Practice Areas

LITIGATION DEPARTMENT REVIEW – 2022

Ansell Grimm December 21, 2022

The Ansell Grimm & Aaron (AGA) Litigation Department handled a wide variety of complex commercial disputes throughout 2022. Below we highlight several of the team’s successes.

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.

Summary Judgment Benefitting Child’s Trust

The firm was retained by a single mother seeking to enforce a decade-old settlement agreement against her child’s wealthy father, who failed to pay substantial sums into trust for their daughter. Following lengthy litigation, including extensive motion practice and discovery, Senior Associate Seth M. Rosenstein secured summary judgment in favor of the child, ensuring that nearly $1 million in improperly withheld funds are paid into a trust to be established for her benefit. The court also awarded all costs and fees associated with establishing the trust for the child. This notable outcome ensures that the subject child is well provided for and finally has access to funds that should have been made available for her benefit many years prior.

Summary Judgement Secured in Convoluted Fraudulent Mortgage Matter

Spearheaded by Litigation Department co-chair Lawrence H. Shapiro and Attorney Layne A. Feldman, AGA was successful in obtaining summary judgment on behalf of its client in a convoluted litigation involving claims of fraudulent mortgages and satisfaction of mortgages. Stepping into the shoes of a prior counsel at the request of Plaintiffs and using the fact that the parties to the suit had attempted to litigate similar issues in prior lawsuits, AGA was able to demonstrate to the Court in 279 Veterans, LLC, et al. v. Village Green Associates, LLC, Docket No. MID-C-107-20, that preclusive doctrines applied and prevail on Plaintiffs’ declaratory judgment claim. The result of the Court’s ruling is that the Satisfaction of Mortgage filed by the Defendants will be removed from the chain of title of the property in question and is of no force and effect, preserving Plaintiffs’ Mortgage.

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.

FINRA Advisor Defense

Ansell Grimm & Aaron was retained by a long-established FINRA-licensed broker dealer and its principal, in connection with litigation filed against them in the Superior Court of New Jersey, alleging causes of action relating to investment banking services provided to a technology startup. After several years of litigation, this matter was referred by counsel to Seth M. Rosenstein and Joshua Bauchner of the firm’s litigation department, in light of Mr. Rosenstein’s extensive FINRA experience and both counsel’s success in litigating matters before the Superior Court. Rosenstein and Bauchner successfully filed a motion to stay the Superior Court action and compel FINRA arbitration — seeking to invoke an investment banking agreement (IBA) containing a FINRA arbitration clause, under which the plaintiff previously sought third-party beneficiary status. The court held that plaintiff was estopped from disavowing his claimed third-party beneficiary status under the IBA to avoid arbitration, and that the parties’ dispute must be heard before a FINRA arbitration panel, among other things. The court’s decision is a remarkable result for parties seeking to enforce arbitration agreements, and for ensuring that the learned professionals sitting on FINRA arbitration panels adjudicate industry disputes.

Relief Won Against Subcontractor’s Claims for Payment

Attorney Kelsey Barber, and Shareholder Lawrence H. Shapiro, successfully had a subcontractor’s claims against a client-property owner dismissed in a complex construction litigation. Plaintiff-subcontractor sought to recover monies for work performed at AGA’s client’s property when the property owner terminated the project’s general contractor. AGA was able to demonstrate to the Court that the property owner cannot be liable to a subcontractor for a general contractor’s default and that the Plaintiff’s claims for quasi-contractual relief were unfounded under New Jersey law. The Court granted Summary judgment as to all counts in AGA’s client’s favor.

Success for Youth Community Center

Partner Anthony J. D’Artiglio and Shareholder Lawrence H. Shapiro defeated a motion for summary judgment seeking to declare that our client’s, a youth community center and academic tutoring facility, use of their property rendered an easement agreement with a neighboring property owner extinguished. The neighboring property owner filed an action seeking to declare the easement expired and challenged the Zoning Board’s approval of a use variance and bulk variance relief. We successfully convinced the Court that the motion for summary judgment was premature and relied on a flawed reading of the easement agreement, leading to the complete denial of the motion. The neighboring property owner thereafter agreed to voluntarily withdraw its claims against our client, permitting the youth community center to continue to operate.

