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Christine Malafi Named to Dan’s Power List of the East End

Posted: July 25th, 2024

Campolo, Middleton & McCormick Senior Partner Christine Malafi was recently honored by Dan’s Power List of the East End, recognizing individuals for their commitment, impact and influence on the East End of Long Island. Malafi received her award at Giorgio’s in Baiting Hollow. 

Malafi chairs the Corporate Department at CMM, which Forbes has recognized as a Top Corporate Law Firm in America. She has led the CMM legal team in closing countless M&A deals worth billions of dollars. She has vast experience advising on both buy-side and sell-side M&A transactions in a variety of industries, including technology, manufacturing, education, healthcare, and professional service sectors. Malafi is particularly adept at working closely and strategically with clients’ other professional advisors, including accountants, bankers, and M&A advisors, as well as forging those critical relationships for clients based on the deep network of relationships she has cultivated over years in the business. 

Malafi has the unique perspective of being a corporate lawyer who spent the first half of her career as a litigator with extensive experience in municipal, insurance coverage, and fraud issues. She brings her deep understanding of litigation and the court system to all aspects of her corporate work and uses this experience to help protect clients from a variety of critical angles. 

Congratulations, Christine! 

CMM’s Latest M&A Deal was a Perfect 10!

Posted: July 19th, 2024

CMM recently represented a premier gymnastics studio in the sale of its assets to a local competitor. The studio, which has been in business since 1984, offers camps, competition teams, and more for aspiring Olympians.   

The deal team, led by CMM Partner Vincent Costa with support from Zachary Mike, worked tirelessly to ensure a smooth transaction between parties.  

“It was a pleasure working with CMM,” said the client. “They were so knowledgeable and led me through the sales process with ease.”  

From gymnastics studios and pickleball facilities to manufacturing and tech companies, Campolo, Middleton & McCormick can expertly handle any M&A transaction.  

CMM Wins Dock Permit Case for Asharoken Residents, Protecting Ida Smith Beach

Posted: July 1st, 2024

By: Frederick Eisenbud, Esq. email

On May 1, 2024, the Appellate Division, Second Department unanimously affirmed the dismissal of an Article 78 Petition filed by two homeowners whose applications for seasonal floating docks were denied by the village board of the Village of Asharoken. The Village Code, adopted in 1992, originally banned all docks along a ¾ mile stretch of pristine beach known as the Ida Smith Beach, named after the person who took title to the beach following a grant in 1880 from the Town of Huntington. For more than 100 years, no docks were built along this area of the village.

In 1992, the village enacted a local law which expressly banned docks along the Ida Smith Beach, citing a number of justifications, including environmental, pollution, swimming, navigation, and aesthetics. This law was struck down because of a procedural defect in its adoption having nothing to do with the merits of the ordinance. In 1994, the village adopted a new dock ordinance which, although theoretically allowing dock permits to issue, placed the burden on applicants to show that their dock would not cause any of the harms cited in the 1992 ordinance. In addition, the ordinance made all dock applications along the Ida Smith Beach Type I actions for purposes of SEQRA, meaning that it was likely the docks would cause significant adverse impacts to the environment, and a Draft Environmental Impact Statement would more than likely be required.

The 1994 ordinance created an Environmental Review Board to hold hearings on dock applications and to make recommendations to the Board of Trustees. When someone who had been on the committee that recommended the ordinance adopted in 1994 was asked why the village did not simply ban all docks again, he responded that they did not think anyone would try and get a dock permit.

That held true until 2015 when two property owners along the beach submitted dock permit applications. The Environmental Review Board held five public hearings over the course of two years. The Asharoken Bayside Association (“ABA”), consisting of almost all the other property owners along Ida Smith Beach, was formed to intervene in the hearings to oppose the applications. They retained Frederick Eisenbud, Chair of the Environmental and Land Use practice group at CMM, and Ron Abrams, Ph.D., a wetlands expert, to represent them. As a result, a complete record was created which essentially showed that it was impossible for the applicants to prove that none of the six express factors that had to be considered by the ERB and Board of Trustees would arise from approval of the dock permit applications. If the applicant for a dock permit could show the proposed dock would not cause any of the harms set out in the ordinance, the permit still had to satisfy objective criteria for the docks themselves.

The applicants argued that their applications met the objective criteria for docks, and their common law riparian rights mandated that they be granted permits, even if some of the adverse impacts set out in the ordinance would be created. A riparian owner has the right of reasonable, safe and convenient access to navigable water, and this right ordinarily includes the right to make this access a practical reality by building a pier or wharfing out. The applicants in this case assumed their riparian rights were absolute. In 2017, however, the Board of Trustees unanimously adopted the recommendation of the ERB, which voted, 4-3, against approving the docks, and thus denied the permit applications.

