New Jersey Lawyers Blog

Published on: May 21, 2013

Elder Care Planning

There are many things mature persons need to plan for. An often overlooked area which requires careful planning is potential long-term care. More than half of people sixty five and over will require some form of long-term care. The Medicare office estimates that by the year 2020 approximately twelve million people will need long-term care. The cost of health care continues to increase and government support programs are being cut. The median cost of a one year stay in a nursing home in New Jersey is approximately one hundred thousand dollars per year.

The five possible sources for payment for long term care are private payment, long term care insurance, Medicaid, Medicare and the Veterans Administration. If you are a veteran entitled to those VA benefits, if you are eligible for long term care insurance and able to afford it , or if you are able and willing to pay privately for long-term care, then perhaps you do not need to plan. However, most people do not fit into any of those three categories. The two remaining options are Medicare and Medicaid.

Medicare has specific rules and will only provide coverage up to one hundred days. The patient must be eligible for Medicare, have spent three days in a hospital and enter long term care within thirty days of the hospital stay. Medicare will cover the first twenty days of the stay, then for the next eighty days Medicare may require the patient to pay up to $144.50 per day and Medicare will cover the balance. After the first one hundred days, Medicare will stop providing coverage. Moreover, the care must qualify as “medically necessary”. Medicare will not pay for what is classified as “custodial care,” that is it will not pay the cost of general assistance with daily activities, i.e. eating, dressing, bathing, etc. The patient must require skilled nursing care. Thus, this is a very limited payment option.
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Published on: May 16, 2013

The Value of a Buy-Sell Agreement

by Jennifer C. Meusel

Every owner of a closely held small business should have an up to date buy-sell agreement.

A buy-sell agreement is a written agreement between business owners. The purpose of the agreement is to ensure that the current owners are protected from ending up owning a business with an unwanted partner (or shareholder). It restricts the owners’ rights to sell or transfer their interest in the business to a third party. The agreement dictates what will happen in the event of the death of an owner, the disability of an owner, the retirement of an owner, the withdrawal of an owner, the bankruptcy of an owner, the divorce of an owner, or one owner’s desire to sell her share of the business.

A buy-sell agreement is the most effective mechanism to ensure for: the smooth transfer of ownership of the business in the event of death, divorce, bankruptcy or retirement of one of its owners; or an agreed upon method for valuation of the business; payment terms and method of funding the payment for the business interest of one of the owners for the buyout of a departing owner; eliminating or minimizing disputes between owners who are retaining ownership and those leaving the business, or between owners and heirs of a deceased owner or other possible unwanted business partners; ensuring that the remaining owners retain control over who their future partners may be; and ensuring that upon the death or disability of an owner, their family is financially secure.

It is crucial that each year after a buy-sell agreement has been finalized and signed that the owners review certain key provisions of the agreement to ensure they still reflect their wishes and changed circumstances:

The valuation formula – the owners should ensure that it continues to reflect the value of the business and their own intent;
The effect of any changes in tax laws upon the terms of the agreement;
The funding mechanisms of the agreement – regardless of the funding scheme contemplated, be it through insurance maintained by the business on the lives of the owners, or through payments over time from the earnings of the business, it is crucial to review and ensure that the funding will be available to effectuate the terms of the agreement;
The structure of the agreement – a redemption agreement, a cross purchase or a hybrid; and
The triggering event – while buy-sell agreements typically include various potential scenarios including death, divorce, disability, voluntary termination, involuntary termination or bankruptcy of an owner, it is important to consider the specific circumstances of the owners of the closely held business and ensure that each triggering event is addressed in a way that is satisfactory to all owner’s actual needs.

Published on: April 19, 2013

Accident Check List – Steps You Should Take Following a New Jersey Accident

by Boris Peyner

Everyone should do their best to avoid accidents that lead to injuries such as car, bus, motorcycle, or trucking accidents, a slip and fall accident, or a work related accident – but some accidents cannot be avoided. Once you get into an accident it can be hard to think clearly. You may be injured, stressed, confused, or overwhelmed. It is therefore important to keep a level head and follow the guide below to best ensure that your rights are protected.

Step 1: Report the accident to the appropriate authorities. Typically accidents are reported to the local police department. However, if you are on a state highway in New Jersey, the accident should be reported to the New Jersey State Police. Boating accidents must be reported to the New Jersey State Police, Marine Law Enforcement station in the area where the accident occurred. Work place injuries should be reported to management.

Do not discuss motor vehicle or boating accidents with others involved, this includes the other drivers’ insurance company. Direct any questions to your lawyer. Avoid posting comments on social media websites such as Facebook, Twitter, or Instagram, etc.

