Newsletter - March, 2001

Jury Duty (Part 2): The Trial
AS INTEREST RATES TUMBLE: Is a Refinance Right for Me?
DRIVE NOW TALK LATER- (Employers Beware!)
ADVANTAGES AND DISADVANTAGES OF REVOCABLE LIVING TRUSTS
ASSUMPTION OF RISK

Jury Duty: The Trial - Part Two

Click Here For Part One

In our last issue, we explained the procedure involved in being called for jury duty. Part Two of that article continues with what you can expect as the trial begins.

Initially, the attorneys are permitted to address the jury directly in what is called an "opening statement." A good attorney will outline the important points of the case to the jury and will give them a preview of the evidence to come. Generally, their arguments will support their client's position in the case. Openings are expected to be straightforward and discussions over the pluses and minuses of the evidence are reserved for closing statements at the end of the trial.

Once opening statements are concluded, the testimony begins. In New Jersey previously, jurors were not permitted to take notes nor ask questions during the trial. They would sit quietly and attentively listening to the evidence. At times this could be quite "trying" as the technicalities of the Rules of Evidence can often make trials dull and tedious. Each and every detail important to the establishment of the facts of the case must be outlined and testified to by a witness. Today, however, the stringent "no note-taking" rule is slowly being eliminated.

Sometimes the lawyers, in what is called a "stipulation", can agree to certain facts surrounding the case. This agreement can save much time and boredom on the part of any jury, who do not now have to sit through certain basic elements surrounding the litigation (It is unusual, however, to have any significant stipulations of fact in a criminal case due to the drastic nature of the issues involved. Criminal defense attorneys are trained to generally "fight them all the way down the line".)

During the presentment of evidence, one lawyer may object to what another lawyer is trying to introduce or have a witness testify about during the trial. This often is resolved quickly at what is known as a sidebar. The jury remains in the jury box, but out of hearing while the judge and attorneys address the issues.

Questions that cannot be resolved quickly and at "sidebar" are handled after the jury is asked to leave the courtroom. These types of arguments can be both technical and lengthy. The jury, before exiting, is asked not to discuss the evidence they have heard up to that point and to save discussion for the deliberations that occur after all evidence is heard. It is wise to bring a book or a magazine for entertainment during these periods. Newspapers are generally discouraged since they might contain an article about the trial.

Once the issues have been resolved, either at sidebar or upon vacation of the jury, the judge gives the now present jury a general instruction as to what they need to know about what happened. This may be as simple as a statement that the objection has been sustained and the attorney has been instructed to move on. Alternatively, a lengthy instruction about the relevance of a particular piece of evidence and an instruction on how the evidence might be used can ensue. A sustained objection is one with which, in effect, the judge agrees. An objection overruled occurs when the judge does not believe the objection is warranted.

Often evidence, which can be prejudicial to a party in the case, is admitted for a limited purpose, only, and the jury is instructed to use it for that purpose alone and to disregard it for any other purpose. Lawyers have argued for centuries about how a normal person can divide their brain to use information for one reason and not another. Yet the courts cannot exclude all evidence merely because it may have some prejudicial effect. Too much valuable evidence would be lost for the jury's consideration.

The atmosphere of a trial can range anywhere from amiable to down-right vicious. Jurors should not consider a case unimportant because the lawyers are not vocal and argumentative - civility is supposed to be the order of the day even in a trial.

Once all evidence has been presented and arguments exhausted, the attorneys are given the opportunity to make their closing statements, or summations to you, the jury...

TO BE CONTINUED
Next Issue: The Verdict


AS INTEREST RATES TUMBLE:
Is a Refinance Right for Me?
With the economy slowing and mortgage rates declining, now is an excellent time to revamp your finances, if you currently have a 15, 25 or even 30 year mortgage, you should review the available alternatives that can significantly reduce your monthly payment and make a major difference in the total amount of dollars you repay over time.

Restructuring debts may also be an attractive reason for you to refinance. You may wish to consolidate credit card debt, home improvement loans and second mortgages into lower interest charging vehicles.

