Thursday, August 31, 2017

A 2015 Amendment to the Unemployment Insurance Statute is Construed Favorably to a Claimant

McClain v. Board of Review, ___ N.J. Super. ___ (App. Div. 2017).  In general, employees who leave work voluntarily are disqualified from obtaining unemployment benefits.  In 2015, the unemployment statute, N.J.S.A. 43;21-5(a), was amended to exempt from disqualification “an individual who voluntarily leaves work  with one employer to accept from another employer employment which commences […]

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Wednesday, August 30, 2017

Don’t Look Back In Anger, When It Comes to Estate Planning

You may believe that once you’ve completed a Will, it never again needs to cross your mind. Yet if Hurricane Harvey’s path of destruction has taught us anything, it’s that we may not get a say in our future life events. While not all sudden life changes can be avoided, there are always ways in which you can better protect yourself and your loved ones.

Can Anything Be Done to Stop the PennEast Pipeline?

What is the status of the PennEast Pipeline project?

With the recent confirmation of two new commissioners, a quorum has been restored in the Federal Energy Regulatory Commission (FERC). This likely means that FERC will soon begin addressing the approval of natural gas pipeline projects, including the PennEast Pipeline.

The PennEast Pipeline project received its final environmental impact statement from FERC in April 2017.

In the next step in the approval process, FERC will decide whether to issue a Certificate of Public Convenience and Necessity under Section 7 of the federal Natural Gas Act. Once a Certificate is issued, as is probable, FERC will convey the power of eminent domain to the PennEast Pipeline project owners. PennEast will then use the power of eminent domain to take private property to construct the pipeline along a right-of-way approved by FERC.

What is eminent domain?

Eminent Domain is the power of the government to take private property and convert it into public use. Condemnation is the process used to exercise the power of eminent domain. The Fifth Amendment requires that the government provide just compensation to the property owners if it takes property through eminent domain. This means if the government wants your land for public use, it must buy it from you at fair market rates. Usually, the government will try to buy your property before going through the condemnation process. The landowner’s consent is not required for the government to take property for public use.

PennEast is not a government agency – so how can it take my land?

Certain private companies and projects are granted the right to acquire property by eminent domain, including railroads, energy companies, and natural resource companies. If the PennEast Pipeline project receives a Certificate of Public Convenience and Necessity, the government will grant PennEast the ability to use eminent domain to enable it to take the property of private landowners to build its pipeline.

Once PennEast gets a Certificate of Public Convenience and Necessity from FERC, can PennEast come on my property and conduct surveys or tests?

Absolutely not. PennEast must either have the landowner’s consent to come on the property or a Court order.

How will PennEast proceed with taking my land through eminent domain?

Once PennEast obtains the Certificate of Public Convenience and Necessity, PennEast may attempt to negotiate the amount of “just compensation” to be paid with the landowners, or proceed immediately with filing a complaint in the United States District Court seeking a court order for possession of the property and confirming PennEast’s right to take property. Since PennEast needs to gain access to property to complete surveys and studies, it is likely that PennEast will immediately file suit.

Will I be penalized if I choose not to negotiate and force PennEast to go to court?

No. You have a right to contest the taking of your property and what PennEast must pay for your property.

Can I stop PennEast from taking my property?

  • You can challenge FERC’s decision to issue the Certificate of Public Convenience and Necessity by first seeking a rehearing before FERC, followed by an appeal to the United States Court of Appeals. Some groups, like the Sierra Club, have succeeded in challenging the issuance of a FERC Certificate.
  • You can oppose the taking when PennEast files its lawsuit against you to take your property. Many traditional defenses under state law are not applicable to pipeline cases that fall within the jurisdiction of FERC.
  • You can contact the New Jersey Department of Environmental Protection and the Delaware River Basin Commission and voice your objection to the pipeline and describe the harm to you and your property. Although this is not a direct challenge to the right to take your property, PennEast cannot put a shovel in the ground and start construction until certain approvals are obtained from these two agencies. If approvals are not obtained and the pipeline is never built, property owners may be able to convince the Court to vacate the orders approving the taking of their property.

If PennEast prevails and the court determines it is authorized to exercise the power of eminent domain – you can continue to negotiate the amount of compensation to be paid. If no agreement is reached, the court will either hold a trial or appoint three commissioners to a panel to determine the amount of compensation. A trail or hearing will be held and evidence will be presented.

