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CMM Prevails in Arbitration for Long Island Custom Home Builder

Posted: July 23rd, 2021

Ask someone to picture lawyers resolving a dispute, and they likely envision a wood-paneled courtroom with a judge banging a gavel, a shocked jury, and a lot of drama. Or perhaps they imagine a bright, sleek conference room with a shiny long table and people in Armani suits arguing passionately for their respective clients. But no one really thinks of arbitration… and many don’t know what it is.

Arbitration is a form of alternative dispute resolution (ADR) and a way to resolve disputes outside the courtroom. During arbitration, an impartial third party known as an arbitrator hears evidence and arguments in a dispute between parties, then makes a decision. The decision results in a binding “arbitration award” to the winner. (Other forms of ADR, such as mediation, are non-binding, but nevertheless effective at resolving disputes without resorting to litigation.) Sometimes, ADR is the best choice for a client when there is an opportunity to move beyond an impasse and resolve matters more quickly than in the courtroom or board room. Other times, it may be mandated by an agreement between the parties.

CMM recently prevailed in an arbitration proceeding on behalf of our client, a Long Island custom home construction management company. Our client had an agreement to provide construction management services for a significant $2 million renovation at a residence in Suffolk County. The corporate homeowner failed to pay our client the full construction management fee, claiming that they were entitled to offsets due to alleged damages and defective work/supervision.

While conflict resolution is never easy, CMM’s Jeffrey Basso prevailed after a four-day arbitration hearing and multiple witnesses spanning several months of investigation and discovery along with submission of post-hearing briefs. With careful preparation in advance of the hearing, Basso refuted the allegations made by the corporate homeowners by strategically presenting credible and convincing witnesses during the hearing that substantiated the work performed by our client. The arbitrator granted our client a significant arbitration award, as well as attorneys’ fees and the dismissal of all counterclaims. CMM has a proven track record of success with ADR, including arbitration, and views ADR as a critical tool to resolve matters reasonably. Please contact us to discuss the best avenues available to resolve your business dispute.

Webinar: Yermash To Talk Cannabis Law on HIA-LI Manufacturing Committee Panel

Posted: July 23rd, 2021

Event Date: July 28th, 2021

Join CMM Partner Arthur Yermash, Chair of our Cannabis Law practice, for the HIA-LI Manufacturing & International Trade Committee webinar as he discusses the legal considerations of starting a cannabis business in New York. Panelists include Martin Chalif, Owner of Paperless Solutions Company of Long Island and Joel Halvorson, Vice President of Quintel Management Consulting in Denver, Colorado. Attendees will have the opportunity for a Q&A session at the end.

At this online event you will learn the following:

General information about cannabis; growers, processer, sellers,
What other states have been experiencing that New York can learn from,
Technology considerations in cannabis industry,
Compliance considerations in cannabis industry,
Legal considerations in cannabis industry,
Regulations and more.

WHEN: Wednesday, July 28, 2021

TIME: 8:30 AM – 10:00 AM

COST: Free

Communication in Negotiation: Cialdini’s Six Principles of Persuasion

Posted: July 15th, 2021

By: Joe Campolo, Esq. email

“Communication is key in negotiation” and “negotiation is an exercise in communication” – phrases you’ve probably heard so many times that they’ve become meaningless. What if instead, we said that negotiation is about communication and persuasion. That’s what the research of Dr. Robert Cialdini, an expert in the field of influence and persuasion through evidence-based research, has revealed. According to Cialdini, negotiation is about persuasion and how one can present their ideas to others through effective communication in a way that moves them. By using Cialdini’s six principles of persuasion, you can use scientific and psychological-based claims to improve success in your own negotiations – and improve your communication skills while doing so. Here, a closer look:

Reciprocity

This principle states that people tend to give back to others what has been given to them – encouraging giving when you receive and making clear that you should be the first to “give.” Cialdini points out that what you’re giving should be personalized and unexpected.