Consider the following examples based on mortgage monies borrowed in denominations of $100,000:

(Numbers are rounded estimates)
Interest
Rate
Loan
Term
Monthly
Payment
Total
Repayment
9%
30 yrs.
$804
$289,667
7%
30 yrs
$665
$239,511
6.25%
30 yrs.
$615
$221,656
 
 
 
 
9%
25 yrs.
$839
$251,755
7%
25 yrs.
$706
$212,033
6.25%
25 yrs.
$659
$197,900
 
 
 
 
9%
15 yrs.
$1,014
$182,567
7%
15 yrs.
$898
$161,788
6.25%
15 yrs.
$857
$154,336
Obviously, several hundred dollars per month payments can be saved and total repayment savings of $25,000 to over $70,000 are now possible.

Furthermore, semi-monthly payment plans can reduce 30 year mortgages to 23.5 years, 25 year mortgages to 20 years, and a 15 year term to approximately 12 years.

Call us now to discuss how a refinance may benefit your budget.

The experienced attorneys and real estate paralegals at Azrak & Associates, will make your "refi" both quick and cost effective. They will:

    1- Explain the alternatives and what they may mean to you.
    2- Assist you with any documentation the bank/mortgage company may desire.
    3- Expedite both mortgage processing and title information.
    4- Explain precisely what costs are involved "up front".
    5- Schedule closings that most accommodate your schedule.

AZRAK & ASSOCIATES' staff is readily accessible and at all times pleased to guide you through all phases of a refinance.

To start the process now, call one of our experienced attorneys or our Senior Real Estate Paralegal, Patricia DiEduardo at 973-839-9062.


DRIVE NOW TALK LATER- (Employers Beware!)

While driving to a restaurant on a Saturday night, the driver dropped his cellular phone, bent down to retrieve it, ran a red light, and killed a motorcycle rider. However, the main target of the ensuing wrongful death action was the driver's employer, not the driver. Although the accident occurred outside of normal business hours, the plaintiffs alleged that the brokerage firm that employed the driver encouraged its employees to do business by phone in their cars any time of day, and that the driver was trying to call a client when his vehicle collided with the motorcyclist. The case was settled out of court and the plaintiffs received a substantial sum.

The fact that an employee is provided with a cellular phone or pager and is "on-call" at the time of an automobile accident may put the employee "on the job," even where the employee is not using a cellular phone when causing the accident. In one such case, a salesman caused an accident while driving home in the evening. The court found that the employee was acting in the scope of his employment primarily because he was required to carry a beeper and to use it to respond to customers needs until 7:30 p.m.

For workers' compensation purposes, another court has held that a state employee was acting in the course of his employment when he was in an accident while driving home from work, despite a general rule that while commuting to and from work an employee is not acting in the course of employment. An exception to that rule was found because the employee was on call 24 hours a day and his vehicle was equipped with a cellular phone and a short-wave radio so that he could be contacted while in transit.

On-call status with a cellular phone will not necessarily mean that an individual is acting in furtherance of employment, but it will take significant countervailing facts for a court to avoid that conclusion. For example, a police officer was ruled to be acting outside his employment although he caused an accident while driving a police vehicle to respond to a page received by cellular phone. The court cited the overriding personal nature of the officer's actions based on several facts: (1) he was driving the vehicle back from a golf tournament that he had attended on his own time; (2) the accident was in a neighboring town where he had no authority as a police officer, and (3) he was intoxicated and unfit for duty.

These cases are especially significant for employers who expect their employees to be working the phones, or to be prepared to do so, virtually around the clock, and for whom driving time is regarded as just another good opportunity to conduct business. The cost of squeezing out this extra productivity may well be greater exposure to tort liability when the employee's concentration on business interferes with safe driving.

Possible solutions include simply not reimbursing employees for cellular phone use. Writing clear policies that will encourage employees to "drive now, talk later" will further protect the employer.

Attorneys at AZRAK & ASSOCIATES can provide the advice needed before such policies are implemented.