Synagogue May Proceed with Development

Partner Anthony J. D’Artiglio and Shareholder Lawrence H. Shapiro defeated an application to stay development activities pending prosecution of a prerogative writ permitting our client to continue development activities at the property. Plaintiffs asserted claims against our client, a synagogue, claiming that the planned development activities violated a settlement agreement and that the Zoning Board improperly approved the planned developed. Plaintiffs first filed an Order to Show Cause seeking to stay the Zoning Board from acting on our client’s application and to have their claims adjudicated in a summary manner. We opposed the Order to Show Cause, culminating in the Plaintiffs withdrawing the Order. Thereafter, Plaintiffs sought to stay our client from performing any activity at the property pending disposition of Plaintiffs challenge to the Zoning Board approval. We successfully convinced the Court that no stay was warranted leading to a total denial of the stay application, permitting our client to proceed in accordance with the approvals.

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.

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COMMERCIAL REAL ESTATE REVIEW – 2022

Ansell Grimm December 20, 2022

As the world began to recover from the coronavirus pandemic and various factors began to shift throughout the year as a result of an ever-changing economy, the attorneys in Ansell Grimm & Aaron’s Commercial Real Estate Department assisted the Firm’s clients in navigating the ups and downs of the real estate market. Led by co-chairs Michael V. Benedetto and David B. Zolotorofe, and assisted by attorneys Rick Brodsky, Jason S. Klein, Melanie J. Scroble, Carol J. Truss, Jonathan Sherman and David E. Lang, the department is pleased to share its numerous successes.

Over the course of the year, Shareholder Michael V. Benedetto, represented purchasers and sellers in acquisitions and sales throughout the East Coast, including, Michigan, Virginia, West Virginia, and South Carolina, with a specific emphasis on development sites throughout the State of New Jersey ranging from multifamily residential and residential development sites for 200+ lots, to warehouse distribution facilities and many asset classes in between.

In addition, Mr. Benedetto was lead counsel on many transactions involving existing properties, such as the acquisition of a 175,000 square foot multi-building office park in Camden County, as well as lead counsel to the Borrower on a bridge loan with mezzanine financing for a multifamily waterfront development project of more than 150 units still in the entitlement phase. In addition to his transactional work on development projects, Mr. Benedetto acted as lead counsel to multiple landlords on numerous retail leases, ranging from in-line tenants to anchor tenants, as well as pad sites. 2022 was an active year in the restaurant market where Mr. Benedetto continued to represent numerous restaurateurs and developers in the leasing, acquisition, and expansion of restaurants, as well as other transactional matters, often consulting on the development of new restaurants in multiple states.

Shareholder David B. Zolotorofe, along with Partner Melanie J. Scroble closed a 27-million-dollar line of credit financing transaction with Investors Bank secured by mortgage loans on thirteen triple-net properties located throughout the Northeast, from a Perkins in Winter Park, Florida to a Shaw’s Supermarket in Concord, New Hampshire.

Melanie J. Scroble closed over 100 million dollars in real estate transactions including sale lease backs with Rite Aid and Sonic, sales and acquisitions of Target, CVS and Walgreens locations throughout the country including such locations as Salt Lake City, Utah and New Orleans, Louisiana, the acquisition and financing of development property for a Wawa in the State of Virginia, the purchase and financing of a Ponce Bank location New York City and the purchase and sale of various multi-family apartment buildings located in the State of New Jersey. In connection with her client’s acquisitions, she closed loans with such national lenders as ConnectOne Bank, Provident Bank, OceanFirst Bank, Southside Bank, Centennial Bank and First National Bank of Pennsylvania. Ms. Scroble also served as local counsel for a national equity group in connection with an 83-million-dollar financing transaction for a future development in North Jersey.

Roy Hibberd, Of Counsel to the firm, represented the principal shareholders in a $60 million stock transaction which closed in early October. The company at issue manufactured clinical diagnostic solutions for autoimmune and infectious disease testing. The buyer was a European based leading provider of clinical protein electrophoresis equipment and reagents for the screening and monitoring of various diseases. Hibberd’s work included the review, negotiation and redrafting of the stock and merger agreements together with related indemnification agreements and employment contracts for the principals who will continue to run the New Jersey based company for the purchaser.

