New Jersey Lawyers Blog

Published on: June 23, 2020

Appellate Division Explains Subcontractors’ Remedies for Non-Payment Under New Jersey Construction Law

Contractors’ Problems With Getting Paid

Our construction attorneys represent New Jersey contractors and subcontractors in construction litigation, arbitration and mediation. One of the things we see over and over again, is that one of construction companies’ biggest worries is that they will perform all the work they pulaski-skyway-300x201 agreed to and then not get paid, despite the fact that they met all the project’s specifications and did a great job. It is a well-founded worry. Companies or people who don’t want to pay devise many different schemes, sometimes claiming defects with the work, delay damages, failure to do proper paperwork, the excuses are as varied as is human imagination. To be clear, sometimes these claims are legitimate, but sometimes they are not, and good contractors need to get paid to do the work and to stay in business.

Fortunately, however, New Jersey construction law provides remedies for these schemes. Recently, the Appellate Division of the Superior Court of New Jersey issued a decision on these construction law remedies in the case of Petric & Associates, Inc. v. CCA Civil, Inc. Although the decision was unpublished, it is important because it explores many of these remedies and lays out a roadmap for subcontractors’ remedies against unscrupulous contractors which don’t want to pay them, particularly some of the trickier issues under New Jersey’s Prompt Payment Act.

Published on: June 20, 2020

New Jersey Supreme Court Issues Important Decision on Ability of Union to Bargain Away Benefits of Public Employees

by Maurice W. McLaughlin

The New Jersey Supreme Court recently issued an important employment law decision in the case of Barila v. Board of Education of Cliffside Park regarding the ability of unions to bargain away employee benefits enjoyed under prior contracts. teacher-300x224

Benefits, such as time off, are terms and conditions of employment which may be bargained for in collective negotiations. (The term “collective negotiations” is used in the public sector instead of “collective bargaining” because, unlike in the private sector, government employees do not have the right to strike under New Jersey employment law.) The resulting contract (or “collective negotiation agreement”) sets the terms and conditions of employment, provided the parties have bargained in good faith and the employees receive the minimum levels required by statute.

In this case, under prior contracts between the Cliffside Park Board of Education and the teachers union, including the most recent one in effect from 2012 through 2015, longer term employees could carry over and be paid for their unused sick days up to $25,000. Not all employees could do so, however, because the New Jersey Legislature had passed a law limiting payment for unused sick time to $15,000 for employees who commenced work on May 21, 2010 or thereafter. The statutory limit did not apply to employees who started work before May 21, 2010.

Published on: June 11, 2020

Ongoing Changes to the Paycheck Protection Program Help New Jersey Small Businesses

by Pauline M.K. Young

As a result of the Coronavirus (“COVID-19”) pandemic, the federal government has passed several pieces of legislation in an attempt to provide relief to struggling businesses. One of these Acts is the Coronavirus Aid, Relief, and Economic Security Act (also known as the “CARES Act”). However, since this legislation was signed empty-office into law, the CARES Act has been subject to various interpretations, pitfalls, and continuously-evolving government guidance.

The CARES Act created and allocated approximately $350 billion to the Paycheck Protection Program (“PPP). However, those funds were almost immediately depleted by millions of businesses seeking assistance and the government thereafter allocated an additional $175 billion to the PPP.

The PPP provides loans to struggling businesses in the amount of two and a half times the small business’s average monthly payroll costs. Thus, if the average monthly payroll is $50,000, the business might be eligible for up to $125,000 in PPP loans. While the PPP is considered a loan program, the funds may be largely (or entirely) forgiven as long as the business uses the funds for approved expenses which are appropriately documented. However, like most aspects of the CARES Act and the PPP, there has been a great deal of uncertainty surrounding the specific requirements for loan forgiveness. The SBA (the United States Small Business Administration) alone has posted supplemental rules and guidance on the matter more than ten times in two months. Thus, as a result, the Paycheck Protection Program Flexibility Act was passed on June 5, 2020 amending the CARES Act. This new law has important ramifications for New Jersey small businesses.

Published on: June 8, 2020

The Small Business Reorganization Act and Subchapter 5 Bankruptcies

by Robert Chewning, Esq.

Hi, I’m Rob Chewning. I work with the firm of McLaughlin & Nardi, LLC. At the firm we practice several different types of law, including bankruptcy law. I am here today to talk to you about The Small Business Reorganization Act and Subchapter 5 bankruptcies.

As a result of COVID-19, millions of small businesses have been forced to shut down and cease business operations indefinitely with no end in sight. Some of these small businesses have tried to hold on in the hope of getting federal stimulus money that can carry them through this tough time. However, there are several million other businesses which will not be eligible or will not be able to get their hands on this federal stimulus money which is causing them to consider the options that they have.

Published on: June 6, 2020

New Jersey Civil Service Layoffs Rights

by Maurice W. McLaughlin

In the tough economic times brought on by COVID-19, many governors and veterans-300x200 mayors, including New Jersey’s Governor Murphy, have said that widespread layoffs may be necessary if federal assistance is not forthcoming. Our attorneys represent New Jersey Civil Service employees, and we see the struggles they are facing. Given this, we thought the time was right to review the layoff rights available under New Jersey Civil Service law.

Layoffs

A layoff is the termination of a permanent employee’s employment because of economic reasons. Demotions or reduction of hours for economic reasons are also treated as layoffs, triggering the rights and procedures applicable to layoffs.

