Wednesday, June 27, 2018

Supreme Court Rules That Internet Retailers Can Be Required to Collect Sales Taxes in States Where They Have No Physical Presence

Yesterday, the United States Supreme Court issued its opinion in South Dakota v. Wayfair, Inc., ruling that states can require retailers to collect sales taxes on their online transactions regardless of whether the retailer has a physical presence in that state. The Court’s ruling overturns decades-old precedent that has allowed internet retailers to be largely exempt from the collection of out-of-state sales taxes.

As a result of the ruling, physical presence is no longer a prerequisite for states to require retailers to collect sales taxes. A retailer may now be required to collect out-of-state sales taxes based solely on the amount of its economic activity within a particular state. Although the Court’s ruling addressed the enforceability of the South Dakota law, it did not expressly address the enforceability of any other state’s sales tax legislation. However, a number of states have already enacted laws or regulations similar to that of South Dakota and it is expected that all other states that administer sales tax will follow suit. Whether Congress will intervene to establish uniform national sales tax requirements remains to be seen.

If you are transacting business online, we recommend that you consult your tax adviser to discuss your sales tax collection obligations in light of the Court’s decision.



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New York Appellate Court Issues Remand of Trial Court Decision in Notable Same-Sex Custody Matter

Remanding a 2017 trial court decision in a renowned same-sex custody matter, the New York Supreme Court, Appellate Division, held yesterday in the Matter of K.G. v. C.H., that while a non-biological, non-adoptive party to an adopted child did not have standing as a “parent” under New York Domestic Relations Law Sec. 70 to pursue custody and visitation based solely on a preadoption agreement reached during the parties’ relationship to adopt and raise a child together, the trial record was incomplete as to whether such standing could be achieved based on an equitable estoppel theory.

A brief history of the extensive fact-pattern is worth noting here, since the Appellate Division’s affirmance of the trial court’s conclusion that K.G. lacked standing as a parent based on the preadoption agreement was essentially limited to the facts of this case.

The parties were in a romantic relationship that concluded in December, 2009.  In 2007, they agreed to internationally adopt and raise a child together.  The parties’ planned for C.H. to complete the adoption, the child would arrive in the United States, and K.G. would second adopt the child to become a legal parent.

  • When the parties’ relationship ended, no child for adoption had yet been identified by the adoption agency.  C.H. argued that when the parties’ relationship ended, so too did the preadoption agreement.  K.G. disagreed and argued that the agreement, once made, conferred standing upon her as a parent to file a petition for custody and visitation.
  • Extensive testimony was taken at trial regarding the nature of the agreement, the parties’ relationship, and the parties’ respective intentions regarding whether such agreement survived the relationship’s conclusion in 2009.
  • In March, 2011, the adoption agency identified and offered a child to C.H. for adoption.  C.H. adopted the child and K.G., despite the relationship’s demise, developed a loving and affectionate relationship with the child.

Based on the above general facts and underlying details developed at trial, the trial court held that the “parties’ mutual intention to raise an adopted child together did not survive the end of their romantic relationship.”  As a result, the trial court, as affirmed by the Appellate Division, rejected K.G.’s argument that the mere creation of the preadoption agreement conveyed standing upon K.G. to seek custody and visitation with the child.  In so affirming, the Appellate Division noted that the trial court’s decision did not mean that – in every case – the mere end of a romantic relationship does not, in and of itself, terminate the plan to adopt and raise a child together.  Rather, said plan terminated under the specific facts and circumstances at issue.

The Appellate Division also held that the trial court’s ruling on this component of its decision was consistent with the 2016 Court of Appeals seminal decision in Matter of Brooke, which expansively defined who is a “parent” under New York’s Domestic Relations Law to include non-biological, non-adoptive parents and, as a result, who has standing to seek custody and visitation of a child.  The Appellate Court provided:

Contrary to K.G.’s arguments, this legal analysis does not eviscerate Brooke.  If the parties have a plan in place when a particular child is identified, then they become parents under Domestic Relations Law Sec. 70 at that time, with standing thereafter to seek custody/visitation in the event of a change in the household.

