Hill Wallack LLP Firm News/Blogs Feed

Hill Wallack LLP Partner Ronald L. Perl to speak at NJSBA CLE Program

22 Jun 2017

Presented in cooperation with the NJSBA Real Property Trust and Estate Law Section and the New Jersey Chapter of the Community Associations Institute (CAI-NJ)

New Jersey Law Center
1 Constitution Sq.
New Brunswick, NJ

June 22, 2017 - 9:00 AM - 1:00 PM

Fundamentals of Community Association Law

About the program:

Community associations constantly confront a broad range of issues in managing the affairs of the residents of condominiums and other planned communities. There is no shortage of problems and concerns arising from common interest ownership due to the mandatory membership of owners in associations, governance by an elected board, shared amenities and services, and the obligation to follow rules and regulations and to pay common expense assessments. The tools to resolve the legal issues faced by these associations span several legal practice areas – business, real estate, litigation, environmental, bankruptcy, collections, administrative law, to name just a few.

In this program which has been brought back due to popular demand, our highly experienced panel of community association law experts will introduce you to the fundamentals of community association law, and give you a foundation and resources to deal with issues confronted by associations, their governing boards, owners, and other professionals, such as managing agents, accountants, and engineers.

Among the panelists are: Ronald L. Perl, Esq., Hill Wallack LLP; George C. Greatrex, Esq., Shivers Gosnay & Greatrex, LLC and Susan J. Radom, Esq., Radom & Wetter.

Christine F. Li, Esq., Past Chair, NJSBA Real Property, Trust & Estate Law Section will be moderating the program.

High Court Finds FDCPA Does Not Apply to Individuals and Entities Collecting a Debt on Their Own Account

14 Jun 2017

Written by: Brett M. Buterick, Esq.

On Monday, June 12, 2017, in a major victory for U.S. financial institutions, the United States Supreme Court unanimously ruled that individuals and entities who purchase debts originated by another, whether in default or not, and subsequently collect on the debt on their own account are not “debt collectors” subject to the provisions of 15 U.S.C. §1692, the Fair Debt Collection Practices Act (“FDCPA”). Henson v. Santander Consumer USA Inc., No. 16-349, 2017 WL 2507342 (U.S. June 12, 2017).

The Court’s ruling is significant as it resolves the application of the definition of “debt collector” under the FDCPA as it relates to the prohibitions set forth in the statute. Section 1692a(6) defines a "debt collector” as:

[A]ny person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.

15 U.S.C. § 1692a(6).

Courts throughout the country have applied the definition of “debt collector” under § 1692a(6) differently as it relates to owners of debts purchased post-default resulting in different treatment depending on the circuit where the case was brought. See, e.g., Henson v. Santander Consumer USA, Inc., 817 F.3d 131 (4th Cir. 2016) , cert. granted, 137 S. Ct. 810, 196 L. Ed. 2d 595 (2017), and aff'd, No. 16-349, 2017 WL 2507342 (U.S. June 12, 2017)(non-originating debt holder, not a debt collector under § 1692a(6), despite default status at time debt was acquired)); Davidson v. Capital One Bank (USA), N. A., 797 F. 3d 1309 (11^th Cir. 2015) (same); McKinney v. Cadleway Properties, Inc., 548 F.3d 496 (7th Cir. 2008) abrogated by Henson v. Santander Consumer USA Inc., No. 16-349, 2017 WL 2507342 (U.S. June 12, 2017) (purchaser of defaulted debt was “debt collector” subject to requirements of FDCP); F.T.C. v. Check Inv'rs, Inc., 502 F.3d 159 (3d Cir. 2007) abrogated by Henson v. Santander Consumer USA Inc., No. 16-349, 2017 WL 2507342 (U.S. June 12, 2017) (same).

In Henson, the Fourth Circuit concluded that Santander Consumer USA, Inc. was a creditor, not a debt collector under § 1692a, as Santander was collecting the petitioners’ debt on its own behalf, despite purchasing same from the loan originator post-default. Henson v. Santander Consumer USA, Inc., 817 F.3d 131 (4th Cir. 2016), cert. granted, 137 S. Ct. 810, 196 L. Ed. 2d 595 (2017), and aff'd, No. 16-349, 2017 WL 2507342 (U.S. June 12, 2017). The lower court found Santander sought to collect debts it owned and did not regularly seek to collect debts “owed . . .another,” and thus could not be considered a debt collector subject to FDCPA regulation. Id.

