision at a fraction of the cost and more quickly than a court trial. Arbitration could end your case many months sooner.
You should consider ADR in your commercial litigation dispute. ADR has a high success rate, especially when both parties come ready to compromise and settle their case. Both parties must be motivated to resolve the case and willing to do what they can to reach an agreement.
If you need help with ADR for your business dispute, contact our New Jersey commercial litigation attorneys at Herold Law, P.A. today. Call us at 908-679-5011 or complete our online form to schedule an initial consultation. Located in Warren, New Jersey, we serve clients in Somerville, Morristown, and across the state.
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