Friday, March 31, 2017

The Third Circuit Clarifies the Standard for Determining Whether Parties Have Agreed to Arbitrate

Aliments Krispy Kernels, Inc. v. Nichols Farms, ___ F.3d ___ (3d Cir. 2017).  The bottom line of this opinion by Judge Fuentes was the reversal of a judgment of the District Court vacating an arbitration award that had been issued in favor of plaintiff.  Plaintiff had moved to confirm that arbitration award and defendant had […]

The post The Third Circuit Clarifies the Standard for Determining Whether Parties Have Agreed to Arbitrate appeared first on Appellate Law NJ Blog.



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Terms of Use Not to Disclosed to Consumers, on a Website That They Never Visited, Do Not Require Them to Take Grievances to Arbitration

James v. Global Tellink Corp., ___ F.3d ___ (3d Cir. 2017).  In this putative class action, plaintiffs were inmates at New Jersey correctional facilities.  They signed up with defendants for a service that would allow plaintiffs to telephone loved ones, attorneys, and others outside of the prisons. One plaintiff signed up via defendants’ website, while […]

The post Terms of Use Not to Disclosed to Consumers, on a Website That They Never Visited, Do Not Require Them to Take Grievances to Arbitration appeared first on Appellate Law NJ Blog.



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Wednesday, March 29, 2017

A Bail Reform Act Case, A “John Doe” Civil Case, and More Criminal Appeals Are Added to the Supreme Court’s Docket

The Supreme Court announced today that it has granted review in three cases.  The first arises under the new Bail Reform Act.  The question presented there, as phrased by the Supreme Court Clerk’s Office, is “At a pretrial detention hearing pursuant to New Jersey’s Bail Reform Act, N.J.S.A. 2A:162- 15 to -126, may the State […]

The post A Bail Reform Act Case, A “John Doe” Civil Case, and More Criminal Appeals Are Added to the Supreme Court’s Docket appeared first on Appellate Law NJ Blog.



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Tuesday, March 28, 2017

Mass Action Plaintiffs Must be Careful in Pleading, or Their Case Will be Removable to Federal Court Under CAFA

Ramirez v. Vintage Pharmaceuticals, LLC, ___ F.3d ___ (3d Cir. 2017).  The so-called Class Action Fairness Act of 2005 (“CAFA”) extended federal jurisdiction not only to class actions over which federal courts previously did not have power, but also to “mass actions.”  28 U.S.C. §1332(d)(11).  To qualify as a mass action, there must be at […]

The post Mass Action Plaintiffs Must be Careful in Pleading, or Their Case Will be Removable to Federal Court Under CAFA appeared first on Appellate Law NJ Blog.



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Model Civil Jury Charges Are Amended in Response to Recent Appellate Decisions

According to a March 24 Notice to the Bar that was published today, the Supreme Court Committee on Model Civil Jury Charges has approved a number of revised Model Civil Jury Charges on a number of subjects.  Though all of the changes are important to note, several of the revised charges resulted directly from recent […]

The post Model Civil Jury Charges Are Amended in Response to Recent Appellate Decisions appeared first on Appellate Law NJ Blog.



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Monday, March 27, 2017

Sovereign Immunity Defeats Contribution Claims Against the State for Pre-Spill Act Discharges

NL Industries, Inc. v. State, ___ N.J. ___ (2017).  In 1976, the Legislature passed the New Jersey Spill Compensation and Control Act, N.J.S.A. 58:10-23.11 to -23.24 (“the Spill Act”).  The Spill Act became effective in 1977. Years earlier, in the early 1970’s, Sea-Land Corporation built a seawall in Laurence Harbor, NJ that was designed to […]

The post Sovereign Immunity Defeats Contribution Claims Against the State for Pre-Spill Act Discharges appeared first on Appellate Law NJ Blog.



