Two “Affirmed on the Opinion Below” Rulings From the Supreme Court

Yesterday and today, the Supreme Court did what it does not often do: affirm a decision of the Appellate Division substantially for the reasons expressed by the Appellate Division, rather than writing its own fully-expressed opinion. Yesterday’s ruling, in Granata v. Broderick, ___ N.J. ___ (2017), affirmed a decision by Judge Guadagno that was reported […]

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The Smoke-Free Act Does Not Preempt A Municipal Ordinance Limiting Smoking in Retail Tobacco Establishments

Sparroween, LLC v. Township of West Caldwell, ___ N.J. Super. ___ (App. Div. 2017).  Plaintiffs operated the Cigar Emporium in West Caldwell.  In that business, they sell tobacco products, but they also make tobacco products available to be smoked on the premises.  After plaintiffs had obtained development approvals from the municipal Planning Board, the Township’s […]

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The Supreme Court Will Decide an Administrative Law Standard of Review Issue and a Ruling Involving PIP Benefits

The Supreme Court announced that it has granted review in two new cases.  The first is In re William R. Hendrickson, Jr.  The question presented there, as phrased by the Supreme Court Clerk’s Office, is “What is the appropriate standard of appellate review of a final agency decision when the initial decision of the administrative […]

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Construction Liens on Leased Commercial Premises

In general, a contractor or supplier is entitled to file a lien against a commercial property if they have performed work or provided materials pursuant to a written contract with the owner. These lien claims must be filed within 90 days of the last date of providing materials or services for the project.

On the other hand, if a contractor or supplier is providing materials or services for a tenant of a commercial property, the rules are different. The differences as to what the lien may attach to are discussed in detail below.

If the tenant of the property entered into a contract for the improvement of the property and the owner directly authorized the improvement in writing, the lien may attach to the real property. The proper way to ensure that a lien may attach to the real property is to have the owner of the property sign off on and approve any contract for the improvement of the real property.

As a contractor or supplier, it is suggested that you obtain the owner’s authorization which would thereby allow you to assert a lien claim against the property itself in the event of non-payment. This can become a very powerful tool on collecting an unpaid balance, as an action to foreclose upon the lien could be brought. This would place a great deal of pressure on the tenant to pay the outstanding balance.

Conversely, if the owner of the property does not sign off on or agree to the improvement to the real property, a lien claim would only attach to the lease hold interest of the tenant. Under these circumstances, the lien claim would not attach to the real property itself, but instead, solely to the lease hold interest held by the tenant.

The question then becomes what would be the value of the lease hold interest.

Depending upon the use of the property by the tenant, the lease hold interest could be quite valuable, or it may be close to worthless. Obviously, if the tenant is fully invested in the property the lien claim may carry substantial value, as it may force the tenant to satisfy the claim. Then again, if the lease hold interest is solely an office or two within a commercial property the lien claim may not possess significant value.

The above provides a general overview as to a lien claim on a commercial property which is occupied by a tenant. It is suggested, as a contractor or supplier, that you have the owner sign off for improvements. This gives you greater leverage when attempting to collect on a lien claim, and also, could force the sale of the property to satisfy same.

In either event, should you perform work on a property occupied by a tenant, it is suggested that you consult with an attorney to best secure the work you provided.

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2nd and 3rd DUI Offense in New Jersey, What to Know

Everyone makes mistakes; some are at best inconsequential like forgetting to turn the lights out when you leave the room . Some carry with them huge life consequences that can alter your future. Every time you get behind the wheel of a vehicle intoxicated there is the possibility that when you get out, your future will be permanently altered. You could potentially end yours or someone else’s life. Walking away from one DUI should be enough to never make the mistake again. However that's often not the case, this is a glimpse into the fines and penalties that will be incurred if you receive your second or third offense.

An Anniversary in New Jersey’s Law of Contracts

On this date in 1956, the Supreme Court decided Friedman v. Tappan Development Corp., 22 N.J. 523 (1956).  Like Newark Publishers’ Ass’n v. Newark Typographical Union, 26 N.J. 419 (1956), decided just one week earlier, Friedman was an opinion by Justice Heher that stated fundamental principles of contract law that continue to be cited today.  […]

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NJ Appeals Court Orders Marijuana Classification Be Examined

A Gallup poll released in October showed that 64% of Americans favor the legalization of marijuana, the highest percentage ever. Eight states have already legalized the sale and distribution of it. During the recently concluded race for Christie's governorship, legalization was seen as a major ballot issue.