Gibbons Law Alert

Gibbons Law Alert Blog

NJ Appellate Division Announces Evidentiary Standards for Condemnations “Necessary” for a Redevelopment Project

On January 18, 2019

At what point is a piece of property “necessary” for a redevelopment project? On January 7, 2019, the New Jersey Appellate Division published a decision in Borough of Glassboro v. Jack Grossman, Matthew Roche, and Dan Desilvio, — N.J. Super. — (App. Div. 2019) (slip op. at 2) that – for the first time – clarifies the phrase “necessary for the redevelopment project” as stated in the Local Redevelopment and Housing Law (LRHL) at N.J.S.A. 40A:12A-8(c). The three-judge panel addressed the question of whether a showing of necessity is required by a condemning authority beyond the designation of the area as one in need of redevelopment, and, what showing it must make in order to condemn a parcel of land located with a redevelopment area. Existing case law required the taking to be “reasonably necessary,” but had never clarified what standards should be used to evaluate how necessary a given property might be to a given redevelopment project. This decision now requires that when a landowner within a redevelopment area contests the necessity of a condemnation, the condemning authority must articulate a definitive need to acquire the parcel for an identified redevelopment project. In Grossman, the defendants owned or were purchasing a parcel located within a redevelopment area in the Borough of Glassboro. The area...

2019 Rings in Further Protections for Delaware and Philadelphia Employees

by Christine A. Amalfe

Posted in Policies and Handbooks

On January 16, 2019

Before 2018 wrapped up, the year of the #MeToo movement, the Delaware and Philadelphia legislatures worked to ensure the passage of employee-friendly legislation. While Delaware’s new law focuses on sexual harassment, Philadelphia has turned its focus on the work schedules for those employed in service industries. Delaware, like many other states in 2018, passed legislation to strengthen workplace harassment laws. The legislation was signed into law in August 2018, and went into effect on January 1, 2019. Delaware’s Discrimination in Employment Act has now been amended to include provisions specifically dedicated to sexual harassment that apply to employers with at least four employees in the state. It should be noted that Delaware’s law includes unpaid interns, applicants, joint employees and apprentices within its definition of employee. In addition to defining sexual harassment, the law provides that employers will be liable for sexual harassment if: (1) A supervisor’s sexual harassment results in a negative employment action of an employee; (2) The employer knew or should have known of a non-supervisory employee’s sexual harassment of an employee and failed to take appropriate corrective measures; or (3) A negative employment action is taken against an employee in retaliation for the employee filing a discrimination charge, participating in an investigation of sexual harassment, or testifying in any proceeding or...

Plaintiffs Must Cast a Wide Net for Spill Act Claims

by Gibbons P.C.

Posted in Environmental and Green Issues

On January 14, 2019

The New Jersey Appellate Division has applied the doctrine of judicial estoppel to uphold the dismissal of a Spill Act contribution action on the grounds that the plaintiffs failed to seek contribution from all potentially responsible parties that were known (or reasonably knowable) in an earlier action. The court ruled that the application of judicial estoppel in the case before it was consistent with the Spill Act’s objective to cast a wide net over those responsible for hazardous substances and their discharge on the land and waters of the state. “Plaintiffs are precluded from floating a lazy cast toward one discharger and then shooting a second line toward others, seeking contribution for cleanup of the same property.” The plaintiffs in Terranova v. Gen. Elec. Pension Trust (Docket No. A-5699-16T3), owners of commercial property that had long been used as a gas station, brought this action in 2015. The defendants were owners/operators of the property from 1960 through 1980, during which time soil and groundwater at the property had allegedly been contaminated by three underground storage tanks. Of consequence to the court’s decision, the plaintiffs had previously filed an action in 2010 against two separate individuals that had operated the gas station from 1981 through 2008, but the plaintiffs had failed to assert claims against the current defendants...

New CAFC Decision Interpreting the Original Patent Requirement of 35 U.S.C. § 251 May Be Imminent

by Gibbons P.C.

