Attorneys

New Jersey State Bar Association Cannabis Law Committee Announces New Initiatives

Ansell Grimm June 8, 2023

The New Jersey State Bar Association recently welcomed new co-chairs of its Cannabis Law Committee. The Committee also announced vital new initiatives related to the cannabis industry which are being pursued in the 2023-2024 term. The committee was previously co-chaired by Ansell Grimm & Aaron shareholder Joshua S. Bauchner and Epstein Becker & Green partner Lisa A. Gora. Bauchner and Gora chaired the Committee for two terms concluding on June 30, 2023.

The new initiatives, announced at the May NJSBA convention in Atlantic City, will promote expungements of cannabis-related convictions and develop guidance for Workplace Impairment Recognition Experts (WIREs). The new committee co-chairs also plan to support increased education at local bar associations. Bauchner, in his role as outgoing co-chair, is quoted in an article discussing these new appointments and initiatives. Read the article here.

As one of the most rapidly evolving industries today, lawyers in this space must be educated on licensing, operations, and employment issues such as drug testing. Contact an attorney in our Controlled Substances and Regulatory Law Practice Group with any questions in this emerging area of law.

Rock-Scissors-Paper Won’t Cut It: Effective Mechanisms for Resolving Deadlocks Between Business Owners

Ansell Grimm May 31, 2023

By Lawrence H. Shapiro

In sports, no one likes games to end in a tie. They are anti-climactic and disappointing. But in business, ties can have much more significant consequences. When equal shareholders in a closely held corporation, partners in a partnership, or members of a limited liability company find themselves tied – deadlocked – when making significant business decisions, it can put both the ongoing viability of the enterprise and the relationships behind the business in existential peril. And in any company where voting power or equity interests are equally divided, deadlock is always possible, if not a probability.

Management and ownership deadlocks can quickly devolve from disagreements among friends to irreconcilable differences between two soon-to-be-former business partners. Often, such disputes wind up in a courtroom where the fate of the owners and the business they bult together is left in the hands of a judge. Sometimes, litigation is necessary to protect the rights of an owner or preserve the business and its assets. In such circumstances, it is imperative that each owner retain their own experienced business litigation attorney to advise them and work to obtain a favorable outcome that, ideally, protects the business and the owner’s interests.

But litigation between deadlocked business owners can also be costly, disruptive, and lead to results that neither side wants, such as judicial dissolution and liquidation of the business. Given the foreseeability of deadlock – and the probable negative consequences of an extended stalemate among owners – it is critical that business owners have an effective mechanism in place to resolve these disputes when they arise.

For this reason, deadlock provisions should be included in a business’s foundational documents, such as an operating agreement, partnership agreement, or corporate bylaws. Even if the original versions of such documents do not contain deadlock provisions, amendments can be crafted to address a logjam should it arise. Resolving deadlocks that threaten the future of a business should not be left up to dumb luck. In fact, coming to an agreement on how to resolve a disagreement is easier while the business owners are getting along than having a court decide after the relationship falls apart.

If you have questions about ownership deadlocks or would like assistance establishing a deadlock resolution for your business, please contact one of the business law attorneys at Ansell, Grimm & Aaron.

Ansell.Law Secures Micro-license and Zoning Site Approval for Cannabis Retailer in Monmouth County

Ansell Grimm May 19, 2023

Establishing a retail cannabis facility in New Jersey is a long and complicated process. Although adult recreational cannabis use is now legal in New Jersey, local municipalities have their own regulations limiting or prohibiting recreational-use retailers. Before opening a retail location, recreational cannabis retailers must first successfully navigate through a complex and rigorous licensing process with the State of New Jersey.

After obtaining a license from the state, retailers are then faced with the arduous task of working through the maze of local regulations and zoning rules to secure approvals for a suitable location for their store.

The firm’s Controlled Substances and Regulatory Practice Group, led by attorneys Joshua S. Bauchner and Kelsey M. Barber, secured a “Micro” license for its client, Canopy Crossroad, which classification requires, among other things, that ownership of the cannabis retailer consists of local residents. After clearing that first hurdle, Canopy Crossroad needed to find and secure a location for its store and then undertake the challenging local municipal zoning approval process. They decided on Red Bank, a town that had agreed to opt-in to New Jersey’s law allowing the sale of cannabis. But before opening their dispensary, Canopy Crossroad needed approval from the Borough’s Planning Board.

