Family-run businesses are very common in the commercial world. In fact, according to recent studies, more than one-half of all U.S. companies are family operated. Think of mom and pop stores and Walmart. The stress of running a family business can ruin a relationship. One need only look at Nissim Kassab (“Nissim”) and Avraham Kasab (“Avraham” and together with Nissim the “Brothers”), brothers and owners of Mall 92-30 Associates LLC (“Mall”). The Brothers have been in litig

Virtual offices are all the rage nowadays. However, if you are admitted to practice in New York State, but reside outside of New York State, a virtual office is insufficient to satisfy the requirements of section 470 of New York’s Judiciary Law, which provides: A person, regularly admitted to practice as an attorney and counsellor, in the courts of record of this state, whose office for the transaction of law business is within the state, may practice as such attorney or cou

On June 21, 2018, the United States Supreme Court resolved a split among the circuit courts over the constitutionality of administrative law judges (“ALJs”) appointed by the staff of the U.S. Securities and Exchange Commission (the “SEC” or the “Commission”). In Lucia v. U.S. Securities and Exchange Commission, the Court held that the appointment of the SEC’s ALJs by members of the Commission’s staff, rather than the Commission itself, violated the Appointments Clause of the

Traveling is an amazing way to see the world. New York is an amazing place in the world to see. As the global capital of fashion, art, finance, and more, it comes as no surprise that tourism has always accounted for a large amount of the state’s revenue. Individuals travel from all over the world to see the many things that New York has to offer. With all of the opportunity in New York and the amount of business conducted within the state, New York has become the second large

Given the spate of high-profile sexual harassment cases that have been reported in the media, employers must understand their rights and responsibilities under state and federal employment laws. In particular, business owners must establish policies and procedures that clarify relationships with employees. By enlisting the services of experienced attorneys, you can protect your business from civil lawsuits brought by employees -- here’s how. Employee Policies and Procedures R

The U.S. Supreme Court has agreed to hear the appeal of an investment banker barred from the securities industry in a case concerning the scope of investor protection laws. ( Here .) The high court will consider whether an individual who passed along false statements about a company’s financial condition can be found liable for engaging in securities fraud. In particular, the Court will consider whether the Securities Exchange Commission (SEC) can circumvent the requiremen

Dr. Grigory Rodchenkov, who was charged with libel for exposing the illegal doping scandal during the 2014 Sochi Olympics of Russian Olympic athletes, has now filed a motion to dismiss the charge, which his attorneys have portrayed as a ploy to find his whereabouts. “We have every confidence that this litigation was not started to vindicate the athlete, but to try to locate and identify Dr. Rodchenkov’s location,” said his attorney, Jim Walden. Rodchenkov has also filed a cou

On June 11, 2018, the United States Supreme Court held that the filing of a putative class action equitably tolls the limitations period for absent class members to file individual claims but does not toll the limitations period for the filing of a new class action involving the same or substantially the same claims. China Agritech, Inc. v. Resh , No. 17-432. ( Here .) Nearly 45 years ago, the Supreme Court decided American Pipe & Construction Co. v. Utah , 414 U.S. 538 (197

Not every case can be brought in the federal court system. Supreme Court Justice Antonin Scalia, in explaining the limited nature of federal court jurisdiction, stated that “ hey possess only that power authorized by the Constitution and statute, which is not to be expanded by judicial decree.” ( Kokkonen v. Guardian Life Insurance Company of America , 114 S.Ct. 1673, 1675 (1994) (citations omitted).) Stressing his point, Justice Scalia continued by pointing out that, “ t

This Blog has previously written about the difficulties plaintiffs often have distinguishing between direct and derivative claims. ( Here and here .) In today’s post, this Blog looks at Khan v. Garg , 2018 N.Y. Slip Op. 31061(U) (Sup. Ct. N.Y. County, May 30, 2018) ( here ). In Khan , the court dismissed a fraud claim because the plaintiff failed to demonstrate whether the claim belonged to the plaintiff or his company. A Brief Primer on the Applicable Rules Where the wrong

On May 8, 2018, the U.S. Government Accountability Office (GAO) issued recommendations for the purpose of increasing the effectiveness of paying whistleblowers to report illegal wildlife trafficking. Wildlife trafficking, one of the top-ranked illegal trades in the world, accounts for approximately $23 billion a year, with the United States as one of the greatest contributors. Animal Trafficking and the Push for Accountability According to the GAO report ( here ), trafficking

There are numerous situations in which the value of real estate becomes an issue in litigation – condemnation proceedings, tax certiorari proceedings and calculating deficiency judgments in foreclosure proceedings – to name a few. Sometimes, when the value of a particular property is at issue, a recent “arm’s length” sale of that same property provides the best assessment of its value. “Although value and price are not necessarily synonymous, the rule has evolved that the p

Is an entity providing pre-construction management services in anticipation of a construction project entitled to file a mechanic’s lien if not paid? While recognizing that there is a dearth of caselaw on this question, the court in Matter of Old Post Road Associates, LLC (Sup. Ct. Westchester Co. May 9, 2018), held that the answer is dependent on the specific nature of the pre-construction services provided. Old Post Road Associates, LLC (“Old Post” or “Petitioner”) owned

Margin abuse occurs when investment professionals take advantage of investors that do not entirely appreciate the risk associated with margin-based investments. In fact, these professionals have a duty to ensure that the investor understands the danger of such an account before entering into an investment agreement. Failure to meet this duty could result in legal liability. What Does Buying on Margin Mean? When you “buy on margin,” you are purchasing securities with (at leas

San Francisco-based Credit Karma, Inc. ("Credit Karma" or the "Company"), the rapidly growing financial services tech company, has been penalized by the Securities and Exchange Commission ("SEC") for regulatory violations related to its Employee Stock Ownership Plan ("ESOP"). The SEC alleged that the Company unlawfully offered securities to its employees and failed to provide them with timely financial statements and risk disclosures. A copy of the press release announcing t

When a complaint is served and filed, a defendant can respond to the pleading in many ways. For example, he/she can answer the complaint or file a motion to dismiss. If the defendant files an answer or the court denies the motion, discovery ensues. Sometimes, a party may conclude that the facts and law necessitate the filing of a motion for summary judgment, even before the close of discovery. Regardless of the timing, the moving party must establish their prima facie entitle

In the United States, support for legalizing marijuana has been growing. Thirty states and the District of Columbia have enacted legislation that legalize marijuana in some form. Eight states and the District of Columbia allow recreational use of marijuana. According to a 2017 Gallup Poll, 64% of Americans support legalizing marijuana for recreational use. With marijuana becoming more accepted, the cannabis industry has grown. Many of the companies fueling this growth are pu

Litigation of residential mortgage foreclosure actions in New York remains prevalent at the trial and appellate court levels. Issues related to residential mortgage foreclosure are frequently treated in this Blog. ( Here , here , here , here and here .) It is not uncommon for an individual faced with the prospect of losing a home to foreclosure, to file a bankruptcy petition on the eve of a foreclosure sale in an effort to stop the sale. Section 362 of the Bankruptcy Code