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Six Ansell Grimm & Aaron PC attorneys named Super Lawyers

Ansell Grimm April 1, 2022

We are pleased to announce that six attorneys from the firm have been selected to the 2022 New Jersey Super Lawyers and Rising Stars lists.*

Selected as Super Lawyers again this year are Allison Ansell, Mitchell J. Ansell, and Andrea B. White.

Named as Rising Stars this year are Alfred M. Caso, Ashley V. Whitney, and Nicole D. Miller. This is Caso’s first selection, Whitney’s second, and Miller’s fourth consecutive selection as a Rising Star.

Each year, no more than 5% of lawyers in the state are selected to the Super Lawyers list, and no more than 2.5% are selected to the Rising Stars list.

The list of New Jersey Super Lawyers is based on surveys of more than 35,000 lawyers across the state who have been licensed to practice for five years or more.

*No aspect of this advertisement has been approved by the Supreme Court.

Cannabis Law Update

Ansell Grimm March 23, 2022

Excellence in Cannabis Law – NJCannabis Insider 2022 Business Awards

After enduring two years of the Covid-19 pandemic, states have begun dropping their most stringent restrictions and in-person events are slowly returning to the cannabis industry. On June 9, 2022, NJ Cannabis Insider will host New Jersey’s first-ever cannabis business awards gala at the Carteret Performing Arts Center. Businesses including Ansell Grimm & Aaron, have been nominated for their achievements in the field of law, social equity, building, innovation, and consultancy. Voting is open until March 31 at 11:59PM, and votes can be submitted once per day, per email address. The ballot can be found here. Please consider voting for us!

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Social Equity in the Municipal Landscape

Joshua Bauchner, a Partner serving as both Co-Chair of the Litigation Department and head of the Cannabis Law Practice group, was featured in a March 15, 2022 article for Law360 that discusses the challenges faced by social equity applicants as they navigate the patchwork of Municipal regulations across New Jersey. The article sheds light on how various aspects of the municipal approval process are incompatible with CREAMMA’s social equity goals and explores how the two might be brought into alignment. A copy of the article can be found here.

Athletes in Cannabis Regional Tradeshow

The Athletes in Cannabis NY/NJ Regional Tradeshow will be held May 6 – 7, 2022 at the Hilton Newark Airport. During this conference, there will be opportunities to meet with retired members of the NFL, NHL, NBA, and MLB, as well as growers, suppliers, retailers and more within t he hemp, medical, and adult-use cannabis spaces. There will also be an opportunity to hear from Ansell Grimm & Aaron’s very own, Joshua Bauchner. In addition to the two day conference, a networking soiree will be held at the end of the day on May 6th. Tickets for the event can be found here.

4th Annual Cannabis Symposium

On April 28, 2022, the New Jersey State Bar Association’s Cannabis Law Committee will host its 4th Annual Cannabis Symposium. The Program will be moderated by Joshua Bauchner of Ansell Grimm & Aaron and Michael Schaff of Wilentz, Goldman & Spitzer. This will be an excellent opportunity to hear from industry leaders on all things legal within New Jersey’s cannabis industry. Topics will include capital markets, labor & employment, hemp, and social equity solutions amongst other things. You will also hear from Chairwoman Dianna Houenou and Chief Counsel Christopher Riggs of New Jersey’s Cannabis Regulatory Commission. You can register to attend the symposium in person here or via webcast here.

CBA Cannabis Law Section Appointments

Attorney Zachary Windham, of Ansell Grimm & Aaron’s Cannabis Law Practice group, will take on the role of Chair for the Colorado Bar Association’s Cannabis Law Section. The CBA’s Cannabis Law Section was one of the first in the country, as Colorado was and is a leader in the cannabis space nationally, both in terms of industry participants and regulatory developments.

Cannabis Regulatory Commission Public Meeting

On Thursday March 24, 2022 at 1:00PM, the Cannabis Regulatory Commission will hold a meeting open to the public. At the meeting the Commission will consider delegating authority for orders to recall or destroy adult-use cannabis items or medicinal cannabis items, as well as for certain applications for facility modifications. The Commission will also consider applications for an adult-use conditional license. On the medical side, the Commission will also consider reissuance of a 2019 RFA award for a medicinal dispensary permit and expanded ATC certifications. The link to attend the meeting can be found here. Attendees can register to speak before 9:00AM on March 24th here.