Do I need a lawyer? Can’t I just negotiate with PennEast on my own?

You can negotiate on your own, but, depending on your knowledge of eminent domain, it is probably advisable to have an attorney from the beginning this complicated process. PennEast is just a buyer in a real estate transaction–it is trying to get the most value at the lowest price — and it has all of the power in the negotiation. Anything you say or any information you reveal in the process may be used to decrease the value of your property. If you are not aware of all of the compensation options and all of your rights, you may not be able to prevent the condemnation or receive the most money for your property that is taken. PennEast not obligated to look out for the property owner’s best interest; it only has to make sure you are “fairly” compensated. Keep in mind that fair compensation could be at the bottom of market rates. A lawyer that is experienced in eminent domain can help you get the best price and ensure you are compensated to the full extent of the law and your rights.

Stark & Stark’s condemnation and eminent domain attorneys have substantial experience litigating the government’s right to take private property including negotiating and litigating gas pipeline cases. The Condemnation & Eminent Domain Group has extensive experience in real estate valuation and works closely with outside professionals such as appraisers, engineers and planners in order to present compelling expert testimony to the jury or judge.



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Tuesday, August 29, 2017

Addressing Harassment Issues in Community Associations

Community Association Board of Directors Powers:

As is well understood, Community Association Boards are elected to manage the property, affairs, and business of the Association. The Board has the power to enforce obligations of the unit owners and do what is necessary and proper for the management of the community. This includes enforcing the Association’s Governing Documents. If a violation occurs, the Board generally has the power to assess penalties.

Typical violations concern parking issues, storage of property in common areas, failure to comply with fireplace and dryer vent cleaning requirements, violation of pet restrictions, and similar issues.

However, sometimes unexpected egregious behavior, in the form of harassment, occurs. While unit owners and residents may express their opinions and communicate with Board members and Association representatives about community business, harassment has become a growing problem in community associations, with owners offensively addressing managers, board members, vendors, and other residents and owners. As a result, boards are more frequently establishing policies to address communications that constitute harassment. That policy can require that:

  1. Communications are conducted in a manner that does not constitute harassment of the Association’s employees, property managers, vendors, directors, and related individuals.
  2. Unit owners and residents do not exhibit conduct against Association representatives that constitute harassment whether at meetings, on site offices, on common property, or otherwise.

Boards should consider adopting or amending a Policy Resolution to address harassment. Such Resolution should address untoward, disruptive, and inappropriate communications between residents, unit owners and board members. Harassment can be defined so as to substantially mirror N.J.S.A. 2C:33-4 as follows:

A person commits a petty disorderly person’s offense if, with the purpose to harass another, he does any of the following:

  1. Makes or causes to be made, a communication or communications anonymously or at extremely inconvenient hours, or in offensively course language, or any other manner likely to cause annoyance or alarm. Such communications may be deemed to have been made either at the place where it originated or at the place where it was received.
  2. Subjects another to striking, kicking shoving or other offensive touching, or threatens to do so.
  3. Engages in any other course of alarming conduct or of repeatedly committed acts with purpose to alarm or seriously annoy such other person.
  4. Acts with a purpose to intimidate an individual or group of individuals because of race, color, religion, gender, handicap, sexual orientation or ethnicity.

Additionally, a unit owner or resident commits harassment by failing to come to order when requested at a Board or member meeting.

Certainly, the specifics of any policy, rules or regulations promulgated by an Association must comply with applicable federal, state, and local laws and regulations.

Additionally, procedures should be established to verify the incident and describe the steps to be taken to address alleged violations. The owner must be provided notice of the alleged violation as well as the consequences arising therefrom. Additionally, the alleged violator must be offered the opportunity to participate in the Association’s Alternative Dispute Resolution Procedure.

Lastly, Associations have frequently determined that harassment violations can, and often do, affect the health and safety of the Association as a whole. As such, Boards have been authorized to impose enhanced fines and sanctions, with such fines oftentimes far exceeding the fines levied for more routine violations. Sanctions have included suspension of membership privileges, restricting forms of communications by the resident to the Association, as well as the enhanced monetary sanctions mentioned above.

