Insights

Whether the product of a business entity’s consensual separation agreement or knock down litigation over years of mistrust and differences, a structured buyout over time of one partner’s equity interest in the erstwhile business partnership, with the payout secured by the business assets, has hidden dangers. The United States Bankruptcy Appellate Panel of the Ninth Circuit on March 22, 2022, in a case captioned In re Bruce Elieff, BAP # CC-21-1081-SFL, rendered an Opinion on one such hidden danger: A seller’s claim for damages arising from his former partner’s purchase of his equity interest in their business partnership would be, upon the buyer’s default on the payment terms of the buyout, subordinated to the unsecured claims in the buyer’s subsequent affiliated bankruptcies under Section 510(b) of the Bankruptcy Code. Moreover, the Court ruled the judgment lien obtained by the seller against the debtor’s business assets also was subordinated to unsecured creditors of the business.  

This article originally appeared in Migalhas on March 30, 2022.  

Join CSG Law’s Michelle A. Schaap and Frank Xavier Wukovits on Thursday, May 19th at 10:00 AM (EST) for Session I as they present, “What Lawyers Need to Know About Vendor Risk Management, and Ethical Obligations to Clients.” Key topics to be discussed:  

CSG Law’s Francis M. Giantomasi will speak at the upcoming New Jersey State Bar Association’s Annual Meeting and Convention on Wednesday, May 18, from 1:45-3:25 PM. His panel, “Hot Topics in Commercial Real Estate,” will discuss the latest trends in the law involving retail, office and industrial financing and insurance. For more information, please click here.  

Chair of CSG Law’s Real Estate, Development & Land Use Group, Mitchell S. Berkey, will participate in Bisnow’s New Jersey State of the Market program on Thursday, May 5th. He will moderate the first panel entitled, “Investor & Deal Demand – Attracting New Market Players & Assessing Demand,” from 9:00 – 9:45 AM. The panel will discuss:  

Chiesa Shahinian & Giantomasi PC (“CSG Law”) announced today that Susan Reach Winters has been selected as a 2022 Family/Elder Law Trailblazer by The National Law Journal.  

The Nature Conservacy, in its most recent newsletter, recognized Chiesa Shahinian & Giantomasi's Dennis Toft for his contributions to the New Jersey chapter over the past decade as a Trustee Legacy Ambassador.   

On August 5, 2021, the New Jersey Department of Environmental Protection ("NJDEP") issued updated guidance on how remediating parties and Licensed Site Remediation Professionals need to address Contaminants of Emerging Concern ("CECs"). The guidance documents address timeframes for addressing CECs, include frequently asked questions regarding CECs, and provide a list from the EPA of industry sectors believed to have used perfluoroalkyl substances (PFAS). NJDEP also updated its CEC web page.

On the eve of the holiday weekend, Kaseya was hit with a ransomware attack. Kaseya has been posting regular updates on its website all through the weekend. If you or your managed service provider (many of which run their operations on Kaseya's platform) were impacted by this compromise.

Marijuana cultivation is, at its core, an agricultural endeavor, requiring large amounts of energy and water to nurture and grow the raw product. Through this series of blog posts, I have considered some of the environmental regulatory issues that may arise with respect to this growing industry. But what about the environmental impacts of marijuana cultivation? This blog post will explore – in general terms – some of the known environmental impacts of the recreational marijuana industry, drawing from the lessons learned in the states that have led the way.