Recently in Consumer Law Category

February 1, 2012

IRS has published final rules to determine whether certain income that is the result of personal physical injuries or physical sickness is taxable

Damages received as a result of a lawsuit are made to compensate victims for injury. Furthermore, these damages are designed to make the victim whole again, not as a form of enrichment that should be taxed as income. This is true regardless of whether the damages were the result of personal injuries arising from a tort or some other form of legal wrong.

The earlier IRS rule was that only those damages recovered for a "tort or tort type rights" were excluded from gross income for tax purposes. Treating damages that arise from tort-type rights differently than other damages resulted in inequitable treatment against victims of discrimination and those that live in no-fault states.
The new regulations deleted the requirement that to qualify for exclusion from gross income, damages received from a legal suit, action, or settlement agreement must be based upon "tort or tort type rights." The proposed regulations provided, instead, that the section 104(a)(2) exclusion may apply to damages recovered for a personal physical injury or physical sickness under a statute that does not provide for a broad range of remedies, and that the injury need not be defined as a tort.
A full copy of the new rule can be found here.

The lawyers at Tatlow, Gump, Faiella & Wheelan, LLC are long time members of the American Association for Justice (AAJ) formerly known as the Association of Trial Lawyers of America (ATLA). The organization was established in 1946 to safeguard the rights of the injured, strengthen the civil justice system, promote injury prevention, and foster the disclosure of information critical to public health and safety. AAJ advocated for the proposed IRS rule change. TGFW is pleased that the IRS has removed the tort-type rights tests from the taxable determination of damages.

November 14, 2011

Cadillac CTS Recall

The National Highway Traffic Safety Administration has issued a recall notice for the 2012 model year Cadillac CTS sport sedans due to possible brake failure. About 674 of the vehicles have loose nuts that could lead to unexpected brake failure. The problem on some of the sedans that were produced from October 21st through October 26th is the retention nuts were not tightened to the correct amount of torque. This could cause the pedal and pushrod to separate if the nut becomes loose, therefore causing a complete loss of brakes and increasing the risk of a collision.
To see what steps you need to take if you have purchased this vehicle visit this site.

September 23, 2011

Lawnmower Recall

John Deere is recalling 36,500 lawn mowers due to fan failures.
The cooling fan is located in front of the steering wheel under the hood. The engine can overheat causing any surrounding plastic to melt or possibly create a fire when the fan stops working.
The company has received 163 incident reports altogether according to the Consumer Product Safety Commission's recall notice. John Deere recalled the 36,500 lawn mowers after 83 reports of engine fires and melting engines, including one minor burn injury were reported.
To determine whether or not your John Deere lawn mower is involved in the recall please visit this website.

June 2, 2011

How To Help Joplin

If you would like to assist the victims of the Joplin tornadoes there is now a safe website available for you to do that. This website will ensure that your donations get to Joplin and not elsewhere. Below is a letter from local Congressmen describing the website and how it works:


Dear Friends,

In Joplin, we have felt your thoughts and prayers. Thank you for your compassion, your contributions and your willingness to help.

A Bright Futures team from Joplin has launched a website called RebuildJoplin.org. This website is a comprehensive resource for people affected by the storm AND for those who wish to help.
If you are able to help, please consider going to the website and get connected with verified agencies.

Also, please help us spread the word that RebuildJoplin.org is the primary website for sending help to Joplin. It's by Joplin, for Joplin.

These agencies and resources are screened and verified. RebuildJoplin.org is endorsed by the City of Joplin, Joplin Schools, Joplin Area Chamber of Commerce and United Way 2-1-1.

RebuildJoplin.org, an initiative launched by Bright Futures, will adjust to the changing needs of community relief efforts. Joplin Schools created Bright Futures as a grass roots, community based program that creates partnerships and utilizes community resources for the common goal of helping our kids and strengthening our families and community. In the wake of the destruction, Bright Futures is adapting a successful program to meet the needs of those impacted by the tornado.

Friends, I ask that you please disseminate this information to your contact list so we can spread the word as quickly as possible, as far as possible. Together we can rebuild Joplin.

A local contact person with Rebuildjoplin.org is Garen McMillian 417-483-5136

With all our thanks,

Senator Ron Richard
Representative Tom Flanigan
Representative Charlie Davis
Representative Mike Kelley
Representative Bill Lant
Representative Bill Reiboldt
Representative Bill White


January 6, 2011

A Recommendation From the EPA

Schools across the United States are being urged to replace the electrical components in the older light fixtures. The light fixtures pose a threat of contamination that could lead to cancer later on in life. The Environmental Protection Agency say that the light fixtures contain a man- made chemical called polychlorinated biphenyls(PCBs). The PCBs can do harm to the reproductive and immune systems in the body and if they build up enough even cause cancer. Schools are to remove the electrical components immediately if they are leaking the PCBs.

To learn more, read this article at the PCBs">Washington Street Journal.