Of course, Boards should consider seeking legal advice in drafting an effective policy regarding harassment and establishing the procedures and consequences when addressing harassment allegations.



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Thursday, August 24, 2017

Recent Lawsuit Shows Importance of Knowing Your Miranda Rights

It is a near certainty that you have heard the Miranda Rights being read before. It’s in almost every crime procedural that fills up primetime TV. It starts with “You have the right to remain silent, anything you say can and will be used against you in a court of law.” It’s part of the basic foundation on which all police interaction is based. Understanding the Miranda Rights is an incredibly important part of protecting yourself and your family. It means choosing what and when you say to help your cause. Often it means not saying anything until you have found legal representation. 

A Retreat From the Third Circuit’s Misguided Class Action Ascertainability Doctrine, and a Wise Concurrence by Judge Fuentes

City Select Auto Sales, Inc. v. BMW Bank of North America Inc., ___ F.3d ___ (3d Cir. 2017).  Judge Scirica, who wrote the Hayes and Carrera opinions that form the backbone of the Third Circuit’s ascertainability doctrine in class action cases, authored this opinion for the Third Circuit.  The case arose under the Telephone Consumer […]

The post A Retreat From the Third Circuit’s Misguided Class Action Ascertainability Doctrine, and a Wise Concurrence by Judge Fuentes appeared first on Appellate Law NJ Blog.



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Wednesday, August 23, 2017

Municipal Planning and Zoning Boards Lack Power Over State University Development Proposals

Montclair State University v. County of Passaic, ___ N.J. Super. ___ (App. Div. 2017).  The Municipal Land Use Law, N.J.S.A. 40:55D-1 et seq., places responsibility for development applications within a particular municipality in the hands of a Planning Board and/or a Zoning Board of Adjustment.  There can also be a role for a County Planning […]

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Tuesday, August 22, 2017

You Can’t Disregard the Partnership Agreement When Valuing a Business

In 2014, I authored a post on this blog entitled Stern Revisited – Using the Shareholder Agreement to Determine Value.  I noted then that it seemed that after the Appellate Division’s decision in Brown v. Brown  which changed the landscape by doing away with discounts and essentially ushered in more of a value to the holder construct, that the consideration of an agreement was dead.  Rather, a myopic view of methodologies focused on income seemed to be the norm – disregarding all else.

This was the case even though there was New Jersey Supreme Court case law  (Stern v. Stern and Bowen v. Bowen to be precise ) that suggests the use of a “trustworthy” buy-sell agreement to establish value, noting that in some instances it may appropriately establish a presumptive value of a party’s interest.  Often the issue is what is a “trustworthy” buy-sell agreement?  What makes an agreement trustworthy?  It is updated frequently and routinely used when people enter and exit a business.  In my 2014 post, I blogged about the use of the buy-sell agreement in deciding the value of a medical practice where there had been 32 purchases or sales of interests in the practice in the recent past.  In the case cited in that blog, the Appellate Division noted “We find no error in the judge’s considered decision that the practice’s regularly updated corporate agreements were a better measure of value than plaintiff’s expert’s projection of cash flows through 2020, discounted by a rate chosen on the basis of U.S. Treasury bonds, augmented by selected risk premiums and reduced by an assumed long-term growth rate.”  Simply put, what the doctor would have received if he left the practice was used as the value.  Unlike many valuation calculations, there was no subjectivity to that number.  But this case was an unreported decision which means that it wasn’t precedential and there haven’t been many, if any, reported decision on the issue in some time.

That is, until August of 2017 when the Slutsky case was decided.  In that case, the husband was a partner at a major New Jersey law firm.  Though his income was substantial, he was not a rainmaker, and thus, worked on business generated by other attorneys at his firm.  In valuing the husband’s interest in the firm, the big issue was whether there was goodwill to be added to the amount that the husband would have been due under the firm’s partnership agreement.  The wife’s expert added goodwill; the husband’s expert did not.  The trial judge sided with the wife’s expert finding it “”incredible” the firm had no goodwill value. ”  The Appellate Division disagreed and reversed.

The Court noted that:

As Dugan instructs, the start of the examination of goodwill considers whether excess earnings exist. Dugan, supra, 92 N.J. at 439-40. This was a highly contested issue on which the experts used slightly different resources and offered greatly disparate opinions. Factual findings regarding this pivotal question were not provided.

