Zachary Windham

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.

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.

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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Cannabis Law October Update

Ansell Grimm October 19, 2021

New Jersey Weekly Bar Report

On Monday, October 18, 2021, the New Jersey Law Journal’s weekly Bar Report spoke with NJSBA Cannabis Law Committee Co-Chairs Joshua S. Bauchner, Esq. (of Ansell Grimm & Aaron, PC) and Lisa Gora, Esq. (of Wilentz, Goldman & Spitzer, PA) about the legal landscape surrounding the new state law and what can be expected in the early days of this new industry. The Report includes a Q&A that touches on the new law’s impact on attorneys, opportunities for New Jersey entrepreneurs, municipal involvement, and current expected timelines. A copy of the report can be viewed here.

Cannabis Regulatory Commission Meeting

On Friday, October 15, 2021, the New Jersey Cannabis Regulatory Commission held a meeting during which they voted on and issued recommendations for applicants for Cultivator and Vertically Integrated Licenses as part of the 2019 RFA round. The Commission did not take any action with regard to applicants for Dispensary Licenses. Initially, it was expected that five (5) Cultivator Licenses and four (4) Vertically Integrated Licenses would be awarded. At the meeting, the Commission announced that they would be recommending double the number of Cultivator Licenses. The Commission stipulated that these Cultivator Licensees will need to operate for one (1) year prior to being able to begin adult-use sales. A recording of the meeting will be available on the Commission’s website shortly.

New Jersey Law Journal

On Monday, October 18, 2021, the New Jersey Law Journal published HIGH-lights: A Look at Personal Use Cannabis Rules Adopted by the Cannabis Regulatory Commission. The article, a collaboration between Zachary L. Windham, Esq., of Ansell Grimm & Aaron, PC and Lisa Gora, Esq., of Wilentz, Goldman & Spitzer, PA, focuses on the upcoming adult-use application process in light of the initial regulations released by the Cannabis Regulatory Commission. The article discusses who will receive “prioritization” in the application process and the impact of receiving such priority, as well as surmising when and what to expect for application submission window(s) given the limited details on the topic within the Commission’s initial rules. A copy of the article can be found here.

2018 RFA Awards Still Outstanding

Despite the Commission’s award of 14 new licenses to applicants from the 2019 RFA, the results of the 2018 RFA are still pending. It has been nearly three (3) years since several rejected applicants filed suit against the state due to lack of transparency and endemic errors in the scoring process implemented by the Department of Health. Last November, a three-judge appellate court vacated the initial 2018 awards and ordered the DOH to develop a new rating system for applications and to increase transparency. The responsibility for reevaluating these applications has been transferred to the Cannabis Regulatory Commission. The Commission has stated that the 2018 RFA applications are still under review. Appellants recently wrote the CRC requesting information on resolving this three-year old matter, however there is no indication of when this review might be completed.

Cannabis Regulatory Commission Cannabis Informational Webinar

On Wednesday, October 13, 2021, the New Jersey Cannabis Regulatory Commission held an informational webinar. During the webinar, the Commission briefly explained the equity and safety provisions in the initial rules as well as providing general guidance for municipalities. The Commission also discussed basic application requirements and what preliminary steps businesses can take to prepare for applying. The biggest news from the webinar was likely the Commission’s statement that Class 5 Retail License holders will be permitted to provide delivery services for their own products without holding a separate Class 6 Delivery Service License. A recording of the webinar can be viewed here.

NJSBA CLE: Latest Developments In Cannabis Law

On Thursday, October, 28 2021 the New Jersey State Bar Association’s Cannabis Law Committee will be hosting a seminar to discuss The Latest Developments In Cannabis Law, including the Cannabis Regulatory Commission’s initial regulations for the industry. In addition to the personal use cannabis regulations, there will be a panel of township officials to discuss Municipalities and Town Councils, as well as a discussion of corporate and real estate transactions; whether that be the acquisition or disposition of a cannabis operation or the real estate considerations when acquiring real property for, and when leasing to or by, a cannabis operation.