As a full-service firm with cross-disciplinary practice areas, our client then was able to work with Rick Brodsky, of the Land Use and Zoning Law Department, who appeared before the Red Bank planning board on Monday, May 1^st, and Monday, May 16^th, for hearings on Canopy Crossroad’s application for site plan approval to open their retail outlet. After a heated debate among Brodsky, representatives of Canopy Crossroad, the Red Bank Planning Board, and opponents to opening a cannabis retailer in Red Bank, the Planning Board approved Canopy Crossroad’s conditional use site plan application on an 8-1 Board vote.

“Red Bank opted in, and cannabis is legal in the state,” said Brodsky. “By opting in, the town was required to specify districts where cannabis can be sold as a permitted use. The Red Bank Planning Board correctly interpreted the law, and we are delighted that they approved our site plan.”

Bauchner further noted that the Firm was a “one stop shop” for cannabis, and other clients, servicing all our clients’ needs: “From corporate formation and operating documents, to lease agreements or site acquisition, to preparation of applications before the State CRC and Townships, to zoning approvals, all the way through to vendor and employee agreements once operational, our attorneys collaborate across disciplines to fulfill all client needs.”

Roy Hibberd Sets Up Innovative Fitness Center Founder for Franchising Success

Ansell Grimm May 12, 2023

Ask personal trainer and fitness center owner Anthony Kapasakis to develop a training and fitness program for you, and he will enthusiastically put together an intense and personally tailored plan perfectly suited to your experience and goals. But if you’d asked Anthony in 2021 for his plan to grow and expand his group of four innovative and increasingly popular New Jersey fitness centers, he would have been far less pumped.

“I had a general idea of what I wanted in terms of growth – empowering my managers to ultimately take over and own their locations, building strong ties with the communities we operated in, developing a strong brand, and keeping a consistent company culture and member experience,” said Anthony, founder and owner of SETS Hybrid Training. “But I didn’t have any real sense of how to accomplish those things. That all changed when I met Roy.”

Both as a lawyer, a corporate executive, and a franchise area development owner himself, Ansell Grimm & Aaron’s Roy Hibberd has played instrumental roles in the success of countless businesses in a wide range of industries, developing franchising and other strategic growth plans for billion-dollar companies and start-ups alike. He fondly remembers his first meeting with Anthony and how impressed he was with Anthony’s vision and passion for his work, his fitness centers, his employees, and his members.

A “Graduate Degree Program in Franchising”

“Anthony clearly knew the fitness business inside and out, but it was his infectious enthusiasm and genuine interest in seeing his managers and employees grow and succeed as much as his business that made me excited to work with him,” Roy said.

Anthony, who at the time owned and operated SETS gyms in Freehold, Hamilton, Jackson, and Old Bridge, New Jersey, had a very high-level understanding of franchising but was seeking to work with an attorney who could address both the business and legal issues involved. After discussing his goals with Roy, Anthony was convinced that franchising was the best way to realize his dreams for his business and that Roy was the right person to make that happen given Roy’s significant franchise expertise and experience.

“I knew next to nothing about franchising,” Anthony recalls. “Roy understood that while I was an entrepreneur, I certainly wasn’t a lawyer, and he didn’t talk to me like one. He walked me through every aspect of how things would work, what to expect, and what we needed to do and change to create a SETS franchise system. Then we got to work.”

A Better Business Owner and Stronger Company

Anthony remembers that the process of getting his company in position for expansion, in particular the development of the SETS Franchise Disclosure Document (FDD), transformed and improved the way he saw and ran his business. Working with Roy in formalizing policies and procedures, building out a business and growth plan, defining KPIs and revenue targets, and all the other elements needed for the FDD and SETS franchise system made SETS more efficient and agile and helped Anthony transform his conceptual goals into concrete, achievable plans.

“Even if we never launched our franchising plans, just the exercise of putting them together and working closely with Roy throughout the process made me a better business owner and made SETS a stronger company,” Anthony said.

Of course, those franchising plans came to fruition. In January 2023, SETS’ Old Bridge location became its first franchise, with its long-time manager becoming its first franchisee. The second franchised location in Barnegat, New Jersey, came online in March 2023. SETS is now expanding beyond the Garden State, with a new franchise soon to open in Murfreesboro, Tennessee, and plans for a location in South Carolina.

Anthony says that Roy’s business advice and legal counsel was invaluable to SETS’ success and that working with him was both enlightening and enjoyable.

