LAWRENCE D. BRUDY & ASSOCIATES, INC. Attorneys at Law “Your Energy Firm in the Natural Gas Age ”
INSIDE THIS ISSUE: PRACTICE AREAS Energy (PA • WVA • OH • CA) • Certified Title Opinions • Oil & Gas • Coal • Mineral • Oil & Gas Valuations • Title Abstracting & Curatives • Lease Negotiations Estate Planning • Estate Administration - Probate
On the Podium: The Anatomy of a Civil Lawsuit You Should Know: Audit Proofing a Tax Return In the News: Strategic Cooperative with the Monteverde Group, LLC Real Estate News: Enhanced Title Insurance Policies Firm News: Memberships & Organizations Sponsorships & Advertisements Meet our Professional Staff
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• Planning Wills, POAs & Trusts Business • Selection • Formation Real Estate (PA • OH) • Residential Purchase/ Sales • Commercial Purchase / Sales • Relocation • Refinance • Title Insurance Litigation • Civil
Lawrence D. Brudy & Associates, Inc. and the Monteverde Group, LLC established a strategic cooperative in 2011 to address the need for Financial, Tax and Estate Planning related in the new wealth generated by the fast growing oil & gas industry. Perpetuating and transferring wealth to and for family members, now and in the future, in tandem with maximizing investment opportunities while minimizing income and estate taxes are the goals of the professionals that work closely with clients. On a monthly basis the financial services professionals, attorneys and certified public accountants sponsor a private luncheon meeting for clients to discuss the options that are available to realize these objectives. To schedule a private and confidential meeting contact Lawrence D. Brudy, Esquire at lbrudy@ldbassoc.com
• Criminal Tax / Accounting • Individual Tax Preparation • Business Tax Preparation • Business Selection
Very few buyers realize that, like other insurance products, the title insurance industry has insurance products that offer different coverage. An enhanced policy, which offers additional coverage from the standard coverage, is available to the homeowner. Although the enhanced policy premium is 10% higher than the standard policy premium, the reality is a minimal cost to the homeowner for the ability to substantially reduce their risk and exposure on one of the largest investments they will make in a lifetime. Both the enhanced policy and the standard policy include protection against any defect in title existing at the time of purchase. Also included in a standard policy is protection against prior instruments of record that would be in a first lien position, title if vested in someone other than the seller, the unmarketability of title, and the right of pedestrian access to the property. The enhanced policy, however, covers a number of other issues that may arise; including building permit violations, subdivision problems, and instances of forgery even after the policy is issued. Furthermore, the enhanced policy includes automatic increases in coverage for five years, to account for the increase of value in your home.
www.ldbassoc.com Our website offers easy access to all the areas of our practice and to information for contacting our staff. Our Newsletters are uploaded to the website blog for easy reading.
Because of the added coverage and the low cost offered by the enhanced policy, it is important that purchasers are aware it exists. Buyers who decide to add this coverage will be required to have a survey completed, which should always be recommended as a precaution. A buyer should be aware of what they are buying, since again Our office is located at: this is likely one of the biggest purchases they will make in 2500 Brooktree Road Suite 301 their lifetime. Wexford, PA 15090 (724) 935-1400 (724) 935-1415 fax
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2012 Premier Edition
Pennsylvania Land Title Association (PLTA) American Association of Professional Landmen (AAPL) Energy & Mineral Law Foundation (EMLF) National Association of Royalty Owners (NARO) Realtors Association of Metropolitan Pittsburgh (RAMP) Pennsylvania Institute of Certified Public Accountants (PICPA) All Pennsylvania, West Virginia and California State Courts
Allegheny County Bar United States District Court for the Western District of Pennsylvania United States Court of Appeals for the Third Circuit United States Court of Appeals for the Fourth Circuit United States Court of Appeals for the Ninth Circuit United States Supreme Court United States Tax Court Beaver County Chamber of Commerce Southpointe Chamber of Commerce Wexford Chamber of Commerce Pennsylvania Association of Notaries (PAN)
Imagine you have been injured by a defective product. Obviously, the first thing you are going to want to do as you recover from your injuries is call an attorney. While most people have a vague idea of what goes on in a civil lawsuit, I would like to provide you with a little more insight just in case you are ever personally involved in one.
