Business & Commercial Law
New Jersey Law Blog
Internal Affairs Doctrine of Corporation Not Applied in Another New Jersey Minority Oppression Case
Posted in Business & Commercial Law
In previous blog posts, I’ve commented on New Jersey’s flexible approach as to which a state’s laws governs the relationships between the shareholders. Almost every state (with the exception of New York and New Jersey) will apply the State’s law where the corporation was formed or incorporated. Continue reading
In-Kind Income: In or Out For Child Support?
Posted in Business & Commercial Law
As a family law practitioner, my clients are often faced with the issue of whether or not In-Kind Income is to be included for purposes of establishing child support. The inclusion of In-Kind Income to a child support calculation can have a significant impact on the total overall support amount that is registered for the support of your children. Continue reading
An Overview of How a Divorce Could Affect Your Taxes Part 3: Property Divisions, Dependency Exemptions and Child Care Credits
Posted in Business & Commercial Law
In 1962, the United States Supreme Court decided United States v. Davis, which created difficulties for divorcing parties and attorneys. Although, there was no sale and no money changing hands, the transfer of appreciated property in exchange for marital rights was considered to be a “sale” with the transferor liable for payment of capital gains taxes. The gain was determined by the fair market value of the asset on the date of the transfer with the transferor deemed to have received the value equal to that portion of the fair market value transferred to the other spouse. Conversely, the transferee was charged with neither gain nor loss because the marital rights relinquished were not “appreciated property,” even though these rights were considered to be equal in value to the value of the property received. Thus, the transferee of appreciated property received it on a “stepped up” basis equal to the fair market value of the property received. Continue reading
New York Law Protects Minority Shareholders From Oppression
Posted in Business & Commercial Law
New York law provides protections for oppressed minority shareholders. These protections are contained in under New York’s minority oppression statute, it’s interpretation by the Courts along with New York’s recognition of the fiduciary duties majority shareholders owe the minority. Continue reading
U.S. District Court Applies New Jersey Franchise Practices Act and Finds Franchisor’s Forum Selection Clause Unenforceable
Posted in Business & Commercial Law
A recent decision by the United States District Court (The Business Store, Inc. v. Mail Boxes Etc., Case No. 11-3662 (Wolfson, U.S.D.J.)- February 16, 2012) servers as a reminder that a franchisor’s forum selection clause may not be enforceable in New Jersey. In this case, the plaintiff franchisee filed suit in New Jersey state court for alleged breaches of the franchise agreement. The franchisor removed the case to federal court and sought to transfer venue to the Southern District of California pursuant to the franchise agreement’s forum selection clause. Continue reading
Lady Gaga’s Personal Assistant Sues for Overtime Compensation and Provides an Opportunity to Remind Those Who Employ Personal or Executive Assistants of Their Obligations Under Wage and Hour Laws
Posted in Business & Commercial Law
A former personal assistant of Lady Gaga recently filed a lawsuit against the entertainer’s touring company claiming that she was improperly denied hundreds of thousands of dollars in overtime pay under both the Federal Fair Labor Standards Act (“FLSA”) and New York state law. Continue reading
Do Community Associations Have the Authority Needed to Prohibit the Leasing of Units
Posted in Business & Commercial Law
A recent Appellate Division case, approved for publication (which means it will have Statewide application and authority) was recently decided regarding the ability of a homeowner association to restrict the leasing of a home. The case, Cape May Harbor Village And Yacht Club Association, Inc. v. Sbraga, et al., while a case of first impression in New Jersey, will probably be limited in scope and applicability throughout the State of New Jersey. Continue reading
Condominium Board Members Must Treat All Unit Owners Equally
Posted in Business & Commercial Law
Under the New Jersey Condominium Act and related case law, the boards that manage condominium or homeowners associations are required to treat their members fairly and equally. Most boards conform to that standard as a matter of course – they are, after all, made up of volunteers who want to maintain their community and help their neighbors. However, board members are regular people and as such, are capable of making decisions based upon personal feelings, bias and other improper basis, which, if challenged, could cause the Association to incur significant expense. Continue reading
The Difference Between Civil Unions and Domestic Partnerships in New Jersey
Posted in Business & Commercial Law
Before the enactment of civil unions in New Jersey, the only option available to same sex couples was a domestic partnership, which provided limited benefits. Following the enactment of civil unions in New Jersey, the Domestic Partnership Act was revised such that these partnerships only became available to persons age 62 or older. Same sex couples who had entered into domestic partnerships prior to enactment civil unions in New Jersey had the option to maintain their domestic partnership status, or convert same to a civil union. Continue reading
Certain Residential Dwellings and Seasonal Rentals Now Exempt from Bulk Sales Notification Requirements
Posted in Business & Commercial Law
New legislation has recently been enacted which exempts sales of certain residential dwellings and seasonal rentals from Bulk Sales notification requirements. According to A-2748, which was signed into law on September 14, 2011, sales of a “simple dwelling house” when the seller is an “individual”, “estate” or “trust” (as those terms are used for purposes of the New Jersey Gross Income Tax Act N.J.S.54A:1-1 et seq.) are exempt from the Bulk Sales notification requirements (N.J.S 54:50-38). A “simple dwelling house” under the new law is a dwelling unit including but not limited to a one-family or two-family building or structure, or a unit in a condominium or a cooperative. Continue reading