The applicants then filed an Article 78 Petition to challenge the denial of their permits. The ABA, concerned that only they, and not the village, had argued that riparian rights were not absolute, again retained Eisenbud to intervene in the Article 78 Petition to support the dismissal of the challenges to the denial of their permits. Eisenbud prepared the ABA’s opposition, and in 2019, the Supreme Court, Suffolk County, dismissed the challenge to the dock permit denials. In part, the lower court found that “Riparian rights are not unfettered and must yield to the legitimate governmental exercise of police power. Specifically, the right of access for navigation and the right to make a landing, wharf or pier for one’s own use or for the use of the public, are subject to such general rules and regulations as the legislature may see proper to impose for the protection of the rights of the public, whatever those may be.”

The Appellate Division affirmed. Eisenbud, with the assistance of CMM Senior Associate Richard DeMaio, were retained by the ABA to represent their interests as intervenors on appeal to make certain all arguments which would support the lower court’s dismissal would be raised. First, the Appellate Division held that the ERB’s recommendation and the Board of Trustees denial of the permits were not arbitrary or capricious because they were supported by express criteria in the ordinance. Then, they rejected the applicants’ riparian rights argument, finding that “The board’s determinations also did not violate the petitioners’ riparian rights, as the board’s determinations enforced the Village Code, which constituted a reasonable restriction of those rights.” The ordinance expressly found there were reasonable alternatives to building docks which would permit property owners along Ida Smith Beach to access navigable waters, such as using row boats to access boats that are moored off-shore, or taking advantage of the many marinas nearby.

Important Take-Aways from the Akeson v. Village of Asharoken Case

  1. Opposition to applications can be very expensive and time consuming. As soon as an application one finds objectionable becomes known, a homeowner impacted by the application should contact as many neighbors as possible who also may be adversely impacted to determine whether they would be willing to form a group to oppose the application, and share the costs. That will require a hard look at whether the impact granting the permit will have on neighbors is severe enough that the expense of opposition is warranted. In this case, not only was an environmental attorney needed, but an expert on wetlands was required as well to oppose the arguments raised by the applicants’ attorney and expert. Hearings before the ERB went on for two years (2015-2017); it took another two years for the legal challenge to the denial of the permits to be determined (2017-2019); oral argument on the appeal from the lower court’s determination was not heard until Nov. 2023; and the appeal was not decided until May 2024 (almost five years after the lower court decision was appealed). Hopefully, the applicants will not ask New York’s highest court to accept the case for review, but if they do and the Court accepts the case, yet more time and money will be required before a final decision is reached.

  2. Not every case is worth the time and expense assumed by the ABA to oppose the dock permit applications here. Approval of the dock permits would have created a precedent that ultimately would have destroyed the pristine beach to the detriment of the people who had the absolute right to traverse the shore between low and high tide, as well as the aesthetic value of the view of the beach not only from the homes of residents on the beach, but for all those who drive by the beach along an elevated roadway looking down on the beach as well. 

  3. Critical to the success of CMM’s representation of the ABA was their retention at the outset of the ERB’s public hearings. Article 78 Petitions challenging administrative decisions can only be based on the record before the agency. If arguments are not made, or documents or photographs are not presented, they may not be considered by the Court. The rationale is that the agency making the determination must be given the opportunity to consider all arguments for and against the application before a court may consider a legal challenge to the determination.  Give your legal representative the opportunity to make a record that will support the outcome you want to achieve.

  4. With the lower court’s decision in this case, and the Appellate Division’s decision affirming the dismissal of the challenge to the denial of the dock permits, the Village of Asharoken should consider amending its dock ordinance to once again ban all docks between the docks that pre-existed the ordinance which are located at the ends of the crescent of beach. All the reasons set out in the ordinance for regulating dock applications along the Ida Smith Beach would also support an ordinance that bars new docks altogether. The time and enormous expense incurred by the two applicants here very likely will deter anyone else from applying for a dock permit along the Ida Smith Beach.  But why take the chance – change the ordinance and ban new docks outright so Ida Smith Beach will be forever preserved.

David Green Recognized as a 2024 Top Business Leader

Posted: June 25th, 2024

Campolo, Middleton, & McCormick, LLP is proud to announce that CMM Partner David Green has been recognized by Blank Slate Media as a 2024 Top Business Leader of Nassau County. David accepted his award at the gala dinner on June 20 at Leonard’s Palazzo of Great Neck. The Top Business Leaders ceremony celebrates the most influential and accomplished individuals who find ways to lead and inspire.

David represents businesses and individuals in various areas of litigation with a particular emphasis on clients in the construction and real estate development sectors. He believes that supporting New York businesses and facilitating a robust business community is essential to the growth and advancement of Long Island.

David has spent many years fighting for his clients and developing a reputation as an attorney with knowledge, skill, and talent. His experience includes complex discovery, trials, appeals, securing settlements, and alternative dispute resolution. David is unique as a litigator in that he views litigation as one of many available legal strategies to help clients navigate a complicated legal system. His experience inside and outside the courtroom allows him to craft creative and effective solutions that help his clients save critical time and resources.

David is a key member of CMM’s Westbury office, where he is based. David is a Trustee of the Sea Cliff Village Library as well as a member of the Gold Coast Business Association.

