If Your Business Charter is Revoked in New Jersey, You Can’t Bring Legal Action

HNW Business and Corporate Legal Services, Business Law

The judge concluded correctly that E&V’s failure to reinstate its revoked corporate charter precluded E&V from filing this action. Background E&V, a construction contractor filed a complaint against Deeper Life Bible Church (Bible Church), and several individual defendants. E&V alleged it contracted with Bible Church to build a Church building, that it performed the work, but Bible Church failed to pay the balance due. E&V sought final payment from Bible Church and the individual defendants. Several years ago, E&V lost its corporate charter in NJ for failing to file tax returns and quarterly withholding reports. Now being formally unauthorized to do business in NJ with a revoked certificate of incorporation, E&V improperly entered into the construction contract to build the …

When You Sign a Business Contract You Absolutely Must Negotiate Litigation Provisions Outside of New Jersey

HNW Business and Corporate Legal Services, Business Law

By Fredrick P. Niemann of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, New Jersey Business Corporation and Contract Law Attorney I have written extensively about the importance of selecting New Jersey as the jurisdiction to decide cases and controversies involving your contracts and relationships with customers/vendors.   Many contracts with (particularly) interstate and international companies generally designate a particular state as the place where all lawsuits and legal disputes must be filed and the law of that state applied. Much like mandatory arbitration clauses, State and Federal Courts are increasingly enforcing these mandatory jurisdiction and venue provisions as one way to reduce their case load.  A recent case decided in California involved a New Jersey church and school where …

Landlord’s Prohibited From Billing Tenants More Than Actual Cost of Consulting Lawyer

HNW Real Estate, Landlord/Tenant, and Zoning

By Fredrick P. Niemann, Esq., a NJ Consumer Fraud Attorney New Jersey Law dictates that attorney’s fees may not be shared with non-attorneys. This simple rule typically comes into play with referral services. Most lawyers are seeking more and more clients and would love to be able to have someone refer clients to them. While the law states it is ok for one attorney to refer a client to another attorney and receive a percentage of the fee for doing so, non-lawyers are prohibited from a receiving this same percentage for their referral. This law often comes up in the landlord/tenant relationship, as some landlords include a provision in their contract with the tenant that calls for the tenant to …

A SUBLEASE VIOLATION COSTS TENANT ITS LEASE; COURT ALLOWS EVICTION

HNW Real Estate, Landlord/Tenant, and Zoning

By Christopher J. Hanlon, Esq. an attorney protecting the rights of the landlord Don’t assume knowledge of a violation of a lease provision will allow you to avoid eviction.  A recent NJ decision involving a commercial landlord and tenant is significant, in part, because it originates from the Appellate Division and therefore it is binding statewide.   The Court considered a judgment entered by the lower court for possession in favor of the landlord.   The lease specifically prohibited the tenant from assigning or subletting any portion of its space and the adjacent exterior parking space without the written consent of the landlord.   The landlord alleged that the tenant subleased part of its space to an unrelated third party business without its …

Is your New Jersey Tenant Filing for Bankruptcy? Take action now to protect your rent.

HNW Real Estate, Landlord/Tenant, and Zoning

By Christopher J. Hanlon, Esq. an experienced attorney for Landlords. Commercial Landlords: Four Important Questions to Ask When a Tenant Files for Bankruptcy With the downturn in the residential and commercial real estate market, a number of commercial tenants are experiencing financial difficulties. In turn, this can lead to problems for commercial landlords, most importantly, the tenant staying current with lease payments. This may then lead to the tenant filing for bankruptcy protection. If your commercial tenant files for bankruptcy, it is wise to have a strategy in place to not only minimize the time of non-payment, but also maximize the ability to receive rents and damages allowed under the Bankruptcy Code. Following are four (4) questions for a commercial …

Landlord’s Beware: Commercial Tenant Failure to Obtain Municipal Permits Not Grounds For Eviction

HNW Real Estate, Landlord/Tenant, and Zoning

The New Jersey Appellate Division in an unpublished decision, Cesar S. Arredondo v. Nersy Pujols, Docket No. A-5459-05T25459-05T2, ruled that breaches of both of a lease provision and a New Jersey statute for failing to obtain municipal permits before commencing construction work were NOT grounds for evicting a commercial tenant.  Although very fact specific to a landlord with apparently “unclean hands”, this decision highlights pitfalls that can beset a landlord in the New Jersey eviction process. Cannot Evict for “Minor” Breaches (No Permits, No Insurance, Sidewalk Sales, Etc.) The Appellate Division agreed with the trial court on the insurance issue and the landlord’s inconsistent testimony.  However, the Appellate Division held that the breach was “not material” to warrant the tenant’s …

Landlord’s Beware: Commercial Tenant Failure to Obtain Municipal Permits Not Grounds For Eviction

HNW Real Estate, Landlord/Tenant, and Zoning

The New Jersey Appellate Division in an unpublished decision, Cesar S. Arredondo v. Nersy Pujols, Docket No. A-5459-05T25459-05T2, ruled that breaches of both of a lease provision and a New Jersey statute for failing to obtain municipal permits before commencing construction work were NOT grounds for evicting a commercial tenant.  Although very fact specific to a landlord with apparently “unclean hands”, this decision highlights pitfalls that can beset a landlord in the New Jersey eviction process. Cannot Evict for “Minor” Breaches (No Permits, No Insurance, Sidewalk Sales, Etc.) The Appellate Division agreed with the trial court on the insurance issue and the landlord’s inconsistent testimony.  However, the Appellate Division held that the breach was “not material” to warrant the tenant’s …