Discuss the accident only with the police during the investigations. All other discussions should be limited.
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Published on: April 3, 2013

Charitable Immunities: Immunity from Civil Lawsuits

by Pauline M.K. Young

The concept of a charitable immunity – that charities cannot be sued for negligent conduct – originates from nineteenth century common law, based upon the idea that funds that were otherwise meant to go to charitable causes should not be diverted to pay for legal actions. In 1958, the New Jersey Supreme Court overruled this charitable immunity doctrine. However, shortly thereafter, the New Jersey legislature enacted The Charitable Immunity Act reinstating the charitable immunity to a certain extent.

The Charitable Immunity Act provides in part that nonprofit corporations, societies and associations organized exclusively for religious, charitable or education purposes or their representatives cannot be liable to anyone who suffers as a result of a charitable organization’s representatives’ negligence if they would otherwise benefit from the acts of the organization. Therefore, in order to qualify for the charitable immunity, and therefore avoid suit, the organization must have been promoting its exclusively religious, charitable, or educational purpose to the plaintiff who was a beneficiary of it’s religious, charitable or education efforts.

The idea is that the person who the charitable organization was trying to help cannot then sue the charitable organization for negligence in it’s efforts to aid that person. However, a Charitable Immunity does not insulate an organization from suit if the wrongful act was willful, intentional, reckless, or even grossly negligent.
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Published on: March 27, 2013

Be Prepared To Pay The New Jersey Realty Transfer Tax When You Sell Your Home

by Jennifer C. Meusel

New Jersey imposes a “realty transfer fee” on the sale of property. Sellers of real estate in New Jersey are often surprised by this fee, which is akin to a sales tax. The amount of realty transfer fee changes with the sales price, it is about half a percent for houses selling for $225,000, and increases to about one percent for sales of $1,000,000, as the sales prices go higher, the realty transfer fee continues to increase. You can check the realty transfer fee for a particular sales price using an online calculator.

http://www.realstorynj.com/sellers/realty-transfer-fee-calculator The realty transfer fee, along with the mansion tax, must be paid to the county clerk of the county where the property is located simultaneously with the recording of the deed.

If a home is sold for more than one million dollars it is also subject to the mansion tax in addition to the realty transfer fee. The mansion tax requires the buyer to pay a tax of one percent of the purchase price. Properties which are subject to the mansion tax include residential property, farm property with a house and commercial property. Properties which are not subject to the mansion tax include vacant land, farm property with no residence, farm property which qualifies for farmland assessments, industrial property and apartment buildings with five or more units, cemeteries, public schools, churches and certain properties owned by charitable organizations.

Published on: March 25, 2013

Mediation, Arbitration, Litigation: What is Best?

by Boris Peyner

There are three forms of formal dispute resolution to resolve a legal dispute which informal negotiations have fulfilled: mediation, arbitration, or litigation. Understanding the benefits and drawbacks of each is important to decide which method is best to resolve a dispute.

Mediation.

Mediation is a process where a neutral third party assists in resolving the dispute. Mediators are typically lawyers or retired judges who have extensive experience in the field in which parties have a dispute. The decision to settle is always up to the parties. Mediators do not have the power to issue a binding decision. Instead, mediators can often provide their opinion on how they believe matters will be resolved through a litigation or an arbitration and lead the parties to agree by explaining the strengths and weaknesses of each others’ case.

Mediators will often ask the parties to submit confidential written statements and documents that support the parties position to the mediator before the mediation. On the day of the mediation, the parties will meet at a pre-arranged location with the mediator. The process typically involves the parties providing a short explanation of their side of the case to the mediator. The parties will then break into separate rooms and the mediator will shuttle between rooms to discuss the dispute and a resolution.

Mediation is typically confidential. Mediations resolve disputes quickly and are far less expensive than arbitration or litigation, and allow the parties to control the outcome.
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Published on: March 13, 2013

Property Tax Appeals for Homes Damaged by Superstorm Sandy

by Jennifer C. Meusel

New Jersey law N.J.S.A. 54:4-35.1 allows property owners to request reduced property tax assessments for property damaged as a result of Superstorm Sandy. This law was enacted in the response to a severe Nor’easter which hit New Jersey 1962. That storm caused significant property damage and there was no basis in the law for property tax relief for the affected tax payers. This year, that law is being used to assist property owners who have sustained significant property damage. The statute provides in part:

…When any building or other structure which has been destroyed, consumed by fire, demolished or altered in such a way that its value has materially depreciated, either intentionally or by the action of storm, fire, cyclone, tornado, or earthquake, or other casualty, …the assessor shall…after examination and inquiry, determine the value of such parcel real property as of…January 1, and assess the same according to such value.

Usually, when a homeowner files a property tax appeal, the appeal is based on the fair market value of the property on October 1st of the preceding year. Superstorm Sandy hit the coast of New Jersey on October 29, 2012, devastating communities and causing property damage in the United States which has been estimated to exceed $71 billion.

