Contract law offers contracting parties a defense against performing under a contract where the fulfillment becomes impossible due to unforeseen events outside the parties control. These unforeseen events are often called “force majeure” or “acts of god.” With each passing day, the government, in response to COVID-19, is imposing more restrictive containment measures. These measures are likely to affect the parties’ workforce and supplies needed to perform the contract.

Continue Reading Will the Coronavirus Be Deemed a Force Majeure Event and If So, How Will That Effect You?

The House of Representatives passed legislation aimed at mitigating the economic impact of the coronavirus by providing financial assistance to businesses and individuals. Assuming the bill is passed by the Senate early next week and signed into law by President Trump, the law would ensure that workers can take paid or sick leave. The bill also bolsters unemployment insurance and guarantees that all Americans receive free diagnostic testing for coronavirus.

The potential economic fallout from coronavirus is unknown at this time.


Continue Reading House Passes Bill to Address Coronavirus – Now It’s Our Turn to Do Our Part

A recent New Jersey federal court decision denying Strike 3 the right to expedited discovery highlights a recent departure from the status quo of allowing Strike 3 to subpoena Internet Service Providers (“ISP”) such as Comcast, Verizon, and Optimum, in order to discover the identity of the individual subscriber of a certain Internet Protocol (“IP”) address that Strike 3 alleges was used to illegally download its copyrighted adult movies using the file sharing platform BitTorrent. This is good news for those who find themselves caught in the well-oiled litigation machine created by Strike 3 and Malibu Media.

Continue Reading New Jersey Federal Court Shuts Door on Strike 3 Litigation

Pursuant to New Jersey corporate law, directors are trustees for the entire body of the owners. Directors owe loyalties to all shareholders. If they disregard the rights of the majority shareholders, minority shareholders, or the corporation itself they could be liable for a breach of fiduciary obligations or duties.

Continue Reading Business Judgement Rule Inapplicable if Director is Engaged in Self-Dealing, Unconscionable, or Fraudulent Activities/Decisions

New York Courts do not have the power to order the dissolution of a corporate entity that operates in the State of New York, but was formed under the laws of another state. In Re Matter of Raharney Capital, LLC v. Capital Stock, LLC, 138 A.D. 3d 83 (1st Dept. 2016).

In that case, Plaintiff, Raharney Capital, LLC, (“Raharney”) a Delaware limited liability company with a principal place of business located in the State of New York filed an action against Capital Stock, LLC, (“Capital Stock”) in the State of New York seeking juridical dissolution pursuant to Section 18-802 of Delaware’s Limited Liability Act of a Delaware entity formed by Raharney and Capital Stock. That entity, Daily Funder was a Delaware Limited Liability Company, with a principal place of business in New York City. Raharney and Capital Stock each owned 50% of Daily Funder.


Continue Reading New York Courts Will Not Dissolve Out-of-State Corporate Entity

The European Union (EU) has long recognized the importance of privacy as a human right. In 1980, the Organization for Economic Cooperation and Development (OECD) issued the “Recommendations of the Council Concerning Guidelines Governing the Protection of Privacy and Trans-Border Flows of Personal Data,” which laid out seven principles governing the OECD’s recommendations for protection of private personal data. These principles were then incorporated into the EU’s Data Protection Directive, which regulated the processing of personal data and was officially adopted in 1995. The principles included:

  • Notice: data subjects should be given notice when their data is being collected;
  • Purpose: data should only be used for the purpose stated and not for any other unstated purposes;
  • Consent: data should not be disclosed without the data subject’s consent;
  • Security: collected data should be kept secure from any potential abuses;
  • Disclosure: data subjects should be informed as to who is collecting their data;
  • Access: data subjects should be allowed to access their data and make corrections to any inaccurate data; and,
  • Accountability: data subjects should have a method available to them to hold data collectors accountable for not following the above principles.


Continue Reading What is GDPR and Why You Should Care?

Last week, the NFL sought to end the political controversy surrounding some players kneeling during the national anthem by enacting a policy fining teams if players kneeled during the Star-Spangled Banner.

Under the new policy, players could stay in the locker room while the national anthem of the United States is played. Shortly, thereafter, players wrongfully asserted that the new policy violates their First Amendment protection of “freedom of speech.”

The problem with the players’ constitutional argument is that the Constitution only applies to “State actors.” The state action requirement stems from the fact that the constitutional amendments protecting individual rights are mostly phrased as prohibitions against government action. The First Amendment to the United States Constitution sets forth, “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof, or abridging the freedom of speech, or the press, or the right of the people peacefully to assemble, and to petition the Government for a redress of grievances.” The Fourteenth Amendment, which was ratified after the Civil War, made most of the liberties set forth in the Bill of Rights applicable to the States.


Continue Reading NFL’s Anti-Kneeling Policy Does Not Violate Players’ Constitutional or Employment Rights