Moreover, the court returned to Stern and the husband’s argument in that case regarding  “the propriety of considering his earning capacity as being a separately identified and distinct item of property” and pointed out the passage in Stern that held as follows:

[A] person’s earning capacity, even where its development has been aided and enhanced by the other spouse, as is here the case, should not be recognized as a separate, particular item of property within the meaning of N.J.S.A. 2A:34-23. Potential earning capacity is doubtless a factor to be considered by a trial judge in determining what distribution will be “equitable” and it is even more obviously relevant upon the issue of alimony. But it should not be deemed property as such within the meaning of the statute.

Of note, in this case the Appellate Division framed the real issue as follows:

Here, a nuanced valuation methodology is required because defendant is an equity partner in a large firm, who generally is not responsible for originations, and who is bound by the firm policies and a shareholder agreement.

In this case, the Appellate Division found that the formula in the firm’s agreement actually captured good will.  In addition, the court noted:

We believe the trial judge misunderstood Hoberman’s conclusion, as suggesting goodwill did not exist for the firm. Actually, Hoberman’s opinion asserted the TCA of each equity partner accounted for any goodwill. Further, plaintiff, who was not an originator but a worker in a highly specialized legal area, was actually paid what a similarly skilled lawyer would be paid. Thus, defendant’s compensation matched his earning capacity, nothing more. This view considered whether defendant’s “future earning capacity has been enhanced because reputation leads to probable future patronage from existing and potential clients” and concluded it did not. Accordingly, there was no additional component of goodwill. Id. at 433.

In this matter, any analysis of goodwill must evaluate the firm’s shareholder’s agreement to determine whether it is an appropriate measure of the total firm value, including goodwill. That formula computes an exiting partner’s interest, calculated as a portion of the firm’s excess earnings. See Levy, supra, 164 N.J. Super. at 534. The Court must discern the objectiveness and accuracy of the formula and calculations. When “it is established that the books of the firm are well kept and that the value of partners’ interests are in fact periodically and carefully reviewed, then the presumption to which we have referred should be subject to effective attack only upon the submission of clear and convincing proofs.” Stern, supra, 66 N.J. at 347.

The take away here is that Stern lives now for the same reasons that that it was originally decided.  If a regularly updated and followed agreement was disregarded, the titled spouse would be stuck getting only what the agreement allows, which the other spouse could wind up with a lot more, or less, if valuation methodologies with subjective components are used.  On the other hand, say that there are two similarly situated law firm partners with a similar book of business and making similar money, but one worked at a large firm with a regularly updated and followed shareholders agreement and the other at a smaller firm without a formal agreement, it seems like a safe bet that the values of their practices would be extremely different.  One other question to ponder.  Would the result have been different if the husband here was a major rainmaker?  Perhaps that will be addressed in a future case.

_________________________________________________________

Eric SolotoffEric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric is resident in Fox Rothschild’s Morristown, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

Connect with Eric: Twitter_64 Linkedin

 



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Monday, August 21, 2017

Pharmaceutical Patent Antitrust Class Action Complaints Stated Plausible Claims for Relief, so the Third Circuit Reverses the Dismissal of Those Cases

In re Lipitor Antitrust Litig., ___ F.3d ___ (3d Cir. 2017).  It is evident that an appeal is a big one when, as here, the caption and counsel list consume the first seventeen pages of the Third Circuit’s opinion.  In this case, Chief Judge Smith wrote a 106-page opinion (including the caption and counsel list) […]

The post Pharmaceutical Patent Antitrust Class Action Complaints Stated Plausible Claims for Relief, so the Third Circuit Reverses the Dismissal of Those Cases appeared first on Appellate Law NJ Blog.



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When Are Federal and State Court Cases “Parallel Proceedings” for Declaratory Judgment Act Purposes?

