Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: September 27, 2016
The Firm
201-896-4100 info@sh-law.comWhen the justices return to the bench for the October 2016 Term, they will consider a number of key commercial law issues. This post offers a brief summary of several business cases to watch that may interest New Jersey businesses.
In a case springing from Venezuela’s decision to nationalize its oil industry, the justices will consider how to interpret the Foreign Sovereign Immunities Act’s (FSIA) expropriation exception. It provides in pertinent part, “[a] foreign state shall not be immune … in any case … in which rights in property taken in violation of international law are in issue.”
The specific question before the Court is: “Whether the pleading standard for alleging that a case falls within the Foreign Sovereign Immunities Act’s expropriation exception is more demanding than the standard for pleading jurisdiction under the federal question statute, which allows a jurisdictional dismissal only if the federal claim is wholly insubstantial and frivolous.” Accordingly, the decision is expected to clarify when businesses may sue a foreign government in U.S. courts for seizing property located overseas but owned by a U.S. firm.
The Supreme Court will consider how to define the term “parcel as a whole” in a regulatory taking case. In Penn Central Transp. Co. v. New York City, 438 U.S. 104 (1978), the Court held that “in deciding whether a particular governmental action has effected a taking” the court should focus on “both on the character of the action and on the nature and extent of the interference with rights in the parcel as a whole…”
The lower courts are divided regarding whether the “parcel as a whole” concept created a rule that two legally distinct, but commonly owned contiguous parcels, must be combined for takings analysis purposes. The key issue in Murr — whether physically contiguous parcels that are owned by the same entity should be considered one parcel for purposes of a takings claim even if they are legally distinct — could have a significant impact on New Jersey developers.
The Court has agreed to consider federal court jurisdiction over mortgage disputes involving the Federal National Mortgage Association (“Fannie Mae”). The congressional charter of Fannie Mae grants it the power “to sue and to be sued, and to complain and to defend, in any court of competent jurisdiction, State or Federal.” The primary question before the Court is whether the phrase ‘to sue and be sued, and to complain and to defend, in any court of competent jurisdiction, State or Federal’ confers original jurisdiction over every case brought by or against Fannie Mae to the federal courts.
The case centers on the Bankruptcy Code’s order of priorities. Section 507 of the Bankruptcy Code grants payment priority to some unsecured claims, including claims for certain wages and employee benefits earned before the bankruptcy filing. These priority claims must be paid in full before other unsecured claims may be paid from estate assets. In this chapter 11 case, the debtor agreed to settle a cause of action belonging to the estate. Rather than distributing the settlement proceeds under a confirmed plan of reorganization, the debtor then sought a “structured dismissal” of the bankruptcy case.
The dismissal order provided that the settlement proceeds would be paid to general unsecured creditors, rather than to petitioners, former employees of the debtor whose claims have priority over those of general unsecured creditors under Section 507. The justices have agreed to address a circuit split regarding “whether a bankruptcy court may authorize the distribution of settlement proceeds in a manner that violates the statutory priority scheme.”
The closely-watched anti-trust case challenges the way major banks establish fees for ATM use. The Court has specifically agreed to settle a division among the federal circuit courts regarding “whether allegations that members of a business association agreed to adhere to the association’s rules and possess governance rights in the association, without more, are sufficient to plead the element of conspiracy in violation of Section 1 of the Sherman Act.”
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!