“I knew I could call Roy anytime with a question or concern, and he would have my back. I continue to look to him for advice and feel like I have a true partner on this journey,” Anthony said.

Joshua S. Bauchner Named a NJ Cannabis Insider 2023 Award Finalist

Ansell Grimm May 1, 2023

Ansell Grimm & Aaron is pleased to announce that Joshua S. Bauchner is a finalist for the NJ Cannabis Insider 2023 Awards! He has been nominated in the Excellence in Cannabis Law: Employment Lawyer category.

Voting is now open and can be done once per day through May 8, 2023. Please join us in supporting Josh by submitting as many votes as possible for him. Click here to cast your vote.

As head of the Controlled Substances and Regulatory Law Practice Group, Josh co-hosted on behalf of the Firm the first-ever Cannabis Symposium in New Jersey which drew nearly a thousand people (two other Symposia followed). He is co-chair of the New Jersey State Bar Association Cannabis Law Committee, a member of the NORML Legal Committee and Amicus Committee, has spoken at the Cannabis World Congress and Business Expo at the Jacob Javits Center, and has presented CLE’s on cannabis at the NY and NJ State Bar Associations, among other fora across the country. He also was honored with the New Jersey Law Journal’s Innovator of the Year Award for his work in the cannabis space and also publishes regularly on the topic.

The attorneys in the group understand the complex laws related to the production, sale, use, regulation, and legalization of controlled substances, including hemp, cannabis, and psychedelics. A multifaceted area of the law with conflicting regulations from different governing bodies, we help our clients navigate all aspects of this emerging field.

Rick Brodsky Represents Seller in $8.4M Monmouth County Parks System Acquisition

Ansell Grimm April 21, 2023

The Monmouth County Parks System just got a beautiful new view of the Navesink River, thanks to the help of Ansell Grimm & Aaron’s Rick Brodsky.

Stretched along the bank of the Navesink River is a largely undeveloped 17-acre waterfront estate, save for the existing residence and a pier extending into the river. The property has been privately owned for years, but the owners considered selling the prime land should the right buyer come along. While compensation for their property was important, the planned future use of the property when sold was equally crucial to the owners. They wanted to ensure the property’s legacy by maintaining its natural state while opening it for the public to enjoy. The owners turned to Rick Brodsky to help make their dreams come true.

Brodsky, who practices commercial and residential real estate law, began working with the owners several years ago to find a buyer to meet all their goals. As luck would have it, the county of Monmouth approached the sellers to begin discussing its possible purchase of the land. Rick started working closely with the owners, Monmouth County, and the Monmouth Conservation Foundation to ensure a smooth and beneficial transaction for all parties.

“This was a complex deal that has been years in the making,” Brodsky said. “But in the end, we reached an agreement that satisfied all parties involved.”

The 17-acre waterfront estate is on the Navesink River in Locust, New Jersey. The property is adjacent to Historic Hartland Place and will connect to Hartshorne Woods, an 800-acre peninsula park, giving park visitors access to the river. Under the terms of the sales agreement, the land use will be restricted to park use and be open to the public.

“I am proud to be able to play a role in the creation of this new park,” Brodsky said. “I am always hesitant to say a deal is a win-win, but in this case, I think it truly is. It’s great for the sellers, the county parks, and the public.”

BANKRUPTCY DEPARTMENT UPDATE – FEBRUARY 2023

Ansell Grimm February 1, 2023

Led by Department Chair James G. Aaron, in coordination with partners Joshua S. Bauchner and Anthony J. D’Artiglio, Ansell’s attorneys are well versed in the intricacies of bankruptcy practice. Our bankruptcy attorneys are here to offer the knowledge and advice about the benefits and detriments of the different types of bankruptcy; Chapter 11, Chapter 13, and Chapter 7 proceedings, all of which should be considered prior to any individual or business filing for bankruptcy. Before filing, our attorneys will provide a complete analysis of our client’s assets and guide them through the establishment of an asset protection plan.

The Firm represents numerous national and state banking institutions, Fortune 500 companies, and many local corporate entities in restructuring corporate debt, and represents both creditors and debtors in all proceedings.

In particular, the Firm represents commercial landlords whose tenants file for bankruptcy. The landlord becomes an estate creditor and has numerous, defined rights under the U.S. Bankruptcy Code. As set forth below, Ansell recently experienced significant success on behalf of our landlord/creditor clients protecting their interest in realty and securing against abuse of the bankruptcy process by recalcitrant debtors.

