Practice Overview
BUSINESS FORMATION, OPERATIONS, GROWTH
AND TRANSITION
Our Firm offers strategic legal and business advice, planning and services, including crisis management, to in-house counsel, shareholders and other business owners, and upper management of both domestic and foreign business entities. We make it our business to know and understand our clients' businesses and industries so that we can structure legal solutions designed to meet our clients' business objectives. The scope of our services is broad and includes mergers and acquisitions, contract drafting and negotiation, vendor, customer and employee claims and disputes, financings, capital raising, major asset purchases, shareholder and owner disputes, succession planning, legal compliance audits, defense and tax analysis, planning and compliance. These services often arise in the following contexts:
- New Business Startups or Challenged Next Stage Growth.
Our businesslike approach to resolving our clients' business startup, structuring and growth issues includes finding exactly the right solutions to the complex issues involved in starting or growing a successful business. By focusing our attention on non-publicly traded businesses, we get to know director, officer and shareholder concerns. We take a comprehensive approach to these services and help our clients understand how the right business structure and operation can affect many aspects of their business, including taxes, financing, employment issues, capital raising, and will dictate the likelihood of success or failure of a business enterprise, whether in its infancy or a transitioning phase. For example, some considerations include:
- Entity structure and forum selection benefits and detriments.
- Preservation and securitization of critical intellectual property rights.
- Management and preservation of key employee and talent resources.
- Establishing venue and sources for capital infusions and confident financings.
- Establishment of reliable vendor and customer platforms for sustained growth.
- Preservation of decision making stability and controls.
- Preservation of structural flexibility and stability for growth, transition and the less predictable economic up and down turns that may arise down the road.
- Major Transaction Undertakings: Mergers, Acquisitions, Succession Plans, Shareholder Buyouts and Restructuring.
We have the professional experience and resources to help both domestic and foreign companies of any size complete major deal transactions with either public or other non-publicly traded entities. Our regular undertakings as lead counsel representing both buyers and sellers in a multitude of transactions and structures cutting across many industries have given us the confidence, strength, reputation and efficiencies to close transactions in a timely and favorable manner for our clients. We have earned our reputation as a leading merger, acquisition and major transaction firm in Connecticut since 1944 and have significantly grown and expanded this practice purely through word of mouth referrals from existing clients, investment bankers and opposite side of the table counsel. We are known for helping our clients find unique solutions to mergers and acquisitions and other major deal transactions that may otherwise seem out of reach.
- Disputes Between Owners/Shareholders.
While we work with our existing clients to head off disputes by implementing sound management agreements and, in the family business setting, well thought out and executed succession plans, we are especially experienced, through referral business from other professionals, in handling and bringing about creative solutions and resolutions for complicated and emotionally charged ownership disputes. Without attempts to "calm the waters," a business can be severely or irreversibly impacted by owner conflicts and discourse. We work with principals to develop a detailed strategic plan for resolving such disputes and, when necessa ry or appropriate, we use our business litigation lawyers, to complement the negotiating powers and to push the plan agenda to achieve a full and final resolution.
- Compliance Concerns and Issues
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Tax Compliance. Our tax attorneys are extremely knowledgeable in all aspects of business taxes. We provide legal counsel for tax planning and transaction matters such as: tax planning strategies, IRS compliance advice, tax audit preparation and defense. Three of our attorneys have advanced degrees in taxation from New York University Law School and we are often called upon by financial professionals, accountants, and other attorneys to resolve complex tax planning matters for their clients.
E-Commerce Compliance. Companies doing business on the internet are affected by a wide range of state and federal e-commerce laws that govern free trade, privacy, website development, internet fraud, advertising, licensing, and linking agreements. Our firm has been working closely with e-commerce companies and "bricks and clicks" businesses since the internet began becoming a major economic force in the late 1990s. We serve as in-house or outside counsel for clients who need to understand how e-commerce laws affect their operations and we help clients find solutions to complex e-commerce law issues, such as, linkage and licensing agreement law, internet privacy laws, internet fraud litigation defense, website development legal issues and e-commerce financing law.
