REPORT FROM COUNSEL

WINTER 2005/2006 ISSUE

JOEL LEYNER, SELECTED AS ONE OF ONLY SEVEN ATTORNEYS IN NEW JERSEY IN THE BET-THE-COMPANY LITIGATION CATEGORY

Sixty-eight lawyers in New Jersey were peer selected as the Best Lawyers in America under the category of “Commercial Litigation.” A new elite category of litigation attorneys entitled “Bet-the-Company” was established this year designating only 140 lawyers nationwide.

Our firm is honored by the selection of Joel Leyner as one of these 140 attorneys but, most significantly, he is one of only seven lawyers in New Jersey to achieve this status.

With this designation, Joel is now listed in the Best Lawyers in America under four separate categories:

                              
•   Appellate Law
                              
•   Bet-the-Company Litigation
                              
•   Commercial Litigation
                              
•   Personal Injury Litigation

This new category, a modern take-off on “bet the farm,” means that when you have everything at stake, your lawyer should be Joel Leyner.

NEW AND NOTEWORTHY

* In September 2005, Arthur N. D'Italia, counsel to the firm, was appointed by the Chief Justice of the New Jersey Supreme Court to chair a Working Group on IOLTA and Financial Institutions. The Working Group included representatives of the Executive, Legislative, and Judicial branches of government, including the New Jersey Director of Banking. The Working Group was charged with examining objections made by the Legislature and Department of Banking and Insurance to a standard established by the Supreme Court for approving banks to be used as depositaries of certain attorney trust funds (IOLTA accounts). The dispute centered on interest rates to be paid on IOLTA accounts, which last year resulted in an average balance of $2.5 billion statewide. The Working Group developed a series of recommendations to the Supreme Court intended to address the interests of all parties, including financial institutions and practicing attorneys. The recommendations were recently adopted by the Supreme Court and have been accepted by major financial institutions throughout the State without objection. Mr. D'Italia, was the Assignment Judge of the Superior Court of New Jersey (Hudson County) until his retirement in August 2004.

* Ralph J. Lamparello was honored with his selection as one of 19 attorneys from the State of New Jersey nominated to be included within Who's Who Legal: USA -- Management Labour & Employment 2006. The research by the International Who's Who of Business Lawyers resulted in the selection of 510 lawyers in 49 states who are considered leaders in the field of management labor and employment law.

* Steven L. Menaker was approved as a Certified Civil Trial Attorney by the New Jersey Supreme Court. Steven joins Ralph Lamparello as one of only 50 attorneys, out of more than 80,000 attorneys in New Jersey with the distinction of holding dual board certification as both a certified civil trial attorney and a certified criminal trial attorney. The New Jersey Supreme Court awards the designation of Certified Trial Attorney to those lawyers who have demonstrated sufficient levels of experience, education, knowledge and skill in trial practice based upon standards set forth by the Court, peer review and a day-long written examination. A Certified Attorney is more than just an attorney who specializes in a particular area of law. A Certified Attorney must have:

•been a member in good standing of the New Jersey bar for over 5 years;

•fulfilled ongoing continuing legal education requirements;

•demonstrated a substantial level of experience in civil or criminal trial law;

•been favorably evaluated by other attorneys and judges familiar with his or her work; and,

•taken and passed a written examination in civil or criminal trial law.

Chasan Leyner & Lamparello, PC is pleased to offer five Certified Civil Trial Attorneys-- Steven, Ralph, Joel A. Leyner, John V. Mallon and John M. Lago and two Certified Criminal Trial Attorneys to service its clients' litigation needs.

* Martindale-Hubbell has awarded its highest peer review rating for ethical standards and legal ability to Cindy Nan Vogelman. Other members of the firm with the "AV" distinction include Joel Leyner, Ralph Lamparello, Robert Kaye, John Mallon, and Steven Menaker. The firm has also been awarded an "AV" designation by Martindale-Hubbell.

* John L. Shahdanian was recently appointed as a member of the Seton Hall University School of Law Alumni Council, which supervises and administers the affairs of the Seton Hall University School of Law Alumni Association. The purposes of the Alumni Council include engaging alumni in the Law School Community, supporting recruitment efforts of prospective students, and promoting career opportunities for current students.