The firm also handles state court insolvency matters, an alternative to federal bankruptcy, known as an assignment for the benefit of creditors (“ABC”). Similar to a Chapter 7 liquidation proceeding, an ABC permits a debtor to assign its claims to an assignee — here, an attorney with the Firm appointed by the Court — to pursue preferential and fraudulent claims under state law.

By example, here are some of the Firm’s recent successes in this practice area:

Recovery for Landlord in Debtor’s Attempt to Escape Obligations

Partner Anthony J. D’Artiglio and Shareholder and department co-chair Joshua S. Bauchner recently secured a favorable decision from the Bankruptcy Court in the Southern District of New York in the Fairway Group Holdings Corp. matter. Our client, Debtor’s property owner, filed a multi-million-dollar cure objection asserting that Debtor had failed to repair and maintain the property in accord with its lease obligations, and thus needed to make the necessary repairs or pay for the repairs as part of the lease assumption and assignment. Debtor sought to dismiss the cure objection, arguing that the new tenant was responsible for all pre-assignment defects as part of the lease’s ongoing repair and maintenance obligations and that, because property owner did not issue a default notice pre-petition pursuant to a lease provision, property owner could not claim that a “default” existed requiring cure pursuant to the Bankruptcy Code. The Court resoundingly rejected Debtor’s arguments, holding that (i) Debtor is responsible for all necessary pre-assignment repairs pursuant to the lease because the buyer took the property “free and clear” of any and all defaults by Debtor at the time of the assignment, and (ii) landlord was not required to formally notice a “default” under the lease to seek the cost of repairs from Debtor for any pre-assignment condition in need of repair particular where, as here, Debtor was on notice upon the filing of the cure objection. As a result of this favorable ruling, our client can recover millions of dollars in repair costs.

Conversion to a Chapter 7 and Vacature of Extension of Automatic Stay

The Firm successfully compelled conversion of a meritless Chapter 11 to a Chapter 7 proceeding and convinced the Court to vacate an extension of the automatic stay to the principal’s of the Debtor company. Debtor filed a Chapter 11 petition in the District of New Jersey just before it and its principals were scheduled to face trial in the Western District of Missouri on multi-million dollar fraudulent scheme related to the sale of a business. Led by Joshua S Bauchner and Anthony J. D’Artiglio, the firm successfully convinced the Court to vacate an extension of the automatic stay to the principals of Debtor who sought to utilize the Bankruptcy to shield themselves from liability. Furthermore, we vigorously opposed confirmation of a meritless Plan of Reorganization, culminating in Debtor voluntarily converting its Chapter 11 reorganization to a Chapter 7 liquidation requiring the appointment of a Trustee to pursue our client’s and other creditors’ interests. As a result, the adversary complaint and related Bankruptcy matters were dismissed in New Jersey permitting the action to proceed to trial in Missouri.

Protection for Landlord from Tenant Bankruptcy

Partner Anthony J. D’Artiglio and Shareholder Joshua S. Bauchner secured an extremely favorable settlement on behalf of a property owner whose tenant filed for bankruptcy after failing to make any rent payments over a prolonged period. Following our filing of an application to compel lease rejection or for relief from the automatic stay, the tenant agreed to pay outstanding rent and additional rent, our client’s attorneys’ fees and costs, and to increase the security deposit as a condition of assumption of the lease, ensuring the property owner was not harmed by the tenant’s bankruptcy filing.

Relief for Landlord from Automatic Bankruptcy Stay

Partner Anthony J. D’Artiglio and Shareholder Joshua S. Bauchner successfully secured relief from the automatic bankruptcy stay for a landlord whose tenant had sublet the property without authorization, failed to pay substantial rent, and additional rent due and owing. We successfully convinced the Court to order the tenant to make post-petition payments on an ongoing basis and to lift the automatic stay to permit the property owner to pursue the tenant for damages and eviction in State Court while the bankruptcy remained pending.

For additional information concerning Ansell’s Bankruptcy Department, please contact us at (973) 247-9000, or email James G. Aaron ([email protected]), Joshua S. Bauchner ([email protected]), or Anthony J. D’Artiglio ([email protected]).

About Ansell Grimm & Aaron, PC
Ansell Grimm & Aaron, PC was founded in 1929 and has a long history of delivering for clients who come to us to resolve legal matters that are often urgent, stressful, and of great importance. A general practice law firm, Ansell Grimm & Aaron is powered by experienced attorneys who understand that the best outcome is the one that serves the needs of each client.