In November, Roy Hibberd, together with Shareholder Michael Benedetto and Attorney David Lang, represented the buyers in a multi-company purchase transaction involving a number of company-owned and franchised New Jersey retail restaurant businesses. In addition to the assets involved at each restaurant location, several parcels of real estate were acquired underlying a couple of the restaurants. The purchase also involved the franchise system which has been operating in New Jersey for over 50 years. In addition to reviewing all aspects of the franchise system and related trademarks and intellectual property, our AGA attorneys negotiated the asset and real property purchases and successfully closed the transaction.

Partner Carol J. Truss closed multi-million-dollar commercial mortgage loans with JP Morgan Chase and TD Bank for commercial property owners of mixed-use retail and warehouse properties. Ms. Truss also represented the seller and tenant in a sale and leaseback transaction in East Orange, for one of the properties that will be a part of the 500-million-dollar transit-oriented redevelopment project in East Orange known as the Crossings at Brick Church Station. There were multiple complications involved in this transaction, which was pending for over three years from the date of the initial contract to closing.

Another substantial transaction that Ms. Truss handled this year was the 35-million-dollar sale of an industrial property in South Plainfield, a transaction complicated by environmental issues and landlord/tenant matters. Ms. Truss also handled several substantial residential transactions, including IRS Section 1031 tax-free exchange transactions.

The Commercial Real Estate group regularly collaborates with the Corporate, Zoning and Land Use, and Controlled Substances & Regulatory Practice groups on the work they do for their clients. As a result of the successful work of the firm’s Controlled Substances & Regulatory Practice Group, 2022 has been an especially active year as the firm’s clients begin to receive their cannabis licensing and prepare to start opening for business. Partner Melanie J. Scroble, along with associates, Jon Sherman and David Lang, have been working with both landlords and tenants in securing leasing for the retail sale of cannabis throughout the State of New Jersey, including a potential new location in the City of Paterson.

Ansell Grimm & Aaron Welcomes Scott Jacobsen

Ansell Grimm October 28, 2022

We are pleased to welcome Scott R. Jacobsen, Esq. as an associate at Ansell Grimm & Aaron PC. Scott comes to Ansell Grimm from an established New York firm where he focused on securities class action litigation and other complex litigation, including the investigation of corporate books and records to evaluate potential claims on behalf of shareholders.
Previously, Mr. Jacobsen interned with the Office of the Inspector General for the U.S. Department of Health and Human Services and with the American Civil Liberties Union of Virginia before graduating from William & Mary Law School.

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.

NJSBA to Honor Judge Mellaci

Ansell Grimm July 15, 2022

The Honorable Anthony J. Mellaci, Jr., retired Superior Court Judge, currently serving as Of Counsel with Ansell Grimm & Aaron will be honored by the New Jersey State Bar Association as Monmouth County’s Daniel J. O’Hern Professionalism Award winner.

The O’Hern Award is presented annually to an attorney who is a well-respected member of the legal community and exhibits integrity, competence, high ethical standards, career achievement and service to the bar and/or community. The award is named for the Honorable Daniel J. O’Hern, a retired associate justice of the New Jersey Supreme Court, and lifelong Monmouth County resident, who was an advisor to the Commission from its inception in 1996 until his passing in 2009.

Judge Mellaci is slated to receive the award at the NJSB’s July 19 luncheon at the Forsgate Country Club, Monroe.

David J. Byrne to Present at CAI Webinar on April 20

Ansell Grimm April 13, 2022

David J. Byrne Esq., Chair of Ansell Grimm & Aaron’s Community Association Law Group, will be a featured presenter at the Community Associations Institute of New Jersey’s Wednesday, April 20th, Webinar.

The one-hour webinars focus on important issues affecting the rights, operations, and business of common interest communities. Mr. Byrne’s presentation, on April 20^th, will focus on the rights of — and strategies available to — community associations facing the demands of owners and/or residents who claim to be disabled, including those who seek accommodations with respect to animals characterized as service or emotional support

Registration is free and currently open for all CAI-NJ members via the CAI-NJ website. Community association managers will receive 1 CEU credit for attending.

Ansell Grimm & Aaron welcomes Carol J. Truss

Ansell Grimm April 4, 2022

We are pleased to announce that Carol J. Truss has joined the firm.

“Carol is a great addition to the AGA Commercial Real Estate Department,” Ansell Grimm & Aaron PC Managing Partner Michael V. Benedetto said. “She brings vast experience as a counselor, as well as tremendous respect from the Bench and Bar.”

