New Jersey Lawyers Blog

Published on: December 20, 2018

New Jersey Contract Law Provides Remedies to Third-Party Beneficiaries

rules-1339917__340-300x231 Very often, a person or business will want to confer a benefit on a third party but will not be able to do so itself, for a variety of reasons. So then, to make sure the benefit will be conferred, it will enter into a contract with a person or business which has the ability to confer the benefit. The question, then, is what rights does the third-party beneficiary have?

Let’s say Sam wants to build a deck for his friend Joe’s house, but Sam is an incompetent carpenter. So Sam signs a contract with Acme Building Contractors, Inc., in which Acme agrees to build a deck on Joe’s house, and Sam agrees to pay Acme $5000. Sam pays Acme in full but it never builds the deck, and then Sam dies. Now Acme has $5000 and Joe doesn’t have a deck. Does Joe have any remedies to enforce Sam’s contract with Acme? That all depends on whether Joe can be considered a third-party beneficiary under New Jersey law. The basic answer is yes, if Sam and Acme intended Joe to be a third-party beneficiary.

New Jersey Law Expressly Allows Third-Party Beneficiaries to Enforce Contracts

Published on: December 4, 2018

New Court Rules Streamline New Jersey Business Litigation

by McLaughlin & Nardi, LLC

tax-739107__340-300x200 New Jersey’s Supreme Court adopted new rules which became effective September 1, 2018. These rules amend New Jersey’s Rules of Court to make the litigation of complex business law matters more efficient. This article discusses some of the major changes the new rules have brought about.

Background

In 2000, the Supreme Court revised the discovery procedures in New Jersey’s Court Rules for civil cases. These amendments were adopted because the courts in various counties had developed different discovery procedures. The Supreme Court’s aim was to standardize these rules so that litigants would get the same level playing field in every county throughout the state. However, in adopting three basic case tracks, the Court may have gone too far in limiting judges’ ability to manage complex business law cases. The Supreme Court therefore explored establishing a separate track for complex commercial cases.

Published on: November 28, 2018

Key Documents and Considerations when Purchasing a Franchise in New Jersey

by Jennifer C. Meusel

italian-food-2361054__340-300x200 Before you enter into an agreement to purchase a franchise, it is vital to review and understand the documents you are being required to sign. You will be required to execute the following documents:

1) The Franchise Disclosure Document, previously known as the Uniform Franchise Offering Circular, provides information regarding the franchise’s history, the nature of the business and the products or services it provides, as well as the costs and fees imposed the franchisor, the operational requirements, and historical financial information.

It will, of course, state that past success does not guarantee future success, but it should give you details of the business up to the present date. It must include mandatory disclosures pursuant to the Code of Federal Regulations, Volume 16, Part 436, see The Franchise Rule Compliance Guide.

Published on: November 21, 2018

Recent District of New Jersey Decision Demonstrates Why Federal and New Jersey Employment Law Need to be Amended

by Maurice W. McLaughlin

yes-3029367__340-300x158 The United States District Court for the District of New Jersey recently issued a decision which illustrates some of the weaknesses in both Federal and New Jersey Employment law, particularly Title VII of the Civil Rights Act of 1964 and New Jersey’s Law Against Discrimination. Our attorneys represent both employers and employees in employment law, and this issue is of utmost concern to us.

The decision was in the case of Axakowsky v. NFL Productions, LLC, d/b/a NFL Films. In that case, Nadia Axakowsky sued NFL Productions, LLC, for sexual harassment under Title VII of the Federal Civil Rights Act of 1964 and New Jersey’s Law Against Discrimination. The judge dismissed the case on summary judgment, ruling that Axakowsky was an independent contractor and therefore was not protected by either law.

The judge undertook a detailed analysis under federal case law interpreting Title VII. Culminating with the United States Supreme Court’s decision in Nationwide Mutual Insurance Company v. Darden in 1992, the federal courts have developed a test to determine whether a worker classified as a contractor is in reality an employee entitled to protection under Title VII. The judge went into detail examining all the factors in the relationship, and determined that Axakowsky was in reality a contractor, not an employee, and therefore not entitled to protection under Title VII. Without going into detail, given that Axakowsky worked only one and a half hours per week as a voice-over artist and continued to audition for and accept other work, the analysis was in all likelihood correct.

Published on: November 13, 2018

Proposed Regulations for New Jersey’s Paid Sick Leave Act

by Robert Chewning, Esq.

silhouette-3299358__340-300x274 As previously discussed here, on May 2, 2018, New Jersey’s Governor, Phil Murphy signed into law New Jersey’s Paid Sick Leave Act (the “Act”). The Act took effect on October 29, 2018. The New Jersey Department of Labor and Workforce Development (“NJDOL”) issued proposed regulations to further address the employees’ rights and employers’ obligations under the Act.