The above is for informational purposes only and does not constitute legal advice. Transmission of the materials and information contained herein is not intended to create, and receipt thereof does not constitute the formation of, an attorney-client relationship. Attorney advertising.

Ansell Clients Secure Cannabis Licenses

Ansell Grimm October 28, 2022

Ansell Grimm & Aaron, PC is proud to congratulate its clients for securing cannabis licenses from the NJ Cannabis Regulatory Commission at the October 27, 2022 meeting:

DMW Holdings, LLC – Manufacturing License
Arbory Wellness, LLC – Dispensary License
Canopy Crossroad – Dispensary License

Ansell Grimm & Aaron, PC October 2022 Cannabis Law Update

Ansell Grimm October 18, 2022

Joshua S. Bauchner flanked by his Ansell Grimm & Aaron PC colleagues, as he was recently honored as one of the “Innovators of the Year” by the New Jersey Law Journal. — Joshua S. Bauchner, center, flanked by his Ansell Grimm & Aaron PC colleagues, was recently honored by the New Jersey Law Journal as one of its “Innovators of the Year” for 2022. Bauchner is a leading voice in the legal cannabis community, aiding clients in navigating state regulations to find success in the growing cannabis marketplace.

CRC Issues Guidance On WIRES; Raises More Questions Than Answers

On September 9, 2022, the Cannabis Regulatory Commission (CRC) issued long-awaited guidance regarding workplace impairment arising from cannabis use. While the guidance does not address all the issues that employers have faced in recent years, it does provide some needed clarity.

By way of background, on February 22, 2021, Governor Murphy signed the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) into law. In addition to legalizing the use of marijuana for anyone aged 21 and over, CREAMMA prohibited employers from taking adverse employment action against an employee, such as termination, solely “due to the presence of cannabinoid metabolites in the employee’s bodily fluid.” In other words, under CREAMMA, a positive drug test result for marijuana is insufficient for an employer to conclude that an employee is impaired and to take disciplinary action. Instead, CREAMMA requires the employer to use a Workplace Impairment Recognition Expert (“WIRE”) to conduct “a physical evaluation in order to determine an employee’s state of impairment.”

However, CREAMMA did not establish what credentials, experience, or training a WIRE would need and instead directed the CRC to design and implement a certification process. After much delay, the CRC finally published some guidance to assist employers. While the new guidance does not formulate and approve standards for WIRE certification, it does state that a positive drug test result combined with “evidence-based documentation of physical signs or other evidence of impairment during an employee’s prescribed work hours may be sufficient to support an adverse employment action.”

While WIRE certification is unavailable, the CRC recommends that employers “[d]esignate an interim staff member to assist with making determinations of suspected cannabis use during an employee’s prescribed work hours.” The designated employee “[s]hould be sufficiently trained to determine impairment and qualified to complete [a] Reasonable Suspicion Observation Report [which is a form created by the CRC].”

The report should document “the behavior, physical signs, and evidence that support the employer’s determination that an employee is reasonably suspected of being under the influence during an employee’s prescribed work hours.” The CRC recommends that a second person in addition to the observer, such as a manager or supervisor, be involved as well. Employers should consider using “cognitive impairment test, a scientifically valid, objective, consistently repeatable, standardized automated test of an employee’s impairment, and/or an ocular scan, as physical signs or evidence to establish reasonable suspicion of cannabis use or impairment at work.”

Although this guidance is helpful in some respects, it still leaves employers with much uncertainty. The best course of action is for the CRC to adopt WIRE certification standards as soon as possible as the Legislature intended with the passage of CREAMMA.

Ansell Expands Cannabis Law Practice Group

The Firm added a number of new attorneys to the Practice Group to best serve clients in this multidisciplinary field. Kelsey Barber has taken the lead on applications, Irina Moin is assisting with corporate formation, structure, and governance, and Melanie Scroble and David Lang represent cannabis clients with commercial real estate needs, including leasing, site acquisition, and zoning. Rahool Patel also continues to represent clients in litigation matters, including the still ongoing (and successful) appeal of the 2018 Request for Applications, as well as challenges to municipalities for failing to employ objective criteria in awarding resolutions of support to prospective state applicants.

As a full-service law firm, Ansell attorneys are able to bring their collective experience and skills to serve every client need in this ever-growing, and ever-changing, area of the law.

