Firm News

Ken Bloom Speaking at ABA Insurance Coverage Conference

By:      Gartner + Bloom, P.C.

Date:   February 27, 2019

            G+B Founding Partner Ken Bloom has been invited to speak at this year’s ABA Insurance Coverage Litigation Committee Seminar in Tucson, Arizona, taking place from February 27 to March 2. Ken is a panelist on a program titled “Bad Facts Make Bad Dreams and Bad Law: Coverage Nightmares We Lose Sleep Over.” Ken has been contributing to CLE services in the insurance coverage field for over thirty years – this particular panel will focus on recent court decisions that highlight potential risk exposure by adjuster non-compliance.

G+B Appellate Decision Featured in Habitat Magazine

By:      Gartner + Bloom, P.C.

Date:   February 26, 2019

            A G+B decision is featured in the March 2019 issue of Habitat Magazine for our win at the Appellate Division last November. G+B successfully protected our clients by imposition of the business judgment rule at the lower court, and Associate William Brophy secured an affirmance on appeal.

            See link for the feature:

G+B’s Jeffrey Miragliotta selected to be on CLM Young Professionals Advisory Board.

By:      Gartner + Bloom, P.C.

Date:   February 14, 2019

            New York Partner Jeffrey Miragliotta was recently named to the Claims and Litigation Management (CLM) Alliance Young Professionals Advisory Board. Jeff was nominated and then appointed to a selective advisory board that is tasked with the national development of younger industry leaders in the field of claims and litigation management. Jeff, who specializes in insurance defense litigation, said that he is excited to get to work, and that he has already “seen an increase in both interest and potential across the younger generation of professionals in this area.”

Gartner + Bloom Wins Seven-Figure Award in Manhattan Arbitration Involving LLC Dispute

By:      Gartner + Bloom, P.C.
Date:   January 16, 2019

            Partner Arthur P. Xanthos and Associate Michael E. Kar recently won a seven-figure award on behalf of a member of a limited liability company (LLC) in the construction industry. The Firm’s client had been unjustly expelled from the construction company and denied his equity interest therein. G&B brought the issue to arbitration before the American Arbitration Association, which resulted in two weeks of hearings including extensive forensic analysis of LLC transactions, competing and complex business valuations, and pivotal contract interpretation issues.

            All of the opposition’s counterclaims were dismissed, and the Firm’s client was awarded his full equity interest, with all costs and interest.

            G&B endeavors to settle business disputes practically and without the need for litigation (and indeed attempted to do so in this case prior to the arbitration). When necessary, however, our attorneys advocate for our clients to the fullest extent of the law in front of courts or arbitral forums.

G&B obtains significant ruling against national brokerage firm, limiting New Jersey’s attachment statutes

By:      Gartner + Bloom, P.C.
Date:   December 21, 2018

            Partner Alexander D. Fisher and Associate Kenneth M. O’Donohue of the firm’s New Jersey office recently represented a Connecticut woman in an effort by her former stock brokerage company to obtain a pre-arbitration attachment of her brokerage accounts. In fact, the brokerage company seized these accounts and restrained our client from accessing her funds, all without prior notice to her and the arbitrator to which both parties agreed or the arbitration hearing taking place, let alone having been decided on the merits. Prejudgment attachment is extremely rare and is customarily sought when a party is removing funds or engaging in fraudulent conduct before a matter is determined. 

            There was no serious dispute that the disagreement between our client and the brokerage firm, was subject to FINRA arbitration in New York. Our client had no ties whatsoever to New Jersey. She did not live in the state, own property in New Jersey, or conduct business in New Jersey. The brokerage company acknowledged this fact, but claimed the basis for the prejudgment ex parte seizure was because the brokerage company’s “headquarters” was located in New Jersey. With this rationale, the brokerage company claimed it could seize our client’s funds at any national bank where our client had an account, even if there was no actual account in New Jersey.

            This rationale clearly violated the minimum contacts test under the United States Constitution for obtaining personal jurisdiction over a defendant. We also moved on the grounds that the bank failed to comply with the requirements of the New Jersey statutes governing pre-judgment attachment, specifically N.J. Court Rules 4-60 and N.J. Rev. Stat. § 2A:15-41 and 42 (2016). We further moved because the brokerage agreement between the bank and our client required that any disputes arising out of the agreement be governed by New York law, and further stated that out client would accept service of process from the bank. Since a requirement of the attachment statutes is that the party against whom attachment is sought cannot be served within the state, we argued that the service provision in the brokerage agreement meant that prong of the statutory requirement could not be met.

            After extensive oral argument before the Hon. Francis B. Schultz, the Court ruled that there was no jurisdiction over our client in the State of New Jersey. The Court further ruled that merely the presence of a bank branch in the state did not mean that a party could seek to attach any assets of a bank customer, regardless of that customer’s connection to New Jersey. Additionally, Judge Schultz ruled that the service provision in the brokerage agreement meant that the bank could not meet the requirements of the relevant pre-judgment attachment statutes. Accordingly, the Court permanently vacated the writs of attachment and ordered our client’s funds released immediately.

            This case highlights the limits of jurisdiction. While the State of New Jersey (like many other states) has a “long-arm statute” to ensure that parties that avail themselves of the protection of New Jersey law cannot evade jurisdiction, the Court’s decision shows that there are limits to how far jurisdiction extends. Specifically, the Court’s decision indicated that a party cannot seek to attach a foreign bank account merely because the bank where the account is maintained has a separate branch office in New Jersey. Rather, the Court found that the State of New Jersey had to have some minimum contacts with the person against whom attachment was sought in order to exercise jurisdiction over that party. It further shows that a choice of law clause and/or a service provision in a contract should be carefully considered by the drafter, as merely selecting a venue of convenience for your client may foreclose them from seeking to bring a claim in a venue with more advantageous statutes.

Gartner + Bloom, P.C., participates in Frosty’s Friends 2018 toy drive

By:    Gartner + Bloom, P.C.
Date: December 13, 2018

            Gartner + bloom, P.C., spearheaded by New Jersey Partner Alex Fisher, is participating in this year's Frosty's Friends toy drive. The program collects children’s letters to Santa and sends them to volunteers who play Santa and buy, wrap, and deliver the gifts before Christmas. Happy Holidays!