New York Cannabis Update

Ansell Grimm February 25, 2022

New York Cannabis Retail Opt-out Window Expires

December 31, 2021 was the deadline for New York municipalities to opt-out of cannabis retail sales. In New York, municipalities were only permitted to opt-out of retail and consumption licenses, and citizens can overturn municipalities’ opt-out ordinances via ballot measure. Fewer than half of New York’s municipalities passed ordinances to opt-out prior to the December 31 deadline. A list of which municipalities have opted out and which have not can be found here.

Gifting Crackdown

The New York Office of Cannabis Management has begun sending cease-and-desist letters warning that conducting illegal sales could jeopardize one’s ability to obtain a license from the OCM in the future. The letters further warn that landlord’s hosting illegal activity on their premises may jeopardize their ability to house a licensed retail dispensary or on-sight consumption lounge in the future. Per the letters, “Illegal sales include the sale of cannabis products in-person at a retail location, online, via delivery, or at an event; and include so-called ‘gifting’ where consumers purchase non-cannabis items or services, such as membership in a club, and are then provided cannabis as part of the sale.” A copy of the enforcement letters can be found here.

Gov. Hochul Signs Conditional Cannabis Cultivation Bill

On Tuesday, February 22, 2022, New York Governor Kathy Hochul signed into law S8084A with the intention of bolstering the adult-use supply chain in preparation of New York’s eventual adult-use industry. S8084A creates the Conditional Adult-use Cannabis Cultivator and Conditional Adult-use Cannabis Processor licenses. Eligibility requirements include having a hemp license from New York’s Department of Agriculture as of Dec. 31, 2021, having grown and harvested hemp for at least two of the past four years, and participating in an environmental sustainability program and social equity mentorship program. These conditional licenses will expire by 2024, so New York hemp businesses will still need to eventually apply for adult-use licenses with the New York Office of Cannabis Management. A copy of S8084A can be found here.

NJ Medical Pot Hopefuls Say Agency Snubbed Court Ruling

Ansell Grimm February 23, 2022

Law360 recently reported on Ansell Grimm & Aaron, PC’s challenge to the New Jersey Cannabis Regulatory Commission’s decisions on remand after the Commission’s initial decisions were reversed by the Appellate Division on November 25, 2020. Below is the article.

By Sarah Jarvis

Medical marijuana permit applicants have urged a New Jersey appellate court to direct the state’s cannabis regulators to award them licenses to operate facilities, arguing the agency failed to change a single score after an appellate panel remanded the matter over the state’s flawed scoring system.

In Wednesday filings with the Superior Court of New Jersey’s Appellate Division, applicant GGB New Jersey LLC said the state’s Cannabis Regulatory Commission doubled down on previous flawed scoring and didn’t adjust any scores after GGB and other applicants made “comprehensive supplemental submissions” challenging the commission’s scores and their scoring process. The CRC also ignored concerns previously raised by the appellate court about a substantial degree of relative error “by declaring the concept inapplicable to its selection process,” GGB said.

“The commission asserted that the scoring is what it says it is and, strikingly, is beyond judicial review,” GGB said. “The commission’s cursory review also focused on only two of the numerous scoring criteria challenged by appellants, and either rehashed the same arguments that had already been rejected by this court or ignored appellants’ other arguments.”

GGB and the other appellants are seeking an order directing the CRC to award them licenses to operate alternative treatment centers, or medical marijuana dispensaries. Alternatively, they want the matter remanded to the CRC with the appointment of a special master to conduct an investigation, per the company’s filings.

Counsel for GGB called the CRC’s ruling on remand ridiculous and said the company coordinated with other appellants to file nearly identical briefs, but it wasn’t immediately clear Friday which parties had also lodged filings.

The companies had alleged in their initial appeal that the scoring process was inconsistent and arbitrary. The applications were scored on a 1000-point scale by a panel of six unnamed officials from the Department of Health and two other state departments, according to court records.

The appealing companies that received their scores after they were rejected found that the scores were hard to parse, with some judges giving full marks in sections where another judge gave zero points. The numbers were averaged, and the total score determined where the applicant fell in the ranking, so the zeroes brought the scores down dramatically, the companies said.