is located outside of Pennsylvania we will file the Complaint in Federal Court. The Complaint sets forth OK, so back to our scenario: You were outside using the identity of the parties, how the accident happened, your brand new weed-whacker when the housing unit that the product was defective and what your injuries on it cracked causing the spool of line to fly off and hit are. It also extremely important to remember that if you you in the leg, shattering your kneecap. While you are want to file a Complaint for personal injuries in going to be whisked off to the hospital it is important Pennsylvania, you must file your Complaint within two to let your spouse or someone in your household know years of the date of the accident. Within twenty to thirty that they are to gather up the weed-whacker and all of days of us filing the Complaint the defendant manufacthe parts that came off it and put them somewhere for turer will file an Answer to the Complaint. Generally, safekeeping. It is extremely important to preserve the the defendant will deny in their answer evidence. that the product was defective, or allege “It is extremely that you were not using it properly or that When you meet with a lawyer to tell with your injuries are not as bad as we say they important to how the accident happened, whether it is are. Also, under Pennsylvania law, I can preserve the evidence” at the hospital or after you have returned also sue the seller of the defective product home, The attorney should make arrangealong with the manufacturer. ments to get the weed-whacker and take it to someone to perform a thorough investigation of it to Next comes the discovery phase where both sides give an opinion as to why it malfunctioned. In a case exchange information relevant to their case. We would like this I would most likely take it to either a meprovide the defendant with all of your medical records chanical or civil engineer. Once I receive an opinion and documentation regarding lost wages. From the destating that the product was defective I will send a fendant I would want information regarding the letter to the manufacturer wherein I describe how the design of the weed-whacker, and I would want to know accident happened, what your injuries are, and why the if this malfunction had occurred while the product was product is defective. I generally cannot make a settlebeing used by others. The defendant would also want to ment demand at that time, because I won’t have a full take your deposition. At your deposition I would be prognosis regarding your injuries nor will I know there as would the attorneys for the defendants. There when you will be able to return to work. Sometimes it would be a court reporter who would administer an oath can take up to a year or longer before we know if you to you, just like you were in court. Then the attorneys will be permanently disabled from your injury and would ask you questions about the accident and your when, and if, you can return to work. However, once injuries. The court reporter would record everything that we have all of that information, you and I will sit down is said. I would take the depositions of individuals and formulate a settlement demand taking into employed by the manufacturer who were knowledgeconsideration, the length of your medical treatment, able about the design of the weed-whacker. any permanent disabilities you suffered, pain and suffering and lost income. If you are married we will Many times cases will settle after the discovery phase, also make a settlement demand on behalf of your because the plaintiff’s attorney will have enough spouse for loss of consortium. information to make a reasonable settlement demand; and the defense attorneys will have sufficient informaIf the manufacturer, or more likely its insurance tion to make a reasonable settlement offer. However, if company, rejects our settlement demand, we will file a the parties cannot reach a settlement the case will Complaint in the appropriate court against the proceed to trial. In the next installment I will talk about manufacturer. If the manufacturer is a Pennsylvania the trial of personal injury lawsuit. For more corporation we can file the Complaint in either the information contact David A. Neely, Esquire at county where the accident occurred or the county dneely@ldbassoc.com where the manufacturer is located. If the manufacturer
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2012 Premier Edition Lawrence D. Brudy, Esquire
Lawrence D. Brudy serves as the firm's President. He has over 25-years of business, real estate and legal experience. Mr. Brudy concentrates his practice in the areas of real property— including residential/commercial real estate, energy, business and estates. Mr. Brudy is a licensed Pa. Real Estate Broker, Notary Public and Pa. and Ohio Title Insurance Agent. Mr. Brudy earned his Bachelor's degree from the University of Pittsburgh, Master's degree from Carnegie Mellon University and his Juris Doctor from the Duquesne University School of Law, where he competed in the National Tax Moot Court Competition and was inducted into the Appellate Moot Court Honor Society, The Order of Barristers and Justice Louis L. Manderino Honor Society. In addition to being admitted to all Pa. state courts he is admitted to practice before the United States District Court for the Western District of Pa., the United States Court of Appeals for the Third Circuit, United States Supreme Court and the United States Tax Court. Mr. Brudy has taught Paralegal Real Estate courses for the National Business Institute, authored articles for the National Culinary Review magazine and the Central Atlantic States Association of Food and Drug Officials. Mr. Brudy has represented thousands of buyers and sellers in residential real estate transactions, negotiated oil and gas leases for landowners in multiple Pa. counties and has produced and certified hundreds of title opinions for oil, gas and coal interests. Mr. Brudy has provided accredited continuing education for hundreds of Pennsylvania Realtors and was honored in 2011 by the Pittsburgh Business Times – Dallas Business Journal – Houston Business Journal as one of the 300 industry leaders in the “Who’s Who in Energy”.