BUSINESS SUCCESSION PLANNING
Business succession planning is the art of transitioning the ownership and management of a closely held business from one ownership group to a younger generation of managers. Transferring equity and voting control within a family from a founder to his or her children is one of the most challenging but rewarding areas of business planning. Our attorneys have the knowledge and experience in the multiple areas of law needed to craft a successful succession strategy, with attention to all areas of corporate law, income, gift and estate tax law, trusts and estates law, employment law and mergers and acquisitions law that have an impact on the success of that strategy. We are very sensitive to the emotional issues inherent in giving up control and evaluating the abilities of your children. We are most proud of the long term relationships we have in representing clients in the successful transition of their businesses down to as many as four generations.
Some of the techniques used to transfer equity at reduced transfer tax costs while maintaining voting control in the older generation include:
- Corporate recapitalizations creating voting and non-voting shares.
- Creating preferred stock or preferred LLC and Partnership interests to preserve income that does not participate in future growth.
- Transfers of equity interests using gifting strategies taking advantage of inter-family valuation discounts.
- Transfers of substantial equity interests on a gift tax free basis using grantor retained annuity trusts.
- Sales of equity, free of capital gains, to intentionally defective grantor trusts.
- Gifts of equity to spousal gifting trusts to maintain income for older generation.
- Redemption agreements during lifetime or on death of older generation.
- Shareholder, operating and partnership agreements to govern the rights and obligations of the owners.
- Trusts to create asset protection against future divorces and liabilities of the younger generation.
- Employment agreements to clearly identify responsibilities.
- Director agreements on dividends and distributions.
- Insurance funded buy-sell agreements.
- Real estate structuring for tax reduction and separation from operating assets.
We work in concert with other attorneys, accountants, business psychologists, and appraisers to achieve the plan that works.
Mario J. Zangari, Robert F. Cohn, Christine A. Barker and Robert W. Blythe all are well-versed in business succession planning.
DISPUTE RESOLUTION
Business succession planning often leads to disputes between business owners and family members. When egos, family loyalties and differing abilities interact, our attorneys have in many instances brought the family together. Our firm has earned a reputation for helping our clients find unique, cost effective resolutions with the aim of avoiding litigation. In many instances, our attorneys are advisors to the family and, as a result, are able to achieve a compromise among opposing personalities.
If litigation cannot be avoided, our litigation attorneys work well together to provide a complete and efficient dispute resolution service to businesses and their owners. Hugh W. Cuthbertson and Steven C Rickman represent business in disputes, as more fully described on our civil litigation and dispute resolution pages.
Estate Planning
ESTATE PLANNING, ELDER LAW AND ESTATE ADMINISTRATION
We believe that an estate plan should distribute wealth in accordance with a client's personal values arising from his or her life experiences. We seek to insure that wills, trusts and beneficiary designations protect and promote the well-being of a client and his or her loved ones. Our success lies in the ability to explain, in simple language, difficult estate and trust concepts. After a client executes a series of estate planning documents, he or she leaves our office with a complete understanding of the manner in which their assets will be distributed and to whom, as well as the potential liabilities for estate tax and administration expenses. Our representation, moreover, continues beyond death or incapacity through all aspects of asset protection, probate, trust administration and estate tax proceedings.
Traditional Estate Planning
Traditional estate planning uses one or more of the following:
- Simple wills, pour-over wills and wills containing testamentary trusts.
- Revocable living trusts creating trusts for spouses and or children and grandchildren.
- Generation skipping trusts.
- Education trusts for children or grandchildren.
- Powers of attorney and medical directives.
- IRA, life insurance and annuity beneficiary designations.
Our wills and trusts are individually prepared by our estate planning attorneys to meet each client's goals. We are proud to say that Robert F. Cohn, who heads our estate planning practice area, is the author of the Connecticut Estate Planning, Wills and Trusts Library forms and practice manual, published by Data Trace Publishing Company, a valuable resource for practitioners in Connecticut.