Program Chairs are Joshua S. Bauchner, Esq. of Ansell Grimm & Aaron, PC, and Lisa Gora, Esq. of Wilentz, Goldman & Spitzer, PA. Speakers will include John Barree AICP, PP of Heyer, Gruel & Associates, Jack Fersko, Esq. of Greenbaum Rowe Smith & Davis, LLP, Mollie F. Hartman Lustig, Esq. of Cappuzzo, PC, Michael A. Hoffman, Esq. of The Hoffman Centers, PC, Mayor Ryan Martinez of Butler, Morris County, Ronald P. Mondello, Esq. of Law Offices of Ronald P. Mondello, Robert E. Schiappacasse, Esq. of Sills Cummis & Gross P.C, Mayor Domenick Stampone of Haledon, Passaic County, and Sarah Trent, Founder and CEO of Valley Wellness.

For more information and to register for the NJICLE Seminar – Latest Developments In Cannabis Law click here.

Ansell Grimm & Aaron Roundup July 2021

Ansell Grimm August 12, 2021

Mitchell Ansell Featured in Industry Magazine

Mitchell Ansell, Shareholder, and Chair of the Criminal Defense Department, recently was featured as a power player by Industry Magazine in their July/August 2021 issue. This inclusion provides an opportunity to more personally know a power player who prides himself on the lasting impact and positive influence he provides to clients.

Industry Magazine covers anything and everything of interest for influential tastemakers and trendsetters across New Jersey and New York, from fashion and entertainment to lifestyle and health, to travel and business. The article is available here.

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NJSBA Submits Report & Recommendations to the NJCRC

The New Jersey State Bar Association’s Cannabis Law Committee provided the New Jersey Cannabis Regulatory Commission (“CRC”) with a report and recommendations regarding the CRC’s implementation of the New Jersey Cannabis Regulatory Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”). The report covers a broad range of topics, from macro-issues like marketplace and licensing regulations to more micro-issues related to expungements and CREAMMA’s impact on family law matters. Both Joshua Bauchner and Zachary Windham (pictured) of AGA’s Cannabis Law Practice Group, contributed to the report and recommendations. A copy of the report is available here.

Michael Benedetto Closes on Ocean Block Lot Sale

Michael Benedetto, Managing Partner and President of the Firm, who also serves as the Chair of the Commercial Real Estate Department and the Corporate, Finance, & Banking Department, recently served as counsel to the Seller in an off-market sale of a parcel of property that sits approximately 300 feet from the Atlantic Ocean in Long Branch, New Jersey. The property was the last parcel for an ocean block assemblage of just over 1.8 acres. The purchaser of the property was PV Motel, LLC, an affiliate of Kushner Companies, who reportedly intends to construct an oceanfront hotel on the site along with three other lots which make up the assemblage.

Joshua Bauchner Featured in Commerce Magazine

Joshua Bauchner, a shareholder who serves as both Co-Chair of the Litigation Department and head of the Cannabis Law Practice Group, was featured in the July 2021 issue of Commerce Magazine as part of the article Cannabis: A Growing Business Sector in the Garden State? Josh was one of several influential attorneys from across New Jersey asked to discuss what this budding industry means for entrepreneurs right now. Commerce Magazine is the flagship publication of the Commerce & Industry Association of New Jersey. The article is available here.x

Ashley Whitney Files PBA Appeal with NJ Supreme Court

Ashley Whitney of AGA’s Woodland Park office recently 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.

Seth Rosenstein Appointed as FINRA Arbitrator

Seth Rosenstein of AGA’s Woodland Park and White Plains offices was recently appointed a FINRA Dispute Resolution Services Arbitrator. Having practiced in all aspects of securities class action litigation before state and federal courts throughout the United States, as well as representing Fortune 500 financial services companies in arbitration actions brought before FINRA arbitration panels, Mr. Rosenstein will now hear disputes subject to FINRA jurisdiction — which will supplement his unique perspective and experience representing aggrieved investors and financial services professionals. FINRA representation is one component to Mr. Rosenstein’s multi-disciplined practice, which continues to include commercial litigation, cannabis law, and disputes concerning real estate and home improvement contractors.

Roy Hibberd Counsels Insurance Company Acquisition

Roy Hibberd, corporate counsel in the firm’s Ocean office, recently provided legal counsel to McCue Captains Agency of Little Silver, NJ, in its acquisition by World Insurance Associates LLC. The acquisition was announced on July 1, 2021. As a Top 100 Insurance Brokerage, World Insurance Associates’ acquisition will provide McCue the opportunity to expand their national presence while continuing to provide personalized services in Property, Liability, Life and Benefits insurances for both businesses and individuals.

