Minnesota
Case Note
Dismissal
of Tax Arrears Claim Arising from Discharge of Mortgage Debt
Our client received
notice from the IRS that she owed $25,980 for failure to report $84,658 due
to an alleged loan forgiveness by a mortgage company.
We sent a letter to the IRS stating that the client was insolvent at time of
foreclosure, and under IRC this should not be considered income. Copies of the
property tax records were provided, showing that the home was purchased at the
Sheriff's sale for $95,393.44, which should have covered the note. Documents
showing that the mortgage company transferred the property to a third mortgage
association for $500 before selling it to a private party for $102,000 were
also provided. It was explained to the IRS that either or both of these arguments
should serve as a basis to dismiss the claim against the client.
The IRS dismissed
the claim against the client (but did not cite the argument with which it
agreed).Thanks to Christina Cook at MMLA for her expert advice. Contact:
Sherry Ann Bruckner, Attorney at Law, Legal Services of Northwest
Minnesota- Alexandria at 320-762-0663 or sbruckner@lsnmlaw.org.
National
Case Notes
Civil
Gideon
Government-Financed Civil Legal Aid is "Not a Right" Declares British
Columbia Court of Appeal
Ian
Mulgrew, The Vancouver Sun, March 4, 2008
The
Vancouver Sun reports: "The [British Columbia] Court of Appeal has
backed [British Columbia] Supreme Court Chief Justice Don Brenner's decision
to kill the Canadian Bar Association's landmark attempt to force governments
to provide adequate civil legal aid to poor people. In a majority ruling Monday
[March 3, 2008], the court agreed with the province's senior trial court judge
and said he was also quite right to assess costs against the CBA. Susan McGrath,
past president of the bar association, said she was saddened because the decision
means access to justice will continue being denied to those least able to help
themselves . . . . [In the judgment], Justice Brenner said the bar association
was the wrong group to launch such a lawsuit, and the remedy it sought was far
too sweeping."
Health
Settlement Ends Practice of Unlawfully Cutting Off Health Coverage Without
Due Process
The State of Missouri will no longer be able to terminate thousands of low-income
children's health care without first providing them with the opportunity to
challenge the termination and to receive health care coverage while they appeal,
as a result of a settlement
announced by the National Center for Law and Economic Justice and the National
Health Law Program. The settlement in J.W.M. v. Scott provides relief
to the more than 20,000 Missouri children who pay a monthly premium to receive
health coverage through MOHealth Net for Kids and who would lose benefits as
a result of the state's unlawful policy.
Housing
Elderly Tenants File Suit Against Landlord Who Wants to Drop Out of Federal
Affordable Housing Program; Legal Aid Society of Hawaii Provides Representation
Advertiser Staff, Honolulu Advertiser, March 3, 2008
The
Honolulu Advertiser reports: "Residents of an affordable housing complex
in Kahuku are asking a judge to stop their landlord from dropping out of a subsidy
program that pays for part of their rent. The [LSC-funded] Legal Aid Society
of Hawai'i filed suit on their behalf in state Circuit Court this morning against
Kahuku Housing Foundation Inc. According to Gavin Thornton, attorney for the
residents, Kahuku Housing Foundation wants to drop out of the U.S. Housing and
Urban Development program that subsidizes rent for this low-income housing project
. . . . The complex has 64 units and most of them are occupied by the elderly.
"The fear is once Kahuku Foundation drops out of the program, the residents
could lose their homes," Thornton said.
Immigrants
and Migrants
Settlement Will Entitle Elderly and Disabled Asylees, Who Lost Benefits Due
to Delay in Getting Citizenship, to Have Citizenship Applications Expedited
Michael Vitez, The Philadelphia Inquirer, February 29, 2008
The
Philadelphia Inquirer states: "Elderly and disabled immigrants who
were granted asylum in America - but who have lost government benefits because
of delays in getting citizenship - will now have their applications to become
citizens expedited. That is the essence of the settlement of a class-action
lawsuit in federal court in Philadelphia, and is expected to be approved at
2 p.m. today [February 29, 2008] in a hearing before U.S. District Judge Eduardo
C. Robreno . . . . An estimated 20,000 disabled and elderly immigrants lost
benefits." The plaintiffs in the case are represented by Community Legal
Services of Philadelphia.
Please submit
case notes to Mary at mrea@mnlegalservices.org
or call 651-228-9105 ext. 106 for more information.