State and Federal estate taxes continue to be of great concern to our clients. We are well versed in estate tax reduction planning techniques, not all of which are appropriate in every instance. The estate tax reduction tools that can be very effective include:
- Irrevocable trusts such as life insurance trusts, spousal gifting trusts, multiple beneficiary gifting trusts, personal residence trusts, grantor retained annuity trusts, intentionally defective grantor trusts.
- Interfamily low interest loans and sale techniques.
- Generation skipping trusts and dynasty trusts.
- Family partnerships, family limited liability companies and fractional interest plans to create valuation discounts.
- Gifting strategies involving annual exclusion gifts, tuition payments, charitable giving and generational gifting.
- Binding cross purchase or buy-sell agreements.
- Preferred stock recapitalizations and freeze partnership transactions.
Although the best results are obtained by using several different strategies employed over many years, there are options for estate reduction for a client with a limited life expectancy.
Elder Law is a practice area that specifically concerns seniors, veterans, and disabled individuals (of any age). Our elder law attorneys work with clients and their families to implement the most effective techniques to preserve and protect both our clients and their assets against future health care costs and long term care issues through the use of:
- Health care directives.
- Revocable or irrevocable trusts.
- Personal care and rental agreements.
- Family loan agreements.
- Residence transfers to children.
Our clients are able to obtain the maximum allowable assistance for institutional skilled nursing, assisted living, independent living, or homecare assistance, all while preserving their estates for themselves and successive generations.
Our counsel are not only experienced in advising clients about asset protection and planning, but regularly counsel clients on residential and health care planning as well. Our staff visits clients at home and/or in senior communities. We evaluate not only the kind of care received, but the quality and nature of the residential environments in order to advise clients appropriately for the future.
Our attorneys lecture on Elder Law benefits in Connecticut. We have also appeared both on local and cable programming. Our attorneys participate in the Connecticut Bar Association's "Veterans Benefits Workgroup" by providing estate planning and other assistance for Veterans. We regularly obtain various VA financial benefits for clients, including the Aid and Attendance pension, Service Connected Disability benefits for surviving spouses of deceased veterans, and the DOJ Civil Tort RECA award, which resulted in $90,000 being granted to the widow of a deceased veteran.
Special Needs Planning
Children or grandchildren with disabilities require sophisticated planning to insure that assets set aside for their benefit will not reduce or eliminate assistance otherwise available. Two types of supplemental needs trusts are available: 1) a statutory trust for the disabled person's own assets and 2) asset protection discretionary supplemental needs trusts, created by family members to manage gifts and inheritances. Our attorneys have knowledge of entitlement programs and their administrative requirements.
For over 40 years, our firm and its predecessors have assisted families in their time of grief by completing the complex probate administration process. Our familiarity with the probate process and court personnel allows us to minimize conflict and delays. The probate administration process requires:
- An application to admit a will to probate.
- The judicial appointment of an executor or administrator.
- The filing of an inventory and list of claims.
- Preparation of an estate accounting and affidavit of closing, and conducting required hearings.
If disputes arise concerning an estate, including will contests, assets appropriated prior to death, malfeasance of fiduciaries or division of assets, our litigation attorneys are fully capable of resolving these difficult matters. Although many law firms claim to probate estates, we have the knowledge and experience to conduct the probate administration in an efficient and cost-effective manner.
Post Mortem Estate Planning
The use of disclaimers and other sophisticated post-death planning techniques can substantially reduce estate taxes and protect assets for the benefit of the family. We are familiar with and routinely use such post mortem planning transactions to create flexibility and to fine tune the estate plan to apply to the circumstances existing at the time of death.
Trust Administration
In certain circumstances, our attorneys serve as independent trustees of client inter-vivos and testamentary trusts. Independent trustees are required to protect trust assets from being subject to estate taxes. Independent trustees also serve to break deadlocks that could otherwise result in litigation. We have the capability to prepare accountings of trust principal and income transactions and to advise grantors, co-trustees and beneficiaries on income tax aspects of trust taxation and taxation of distributions.