In Justice Neil Gorsuch’s first written Supreme Court opinion, the Court unanimously upheld the Fourth Circuit’s ruling in favor of Santander Consumer USA, Inc. The Court noted the narrowness of the question presented, as both the petitioner and respondent agreed third-party debt collection agents generally qualify as “debt collectors” under the FDCPA, while institutions operating to collect a debt originated in-house act only on behalf of themselves. Henson v. Santander Consumer USA Inc., No. 16-349, 2017 WL 2507342 at *2 (U.S. June 12, 2017). Accordingly, the only remaining issue for the Court to decide was “how to classify individuals and entities that regularly purchase debts originated by someone else and then seek to collect those debts for their own account.” Id.

The Court, examining the petitioners’ textually and policy based arguments, rejected same and found the statute cannot contemplate petitioners’ interpretation of the definition. Id. at *3-4. Focusing on the phrase debts “owed . . . another,” the Court held the language does not “appear to suggest that we should care how a debt owner came to be a debt owner— whether the owner originated the debt or came by it only through a later purchase. All that matters is whether the target of the lawsuit regularly seeks to collect debts for its own account or does so for ‘another.’” Id. at* 3. The Court further found that, since the interpretation argued by counsel for the Borrower lacks textual support, it would need to redraft the legislation to include the petitioners’ reading which is well outside the scope of the Court’s power. Id. at *4.

Takeaways

The decision represents a major victory for financial institutions throughout the United States. Not only does the Court’s holding ease the minds of institutions dealing regularly in the acquisition and/or sale of distressed debt, it also eases burdens on the entire distressed debt marketplace as the looming cloud of potentially frivolous FDCPA action is lifted from the sale and purchase of such assets. Over time, the decision will likely result in an increase in distressed debt trade as the cost of FDCPA litigation is removed from a good portion of transactions.

The decision also presents a significant economic benefit to those owners of defaulted debt, collecting on their own account, currently involved in FDCPA litigation as the statute’s restrictions clearly no longer applies to them.

Hill Wallack LLP’s Creditors’ Rights and Bankruptcy practice group offers strategic and timely advice on all matters affecting buyers and sellers of distressed debt. Our attorneys are seasoned litigators of matters brought under consumer financial protection statutes, having particular in depth knowledge of the entirety of the Fair Debt Collection Practices Act. Our attorneys are experienced navigators of the FDCPA and provide expedient, protective, and efficient solutions to ensure client security and compliance.

If you have recently been sued under the FDCPA, or have questions or concerns regarding asset sales or acquisitions and the effect of the Court’s recent decision, please contact Michael Kahme, Esq., Telephone: (609) 734-6383; Email: mkahme@hillwallack.com, Thomas W. Halm, Jr., Esq., Telephone (609) 734-6338; Email: thalm@hillwallack.com., Eric Kelner, Esq., Telephone (609) 734-4451; Email: ekelner@hillwallack.com, or Brett M. Buterick, Esq., Telephone (609) 734-6330; Email: bbuterick@hillwallack.com.

Hill Wallack LLP Family Law Attorney, Supti Bhattacharya appointed to Co-Chair of the New Jersey State Bar Association Diversity Committee

26 May 2017

Princeton, NJ May 26, 2017 --- Hill Wallack family law attorney, Supti Bhattacharya has been appointed as Co-Chair of the New Jersey State Bar Association Diversity Committee.

Supti Bhattacharya is Chairperson of the firm’s New Jersey Family Law practice group. Ms. Bhattacharya represents clients exclusively in the areas of family law and matrimonial law, including: Divorce; Separation; Domestic Custody and International Custody; Child Support; Alimony; College Tuition and College Expense Contribution; Child Emancipation; Equitable Distribution of Assets; Domestic Violence; Pre-Nuptial Agreements; and Mid-Marriage Agreements

New Jersey State Bar Association Diversity Committee Mission Statement

The NJSBA Diversity Committee works with the entire NJSBA community to support the mission and vision of the NJSBA, and to ensure that diversity, in its many forms, is understood, respected and valued. The NJSBA Diversity Committee will guide efforts to conceptualize, assess, and cultivate diversity as an institutional and educational resource. The NJSBA works to promote equality in the profession and justice system and identifies ways in which the NJSBA can promote diversity in the practice of law. The NJSBA Diversity Committee seeks to collaborate with all sections and committees to ensure the full and equal access to and participation by individuals in the NJSBA, the legal profession and in the justice system regardless of race, gender, ethnicity, national origin, religion, age, sexual orientation, gender identity or disability.

About Hill Wallack LLP

Founded in 1978, Hill Wallack LLP is a leading full service law firm with offices in Princeton and Morristown, New Jersey and Yardley, Pennsylvania. Our regional strength places us in an ideal position in today’s market. With nearly 70 lawyers, our mid-market size allows us to provide sophisticated, high-level service to clients in a cost-efficient, responsive manner. Our attorneys represent individual and entities in banking, community associations, creditor rights, employment & labor law, family law, insurance, land use, litigation and real estate. For more information, please visit www.hillwallack.com.