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Friday, March 24, 2017

A Sanctions Anniversary

On this date in 2003, the Appellate Division decided Seacoast Builders Corp. v. Rutgers, 358 N.J. Super. 524 (App. Div. 2003).  This was a relatively rare case in which the Appellate Division exercised original jurisdiction under Rule 2:10-5 to decide a discovery issue.  It was an even more rare result, since the panel ordered that […]

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Thursday, March 23, 2017

Condominium Associations May Recoup Insurance Deductibles

One of the largest line items in any condominium association’s budget is its insurance premium. Condominium associations are required, pursuant to their governing documents, to carry adequate property insurance to address common elements (and in many cases, unit owners’ improvements), liability insurance, and director’s and officer’s insurance coverage. Further, condominium associations budget for any insurance claims that may trigger the need to meet an insurance deductible. That deductible may be 10K per claim.

An individual condominium association cannot always singularly address the premium rates because the insurance carrier has to take into consideration its claims history. The claims history includes all of the geographic areas where its insureds are located. Also, there is legislation pending that may impact individual condominium associations’ ability to recoup insurance deductibles paid as the result of an insurance claim.

Assemblyman Dan Benson (D-Mercer County) is the sponsor of Assembly Bill A3683 that when revised (preliminary discussions with the Assemblyman regarding these revisions have been positive), may allow a charge-back to be billed to the owner, or owners, deemed to have caused the loss. These revisions would allow such a “charge-back” to owners deemed to have been negligent in their actions or inactions that were the proximate cause of the loss that triggered the insurance deductible.

CAI-NJ (cainj.org), the local chapter of the Community Associations Institute, is working closely with Assemblyman Benson to move Assembly Bill A3683. I serve on CAI-NJ’s Legislative Action Committee and am working closely with Assemblyman Benson on this bill.

As I write this article, the A3683 bill is pending before the Assembly Housing and Community Development Committee.

Please feel free to contact the author of this blog for more information, or if you have any questions.



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Wednesday, March 22, 2017

Court Upholds Association Revocation of Parking Privileges

A New Jersey trial court has upheld the suspension of parking privileges against a delinquent condominium owner. In this case, the condominium association adopted a Resolution – based on authority from the governing documents – that revoked parking privileges for habitually delinquent unit owners. The unit owner involved failed to pay his common expense fees and had accrued a substantial balance. After notice and an offer of alternative dispute resolution, which was rejected by the unit owner, the Association revoked his parking privileges. The unit owner, a lawyer, sought temporary restraints and a permanent injunction to prevent the Association from revoking his parking privileges.

The unit owner claimed that the family would suffer immediate and irreparable harm if they were not allowed to park their vehicle at their home. They claimed that their grown son would not be able to commute to and from his local college, and the parent would not be able to travel to and from clients. He further claimed that they would not even be able to shop for groceries, and would essentially be stranded in their home.

Although the alleged hardship on the part of the owner would not have been sufficient to interfere with the implementation and enforcement of the Association’s Resolution, the Association demonstrated nevertheless that the unit owner would be able to park on nearby public streets, no more than 600 ft. from their home. The Association argued that the revocation of parking privileges would not create a hardship on the unit owner.

The Court upheld the Association’s Resolution and the revocation of the parking privileges. The Court did allow the unit owner a 20 minute “loading/unloading” period, but also made clear in its Order that anything in excess of the 20 minute time limit would be considered “parking” and would subject the owner’s vehicle to being towed.

Parking resolutions can help community associations with delinquent unit owners. However, they have to be prepared properly and follow the governing documents and state law. Always consult the community’s legal counsel before implementing any such program. If your community would like to learn more about revoking parking privileges, Stark & Stark’s NJ Community Associations lawyers can help.



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Rulings on Lack of Personal Jurisdiction and Forum Non Conveniens Normally Require a Discovery Record

Rippon v. Smigel, ___ N.J. Super. ___ (App. Div. 2017).  This opinion by Judge Haas today reverses a dismissal that was based on lack of personal jurisdiction, forum non conveniens, and res judicata.  The main reason was the state of the motion record, which Judge Haas labeled as “sparse,” “thin,” and “meager.”  The lesson of […]

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Payless Expected to File for Bankruptcy in Next Few Weeks

As i mentioned in my blog from January, “11 Retailers to Watch for Possible Bankruptcy Filings in 2017,” it looks like Payless is on the verge of a bankruptcy filing.

Bloomberg reports that Kansas-based Payless, Inc. may be filing for bankruptcy protection as early as next week. The retail discount shoe chain has more than 4,000 stores in 30 countries. Speculation is that they will close about 10 to 15% of the stores as it reorganizes.