Estate Tax Return Preparation
We have more experience in preparing federal estate tax returns and Connecticut, New York, Massachusetts and Rhode Island estate tax returns than many accounting firms. Estate tax returns reflect the results of lifetime tax planning and techniques that have to be presented with care in order to minimize scrutiny. We work closely with appraisers to obtain proper valuations of non-marketable assets such as closely held business interests and real estate entities. In the event of an audit, we work very hard to defend successfully the positions taken on the estate tax returns and are able to litigate up to the tax court level to reduce additional estate tax assessments imposed by the IRS or state taxing authority as a result of the audit process.
Real Estate
The real estate practice of Zangari Cohn Cuthbertson P.C. is wide-ranging. We represent our clients as buyers, sellers, investors, and borrowers of residential and commercial real estate. We also represent foreign-owned companies purchasing or selling property in Connecticut or the tri-state region.
Real Estate Transactions and Financing
We have extensive experience in:
- Real estate sales, purchases, and financing
- Low Income Housing Tax Credit financing
- Conduit loan financing
- Government insured financing
Our clients include developers, building contractors, subcontractors, investment syndicates, and landlords. We routinely draft and review:
- Commercial leases
- Ground leases
- Construction contracts
Environmental and Land Use Approvals
Included in the scope of our review is the review of environmental reports and Connecticut Transfer Act filings for our clients. We also routinely handle matters involving land use approvals for development projects and other regulatory matters.
Commercial Lender Representation
We also represent banks and other financial institutions in connection with commercial real estate loans, commercial loans, sophisticated financing and credit facilities. Our past and present representation of several banks has given us a unique ability to surmount problems that may arise in the negotiation and completion of such transactions.
We have experience in the creation and development of common interest communities and issues associated with the workout of troubled projects. We have drafted and reviewed documents relating to commercial and residential condominium projects and other common interest communities.
Real Property Tax Appeals and Other Real Estate Litigation
Our attorneys have significant experience in litigation affecting real estate issues and property tax appeals. We have litigated matters relating to construction contracts, easements and quiet title actions and frequently handle administrative and court appeals of real property tax assessments for our residential and commercial clients.
Commercial real estate property issues are often part of complex mergers and acquisitions and other business agreements. Our commercial real estate lawyers offer experienced legal counsel and a full range of commercial real estate services. We work with our business clients to investigate legal options and solutions that take into account the entire business picture. Commercial real estate matters often include tax planning, contractual agreements, and often extend into estate planning and probate issues.
If your closely-held or family-owned business has commercial real estate needs, we invite you to contact us to schedule a consultation. We are known for thoroughly understanding each client's business and personal circumstances so that we can provide precisely the right advice and representation.
Civil Litigation
CIVIL LITIGATION AND DISPUTE RESOLUTION
Our strength lies in having successfully merged our seasoned attorneys' overlapping and complimentary practice areas in business transactions, succession and estate planning, real estate, employment and litigation. We work well together to provide a complete and efficient dispute resolution service to businesses and their owners. We litigate cases in the state and federal courts at the trial and appellate level, as well as before administrative agencies, but we also advocate for our clients through ADR, including all forms of court annexed and private arbitration and mediation. Where possible, we encourage good, old fashioned negotiation to resolve problems. We also actively counsel our business clients in litigation avoidance.