As noted above, however, the Appellate Court remanded so that the trial court could more fully develop the record and consider K.G.’s position that she has standing as a “parent” under an equitable estoppel theory designed to ensure fulfillment of the child’s best interests  stemming from a recognized parent-child relationship.  Specifically, “under Domestic Relations Law Sec. 70, equitable estoppel concerns whether a child has a bonded and de facto parental relationship with a non-biological, non-adoptive adult” with the emphasis placed on the child’s point of view.  the key is whether the relationship between the subject adult and child “rises to the level of parenthood.”

As a result of the incomplete record, the Appellate Court could not rule on what factors a court should consider to establish “parent” status under the estoppel concept.  In so holding, the Court found that C.H. had a right to be heard in opposition to the estoppel theory, and the child’s voice was not heard (K.G.’s requests during the trial court matter for the appointment of an attorney for the child, a forensic evaluation and/or a Lincoln hearing where the child undergoes questioning by the judge in private).

Developments in this newsworthy case will continue to unfold as the trial court conducts further proceedings in a manner consistent with the Appellate Court’s ruling.

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

Connect with Robert: Twitter_64 Linkedin



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Tuesday, June 26, 2018

No “Dead End” for New Jersey Civil Rights Act Plaintiff, So Her NJCRA Claim Fails

Harz v. Borough of Spring Lake, ___ N.J. ___ (2018).  The New Jersey Civil Rights Act, N.J.S.A. 10:6-1 to -2 (“NJCRA”) is, in general, the New Jersey analog to the federal Civil Rights Act, 42 U.S.C. §1983.  In Tumpson v. Farina, 218 N.J. 450 (2014), a referendum case that was discussed here, the Supreme Court […]

The post No “Dead End” for New Jersey Civil Rights Act Plaintiff, So Her NJCRA Claim Fails appeared first on Appellate Law NJ Blog.



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Monday, June 25, 2018

The Supreme Court Will Take Up a DNA Case

The Supreme Court has added one more case to its docket.  That case is State v. Camey, in which the Court granted leave to appeal.  The question presented, as phrased by the Supreme Court Clerk’s Office, is “Was DNA evidence from defendant’s buccal swab admissible pursuant to the inevitable discovery doctrine?”  The Law Division denied […]

The post The Supreme Court Will Take Up a DNA Case appeared first on Appellate Law NJ Blog.



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NEW JERSEY PASSES LAW OUTLAWING CHILD MARRIAGES

After much debate and, ultimately, a change in the governor’s mansion, New Jersey last week became only the second state (Delaware was the first) to ban – without exception – marriages involving individuals under 18 years of age.  Four other states ban the practice, but allow for a path to such marriage under certain exceptions, while similar legislation is under consideration in Ohio and Pennsylvania.  19 states still do not have a minimum marriage age, and 7 states allow for marriages involving children of 14 or 15 years of age.

The law, which, from a general perspective, is designed to protect minors (especially women) from being forced into arranged marriages, changes New Jersey’s prior law that allowed 16 and 17 year olds to procure marriage licenses with parental consent (16 year olds also required judicial approval).

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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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Friday, June 22, 2018

Rice Letters, and Making Meeting Minutes of Public Bodies “Promptly Available,” Under the Open Public Meetings Act

Kean Federation of Teachers v. Morell, ___ N.J. ___ (2018).  Yesterday’s opinion by Justice LaVecchia reversed in part and affirmed as modified a decision of the Appellate Division that was reported at 448 N.J. Super. 520 (App. Div. 2017), and was discussed here.  Without reiterating all the underlying facts of this Open Public Meetings Act […]

The post Rice Letters, and Making Meeting Minutes of Public Bodies “Promptly Available,” Under the Open Public Meetings Act appeared first on Appellate Law NJ Blog.



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Mark Neary, Clerk of the Supreme Court, Will Retire

Mark Neary, who has served as Clerk of the Supreme Court for over nine years, will retire in November of this year.  A search is on for his replacement. A graduate of Princeton University and Rutgers-Newark School of Law (Class of 1985), Mark worked in private practice until he joined the staff of the Casino […]

The post Mark Neary, Clerk of the Supreme Court, Will Retire appeared first on Appellate Law NJ Blog.