CASE NOTES

* On November 9, 2005, the New Jersey Supreme Court granted a Petition for Certification on behalf of Michael G. Venezia in In the Matter of Michael G. Venezia. The underlying case involves claims of defamation and violation of civil rights based on comments about Mr. Venezia in a newspaper article published by The Bergen Record. Although the trial court granted Mr. Venezia's motion to take the deposition of the reporter who wrote the article, the Appellate Division, in an unpublished opinion, vacated the trial court's order for the deposition. In a free press case which the New Jersey Law Journal reports, "will provide a teaching tool for lawyers who represent people who produce news," the Supreme Court will rule on whether a reporter has a privilege pursuant to the New Jersey "Shield Law" to refuse a deposition taken regarding information obtained during the newsgathering process where the reporter subsequently discloses that information outside of the newsgathering process. Michael D. Witt prepared the Petition for Certification.

* Former Assignment Judge, Arthur N. D'Italia, now counsel to the firm, was recently appointed by the Superior Court of New Jersey to manage, and ultimately to try, a lawsuit brought by Southern New Jersey Rail Group against New Jersey Transit Corporation. The plaintiff in the case constructed a light rail system running from Camden to Trenton. Southern New Jersey Rail Group, which consists of a joint venture between Bechtel Corporation and Bombardier, is seeking damages in excess of $150 million. New Jersey Transit has counterclaimed for $56 million. The parties have already exchanged more than 6 million documents and anticipate a trial beginning in June 2006. The parties selected Mr. D'Italia to serve as Special Master pursuant to a court rule that permits such assignments to be made if approved by the Assignment Judge of the County where the action is brought. The appointment was approved by the Essex County Assignment Judge.

* John V. Mallon successfully defended an Allstate insured during a three day trial in Hudson County. The plaintiff had previously filed a personal injury lawsuit for severe neck injuries in a much publicized "Air Rage" case but claimed new injuries to the low back and jaw as a result of the accident with our client. John initially won Summary Judgment for the defendant, but due to a change in the verbal threshold law, the case was remanded for trial. At the conclusion of the case, the jury determined that plaintiff did not sustain any injuries in the automobile accident.

* On November 7, 2005 the United States Court of Appeals for the Third Circuit created precedent in Party City v. Celebrations, et al., in which the Court interpreted the Computer Fraud and Abuse Act ("CFAA") for the first time. The CFAA is a federal criminal statute which grants civil remedies and is designed to prevent cyber crimes such as computer hacking and virus spreading. Party City attempted to obtain an injunction closing the business of its competitor, Celebrations, by claiming violations of the CFAA. The Third Circuit affirmed the New Jersey Federal District Court's decision denying Party City's application and found no evidence of wrongdoing on the part of the alleged hacker. Peter L. MacIsaac, who represented the defendant charged with hacking, prepared the briefs and successfully argued the case before the Federal District Court for the State of New Jersey and the Third Circuit. The Court's decision is available online at http://caselaw.lp.findlaw.com/data2/circs/3rd/044254p.pdf.

* Our firm assisted North Hudson Regional Fire & Rescue avoid a potential lawsuit based upon a claimant's allegations that he sustained personal injuries and emotional distress due to a purportedly negligent rescue from his burning home. The claimant failed to timely file a notice of tort claim and filed a motion seeking the Court's permission to file a late notice on the ground that his injuries prevented him from meeting the deadline imposed by the New Jersey Tort Claims Act. An investigation revealed, however, that the claimant had sought public office and submitted paperwork with the Federal Election Commission on two occasions during the period of his claimed incapacity. The Court denied the motion, relying upon NHRFR's argument that the claimant's candidacy and related campaigning undercut the logic and credibility of his argument. Michael A. Oppici wrote the brief in opposition to the motion and Walter H. Schneider argued the matter in Court.

