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Vol. 4 No. 146 – JULY 31, 1996 STATE COURT CASES CORPORATIONS 12-2-9737 B.C. Ritchie Co. Inc., et al. v. Arthur Moschella, App. Div. (29 pp.) Evidence supports judge s finding that defendant had improperly diverted or converted corporate funds to his own use while still employed there, and thereafter, through a competing entity, deprived the corporation of profits rightfully belonging to it, and award of diverted funds is affirmed, although the award of lost profit damages is reversed and matter remanded for recomputation and reconsideration of punitive damages. (For a related case see DDS No. 38-2-9744 below.) DEBTOR/CREDITOR — DEFICIENCY JUDGMENTS 15-2-9738 The Trust Co. of N.J. v. Martha Gold, et al., App. Div. (10 pp.) Judge did not err in refusing to vacate a deficiency judgment entered against loan guarantors pursuant to a forbearance agreement, since guarantors proffer of new evidence of bank s supposed FIRREA violation was insufficient, the guarantors had received the benefit of their forbearance settlement, and demonstrated no compelling reasons for setting it aside. DEBTOR/CREDITOR — TURNOVERS 15-2-9739 Korman Assocs. v. Carl F. Jacobelli, Co., et al., App. Div. (7 pp.) Based upon a reading of loan documents involved in the case, the judge correctly found that the monies in a bank account should be turned over to depositor s judgment creditor, who had priority over the bank s entitlement to the funds. INSURANCE — P.I.P. — TAVERNS Now on Counsel Connect 23-1-9740 State Farm Mut. Auto. Ins. Co. v. Licensed Beverage Ins. Exch., Supreme Ct. (20 pp.) Under N.J.S.A. 39:6A-9.1, the reimbursement provision of the N.J. Automobile Reparation Reform Act, a tavern is a tortfeasor and is potentially responsible for reimbursing personal injury protection benefits paid by a private passenger automobile carrier to one of its insureds because of the tavern s negligence. LABOR AND EMPLOYMENT — CONFLICT OF LAWS 25-2-9741 Victoria E. Neely v. Credit Lyonnais USA N.Y. Branch, et al., App. Div. (7 pp.) The trial court correctly held in the case that New York had the greater interest in regulating employment and business operations within its borders, and, applying New York law, properly dismissed New Jersey plaintiff s complaint seeking damages for breach of an employment contract, negligence, intentional wrongdoing and denial of medical benefits. LABOR AND EMPLOYMENT — UNEMPLOYMENT COMPENSATION 25-2-9742 Fannie M. Romano v. Bd. of Review, et al., App. Div. (5 pp.) Appellant was correctly disqualified from receiving additional unemployment benefits because she failed to notify the Department of Labor of her intention to enter training within the time limits provided by N.J.S.A. 43:21-60(d)(1) and N.J.A.C. 12:23-5.5. REAL ESTATE 34-2-9743 Goldstar E.B. VII Inc., etc. v. Harold D. Herbert, et al., App. Div. (7 pp.) Interpreting the documents in a real estate closing subject to a subdivision approval, the judge properly denied plaintiff s claims for repayment of interest and reimbursement for taxes. WILLS, TRUSTS AND ESTATES 38-2-9744 In the Matter of the Estate of Jean R. D Esterhazy, Deceased, App. Div. (20 pp.) The trial judge properly sustained the validity of decedent s will, finding that there were no grounds for upsetting the decedent s decision to disinherit her son because of his alcoholism, even though decedent s son-in-law may have painted a false picture of the son to the decedent about certain business ventures, since there was no indication that the son-in-law s actions had anything to do with decedent s decision. (For a related case see DDS No. 12-2-9737 above.) WORKERS COMPENSATION 39-2-9745 Paulo Soares v. United Constr. Co., App. Div. (7 pp.) Compensation judge correctly determined that petitioner s injuries arose out of and in the course of his employment, entitling him to benefits, since petitioner s deviation from work to operate a work-related all-terrain vehicle for his own joy ride was not so serious as to constitute an abandonment of his employment. CRIMINAL LAW AND PROCEDURE 14-2-9746 State v. Juan DeJesus Rodriguez, et al., App. Div. (6 pp.) The court should not have ordered the state to translate into English and transcribe 264 Spanish audiotapes of conversations obtained through electronic wiretaps and interceptions for the defendants, since a fair trial does not require the state to shoulder this formidable burden, and the Spanish-speaking defendants can listen to the tapes and determine for themselves what may be exculpatory or otherwise pertinent to their defense. CRIMINAL LAW AND PROCEDURE — MEGAN S LAW Now on Counsel Connect 14-1-9747 In the Matter of the Registrant, C.A., App. Div. (50 pp.) A charge that was dismissed as a part of a plea bargain can be used in determining sex offender s tier classification by reliable documentary hearsay evidence. The Registrant Risk Assessment Scale is a reliable and useful tool that the state can use to establish its prima facie case concerning a registrant s tier classification and manner of notification. FEDERAL COURT CASES BANKRUPTCY 42-8-9748 In re: John C. Martin, et al., Debtors; Jo Ann Myers, et al. v. John C. Martin, et al., Third Cir. (12 pp.) The bankruptcy court did not abuse its discretion by disapproving a stipulation of settlement — entered into by the appellees and the trustee for the debtors that mutually released all claims between them relating to the sale of the debtors home to the appellees without any payment by either party — after a jury verdict was entered in favor of the debtors and against the appellees in a non-core proceeding in state court properly remanded there by the bankruptcy court, and the U.S. District Court erred in reversing the bankruptcy court’s decision. [Filed May 7, 1996.] DEBTOR/CREDITOR — RECEIVERSHIPS — MUNICIPAL TAXATION 15-7-9749 Old Bridge Owners Coop. Corp., etc., et al. v. Twp. of Old Bridge, et al., U.S. Dist. Ct. (10 pp.) The court denies the township s summary judgment motion on plaintiff s tax challenges, since (1) the township is incorrect in its assertion that the plaintiff lacks standing to challenge the valuation of the subject real property and the computation of interest and penalties, since the plaintiff by contract has purchased the FDIC s interest in the property and agreed to assume all liability for any existing taxes, water and sewer charges, and the contract gives plaintiff the requisite standing, (2) although 1991 taxes have been paid, the plaintiff retains the opportunity to challenge the assessment, and township s assertion that the challenge is moot is incorrect, and (3) plaintiff, as subsequent purchaser of FDIC s interest, has a right to challenge property assessments made while the property was held in the federal receivership. [Filed Jul. 23, 1996.] A Daily Reporter of New Jersey Court Decisions THIS WEEK IN THE : A Hamilton Township police officer who fatally shot a lawyer accused of bank robbery cannot be sued for civil rights violations because a federal judge found the shooting was an accident. See page 4 of the July 29 Law Journal.

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