For example, if you’re negotiating with a client around the holiday season, you could send them a holiday gift as a way to show that they can trust you. This can keep the relationship going in a meaningful way, especially if you send a personalized card. Research shows that client and customers are more likely to be touched by personal gestures such as a handwritten note or an envelope with a handwritten address rather than pre-typed label. Since you sent the gift first, the client now has the option to send one back (or not), but regardless, they will not forget the gesture you made.

Scarcity

People want what they can’t have – they crave exclusivity. In negotiations, it’s important to tell people about the benefits of your proposal. However, a more effective way of communicating is to highlight what makes your offer unique and what your counterpart stands to lose if they fail to consider it.

Say you’re negotiating the sale of a property or building. As the seller, you could consider mentioning to the potential buyer that there are others interested in buying as well so there isn’t that much time available to think about the offer. (Of course, if you use the scarcity principle to create a sense of urgency, you have to consider the ethics and be careful not to make fake claims that could risk your reputation.)

Authority

People follow the lead of those they perceive to be credible and knowledgeable – so it’s critical to communicate your expertise before you even start a negotiation.

An “expert introduction” is one way to establish credibility before a negotiation even begins. For example, if you are a client who calls an insurance company seeking to speak with an agent, the receptionist may transfer you to “Auto Agent David,” or to “Auto Agent David, who has 20+ years of experience in the auto industry and was recently recognized by an industry publication for his work.” Through this small extra detail, Auto Agent David’s authority just increased in your eyes.

Commitment & Consistency

People do not like to make large commitments. Therefore, it’s important to look for and ask for small initial commitments that can be made easily as a gateway to something bigger. For example, in a negotiation, if you are able to get your counterpart to agree to something smaller once, they are more likely to agree to something bigger later. Say you’re negotiating with a potential sponsor of your company event and want them to contribute a certain amount of time or money, you might want to start by asking for something minimal. Then, after they agree, you can ask them for more, or if you’re satisfied, the next time you host the event, you can ask the company to donate more than they did the first time.

Liking

People generally say yes to those that they like or feel more connected to. Furthermore, people like those who are similar to them, pay them compliments, and cooperate with them. When you are in a negotiation, sometimes a simple action like giving your counterpart a compliment and exchanging some personal information can create a more positive and successful interaction. Before starting a negotiation, try identifying a similarity that you and your counterpart share. This will set the stage for an agreeable outcome for both parties.

Consensus

The final principle is consensus – people look to the actions of others and try to mimic them. People like to be in the majority and feel safe there. That’s why a sign asking people to recycle might help; however, a sign adding that a certain percentage of the population recycles could be even more effective. By encouraging action (or inaction) from people by pointing out what others are doing, people will generally follow the behaviors of others to determine their own. This is often referred to as “FOMO” or “fear of missing out” where people want to feel included and be a part of a pack.

And there you have it: Cialdini’s six principles of persuasion can help sway a negotiation in your favor when properly executed (ethically, of course). You’re probably already employing some of these principles in your daily life. For instance, giving compliments might seem effortless and a part of your personality, but that means you’ve already mastered the principle of “liking.” Likewise, you might already gear up to ask people for bigger commitments by asking for little ones first – that means you’ve been putting the principle of “commitment & consistency” into effect. The next time you find yourself facing an unswayable friend or foe, try one, two, three (or all) of Cialdini’s principles out.

What Employers Need to Know about HERO Act Obligations

Posted: July 15th, 2021

By: Arthur Yermash, Esq. email

Tags: coronavirus, labor & employment

As the pandemic continues on, New Yorkers may not be surprised to learn that a new law has been passed addressing safety in the workplace in connection with COVID-19 as well as future airborne infectious disease outbreaks.

Governor Cuomo officially signed the New York Health and Essential Rights Act (HERO) into law on May 5, 2021. The legislation amends the New York Labor Law by adding two new sections governing (1) the development and adoption of a workplace prevention policy for airborne infectious diseases, and (2) the creation of workplace safety committees.