Posted in Patent

On January 9, 2019

As intellectual property litigators who litigate reissue patents know, the Federal Circuit has not decided a case based on the original patent requirement of 35 U.S.C. § 251 since the 2014 Antares Pharma, Inc. v. Medac Pharma Inc. decision. 771 F.3d 1354 (Fed. Cir. 2014). In Antares Pharma, the court held that to comply with the original patent requirement, an invention claimed in a reissue patent must either be for: (i) the same invention disclosed in the original patent or (ii) a newly claimed invention “clearly and unequivocally” disclosed as a separate invention in the original patent. See id. at 1362. An appeal of a decision in Forum US, Inc. v. Flow Valve, LLC, Civ. No. 17-495-F (W.D. Ok.), Docket Entry 45, (CAFC Appeal No. 18-1765) invalidating certain claims pursuant to the original patent requirement is scheduled to be argued at the Federal Circuit on January 11, 2019 and may result in a new precedential decision applying the original patent requirement. In Forum US, the plaintiff sought a declaratory judgment that claims 14-20 of U.S. Reissue Patent 45,878 were invalid. The original patent related to the machining of pipe joints used in the oil and gas industry. Each of the 13 original patent claims required “a plurality of arbors.” The summary of the invention likewise referred to...

New Jersey Federal Court Holds that Cryptocurrency Allegations Sufficiently Alleged a “Security” Subject to ’33 Act Registration Requirements

by Christopher Walsh

Posted in Securities

On December 17, 2018

In Solis v. Latium Network, Inc., Susan D. Wigenton, a United States District Judge in the District of New Jersey, held that a class action plaintiff adequately alleged that a particular cryptocurrency was a “security” subject to the registration requirements of the Securities Act of 1933 and, by extension, the regulatory strictures of the Securities Exchange Act of 1934. Solis alleged that Latium operates a blockchain-based, crowdsource tasking platform, which allows users to create tasks, find people to complete the tasks, and then verify completion of the tasks according to specified standards. Users of the platform pay for the completed tasks using Latium X tokens, Latium’s proprietary cryptocurrency, which can be used only on Latium’s platform. Solis also alleged that, to raise money for the platform, Latium offered its tokens for sale to the public in exchange for U.S. dollars or the cryptocurrency Ether. The sale was conducted in several stages, with the cost of a token increasing with each successive stage. When marketing the tokens, Latium stressed the limited quantity of tokens to be issued and characterized its tasking platform, particularly in tandem with the tokens, as a “unique investment opportunity.” Solis purchased $25,000 in Latium X tokens and later sued Latium in a class action, alleging that the Latium X tokens are “securities”—specifically...

Recently Created USPTO Precedential Opinion Panel to Decide Joinder Issues in First Review

by Gibbons P.C.

Posted in Patent / USPTO

On December 14, 2018

In September, the United States Patent and Trademark Office (USPTO) revised its Standard Operating Procedures 2, addressing among other things, the new Precedential Opinion Panel and the processes the panel will follow during any review. The newly created panel recently accepted its first case where it will consider issues of party and subject matter joinder as part of a larger review of patentability of patents directed to fracking technology. Proppant Express Investments v. Oren Technologies, IPR2018-00914, Paper 24 (PTAB Dec. 3, 2018). This blog post will provide an overview of the Precedential Opinion Panel and the issues it will address in its first review. USPTO Standard Operating Procedures 2, “sets forth the composition of the Precedential Opinion Panel, describes the mechanisms for invoking Precedential Opinion Panel review of a Board decision recently issued in a pending case, and explains the Precedential Opinion Panel review process.” The panel will typically consist of the USPTO Director, the USPTO Commissioner for Patents, and the Chief Judge of the Patent Trial and Appeal Board (PTAB). The resulting decisions will be precedential and have binding authority. Under USPTO procedures, there are three ways to obtain a rehearing from the Precedential Opinion Panel: “The Director may convene a Precedential Opinion Panel to review a decision in a case and determine whether...