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Jennifer Krimko Helps Hillel Win Expansion Approval

Jennifer S. Krimko, Esq., Co-Chair of the Firm’s Land Use and Zoning Department, recently secured approval for an expansion of the Hillel School campus in Ocean Township, as well as the construction of a new, state-of-the-art firehouse for the Township’s Fire District, at no cost to the taxpayers. The approval includes the construction of: a new, approximately 56,613 square-foot, three-story high school building; approximately 15,872 square foot addition to the school’s early learning center building; and approximately 6,725 square-foot, new fire station building. Additionally, construction of tennis courts, a basketball court, new parking, drainage structures, landscaping, and related site improvements were also approved.

You can view the video of the Board’s decision, including a digital rendering of the expanded facility here.

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Cannabis CLEs

On July 22 Joshua Bauchner participated as an invited speaker for a webinar hosted by the New Jersey State Bar Association’s Cannabis Law Committee. The webinar, The Ins and Outs of Licensing of Recreational Cannabis Businesses in New Jersey, addressed the parameters set out by the New Jersey Cannabis Regulatory Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”) and what those parameters mean for potential licensees.
The panel discussed the six classes of licensure, microbusinesses, impact zones, municipal land use, and anticipated regulations from the Cannabis Regulatory Commission (“CRC”).
Josh also moderated a CLE on August 5, 2021, as part of the NJ Society of CPA’s day-long Cannabis Conference. The panel will discuss “The Legal Lifecycle of a Cannabis Business.”

Ansell Grimm & Aaron is Hiring

Ansell Grimm & Aaron PC is seeking a Law Clerk to work in our Real Estate Department. For more information or to apply, please visit us on LinkedIn .

Cannabis Law Update

Ansell Grimm July 16, 2021

NJSBA Cannabis Law Committee Issues Report and Recommendations to NJ Cannabis Regulatory Committee

On Tuesday, July 13, 2021, the New Jersey State Bar Association Cannabis Law Committee provided the New Jersey Cannabis Regulatory Committee with a comprehensive Report detailing issues with the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”), and proposing recommendations to resolve those concerns. The Report was presented with the goal of clarifying apparent ambiguities, providing further transparency, and remedying apparent inconsistencies identified in CREAMMA.

In doing so, the Report identifies twelve (12) overarching topics on various issues of concern and provides a recommendation for each; including: (i) lab testing, (ii) regulation of cannabis, (iii) marketplace regulations of recreational cannabis, (iv) marketplace regulation pertaining to hemp, (v) licensing, (vi) microbusiness and conditional licensing, (vii) municipal/land use, (viii) taxes, (ix) taxes, (x) impact zones, (xi) acute impairment considerations, (xii) expungement, and (xiii) family law considerations.

Ansell Grimm & Aaron attorneys Joshua S. Bauchner, co-chair of the Cannabis Law Committee, and Zachary L. Windham, a committee member, led the effort in conjunction with Lisa Gora, co-chair, and Sarah Trent, secretary. The Report was informed by the contributions of numerous Committee members across multiple disciplines, as reflected in the appendix.

A copy of the Report is available here:
Report and Recommendations to
NJ Cannabis Regulatory Commission

The Ins and Outs of Licensing of Recreational Cannabis Businesses in New Jersey

On Thursday, July 22, the New Jersey State Bar Association’s Cannabis Law Committee will be hosting a webinar to discuss what you need to know about licensing in the State’s new recreational cannabis industry. The webinar will address the industry parameters set out by New Jersey’s Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”) and what those parameters mean for potential licensees. Topics will include the six classes of licenses, microbusinesses, impact zones, municipal land use, and anticipated regulations from the Cannabis Regulatory Commission (“CRC”). You will hear from Jordan Asch, Esq. of Asch Legal LLC, Joshua S. Bauchner, Esq. of Ansell Grimm & Aaron, PC, Lisa Gora, Esq. of Wilentz, Goldman & Spitzer, PA, Charles Latini of L&G Planning, LLC, and Sarah Trent, Esq. of Valley Wellness.

For more information and NJICLE Webcast- The Ins and Outs of Licensing of Recreational Cannabis Businesses in New Jersey click here.