What You Need to Know about Airborne Disease Prevention Plans

The NY Hero Act requires the New York State Department of Labor (NYSDOL) to develop minimum standards for private sector employers to follow to help prevent the spread of airborne infectious diseases, such as COVID-19, in the workplace. These standards may differ among industries but will include elements familiar to employers who have already reopened: face coverings, employee health screenings, cleaning protocols, social distancing, and the like. The DOL has until June 4, 2021 to issue the standards. Employers do not have to adopt the NYSDOL’s industry-specific prevention plan models, but if they choose to create their own, the plans must meet or exceed the NYSDOL minimum requirements and be created with employee participation (for non-unionized workers). Most employers will also be required to provide notice of their prevention plan by June 4, as well as post it in a prominent location in the workplace, provide it to all employees upon reopening after a period of closure due to airborne infectious disease, provide it upon hire, and distribute it in the employee’s primary language if other than English (provided there is a model policy developed in that specific language).

Although Governor Cuomo signed the current version of the Act, he also stated that he had been in talks with legislators to amend the law to ease the burden on employers, giving them time to immediately cure violations, limiting litigation to situations in which employers act in bad faith, and to provide more time for the DOL and employers to enact the new standards. Violations of the law could result in monetary penalties.

What You Need to Know about Workplace Safety Committees

Effective November 1, 2021 for private sector employers with 10 or more employees[1] or an annual payroll over $800,000 and a workers compensation experience modification of more than 1.2, another provision of the HERO Act provides protections for employees who would like to form a workplace safety committee or report a health and safety plan violation. The law sets standards and requirements for committees like this and includes an anti-retaliation provision for employees. This will allow employees to engage in committee activities without fear of retaliation. Additionally, if an employer fails to comply with NYSDOL standards, employees may bring a claim against their employer for failing to follow NYS Labor Law.

What Do Employers Need to Do Now?

While the DOL model prevention plans are not yet available, employers should begin reviewing their policies and preparing for the upcoming compliance deadlines on June 4 and November 1. For guidance on the NY Hero Act minimum standards and adopting your own prevention plan, please contact us.

On June 11, Governor Cuomo signed legislation amending the New York State HERO Act in three areas:

Prevention Plans:

The amendments extend the deadline for the NYSDOL to publish its model plans to July 5, 2021 instead of the previous deadline of June 4. The updates to the Act also include set deadlines – employers will have 30 days after the DOL publishes the model standards to adopt their own disease prevention plans and 60 days to let employees know about any updated safety protocols.

Workplace Safety Committees:

The HERO Act provided protections for employees of certain private sector employers who wanted to form workplace safety committees. While the original HERO Act did not specify restrictions for workplace safety committees, the updates to the Act allow employers to limit such committees to one per worksite. The Amendments also limit committee meetings during working hours to two hours and committee training to four hours.

Private Causes of Action:

Governor Cuomo has also upheld his statement from our earlier article below in which he proposed to amend the Act to ease the burden on employers. The updates to the Act require employees to provide employers with 30 days’ notice before filing lawsuits and allow the employer time to correct the violation. This means that unless an employer demonstrates an “unwillingness to cure a violation in bad faith,” employees will not be able to bring suit if the employer corrects a violation in time. Lastly, the Amendments remove the Act’s ability to allow for recovery of liquidated damages in a private cause of action.

On July 6, 2021, the New York State Department of Labor, in consultation with the New York State Department of Health, published an Airborne Infectious Disease Exposure Prevention Standard and a Model Airborne Infectious Disease Exposure Prevention Plan.

Also published were industry-specific templates for agriculture, construction, delivery services, domestic workers, emergency response, food services, manufacturing and industry, personal services, private education, private transportation, and retail.

What Now?

Employers now have 30 days to adopt a written exposure plan, either following the NYSDOL’s model plan or creating their own following NYSDOL standards. The plan must be communicated to employees and posted in a visible location.