Her practice is concentrated in the areas of real estate law, including commercial and residential title transfers and refinances, commercial leasing, and residential and commercial property management matters. Ms. Truss also handles the purchase and sale of small businesses and the general representation of such businesses.

Ms. Truss is an active member of the Monmouth Bar Association (MBA), and has served in several leadership roles for the MBA, including President, Trustee, and Chair of the Real Estate and Land Development Committee.

NJ Medical Pot Hopefuls Say Agency Snubbed Court Ruling

Ansell Grimm February 23, 2022

Law360 recently reported on Ansell Grimm & Aaron, PC’s challenge to the New Jersey Cannabis Regulatory Commission’s decisions on remand after the Commission’s initial decisions were reversed by the Appellate Division on November 25, 2020. Below is the article.

By Sarah Jarvis

Medical marijuana permit applicants have urged a New Jersey appellate court to direct the state’s cannabis regulators to award them licenses to operate facilities, arguing the agency failed to change a single score after an appellate panel remanded the matter over the state’s flawed scoring system.

In Wednesday filings with the Superior Court of New Jersey’s Appellate Division, applicant GGB New Jersey LLC said the state’s Cannabis Regulatory Commission doubled down on previous flawed scoring and didn’t adjust any scores after GGB and other applicants made “comprehensive supplemental submissions” challenging the commission’s scores and their scoring process. The CRC also ignored concerns previously raised by the appellate court about a substantial degree of relative error “by declaring the concept inapplicable to its selection process,” GGB said.

“The commission asserted that the scoring is what it says it is and, strikingly, is beyond judicial review,” GGB said. “The commission’s cursory review also focused on only two of the numerous scoring criteria challenged by appellants, and either rehashed the same arguments that had already been rejected by this court or ignored appellants’ other arguments.”

GGB and the other appellants are seeking an order directing the CRC to award them licenses to operate alternative treatment centers, or medical marijuana dispensaries. Alternatively, they want the matter remanded to the CRC with the appointment of a special master to conduct an investigation, per the company’s filings.

Counsel for GGB called the CRC’s ruling on remand ridiculous and said the company coordinated with other appellants to file nearly identical briefs, but it wasn’t immediately clear Friday which parties had also lodged filings.

The companies had alleged in their initial appeal that the scoring process was inconsistent and arbitrary. The applications were scored on a 1000-point scale by a panel of six unnamed officials from the Department of Health and two other state departments, according to court records.

The appealing companies that received their scores after they were rejected found that the scores were hard to parse, with some judges giving full marks in sections where another judge gave zero points. The numbers were averaged, and the total score determined where the applicant fell in the ranking, so the zeroes brought the scores down dramatically, the companies said.

Once a score was awarded, there was no opportunity to challenge it, according to the companies.

In November 2020, a panel from the Superior Court of New Jersey’s Appellate Division handed down its decision in eight combined appeals from companies that failed to make the cut for the six dispensary licenses the state awarded in 2018. The panel said there were serious problems with the way regulators scored the applications and sent officials back to reconsider the applications of rejected companies, but didn’t specifically tell regulators how to handle the applications after the remand or how to change the application process.

But GGB argued Wednesday that the CRC carried out “a superficial exercise seeking only to justify its own prior, flawed conclusions without actually abiding by the court’s instructions or addressing any of the appellants’ concerns.” Last month, the CRC issued new final agency decisions reaffirming the denials issued to the appellants in the 2018 decisions.

“Despite this court’s opinion and the supplemental submissions, the commission concluded that the process this court found unacceptable had been free from error,” GGB said. “As a result, the commission continues to deprive appellants of due process and neither the public nor this court can have confidence in the commission’s licensing process and the final agency decisions it has reached.”

GGB argued among other things that a recommendation report issued last month by the CRC lacks substantive analysis of the scoring issues the appellants had raised, including “wildly divergent scores and/or zero or low scores” the appellants said were unwarranted compared to the high marks successful applicants received.

“This court should not have to act again in this matter, but the commission has proven that it cannot — and will not — conduct a full and fair review of appellants’ applications,” GGB said. “The commission has proven by its own actions that a further remand will be futile because the agency apparently regards itself as beyond the jurisdiction of this court.”