I. Business Disputes, Litigation and Litigation Avoidance
The following are examples of the type of business disputes that we have recently and are currently handling for domestic and foreign businesses of all sizes and structures and their owners in many industries, including chemical, publishing, real estate development, aircraft manufacturing and component parts, labeling, fitness, marine and food, to name a few:
Disputes between or among business owners
- The business or business owner that must separate from one or more other owners, sometimes referred to as a "business divorce"
- Disputes over shareholder agreements, operating agreements and partnership agreements
- Shareholder oppression and derivative claims in which minority shareholders seek vindication individually and on behalf of the corporation
- Claims of theft, conversion, fraud, breach of fiduciary duty and unjust enrichment (seeking damages, accountings, constructive trusts, declaratory judgments and injunctions)
- Valuation, dissolution and winding up, dissociation
Disputes and issues between the business and its employees (employment and discrimination litigation)
- Defense of employee discrimination and wrongful discharge claims (e.g., Title VII, ADEA, ADA, FMLA) whether pending before the EEOC and CHRO or in state or federal court
- Employee violation of covenants not to compete, solicit or to disclose confidential information, including trade secrets
- Unemployment and overtime wage claims
- Employee theft and misconduct
- Employee applicant issues (e.g., screening and background checks)
- Employee manuals and terms and conditions of employment
Disputes between the business and third parties
- Breach of contract cases (e.g., failure to pay or perform services or provide goods)
- Trademark and trade name infringement and unfair competition
- Interference with contract and business relations
- Commercial lease disputes
- Trespass and property damage
- Personal injury and wrongful death defense
Please contact us to arrange a consultation with counsel.
II. Employment & Discrimination Law and Litigation
Employment law encompasses a broad range of issues affecting virtually every aspect of the employer-employee relationship. Every company needs to be aware of the potential pitfalls that may either facilitate an employee's ability to make a claim of unfair or illegal treatment or that may compromise an employer's ability to mount a successful defense to that claim.
Our firm has attorneys who are experienced in providing advice to companies in a variety of contexts in order to avoid or reduce an employer's exposure to employment or discrimination litigation and, if necessary, to provide an effective defense to employment related lawsuits.
Employee claims may be pursued in a variety of different forums:
State administrative agencies (e.g., the Connecticut Department of Labor's Division of Wage & Workplace Standards, the Connecticut Department of Labor's Unemployment Compensation Department or Employment Security Appeals Division, the Connecticut Workers' Compensation Commission, or the Connecticut Commission On Human Rights & Opportunities).
Federal administrative agencies (e.g., the United States Department of Labor or the Equal Employment Opportunities Commission).
- State or federal trial or appellate courts.
Our attorneys have experience in each of these settings.
Each type of claim has distinctly different procedures for prosecution and defense. In addition, each forum has different advantages, as the relief available may differ depending on where a claim is filed. Our attorneys know how to maneuver among these different forums and, where possible, to select that forum most desirable.
Issues arise daily under state and federal wage and hour laws concerning:
- an employer's duties with respect to the payment of wages.
- an employee's entitlement to wages or the payment of fringe benefits on termination.
- an employee's entitlement to overtime pay (i.e., whether an individual may be considered an "exempt" or "non exempt" employee).
- meal period or work break requirements.
- whether someone is an employee or an independent contractor.
Every company needs to be aware of the need to define and document the terms and conditions of employment in order to avoid subsequent claims for breach of contract. Such claims may arise from:
- a poorly worded employee manual;
- a letter offering employment; or
- an oral promise made in advance of employment.
Every company needs to know how to avoid or to defend against potential claims of discrimination or workplace harassment (e.g., race, gender, sexual harassment, age, national origin, disability and retaliation) arising under a variety of state and federal statutes, e.g.,
- The Connecticut Fair Employment Practices Act ("CFEPA").
- Title VII of the Civil Rights Act of 1964 ("Title VII").
- The Age Discrimination in Employment Act of 1967 ("ADEA").
- The Americans with Disabilities Act ("ADA").
Our attorneys have the ability to counsel employers concerning how best to proceed in order to minimize the likelihood of such claims, as well as the experience to defend against such claims in the event that they are filed.
Our attorneys have experience with other statutes that affect the employment relationship as well:
- The Connecticut Personnel Records Act.
- The state and federal Family and Medical Leave acts.
- The Connecticut Free Speech Statute.
- The Connecticut Whistleblower Statute.
