News (All)

CMM Creates Opportunity for Manufacturing Business to Move Forward by Successfully Negotiating Buyout

Posted: February 15th, 2019

In a deal that spanned numerous corporate and employment law issues – and even a brief stint in court – CMM successfully closed a stock purchase transaction that enabled a longtime Long Island manufacturing company to begin its next chapter.

Our client was a 50% owner of the company and had become engaged in an arduous battle over control of the company with his business partner. Unfortunately, without an effective Shareholders’ or Operating Agreement in place, long, drawn-out battles among formerly friendly business partners become all too common. As the years go by, many “what happens if” scenarios that were never addressed in good times catch up and become reality.

Hostile negotiations made it seem that this business divorce was destined for litigation (and did in fact include an appearance in the Suffolk County Commercial Division), but CMM continued to push for a more cost-effective solution. After several months of difficult negotiations, the parties agreed to a purchase price, including a long-term facility lease and a note. CMM Corporate Department managing attorney Don Rassiger negotiated the deal with assistance from Vincent Costa, who also worked on the documentation for the deal. Our client bought out his partners’ shares in the company and is now able to move the business forward. This critical step will allow the business to continue to grow and contribute to the Long Island economy.

Though business divorces are never easy, CMM attorneys are adept at untangling owners’ interests from businesses suffering a crisis. Learn more about our Corporate work here.

HIA-LI Reporter: HIA-LI 41st Annual Meeting & Legislative Breakfast moderated by Joe Campolo

Posted: February 14th, 2019

By Janine M. Haas

HIA-LI members, board members, executives, and a spectrum of public officials gathered at the Hamlet Country Club on Thursday, January 18, 2019 to celebrate the 41st Annual Meeting and Legislative Breakfast event. The presentation of the 40th Annual Report recapped the past year and outlined clearly its goals for 2019.

Special guests were Congressman Lee Zeldin, New York State Assemblyman Mike Fitzpatrick, Suffolk County Legislature Presiding Officer DuWayne Gregory, Town of Islip Supervisor Angie Carpenter, and Town of Smithtown Supervisor, Ed Wehrheim.

HIA-LI President Terri Alessi-Miceli opened with New Year’s greetings and offered congratulations to the entire organization for a banner year.

Attendees learned that overall, they can expect a year of growth in the park and in employment (as evidenced in the results of the Economic Impact Study and Opportunity Analysis), further initiatives from the HIA-LI’s Small Business Task Force in expanding the available talent pool, and a move to become a clean energy leader with intentions to utilize some 20 million square feet of available rooftop for solar arrays.

“This doesn’t just happen,” Alessi-Miceli declared. “It’s the product of the efforts of our members, our board, business leaders, chairs, co-chairs, volunteers and the esteemed public officials seated here who advocate for our community on a daily basis. Thank you.”

Corporate Secretary Rich Humann announced the latest additions to the board: Castella Imports President and CEO Chris Valsamos and Karen Frank, EVP of Omnicon.

A SUCCESSFUL 2018

Joe Campolo, the HIA-LI Board Chairman and Managing Partner of Campolo, Middleton & McCormick, offered welcoming remarks, described the broad range of accomplishments of the previous year (revitalization of many of the unique downtown areas and significant improvement in transportation with the addition of the third track, the renewed commitment to MacArthur Airport, the continued improvement in sewer infrastructure and water quality), and stressed the importance of the annual event as a way to engage in dialogue with elected officials to ensure continued growth and prosperity in the park and the community beyond.

“We’re proud to make these accomplishments known – that this incredible economic engine that is the Hauppauge Industrial Park has a higher proportion of aerospace, construction, biopharma, business services, education, research and IT businesses than anywhere else on Long Island. It is the premiere hub for growing a business.”  Campolo then called out the gorilla in the room – the federal government shutdown.

Though talks at the federal level remained at an impasse, at the local level the debate was civil and focused on the issues affecting Suffolk County. Though most felt the impact had been minimal locally, Presiding Officer Gregory gave examples of constituents who were feeling the pressures of late paychecks. Although the shutdown ended just days after the meeting, as of this writing there remains the possibility of another just weeks away.

THE OPIOID CRISIS

Opioid use is epidemic in Suffolk County and officials discussed action at a federal, state, and local level to enact legislation dealing with education, rehabilitation, prevention, and treatment. All agreed it was a bipartisan issue and that the county shouldered the heaviest burden.

