Robert E. Levy
Partner
201-896-7163 rlevy@sh-law.comFirm Insights
NJ Federal Courts Will Run Out of Funding This Week
Author: Robert E. Levy
Date: October 16, 2013
Key Contacts
Back
Federal courts have been operating on fumes since the government shutdown began on October 1. This week, the reserve funding is scheduled to run out.
While the U.S. District Court for the District of New Jersey first projected that fee income and other resources would enable it to continue to function for ten days, further funding restrictions now will allow the courts to operate through Friday.
“The Judiciary has severely restricted spending during that period so that limited additional funding now exists,” the court said in an announcement “Spending rates and fund balances will continue to be monitored closely in hope that adequate funds may be available to allow courts to operate through the end of the work week — October 18.”
Even without funding, New York and New Jersey federal courts will not shut their doors. Under the Anti-Deficiency Act, certain “essential” government functions may continue in the absence of federal funding. The statute’s definition of “essential work” includes activities to support the exercise of Article III judicial powers under the U.S. Constitution, such as the resolution of cases. Accordingly, all criminal cases and most bankruptcy cases will likely proceed, while civil litigation will be delayed.
“The Constitution tells us what we have to do and we can’t control our workload. It walks in the door, whether we’re funded or not funded,” said U.S. District Court Chief Judge Loretta Preska in New York. She has ordered all civil cases except those already in trial on hold until further notice.
To keep the courts operating, “essential employees” will work without pay. In Southern District of New York, Judge Preska already signed an order that categorized all personnel as “essential.” Other federal courts in New York and New Jersey have yet to make an official decision.
If you have any questions about the government shutdown or would like to discuss how it may affect your business, please contact me, Robert Levy, or the Scarinci Hollenbeck attorney with whom you work.
- Practices: Litigation, Commercial Litigation - Business Litigation Attorney
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
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.