The company has had difficulties in the increasingly competitive online market. Last year the company attempted to increase revenue with a new master plan for opening more Payless Super Stores with a larger footprint, more in-stock footwear, and heightened shopping experience, according to Footwear News.

The company has about $665 million in debt, according to Reuters. In February, Moody’s downgraded the company debt rating, stating the company shown “weaker than anticipated operating performance.”

With the number stores, a Payless bankruptcy can raise questions for many landlords. If you are a landlord with a Payless it is important to know your rights, now. Stark & Stark’s Bankruptcy & Creditor’s Rights Group can help. Our bankruptcy attorneys regularly represent landlords throughout the country, including recently in the District of New Jersey, Southern District of New York, District of Delaware and Eastern District of Pennsylvania on a variety of issues. Most recently, our Group has represented landlords and trade creditors in the EMS, Golfsmith, RadioShack, A&P, Joyce Leslie and Sports Authority Chapter 11 bankruptcy cases.

For more information feel free to contact the author of this blog.



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The Supreme Court Adds Five More Cases

The Supreme Court has granted review in five cases.  One of them is an appeal as of right, by virtue of a dissent in the Appellate Division.  That case is State v. Twiggs.  The question presented there, as phrased by the Supreme Court Clerk’s Office, is “When addressing the statute of limitations in a criminal […]

The post The Supreme Court Adds Five More Cases appeared first on Appellate Law NJ Blog.



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Tuesday, March 21, 2017

The Expansion of Tri-Parenting

Last year I blogged on tri-parenting, or the concept whereby three parents agree to raise a child or children together as a family, with regard to the published New Jersey trial court decision of D.G. and S.H. v. K.S. My previous blog post can be found here.

In that matter, D.G. and his husband, S.H., along with their friend K.S. embarked on a journey of conceiving and raising a child together. The parties agreed to use D.G.’s sperm and K.S.’s egg, as they had known each other longer, and they would give the child S.H.’s surname. All three parties parented the child and were effectively able to do so for most of the child’s early life, until K.S. announced that she had fallen in love with A.A., who she intended to marry, and that she wanted to relocate with the child to California where A.A. resided. When the parties’ could not agree on a “tri-parenting plan”, D.G. and S.H. filed a Complaint seeking legal and physical custody of the child, parenting time, and that S.H. (who did not have any biological ties to the child), was the child’s legal and psychological parent.

After 19 days of trial, the Court found that S.H. was in fact the child’s psychological parent (although K.S. also stipulated to this on the eve of trial), and concluded that D.G., S.H. and K.S. should have equal legal and residential custody of the child, and the court established a 50/50 parenting time schedule. However, the court denied S.H.’s request for legal parentage as a matter of law on the basis that the court does not have jurisdiction to create a new recognition of legal parentage other than what already exists—genetic contribution, adoption, or gestational primacy. Further, although the best interest of the child standard is used for various family law determinations, it is not a factor in defining parenthood under the Parentage Act. (N.J.S.A. 9:17:38 through 9:17-59).

I concluded my prior post by stating that

With the evolution of today’s family, “tri-parenting” and other, similar custody and parenting time situations will emerge, creating a new, unique set of issues for families who are dissolving/separating. As the role of “parent” expands, it will be interesting to see how the courts will progress to handle these delicate issues.

19754957 - one caucasian family father mother daughter man dispute reproach in silhouette studio isolated on white background

On March 8, 2017, The New York Supreme Court of Suffolk County also granted tri-legal custody and visitation, in the matter Dawn M. v. Michael M.

In that matter, Dawn and Michael, a married couple, began a polyamorous relationship with Dawn’s friend, Audria. All three parties considered themselves a family and decided to have a child together. Since Dawn was unable to have a child, the parties decided that Michael and Audria would try to conceive. The credible evidence presented to the Court established that all three parties agreed, prior to a child being conceived, that they would raise the child together as tri-parents.

Audria became pregnant and gave birth to a boy, J.M.; however shortly thereafter the relationship between the parties became strained and Dawn and Audria moved out together with J.M. Michael commenced a divorce action against Dawn, and asserted he no longer considered Dawn to be J.M.’s parent.