Once a score was awarded, there was no opportunity to challenge it, according to the companies.

In November 2020, a panel from the Superior Court of New Jersey’s Appellate Division handed down its decision in eight combined appeals from companies that failed to make the cut for the six dispensary licenses the state awarded in 2018. The panel said there were serious problems with the way regulators scored the applications and sent officials back to reconsider the applications of rejected companies, but didn’t specifically tell regulators how to handle the applications after the remand or how to change the application process.

But GGB argued Wednesday that the CRC carried out “a superficial exercise seeking only to justify its own prior, flawed conclusions without actually abiding by the court’s instructions or addressing any of the appellants’ concerns.” Last month, the CRC issued new final agency decisions reaffirming the denials issued to the appellants in the 2018 decisions.

“Despite this court’s opinion and the supplemental submissions, the commission concluded that the process this court found unacceptable had been free from error,” GGB said. “As a result, the commission continues to deprive appellants of due process and neither the public nor this court can have confidence in the commission’s licensing process and the final agency decisions it has reached.”

GGB argued among other things that a recommendation report issued last month by the CRC lacks substantive analysis of the scoring issues the appellants had raised, including “wildly divergent scores and/or zero or low scores” the appellants said were unwarranted compared to the high marks successful applicants received.

“This court should not have to act again in this matter, but the commission has proven that it cannot — and will not — conduct a full and fair review of appellants’ applications,” GGB said. “The commission has proven by its own actions that a further remand will be futile because the agency apparently regards itself as beyond the jurisdiction of this court.”

A representative of the CRC didn’t immediately respond to a request for comment Friday.

GGB New Jersey LLC is represented by Joshua S. Bauchner and Rahool Patel of Ansell Grimm & Aaron PC.

Counsel information for the CRC and other applicants wasn’t immediately available Friday.

The case is In the Matter of Application of Medicinal Marijuana Alternative Treatment Center of GGB New Jersey LLC, case number A-2219-18T4, in the Superior Court of New Jersey, Appellate Division.

–Editing by Dave Trumbore.

Ansell Grimm & Aaron 2021 Litigation Roundup

Ansell Grimm January 20, 2022

As the world continues to struggle with the coronavirus pandemic, and millions of small and mid-sized businesses continue to be confronted with unprecedented challenges, the attorneys in Ansell Grimm & Aaron’s Litigation Department assisted the Firm’s clients in protecting their businesses and livelihoods. Led by co-chairs Lawrence Shapiro and Joshua Bauchner, and assisted by attorneys Barry Capp, Anthony D’Artiglio, Stefan Erwin, Rahool Patel, Seth Rosenstein, and Ashley Whitney, the Department is pleased to share its numerous successes.

Bankruptcy Litigation & Debtor/Creditor Matters

Ansell Grimm & Aaron successfully compelled conversion of a meritless Chapter 11 Bankruptcy to a Chapter 7 and convinced the Court to vacate an extension of the automatic stay to principal’s of the Debtor company. Debtor filed a Chapter 11 petition in the District of New Jersey just before it and its principals were scheduled to face trial in the Western District of Missouri on multi-million dollar fraudulent scheme related to the sale of a business. Led by Joshua S Bauchner and Anthony J. D’Artiglio, the firm successfully convinced the Court to vacate an extension of the automatic stay to the principals of Debtor who sought to utilize the Bankruptcy to shield themselves from liability. Furthermore, we vigorously opposed confirmation of a meritless Plan of Reorganization, culminating in Debtor voluntarily converting its Chapter 11 reorganization to a Chapter 7 liquidation requiring the appointment of a Trustee to pursue our client’s and other creditors’ interests. As a result, the adversary complaint and related Bankruptcy matters were dismissed in New Jersey permitting the action to proceed to trial in Missouri.

Breach of Contract Litigation

The Ansell Grimm & Aaron team continued its efforts to recover sums owed to its clients in connection with finance agreements and contracts for the provision of certain services. We doggedly pursued our clients’ counterparties who absconded with loaned funds and enjoyed the benefit of services rendered, resulting in substantial recoveries and settlements for our dedicated and hard-working clients. By way of example, in one action brought on behalf of a trucking insurance agency that guaranteed payments for its client, the insured failed to make millions of dollars in payments under its finance agreement and created a new entity to hide its property and assets from collection. We aggressively tracked down the fraudulently transferred assets, brought the insured’s owner and his new entity into the action, and secured a favorable settlement prior to trial.