Ansell Grimm & Aaron’s Cannabis Law Practice helps clients, at every stage of their cannabis business’ development, to navigate the complex legal landscape including production, sale, use, regulation and legalization. Please contact Joshua S. Bauchner, Esq. (jb@62q.f7d.myftpupload.com) or Zachary L. Windham, Esq. (zlw@62q.f7d.myftpupload.com) at (973) 247-9000 for additional information.

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Client Alert: Municipalities’ Implementation Of CREAMMA
What You Need To Know

Ansell Grimm June 15, 2021

Q. When do we need to decide whether to opt in or out?
A. Municipalities have 180 days from the effective date (February 22, 2021) of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (CREAMMA) to opt-out of specific cannabis license Classes, or by August 21, 2021.

Q. What happens if we do not make a decision before the opt-out deadline?
A. If no action is taken, Class 5 license activity (cannabis retailers) will be a conditional use in all commercial zones or retail zones and Class 1, 2, 3, 4, and 6 license activities (cultivator, manufacturer, wholesaler, distributor, & delivery respectively) will be permitted uses in all industrial zones. In effect, taking no action equates to opting-in.

Q. Can we choose to opt-out of specific license Classes?
A. Yes. A municipality may prohibit the operation of any one or more license Classes. However, the license Class(es) you do permit will fall under the default zoning requirements without additional municipal action.

Q. Can we prohibit adult-use cannabis establishments if we already have an Alternative Treatment Center dispensary in our municipality.
A. Yes. However, a prohibition ordinance could impact the Alternative Treatment Center’s ability to participate in the adult-use cannabis market depending on the license Class(es) you prohibit in the ordinance.

Q. Can we limit the number of licenses of a particular Class?
A. Yes. Municipalities can restrict the number of available licenses for each Class of license permitted in the Municipality.

Q. What sort of distance requirements can we place on cannabis licenses?
A. You can require that cannabis licenses be minimum distances from places like schools, houses of worship, childcare facilities, substance rehabilitation facilities, etc. You can tailor the requirements by cannabis license class or location, requiring licensees maintain a certain distance. You can also require that cannabis licensees be a minimum distance from other cannabis licensees and specify by license class.

Q. Can we regulate the signage/store front of a cannabis licensee?
A. Yes. You can regulate a cannabis establishment’s signage as you would any other business in your municipality.

Q. Can we create a local licensing process for potential licensees?
A. Yes. Municipalities can impose their own local licensing requirements as part of the restrictions on the number of cannabis licenses.

Q. Can we make state licensure a requirement for municipal approval?
A. No. CREAMMA dictates that a municipality shall notify the Cannabis Regulatory Commission that it either approves or denies each application forwarded to it. Therefore, municipal approval is a prerequisite to receiving a state license from the Commission.

Ansell Grimm & Aaron Round Up: June 2021

Ansell Grimm June 3, 2021

AGA Secures Dismissal Of Nationwide Class Action

Ansell Grimm & Aaron attorneys Joshua S. Bauchner and Anthony J. D’Artiglio obtained dismissal of a putative, nationwide class action for lack of subject matter jurisdiction in New Jersey federal district court. The case, Cindy Adam v. Frank V. Barone, et al., Civ. A. No.: 3:20-cv-10321-MAS-LHG, concerned claims alleging that Defendants violated various California and Federal consumer protection statutes through their online sale of natural beauty products, including seeking to certify a nationwide class alleging violations of over 40 different States’ consumer protection statutes. Following Ansell Grimm & Aaron successfully securing a transfer of the case from the Northern District of California to the District of New Jersey, Defendants filed a Motion to Dismiss arguing, among other things, that a pre-litigation offer of a full refund for the purchased products made in the ordinary course of business mooted plaintiff’s claims and divested the Court of subject matter jurisdiction.

The Court rejected plaintiff’s argument that the U.S. Supreme Court’s decision in Campbell-Ewald Co. v. Gomez, did not moot the claims because, in that case, the Supreme Court held that an unaccepted offer of judgment or an unaccepted settlement offer could not defeat subject matter jurisdiction. Ansell Grimm & Aaron explained that Campbell-Ewald does not apply because a pre-litigation, ordinary course offer of a refund is not a “settlement offer” – a bright-line distinction between pre-litigation refunds and post-litigation settlements. The Court agreed explaining that it was declining “to extend Campbell-Ewald as Plaintiff suggests, where a refund was offered in the ordinary course of business by a representative of the company during a phone call with a customer.” As a result, the offer of a refund mooted Plaintiff’s claims such that there was no “case or controversy” permitting Article III subject matter jurisdiction for the Court. By securing dismissal at the pleading stage, Ansell Grimm & Aaron saved its clients substantial time and expense which otherwise would have been wasted defending a meritless, nationwide class action.