The court found credible the testimony of Audria and Dawn that J.M. was raised with two mothers and that he continues to the present day to call both “mommy.” The court further found that in all respects, during the first eighteen months of J.M.’s life when Dawn, Michael and Audria all lived together, and thereafter after their separation, Dawn acted as a joint mother with Audria and that they all taught the child that he has two mothers. The Court also conducted an in camera interview with J.M., which left no doubt in the Court’s mind that he considered both Dawn and Audria to be equal “mommies” and that he would be devastated if he were not able to see Dawn.

Although not a biological parent or an adoptive parent, Dawn argued that she has been allowed to act as J.M.’s mother by both Audria and Michael, that she has always lived with J.M., J.M. has known her as his mom since his birth and that the best interest of J.M. dictates that she be given shared legal custody and visitation with him. Audria, J.M.’s biological mother, strongly agrees. Dawn further argued, along with the child’s attorney, that Michael should be estopped from opposing this application because he has created and fostered this situation by voluntarily agreeing, before the child was conceived, to raise him with three parents, and that Michael has acted consistent with this agreement by allowing the child to understand that he has two mothers.

The Court found that the best interests of J.M. would be served by granted Dawn shared legal custody, stating that “J.M. needs a continuing relationship with the [Dawn] as his mother and that relationship cannot be left to depend on the consent or whim of either his biological mother or father. Anything less will promote great hardship and suffering for J.M.”, and established a tri-custodial arrangement, as Michael and Audria already shared joint legal custody.”

The Court concluded that Dawn, Michael and Audria

created this unconventional family dynamic by agreeing to have a child together and by raising J.M. with two mothers. The Court therefore finds that J.M.’s best interests cry out for an assurance that he will be allowed a continued relationship with [Dawn]. No one told these three people to create this unique relationship. Nor did anyone tell [Michael] to conceive a child with his wife’s best friend or to raise that child knowing two women as his mother. [Michael]’s assertion that [Dawn] should not have legal visitation with J.M. is unconscionable given J.M.’s bond with [Dawn] and [Michael]’s role in creating this bond. A person simply is responsible for the natural and foreseeable consequences of his or her actions especially when the best interest of a child is involved. Reason and justice dictate that [Michael] should be estopped from arguing that this woman, whom he has fostered and orchestrated to be his child’s mother, be denied legal visitation and custody…To order anything other than joint custody could potentially facilitate [Dawn]’s removal from J.M.’s life and that would have a devastating consequence to this child.”

Although the issue of legal parentage was not discussed in the New York Court opinion, it appears that the New York Court is as progressive as the New Jersey Court in moving  towards alternative custody arrangements in light of the evolution of today’s families.



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Friday, March 17, 2017

Big brother is at it again...This time Samsung

It's amazing what companies are trying to get away with over and over again. Remember the day when you were concerned about who would receive information on the items you were purchasing with a credit card. Well those days are long gone. Now we need to worry about who is listening to the private conversations going on in your family room or even your BEDROOM! Smart TVs are the rage because it can make your life so much more enjoyable, as well as the kids' entertainment. However, at what price.  This is the second time TV manufacturers are caught with their pants down. First Visio, now Samsung. They have the ability to listen to your conversation, it is translated and then sold to marketers or worse. We don't know the depths of this yet. Time will tell. This is a complete invasion of privacy.

If you are in need of a NJ Lawyer because you believe your rights have been violated, call for your free consult 800-709-1131 or complete this form and we can call you.  Depending on the type of case, sometimes there are no attorney fees unless you win. Regardless consultations are free!  Call today 800-709-1131.

Thursday, March 16, 2017

Financial Difficulty can cause Car Ignition Issue

Imagine you have been having financial trouble because maybe your spouse lost their job, or maybe you have high medical bills, but you're doing the best you can to make the minimum payments. However, making sure you have food on the table is the priority, sometimes other bills can slip a month or two here and there.