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Thursday, June 21, 2018

Appellate Division Retirements (All Non-Mandatory) Are in the Offing

At last night’s NJSBA Appellate Practice Committee meeting, it was announced that three judges of the Appellate Division will be retiring shortly.  They are Judges Carroll, Leone, and Manahan.  Each of those judges are some years short of age 70, so that all of these retirements are non-mandatory.  All three of these judges have served […]

The post Appellate Division Retirements (All Non-Mandatory) Are in the Offing appeared first on Appellate Law NJ Blog.



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Tuesday, June 19, 2018

A Quick Reminder About DUI/DWI Checkpoints

Summer heat is descending on the garden state in full force. Alongside the temperature is the rising amount of DUI/DWI Checkpoints that are going to be slowing down your commute. Officially called, sobriety checkpoints, the number of these stops have been steadily increasing since 1990.

Monday, June 18, 2018

No Attorneys’ Fees for Retired Public Employee Who Successfully Sued to Enforce Agency Decision Regarding His Pension

Brunt v. Board of Trustees, Police & Firemen’s Retirement System, ___ N.J. Super. ___ (App. Div. 2018).  In general, except as specified by statute, court rule, or a contract between parties, New Jersey follows the “American Rule,” under which litigants must bear their own fees and costs.  This decision today by Judge Rose, in a […]

The post No Attorneys’ Fees for Retired Public Employee Who Successfully Sued to Enforce Agency Decision Regarding His Pension appeared first on Appellate Law NJ Blog.



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Another Criminal Case, and Two Cases Involving Civil Claims by Police Officers, Will Get Supreme Court Review

The Supreme Court has announced that it has granted review in three more cases.  Two of them resulted from unpublished Appellate Division rulings in cases where police officers are the plaintiffs, and the third is from a published opinion in a criminal case. The criminal appeal is State v. Miller.  The decision below, in which […]

The post Another Criminal Case, and Two Cases Involving Civil Claims by Police Officers, Will Get Supreme Court Review appeared first on Appellate Law NJ Blog.



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Thursday, June 14, 2018

The TCCWNA and Towing Companies

Pisack v. B&C Towing, Inc., ___ N.J. Super. ___ (App. Div. 2018).  This decision by Judge Gilson today in three consolidated appeals implicates the Predatory Towing Prevention Act, N.J.S.A. 56:13-7 et seq. (“Towing Act”), the Consumer Fraud Act, N.J.S.A. 56:8-1 et seq. (“CFA”), the Truth in Consumer Contract, Warranty, and Notice Act, N.J.S.A. 56:12-14 et […]

The post The TCCWNA and Towing Companies appeared first on Appellate Law NJ Blog.



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Wednesday, June 13, 2018

Driving After A DUI Suspension

With all of the modern conveniences such as ride-sharing apps and public transportation, a DUI/DWI should be avoidable. However, life happens and you find yourself on the wrong end of a DUI stop. We see about 50 DUI's everyday here in central New Jersey, many of them not first time offenders. Many of those who get our offer of help don't have the foresight to realize how crucial it is that they do everything they can to fight the charges. Their future is in jeopardy. Without an attorney who knows the ins-and-outs of the New Jersey legal system the driver will lose their license, suffer significant fines and potentially serve jail time.

Monday, June 11, 2018

U.S. Supreme Court Restricts American Pipe Class Action Tolling Doctrine

China Agritech, Inc. v. Resh, ___ U.S. ___ (2018).  In American Pipe & Const. Co. v. Utah, 414 U.S. 538 (1974), the Supreme Court of the United States announced a rule that the timely filing of a class action tolls the statute of limitations for all of those who are encompassed within the class definition […]

The post U.S. Supreme Court Restricts American Pipe Class Action Tolling Doctrine appeared first on Appellate Law NJ Blog.



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Friday, June 8, 2018

Entire Controversy Doctrine Inapplicable to Teacher Tenure Charge

Yarborough v. State Operated School District of the City of Newark, ___ N.J. Super. ___ (App. Div. 2018).  Plaintiff, a third-grade teacher in the Newark public schools, faced a conduct-unbecoming tenure charge for inflicting corporal punishment on two students, in violation of N.J.S.A. 18A:6-1.  An arbitrator found against plaintiff and imposed a 120-day suspension without […]

The post Entire Controversy Doctrine Inapplicable to Teacher Tenure Charge appeared first on Appellate Law NJ Blog.