Second Circuit Holds Classifying Cannabis As A Schedule I Narcotic Is Irrational; Does Nothing About It

According to a ruling recently handed down by the United States Court of Appeals for the Second Circuit, the federal government’s classification of cannabis as a Schedule I controlled substance without medical utility isn’t unconstitutional, but it is “irrational.”

In the matter of United States of America v. Green, Nos. 19-997(L), 19-1027 (Con), __F.4th__ , 2022 WL 3903654 (2d Cir. Aug. 31, 2022), defendants were charged by the United States District Court for the Western District of New York with conspiracy to possess with intent to distribute 100 kilograms or more of marijuana, in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(B) and 846. Defendants filed a motion to dismiss the narcotics conspiracy count on the grounds that the classification of marijuana under Schedule I of the Controlled Substances Act violates their Fifth Amendment due process and equal protection rights, and that marijuana’s scheduling has no rational basis because it does not meet the statutory criteria for inclusion on Schedule I. The District Court therein denied defendants’ motion, finding they incorrectly sought to tether the rational basis inquiry to the statutory criteria.

On appeal the U.S. Court of Appeals for the Second Circuit affirmed the lower court’s decision, determining:

“[T]he Act’s scheduling criteria are largely irrelevant to our constitutional review because the rational basis test asks only whether Congress could have any conceivable basis for including marijuana on the strictest schedule. Because there are other plausible considerations that could have motivated Congress’s scheduling of marijuana, we conclude that its classification does not violate the [plaintiffs’] due process or equal protection rights.

While the Judges acknowledged that defendants “convincingly argued that it is irrational for the government to maintain that marijuana has no accepted medical use,” they ruled that defendants were required to “do more than show that the legislature’s stated assumptions are irrational; [they] must discredit any conceivable basis which could be advanced to support the challenged provision, regardless of whether that basis has a foundation in the record, or actually motivated the legislature.”

While disheartening, the Second Circuit’s ruling is consistent with other federal courts’ refusal to strike Schedule I classification, reasoning instead that it is the responsibility of federal lawmakers, not federal courts to repeal the prohibition on marijuana.

Psilocybin May Be Next On The List Of Legalized Substances In NJ

In recent years, efforts to decriminalize and legalize the use of psilocybin (colloquially known as “hallucinogenic mushrooms”) for medical, recreational and scientific purposes has been advancing rapidly. In the State of New Jersey, the potential passage of the “Psilocybin Behavioral Health Access and Services Act” (the “Psilocybin Behavioral Act”), introduced by Senate President, Nick Scutari in June of 2022 would see such legalization and sale of hallucinogenic mushrooms in New Jersey businesses and medical facilities, similar to the State’s recent success in recreational cannabis facilities.

If passed, the Psilocybin Behavioral Act would authorize the production of psilocybin for therapeutic use under a controlled environment, and decriminalize and expunge past convictions for certain psilocybin related conduct, including possession.

Although the Psilocybin Behavioral Act posits itself as mental health, rather than revenue generation for the State, it does take some inspiration from the current Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Act. Specifically, applicants will be eligible to pursue four different types of licenses, including, a psilocybin product manufacturer, psilocybin service center operator, psilocybin testing laboratory, and psilocybin service facilitator, as well as a psilocybin worker permit.

Ansell Launches Psychedelics Practice

On the heels of its successful cannabis practice, which has included numerous granted licenses for its clients as well as successes in Court litigating cannabis matters, the Firm is excited to announce it is expanding into the realm of psychedelics.

The Firm has an established record in the cannabis space enabling us to serve our clients unlike any other area law firm. By example, we co-hosted the first-ever Cannabis Symposium in New Jersey which drew nearly a thousand people (two other Symposia followed). Joshua S. Bauchner, head of the practice group, is co-chair of the New Jersey State Bar Association Cannabis Law Committee, has spoken at the Cannabis World Congress and Business Expo at the Jacob Javits Center, and has presented CLE’s on cannabis at the NY and NJ State Bar Associations, and at the NORML Legal Conference in Aspen, among other fora across the country.

The Firm also recently was honored by the New Jersey Cannabis Insider as one of three finalists for Excellence in Cannabis Law and has been covered by numerous media outlets and published on the topic.

Now, with the federal government and many states looking to legalize psychedelics, Ansell is expanding the practice to include this emerging area of law. Please contact us at (973) 247-9000 if you are interested in exploring opportunities.

Biden Administration Open to Health Department Role in Potential Use of Psychedelic Therapies

The Biden Administration’s Department of Health and Human Services is actively anticipating that the FDA will approve psychedelic therapies — using psilocybin and MDMA — in the next two years, leading the way for alternative mental health treatments on a federal level.