David A. Neely, Esquire David A. Neely was born and raised in New Brighton, Beaver County and obtained his undergraduate degree from Indiana University of Pennsylvania and his law degree from Duquesne University in 1987. David has 24 years of litigation experience and has practiced in State Courts throughout Pennsylvania and West Virginia. David’s major emphasis is on trying cases and using the art of persuasion to convince a jury to rule in favor of his clients. David tends to focus his practice on personal injury matters, such as automobile accidents and defective products. In addition he concentrates on insurance disputes, particularly bad faith issues. In 2005, he obtained a $1.5 million dollar verdict against a major insurance company. David still maintains strong ties in Beaver County and Allegheny County, where he resides with his wife, MaryAnn.
Darcy Monteverde Dayton, Esquire Darcy grew up in Fox Chapel, Pa. and attended Fox Chapel High School. She was accepted during early admissions to Duquesne University, where she focused on Sociology with an emphasis on Criminal Justice and a minor in Psychology. While an undergraduate Darcy was accepted into Alpha Kappa Delta, the International Sociology Honors Society. She continued her education at Duquesne University School of Law graduating in 2004 and successfully passing the Pa. Bar Exam the same year. Ms. Dayton's practice areas include real estate, corporate relocation, estate planning/administration and business. Darcy resides in the North Hills Area with her husband and two daughters.
Jennifer L. Enciso, Esquire Jennifer was born and raised in Western Pennsylvania. She attended Geneva College and graduated with a Business Management degree. Jennifer continued her education and was accepted into the Duquesne University School of Law where she became a member of the school’s prestigious Law Review. Jennifer has over 19 years of combined real estate, corporate relocation, business and legal experience. Her practice areas include real estate, corporate relocation, estate planning/ administration and business services. She and her family currently reside in Warrendale.
Sean H. Bello, Esquire Sean H. Bello is a licensed attorney admitted to practice in the State of Ohio, with over eighteen years of Real Property experience, concentrating on the clearance, defects and risk analysis relative to issuing title insurance. During his career, he has served as both general counsel for a national title insurance company and as claims counsel for Stewart Title Guaranty Company, overseeing Western Pennsylvania and West Virginia. He is also a licensed title agent in twenty-six states, including the contiguous states of Pennsylvania, Ohio, Maryland and West Virginia. Mr. Bello is a 1987 graduate of Washington & Jefferson College in Washington, PA, and a 1991 graduate of the Cleveland-Marshall College of Law. While at Cleveland-Marshall, he was inducted into the Phi Alpha Delta law fraternity. Mr. Bello is a member of the Firm’s Energy and Real Estate Practice Groups. He resides presently in the Wexford area.
Julie L. Schneck, Paralegal Thomas J. Kearn, Certified Public Accountant Thomas J. Kearn has over 25-years of experience in the areas of accounting, tax, and personal/business financial planning. Mr. Kearn provides year round tax planning advice for clients, including the preparation of tax returns for individuals, partnerships and corporations. He is very involved in the creation of business plans for "start up" companies to obtain financing, the review of accounting systems and the preparation of financial statements. Mr. Kearn graduated Magna Cum Laude from Robert Morris College with a Bachelor's Degree.
Julie L. Schneck was born in West Virginia and raised on the West Coast. She graduated from Green Valley High School in Las Vegas, Nevada and upon completion moved to Pittsburgh, Pennsylvania. After moving to Pittsburgh, Julie was a business machines specialist. She earned her Associate’s Degree from the Academy of Court Reporting & Technology, where she was a tutor and teachers assistant in her academic studies, she graduated Summa Cum Laude with a major in Paralegal Studies. Mrs. Schneck supports the energy practice of the firm preparing Certified Title Opinions. She is a bonded licensed Pennsylvania Notary Public. In addition, she designs and produces the firm’s newsletters, manages the office internally, and is the order processor for all oil and gas title orders. Julie and her family reside in West Deer Township.
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2012 Premier Edition Linda M. Eaves, Title Examiner Linda M. Eaves grew up in Western Pennsylvania and graduated from Butler High School and Ohio Wesleyan University where she majored in Spanish and Education, subsequently teaching English as a second language. Ms. Eaves has had the opportunity to live in Texas, North Carolina, Virginia and for four years in the country of Panam, now residing in Cabot, Pennsylvania. Ms. Eaves has been involved in the real estate industry for 19 years working for a major real estate company and property manager for a 220 unit rental community. Ms. Eaves has three children, two children-in-laws and three grandchildren. Linda supports the Energy Practice of the firm preparing Certified Title Opinions.