This law is very limited in that it only assists homeowners who have sustained damage between October 1st of the previous year and January 1st of the current tax year. It also requires notification of the assessor by the property owner before January 10 of the current tax year. If a homeowner notified the assessor and filed the appropriate form with supporting documentation prior to the January 10th deadline, the municipality will investigate and issue an assessment.
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Published on: March 12, 2013

Individual Liability for Violations of the Conscientious Employee Protection Act

by Pauline M.K. Young

New Jersey’s Conscientious Employee Protection Act (“CEPA”) is one of New Jersey’s employment protection laws. The Act, enacted in 1986, is often referred to as the “whistleblower law.” In fact, it is one of the most liberally interpreted and expansive whistleblower laws in the country. It protects employees from being fired in retaliation for the employee’s disclosure of or objection to a wrongful practice of the business or one of the business’s employees.

In order for the statute’s protections to apply, the employee must disclose, object to, or refuse to participate in an act, policy, or practice of the employer which the employee reasonably believes violates a law, regulation, or public policy. Further, the employee must be fired, harassed, or otherwise retaliated against as a direct result of the disclosure, objection, or refusal. The employee does not even have to be right about her belief that the conduct is illegal or against public policy to be protected by the act. The employee merely has to have a reasonable belief of such.

CEPA includes in its definition of “employer” any individual, partnership, association, corporation or any person or group of persons acting directly or indirectly on behalf of or in the interest of an employer with the employer’s consent.
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Published on: March 4, 2013

An Employee Should Choose His Court Well or He Might be Shut Out From Any At All

by Maurice W. McLaughlin

New Jersey has several “tracks” for a government employee who is in civil service to fight when he believes he was wrongfully fired. The first, is in the Civil Service Commission, which can order reinstatement and back-pay. However, this process goes through the Office of Administrative Law and does not provide for a jury trial. The other way is to challenge the firing in the Superior Court, with the constitutional right to have a jury decide the employee’s case. Some statutes, such as the New Jersey Law Against Discrimination and the Conscientious Employee Protection Acts, provide for the award of punitive damages and attorneys fees.

The Conscientious Employee Protection Act (“CEPA”) is New Jersey’s whistleblower law. It protects whistleblowing employees. Employers may not retaliate in any way, whether through firing, harassment, demotion, or in any other manner because the employee has disclosed, objected to, refused to participate in or threatened to disclose a violation of law or public policy regarding public safety, or fraudulent acts. N.J.S.A. 34:19-1.

The New Jersey law had been that an employee could challenge his termination in the Civil Service Commission on the fact that the employer did not have a basis to discharge him, but not be foreclosed from also filing a whistleblower lawsuit under CEPA in Superior Court if she did not raise the retaliatory action before the Civil Service Commission.

The New Jersey Supreme Court, generally is one of the most protective courts of employees rights in the country, was recently issued an opinion by his employer which should give civil servants concern.
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Published on: February 11, 2013

Considerations Before Filing Collection Suit In New Jersey Filing

by Boris Peyner

People or businesses seeking to collect money in New Jersey can file a suit in the Superior Court to obtain a judgment. An experienced New Jersey litigation attorney should be consulted before suing, however,because there are many factors that should be considered. For example, a decision needs to be made about which division of the court to file in and what county the suit can and should be filed in. In addition, the suing party must decide which parties should be named as defendants. Finally the suing party must also decide the type of relief sought and properly request it (i.e., compensatory, attorneys’ fees, prejudgment interest, etc.)

A lawsuit is started with the filing of a complaint. A complaint is the legal document that sets forth the facts and legal reasons why the suing party should recover the requested relief. Complaints must correctly identify the parties being sued. The party filing suit, otherwise known as the plaintiff, is legally responsible to accurately and properly name the correct defendants. Failure to properly name a defendant can later preclude post-judgment collection efforts. Failure to include all responsible parties in one suit can later preclude collecting from parties that were not initially named.

After deciding which parties to name, the plaintiff should decide which county the suit should be brought in. New Jersey Court Rules require a complaint to be filed in the county where the cause of action arose or the county in which any party to the action resides. Corporations are considered to reside in any county in which the corporation either does business or its registered office is located. A plaintiff can hire private investigators to perform a search to identify the address where a potential defendant resides; a good lawyer can often do this also. A plaintiff can also search the New Jersey Department of the Treasury website to determine where a corporation is registered or does business. It is critical to file the complaint in the proper county. Failing to file to file the complaint in the proper county can lead to a dismissal of the lawsuit.

After picking the county in which suit will be filed, the moving party must decide which division of the court to file in. If a matter involves an amount in controversy of $15,000 or less than it may be brought in the Special Civil Division of the Superior Court. If the amount in controversy is greater than $15,000 then it must be brought in the Law Division because Special Civil Part monetary recovery is capped at $15,000, exclusive of court costs and attorneys fee (if allowed by law). There are advantages to filing suit in either the Law Division or the Special Civil Part.
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