Monday, March 13, 2017

Tomorrow’s Anticipated Blizzard Affects Oral Arguments in New Jersey’s Appellate Courts

The Supreme Court has announced that it has adjourned the oral arguments scheduled for tomorrow.  One of the cases to be argued was a major consumer class action case, Dugan v. TGI Friday’s, 445 N.J. Super. 59 (App. Div. 2016) (discussed here). The several Appellate Division panels that had oral arguments scheduled for tomorrow and […]

The post Tomorrow’s Anticipated Blizzard Affects Oral Arguments in New Jersey’s Appellate Courts appeared first on Appellate Law NJ Blog.



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Gander Mountain Files for Chapter 11 Bankruptcy – Fifth Outdoor Retailer to File in Last Year

Last month I posted a blog indicating that Gander Mountain was possibly preparing for Chapter 11 bankruptcy. The rumors were true.

St. Paul-based hunting and fishing chain, Gander Mountain Company, which bills itself as “America’s Forearms Supercenter,” filed for Chapter 11 bankruptcy protection on Friday in the U.S. Bankruptcy Court for the District of Minnesota, docket # 17-30673 and 17-30675. Gander Mountain is the nation’s largest retail network of outdoor specialty stores for shooting sports, hunting, fishing, camping, marine, apparel, footwear, and outdoor lifestyle.

In a press release, the company cites “challenging traffic patterns and shifts in consumer demand resulting from increased direct-to-customer sales by key vendors and accelerated growth of e-commerce” as reasons for the filing.

Despite the increase in gun sales, the company has faced increased competition from online retailers, like Amazon.com, as well as Dicks, Cabela’s, and Bass Pro.

The company reports that it seeks a going-concern sale, expecting to solicit bids prior to an auction in late April 2017 with a closing by May 15.

Gander Mountain currently has 152 stores in 26 states. It plans on closing at least 32 stores, including:

  • Alabama (4) – Gadsden, Mobile, Montgomery, Tuscaloosa
  • Georgia (3) – Augusta, McDonough, Snellville
  • Illinois (3) – Champaign, Algonquin, Springfield
  • Indiana (2) – Merrillville, Greenfield
  • Minnesota (3) – Rogers, Mankato, Woodbury
  • New York (1) – New Hartford
  • North Carolina (2) – Raleigh, South Charlotte
  • Tennessee (1) – Chattanooga
  • Texas (10) – Houston, Killeen, Laredo, Lubbock, Round Rock, San Antonio, Sugar Land, Texarkana, Waco, West Houston

If you are a landlord with one of these tenants or if you have questions on how best to protect your center, Stark & Stark’s Bankruptcy & Creditor’s Rights Group can help. Our bankruptcy attorneys regularly represent landlords throughout the country, including recently in the District of New Jersey, Southern District of New York, District of Delaware and Eastern District of Pennsylvania on a variety of issues. Most recently, our Group has represented landlords and trade creditors in the EMS, Golfsmith, RadioShack, A&P, Joyce Leslie and Sports Authority Chapter 11 bankruptcy cases.

For more information feel free to contact the author of this blog.



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Collateral Source Statute Does Not Apply to Awards Under the New Jersey Law Against Discrimination

Acevedo v. Flightsafety International, Inc., ___ N.J. Super. ___ (App. Div. 2017).  In this opinion by Judge Reisner, the Appellate Division held that it was error for the Law Division to offset a back pay award under the New Jersey Law Against Discrimination, N.J.S.A. 10:5-12 to -49 (“LAD”) with a portion of the unemployment benefits […]

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Friday, March 10, 2017

Two More Suppression of Evidence Cases for the Supreme Court

The Supreme Court announced today that it has granted leave to appeal in two criminal cases, each of which addresses the suppression of evidence.  In State v. Atwood, the question presented, as phrased by the Supreme Court Clerk’s Office, is “Was the seized evidence properly suppressed based on defendant’s challenge to police conduct occurring prior […]

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Tenant Who Receives a Rent Subsidy Under New Jersey’s “S-RAP” Program Can’t be Evicted for Non-Payment of Additional Rent

175 Executive House, LLC v. Miles, ___ N.J. Super. ___ (App. Div. 2017).  A tenant who receives a rent subsidy under the federal “Section 8” voucher program, 42 U.S.C. §1437 to 1437z-9, cannot be evicted for non-payment of amounts not defined as rent, or for amounts that are “additional rent,” if the tenant is current with […]

The post Tenant Who Receives a Rent Subsidy Under New Jersey’s “S-RAP” Program Can’t be Evicted for Non-Payment of Additional Rent appeared first on Appellate Law NJ Blog.