ADVANTAGES AND DISADVANTAGES OF
REVOCABLE LIVING TRUSTS

The revocable living trust has become such a popular estate planning tool that there is a danger that people are establishing them without thoroughly understanding all of the consequences of doing so.

Advantages
A revocable living trust entails an individual's transfer of assets to a trustee who is appointed in the trust instrument. The individual retains the powers to revoke or amend the trust, and he will normally receive the income generated by the trust for the period of his life. The chief advantages of such a trust are that (1) it establishes an estate plan for the individual ("settlor") while he is still living, thus securing professional management of his assets during revocable his life, with a smooth transition at his death since at that time, the trust will serve as the equivalent of a will; and (2) probate may, under limited circumstances, be curtailed. At the settlor's death, the trustee of a revocable living trust can continue his management of the assets without interruption and can start carrying out the trust's post-death directions.

Another advantage is gained if an individual owns real property outside of his home state and transfers it to an revocable living trust. If the individual died owing such property without having transferred it to an revocable trust, it would almost certainly be necessary for his executor to open what is known as an ancillary administration in the proper court of the state in which the out-of state realty is located. Such action may not be needed in certain circumstances if the realty has been transferred to a revocable trust.

Steady management of the settlor's assets can be maintained where the settlor, who typically is the initial trustee, becomes incapacitated The revocable trust can provide that the successor trustee is to assume his trustee status upon the settlor's incapacity. Such a provision can eliminate the need for a court proceeding and the appointment of a guardian. After the settlor's death, there would be no delay in the transfer of assets to the ultimate trust beneficiaries.

Disadvantages
Disadvantages associated with a revocable living trust primarily involve the formal changes that must be made in order to fund the trust. Because legal title to all of the property to be transferred to the trust must be in the trustee's name, stocks must be reregistered and title to promissory notes, real estate, partnership interests, and any other assets must be placed in the trustee's name even where the settlor is the initial trustee. Such a process can be burdensome.

Because the trust will be operated both during the settlor's life and after his death, it is likely that the total cost of an estate plan centered on a revocable living trust will exceed an estate plan that takes effect only at death. A professional trustee will usually charge on an annual basis, while an executor's fee will normally be a one-time charge. Of course, if the settlor acts as the sole initial trustee, trustee's fees could be greatly reduced.

A revocable trust does not alter the tax liability of the settlor or his estate. The total amount is includable for Federal Estate Tax purposes. The settlor will also normally be the income beneficiary of the trust and he will be taxed on that income. Thus, taxation is a neutral factor in deciding whether to execute a revocable living trust. Still, the numerous factors that do affect such a choice must be weighed carefully.

A consultation with one of the skilled attorneys at AZRAK & ASSOCIATES before making any choices is strongly recommended.


ASSUMPTION OF RISK

The law of negligence is based on the principle that people have a duty to use due care to avoid injury to others and that they may be held liable if their careless conduct injures another person. In sports, however, conduct or conditions that otherwise might be seen as dangerous often are an integral part of the sport itself. Accordingly, defendants are under no legal duty to eliminate or protect a plaintiff against risks that are inherent in the sport, but they do have a duty not to increase the risks to a participant beyond those that may be expected.

Albert was playing golf when his partner's hooked shot ricocheted off a wooden yardage marker and struck him in the eye. Albert sued the golf course for negligence, but a state appellate court dismissed his claim. The court found that golf is an active sport, that Albert was injured because he subjected himself to an inherent risk in golf, and that the golf course had not increased the risks inherent in playing a round of golf.

An expert testified for Albert that the golf course increased the risks because the marker should have been made of softer material and placed farther from the fairway. The court disagreed. The fact that safer materials or conditions were possible will not give rise to a duty of care if the accepted standards for the sport were met. The construction and location of the yardage marker were typical of other courses. Moreover, there were no reports of prior injuries caused by any of the many such markers located all over the golf course.

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Pompton Plains, NJ 07444
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Email: Lawyers@AzrakLaw.com