Kelly v. Maxum Specialty Ins. Group, ___ F.3d ___ (3d Cir. 2017).  Judge Chagares began one of the early paragraphs of today’s opinion for the Third Circuit in this Declaratory Judgment Act, 28 U.S.C. §2201-2202 (“DJA”), case this way: “Whether a state action parallels a federal action– in which case a district court has significant […]

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New Standard for Child Relocation Applications in New Jersey

Baures v. Lewis Standard for Relocation

For just over 16 years, Baures v. Lewis was the standard in New Jersey for allowing a parent to permanently relocate out-of-state with a child against the other parent’s wishes. N.J.S.A. 9:2-2 provides that a parent seeking to relocate and remove a child from New Jersey without the other parent’s consent must show “cause.”

Pursuant to Baures v. Lewis, a parent designated as the Parent of Primary Residence (PPR) could show cause to relocate the children out of state by: 1) demonstrating a good-faith reason for the move, and 2) that the move would “not be inimical to the child’s interests.” The New Jersey Supreme Court has now abandoned that standard in favor of a best interest of the child standard.

New Jersey Supreme Court Sets New Child Relocation Standard – Best Interests of the Child

In Bisbing v. Bisbing, the New Jersey Supreme Court held that the outcome of contested relocation determinations must be made pursuant to the best interests of the child standard in place of the Baures v. Lewis standard. In all contested relocation disputes, courts should conduct a best interests analysis to determine “cause.” The best interests of the child standard is the new standard whether the custody arrangement designates a Parent of Primary Residence and a Parent of Alternate Residence, or provides for equally shared physical custody.

Bisbing v. Bisbing

In Bisbing v. Bisbing, pursuant to the terms of a Marital Settlement Agreement (MSA), the divorcing parents agreed that the Mother would have primary residential custody of their twin daughters. The MSA also included a relocation provision stating that “[n]either party shall permanently relocate with the children from the State of New Jersey without the prior written consent of the other.”

Several months later, the Mother informed the Father that she intended to marry a Utah resident whom she had been dating prior to the granting of the divorce. However, the Father refused to consent to the permanent relocation of the children to Utah.

As a result, the Mother filed a motion seeking an order permitting her to permanently relocate the children to Utah. The Father contended that the Mother had negotiated the MSA in bad faith, securing his consent to her designation as the Parent of Primary Residence without informing him that she intended to relocate.

Applying the standard established in Baures v. Lewis, the trial court granted the Mother’s application for relocation, finding she presented a good-faith reason and that the move would not be inimical to the children’s interests. Thereafter, the Mother moved with the children to Utah.

The Father appealed the trial court’s decision. The Appellate Division reversed and remanded, finding that there was a genuine issue of material fact as to whether the Mother negotiated the custody provisions of the MSA in good faith. The Mother returned with the children to New Jersey. The trial court ordered the parties to abide by the residency provisions in the MSA.

Supreme Court Finds “Special Justification” to Abandon Baures Standard

The Supreme Court recognized a “special justification” to abandon the standard it had established in Baures v. Lewis for determining the outcome of contested relocation matters. In place of the Baures standard, courts should conduct a best interests analysis to determine “cause” under N.J.S.A. 9:2-2 in all contested relocation disputes in which the parents share legal custody.

The Court remanded to the trial court for a plenary hearing to determine whether the custody arrangement set forth in the parties’ MSA should be modified to permit the relocation of their daughters to Utah.

No Waiver of Interstate Child Relocation

The Court declined to agree with the Father’s assertion that by consenting to the interstate relocation provision of the MSA, the Mother waived her right to a judicial determination of her relocation application under N.J.S.A. 9:2-2. However, the Mother must demonstrate changed circumstances to justify modification of the MSA.

Further, because the requested relocation is permanent, the Mother must demonstrate that there is “cause” for an order authorizing relocation, which shall be determined by a best interests analysis considering the factors in N.J.S.A. 9:2- 4(c).

Notably, because the best interests standard applies to the determination of “cause” notwithstanding the designation as the Parent of Primary Residence, the Trial Court need not decide whether the Mother negotiated the parties’ MSA in bad faith.

If you are considering relocating out of the state of New Jersey, it is extremely important that you contact an experienced matrimonial attorney to determine how to proceed.