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Déjà Vu – RadioShack Brand files for Chapter 22 Bankruptcy

The new owner of the RadioShack brand, General Wireless Operations Inc., just filed for Chapter 11 in the United States Bankruptcy Court for the District of Delaware. This is the second Chapter 11 filing for the brand in two (2) years (a chapter 22 filing, like the recent EMS brand filing).

The Company is reportedly closing about 200 stores and evaluating options on the remaining 1,300 stores. The Company cited poor performance of mobility sales as one reason for the bankruptcy filing.

The filing comes directly on the heels of appliance and electronics seller HH Gregg’s Chapter 11 bankruptcy filing earlier this week.

RadioShack and a number of other retailers are attempting to restructure/reduce debt, while also seeking a new footprint. In the last year, Sports Chalet, Sports Authority, EMS, Eastern Outfitters, Golfsmith, BCBG, Fairway Market, The Limited, American Apparel, and HH Gregg have all gone the Chapter 11 route for this financial strategy.

If you have questions on how best to protect your center, Stark & Stark’s Bankruptcy & Creditor’s Rights Group can help. Our bankruptcy attorneys regularly represent landlords throughout the country, including recently in the District of New Jersey, Southern District of New York, District of Delaware and Eastern District of Pennsylvania on a variety of issues. Most recently, our Group has represented landlords and trade creditors in the EMS, Golfsmith, RadioShack, A&P, Joyce Leslie and Sports Authority Chapter 11 bankruptcy cases.

For more information feel free to contact the author of this blog.



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The New Jersey Prompt Payment Act

While many contractors may not be aware of the existence of the New Jersey Prompt Payment Act, its application to construction litigation where payment is sought under either a general-contract or sub-contract is important to the industry. This act was created in order to provide a remedy to both general contractors and subcontractors when payment has been wrongfully withheld by an upper-tier contractor or owner despite the fact that work had been approved and certified for payment. This act is codified under N.J.S.A. 2A:30A-2. By pleading a cause of action under the Prompt Payment Act in construction litigation, a contractor may shorten the time frame when they receive payment from an owner or an upper-tier contractor.

Section A of the New Jersey Prompt Payment Act provides that if a prime contractor has performed in accordance with the provisions of a contract with the owner and the billing for the work has been approved and certified by the owner or the owner’s authorized approving agent, the owner shall pay the amount due to the prime contractor for each periodic payment, final payment, or retainage monies not more than 30 calendar days after the billing date. This section provides strict guidelines as to payments to a prime contractor once a payment application has been approved. Subsection B of the act addresses payment to a subcontractor or sub-subcontractor. This section provides that if a subcontractor or sub-subcontractor has performed in accordance with the provisions of its contract with the prime contractor or subcontractor and the work has been accepted by the owner, the owner’s authorized approving agent, or the prime contractor, as applicable, and the parties have not otherwise agreed in writing, the prime contractor shall pay to its subcontractor and the subcontractor shall pay to its sub-subcontractor within 10 calendar days of receipt of each periodic payment, final payment, or receipt of retainage monies, the full amount received for the work of the subcontractor or sub-subcontractor based on the work completed or the services rendered under the applicable contract.

If payment is not timely made under either section of the act as set forth above, subsection C of the statute comes into play, which provides that the delinquent party shall be liable for the amount of money owed under the contract plus interest at the rate equal to the prime rate plus 1%. Furthermore, under subsection D a contractor, subcontractor, or sub-subcontractor may, after providing seven days written notice of the failure to tender timely payment, suspend performance of the contract without penalty for breach of contract, until such time as the required payment is made. Finally, and perhaps and most important, any civil action brought to collect payments pursuant to subsection F, shall be filed within the State of New Jersey, and moreover, the prevailing party shall be awarded reasonable counsel fees and costs of suit.