CMM Secures a Win for Town of Riverhead

Posted: June 20th, 2024

CMM has secured a meaningful win for the Town of Riverhead.

In this personal injury case, the Plaintiff claimed that the Town was liable for injuries sustained by a minor at a public skateboard park. CMM successfully moved for summary judgment (essentially, asking the Court to find that there are no facts in dispute and to rule in our favor), arguing that the Plaintiff was solely responsible for the accident.

The team, led by Scott Middleton with significant contributions from Joseph Townsend, drafted the winning motion, which resulted in a dismissal of all claims.

Had the Plaintiffs been able to proceed with their case, it would have subjected the Town to significant exposure due to the Plaintiff’s injuries.

CMM has a proven track record in representing Suffolk and Nassau County towns and villages. Visit our Municipal Liability page to read about more successful cases.

Campolo Interviews Narula, CEO of Orbic, at HIA-LI Gold Event

Posted: June 18th, 2024

Joe Campolo interviewed Mike Narula, CEO of Orbic, at the HIA-LI Gold Event on Tuesday, June 18, 2024. Orbic is a leader in developing and manufacturing mobile solutions for smart value-tech consumers including mobile hotspots and laptops. Campolo began by highlighting Orbic’s significance to Long Island, emphasizing its role in bringing more tradeable sectors to the region. He noted how this would generate new capital, create additional jobs, introduce the latest technology, and attract fresh talent. Narula passionately recounted his journey in the wireless technology industry and outlined his ambitious goal of creating 1,000 job opportunities on Long Island. Narula also proudly presented Orbic’s eBike, the world’s first 5G enabled eBike equipped with AI object avoidance and collision detection technology.

CMM Elevates Crane and Rigging Company to Success with Latest M&A Deal

Posted: June 11th, 2024

When it comes to closing an M&A deal, CMM is always there to do the heavy lifting for our clients.

In this deal, CMM represented a crane and rigging company that has been in business for over 30 years in the sale of substantially all of its assets to a Tennessee-based consortium. The client received cash for the assets and rollover equity in the buyer’s vertical.

This is the third crane and rigging company that CMM has represented in M&A transactions in as many years.

Donald J. Rassiger led the deal team with tremendous support from Zachary Mike and paralegal Lyzzette Lopez-Marin. This transaction showcased CMM’s depth of experience and ability to get deals done. For more information on our mergers and acquisitions services, please contact us.

CMM Closes F-Reorganization Deal

Posted: May 28th, 2024

CMM has closed another successful M&A deal involving a complex F-reorganization. The deal team completed the sale in record time for our client, a business specializing in accounting and business solutions for nonprofit organizations.

The terms of the deal included the sale of the majority of the client’s stock to a private equity firm. The firm, in business since 2013, focuses on investment in and active expansion of small capitalization and middle market companies in partnership with management. Our client will remain on board with the company as part of the rollup.

An F-reorganization is a type of qualifying tax-free reorganization for corporations that changes the identity or form of a corporation. Private equity firms often take advantage of the F-reorganization as a means of acquiring an S corporation without engaging in a lengthy consents process while simultaneously gaining the tax benefits of a deemed asset sale.

The client appreciated CMM’s efforts, sharing that “It was a true pleasure working and learning from CMM, and I look forward to the next chapter.” CMM’s Vincent Costa led the deal with support from Zachary Mike and Marc Saracino.

This transaction showcased CMM’s depth of knowledge in the M&A seller-side space. Learn more about how CMM helps our clients receive the most value for their business.

McCormick Elected President of the Suffolk County Bar Association

Posted: May 7th, 2024

Campolo, Middleton & McCormick is thrilled to announce that Senior Partner Patrick McCormick has been elected and will be inducted in June as President of the Suffolk County Bar Association for a one-year term. As President, McCormick will take leadership of the bar association, positioning him as one of the most prominent advocates in New York State for the legal community.

This election is the culmination of numerous professional milestones for McCormick, who has previously served as President-Elect, First and Second Vice President, Secretary, and Treasurer of the SCBA Board of Directors, as well as Dean of the Suffolk Academy of Law. A recognized leader in the community, this election highlights McCormick’s long-standing dedication to the SCBA, tremendous support from his colleagues across the legal profession, and his advocacy for the New York legal community. McCormick will be sworn in at the SCBA’s 116th Annual Installation Dinner at Flowerfield in St. James, New York on June 6, 2024.

McCormick chairs the Commercial Litigation and Appellate Practice Group at CMM, having built a reputation as a strategic and talented appellate attorney over three decades in the field. Representing clients in civil and criminal matters in both federal and state courts, he has argued numerous appeals, including at the New York State Court of Appeals, the state’s highest court. McCormick is also a respected trial attorney, litigating all types of complex commercial and real estate matters. He represents national commercial shopping centers, retailers, and publicly traded home builders in commercial and residential landlord-tenant matters. McCormick has been recognized by his peers with the Martindale-Hubbell AV Preeminent® rating for ethical standards and legal ability, the highest possible rating from the most recognized legal directory and resource.