Recent Blog Posts

    • Stark & Stark Shareholder Wins $699,000 Verdict in Breach of Contract and Copyright Infringement Case
      Mon Cheri Bridals, Inc. v. Wen Wu et al, Civil Action No. 04-1739 (AET) Mon Cheri Bridals, a large wholesale manufacturer of wedding dresses and social occasion dresses, brought suit in U.S. District Court in Trenton, New Jersey against a competitor, Wen Wu and various companies he owned and controlled, alleging that Mr. Wu and his companies infringed on Mon Cheri’s copyrights in its dress designs, and breached a 1999 contract between the companies. The initial dispute arose in August of 1998 between Mon Cheri and Wu concerning dress designs. Mon Cheri discovered that Wu was marketing his dresses using photographs of more expensive versions that Mon Cheri manufactured and sold. Wu signed an affidavit swearing that he, and the other companies he owned and controlled, would not infringe upon Mon Cheri’s rights in the future. Mon Cheri later learned that Wu continued to sell dresses that infringed upon Mon Cheri’s copyright and trade dress rights.   The case went to ....
    • Recent Revisions to the Trademark Trial and Appeal Board Rules
      Martin P. Schrama and Melissa D. Doogan authored the article Recent Revisions to the Trademark Trial and Appeal Board Rules for the New Jersey Law Journal's April 14, 2008 Intellectual Property & Life Sciences Supplement. The article discusses the impacts the substantial rule changes set forth by the Trademark Trial and Appeal Board and the United States Patent and Trademark Office will have on trademark opposition and cancellation actions. You can read the full article here. ....
    • Can A Message Board Violate New Jersey's Consumer Fraud Act?
      The March 24, 2008, edition of the New Jersey Lawyer reported that the New Jersey Attorney General is investigating whether or not it’s Division of Consumer Affairs should assert fraud or Consumer Fraud claims against JuicyCampus.com, a free website which allows individuals to post anonymous opinions to "often nonsensical and sometimes vicious discussions" about who’s the most overweight student on campus, or who on campus has the most morally casual attitude? This invites the following question: can the New Jersey Attorney General successfully assert claims against this website? Probably not.The New Jersey Consumer Fraud Act. New Jersey enjoys one of the strongest consumer protection statutes in the United States.  New Jersey Courts have consistently emphasized that like most remedial legislation, the New Jersey Consumer Fraud Act ("CFA") is to be construed liberally in favor of consumers. Although initially designed to combat "sharp practices ....
    • Minority Oppression in Relation to "Fair Value" of Stock
       The Honorable Gerald C. Escala of the Superior Court of New Jersey, Chancery Division, Bergan County issued an interesting decision which provides additional guidance on the legal issue of minority oppression along with the calculation of “fair value” of the minority owners stock. In Venturini v. Steve’s Steak House, 2006 WL 445059, two nephews who collectively owned fifty percent of Steve’s Steak House filed a complaint against their aunt, Marie Damiani (“aunt” or “Marie”) alleging that they were oppressed minority shareholders.The nephews, Steve Venturini, III (“Steve III”) and Gregg Venturini (“Gregg”) collectively obtained fifty percent ownership in the corporation when their father, Steve Venturini, II, died in or about 2001. Around the time of their father’s death, Marie offered to purchase Steve III and Gregg’s interest in Steve’s Steak House, Inc. (“the corporation” ....
    • Supporting the Right to Obtain a Disability Carrier's Underwriting Manuals
      Shore Orthopaedic v. The Equitable is an important case in a policyholder’s arsenal - supporting the right to obtain a disability carrier’s underwriting manuals to challenge a claim denial. The Appellate Court decided on January 24, 2008 that a $50,000 counsel fee award by the trial judge in favor of plaintiff was the proper sanction, after the disability carrier, Equitable, delayed producing its underwriting manual.  One of Shore Orthopaedic’s practitioners became disabled and unable to pay his share of the overhead expenses of the medical group.  The practice owned a disability policy through Equitable intended to pay the practice benefits to reimburse for overhead expenses the doctor, insured under the policy, was unable to pay.  The policy provided that the benefits would be paid directly to the medical practice as the owner of the policy. During discovery, Shore demanded a copy of Equitable’s underwriting manuals.  The trial judge ....