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Hill Wallack LLP Partner Supti Bhattacharya to speak at SABA-NJ

25 May 2017

"Partnership Track"
presented by: The South Asian Bar Association of New Jersey and Day Pitney LLP

“Making Partner” are two words that many associates are driven by in private practice. There are a few minority partners that exist today, but how did those that achieved the status actually succeed? On Thursday, May 25, 2017, join a panel discussion with partners from major law firms across the state to have a frank conversation about their pathways to partnership. There is no cost to attend this informative and necessary discussion on how to make partner for diverse attorneys.

Partner Supti Bhattacharya will be among the panelists at this informative discussion along with partners from Day Pitney LLP, Genova Burns, and Riker, Danzig, Scherer Hyland Perretti LLP.

Thursday, May 25, 2017
6:00 p.m. - 8:00 p.m.

Offices of Day Pitney LLP
One Jefferson Road
Parsippany, NJ 07054-2891

Information Security Alert

19 May 2017

Written by: Hill Wallack LLP, Information Security Committee

An unprecedented global ransomware attack has been a dominant news story this week. It has been reported that over 200,000 computers have been locked, and that a ransom was solicited by the hackers. Please be assured that Hill Wallack has, and continues to be, vigilant in the protection of client data.

Hill Wallack devoted significant resources, both human and financial, to obtaining ISO 27001 Certification, which is the world’s most widely-adopted information security standard. Hill Wallack’s certification means that its client information receives the highest level of security protection available. We have in place an Information Security Management System which employs best practices to continually evaluate and monitor for threats and take appropriate measures to address potential threats. Towards this goal, we regularly update our network with the most current security patches. All of our employees receive education and training as well as awareness updates to guard against security threats.

Hill Wallack has confirmed its commitment to provide its clients with global best practices for information security management and ensures that proper policies and procedures are in place to secure valuable client data. Many of the firm’s clients are in regulated industries which mandate that they use professional service firms that are capable of securing their confidential data. By achieving this certification, Hill Wallack has joined an elite group of firms that are positioned to satisfy the needs of those clients.

Hill Wallack LLP Partner Caroline Record to speak at NJSBA 2017 Annual Meeting and Convention

18 May 2017

New Jersey State Bar Association
2017 Annual Meeting and Convention
May 17 - 19
Borgata Hotel Casino & Spa, Atlantic City, NJ

Caroline Record, Esq. will be among the panelists for:

Community Associations: Opportunities and Insights - May 18th - 8:30 am

Real Property Trust and Estate Law Section

Significant developments in community association law will be the focus of this program. Recurrent Issues, such as the collection of delinquent assessments, the conduct of meetings and association affairs, and mortgage foreclosure and election reform efforts, will be discussed. This panel will evaluate existing laws, such as the Municipal Services Act, and spotlight legislative efforts and court decisions impacting this practice.

Hill Wallack LLP Partner Michael S. Karpoff to speak at NJSBA 2017 Annual Meeting and Convention

18 May 2017

New Jersey State Bar Association
2017 Annual Meeting and Convention
May 17 - 19

Borgata Hotel Casino & Spa, Atlantic City, NJ

Michael S. Karpoff, Esq. will be among the panelists for:

Mediation Mythbusters: A Game Show Experience - May 18th - 10:00am
Dispute Resolution Section

Forget those other seminars and join our simulated game show where experienced attorney-advocate contestants from diverse areas of business, employment, and construction law, will field questions in order to bust the myths surrounding mediation. Misconceptions regarding both private and court-affiliated mediation persist in the legal community despite decades of increasing recognition and use of the process in state and federal courts nationwide. Some myths arise from widely held, but erroneous, assumptions about the mediation process; some stem from a fundamental misunderstanding of the role of the mediator; and some from a simple lack of knowledge of how the mediation process can be adapted and customized to benefit your particular cases or clients. The validity of the contestants answers will be confirmed – or challenged – with a PowerPoint presentation of mediation’s historical background and best practices for maximizing benefits to your clients, both in the context of private mediations and court-affiliated mediations under state Court Rule 1:40 and Federal Practice Local Rule 301.1.

Click here to register.

Hill Wallack LLP Partner Supti Bhattacharya to speak at NJSBA 2017 Annual Meeting and Convention

17 May 2017

New Jersey State Bar Association
2017 Annual Meeting and Convention
May 17 - 19
Borgata Hotel Casino & Spa, Atlantic City, NJ

Supti Bhattacharya, Esq. will be among the panelists for:

Death and Divorce - May 17th - 1:00 pm
Real Property Trust and Estate Law Track/Family Law Track
Young Lawyers Division

On November 7, 2011, the New Jersey Law Revision Commission released its final report relating to equitable distribution and the elective spousal share, recommending changes to both family law and probate focused statutes in order to address the “black hole” created by the death of a party in a divorce. Yet, more than six (6) years later, none of those proposed changes have been passed into law. Join our team of family lawyers, estate planners, litigators and judges to learn how attorneys in both practice areas navigate around the pitfalls created by the current laws.