Finally, the termination of employment is an area with specific "dos" and "don'ts." Our attorneys have experience in counseling companies in whether and how to terminate employment. In certain situations, a general release and separation agreement may be advisable. Such documents, however, have specific requirements, depending on an employee's age, and the failure to follow these requirements may invalidate the release. Sometimes, a release may not be necessary at all or inadvisable. In addition, the way in which employment is terminated can be critical, as certain claims can be created during the termination process, depending on what is said or if the termination process is clumsy or is perceived as abusive.
It is our hope that the firm's close attention to our clients' needs will in many cases avoid the filing of discrimination or employment related claims altogether. In the event that such claims cannot be avoided, however, we are well equipped to represent companies at every stage of the proceeding and in whatever forum may be involved.
III. Aviation and Aerospace Litigation Defense
Aviation and aerospace litigation defense covers a broad spectrum:
- Domestic and foreign air crashes resulting in wrongful death and personal injury.
- Incidents of air turbulence, hijacking, terrorism, emergency evacuations, alleged food poisoning and even the simple trip/slip and fall on the aircraft or in the airport.
- Overbooked flights/denied boarding, travel delays, lost baggage, alleged discrimination and even assaults among passengers.
- Commercial losses to shippers and consignees caused by alleged damage, loss or delay of their cargo.
- Hull losses sustained by the owner of the aircraft and its subrogated insurers.
- Products liability claims involving component part manufacturers.
Aviation related matters are often not resolved under local state law, but are governed by international treaties, intercarrier agreements, contractual terms and conditions and federal statutes and regulations. When an accident arises during international air carriage, it may be governed by a treaty known as the Montreal Convention. Where a foreign carrier defendant is owned by its government, certain aspects of the litigation are governed by the Foreign Sovereign Immunities Act. Serious incidents occurring in the United States require governmental investigation by the National Transportation Safety Board. Foreign accidents are investigated by the aviation authority of the foreign state, in some cases pursuant to the protocols of the International Civil Aviation Organization (ICAO), a specialized agency of the United Nations. The governmental investigation and reports required in response to aviation accidents impact the handling of private litigation related thereto.
Actions filed in jurisdictions having little connection with the incident may be subject to defenses based on lack of jurisdiction or forum non conveniens. Aviation and aerospace cases often require the court to make difficult choice of law determinations, such as when the plaintiff(s) and defendant(s) are domiciled in different states or countries and the incident occurs in yet a another jurisdiction. Purely commercial damages arising from damage to an aviation and aerospace product may be limited by the economic loss rule. Cases arising from the same or similar events that have been filed in different jurisdictions may be transferred to a single court for consolidated pretrial proceedings in accordance with federal rules governing multidistrict litigation.
Effective representation in these matters requires experience in traditional aspects of federal and state court litigation, as well as the ever evolving body of aviation and aerospace law. One of our principals has practiced for over twenty years in this area of the law defending domestic and international aviation and aerospace companies and their insurers in multiple jurisdictions throughout the United States. We are well positioned to handle these matters, either as lead counsel or as local Connecticut, New York or U.S. counsel to the national or non-U.S. attorneys who act as direct legal representatives to the carrier, manufacturer or their insurers.
We also provide experienced legal representation in a variety of uninsured aviation and aerospace related matters. Our attorneys have tried employment discrimination disputes for foreign air carriers, negotiated contract disputes between aircraft manufacturers, drafted commercial airport leases and space use agreements and represented aircraft component parts manufacturers in derivative shareholder litigation.
We are committed to working closely with our clients to achieve the most effective resolution of their aviation and aerospace related disputes and we invite you to contact us to discuss whether we may assist you.
IV. Litigation Related To Specific Practice Areas
In addition to the specific types of litigation described above, we regularly represent clients in litigation related to some of our other practice areas, such as probate court litigation (e.g., will contests, charitable trust amendments), property tax appeals, landlord/tenant and commercial lease disputes resulting in eviction actions.