Partnership Dispute Litigation

The firm successfully obtained temporary restraints enacted to avoid continued irreparable harm to our client in a derivative action asserting claims against our client’s former business partners for, inter alia, unfair competition, fraud, and breach of fiduciary duty, based on their acts of engaging in direct competition with their shared business and allowing their family members to use the company’s proprietary information to siphon clients and profits from the business. The temporary restraints prevented all competition with our client’s business and provided the leverage necessary to negotiate a dissolution of the business which allowed our client to extricate himself and pursue independent ventures.

Real Estate Litigation

The firm works closely with real estate professionals across the region to protect their rights and put practices in place to minimize potential liability. In an action filed earlier this year on behalf of a Hudson County-based real estate broker, the Firm sued a national real estate developer after the failure to pay a referral fee offered under the developer’s agreement with local brokers. These efforts resulted in our client recovering a substantial portion of the referral fee owed to it, and the same broker subsequently engaged our team to revise their agreements used with clients — and to speak with the broker’s team of agents about mitigating risk and general best practices.

FINRA Matters

In addition to serving as a Financial Industry Resolution Authority (FINRA) Dispute Resolution Services arbitrator, associate Seth Rosenstein also practices before FINRA arbitration panels. In an arbitration filed against a national broker-dealer, the Firm sought an award requiring removal of incorrect and misleading information set forth on the broker-dealer’s Form U5 issued for our client, and for the expungement and removal of the information from FINRA’s Central Registration Depository and BrokerCheck system. Our efforts resulted in the broker-dealer issuing an amended Form U5 that removed the incorrect and misleading information, correcting an injustice that falsely besmirched our client’s reputation.

Police Benevolent Association Matters

Earlier this year, Attorney Ashley V. Whitney filed an appeal with the New Jersey Supreme Court challenging an opinion from the Appellate Division which upheld the termination of a police officer with no prior discipline for alleged violations of the Criminal Justice Information System through his use of full-disclosure vehicle registration searches despite the police department’s failure to identify a single full-disclosure search conducted without justification. The Appellate Division’s decision may have a lasting impact upon the law enforcement community as the performance of searches by police has not been significantly addressed by New Jersey Courts since the decision in State v. Donis, 157 N.J. 44 (1998). The decision is especially pertinent to the issues facing police as it comes on the heels of the Supreme Court’s decision in the matter of In re AG Law Enf’t Directive Nos. 2020-5 & 2020-6, 2021 N.J. LEXIS 486 (June 7, 2021), which upheld the New Jersey Attorney General’s Directives requiring the release of the names of police officers who receive major discipline.

Ms. Whitney continued her prior practice of the representation of police officers as a member of the PBA Legal Protection Plan at the Firm’s Woodland Park office, which included the defense of a high-ranking correctional police officer served with inflated disciplinary charges seeking termination. Following a departmental hearing and the presentation of favorable witness testimony, the employer decreased the proposed penalty from termination to suspension and we are awaiting a final decision.

Class Action Litigation

Ansell Grimm & Aaron successfully obtained dismissal of a nationwide class action in the District of New Jersey for lack of subject matter jurisdiction. Plaintiff brought claims against related to beauty products against the seller, shipper, and a host of individuals and entities. We filed a Motion to Dismiss pursuant to Federal Rule 12(b)(1) asserting the Court lacks subject matter jurisdiction as a result of a pre-litigation, full refund offer by our client to the aggrieved consumer. The Court agreed that the full refund offer made in the ordinary course of business operated to moot Plaintiff’s claims, and dismissed the entire action.

Public Entity Litigation

Ansell Grimm & Aaron successfully secured summary against Plaintiff on a multi-million dollar claim against the City of Bayonne, wherein Plaintiff alleged that Bayonne discriminated against him when it condemned and subsequently demolished a rental property he owned because it was unsafe. We successfully convinced the Court that the claims were barred by the statute of limitations, that the demolition did not constitute a taking within the meaning of 11 U.S.C. 1983, and that Plaintiff’s tort claims could not be asserted against a municipality as a matter of law, leading to dismissal of the entire case.