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Thursday, August 17, 2017

Plaintiff is Over the Moon, as the Third Circuit Applies New Jersey’s Arbitration Cases to Defeat Defendant’s Demand for Arbitration

Moon v. Breathless, Inc., ___ F.3d ___ (3d Cir. 2017).  At least since 2014, when the Supreme Court of New Jersey decided Atalese v. U.S. Legal Servs. Grp., L.P., 219 N.J. 430 (2014) (discussed here), New Jersey law has been clear that contractual arbitration clauses must explicitly state that a party is waiving a jury […]

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Treating Doctors Unable to Give Expert Testimony

            A doctor who stepped in to correct a colleague’s mistake should not have been allowed to testify during the malpractice suit. This is according to a three-judge panel in the appellate division.

Tuesday, August 15, 2017

The Third Circuit Grants Mandamus, and Announces a New Test for Transfer in Unusual Circumstances

In re Howmedica Osteonics Corp., ___ F.3d ___ (3d Cir. 2017).  Today’s opinion by Judge Krause contains a little bit of a lot of things: in no particular order, waiver, forum selection clauses, section 1404 transfer law, necessary party law, personal jurisdiction, mandamus, appellate jurisdiction to grant mandamus, and the standard of review for mandamus […]

The post The Third Circuit Grants Mandamus, and Announces a New Test for Transfer in Unusual Circumstances appeared first on Appellate Law NJ Blog.



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The Judicial Conference Advisory Committee Seeks Comments on Proposed Changes to Federal Appellate Rules

The Judicial Conference Advisory Committee is seeking comments on proposed changes to the Federal Rules of Appellate Procedure (as well as proposed changes to other sets of federal rules).  The details are here. The Federal Rules of Appellate Procedure that are proposed to be amended are Rules 3, 13, 26,1, 28, and 32.  The amendments […]

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Friday, August 11, 2017

Supreme Court’s Landmark Ruling in Child Relocation

A standard of New Jersey family law was overturned on Tuesday in a unanimous decision.  For sixteen years the determination for child relocation as determined by Baures v. Lewis had stated that a custodial parent could relocate to another state with a child so long as the move was made in good faith and was not ‘inimical to the child’s best interests.”

Thursday, August 10, 2017

SUPREME COURT OF NEW JERSEY DEPARTS FROM STANDARD UTILIZED IN RELOCATION CASES

In what seemed like an eventual, but no less dramatic change in family law jurisprudence, the Supreme Court of New Jersey in Bisbing v. Bisbing overturned the well-established two-part test used in determining whether a primary custodian should be permitted to relocate interstate with an unemancipated child and, in connection therewith, the primary custodian’s presumptive right to relocate. In so doing, it noted a “special justification” in returning to the “best interests” of the child standard applied before Baures:

We affirm and modify the Appellate Division’s judgment. We depart from the two-part test that Baures prescribed for a relocation application brought by a parent of primary residence. We apply the same standard to all interstate relocation disputes under N.J.S.A. 9:2–2 in which the parents share legal custody—cases in which one parent is designated as the parent of primary residence and the other is designated as the parent of alternate residence and cases in which custody is equally shared. In all such disputes, the trial court should decide whether there is “cause” under N.J.S.A. 9:2–2 to authorize a child’s relocation out of state by weighing the factors set forth in N.J.S.A. 9:2–4, and other relevant considerations, and determining whether the relocation is in the child’s best interests.

While a more complete recitation of the factual circumstances and Appellate Division holding can be found in my prior blog post on this matter, this post will focus on the Supreme Court’s primary holding and underlying rationale.  Based on its holding, the Supreme Court modified and affirmed the Appellate Division’s decision and remanded to the trial court for a plenary hearing to determine whether the proposed relocation of the children to Utah was in the children’s best interests.

US

The Supreme Court’s Discussion of Baures v. Lewis and its Progeny

Focusing its attention on N.J.S.A. 9:2-2 (New Jersey’s removal statute), the Court noted that “cause” must be shown before a child’s permanent removal to another state can occur without both parents’ consent, or the child’s consent if said child is of “suitable age” to decide.  While a removal request involving shared custodians was treated as an application for a change in custody – thereby resulting in application of the “best interests” standard – under Baures, a primary residential custodian’s burden to prove “cause” for removal was “substantially” eased so as to only require a showing that: (1) the requested move is being sought in good faith; and (2) the move will not be inimical to the child’s interest.