Dustie L. Richards, Paralegal Dustie Richards grew up North of Pittsburgh. After graduating from Leechburg High School, she studied Criminology at Indiana University of Pennsylvania and later earned an Associates Degree in Paralegal Studies at the Academy of Court Reporting & Technology. She graduated Summa Cum Laude in the fall of 2011. Miss Richards enjoys playing guitar, creating scrapbooks, hiking and camping in her free time. She supports the energy practice of the firm preparing Certified Title Opinions.
Stefanie L. Kelly, Legal Assistant Stefanie L. Kelly grew up in Cranberry Township, Butler County, Pennsylvania and graduated from Seneca Valley High School. Stefanie graduated from Ohio University with a Bachelor of Science and has held several management positions prior to joining the firm as a legal assistant in the Energy Practice. Stefanie resides locally in Seven Fields with her daughter, Bailey.
Positioning—The Firm continues to produce a bi-monthly Newsletter delivering information on aspects of the oil and gas industry, real estate, case law, legislation and tax/estate planning. Selectively, we remain visible through our website, Linked-In, Facebook and Twitter; Sponsorships / Advertisements including Gas Business Briefing, Landman Magazine, Pittsburgh Magazine, Pittsburgh Quarterly, Mylan Classic, Northwood Charitable Foundation Golf Outing and joining of the Chambers of Commerce in Wexford, Beaver, Southpointe; Also, “branding” all of the firms print and electronic materials. Growth—We have expanded our professional, support, marketing and pubic relations staff; upgraded our technological resources; our attorneys have been admitted to West Virginia, California, with applications pending in Ohio and New York. In addition, we have established a strategic cooperative with the Monteverde Group LLC, to meet the demands of our clients regarding financial and estate planning initiated through private family luncheons with the firms professionals.
Britney L. Monteverde, Title Examiner Britney L. Monteverde was born in Fox Chapel, Pennsylvania and graduated from Deer Lakes High School. She currently attends Community College of Allegheny County, where she will earn her Associate’s Degree in Liberal Arts. Britney supports the Energy Department of Lawrence D. Brudy & Associates, Inc. preparing and reviewing certified title opinions, as a Title Examiner. Britney resides in Gibsonia with her family.
Donald J. Ruth, Title Examiner Donald J. Ruth was born and raised in Moon Township, Pennsylvania. He attended Community College of Allegheny County as a business management and accounting double major. Mr. Ruth relocated to Columbus, Ohio in 2004 and worked for a law firm concentrating in commercial real estate, returning to the Western Pennsylvania area to reside in Sewickley, PA in 2008. Mr. Ruth has over 10 years of both commercial and residential title experience and supports the real estate and energy practices of the firm.
Matthew L. Brudy, Marketing Assistant Matthew L. Brudy is a student in Pine-Richland School District. He maintains a 3.9 GPA and has made the highest honor roll on separate occasions. He was chosen to be inducted into the “Who’s Who Registry of Academic Excellence” in 6th grade. In his free time, he plays baseball, hockey, and enjoys fishing. He is an avid Penguins and Pirates fan. He has been playing piano since age 4 and plays trumpet in the School Jazz Band. Matthew resides in Gibsonia.
Paula J. Klein, Paralegal Paula J. Klein earned her Associate’s Degree from the Academy of Court Reporting & Technology where she graduated Summa Cum Laude with a major in Paralegal Studies. Mrs. Klein supports the energy practice of the firm preparing Certified Title Opinions.
Accountability—To ourselves, growing client base and the community by fostering a firm environment of a strong work ethic to produce a quality product cost effectively in a timely manner to the satisfaction of all clients and giving back to the community through jobs, use of local vendors and support of charitable events.
Pittsburgh Business Times – Dallas Business Journal – Houston Business Journal names Lawrence D. Brudy, Esquire as one of three hundred industry leaders in the “Who’s Who in Energy.” Lawrence D. Brudy, Esquire spoke on Oil and Gas issues at the Annual Meeting of the Butler County Association of Realtors and provided accredited continuing education on Oil & Gas leasing issues for the Educational Development School of Real Estate throughout the 2011 calendar year.
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Lawrence D. Brudy, Esquire lbrudy@ldbassoc.com Matthew L. Brudy, Marketing Assistant mbrudy@ldbassoc.com Sean H. Bello, Esquire sbello@ldbassoc.com Darcy M. Dayton, Esquire ddayton@ldbassoc.com
Have you promised your spouse or partner that you will finally get around to doing a will, trust, or estate plan? Has your spouse or partner expressed frustration or concern that you don't have a will or trust in place? Do you have minor children that need to be protected and provided for should something unfortunate happen to you and your spouse or partner? Have you failed to keep that estate planning promise in the past?