A representative of the CRC didn’t immediately respond to a request for comment Friday.

GGB New Jersey LLC is represented by Joshua S. Bauchner and Rahool Patel of Ansell Grimm & Aaron PC.

Counsel information for the CRC and other applicants wasn’t immediately available Friday.

The case is In the Matter of Application of Medicinal Marijuana Alternative Treatment Center of GGB New Jersey LLC, case number A-2219-18T4, in the Superior Court of New Jersey, Appellate Division.

–Editing by Dave Trumbore.

Ansell Grimm & Aaron 2021 Litigation Roundup

Ansell Grimm January 20, 2022

As the world continues to struggle with the coronavirus pandemic, and millions of small and mid-sized businesses continue to be confronted with unprecedented challenges, the attorneys in Ansell Grimm & Aaron’s Litigation Department assisted the Firm’s clients in protecting their businesses and livelihoods. Led by co-chairs Lawrence Shapiro and Joshua Bauchner, and assisted by attorneys Barry Capp, Anthony D’Artiglio, Stefan Erwin, Rahool Patel, Seth Rosenstein, and Ashley Whitney, the Department is pleased to share its numerous successes.

Bankruptcy Litigation & Debtor/Creditor Matters

Ansell Grimm & Aaron successfully compelled conversion of a meritless Chapter 11 Bankruptcy to a Chapter 7 and convinced the Court to vacate an extension of the automatic stay to 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.

Breach of Contract Litigation

The Ansell Grimm & Aaron team continued its efforts to recover sums owed to its clients in connection with finance agreements and contracts for the provision of certain services. We doggedly pursued our clients’ counterparties who absconded with loaned funds and enjoyed the benefit of services rendered, resulting in substantial recoveries and settlements for our dedicated and hard-working clients. By way of example, in one action brought on behalf of a trucking insurance agency that guaranteed payments for its client, the insured failed to make millions of dollars in payments under its finance agreement and created a new entity to hide its property and assets from collection. We aggressively tracked down the fraudulently transferred assets, brought the insured’s owner and his new entity into the action, and secured a favorable settlement prior to trial.

Partnership Dispute Litigation

The firm successfully obtained temporary restraints enacted to avoid continued irreparable harm to our client in a derivative action asserting claims against our client’s former business partners for, inter alia, unfair competition, fraud, and breach of fiduciary duty, based on their acts of engaging in direct competition with their shared business and allowing their family members to use the company’s proprietary information to siphon clients and profits from the business. The temporary restraints prevented all competition with our client’s business and provided the leverage necessary to negotiate a dissolution of the business which allowed our client to extricate himself and pursue independent ventures.

Real Estate Litigation

The firm works closely with real estate professionals across the region to protect their rights and put practices in place to minimize potential liability. In an action filed earlier this year on behalf of a Hudson County-based real estate broker, the Firm sued a national real estate developer after the failure to pay a referral fee offered under the developer’s agreement with local brokers. These efforts resulted in our client recovering a substantial portion of the referral fee owed to it, and the same broker subsequently engaged our team to revise their agreements used with clients — and to speak with the broker’s team of agents about mitigating risk and general best practices.

FINRA Matters

In addition to serving as a Financial Industry Resolution Authority (FINRA) Dispute Resolution Services arbitrator, associate Seth Rosenstein also practices before FINRA arbitration panels. In an arbitration filed against a national broker-dealer, the Firm sought an award requiring removal of incorrect and misleading information set forth on the broker-dealer’s Form U5 issued for our client, and for the expungement and removal of the information from FINRA’s Central Registration Depository and BrokerCheck system. Our efforts resulted in the broker-dealer issuing an amended Form U5 that removed the incorrect and misleading information, correcting an injustice that falsely besmirched our client’s reputation.

Police Benevolent Association Matters

Earlier this year, Attorney Ashley V. Whitney filed an appeal with the New Jersey Supreme Court challenging an opinion from the Appellate Division which upheld the termination of a police officer with no prior discipline for alleged violations of the Criminal Justice Information System through his use of full-disclosure vehicle registration searches despite the police department’s failure to identify a single full-disclosure search conducted without justification. The Appellate Division’s decision may have a lasting impact upon the law enforcement community as the performance of searches by police has not been significantly addressed by New Jersey Courts since the decision in State v. Donis, 157 N.J. 44 (1998). The decision is especially pertinent to the issues facing police as it comes on the heels of the Supreme Court’s decision in the matter of In re AG Law Enf’t Directive Nos. 2020-5 & 2020-6, 2021 N.J. LEXIS 486 (June 7, 2021), which upheld the New Jersey Attorney General’s Directives requiring the release of the names of police officers who receive major discipline.