Ansell, Grimm & Aaron attorneys regularly engage in class action defense arising from frivolous claims and seek to obtain a similarly quick and cost-effective result for our clients. Of course, some matters do have merit, in which case our attorneys work to narrow the claims or class towards minimizing damages and obtaining a favorable settlement.

For additional information on Ansell Grimm & Aaron’s class action practice, please contact Joshua S. Bauchner, Esq . (jb@62q.f7d.myftpupload.com) or Anthony D’Artiglio, Esq. (ajd@62q.f7d.myftpupload.com) at (973) 247-9000.

AGA Attorney Testifies Before State Cannabis Regulatory Commission

Ansell Grimm & Aaron attorney Zachary L. Windham testified before the Cannabis Regulatory Commission on June 1, 2021. His testimony concerned whether limitations should be imposed on the potency of concentrates and edibles that will be sold in New Jersey marijuana dispensaries. Zachary explained: “The path of least resistance from a consumer standpoint would be to purchase all of their cannabis products from the unregulated supplier, who could provide them with a wider variety of product types.” Accordingly, Zachary recommended against restrictions favoring effective labeling and consumer education. Media coverage concerning his testimony is available here.

Our dedicated Cannabis Law Practice Group stands ready to assist applicants with ensuring they are prepared when the Request for Applications is issued for adult use cannabis, as well as for additional medical licenses. Please contact Joshua S. Bauchner, Esq. (jb@62q.f7d.myftpupload.com) or Zachary L. Windham, Esq. (zlw@62q.f7d.myftpupload.com) at (973) 247-9000 to get started today.

George A. McGowan III Joins AGA As Corporate Attorney

George A. McGowan, III, joined as counsel with the firm. His practice is concentrated in areas of corporate and commercial law (both public and private companies), technology, and transactional matters including Mergers and Acquisitions, Trusts and Estates, Financing and Real Estate. His client roster includes a major data center, a streaming media company, several international manufacturing companies, professional practices, and closely held businesses. Mr. McGowan brings our clients both his private practice expertise with Fortune 500 Company knowledge and experience.

He is a graduate of Manhattan College with a Bachelor’s of Science in two majors, Finance and Marketing. He graduated from Seton Hall University School of Law with a J.D. He clerked for the Honorable Patrick McGann, in the Chancery-General Equity Court in Monmouth County. He is admitted to practice in the State of New Jersey and its Federal Courts.

Nicholas J. Falcone Joins AGA As Counsel In The Land Use Department

Nicholas J. Falcone is counsel to the firm with the concentration of his practice relating to zoning and land use, and the representation of clients in all phases of governmental approvals for site plans, subdivisions and variances before municipal planning and zoning boards, as well as appeals therefrom. Before joining the firm Mr. Falcone represented planning boards and school districts in Monmouth County, as well as business statewide. Earlier, Mr. Falcone worked at the national law firms Fox Rothschild and the labor and employment boutique Grotta, Glassman and Hoffman, where his practice focused on labor and employment law, representing employers in state and federal courts in all aspects of civil litigation, administrative hearings, and provided HR counseling.

After law school graduation, Mr. Falcone was law clerk to the Honorable Martin L. Greenberg, Superior Court, Chancery Division: General Equity and Probate, and to Honorable Seymour Margulies and Honorable Fred J. Theemling, Jr., Superior Court, Civil Division, Hudson County, New Jersey. While in law school, Mr. Falcone worked as a law clerk at the firm of former U.S. District Court Judge Herbert J. Stern.

Mr. Falcone has had life long association with the arts. Prior to becoming an attorney, Mr. Falcone worked in the Broadway theater, including for the legendary director/producer Harold Prince, film and opera communities. Mr. Falcone served on Board of Directors of the Garden State Film Festival, 2009-2019, including as Chairman of the Board and Chairman and of the Programming Committee for the last six of those years.