January 3, 2011

Consumer Safety for 2011

There are many harmful things in our world that keep people wondering if there are better or safer options. Consumer Safety Agencies are now going to step in to make all this questioning just a little easier. By March 2011 there will be a fully functional website made available by the Consumer Product Safety Commission at SaferProducts.gov. This site is going to have reports of harmful products so that you will know ahead of time what will and will not be best for you. There will even be a place for you to comment or talk about your dangerous product.

Food safety will also be addressed. The Food Safety Modernization Act states that the FDA will begin checking facilities and farms which haven't been inspected at all, or only every 10 years by the FDA. This is the biggest food regulation overhaul in over 70 years.

December 17, 2010

The Missouri Attorney General Offers Tips for Safe Shopping Online

Here is some advice for consumers on avoiding counterfeit goods, protecting their credit and many other ways to practice safe online shopping. See the Missouri Attorney General's website for more information.

December 12, 2010

FBI Offers Tips to Avoid Being Scammed This Holiday Shopping Season

To help protect yourself while shopping this holiday season, visit this F.B.I. website for informative tips on avoiding common scams.

November 26, 2010

Why Isn't Patient Safety Improving?

A recent study published in The New England Journal of Medicine found that patients were commonly harmed in a group of 10 North Carolina hospitals. In the five years the study ran, from 2002 to 2007, the number of incidents never decreased. The most common problems were infections aquired while in the hospital, and drug and procedure complications. Many of the incidents evaluated during the study were preventable, such as severe bleeding in an operation, trouble breathing after a procedure was performed incorrectly, and obstetric delivery devices causing unnecessary tissue damage to women during labor.

To read more about rising concerns over patient safety, visit the New York Times article, "Study Finds No Progress in Safety at Hospitals."

November 24, 2010

More Drop-Side Cribs Recalled For Entrapment and Suffocation Hazard

Bassettbaby has recalled approximately 90,000 cribs with drop-sides citing safety hazards that include suffocation, entrapment and falling out of the crib. For more information about this recall, visit the Consumer Product Safety Commission press release here.

November 12, 2010

Dangerous Caffeinated Alocholic Drinks Are Growing in Popularity

Mixing caffeinated beverages and alcohol together is not a new idea. Drinking soda with rum or whiskey has long been a favorite of many. In more recent years, with the introduction of highly caffeinated canned energy drinks and new trend has begun that is more dangerous than most people realize.

It is now very popular to mix a cocktail containing both alcohol and a canned energy drink. Especially popular with young adults who can be prone to drinking excessively, these high energy cocktails can be extremely dangerous. The human body has a response that is designed to naturally prevent you from consuming deadly amounts of alcohol--sleepiness. The more you drink the more tired and relaxed you become. High energy cocktails trick your body into ignoring this natural response. The caffeine keeps you energized, all while you're consuming more and more alcohol and you never realize how intoxicated you've become.

The New York Times recently did a news piece reporting on various colleges and communities around the country where complaints of alcohol poisoning and even death have been reported after use of these types of drinks.

There is an even greater danger presented by some newer products on the market where malt liquor and high energy drinks are being sold in the same can. "Four Loko" is just one of the name brands of these dangerous beverages. Senator Charles Schumer of New York is calling for a ban on the sale of caffeinated alcoholic drinks after reports of a 17 year old girl died after drinking Four Loko. For more on that news story, visit the Wall Street Journal report here.

November 5, 2010

John Deere Zero Turn Mowers Recalled

Last week, John Deere announced that it is recalling approximately 6,500 EZtrak Zero Turn lawnmowers sold between February 2009 and September 2010. A bolt on the foot lift can catch and cause the steering level to become stuck in the forward position, potentially causing injury. For more information, visit the news story by United Press.

November 1, 2010

Exercise Your Right to Vote Tomorrow

Tomorrow is the time to give weight to your opinion by casting your vote. In addition to candidates seeking election for a variety of offices, there are also many important measures on the ballot tomorrow. The Missouri Secretary of State's Office has a website dedicated to voter information. If you have any questions about what forms of identification are acceptable, or if you don't konw where to go to vote, visit this website for more information.

October 2, 2010

Fisher Price Issues Massive Recall on Toys and High Chairs

Fisher Price has issued a massive recall on a variety of its products, including tricycles and high chairs. To read more about this recall, view the ABC news story.

October 1, 2010

Warning to Parents: Baby Sleep Positioners Are Dangerous

Safety experts are now warning that a group of products geared at helping babies remain in a safe sleeping position are actually very dangerous. Baby sleep positions were thought to keep babies from rolling over onto their bellies, thus preventing them from suffocating. The two main types of sleep positioners are flat pads with wide bolsters that go alongside a baby's belly or an inclined mat with bolstered sides.

New information shows that these sleep positioners are actually causing suffocation deaths in infants. Federal officials are telling parents to stop using these products. For more, visit this news story by the Los Angeles Times.