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Ten Days Until Summer in the Appellate Division

According to the solar calendar, summer formally begins on June 21.  But the Appellate Division begins its summer schedule on June 18, as reflected in the summer Part schedule published here.  The summer is divided into six two-week “Sessions.”  Sessions 1 and 2, which begin on June 18 and July 1, respectively, will feature three […]

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Thursday, June 7, 2018

Underage and Over the Limit in NJ

The legal limit for alcohol consumption is 21, but that doesn't mean kids won't find ways to drink. It's in a teenager's nature to rebel, against laws, their teachers, and their parents to push to the outer boundaries of breaking the rules. Not only will they find ways to drink but often they'll foolishly get behind the wheel of a car after they've been drinking.

Wednesday, June 6, 2018

Does the Change in the Tax Law Kill the Mythical Alimony “Formula”

As I wrote in December, the Tax Cuts and Jobs Act enacted at the end of last year, changed the taxability of alimony starting in 2019.   Specifically, while alimony is currently income to the recipient and deductible from the income of the payor, for agreements and judgments entered after December 31, 2018, that will no longer be the case.  Put another way, the ability to shift income so that it is taxed at the rate of the tax payer at the lower tax bracket will no longer be available.  As I noted, this will likely mean less after tax cash flow available to both parties under the new law (not to mention, the possibly unintended reduction on child support that may be caused since child support is calculated based upon the combined after tax incomes of the parties, i.e. the lower the net income, the lower the child support.)

Now we all know that there is no official “formula” or guidelines to calculate alimony in New Jersey.  That said, we have blogged many times before on the so called “rule of thumb” that many use to get a ballpark figure for alimony, and many more use to actually settle the issue, despite that fact that it often ignores the statutory factors and economic reality.  The way that this formula works is essentially this:  you subtract the actual or imputed income (if unemployed or underemployed) of the recipient from the payer’s income and then take a third of the difference and call it alimony.  I have heard it called the one-third rule – a third for the husband, a third for the wife and a third for the government – however the math really doesn’t work and typically the payor has more after tax income before child support is calculated.  Even after child support is calculated, it was unusual to see the alimony and the kids with more than half of the net after tax income, which meant that the payor lived on half of the net income for himself and the recipient and children lived on the other half, or less.  The fairness of this result can be debated on another day.

That said, because the “formula” contemplated taxes in it’s “theory”, seemingly, that formula will not be able to be used once the tax change really goes into effect.  My guess is that people will look for some new formula that has the same result but there are several problems with that.  With less dollars to go around, a formulaic approach that ignores actual marital lifestyle is likely to be very unfair to the recipient.  Moreover, given the complexities (and quite frankly, the unknowns) of the new tax code and the fact that different business types will be taxed in different ways, to the extent that a one-size fits all formula ever worked, it cannot work now.  I was at a recent seminar where a slide was shown of a doctor and a plumber with the same gross income, but a very different net income, given the difference in how their businesses are treated under the new code (not even including the perks.)  And speaking of perks, things that might have been written off as business expenses but added back to income for support purposes may in many cases, no longer be deductible business expenses which could similarly reduce net cash flow available for support.

In reality, more consideration is going to be have to given to the true after tax cash flows of both parties so that fair alimony and child support results are reached.  We have software that creates those calculations but I expect in the future, we will have to input many more variables to see the true after tax cash flow.  I would also expect that there will be more use of forensic and tax accountants to help with these calculations so that the most fair result is arrived at.

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Eric S. Solotoff, Partner, Fox Rothschild LLPEric 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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Friday, June 1, 2018

Governor Murphy Nominates Justice Patterson for Tenure

Governor Murphy announced yesterday that he is nominating Justice Patterson for tenure on the Supreme Court.  Justice Patterson has served with distinction on the Court for the past seven years.  She has written important and well-crafted opinions, and she has made herself available for frequent appearances on continuing legal education panels and other desirably activities […]

The post Governor Murphy Nominates Justice Patterson for Tenure appeared first on Appellate Law NJ Blog.



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