Click here for further information.

SPRING CLEANING: IT’S TIME TO DUST OFF AND UPDATE YOUR EMPLOYEE HANDBOOK

16 May 2017

Written by: Katrina M. Homel

Is your employment handbook up-to-date? Employment law is an ever-changing field, and community associations, management companies, and employers of all sizes will avoid a later headache by taking the time to review and revise their handbook to reflect recent updates in employment law.

Employee handbooks set forth an employer’s policies and procedures so that there are clear expectations for the employment relationship between the employer and employee. The handbook is not an implied contract, nor is it intended to be comprehensive of every possible situation that may arise in the workplace, though it sets expectations that guide conduct in new situations that may arise. Handbooks address the core terms and conditions of employment including, for example, the nature of the employment relationship, employees’ conduct in the workplace, the employer’s response to misconduct, management of pay and benefits, and general operating procedures. An employer should require employees to review the handbook and sign a statement that they received and agree to read the handbook, that the handbook is not a contract, that it is subject to change at any time at the employer’s discretion, and, importantly, that the employee agrees to follow policies and procedures set forth in the handbook.

Community associations, management companies, and other employers should review their handbook to ensure that they are current and not operating out of compliance with the law. Recent developments in employment law include, but are not limited to, developments in the areas of social media, wage and hour, whistleblower protection, employee privacy, antidiscrimination, disability accommodations, and labor relations. Having an up-to-date handbook will go a long way to protecting the employer and maintaining a smoothly run workforce. Employers with handbooks already in place should revisit the standards and criteria established in the handbook and revise them to reflect current laws and employment practices. Employers without handbooks are urged to consider investing in the protections that a handbook can provide.

For management and lower-level employees, an employee handbook is a helpful resource to answer many questions that may arise in the workplace. For employers, a handbook provides numerous benefits in addressing employee situations. Even small employers with just a few employees are subject to many employment laws, and will benefit from having a handbook that creates consistent expectations for staff.

Clearly written and enforced policies may reduce the risk of liability and will help employers guard against claims of discrimination and unfair treatment. For example, an employer who can point to a clear anti-harassment policy which has been read and acknowledged by all employees and which is consistently enforced has demonstrated a commitment to legal compliance and can show the steps it has taken to protect its employees and business.

An employee handbook also provides community associations, management companies, and other employers a concrete mechanism to hold employees accountable to follow the employer’s policies. Where policies are clearly communicated in the handbook, an employer can point to its policies in counseling and, if appropriate, disciplining an employee who has failed to meet those expectations.

Additionally, having a handbook in place may be helpful to an employer when it is time for an employee’s performance review, such as in situations where an employee’s conduct is impacting his or her job performance. For example, if an employer has set clear expectations in its handbook regarding lateness and attendance, and an employee’s lateness is impacting his or her job performance, when the time comes around for the employee’s performance review, the employer can point to its policy regarding lateness and attendance during its discussions with the employee about performance.

Having and maintaining an up-to-date employment handbook sets clear expectations for employees so that community associations, management companies, and other employers may operate an efficient and productive workplace, and provides protections for an employer should a workplace conflict arise.

This article is for informational purposes only and does not constitute legal advice or a legal opinion. If you have questions about recent developments in employment law and their impact on your employment practices and handbook, please contact us. Hill Wallack LLP’s Employment & Labor Law attorneys have vast experience in counseling employers, including, but not limited to, regarding their policies and handbooks.

Hill Wallack Attorney Selected To The 2017 Pennsylvania Super Lawyers List

12 May 2017

Yardley, PA May 12, 2017 --- Partner Francis J. Sullivan from the Yardley, PA office of Hill Wallack LLP has been selected to the 2017 Pennsylvania Super Lawyers list. Each year, no more than five percent of the lawyers in the state are selected by the research team at Super Lawyers to receive this honor.

Mr. Sullivan, is the Managing Partner of Hill Wallack LLP’s Yardley, Pa., office and is a member of the firm's Management Committee. He is partner-in-charge of the Business & Commercial and Trusts & Estates practice groups.

Super Lawyers, a Thomson Reuters business, is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement. The annual selections are made using a patented multiphase process that includes a statewide survey of lawyers, an independent research evaluation of candidates and peer reviews by practice area. The result is a credible, comprehensive and diverse listing of exceptional attorneys.

The Super Lawyers lists are published nationwide in Super Lawyers Magazines and in leading city and regional magazines and newspapers across the county. Super Lawyers Magazines also feature editorial profiles of attorneys who embody excellence in the practice of law. For more information about Super Lawyers, go to superlawyers.com.