Business & Commercial Law
New Jersey Law Blog
Stark & Stark Enforces Age Restriction in a 55 and Older Common Interest Community
Posted in Business & Commercial Law
Stark & Stark recently obtained a favorable settlement for one of its 55 and older communities faced with a homeowner whose granddaughter resides in one of the units. The Association, after becoming aware of the violation in the age-restricted community, sent notices of the violation to the senior homeowner, who was over 55 years old, and offered Alternative Dispute Resolution (ADR) as a means to resolve the dispute without the need for litigation. Continue reading
Minority Oppression: Transfer or Sale of Corporate Assets
Posted in Business & Commercial Law
Sometimes, controlling shareholders use the sale of corporate assets as a means to squeeze-out minority shareholders. This is often performed by the majority transferring those assets to a new entity which is not owned by the minority shareholder. New Jersey corporate law provides some level of protection for the minority shareholder if the transfer is not in the ordinary course of the company’s business. Continue reading
Practical ADR for Practical Associations
Posted in Business & Commercial Law
The scenarios are predictable and common. Faced with a request for alternate dispute resolution (“ADR”), the association’s property manager digs up the ADR policy to find it is full of legal terms and confusing procedures. Often times, the ADR committee members do not know how to start or what is expected, and the property manager can spend hours preparing the ADR committee (the members of which will likely change before the next hearing). A call goes out to the Association’s legal counsel to guide them through the process. Continue reading
Billboards: Real or Personal Property When Taken by The Government
Posted in Business & Commercial Law
On November 1, 2010, the New Jersey Supreme Court refused to review a decision by the Appellate Division of the Superior Court of New Jersey holding that a billboard located along the New Jersey Turnpike was not “real property” under the Eminent Domain Act of 1971. New Jersey Turnpike Authority v. Witt, et. al., Docket No. A-0995-09T3 (App. Div. July 15, 2010). Continue reading
Minority Oppression: Dilution of the minority shareholder’s interest.
Posted in Business & Commercial Law
Often majority shareholder will reduce the minority shareholder’s proportionate voting rights, distributions and voting rights by causing the issuance of additional stock and controlling who receives the newly issued shares. Typically, the oppressor will issue the new stock at less than its fair value. Continue reading
A SAFE HARBOR FOR EMPLOYMENT CLAIMS: Employment Policies Offer Protection
Posted in Business & Commercial Law
When discrimination occurs in the workplace, the aggrieved employee should bring the inappropriate behavior to the attention of the employer, who, ideally, would then investigate the allegation and take prompt, appropriate remedial action. What happens, though, when, after an employer conducts an investigation and then reprimands or terminates the offending employee, the aggrieved employee continues to pursue legal action against his or her employer? Can the employer still be held liable even though the employer took prompt, remedial action? Continue reading
Minority Oppression: Stealing
Posted in Business & Commercial Law
Stealing from the minority shareholder or the corporation itself is a form of actionable oppression. Sometimes shareholders simply steal. More often than not, the bad actor will employ a number of techniques in order to covertly steal from the corporation. One widespread technique used by dishonest shareholders is the false inflation of expense accounts. Another technique is to place a relative (usually the majority shareholder’s) spouse or children on the company’s payroll at regular salaries even though those people never actually perform services for the company. Continue reading
The Right to Resign under the New Jersey Limited Liability Company Act
Posted in Business & Commercial Law
As more and more business owners are forming limited liability companies (“LLC’s”) to operate their businesses, familiarity with the statute that governs limited liability companies (which in New Jersey is the New Jersey Limited Liability Company Act (the “LLC Act”)) is important. Most provisions of the LLC Act can be preempted by the LLC’s Operating Agreement, which is the agreement among the members of the LLC that governs its conduct and affairs. If the LLC’s Operating Agreement does not address a particular issue, the LLC Act governs. Continue reading
Bulk Sale Notification in Real Estate Sales
Posted in Business & Commercial Law
Selling a home which you recently rented out because of the difficult real estate market? Well, you may discover that at closing, the state of New Jersey may want to escrow part of your closing proceeds to cover any existing tax debt or estimated taxes on any gain from the sale. Continue reading
Collecting Interest On Unpaid Common Interest Community Condo Fees
Posted in Business & Commercial Law
Many common interest community associations do not realize or do not take advantage of their ability to collect interest on unpaid condo fees, including HOA fees, transfer fees, monthly maintenance fees and special assessment fees. The New Jersey Condominium Act (N.J.S.A. 46:8B-21)(the “Condo Act”) permits associations to charge interest on delinquent balances and defers to an association’s governing documents. Continue reading