The plan was revealed in a document coined the “May letter,” a correspondence sent by Assistant Secretary for Substance Abuse and Mental Health Services Administration (SAMHSA), Miriam Delphin-Rittmon to Rep. Madeleine Dean, D-Pa.

Dean had contacted HHS and proposed an interagency task force to lead a public-private partnership to address issues associated with anticipated approval by the FDA of MDMA for the treatment of PTSD and psilocybin for depression “within approximately 24 months,” the letter notes.

Delphin-Rittmon responded:

“SAMHSA agrees that too many Americans are suffering from mental health and substance use issues, which have been exacerbated by the ongoing COVID-19 pandemic, and that we must explore the potential of psychedelic-assisted therapies to address this crisis.”

Delphin thereafter confirmed that SAMHSA was exploring the prospect of establishing a Federal Task Force to monitor and address the numerous complex issues associated with emerging substances including the private sector, and that “collaboration across federal agencies with outside stakeholders will be the most effective way to ensure we are thoughtfully coordinating work on emerging substances.”

The letter marks an about-face from decades of federal drug policy, which classified psychedelics like MDMA and psilocybin as Schedule I narcotics, with no currently accepted medical use and a high potential for abuse.

About the Cannabis Law Practice
Among the leading cannabis firms on the East Coast, we work with cannabis entrepreneurs, industrial hemp producers, ancillary businesses and governing bodies seeking regulatory counsel.

September 2022 Newsletter

Ansell Grimm September 26, 2022

Klein Helping Clients with Property Sales and Acquisitions Across the State

Jason S. Klein, Esq. (a) assisted a client in the acquisition of a 200-plus unit multifamily complex located in Morris County, through a membership interest purchase, which also included assistance with financing from a large regional bank and multiple 1031 exchanges; (b) assisted a client in the disposition of retail center on the boardwalk in Cape May county; (c) assisted a client in the sale and simultaneous disposition of a property in located on Route 22 in Somerset County; and (d) represented a client in the simultaneous acquisition of two retail properties in Monmouth County, from two (2) separate owners and assisted with negotiating and closing the acquisition financing in connection therewith with a large New Jersey-based bank.

Come See Us at the CAI Expo on October 20

The Community Association Practice Group will be exhibiting at the New Jersey Community Associations 2022 Annual Conference & Expo on October 20.
The 2022 CAI Conference & Expo will be held from 8:30 a.m. to 3 p.m. at The Event Center @ iPlay America located at 110 Schanck Road, Freehold, NJ.
CAI’s Annual Conference & Expo provides learning and networking opportunities for homeowners, managers, and business partners. Registration is free for all homeowners and community association managers and includes complimentary breakfast and lunch, educational programs, and multiple chances to win $1,000 during the show (must be present to win).
When you are at the expo, please visit us at Booth #823. You can also contact David J. Byrne, Esq. if you wish to set up a meeting with one of our attorneys while you are at the conference.

Brodsky Wins Approval for Projects Across Monmouth County

Zoning and Land Use Department co-chair Rick Brodsky, Esq. had a very productive summer winning approval for several projects before municipal boards throughout the county.

In June, the Shrewsbury Land Use Board voted unanimously to grant Use Variance and site plan approval, permitting the Applicant, Restore Hyper Wellness, to operate a health and wellness facility for customers seeking general wellness and anti-aging services and athletic recovery, including natural reduction of inflammation at 1079 Broad St. In July The Marlboro Township Zoning Board voted unanimously to grant variance and site plan approval permitting the Waitt Funeral Home to undertake significant renovations, upgrades and additions to its existing, long-standing building on Route 79.

Also in July, the Ocean Township Zoning Board, unanimously approved the application of Gold Coast Cadillac, granting site plan approval, with variances, permitting the renovation/expansion of the existing Cadillac car dealership on Route 35.

In August, the Long Branch Planning Board adopted the Resolution of Approval for its July unanimous decision to permit a four-lot Major subdivision application from Chelsea LLC.

Moin, Oliver, and Sherman Join Ansell Grimm & Aaron

Three new attorneys, Irina Moin, Esq., Jonathan Sherman, Esq., and Leigh Oliver, Esq., have joined the firm. Ms. Moin is licensed to practice in NY and NJ and will be joining both the Corporate Finance and Banking Department and Cannabis Law Department.