It’s important to note that while an exposure prevention plan is required to be adopted and posted, it is not required to be in effect until the New York State Commissioner of Health designates an airborne infectious disease.

[1] The Act defines employees to include individuals such as part-time workers, independent contractors, domestic workers, home health and personal care workers, and seasonal workers.

Sea Cliff Village Library Names CMM’s David Green as Library Trustee

Posted: July 14th, 2021

Campolo, Middleton & McCormick, LLP – a premier law firm with offices across Long Island – is pleased to announce that Senior Associate David Green has been appointed as a Trustee of the Sea Cliff Village Library. In his new role as a Trustee, Green will serve the Sea Cliff Village community by helping the library enhance the quality of life for village residents by providing informational, recreational, technological, and cultural resources for all.

Green will serve a five-year term and work closely with the Board and the Friends of the Library to approve library resolutions, budgets, discuss presentations and examine subcommittee reports. Part of Green’s responsibilities as a Trustee and leader in the community will be to uphold the library’s vision in becoming a gathering place in the Village for local professionals by providing resources and connecting Sea Cliff residents in all areas of business.

Green is no stranger to leadership; his work as a Senior Associate at CMM has earned him a spot on CMM’s own leadership team, where he plays a critical role in mentoring and training new attorneys and staff. He also provides CLE training on litigation topics and client relations. As a member of the firm’s litigation team, Green works with clients involved in business disputes, personal injury matters, and intellectual property matters. He also counsels clients on complex discovery, trials, appeals, securing settlements, and alternative dispute resolution.

“The Sea Cliff Village Library’s dedication to the community and its mission of offering a welcoming space for all village residents really resonates with me,” Green said. “I’m excited to roll up my sleeves and get to work in assisting the library to respond to the needs of the village through programming and outreach as a member of the Board of Trustees.”

Campolo Participates in Ribbon Cutting for America’s VetDogs Training Facility

Posted: July 7th, 2021

CMM Managing Partner Joe Campolo was honored to attend America’s VetDogs ribbon cutting ceremony yesterday as they unveiled their newly renovated Training Center in Smithtown. As a member of their board, Campolo spoke during the ceremony about the incredible leadership of VetDogs and Guide Dog Foundation and showed appreciation for all who helped achieve this amazing accomplishment. The training facility will assist in placing more guide and service dogs with veterans and first responders with disabilities.

Campolo attended alongside veterans and elected officials such as New York State Senator Mario Materra, New York State Senator Alexis Weik, New York Assemblyman Michael Fitzpatrick, Civilian Aide to the Secretary of the Army Steven Castleton, Senior Veterans Services Officer for Suffolk County Retired U.S. Air Force and Air National Guard Master Sgt. Melissa Pandolf, Smithtown Town Supervisor Ed Wehrheim, and America’s VetDogs Board Chair Don Dea.

CMM’s Municipal Liability Team Saves Smithtown Millions in Potential Exposure

Posted: July 1st, 2021

Tags: municipal

CMM’s latest courtroom success has helped the Town of Smithtown avoid millions of dollars in potential exposure in a lawsuit stemming from a tragic accident.

In 2016, the plaintiff was a passenger in a car driven by a drunk driver that ran off the road after approaching a curve on Sunken Meadow Road in the hamlet of Kings Park, Town of Smithtown at 3:00 a.m. The plaintiff suffered severe life-changing injuries as a result. He filed suit against the drunk driver, as well as the Town of Smithtown and its Highway Department. The injured plaintiff alleged that the Town defendants were negligent in maintaining, constructing, designing, and operating the road and failed to warn motorists of the dangerous condition of accumulation of sand and clogged storm drains that allegedly resulted in the driver of the car losing control of his vehicle. Furthermore, the plaintiff alleged that the Town failed to correct the condition.