In analyzing this two-part standard, the Baures Court listed out several factors for consideration.  No longer was the custodial parent required to show there would be no adverse impact upon the visitation rights of the noncustodial parent.  Rather, a relocation was to be blocked only if there was a resulting “adverse effect”, which was defined as a “change in visitation that will not allow the noncustodial parent to maintain his or her relationship with the child.”

Extensive rationale formed the Court’s basis for its Baures holding:

  • A relocation benefiting the custodial parent would similarly benefit the child;
  • No specific parenting time schedule was necessary to foster a child’s belief that he or she is loved and supported by both parents; and
  • There existed a “growing trend in the law easing restrictions on the custodial parent’s right to relocate with the children and recognizing the identify of interest of the custodial parent and child.”

The Baures aftermath, however, often compelled trial courts to analyze the actual facts and circumstances surrounding an existing custody arrangement – not just by reviewing what a Judgment of Divorce or settlement agreement provides as to custody – to determine whether one parent was the primary custodian, or if there existed a shared arrangement.  For instance, while a settlement agreement could designate one parent as the primary custodian perhaps, in practice, the other parent was the primary custodian or, at the very least, an equal custodian.

Unfortunately, since the nature of the custody arrangement essentially became determinative as to whether relocation would occur, existing case law became frequently manipulated for reasons good and bad.  Indeed, the facts and circumstances in the Bisbing matter raised such questions as to whether the subject agreement’s custody and parenting time arrangement was negotiated in good faith or whether, to the contrary, it was designed to facilitate for one party a future relocation request without the other party’s knowledge.

Departure from Baures

Addressing the above-discussed social science upon which the Supreme Court relied in Baures, the Court here noted that such findings had not reached a consensus as to the impact of relocation on children following a divorce and, more notably, “the progression in the law toward recognition of a parent of primary residence’s presumptive right to relocate with children. Anticipated by this Court in Baures, has not materialized . . . As experience has proven, the standard adopted in Baures did not represent a lasting trend in the law.”  Turning to other jurisdictions, the Court noted how the majority of states analyze relocation requests made by a primary custodian under a best interests test.

The Court also noted how its decision eliminates disputes and potential manipulation/bad faith allegations surrounding the parent of primary residence designation:

If a designation as the parent of primary residence will determine the result of a relocation dispute, parties may be motivated to contest that designation even if one parent is clearly in a better position to serve that primary role.  As this case illustrates, the advantage afforded to a parent of primary residence in a relocation conflict may raise divisive accusations of bad faith after custody negotiations conclude.

. . .

Accordingly, we do not consider the Baures standard to be compelled by social science or grounded in legal authority today, as the Court anticipated that it would be when it decided that case.  We recognize a “special justification” in this case to abandon that standard.

Return of the Best Interests Standard

In departing from Baures, the Supreme Court held:

[c]ourts should conduct a best interests analysis to determine ‘cause’ under N.J.S.A. 9:2-2 in all contested relocation disputes in which the parents share legal custody – whether the custody arrangement designates a parent of primary residence and a parent of alternate residence, or provides for equally shared custody.  That standard comports with our custody statute, in which the Legislature unequivocally declared that the rights of parents are to be equally respected in custody determinations and stated that custody arrangements must serve the best interests of the child.

The Court’s decision concluded with a remand to the trial court to determine if the proposed relocation to Utah was in the children’s best interests.  Notably, however, because the custody arrangement was “agreed to and incorporated in the trial court’s judgment, plaintiff is required to demonstrate changed circumstances to justify its modification.”  Ultimately, however, it is no longer incumbent upon the trial court to determine on remand if the party seeking relocation negotiated the custody agreement in bad faith.  The question now becomes whether the relocation is in the children’s best interests under N.J.S.A. 9:2-4(c).

The importance of the Supreme Court’s decision simply cannot be understated, as relocation law has again been transformed in a manner deemed by our High Court as consistent with present social science research, and the approach applied by majority of other jurisdictions.

_____________________________________________________

Robert A. EpsteinRobert Epstein is a partner in Fox Rothschild LLP’s Family Law Practice Group and practices throughout New Jersey.  He can be reached at (973) 994-7526, or repstein@foxrothschild.com.

Connect with Robert: Twitter_64 Linkedin

 



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A Quick Guide to Navigating a Heroin Possession Charge

If you've been charged with a count of heroin possession, the most important thing to know is that you're not alone, every year, thousands of New Jersey residents are charged with possession of heroin. Understanding the charges that you will likely face is the first step to getting through your drug charge.