Ms. Oliver is a new associate in the Family Law practice and Mr. Sherman is working in the Commercial Real Estate Department.

Bauchner Receives New Jersey Law Journal Innovator of the Year Award, Appointed to NJSBA Foundation Committees

Joshua S. Bauchner, Esq. has been named one of the New Jersey Law Journal’s “Innovators of the Year” for 2022. Bauchner is one of just four attorneys in the state selected for the honor.

Bauchner also has been appointed by the New Jersey State Bar Foundation to the Publication Oversight Committee and the Editorial Advisory Board of the Respect Newsletter for 2022-23 by Foundation President Kathleen N. Fennelly, Esq.

The New Jersey State Bar Foundation is committed to the principle that public understanding of our legal system is essential to preserving the liberties that are fundamental to our democracy.

Shapiro and Barber Win Relief Against Prospective Buyer’s False Claim

Through, targeted discovery, Lawrence Shapiro, Esq. and Kelsey Barber, Esq. succeeded in having a contract buyer dismiss its complaint to enforce a contract of sale and discharge a Lis Pendens recorded against AGA’s client’s commercial property. Plaintiff Lebanon 123, LLC sought to compel Kullman Associates, LLC to sell real property known as the Kullman Corporate Campus in Lebanon, New Jersey for $13,500,000.

Kullman terminated the contract and refused to transfer title claiming that Plaintiff failed to meet its contractual obligations, including fully funding the deposit. Despite representations from the title company escrow agent that the deposit was received, AGA’s strategic discovery uncovered evidence that the deposit was never fully funded and, in fact, what had been funded was returned to Plaintiff, even before the suit was filed. AGA then moved for summary judgment and put Plaintiff on notice of their claims being frivolous which resulted in Plaintiff voluntarily dismissing its complaint and freeing the property for Kullman’s use and remarketing.

Bauchner to Moderate NJSBA Cannabis Law seminar

Joshua Bauchner, Esq. and Lisa Gora, Esq. of Epstein Becker & Green, PC will moderate a discussion on the latest developments in cannabis law at the New Jersey Law Center in New Brunswick, on October 26.

The topics covered in the seminar include:

Psychedelics — The New Cannabis
Cannabis in NJ Towns: Municipal and Local Applicant Perspectives
Diversity, Equity, and Inclusion

There will also be a Q & A session The event runs from 2-5 p.m. and a companion webcast will be available online. Attendees can receive Continuing Legal Education credit for NJ, PA, and NY. Information on the credits provided is available on the event registration page.

A happy hour will follow at the Law Center, after which the NJSBA Cannabis Law Committee, which Bauchner and Gora co-chair, will convene.

Court Case Corrects Planning Board Denial

Litigation Department co-chair Lawrence Shapiro, Esq. succeeded in overturning the Planning Board of the Borough of Rumson’s denial of an application to subdivide property into two developable lots.

In overcoming the Board’s decision on behalf of the applicant, Michael McCarty, Shapiro demonstrated that the Board had erred in siding with objecting neighbors in refusing to grant minimal variances of lot circle, front yard setback, and lot width/frontage.

Notably, the Court reversed the Board’s decision resulting in the approval of the subdivision, with variances, on behalf of the applicant. In doing so, the Court found the Board’s reasoning to be a “sham” for its desire to maintain larger lot sizes in the zone.

Rosenstein Wins Long Court Battle to Protect Client

Ansell Grimm & Aaron, PC was retained by a trucking and rigging company after one of its employees sustained substantial injuries on a jobsite. Despite the project being covered by an Owner Controlled Insurance Program (OCIP), the contractor that retained our client failed to notify our client of the OCIP and did not enroll our client in the program. Making matters worse, our client’s insurance brokers failed to identify and advise the client about an exclusion in its commercial general liability policy that contained an “Absolute Employee and Worker Injury and Liability Exclusion endorsement,” leaving our client vulnerable to the claims asserted in the action. While our client was shielded against direct liability from the plaintiffs, the employee filed an action against the other entities involved in the project — some of whom subsequently filed a third-party action against our client.

Seth Rosenstein, Esq. of AGA’s litigation practice group handled this matter, aggressively defending the action and adding the client’s insurance brokers as fourth-party defendants on the basis that but for their negligence, the client would not have been left without insurance coverage for third-party action claims. After over four years of litigation, our efforts resulted in an ideal settlement whereby our client did not contribute any funds to the settlement and received a global release from all parties involved.