As noted, the New Jersey Prompt Payment Act provides a strict time structure pursuant to which payments are due from an owner, prime contractor or subcontractor to parties which they retained to provide materials and services. If this schedule is not complied with penalties such as pre-judgment interest, as well as counsel fees and costs may be imposed if the contractor files suit and prevails. Likewise, it also provides the subcontractor or prime contractor with the ability to suspend work without any repercussions if payment is not made pursuant to an approved payment application. As such, the New Jersey Prompt Payment Act strongly favors a contractor who is entitled to an undisputed payment, however, it is suggested that a party wishing to assert such claims consult with an attorney.



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Thursday, March 9, 2017

Reinforcements for the Appellate Division

Due to a major Appellate Division argument of my own in a mass tort case on Tuesday of this week, I missed the announcement that five trial level judges are receiving additional temporary assignments to the Appellate Division.  The Appellate Division anticipates some retirements at the fast-approaching end of the term.  The untimely death of […]

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Failure to Pay Arbitration Fees Breaches Agreement That Requires Arbitration

Roach v. BM Motoring, LLC, ___ N.J. ___ (2017).  Plaintiffs bought used cars from defendants.  In connection with those purchases, plaintiffs signed Dispute Resolution Agreements (“DRA’s”) that required any disputes to be arbitrated “in accordance with the rules” of the American Arbitration Association (“AAA”).  Several months later, plaintiffs filed for arbitration with the AAA, asserting […]

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Wednesday, March 8, 2017

HH Gregg Files for Chapter 11 Bankruptcy: Part of a Next Wave of Retailers Seeking to Restructure/Reduce Debt and Reduce Footprint

The 61-year old Indianapolis-based appliance and electronics chain, HH Gregg, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Indiana. The company has struggled with declining sales for about four years. According to Reuters, the company has a signed a term sheet with an unnamed party to purchase its assets. The company is it expected to emerge from the bankruptcy process in about 60 days. Of its more than 220 stores, the company plans to operate about 130 normally throughout the restructuring process. It said last week it would shut 88 stores.

HH Gregg is just one of a number of retailers that are attempting to restructure/reduce debt, while also seeking a new footprint. In the last year, Sports Chalet, Sports Authority, EMS, Eastern Outfitters, Golfsmith, BCBG, Fairway Market, The Limited, and American Apparel have all gone the Chapter 11 route for this financial strategy.

As the demographics continue to change shopping habits, it appears that Chapter 11 bankruptcy filings will be more common over the next few years as retailers attempt to meet market challenges with an omni-channel approach – providing customer with a seamless shopping experience, whether the customer is shopping from a device, telephone or at a bricks and mortar store.

Some retailers to watch for possible chapter 11 filing this year include:

  • Gander Mountain – the St. Paul based hunting and fishing chain, also known as America’s firearms superstore.
  • Payless – FootWearNews.com recently reported several of Payless’ major vendor partners noted that the retailer is behind on its bills.
  • Sears Holdings – recently, a number of Sears and Kmart stores began closing across the country. Further, Sears sold its valued Craftsman brand to Stanley Black & Decker, Inc.
  • Claire’s Stores, Inc. – Clark’s places this chain on the watch list due to high outstanding debt.
  • Rue21, Inc. – this retailer is facing tough competition in the youth retail market and hold high debt according to Clark’s.
  • CVS – the company plans to eliminate roughly 300 jobs and close 200 stores, equal to about 5 percent of its outlets, according to The Wall Street Journal.
  • Chico’s – the company announced it will close 120 stores in the next three years.
  • American Eagle Outfitters – the company is slated to close 150 of its more than 1,000 stores by the end of 2017. Like a number of other “youth retailers,” the company has struggled recently according to the International Business Times.
  • Office Depot – antitrust concerns derailed a merger with Staples in May. Since then, the company announced it would close about 300 more stores in the next three years, according to Fortune.
  • The Children’s Place – another 200 stores are slated to close in 2017, according to chainstorage.com.
  • Finish Line – the sports apparel closed 54 stores in 2016 and plans to close another 25 stores in 2017, according to indystar.com.

If you are a landlord with one of these tenants or if you have questions on how best to protect your center, Stark & Stark’s Bankruptcy & Creditor’s Rights Group can help. Our bankruptcy attorneys regularly represent landlords throughout the country, including recently in the District of New Jersey, Southern District of New York, District of Delaware and Eastern District of Pennsylvania on a variety of issues. Most recently, our Group has represented landlords and trade creditors in the EMS, Golfsmith, RadioShack, A&P, Joyce Leslie and Sports Authority Chapter 11 bankruptcy cases.