In January, most people attempt to start the New Year off with a clean slate. However, life is hectic and perpetually busy with many of us trying to pay for college, the mortgage, the cars and everything else. With such daily demands and pressures, drafting a will or trust can seem like one more chore, as well as an unnecessary expenditure. As a result, often times, the best intentions to start the New Year off on the right foot, are waylaid. Whether you are contemplating for lifestyle additions or subtractions, make the commitment to yourself and to your family to draft an estate plan or to review your current plan. If you are married and have a new child, you should protect that child by appointing a
guardian in the event that something unfortunate happens to you and your spouse or partner. Additionally, and perhaps even more importantly, if you are a single parent and have not appointed a guardian for your child, there could be a lengthy and expensive legal process to determine guardianship, which may result in your child being raised by someone less than ideal. Beyond choosing a guardian for your child, you should also have a trust in place both to protect your child from probate and to limit his/her exposure to any estate tax liability. Distributing assets to a child outside of a trust is not prudent and can lead to a total loss of assets as well as a child that can be taken advantage of by unscrupulous individuals. By leaving assets to your child in trust, you can safeguard that the assets are protected from any such individuals as well as from the discretion of a child who is neither adept at nor accustomed to handling large sums of money. Commit to having a smarter outlook in the New Year and have a plan. For more information or to schedule a free initial consultation contact Jennifer L. Enciso, Esquire at jenciso@ldbassoc.com or Darcy M. Dayton, Esquire at ddayton@ldbassoc.com.
Linda M. Eaves, Title Examiner leaves@ldbassoc.com Jennifer L. Enciso, Esquire jenciso@ldbassoc.com Thomas J. Kearn, CPA tkearn@ldbassoc.com Stefanie L. Kelly, Legal Assistant skelly@ldbassoc.com Paula J. Klein, Paralegal pklein@ldbassoc.com Britney L. Monteverde, Title Examiner bmonteverde@ldbassoc.com David A. Neely, Esquire dneely@ldbassoc.com Dustie L. Richards, Paralegal drichards@ldbassoc.com Donald J. Ruth, Title Examiner druth@ldbassoc.com Julie L. Schneck, Paralegal jschneck@ldbassoc.com
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The IRS only audits about 1% of all individual tax returns filed. Ever wonder why some returns are audited while others are not. According to a recent survey of tax professionals, there are several items that are audit red flags the lead to IRS audits. We will discuss what they are and how to avoid them. Failure to Report All Income – By far, the largest reason for an IRS audit or correspondence letter is failure to report all income. The IRS matches the 1099's from all interest and dividend income, stock sales, miscellaneous compensation, rental income and other sources to the individual return. Make sure to provide all 1099’s and pertinent tax information to your CPA each year. Math Errors - These errors are more rare since the vast majority of tax returns are prepared by a tax software package of some sort. If you still prepare any tax returns by hand, make sure that you double-check all of the numbers and calculations. Higher than Average Tax Deductions – The IRS computer system routinely matches individual tax return deductions to income levels based upon historical averages. If your tax return files out of that range, the IRS computer system will highlight those returns for possible review or audit. Most tax software packages can
compare your tax deductions to national averages based upon your income. Review these results with your CPA or tax preparer. Certain Business Tax Deductions – The IRS places more emphasis on reviewing the following business deductions: Home Office Expenses, Business Meals & Entertainment, 100% use of Business Vehicles, Claiming Business Losses – Hobby You may be legally entitled to take the deductions listed above, but be aware that your chance of an IRS audit are greater. Complex Tax Returns – Individually Prepared – As a general rule, if you prepare a complex tax return, with stock options, housing tax credit, natural gas royalties & depletion, or multistate tax returns, the IRS is likely to review how the tax return was prepared. I have met with IRS agents that indicated complex tax returns prepared by a CPA or licensed tax preparer were less likely to be audited than those prepared by the individual taxpayer. For more information contact Thomas J. Kearn, CPA at tkearn@ldbassoc.com.
LAWRENCE D. BRUDY & ASSOCIATES, INC. ATTORNEYS AT LAW “Your Energy Firm in the Natural Gas Age” 2500 Brooktree Road, Suite 301 Wexford, PA 15090
www.ldbassoc.com Our website offers easy access to all areas of our practice.