The termination of a shareholder’s employment may constitute oppression under N.J.S.A. 14A:12-7(b)(1)(c). That is because a person who holds a share in a closely held corporation often does so “for the assurance of employment in a closely-held corporation in the business.” Muellenberg v. Bilkon Corp., 143 N.J. 168, 180-181 (1996). That is because, a shareholder may have a “reasonable expectation” of continued employment. See, Brenner v. Berkowitz, 134 N.J. 488, 508 (1993).

When representing the minority, it is important to develop why the employee/shareholder had a reasonable expectation of continued employment. Of course, when representing the corporation or majority, counsel should present evidence that the employee/shareholder did not have a reasonable expectation of continued employment.

Continue Reading Can the Termination of a Shareholder’s Employment be Oppression?

This blog will explore the possibility of probating a copy of a Decedent’s Will if the original document cannot be located. Typically, the County Surrogate will only accept for Probate an original of a Decedent’s Last Will and Testament. If for some reason an original of a Decedent’s Will cannot be located, a party may apply to the Court to Probate a copy of the Decedent’s Will.

Continue Reading Attempting to Probate a Copy of a Will

This week, Massachusetts-based pizza chain Bertucci’s filed for Chapter 11 bankruptcy protection in the Delaware (seeking joint administration under case No. 18-10894). Bertucci’s operates 59 stores, 29 of which it plans to reject.

According to The Wall Street Journal, an affiliate of Chicago-based investment firm Right Lane Capital LLC has agreed to purchase the chain’s assets, but that bid will be tested at a bankruptcy-court supervised auction.

Continue Reading Pizza Chain Bertucci’s Files for Chapter 11 Protection

Today, Claire’s Stores, Inc., along with seven affiliates and subsidiaries filed for Chapter 11 bankruptcy protection in the Delaware (Case No. 18-10584). Claire’s is a well-known specialty retailer of teen and young women jewelry, accessories, and beauty products, as well as ear piercings at local malls, based in Cook County, Illinois.

Back in January 2018, I included them on my list of Retailers to Watch for a Bankruptcy Filing in 2018.

According to Court pleadings, the company negotiated a restructuring support agreement and plan term sheet with an ad hoc group of its first lien noteholders and is seeking approval of up to $135 million in DIP financing.

The company lists 92 stores to close, on top of the 100 that it closed last year. Still, Claire’s indicates that it intends to operate the remaining 1,600 Claire’s and Icing brand stores through a restructuring.

Continue Reading Teen Fashion Retailer Claire’s Files for Chapter 11 Protection

In general, the time to contest a Last Will and Testament is very short. An in-state resident who is aware of the notice of probate will have four months to challenge a Will from the time it is submitted to probate. On the other hand, an out of state resident would have six months to challenge a Last Will and Testament once it is admitted to probate.

Continue Reading Challenging a Previously Concealed Will

Does a private pipeline company have the right to file a lawsuit to take private property to build a gas pipeline?

Under the Natural Gas Act, a pipeline company can apply to the Federal Energy Regulatory Commission (FERC) for a Certificate of Public Convenience and Necessity. If FERC issues the Certificate of Public Convenience and Necessity and the pipeline company meets many other conditions, it can obtain the power take private property.

Continue Reading Frequently Asked Questions About Defending Eminent Domain Actions Filed by Pipeline Companies

After a person passes away, their assets are typically divided into probate assets, which are assets which pass through the Estate, and non-probate assets, which are assets which pass outside of the Estate.

Probate assets are those to which a beneficiary is not specified, and thus, the assets become part of the Decedent’s Estate.

Non-probate assets those in which a direct beneficiary is specified by the instrument itself, and therefore, these assets pass outside of the Estate.

Traditionally, an IRA, a joint bank account, and other investment vehicles are considered non-probate assets provided the beneficiary designation or survivorship designation is properly executed.

Continue Reading Payable on Death Designations for IRA and Non-IRA Accounts

Property managers are often tasked with leading a board or member meeting. These tips will help to keep the meeting on track and productive. Before doing anything else in preparation for the meeting — double check compliance with notice requirements. No notice = no meeting.

Prior Planning Prevents Poor Performance – “The Five ‘P’s”

Preparation is the key to a successful meeting. Determine what type of meeting will be held – that is, a board or member meeting. Create a clear and concise agenda. Remind the board that it is your role to keep the meeting on track. Organization helps to start things off right and keep the meeting on the right track.

Continue Reading Tips to Help Property Managers Effectively Manage Meetings

It would be unusual for a large to medium scale construction project to be completed without the general contractor experiencing issues with at least some of its subcontractors or suppliers.

Under such circumstances, it is typical for back charges to be assessed by the general contractor against the subcontractor or supplier who failed to perform properly pursuant to the terms of their contract. If the possibility of litigation looms in the future concerning such issues, or even if it may not, it is suggested that the general contractor carefully document any potential back charges against the subcontractor or vendor.

Continue Reading Documenting Backcharges on Construction Projects