Ansell Grimm & Aaron Welcomes Lateral Hire to Woodland Park Office

We are pleased to announce Stefan J. Erwin, Esq. has joined Ansell Grimm & Aaron. Mr. Erwin is a Trial Attorney who came to Ansell from an established Newark practice where he represented the largest cities in New Jersey. Mr. Erwin brings nearly a decade of experience to the firm specializing in complex commercial litigation, criminal defense, appellate practice, labor and employment law, public entity, and civil rights. Mr. Erwin graduated from Rutgers University with dual degrees in Political Science and Criminal Justice, and then attended Rutgers Law School where he interned for the Honorable Noel Hillman in the United States District Court for the District of New Jersey. After law school, he clerked for the Honorable James Hely, J.S.C. of the Superior Court Law Division in Union County. He has taught public school children a course in Constitutional Law, founded a local community garden, and sat on the board of a charter school. Mr. Erwin has received several favorable jury verdicts for his clients in the Public Defender’s Office where he litigated cases from inception through appeal.

Best of the Best

It is with great pleasure that Ansell Grimm & Aaron, PC has been named “Best of the Best” Law Firm in the 2021 Official Community Choice Awards published by the Asbury Park Press. This recognition is greatly appreciated as it was not determined by the Bar or another professional organization, but rather by the community we serve on a daily basis.

Jenny Hallowell 1978-2021

Ansell Grimm December 23, 2021

The Shareholders and the entire AGA Team mourn the sudden and too early loss of Jenny Hallowell, a longtime member of the AGA Team. Jenny joined the Firm in 1996 and, after taking a short hiatus, rejoined the firm in 2006. Jenny worked her way up through various positions in the Firm, most notably as an Assistant to the Commercial Real Estate Department and then Legal Assistant to Mitchell J. Ansell, Esq., Chair of the Firm’s Criminal Defense Department for the past 15 years. Jenny passed suddenly and unexpectedly on December 21^st.

Jenny’s infectious smile and good humor, as well as dedication to the Firm, will be dearly missed by all. On a daily basis, Jenny positively impacted countless numbers of lives. Any time a client was in crisis, Jenny’s calming voice and reassuring demeanor would invariably help each and every client move forward. Our tears, hearts, and prayers go out to Jenny’s family, friends, and the myriad of people she has touched over the years.

Notice of Privacy Incident

Ansell Grimm December 9, 2021

Ocean, New Jersey August 23, 2021 – Although unaware of any actual or attempted access or misuse of individual’s information, Ansell Grimm is providing notice to certain individuals of an incident involving limited personal information.

Ansell Grimm recently learned of suspicious activity occurring within employees’ email accounts. Ansell Grimm immediately took steps to secure the email accounts and commenced an investigation to determine what happened. The investigation could not confirm what emails or attachments within those accounts were viewed or accessed by an unknown actor. Therefore, in an abundance of caution, Ansell Grimm reviewed the impacted email accounts to identify personal information within those accounts. This review was recently completed and Ansell Grimm then immediately began reviewing records to identify address information for individuals.

Ansell Grimm determined, through its investigation, that the information potentially at risk included a limited number of individuals’ names, addresses, Social Security numbers, dates of birth, employee identification numbers, bank or financial account information, credit or debit card information, driver’s license or state identification numbers, user name within login information, electronic signature, medical information, or health insurance information.

While unaware of misuse of any personal information, beginning on June 25, 2021, Ansell Grimm began mailing or emailing notices to those potentially impacted by this incident, and provided information about the event and steps that can be taken to safeguard one’s information. Specifically, Ansell Grimm encourages impacted individuals to remain vigilant against incidents of identity theft and fraud by reviewing their account statements and explanations of benefits for suspicious or anomalous activity. Any suspicious activity should be promptly reported to the appropriate provider, insurer, or financial institution.

Ansell Grimm has established a dedicated call center for individuals to contact with questions or concerns or to determine if they are impacted. This dedicated call center can be reached at 855-867-0665, Monday through Friday from 9am to 9pm Eastern, excluding U.S. holidays.

