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.
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, like all M&A transactions, it is important to understand the legal nuances and proper due diligence in mergers and acquisitions. What Is a Short Form […]
Author: Dan Brecher
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
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!