* Joseph B. O'Toole obtained a verdict in favor of an Allstate insured following a three-day trial in the Superior Court of New Jersey, Bergen County. The plaintiff's Board Certified radiologist testified to the presence of three cervical disc bulges and a lumbar herniation. Joe countered with evidence that plaintiff's MRI did not reveal abnormalities, thereby forcing plaintiff's claims to fall below the Lawsuit Threshold. Joe also demonstrated plaintiff's comparative negligence, even though the defendant made a left turn into plaintiff's lane. The jury returned a verdict in the defendant's favor, first finding that plaintiff was 25 percent responsible for the accident but also that plaintiff's injuries were not permanent.

* Thomas R. Kobin successfully defended the Union City Board of Education against a former employee's complaint that the Board discriminated against him based on his disability in violation of the Law Against Discrimination. The Complaint was filed with the State of New Jersey, Department of Law and Public Safety, Division of Civil Rights. The Division concluded that the Board provided the employee with reasonable accommodation as required by law, and that there was no probable cause to support the allegations.

* John V. Mallon successfully defended NJM Insurance Co. in the Superior Court of New Jersey, Hudson County against a lawsuit by a policyholder pursuing the denial of an auto theft claim. The case involved issues of insurance fraud and material misrepresentation. The jury concluded that NJM's coverage denial was warranted.

* Joseph B. O'Toole successfully defended an Allstate insured in a liability trial in the Superior Court of New Jersey, Passaic County. Although defendant collided with the rear of plaintiff's car, Joe demonstrated that plaintiff made a sudden and unexpected lane change in order to avoid another vehicle. The jury determined defendant was not responsible for the accident.

* On December 15, 2005, Michael A. Oppici achieved a dismissal with prejudice on behalf of North Hudson Regional Fire & Rescue ("NHRFR") in the Superior Court of New Jersey, Hudson County. Plaintiff, an on-duty Captain , was rendering assistance to a stabbing victim when a wound on his hand became exposed to the victim's blood. It was later discovered that the victim was HIV positive. Plaintiff alleged that NHRFR was liable for his emotional distress resulting from NHRFR's failure to follow procedures for exposure to blood borne pathogens. The plaintiff also asserted violations of New Jersey's CEPA and LAD statutes due to NHRFR's purported retaliation and harassment against him for complaining about NHRFR's failure to adhere to such procedures. Responding favorably to Michael's arguments that plaintiff's negligence claim was subject to the exclusivity provisions of the NJ Workers' Compensation Act and no evidence of harassment or retaliation existed, the Court dismissed the Complaint with prejudice.

* Thomas A. Morrone, representing an Allstate New Jersey Insurance Company insured, received a favorable award in a Personal Injury Protection (PIP) arbitration. The award took into account a defense for insurance companies whose policies include an internal appeals process for physicians disputing the denial of payment of PIP benefits. Tom argued that the physician should not be permitted to seek payment of medical bills against Allstate until after he exhausted Allstate's appeals process. Accordingly, the arbitrator dismissed the physician's premature demand for payment.

* Mitzy Galis-Menendez won an acquittal before the Honorable Hector M. Rodriguez, of the Jersey City Municipal Court for a client charged with assault. Mitzy was able to demonstrate that the complainant filed a false police report and concocted the charge in order to secure an advantage in an on-going domestic relations case between the parties.

* A. John Blake successfully defended a motorist in a three-day trial in the Superior Court of New Jersey, Hudson County, against claims of personal injury, including herniated cervical and lumbar discs. The plaintiff allegedly sustained his injuries while backing out of his driveway and was hit by the defendant, who was attempting to get to a parking spot in reverse. John demonstrated that plaintiff had a pre-existing injury, having undergone a lumbar discectomy in 1998. Although the jury found the defendant to be 74% liable, it awarded no damages to plaintiff. This case was reported in the January 2006 edition of VerdictSearch New Jersey.

* Joseph B. O'Toole obtained a verdict in favor of a New Jersey Manufacturer's insured following a three-day trial in the Superior Court of New Jersey, Hudson County. The parties stipulated liability but contested damages. Joe demonstrated that plaintiff's injuries did not satisfy the requirements of the Lawsuit Threshold. The jury unanimously decided that plaintiff did not suffer from a permanent injury as a result of the accident and returned a verdict in favor of the defendant.