Below is a list of several areas where the proposed regulations provided additional guidance to the Act itself:

1. Exempt Employees under the Act.

Published on: November 12, 2018

While Recent U.S. Supreme Court Decision Extends Federal Age Discrimination Protections for Public Employees, New Jersey Law Already Offered Strong Protection to Older Government Employees

by Maurice W. McLaughlin

creative-signstop-age-discrimination-260nw-520754950-300x215 Amazingly, despite the law being clear for many years that age discrimination in employment is illegal, and despite the fact that both research and experience have shown the value of mature workers, age discrimination against older employees continues to be widespread in New Jersey and the country at large. Both the Federal Age Discrimination in Employment Act and New Jersey’s Law Against Discrimination provide strict prohibitions against employers and supervisors discriminating against older employees.

Sometimes, however, the boundaries of these laws are unclear, and guidance from the Courts is required. On November 6, 2018, the United States Supreme Court issued an important decision affecting the rights of state and local government employees under the Age Discrimination in Employment Act.

The Mount Lemmon Fire District Case and the Age Discrimination in Employment Act

Published on: November 8, 2018

Union Members May Opt-Out of Paying Dues

by Pauline M.K. Young

we-566326__340-300x135 On June 27, 2018, the United States Supreme Court issued an important employment law decision in the case of Janus v. American Federal of State, County and Municipal Employees (“AFSCME”). Prior to Janus, the general law was that public sector unions (i.e. unions comprised of governmental employees) could collect fees from employees even when the employee did not want to join the union. The prior law was set in the case of Abood v. Detroit Board of Education,a prior United States Supreme Court case from 1977.

In Abood, the Court held that a public employee could still be required to pay union dues to cover collective bargaining, contract administration, and grievances even if they refused to join the union. The employee could only opt out of paying a portion of fees which were used for political purposes. Much of the reasoning for that holding was that public employees would benefit from union activities and thus should have to pay for such activities; however they did not need to pay for ideological or political support which the employee did not support. Being forced to make donations to political candidates through mandatory union dues was found to be a violation of First Amendment rights.

However, the Janus ruling changed that long-followed law. Janus argued that everything a public-sector union does (including bargaining for wages) is inherently political because it involves the use of taxpayer money, and therefore all mandatory union dues protected by the First Amendment. One concern is that this could potentially have a negative effect upon democratic political support where unions are generally very active in supporting candidates.

Published on: October 26, 2018

Civil Service Commission: List Removal Appeals & Residency Requirements

by Robert Chewning, Esq.

autumn-house-3689939__340-300x159 Our employment attorneys represent applicants who have been removed from lists of eligibles for Civil Service positions for a variety of reasons including disqualification for failing background check, failing to maintain residency, and psychological and medical disqualification.

When applying for a Civil Service position, one requirement that may get overlooked by a potential applicant is the residency requirements for that position within a specific Civil Service jurisdiction. All open competitive examination announcements should state the residency requirements for that position and, unless otherwise specified, that these requirements must be met until the announced closing date and/or as of the date of the appointment. N.J.A.C. 4A:4-2.11(a).

N.J.A.C. 4A:4-2.11(b) defines residence as a single legal residence. Factors for determining an individual’s residence for local service have been developed through N.J.A.C. 4A:4-2.11(c) and discussed in cases such as In the Matter of Roslyn L. Lightfoot (MSB, decided January 12, 1993) and In the Matter of James W. Beadling (MSB decided October 4, 2006.) These factors include:

Published on: October 24, 2018

Employee Discipline Under New Jersey’s Civil Service Laws

by Maurice W. McLaughlin

disciplinary-1326277__340-300x300 New Jersey’s government employees provide a wide range of services without which the public could not survive. These range from law enforcement to firefighting, mass transit, garbage removal, building and maintaining roads, ensuring the safety of buildings, protecting the civil rights of New Jersey’s citizens, protecting the environment, traffic safety, urban planning, parks, agriculture, guarding inmates, the list goes on – in short, they affect virtually every aspect of our lives.

Our employment attorneys regularly represent New Jersey civil servants defending themselves against discipline imposed their governmental employers. This is a brief overview of discipline and appeals procedures under New Jersey’s Civil Service System.

Background

Published on: October 16, 2018

The Constitutional and Statutory Foundations of New Jersey’s Civil Service System

by Maurice W. McLaughlin

New Jersey’s Civil Service governs the hiring, promotion, classification and discipline of employees of government the State of New Jersey, and employees of the majority of counties, municipalities and governmental boards and commissions which have chosen to be governed by Civil Service . The Civil Service System is governed by the New Jersey Constitution and New Jersey’s Civil Service Act and the regulations issued by New Jersey’s Civil Service Commission which implement the Civil Service Act.

Constitutional Foundation

New Jersey’s Civil Service System is based on a strong constitutional foundation. Article VII, section I of New Jersey’s Constitution of 1947 provides that: