NJCJI President and Chief Counsel Alida Kass penned an Op-Ed for ROI-NJ on non-disclosure agreement legislation. Read More Here
NJCJI President and Chief Counsel Alida Kass penned an Op-Ed for ROI-NJ on non-disclosure agreement legislation. Read More Here
A selection of the need-to-know civil justice news for March 10-16.
Murphy Proposes ‘Fiscally and Morally’ Balanced Budget, with $1.7B in New Tax Revenue
Ryan Hutchins | Politico New Jersey
New Jersey Gov. Phil Murphy on Tuesday proposed the largest state budget in history, saying he’ll deliver on his liberal agenda by raising $1.7 billion in new tax revenue, primarily by rolling back a small cut in the state sales tax, generating new revenue off the backs of millionaires and legalizing the sale of recreational marijuana.
How Phil Murphy’s Budget Proves You Elected a Liberal Governor
Samantha Marcus | NJ Advance Media for NJ.com
You can call it the very model of a modern progressive budget. From tax hikes on New Jersey’s wealthiest to tax credits for the working poor and legalization of marijuana, Gov. Phil Murphy’s first state budget proposal leaves virtually no progressive stone unturned.
Business Community has Concerns About Murphy Budget
Anjalee Khemlani | ROI
While some attendees walked away tight-lipped from the governor’s first budget address, others were optimistic that Gov. Phil Murphy has taken a step in the right direction for the state. The tax-heavy budget plan for fiscal year 2019 is a $2.7 billion increase from the previous year and includes some initiatives that could shock the economic system in the state.
County Bar Associations Back in Appointments Fold in Reworked Hughes Compact
David Gialanella and Charles Toutant | New Jersey Law Journal
Returning to what many in the profession said was an important tradition, Gov. Phil Murphy and the New Jersey State Bar Association have executed an agreement that provides for county bar associations to have a formal role in evaluating potential judicial and prosecutorial nominees.
Lawsuit Saying Home Depot Tricks Buyers of 4X4 Lumber is Deep-Sixed
Jonathan Stempel | Reuters
A federal judge on Monday dismissed a lawsuit accusing Home Depot Inc of deceiving shoppers about the size of its four-by-four lumber. U.S. District Judge Sharon Johnson Coleman in Chicago rejected plaintiff Mikhail Abramov’s claim that the largest U.S. home improvement retailer should be held liable for selling lumber as 4 inches thick by 4 inches wide, when the dimensions were actually 3-1/2 inches by 3-1/2 inches.
Follow @NJCivilJustice on Twitter for even more news.
On March 13, Gov. Murphy delivered first budget address to a joint session of the legislature, giving the state its first good idea of his priorities now that he is in office. From now until July 1, the legislature will be focused on passing a budget built on the foundation Murphy laid.
The Governor’s plan calls for $37.4 billion in State appropriations, a $2.7 billion increase over FY2018, which makes this the largest state budget in New Jersey history. The increase in spending is to be funded by economic growth and $1.7 billion in new tax revenue. Murphy recommends increasing the sales tax to 7%, implementing a millionaires’ tax, and legalizing the sale of recreational marijuana.
The judicial branch would get $10 million less than last year under the Governor’s plan. This will undoubtedly cause some handwringing and perhaps lead to increased filing fees as the courts struggle to pay for bail reform and the move to electronic filing.
Although there is already a lot of disagreement over Murphy’s proposed budget, there is a wide-spread, bi-partisan recognition that it’s time to make some changes that will rev up New Jersey’s economic engine, and foster a “stronger and fairer” economy. Some thoughtful tweaks to our legal system could improve our state’s legal reputation, and stimulate economic growth without raising taxes or increasing spending.
Additional Resources
FY2019 Budget in Brief from the Office of Management and Budget
Governor Murphy’s Press Release
Full Text of Governor Murphy’s Speech
Murphy Proposes ‘Fiscally and Morally’ Balanced Budget, with $1.7B in New Tax Revenue
Ryan Hutchins | Politico New Jersey
New Jersey Gov. Phil Murphy on Tuesday proposed the largest state budget in history, saying he’ll deliver on his liberal agenda by raising $1.7 billion in new tax revenue, primarily by rolling back a small cut in the state sales tax, generating new revenue off the backs of millionaires and legalizing the sale of recreational marijuana.
How Phil Murphy’s Budget Proves You Elected a Liberal Governor
Samantha Marcus | NJ Advance Media for NJ.com
You can call it the very model of a modern progressive budget. From tax hikes on New Jersey’s wealthiest to tax credits for the working poor and legalization of marijuana, Gov. Phil Murphy’s first state budget proposal leaves virtually no progressive stone unturned.
Business Community has Concerns About Murphy Budget
Anjalee Khemlani | ROI
While some attendees walked away tight-lipped from the governor’s first budget address, others were optimistic that Gov. Phil Murphy has taken a step in the right direction for the state. The tax-heavy budget plan for fiscal year 2019 is a $2.7 billion increase from the previous year and includes some initiatives that could shock the economic system in the state.
A selection of the need-to-know civil justice news for March 3-9.
Phil Murphy Creates Jobs Council Designed to Improve NJ Economy
Dustin Racioppi | northjersey.com
Gov. Phil Murphy on Tuesday ordered the creation of a jobs council designed to advise him and recommend ways to follow through on his central promise to improve the state’s economy.
Meet the General in Phil Murphy’s War on Donald Trump
S.P. Sullivan | NJ Advance Media for NJ.com
In the first year of Donald Trump’s administration, the president faced a barrage of legal challenges from left-leaning states on everything from immigration to the environment. For the most part, New Jersey — run by a Republican governor and vocal Trump ally — sat on the sidelines. But Gov. Phil Murphy came to office pledging to take on Trump, and he found his attack dog in Gurbir Grewal, a 44-year-old former state and federal prosecutor born to Indian immigrant parents in northern New Jersey.
Follow @NJCivilJustice on Twitter for even more news.
Gov. Phil Murphy has issued an executive order creating a new Jobs and Economic Opportunity Council tasked with providing the Governor actionable advice on how to improve the state’s economy and create more jobs. We are encouraging the Council to include legal reform in its recommendations since our state’s current legal climate is hindering economic growth.
Balancing the state budget and funding all the programs the state thinks are important is not an easy task. Revenue growth is steady, but slow, and we are already one of the highest taxed states in the nation, so there is little room to maneuver. To attract business investment and spur economic growth, the government must look at innovative policies that improve the economy without depleting needed revenue. One often-overlooked tool in the economic development toolbox is legal reform. Improving our state’s legal climate could improve our economy as well.
A predictable legal system that discourages lawsuit abuse gives businesses the ability to more accurately predict and budget for legal risk, which in turn allows them to free up capital for business expansion, innovation, and job creation.
85% of executives and attorneys surveyed by the U.S. Chamber of Commerce report that a state’s litigation environment is likely to impact important business decisions at their companies, such as where to locate or to do business. Unfortunately, these same business leaders ranked New Jersey as having one of the worst legal climates in the United States – 41st and falling.
Though the U.S. Chamber’s survey focused on larger businesses, an improved legal climate benefits businesses of all sizes. Contrary to popular belief, most companies being sued are not “deep pockets.” Lawsuits are frequently filed against small businesses. In fact, 43% of small business owners report having either been threatened with or involved in a civil lawsuit.
According to the U.S. government’s Small Business Administration, “The impact of litigation on businesses goes well beyond the purely financial impact of legal fees and damages. Most small business owners are invested personally in their businesses; litigation causes not just financial loss, but also substantial emotional hardship, and often changes the tone of the business.”
Our poor legal climate is also stifling innovation. When they fear lawsuits, entrepreneurs, inventors, and investors are overly cautious about launching new ventures and bringing innovative products to market. One need only watch the hit television show Shark Tank for a short time before seeing the “sharks” pass on an otherwise exciting product or idea because the legal risk is too great.
There is a wide-spread, bi-partisan recognition that it’s time to make some changes that will rev up New Jersey’s economic engine, and foster a “stronger and fairer” economy. Some thoughtful tweaks to our legal system could improve our state’s legal reputation, and stimulate economic growth without raising taxes or increasing spending.
A selection of the need-to-know civil justice news for February 24-March 2.
7 Things We Heard About Jersey’s Hot Topics During 2018’s Strangest Political Event
Matt Arco and Brent Johnson | NJ Advance Media for NJ.com
Where can you find handshakes, business cards, liquor shots, and arguments about legalized marijuana and gun control all in one place? The annual “Chamber Train.” Thursday was the New Jersey Chamber of Commerce’s 81st “Walk to Washington,” in which an eclectic group of lawmakers, lobbyists, and business executives packed 13 train cars that barreled toward Washington D.C. for a dinner with Gov. Phil Murphy and the state’s members of Congress. It’s one of the Garden State’s weirdest political traditions.
Here’s Why Big Changes Will Take More Than 100 Days in New Jersey
Donald Scarinci | Observer
“The First 100 Days” measuring stick is meaningless and irrelevant for Gov. Phil Murphy’s ambitious agenda. The Murphy “to-do” list is full of significant policy reforms, including raising the minimum wage to $15 an hour, providing mandatory sick leave, tightening gun laws, restoring funding for women’s health, legalizing marijuana, fully funding schools and removing barriers to voting.
Court Says No Relief From Affidavit of Merit Without Effort at Compliance
Charles Toutant | New Jersey Law Journal
A lawyer’s failure to file an affidavit of merit in a nursing malpractice suit is not an extraordinary circumstance warranting relief from filing deadlines, a New Jersey appeals court has ruled.
Second Toddler Enjoys Lawyer-Themed Birthday Party
Kevin Underhill | Lowering the Bar
Okay, it was weird enough that this happened once. See “Toddler Enjoys Lawyer-Themed Birthday Party” (July 31, 2015). Also, that was Louisiana, and people are … different there. But now we have a second and, apparently, completely unrelated example of this phenomenon, hundreds of miles away in Greenville, South Carolina.
Follow @NJCivilJustice on Twitter for even more news.
Gov. Murphy ran on a progressive, social-justice-orientated agenda, but as is the trend right now, offered few details on specific policy proposals. Until we hear Murphy’s budget address, and see his proposed budget, much of his agenda remains a mystery. However, we are getting some clues about what his legal policy plans are based on the Law & Justice report from his transition committee.
It will be either February 27 or March 13 when Gov. Murphy lays out his policy priorities for the coming year in his first budget address. The exact date is still unknown because state law requires the budget to be delivered to the Legislature on or before the fourth Tuesday in February, but lawmakers traditionally pass a bill relaxing that date during the first year of a new governor’s term. Until that time, any insight we have into the governor’s plans for the legal system comes from his transition committee’s report on law and justice.
The report, which was crafted by his 500+ member transition team, is one of 14 such reports, each focusing on a different issue area. Murphy is under no obligation to implement or even accept the recommendations in the reports, but they give a sense of what the administration aspires to.
The Law & Justice report focuses mostly on social justice and criminal justice reform, but it also talks a bit about the relationship between the governor and the judiciary. This is a touchy subject in the New Jersey legal community because former Gov. Christie bucked tradition and appointed new people to the state’s Supreme Court instead of re-appointing sitting justices. This caused a rift between Christie and Senate leaders that left one seat on the high court vacant for years, and overloaded the dockets of several lower courts who had to make do without a full complement of judges.
Things were smoothed over after Christie reappointed Chief Justice Rabner instead of naming someone new, but there is still tension in the air. And there probably will be until we see what happens when Justice Patterson’s initial appointment expires later this year. The report reflects this uncertainty in its fourth priority: “Restore the relationship of respect between the Governor and an independent judiciary.”
It specifically recommends that Murphy:
We agree that judges should be qualified and have diverse backgrounds and pre-bench experiences. A fair legal system depends upon independent, capable judges at the trial, intermediate appellate, and Supreme Court levels.
While there is nothing wrong with renewing the Hughes Compact and encouraging the governor to consult with the New Jersey State Bar Association, we would remind the governor that it is not mandatory for lawyers in our state to join the NJSBA. There are a wide variety of legal organizations in our state that he can work with, including the New Jersey Civil Justice Institute.
Our organization is also available to advise policy makers about how to address the variety of other issues in the report, like equal pay for women. As NJCJI has repeatedly pointed out to policy makers, it is possible to advance many policy goals without creating new ways and reasons to sue businesses.
It is also of note that the last priority in the law and justice report is: “Participate in litigation to protect New Jersey’s residents from harmful national policies.” The report recommends the state join a laundry list of lawsuits other states have brought against the federal government. It goes on recommend that the Attorney General “[create] a Solicitor General position within the Department of Law and Public Safety to oversee the State’s litigation in federal and state courts of appeal and the U.S. Supreme Court and possibly to oversee affirmative litigation against the federal government.”
We will look for evidence of these priorities in Murphy’s budget, and in any legislation he champions. And we, along with the rest of the state’s legal community, will be watching to see what happens when Patterson’s term expires.
A selection of the need-to-know civil justice news for January 13-19. Continue reading
Both equal pay and wage theft are hot topics in the new legislative session, and top priorities of Gov. Murphy’s administration. We are pleased to see initial efforts being framed in a thoughtful way that advances core objectives without generating unnecessary litigation. Continue reading
On Tuesday, January 9th, the 218th Legislative Session was opened for the transaction of business. Next Tuesday, the 16th, Gov.-elect Phil Murphy and Lt. Gov.-elect Shelia Oliver will be sworn in. The following is a snapshot of what we know about the changes that come along with a new session and executive.
The Legislature
120 Senate and Assembly members were sworn into office. The Democrats now have a majority of 54-26 in the Assembly, and 25-15 in the Senate.
There are nine new Assembly members and five new Senators. NJ Spotlight has a great article that introduces the new members of both houses.
Assemblyman Craig Coughlin replaced Assemblyman Vincent Prieto as the speaker of the lower house. Senate President Stephen Sweeney will continue to lead the Senate. Both leaders have already released their committee assignment lists:
Assembly Committee Assignments
NJ Spotlight has another good piece on what impact some of the key appointments might have.
The Murphy Administration
Governor-Elect Murphy is still in the process of staffing up, and has yet to announce many specific policy priorities. We expect to hear more specifics from Murphy during his budget address in February.
The cabinet official we work most closely with is the Attorney General, which Murphy has nominated Bergen County prosecutor Gurbir Grewal for.
Time To Get To Work
During the past few years we have had success working with our friends and allies to block a number of bills that would have imposed unwarranted liability on the state’s business community, and where possible, offering amendments to accomplish core objectives while avoiding the adverse consequences of unnecessary litigation. We look forward to continuing that work with the new legislature and Governor-Elect Phil Murphy’s administration.