Notice of Privacy Incident

Stefan J. Erwin joins Ansell Grimm & Aaron

Ansell Grimm December 7, 2021

We are pleased to welcome Stefan J. Erwin, Esq. as an associate at Ansell Grimm & Aaron PC. Stefan is a trial attorney who came to Ansell Grimm from an established Newark practice where he represented the largest cities in New Jersey. Mr. Erwin brings nearly a decade of experience to the firm and focuses on Complex Civil Litigation, Electronic Discovery, Criminal, Appellate, Labor and Employment, Public Entity and Civil Rights work. Stefan graduated from Rutgers University with dual degrees in Political Science and Criminal Justice. He thereafter went to Rutgers Law School where he interned for the Honorable Noel Hillman in Camden’s Federal District Court. Before graduating Law school, he accepted a clerkship with the Honorable James Hely, J.S.C. of the Law Division in Union County. There, he also taught public school kids a course in Constitutional Law, founded a local community garden, and sat on the board of a charter school. Mr. Erwin has received several favorable jury verdicts for his clients in the Public Defender’s Office where he litigated cases from inception through appeal.

Cannabis Law December Update

Ansell Grimm December 6, 2021

Cannabis Regulatory Commission Notice of Applications

On Tuesday, November 9, 2021, the New Jersey Cannabis Regulatory Commission held a meeting at which they voted on and issued Resolution 2021-17, the Notice of Applications for Recreational Cannabis Businesses. This notice details the application requirements for Class 1 cultivators, Class 2 manufacturers, Cannabis Testing Laboratories, and Class 5 retailers. Class 1, Class 2, and Testing Laboratory applications will begin being accepted on December 15, 2021, at 9:00am. Class 5 applications will begin being accepted on March 15, 2022, at 9:00am. The Commission has not yet determined when applications will be accepted for Class 3 wholesalers, Class 4 distributors, and Class 6 delivery services. A copy of the Notice can be found here, and a recording of the meeting can be viewed here.

Cannabis Regulatory Commission Pre-application Webinar

On Tuesday, November 30, 2021, New Jersey Cannabis Regulatory Commission released a pre-recorded Webinar with further information on the upcoming acceptance of applications. This webinar is a continuation of the October webinar held by the Commission, and discussed in more detail the application requirements and process set to begin on December 15. The Commission also addressed frequently asked questions about the application process submitted in response to the November meeting. There was also a brief demonstration of the application portal that will be used by applicants. The Commission indicated that forms needed as part of applicants’ submissions will be posted to the Commission’s website in the coming days. The pre-recorded webinar can be viewed here.

NJSBA Analysis and Recommendations to the Cannabis Regulatory Commission

The New Jersey State Bar Association’s Cannabis Law Committee has submitted a report of analysis and recommendations to the Cannabis Regulatory Commission on its initial rules and regulations. The report is an analysis of both the current rules that have been issued by the Commission, as well as areas of regulation included in the Cannabis Regulatory Enforcement Assistance, and Marketplace Modernization Act that have not yet been addressed by the Commission’s rules. Topics include licensing considerations, municipal and land use issues, social equity challenges, public safety concerns, and how hemp and non-psychoactive cannabinoids will fit into the adult-use industry. A copy of the report can be viewed here.

Cannabis Regulatory Commission Meeting

The next meeting of the Cannabis Regulatory Commission will be held on Tuesday, December 7, 2021 at 6:00pm. Major agenda items for this meeting include the consideration of delegated authority for the 2018 RFA and the consideration of the 2019 RFA dispensary awards. You can register to speak during the public comments period of the meeting until noon on December 7. The Commission is also accepting written comments until December 8, at 5:00pm. Additional information about the December 7 meeting can be found here.

For additional information, or to apply, contact Joshua Bauchner (jb@ansellgrimm.com) or Zachary Windham (zlw@ansellgrimm.com) or call (973) 247-9000.

ANSELL GRIMM & AARON NEWSLETTER NOVEMBER 2021

Ansell Grimm November 1, 2021

Jennifer Krimko Secures Variance for New Tesla Gallery and Service Facility

Jennifer Krimko, a Shareholder and Co-Chair of the Firm’s Land Use and Zoning Department, recently represented the property owners for the upcoming Tesla automobile gallery and factory-authorized service facility in Eatontown. The project required approval by the Eatontown Zoning Board of Adjustment because car sales are not permitted in the borough’s zoning rules. In addition to the selling and servicing of electric vehicles, the store will provide a free-standing charging station open to the public along the Route 35 corridor.

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