Author: Gibbons P.C.

New Amendments to New Jersey Court Rules Will Make Orders Denying Arbitration Immediately Appealable

The amended Rules Governing the Courts of the State of New Jersey will take effect on September 4, 2012. Among the more important amendments are those concerning a party’s ability to appeal an arbitration order. Typically, only final orders that conclude a litigation as to all parties and all issues are immediately appealable. But, as a result of amendments made in 2010, the current version of Rule 2:2-3(a) expands the notion of a final order in the context of orders compelling arbitration, providing that “an order compelling arbitration, whether the action is dismissed or stayed, shall also be deemed a final judgment of the Court for appeal purposes.” The New Jersey Supreme Court in GMAC v. Pittella, 205 N.J. 572 (2011), expanded that Rule still further by holding that “orders compelling or denying arbitration are deemed final and appealable as of right as of the date entered.” To implement that decision, Rule 2:2-3(a) has been amended to state that “any order either compelling arbitration, whether the action is dismissed or stayed, or denying arbitration shall also be deemed a final judgment of the Court for appeal purposes.” An amendment to Rule 2:9-1(a) will permit the Trial Court to retain jurisdiction, pending appeal, over other parties and claims that remain in that court.

Third Circuit Rules That Employers Need Not Accommodate Work Restrictions at End of FMLA Leave

Are employers required to provide reasonable accommodations to an employee to facilitate his or her return to the same or equivalent position at the conclusion of an FMLA leave? According to a recent decision from the Third Circuit Court of Appeals, the answer is no, provided the employee is unable to perform the essential functions of his job position. The case, Macfarlan v. Ivy Hill, provides important guidance for employers who must make such determinations upon an employee’s return from FMLA-protected leave.

United States District Court for the District of New Jersey Finds Franchisee’s Felony Conviction is Not a Valid Basis for Immediate Termination of a Franchise Agreement Under the New Jersey Franchise Practices Act When the Crime is Not “Directly Related to the Business Conducted Pursuant to the Franchise”

All franchisors and distributors should be aware of a June 27, 2012, decision in which the United States District Court for the District of New Jersey reaffirmed the New Jersey Franchise Practices Act’s (“FPA”) strong policy of protecting the rights of franchisees and limiting a franchisor’s ability to terminate a franchise agreement without first providing 60 days written notice — even in the face of a franchisee’s felony conviction — so long as that conviction is not “directly related to the business conducted pursuant to the Franchise.” In International House of Pancakes, LLC, et al. v. Parsippany Pancake House Inc., Civil Action No. 12-03307 (WJM) (MF), the District Court denied International House of Pancakes’ (“IHOP”) request for a preliminary injunction enforcing IHOP’s termination of Defendant Parsippany Pancake House, Inc.’s (“Pancake House”) franchise and prohibiting Pancake House from continued use of IHOP’s logos and other marks. IHOP terminated the franchise, effective immediately, after learning that Pancake House’s president and majority owner pleaded guilty to the crime of endangering the welfare of a minor, and admitted during his plea hearing to having engaged in sexual conduct with a minor, a felony. IHOP ended Pancake House’s franchise based upon language in the franchise agreement providing for immediate termination if the franchisee is convicted a felony. Pancake House countered that the...

“Shield Act” Introduced to Thwart NPEs . . . .

We previously reported on the new 35 U.S.C. § 299 of the America Invents Act. This statute aims, inter alia, to reduce the ability of a patent owner to join multiple, unrelated defendants in a single action, which is a tactic often employed by non-practicing entities (“NPEs”), sometimes referred to as “patent trolls,” who press defendants for nuisance value settlements.

“Did I Just Get a Tweet From Goldman Sachs?!?”: Increased Expansion and Scrutiny of Social Media in the Financial Services Industry

With the increased use of social media by financial services industry participants, more activity and scrutiny can be expected from financial regulators. This is not to mention the litigation from investors that could arise out of, for example, the misinterpreted or well-meaning post from an advisor that simply did not translate to “less than 140 characters.” It appears that there is a trend (amongst at least the larger financial institutions) that a united and pre-approved voice is best for now.

Dancer’s Facebook Messages With Opt-In Class Members are Protected Work Product

A group of exotic dancers in New York recently found themselves partially exposed — well, their Facebook messages, that is. A federal judge in In re Penthouse Executive Club Compensation Litigation, 10-CV1145 (KMW) (S.D.N.Y May 10, 2012) decided that one of the plaintiff-dancer’s Facebook communications with non-party-dancers about joining the lawsuit were not protected from disclosure, but that Facebook communications between the plaintiff-dancer and opt-in plaintiffs were protected from disclosure. The Court’s application of the well-established work product doctrine and common interest rule to social media communications reminds lawyers to exercise caution when using social media for discovery purposes and to warn their clients to similarly proceed with caution.

Implementation of USPTO Rules Under the AIA is Underway: Preissuance Submissions

35 U.S.C. § 122(e), adopted last fall as part of the Leahy-Smith America Invents Act (“AIA”), conditions third party submissions to the USPTO for consideration and inclusion in an application file. Recently, the USPTO published the final rules regulating these submissions by third parties: Changes to Implement the Preissuance Submissions by Third Parties Provision of the Leahy-Smith America Invents Act, 77 Fed. Reg. 42150 (2012). That is to say, the USPTO provided the requirements and guidance to anyone wishing to have the Office consider patents, published patent applications, or other printed publications of potential relevance during the examination of a pending application. The new rules pave the way for a third party to limit the scope of a pending patent application, particularly a competitor’s application, in a meaningful way.

Significant Amendments to New York’s SEQRA Regulations in the Works

On July 11, the New York State Department of Environmental Conservation (NYSDEC) released the draft scope for the Generic Environmental Impact Statement (GEIS) on proposed amendments to the regulations that implement the State Environmental Quality Review Act (SEQRA). These amendments, intended to streamline the SEQRA process, would create a number of significant changes to the regulations, the first changes since 1996.

New Jersey Ranked No. 2 for Biotechnology Strength

According to a press release from the Governor’s office, a recent review issued by Business Facilities magazine reported that New Jersey jumped eight positions to rank second for biotechnology strength among U.S. states. Some of the factors cited as responsible for this improvement include increases in R&D tax credits (from 50% to 100%) and the adoption of a new single sales factor formula for corporate tax liability, which will reduce company costs.

Gibbons Real Property & Environmental Department Adds David Freeman to the New York Office

David J. Freeman, formerly head of the Environmental Practice Group at the New York City office of Paul Hastings, has joined Gibbons P.C.’s New York office as a Director in the Real Property & Environmental Department. Mr. Freeman represents the buyers, sellers, and developers of properties in all environmental law areas including brownfields, due diligence, hazardous waste cleanups, and sustainability. He also litigates matters related to remediation, cost recovery, property damage, and exposure to toxic substances.