In the Ins and Outs of the Fraudulent Transfer Laws In a Failed Business Venture

HNW Business Law

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Fraudulent Transfer Attorney Here’s an interesting case involving the fraudulent transfer law. In Carucci v. Regency Fin. Group LLC, the plaintiff loaned an accounting firm, $100,000. The firm never paid back the money that was due.  So the plaintiff sued, and the defendant failed to show up to court.  When a defendant does not show up in court judgment is automatically entered against them; it is called a ‘default judgment.’ While the lawsuit was pending, the defendant accounting firm filed for bankruptcy. In a classically deceptive manner the defendant’s wife formed another accounting firm and opened it for business in the same exact location of the old …

Protect Yourself from Personal Liability When Doing Business in New Jersey

HNW Business Law

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Business Commercial Law Attorney In the case of, In re Ryan and Jane Ltd, the New Jersey Courts addressed whether alter-ego and fraudulent transfer claims become the property of the bankruptcy estate.  Before we go any further, let’s talk about all of these different claims. The “Alter ego” and “piercing of the corporate veil” legal theories are interrelated concepts, so it helps to talk about them together.  The easiest way to think about these concepts is to refer to the action heroes:  Batman and Bruce Wayne. Each is the same person.  However, Batman is Bruce Wayne’s alter ego.  Whenever Bruce Wayne needs to save the day he …

Constructive Termination of a Franchise Agreement

HNW Business Law

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Franchise Law Attorney Constructive termination of a franchise occasionally arises when a manufacturer discontinues a certain line of products, without cutting off complete ties with another party, in terms of their commercial relationship.  There is a popular case that is commonly used to discuss the nuances of a constructive termination of a franchise agreement that involves General Motors.  Around 1988, General Motors agreed with Volvo to manufacture a particular line of heavy duty trucks intended for construction purposes.  General Motors discontinued its heavy duty truck line.  GM had agreements with several dealers involving their own heavy duty truck line.  When GM discontinued this line, several dealerships across …

How to Get a Non-Paying Defendant to Pay Up Their Debt to You

HNW Business Law

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold, NJ Lawsuit Judgement Attorney What happens when a judgment has been entered against a defendant in a lawsuit.  The plaintiff wants his or her money, but for many defendants, they don’t want to pay up. So how does a plaintiff go about forcing the defendant to pay?  Like most things in law, the answer to this question is not easy, nor straightforward. In summary, N.J. Statute 2A:17-1 provides that the County Sheriff will seek to satisfy the judgement by going after the property of the party who the judgment was entered against.  If that is not enough to pay off the debt, then the sheriff will satisfy the …

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 …