Business Litigation
On June 1, 2011, in Voss v. Tranquilino, No. A-110-09 (N.J. June 1, 2011), the New Jersey Supreme Court, affirming the judgment of New Jersey's Appellate Division, held, in a per curiam opinion from which two Justices dissented, that a driver of a motor vehicle who is convicted of, or pleads guilty to, driving while intoxicated ("DWI"), N.J.S.A. § 39:4-50(a), may recover damages under the New…Read More
A corporate or individual litigant is usually responsible for the payment of its own attorneys' fees and costs in a lawsuit in the New York state courts. New York follows the so-called "American Rule" that a litigant is "not . . . allow[ed] . . . to recover damages for the amounts expended in the successful prosecution or defense of its rights." Mighty…Read More
In general, no. In the courts of the State of New York, adult individuals may prosecute or defend a civil action in person, but a corporation or association may do so only through an attorney. N.Y. C.P.L.R. 321(a). So, too, a limited liability company must appear in a lawsuit by an attorney. However, New York's First Department and the Second Department each have held that an individual…Read More
New Jersey's entire controversy doctrine generally requires that a defendant assert in the same lawsuit any claims arising out of the same transaction or occurrence that is the subject of an adversary's lawsuit. If a defendant fails to assert related counterclaims in an adversary's lawsuit, the defendant's inaction "shall result in the preclusion of the omitted claims." N.J. Ct. R.…Read More
In general, a business in New York State may lawfully refuse to provide service to a particular individual for any reason or no reason, as long as the business does not refuse service because the individual belongs to a member of a class protected by statute. Classes protected under the New York State Human Rights Law include any person's race, creed, color, national…Read More
If a company in New York State receives a subpoena demanding documents -- also known as a "subpoena duces tecum" -- in a lawsuit to which the company is not a party, the company should, among other actions: determine whether the subpoena was properly served on it; serve objection(s) within 20 days of receipt of the subpoena, unless a written stipulation is obtained extending…Read More
In New York State, the rate of interest upon the loan or forbearance of any money, goods, or things in action may not exceed 16% per year. N.Y. Gen. Oblig. Law § 5-501(1); N.Y. Banking Law § 14-a(1). That is, in New York, charging interest of more than 16% per year is civil usury. N.Y. Gen. Oblig. Law § 5-511…Read More
If both parties to a telephone conversation are located in New York State, then one of the parties to that telephone conversation may record the conversation, without the other party's consent, for use in the recording party's lawsuit. This is the case because neither the New York Penal Law nor the federal Electronic Communications Privacy Act (the "ECPA") renders it…Read More
A corporation in New York State should observe certain formalities in its formation and operation to keep its status as a corporation with regard to shielding its shareholders from individual liability. Shielding of A Corporation's Shareholders From Personal Liability In New York State, shareholders generally may not be held personally liable for causes of action against the corporation. Indeed, the…Read More
A corporation in New Jersey must follow certain formalities in its formation and operation to maintain its status as a corporation with respect to protecting its shareholders from personal liability. Protection Of A Corporation's Shareholders From Individual Liability In New Jersey, shareholders generally are not liable for claims against the corporation for amounts greater than their investment in the corporation. …Read More