Tuesday, August 8, 2017

The Supreme Court Abandons Baures v. Lewis in Family Law Child Relocation Cases

Bisbing v. Bisbing, ___ N.J. ___ (2017).  Justice Patterson began her opinion in this case, for a unanimous Court, as follows.  “This appeal arises from a trial court’s post-judgment determination authorizing a mother to relocate with her children out of state, notwithstanding their father’s objection to the children’s move.  It requires that we address the […]

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Monday, August 7, 2017

Judge Lisa Rose is Temporarily Assigned to the Appellate Division

Chief Justice Rabner has announced that Judge Lisa Rose is being temporarily assigned to the Appellate Division, Part A, for the period of September 11-November 19, 2017.  As reported here, the General Assignment Order for 2017-18 made provision for a then-unnamed temporary assignee for Part A. Judge Rose, a graduate of Rutgers University and the […]

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Mandatory E-Filing Coming to the Appellate Division This Fall, So Get Your Training for That

In a Notice to the Bar that is available here, the Appellate Division announced that it “anticipates that e-filing of appeals will be made mandatory in the fall of 2017.”  That would be the culmination of an electronic filing rollout that goes back as far as 2012. In light of that, the Appellate Division is […]

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Friday, August 4, 2017

Two Opinions in Two Days by Justice Solomon

In re Atlantic County, ___ N.J. ___ (2017); In re New Jersey Firemens Association Obligation to Provide Relief Application Under Open Public Records Act, ___ N.J. ___ (2017).  On Wednesday and Thursday of this week, Justice Solomon issued two opinions for the Supreme Court.  Both of them involved cases in which the Appellate Division issued […]

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Tuesday, August 1, 2017

Amazon Isn’t Killing All the Shopping Centers, Just Like Video Didn’t Kill All the Radio Stars

Thirty six years ago today, MTV was launched. The song by the The Buggles “Video Killed the Radio Star” was the first video played. Non-video, radio artists, like Christopher Cross (remember “Sailing?”), suffered, by not being ready for TV. Yet, how many people today actually think about a singer’s video and not their song? Heck, when was the last time you saw a video on MTV?

Just like MTV didn’t really kill all the radio stars, Amazon, demographic changes, and consumer tastes are not killing all the shopping centers and malls. Rather, these developments are changing the way we use and see the shopping center and mall experience.

True, there are a number of so-called “dead” centers. At one time, these were popular (just like Christopher Cross), anchored by Sears, JCPenney, or some other big box store that drew traffic. The structure, zoning, and high traffic areas with good visibility to the community still exist. There is just no draw… no “MTV” … to bring people in. This presents opportunities for developers to resurrect “dead” centers.

In a recent report by commercial real estate firm Transwestern, a number of these “dead” centers are attracting new tenants, with owners/developers repurposing them for other nontraditional uses, such as office, medical, community, fitness, day care, recreation, and restaurants, along with retail stores.

Getting more traffic to the center is the name of the game. Recently, owners/developers have found that restaurants can be effective anchors, especially where a liquor license adds to the likelihood of a restaurant’s commercial success. Legislation, like a new bill recently proposed in New Jersey, could open up more opportunities for restaurants to obtain liquor licenses in the state. While for the most part, the bill was introduced to benefit so-called “Main Street” businesses, it could also be used to benefit restaurants in repurposed shopping centers and malls.

In a similar manner, underutilized or abandoned office parks invite collaboration of municipalities and developers to address vacancies, according to commercial real estate broker Cushman & Wakefield. That process of repurposing and new construction may take years, especially if desired amenities and features involve variances or zoning amendments. The township where an office park is located may need convincing that a change of use is beneficial to the community. If an office park has been vacant for several years while the township waits for businesses to return, the time may be right to propose a different alternative.

While MTV did change the way we listen to music, after 36 years, it’s still the music that matters. Same for the shopping center/mall. Change will occur, but at the end of the day people want to go somewhere for their shopping experience. Redevelopment with a focus on meeting consumer needs and their convenience is key to resurrecting those dead centers.

By the way, Happy Birthday MTV!



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