Trusted advisors to business owners will often recommend a revocable living trust. But is this good advice?
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Revocable Living Trusts for the Business Owner
Trusted advisors to business owners will often recommend a revocable living trust. But is this good advice?
Read the Article at:
Revocable Living Trusts for the Business Owner
A law enacted in 2010 called the New Jersey Foreclosure Fairness Act (“NJFFA”), found in N.J.S.A. 2A:50-69 to -71, offers valuable protections to residential tenants living in foreclosed properties. Specifically, new owners of a property acquired through foreclosure are required to serve residential tenants with a detailed written notice informing them of their tenancy rights under New Jersey law and where to send future rent payments.
Also, the NJFFA obligates foreclosing lenders to comply with additional reporting requirements, such as serving the municipal clerk (where the foreclosed property is located) with written notice of the commencement of a foreclosure case, and reporting to the Department of Banking and Insurance on a quarterly basis about the number of foreclosure cases initiated by the lender.
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Tenant’s Rights Under New Jersey Foreclosure Fairness Act
In this particular article I discuss whether assets transferred between soon-to-be ex-spouses as part of a property settlement agreement in a New Jersey divorce case can be challenged by creditors.
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FRAUDULENT ASSET TRANSFERS IN NEW JERSEY MARITAL PROPERTY SETTLEMENT AGREEMENTS
In a July 31, 2014 unpublished decision, a Bergen County judge fined a mortgage lender $26,125 in legal fees for duping a 70-year old borrower into a refinance transaction that benefited only the lender. Finding that the lender committed an unconscionable commercial practice by charging the borrower over $11,000 in mortgage closing costs that would have taken her 5+ years to recoup based on the paltry savings of $63/month from her monthly mortgage payment, the Court chastised the lender for acting in its own self-interest.
A more detailed analysis about this case appears on our website blog:
In a recent unpublished decision, the New Jersey Appellate Division upheld a trial court’s sanctioning HSBC more than $54,000 due to the bank’s filing of a foreclosure suit without being able to prove that it holds the proper chain of title to the underlying mortgage and promissory note. HSBC Bank vs. Nini, A-1941-11T1 (App. Div. , Unpublished, April 30, 2014).
The irony of this decision is that despite claiming to be owed more than $700,000 on a property valued at only $361,000, the lender was forced to foot the bill for about half of the mortgagor’s legal fees and expenses. Talk about getting a free ride!
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Attention New Jersey Mortgage Lenders: Get your Ducks in a Row Before Filing Foreclosure
A party’s choice to hire an attorney of their own choosing is perhaps one of the most important liberties in our system of jurisprudence. However, the legal bar of each state imposes certain restrictions and limitations on the practice of law which are designed to avoid conflicts of interest. In New Jersey, attorneys are governed by the Rules of Professional Conduct (“RPC”). Can an attorney represent a client in a lawsuit if the attorney is also a witness possessing first hand knowledge of disputes that are central to the lawsuit?
RPC 3.7 incorporates the attorney witness rule which states as follows:
A lawyer shall not act as advocate at a trial in which the lawyer is likely to be a necessary witness except where:
(1)the testimony relates to an uncontested issue;
(2)the testimony relates to the nature and value of legal services rendered in the case;
(3)disqualification of the lawyer would work substantial hardship on the client.
There can be many strategic reasons to seek disqualification of an attorney under RPC 3.7. Perhaps the attorney is a family friend or relative who is not charging a fee, or is charging a reduced fee. In such a scenario, the litigant paying no legal fees or paying a reduced fee would gain an unfair advantage. Because courts generally are reluctant to disqualify a party’s choice of counsel, a motion brought pursuant to RPC 3.7 requires the moving party to bear the burden of proof by demonstrating that the attorney’s continued representation would violate the Rule. J.G. Ries & Sons, Inc. v. Spectraserv, Inc.,384 N.J. Super. 216 (App. Div. 2006).
I recently discussed this issue at length in a separate blog post published on my website. Click here to read the full article.
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