Published on: June 2, 2020

Ensuring Maximum Forgiveness on Paycheck Protection Program (PPP) Funds Under the CARES Act

by Pauline M.K. Young

As a result of the Novel Coronavirus (“COVID-19”), the federal government has passed significant legislation in an attempt to provide relief to businesses small-business-300x215 struggling with economic hardships as a result of widespread closures and stay-at-home orders. One major part of these governmental actions includes the passage of the Coronavirus Aid, Relief, and Economic Security Act (also known as the “CARES Act”) on April 2, 2020.

The CARES Act provides for approximately $2 trillion in aid through expanded unemployment assistance, individual relief checks, tax credits, loans, and grants to businesses which were closed or significantly effected by COVID-19, and funding to hospitals and health care facilities. Of this, approximately $350 billion was allocated to the CARES Act’s Paycheck Protection Program (“PPP). When that money was almost immediately sought by the millions of businesses seeking assistance, an additional $175 billion was additionally allocated.

The PPP limited its funding to each company to two and a half times the company’s average monthly payroll costs. While the PPP is considered a loan program, the funds may largely (or entirely) be forgiven as long as the company uses the funds for approved expenses. The details of exactly which expenses would be considered approved and how these funds could be used has been the subject of much uncertainty over the past several weeks. Indeed, the SBA (Small Business Administration) has posted additional rules and guidance on the matter more than 10 times in two months.

Published on: May 14, 2020

Bankruptcy Considerations During the Coronavirus (COV-19) Part 4: The Small Business Reorganization Act and Subchapter 5 Bankruptcy

by Robert Chewning, Esq.

As a result of the Coronavirus (COV-19), millions of small businesses have been forced to close their business operations entirely with seemingly no end in sight. small-business-300x200 Naturally, this has led to a spike in bankruptcy filings. However, many small businesses have held out hope for federal stimulus aid before deciding on whether bankruptcy is the right option for them.

The enactment of a new bankruptcy law, the Small Business Reorganization Act, may provide small businesses suffering from COV-19 related financial issues with relief. The purpose of the act was to make the benefits that larger business entities may take advantage of when filing for a Chapter 11 reorganization bankruptcy easier to access for smaller business entities seeking relief from debt without going out of business. The Act simplifies the process by allowing small businesses to file a Subchapter 5 bankruptcy reorganization.

Published on: April 21, 2020

The Automatic Stay in New Jersey Bankruptcy: Financial Relief During the COV-19 Outbreak

by Robert Chewning, Esq.

national-gallery-of-art-1380105-m-300x248 Since the COV-19 outbreak began, more than 22 million Americans have filed for unemployment. The increase in unemployment filings have been the result of businesses of all sizes being forced to shut down entirely or significantly limit their operations. As a result, many people, both employers and employees, are seeing less income or no income at all while still being expected to pay their monthly payments such as rent, mortgage, car loan, credit card bills, and insurance. These financial obligations are especially devastating for people and businesses that were already having trouble making those monthly payments prior to the COV-19 outbreak.

If a person and/or business is experiencing financial trouble, has significant debt, and/or is subject to collection actions such as a foreclosure or a collections lawsuit, bankruptcy may be a potential remedy. One of the major benefits of filing for bankruptcy is the immediate automatic stay of collection actions and lawsuits.

The type of bankruptcy that may be appropriate for an individual and/or business depends on several factors. For more information on the different types of bankruptcies, check out our posts on Chapter 7, Chapter 11, and Chapter 13 bankruptcies.

Published on: April 20, 2020

Estate Planning During the COVID-19 Health Crisis: Holographic Wills

by Jennifer C. Meusel

supreme-administrative-court-3565618_960_720-300x200 A holographic will is a will that is handwritten, signed and dated by the testator (the person whose will it is). Under New Jersey estate planning Law, holographic wills can be probated and will serve to ensure that the Testator’s assets are bequeathed according to the Testator’s wishes. In fact, a holographic will is valid even in the absence of witnesses. While a formal, written will with witnesses prepared by an experienced estate planning attorney is always preferable, a holographic will can be used in an emergency.

During the current health crisis, particularly for those who have tested positive for COVID-19 or those who are at particular risk, it may be better to have a holographic will than to have no will at all. However, it is important to know the requirements as well as the risks and downsides to using such a handwritten will. If at all possible, it is certainly better for everyone involved, from the testator to the executor and beneficiaries, for there to be a properly executed traditional will.

The crucial requirement under New Jersey wills and estate law, for a handwritten will to be admitted to probate in New Jersey is that the will was written by hand, signed and dated by the decedent and that the signature and key provisions are clearly written by the same hand and that the handwriting is identifiable as that of the decedent. To prove that in court usually requires testimony by a handwriting expert and/or witnesses who are familiar with the decedent’s handwriting. The holographic will must be presented to the Superior Court by an order to show cause in order to be probated, even if all interested parties agree that the will is valid and represents the decedent’s wishes and intentions about their estate.

Published on: April 13, 2020

Bankruptcy Considerations During the Coronavirus (COVID-19) Part 1: Chapter 11 Bankruptcy

by Robert Chewning, Esq.

The Coronavirus (COV-19) has had a negative impact on everyone physically, mentally, and financially. Businesses are no different. Small and medium sized businesses are especially vulnerable in these troubled times. They are faced with difficult decisions such as whether to temporarily lay off their employees or which bills to pay when little or no revenue is being received.

At McLaughlin & Nardi, LLC, we focus a portion of our practice on advising small and medium sized businesses when faced with these difficult financial decisions. When a business becomes overwhelmed and unable to meet its financial obligations, filing a Chapter 11 bankruptcy may be a great means to get the business back on track.