Following discovery, CMM’s Municipal Liability team, including Richard DeMaio and Scott Middleton, moved for summary judgment (essentially, a request that the Court dismiss the case because there are no facts at issue). DeMaio and Middleton argued that discovery had made it clear that while the accident was a tragedy, the Town defendants bore no liability. There had been no complaints about the road or excess sand at the site of the accident, nor did the Town receive prior written notice of an allegedly defective condition at the location or any accidents occurring there.

Thanks to CMM’s work, the Court granted the motion and dismissed the Complaint in its entirety “with prejudice” (permanently) against the Town defendants. As a result, the Town of Smithtown avoided millions of dollars in potential exposure. Visit our Municipal Liability page to learn more about our successful work for municipalities.

Yermash Interviewed by Law360 on CMM’s Cannabis Law Practice

Posted: June 29th, 2021

Tags: cannabis

Arthur Yermash, Partner and Chair of CMM’s Cannabis Law Group, was interviewed for the launch of the firm’s practice area in Law360’s “Campolo Middleton Launches Cannabis Practice in New York.”

By Sarah Jarvis, Law360

New York law firm Campolo Middleton & McCormick LLP has announced the launch of a cannabis practice group, in the wake of Gov. Andrew Cuomo signing into law a legalization and taxation bill earlier this year.

Campolo Middleton partner Arthur Yermash, who will head up the new practice, told Law360 it was launched officially in June, though the firm had already been advising clients on cannabis-related issues for months. The group will provide guidance for cannabis businesses, entrepreneurs and service providers using the firm’s experience in various areas, including corporate, mergers and acquisitions, and labor and employment, the firm said in its announcement.

Yermash said the goal for the group is to serve the community, which he said is already showing an interest in getting into the industry. He hopes to position the practice group as a one-stop shop for anyone looking to get into the business, covering corporate issues and regulatory services.

“There are still a lot of unknowns, and we hope to be able to grow with this industry and the folks that want to be in the cannabis space,” he said, whether that’s in retail, farming or other areas.

Yermash said the team consists of four to five people, and will look to expand in the future. He said he expects cannabis to be a “tremendous industry” in New York, noting that even in its infancy, there has been an interest in shifting toward cannabis by farmers and retailers. He anticipates that interest growing exponentially over time.

Yermash said the group is focusing on regulatory and compliance issues as the industry is developing, including helping clients understand their responsibilities and navigate barriers to entering the industry.

Campolo Middleton, which has offices across Long Island, said in its announcement that its legal team is prepared to counsel clients on entity formation, regulatory compliance, licensing, commercial leasing, zoning and real estate matters. Yermash, who has spent years advising on retail, wholesale and pharmaceutical issues, said in the firm’s announcement that the team was able to hit the ground running once New York’s legalization legislation was passed.

Click Here to Read the Full Article

Learn more about our Cannabis Law practice group here.

HIA-LI Press Release Highlights Campolo’s Whitepaper on LI-IPH Progress

Posted: June 28th, 2021

HIA-LI, one of Long Island’s largest business associations, has issued a whitepaper presenting a progress report on an April 2019 “opportunity analysis” that had set forth a multi-faceted strategy for maximizing the economic potential of the 1,400-acre Long Island Innovation Park at Hauppauge, formerly known as Hauppauge Industrial Park.

The whitepaper was written for HIA-LI by Joe Campolo, Lauren Kanter-Lawrence, and Ilona Kaydanov of Ronkonkoma-based Campolo, Middleton & McCormick, LLP.

As the largest business park in the Northeast, the approximately 1,400 companies in the Long Island Innovation Park employ 55,000 people with an annual output of $13 billion.

The 2019 opportunity analysis – prepared by James Lima Planning + Development and the Regional Plan Association and funded by the Suffolk County Industrial Development Agency (IDA) – documented the park’s status as “the center of Long Island’s current and future economy.”

The study spelled out five economic development strategies for park expansion: facilitate business growth; attract and retain skilled workers; strengthen workforce development; promote innovation and technology transfer; and connect businesses, governments and institutions.