    • Internal Investigations: Currnet Issues, Practical Guidance
      Kevin M. Hart, Shareholder and member of Stark & Stark 's Litigation group, was a participant in the September 2007 legal roundtable for GC Mid-Atlantic, titled Internal Investigations: Current Issues, Practical Guidance. The panelists discussed various issues a company will face when the decision has been made to conduct an internal investigation of a corporation. Some of the topics discussed include the initial issues a company will face when conducting an investigation, deciding who will conduct the investigation, maintaining the integrity of the investigation, what kind of reports to provide once the investigation has concluded, and a discussion on compliance programs. You can read the full report of the legal roundtable here. ....
    • Mediator Privilege
      The New Jersey Supreme Court has adopted New Jersey Rule of Evidence 519 entitled “Mediation Privilege” to become effective July 1, 2008.  It provides that a mediation communication is privileged and shall not be subject to discovery or admissible in evidence in a proceeding unless waived or precluded under limited circumstances further defined in the amendment. However, evidence or information that is otherwise admissible or discoverable does not become inadmissible or protected from discovery solely by reason of its disclosure or use in a mediation. The parties to a mediation may expressly waive the privilege, and in the case of the privilege of a mediator, it may be expressly waived by the mediator. Among the exceptions, where the privilege does not apply are the following: 1.    Communications made during a public mediation; 2.    A threat or statement of a plan to inflict bodily injury;3.    Communications sought or ....
    • A Nutshell on Marketability & Minority Discounts in New Jersey
      In most cases, the single most important issue in a minority shareholder oppression dispute is the valuation of the complaining shareholder’s interest in subject closely held company. One important sub-issue is the applicability of marketability and minority discounts in valuing a less than controlling interest in the subject closely held corporation. Before considering whether or not these discounts are applicable, a general understanding of the marketability and minority discounts and the rationale behind them is important. Generally, a minority discount is an adjustment which could be applied based upon the minority shareholder’s lack of control over the closely held business entity. The theory behind the minority shareholder discount is that non-controlling shares of non-publicly traded stock are not worth their proportionate share of the firm’s value because the minority owner lacks voting power to control the corporation’s actions.  The marketability ....
    • Litigation Gets Personal
      Thomas B. Lewis, Chair of Stark & Stark's Employment Group, and Shareholder of Stark & Stark's Litigation Group, was quoted in the August 6, 2007 issue of the National Law Journal, in the article, Litigation Gets Personal. You can read the full article here. ....
    • Californian Can Be Sued in NJ for Alleged Libel on Internet
      Paul W. Norris, Shareholder and member of Stark & Stark's Litigation Group, was quoted in Friday's New Jersey Law Journal Article, Californian Can Be Sued in NJ for Alleged Libel on Internet. The article discusses the recent decision in Goldhaber v. Kohlenberg, which states that making libelous statements in a web-based forum can be grounds for suit in New Jersey, because the material was "targeted" toward a New Jersey Audience. You can read the full story here. ....
    • New Jersey Legal Update - Podcast # 66
      This week's New Jersey Legal Update podcast is a follow-up to a previous podcast on minority oppression discussing who can file a minority oppression lawsuit, and what one can expect if they do. This podcast will follow up with a discussion of one of the most important parts in a minority oppression lawsuit - valuationThis week's New Jersey Legal Update podcast is presented by Scott Unger, Shareholder of Stark & Stark's Litigation Group. You can download the New Jersey Legal Update Podcast # 66 here. (5.9 MB) ....
    • Punitive Damages in Employment Cases Continue to Pose a Danger for the New Jersey Franchise Community
      Punitive damages are meant to punish the defendant, not compensate the Plaintiff. Generally speaking, they are allowed only in cases where the defendant’s conduct has been especially egregious. As a result, punitive damages are rarely awarded, leading many in the franchise community to disregard the danger of having punitive damages awarded against them.   The danger, however, is real. A case in point was the recent punitive damages award in Tarr v. Bob Ciasulli's Mack Auto Mall, Inc., 390 N.J.Super. 557, 916 A.2d 484 (A.D. February 2007). According to the published court opinion, this was a sexual harassment case where a relatively manageable award of $25,000.00 against an automobile sales franchisee ballooned into an additional $85,000.00 in punitive damages (and attorneys fees) resulting in a very expensive day for the Franchisee. Other recent cases have awarded significantly higher punitive damage awards (though they are often reduced later ....
    • New Jersey's Investigation of Student Loan Industry's Dealings With Colleges and Universities
      As the student loan scandal widens, it seems that most colleges and universities will have to examine and modify any existing internal policies that outline appropriate conduct between employees and outside service providers. In both New Jersey and New York, news is unfolding of possible inappropriate practices of college and university employees accepting perks ranging from stock options, the use of vacation homes, trips, as well as cash provided by loan industry representatives in an effort to become one of the institution’s preferred lenders for prospective students. More than 90% of all students have some form of student loan, and more than 80% utilize the private lenders recommended by the university. Since these loans are for the most part subsidized by the government, there is little risk of non-payment to the lenders, in fact student loans are not even dischargable in bankruptcy.Colleges and universities must now face the reality that in spite of their enlightened ....