For more information feel free to contact the author of this blog.



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The Requirement to Submit All Items From Below on Summary Judgment Appeals Applies Whether Summary Judgment Was Granted or Denied

Noren v. Heartland Payment Systems, Inc., ___ N.J. Super. ___ (App. Div. 2017).  On February 6, 2017, the Appellate Division issued a published opinion in this case, which was discussed here.  In that opinion, the panel dismissed defendant’s cross-appeal from the denial of its motion for summary judgment because defendant had not included in the […]

The post The Requirement to Submit All Items From Below on Summary Judgment Appeals Applies Whether Summary Judgment Was Granted or Denied appeared first on Appellate Law NJ Blog.



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Tuesday, March 7, 2017

Third-Year Law Students May Now Appear Before the Appellate Division

Today, the Supreme Court announced an amendment to Rule 1:21-3(b).  That rule has, until now, permitted third-year law students at ABA-approved law schools to appear before trial courts or agencies in conjunction with a legal services or public interest organization or law school clinic certified under Rule 1:21-11(b)(1), or an agency of municipal, county, or […]

The post Third-Year Law Students May Now Appear Before the Appellate Division appeared first on Appellate Law NJ Blog.



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Friday, March 3, 2017

Equity Affirms an Inventive Solution to an Environmental Dilemma

Matejek v. Watson, ___ N.J. Super. ___ (App. Div. 2017).  Sometimes, judicial opinions do not require the citation of many cases in order to reach their result.  That can be most true in cases involving Chancery issues, where inventive solutions sometimes go beyond what precedent may offer.  Today’s opinion by Judge Fisher in an environmental […]

The post Equity Affirms an Inventive Solution to an Environmental Dilemma appeared first on Appellate Law NJ Blog.



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Thursday, March 2, 2017

NJ Gas Tax, Federal Infrastructure Projects, and Eminent Domain

New Jersey approved a gas tax in 2016 to replenish the New Jersey Transportation Fund. The proceeds of the tax are to be used to make infrastructure improvements throughout New Jersey. In addition, the Trump administration recently announced a policy to support infrastructure projects on a national level.

The impact of infrastructure projects and related spending should benefit the majority of the residents of New Jersey. However, some property owners will be forced to contribute part or all of their property to infrastructure projects for the benefit of the public since the government can use the power of eminent domain when building or improving public projects. We anticipate on an increase in the filing of eminent domain actions as a result of the planned increase in infrastructure spending, and concurrent impact on private property.

When a bridge is repaired or a road widened, the government must generally make additional improvements associated with the project. For example, if a state highway is widened, the New Jersey Department of Transportation will often install new sidewalks. If a bridge is repaired, roads surrounding the bridge are often improved, with changes to access in addition to site improvements. Property owners should be aware of how an infrastructure project can impact their property.

From a big picture point of view, there are two issues that should concern property owners.

First, will the project require any type of modification to the access to and from their property? Under the New Jersey Highway Access Management Act and common law, the government is permitted to revoke, modify, or adjust access to property.

Second, in order to make road improvements, the government often needs to acquire a small strip of property along the frontage of many properties. For example, if the government is going to make a change to the access of your property or construct new curbing and a sidewalk, the government may need to acquire 5 to 10 feet along the front of your property. Although 5 or 10 feet along the front of your property may seem like a minor taking, the implications to the retained property can be significant.

When a property owner learns about a new infrastructure project near his or her property, it is prudent to start obtaining information to determine whether or not the project will have a direct impact on the property. Some of the preliminary questions to ask are:

  • Has any type of concept plan been prepared by the government?
  • Will the proposed plan have any impact on access to my property?
  • Will the project involve a taking of any portion of my property?
  • Will I have an opportunity to comment on the plan before it is approved in order to minimize damage to my property?

It is crucial to be proactive and obtain the necessary information before the government comes knocking on your door. Property owners should assemble a strong team of attorneys, appraisers, and engineers (i.e., traffic engineer) to properly analyze how the change in access – or taking – will impact the property.



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