The HIA-LI whitepaper, titled “Long Island Innovation Park at Hauppauge: Securing Long Island’s Future,” highlights the Town of Smithtown’s August 2020 zoning change to permit developers to apply for a special exception on 13 parcels in the Park for mixed-use buildings that incorporate ground-floor retail or restaurants with upstairs apartments and offices. The whitepaper noted that the Town’s policy decision had been the result of “a fully transparent three-and-a-half-year analysis.”

The report anticipates that the amended zoning stood to generate construction of 1,000 new housing units. These units would, in turn, create more than 2,900 construction jobs with $180.7 million in construction earnings and $472.6 million in construction spending.

In the context of the 2019 opportunity analysis, the zoning change would help achieve at least two of the five growth strategies for the park: the facilitation of business growth and the attraction and retention of a skilled workforce.

The whitepaper, however, singled out two obstacles to park growth: a Hauppauge Union Free School District lawsuit opposing the Town zoning change, and the inadequacy of present wastewater management systems to accommodate the anticipated expansion.

Rebutting the school district’s lawsuit, the HIA-LI document presents a detailed statistical refutation of the contention that the newly permitted building conversions would burden the local school system.

In respect to wastewater management, the whitepaper notes that the size and design of the present-day collection systems, treatment plant, and leaching beds would have to be expanded to handle the expanded output that would be generated by park expansion. The HIA-LI report notes that the Suffolk County Health and Public Works Departments contracted with Melville-based H2M architects + engineers to propose cost-efficient, ameliorative steps that would align wastewater management capacity with future wastewater output.

A key focus of the 2019 opportunity analysis was the pre-eminent value of tradable industries, which are specific business sectors that bring net, new dollars into a region. The report found that on Long Island as a whole, tradable industries comprise only 23 percent of Nassau and Suffolk’s economy, compared to a national average of 36 percent. However, the analysis revealed that 58 percent of the jobs in the Innovation Park were in tradable industries.

“This whitepaper underscores the leadership of the Town of Smithtown in undertaking visionary policy changes that would deliver enormous economic development payoffs for the Innovation Park and for Long Island as a whole,” said HIA-LI President and CEO Terri Alessi-Miceli. “HIA-LI is especially appreciative of the efforts of Town Supervisor Ed Wehrheim in advancing job creation and business growth at the park.”

“Business leaders and government leaders alike need to implement well-informed strategies capable of carrying Long Island’s innovative economy to new heights,” said Richard Humann, PE, President and CEO of H2M architects + engineers and Chairperson of the HIA-LI board. “Both Suffolk County and the Town of Smithtown have proven to be reliable partners in maximizing the potential of the Long Island Innovation Park at Hauppauge.”

“With its high proportion of tradable businesses, the Long Island Innovation Park at Hauppauge is the indisputable linchpin of the Long Island economy,” said Joe Campolo, Chair of HIA-LI’s Long Island Innovation Park at Hauppauge Committee and Managing Partner at Campolo, Middleton & McCormick, LLP. “It behooves business leaders, government entities, and regional institutions to promote the Park’s long-term success.”

“It’s essential for local government to understand the impact of policymaking on business growth and job creation,” said Ed Wehrheim, Supervisor of the Town of Smithtown. “The leaders and members of HIA-LI have consistently maintained a candid and constructive dialogue with the Town of Smithtown, and our dialogue helps ensure that we will reach our common goals for economic development.”

“The Long Island Innovation Park at Hauppauge is the largest economic engine in the region and leveraging all potential opportunities for its continued growth is crucial for our region’s success,” said Natalie Wright, Commissioner of Suffolk County’s Department of Economic Development and Planning and Chair of the Suffolk County IDA. “We have a longstanding history of supporting HIA-LI and its partners in elevating the profile of the Park as well as its businesses. We’re proud of the progress already made as highlighted in the report and look forward to the next chapter of progress for this hub of employment, tax generation and overall economic prosperity.”

Download Whitepaper