Litig., 2012 WL 6136746, at *10 (dismissing consolidated class action under
adverse interest to imputation exception).
There is a completed gift if the only way that the donor can revoke the gift or change the beneficiaries is with the consent of a person having a substantial
adverse interest. For example, Ingrid creates a trust for the benefit of Sabrina.
As to
adverse interest conflicts, Rule 1.8 generally prohibits lawyers from entering into a business transaction with a client, unless the client has consented after full disclosure, if the lawyer knows that he or she may have a conflicting interest with the client with respect to the transaction, or the client expects the lawyer to exercise the lawyer's professional judgment for the protection of the client.
The cross references noted in the Restatement comment may lead one to conclude that the agent must be acting outside the scope of her employment to be governed by the
adverse interest exception.
The IRS also found that, because the distribution committee members had substantial
adverse interests to each other (i.e., they were trust beneficiaries and had the authority to pass distributions to one (or to the grantor) to the detriment of the other), they did not possess general powers of appointment over the trust for purposes of [section]2514.
Adverse interest focuses on situations where a CPA provides services on a matter involving two clients whose individual interests on the same matter are directly adverse.
Potential users of futures on VXTYN could include mortgage-backed securities investors and other large credit managers seeking to hedge against
adverse interest rate movements; large bond funds that are naturally long interest rate volatility and are seeking a yield-enhancing mechanism; and hedge funds, volatility arbitrage firms and global macro participants seeking to express their views on forthcoming monetary policy events or to capture mispricing anomalies between cross-asset volatility (e.g., fixed income versus equity volatility).
Imputing Wrongdoing and the
Adverse Interest Exception
The deal includes a debt facility and a risk management solution to protect the company from
adverse interest rate movements.
She is considered as having an
adverse interest in the property, and, as such, he has given up control.
In general, ADR techniques to resolve a dispute with an attest client do not threaten independence if they are designed to facilitate negotiation and do not place the CPA firm and attest client in positions of material
adverse interest. However, if ADR is sufficiently similar to litigation, such as binding arbitration, an
adverse interest threat to independence may exist.
The types of threats faced by members in public practice include
adverse interest, advocacy, familiarity, management participation, self-interest, self-review, and undue influence.
A donor is considered as himself having a power if it is exercisable by him in conjunction with any person not having a substantial
adverse interest in the disposition of the transferred property or the income therefrom.
* The exception to the doctrine, based on
adverse interest of the insiders, should apply only when the agent has "totally abandoned" the interests of the corporation.