Here for the Holidays – New Jersey’s Tax Amnesty Program

by Michael D. DeLoreto

Posted in Regulatory Counseling and Departmental Action

On December 10, 2018

As a welcome end-of-year present for those with overdue taxes, New Jersey recently launched its tax amnesty program, which began on November 15, 2018 and will end on January 15, 2019. Tax amnesty is available only for State tax liabilities for tax returns due on or after February 1, 2009, and before September 1, 2017. The program offers a waiver of some penalties, Referral Cost Recovery Fees, or cost of collection fees and one-half of the balance of the interest that remains due as of November 1, 2018. My Gibbons colleagues, Peter J. Ulrich and Todd M. Kellert, wrote an article on the Tax Amnesty Program, which you can find here. If you have any questions, please contact us since the program is quickly coming to a close.

Gibbons to Exhibit at ICSC New York Deal Making Conference on Wednesday and Thursday

by Gibbons P.C.

Posted in Development/Redevelopment / Environmental and Green Issues / Real Estate / Transactional Real Estate and Leasing

On December 3, 2018

The Gibbons Real Property Department will once again exhibit at the International Council of Shopping Centers (ICSC) New York Deal Making Conference at the Jacob K. Javits Convention Center on December 5-6. Stop by our booth, #2411, and meet with some of the Department’s attorneys who will be attending (Click here to view the Deal Making floor plan). Show hours are Wednesday, December 5, from 8:00 am to 5:00 pm, and Thursday, December 6, from 8:00 am to 3:00 pm. We look forward to seeing you there!

Third Circuit Rejects Buyer’s Remorse as a Cognizable Injury Under Article III

by Gibbons P.C.

Posted in Class Action Defense

On November 20, 2018

In In Re: Johnson & Johnson Talcum Powder Products Marketing, Sales Practices and Products Liability Litigation, the United States Court of Appeals for the Third Circuit held that buyer’s remorse, without more, does not constitute an economic injury sufficient to establish standing under Article III of the United States Constitution. Plaintiff brought a putative class action against defendant Johnson & Johnson, alleging that perineal use of defendant’s baby powder by women could lead to an increased risk of ovarian cancer. Plaintiff did not allege that she had developed or was at an increased risk of developing ovarian cancer. Nor did she allege that the product was defective in performing the functions for which it was advertised. Furthermore, Plaintiff had used all the product and, thus, was not seeking reimbursement for a product she cannot use. Rather, Plaintiff alleged that she would not have bought the baby powder had she known that it could lead to an increased risk of cancer. The District Court of New Jersey dismissed her complaint for lack of Article III standing. The Third Circuit affirmed. It relied on its analyses in Finkelman v. Nat’l Football League and Cottrell v. Alcon Laboratories to determine that Plaintiff’s allegations were too conjectural to establish standing. It explained that, although a plaintiff need not allege the exact...

“Housing is Health Care”: New Jersey HMFA Launches Program for Supportive Housing Partnership with Hospitals

by Cameron W. MacLeod

Posted in Development/Redevelopment

On November 8, 2018

The New Jersey Housing and Mortgage Finance Agency (HMFA), in collaboration with the New Jersey Hospital Association, has announced a pilot subsidy program to promote investment by hospitals throughout New Jersey in affordable and supportive housing. The program was previously endorsed by the New Jersey Hospital Association’s Board of Trustees. Following a number of recent studies highlighting the interconnection between stable, safe, and affordable housing and maintaining a higher quality of life, HMFA created a partnership program for New Jersey’s hospitals and affordable housing developers to try and fill a notable void in supportive housing. Hospitals are encouraged to work with developers to target housing for special needs residents or users of frequent emergency room services. HMFA anticipates the projects would consist of 60-70 units and can include mixed-use space for doctors’ offices, clinics, or other community uses. Approximately ten of the units would be set aside for low-income households (50 percent of gross median income), and the remainder would be restricted to households of moderate income (80 percent of gross median income). The program, currently funded with $12 million, seeks to match funding contributions from hospitals up to $4 million to fund three or four projects in New Jersey. The program will include the four percent low-income housing tax credit as well. HMFA is seeking...