Ms. Whitney continued her prior practice of the representation of police officers as a member of the PBA Legal Protection Plan at the Firm’s Woodland Park office, which included the defense of a high-ranking correctional police officer served with inflated disciplinary charges seeking termination. Following a departmental hearing and the presentation of favorable witness testimony, the employer decreased the proposed penalty from termination to suspension and we are awaiting a final decision.

Class Action Litigation

Ansell Grimm & Aaron successfully obtained dismissal of a nationwide class action in the District of New Jersey for lack of subject matter jurisdiction. Plaintiff brought claims against related to beauty products against the seller, shipper, and a host of individuals and entities. We filed a Motion to Dismiss pursuant to Federal Rule 12(b)(1) asserting the Court lacks subject matter jurisdiction as a result of a pre-litigation, full refund offer by our client to the aggrieved consumer. The Court agreed that the full refund offer made in the ordinary course of business operated to moot Plaintiff’s claims, and dismissed the entire action.

Public Entity Litigation

Ansell Grimm & Aaron successfully secured summary against Plaintiff on a multi-million dollar claim against the City of Bayonne, wherein Plaintiff alleged that Bayonne discriminated against him when it condemned and subsequently demolished a rental property he owned because it was unsafe. We successfully convinced the Court that the claims were barred by the statute of limitations, that the demolition did not constitute a taking within the meaning of 11 U.S.C. 1983, and that Plaintiff’s tort claims could not be asserted against a municipality as a matter of law, leading to dismissal of the entire case.

Ansell Grimm & Aaron Welcomes Lateral Hire to Woodland Park Office

We are pleased to announce Stefan J. Erwin, Esq. has joined Ansell Grimm & Aaron. Mr. Erwin is a Trial Attorney who came to Ansell from an established Newark practice where he represented the largest cities in New Jersey. Mr. Erwin brings nearly a decade of experience to the firm specializing in complex commercial litigation, criminal defense, appellate practice, labor and employment law, public entity, and civil rights. Mr. Erwin graduated from Rutgers University with dual degrees in Political Science and Criminal Justice, and then attended Rutgers Law School where he interned for the Honorable Noel Hillman in the United States District Court for the District of New Jersey. After law school, he clerked for the Honorable James Hely, J.S.C. of the Superior Court Law Division in Union County. He has taught public school children a course in Constitutional Law, founded a local community garden, and sat on the board of a charter school. Mr. Erwin has received several favorable jury verdicts for his clients in the Public Defender’s Office where he litigated cases from inception through appeal.

Best of the Best

It is with great pleasure that Ansell Grimm & Aaron, PC has been named “Best of the Best” Law Firm in the 2021 Official Community Choice Awards published by the Asbury Park Press. This recognition is greatly appreciated as it was not determined by the Bar or another professional organization, but rather by the community we serve on a daily basis.

Stefan J. Erwin joins Ansell Grimm & Aaron

Ansell Grimm December 7, 2021

We are pleased to welcome Stefan J. Erwin, Esq. as an associate at Ansell Grimm & Aaron PC. Stefan is a trial attorney who came to Ansell Grimm from an established Newark practice where he represented the largest cities in New Jersey. Mr. Erwin brings nearly a decade of experience to the firm and focuses on Complex Civil Litigation, Electronic Discovery, Criminal, Appellate, Labor and Employment, Public Entity and Civil Rights work. Stefan graduated from Rutgers University with dual degrees in Political Science and Criminal Justice. He thereafter went to Rutgers Law School where he interned for the Honorable Noel Hillman in Camden’s Federal District Court. Before graduating Law school, he accepted a clerkship with the Honorable James Hely, J.S.C. of the Law Division in Union County. There, he also taught public school kids a course in Constitutional Law, founded a local community garden, and sat on the board of a charter school. Mr. Erwin has received several favorable jury verdicts for his clients in the Public Defender’s Office where he litigated cases from inception through appeal.