    • Proof of confidential Relationship Creates Heavy Burden on a Party Receiving a Gift
      In a case recently decided by the Appellate Division of the Superior Court of New Jersey (In the Matter of the Estate of Samia Balgar, Docket No.  A-6621-04T5) the Appellate Court dealt with an issue concerning the disposition of certain joint bank accounts on the death of one of the parties to the account. In this case, the decedent had executed a will leaving her estate equally to her five daughters, with one of the daughters, the defendant in this case, being the executor.  At the same time as the will was executed, the defendant was designated as the decedent's power of attorney.  At issue were several bank accounts that were jointly held by the decedent and the defendant.  The plaintiffs alleged that the defendant had coerced her mother into transferring most of her assets into these joint bank accounts. The Trial Court determined that there was a confidential relationship between the defendant and the decedent and that the defendant did not submit ....
    • The Enforceability of an E-Mail as an Agreement to Share or Transfer a Copyright
      Businesses and individuals often engage in negotiations with regard to any number of issues through the forum of e-mail.  Such negotiations pose a variety of risks because of the fact that the negotiations are in writing and could be used for purposes that the sender did not intend.  For instance, the sender of an e-mail should exercise caution during preliminary discussions to transfer or share rights in a copyright.  Even though the Copyright Act requires that any such agreement must be signed, there is a high probability that the Third Circuit would find that an e-mail satisfied such a requirement.      The Copyright Act, at 17 U.S.C. 204(a), provides: A transfer of copyright ownership, other than by operation of law, is not valid unless an instrument of conveyance, or a note or memorandum of the transfer, is in writing and signed by the owner of the rights conveyed or such owner's duly authorized agent.17 U.S.C. 204(a).  No cases specifically ....
    • New Jersey Legal Update - Podcast # 62
      This week's New Jersey Legal Update podcast will discuss the case In re Lead Paint Litigation, which is currently before the New Jersey Supreme Court. This podcast will give a brief discussion on the background, facts, and parties of the case, an overview of the procedural events that have occurred, as well as a discussion on the impact this decision could have throughout the state of New Jersey. This week's New Jersey Legal Update is presented by Scott Unger, member of Stark & Stark’s Litigation Group. You can download the New Jersey Legal Update here. (5.4 MB) ....
    • New Jersey Legal Update - Podcast # 60
      This week's New Jersey Legal Update podcast will discuss oppressed minority shareholder litigation. This podcast will explain who qualifies as an oppressed minority shareholder, the New Jersey statutes that govern shareholder divorces, and what these rules and regulations can mean for you and your business. This week's New Jersey Legal Update is presented by Scott Unger, member of Stark & Stark’s Litigation Group. You can download the New Jersey Legal Update Podcast # 60 here. (5.9 MB) Technorati Tags: New Jersey : Podcast :  Litigation : Shareholder Oppression ....
    • Restrictive Covenant Agreements For Franchises
      The growth and development of a business is generally dependent upon the efforts and dedication of its key employees. Such key employees can greatly contribute to the success of a business. Conversely, upon the termination of their employment, these same employees have the potential to negatively impact the company. Depending on his or her relationships with clients, a former employee can convince your company’s clients to leave the company and be serviced by the former employee’s new employer or company. The former employee can also solicit or encourage other key employees to leave the company. To minimize disruption to the company’s operations and client relationships, a company can be proactive and have the key employee sign an agreement agreeing to certain restrictive covenants: Confidentiality Agreements. While an employee of your company, the employee will likely become familiar with confidential and proprietary information ....
    • Helping OSU Graduates Succeed
      Scott Unger, a Shareholder in the Litigation group, was featured in Starting a Chain Reaction of Success in the Moritz College of Law - The Ohio State University's This Month at Moritz January 2007 newsletter.The article highlights Unger's work with other Moritz graduates, helping them to network and find jobs.You can read the story here. ....
    • Wal-Mart Settlement Saves Company Money
      Thomas Lewis, Chair of the Employment Litigation group, was quoted in Wal-Mart Mea Culpa Saves Company Legal Costs down the Road in Workforce Management magazine.Lewis commented on the settlement between WalMart and the Department of Labor concerning improper overtime compensation for thousands of workers.You can read the article here. ....