DuWayne Gregory discussed the introduction of Project Connect, a program that aligns overdose patients with rehabilitation services and counselors in the hospital and stated it has had tremendous success. His district also developed a Stay Alive Long Island app that provides information on dealing with overdoses, administering Narcan, and finding treatment.

Mike Fitzpatrick has worked across party lines in the Assembly in providing for better insurance coverage for treatment and the I-Stop prescription monitoring program that prevents doctor and pharmacy shopping.

A contributing factor in Long Island’s opioid crisis, two years ago officials learned that South American drug cartels were targeting Long Island for distribution given the region’s wealth and high level of disposable income.

Lee Zeldin offered that this was probably the most impactful of the issues in Suffolk County, but not at all localized. The problem plagues communities across the nation and the 116th congress will be introducing legislation to deal with it, not just in terms of enforcement, but in prevention and rehabilitation as well.

“We will work together to move the ball forward in prevention, education, rehabilitation, and treatment,” the congressman declared.

ECONOMIC DEVELOPMENT

Smithtown Town Supervisor Ed Wehrheim and Islip Town Supervisor Angie Carpenter discussed some highlights of the massive economic development underway in the towns of Smithtown and Islip.

MacArthur Airport is of major importance to the Town of Islip. The Veteran’s Highway corridor is headquarters to many companies with ridership up 25% since last year and servicing 1.6 million airport passengers.

“Development at MacArthur Airport and the corridor will be energized by broadening the kinds of businesses that can be in that corridor.  Our focus is on development with stable taxes,” Supervisor Carpenter claimed.

Supervisor Wehrheim agreed that stable taxes, strong development, and working as a team are key to success in 2019. “To date, we have over two million square feet of construction going on and we are already through the approval process for 740,000 square feet right here in the park,” he advised.

The town had recently rezoned Motor Parkway to allow buildings to go as high as 62 feet and is in the process of creating a new comprehensive plan for the town of Smithtown, the first in over 55 years.

CONTROLLING COSTS CONTROLS TAXES

 For Long Islanders, the real gorilla in the room is taxes.  On the federal level, Congressman Zeldin focused on the $10,000 cap on SALT deductions which, in a high tax state like New York, hit hard.

“There is a double taxation argument and a lot of debate about the changes in the SALT deduction,” the congressman stated and offered hope that the congress might pass legislation benefitting tax payers on a personal level as well as extending the tax credits and extenders set to expire at year end.

On the state level, Assemblyman Fitzpatrick, expressed frustration with a growing number of New Yorkers fleeing high taxes, likely costing the state two congressional seats. “Where are they going?” he asked rhetorically.

“They’re going to Florida, Texas, Tennessee, and Virginia.”

All members of the panel believed government could do a better job and understood it is imperative to hold the line on costs and taxes.

Case Dismissed! CMM Successfully Moves for Dismissal of Negligence Action in Federal Court

Posted: February 13th, 2019

CMM has vast experience representing transportation providers in accident-related claims alleging personal injury and catastrophic loss. That experience recently led to the dismissal of all claims alleged in federal court against our clients, the out-of-state owners of a trucking/logistics company, in the firm’s latest litigation success story.

CMM represented Georgia residents in a personal injury action brought in federal court in New York by a plaintiff who resided in New York. The plaintiff was injured in a motor vehicle accident involving the defendants’ truck in the trailer yard of Bob’s Discount Furniture in Maryland. CMM Senior Partner Scott Middleton, assisted by litigator Richard DeMaio, moved to dismiss for lack of personal jurisdiction. Essentially, CMM argued that the federal court in New York had no authority to hear a case against Georgia defendants regarding an accident that took place in Maryland; the plaintiff failed to allege that our out-of-state clients had any reasonable expectation that a trucking accident in Maryland would have consequences in New York.

While the plaintiff argued that his residence and medical treatment in New York should be enough to allow the suit to continue, the court was persuaded by CMM’s arguments, finding that there was no basis to exercise jurisdiction over our clients. In a victory for our clients, the court granted CMM’s motion to dismiss and closed the case.

CMM attorneys have decades of experience representing transportation providers including municipal bus lines, coach and school bus companies, fleet carriers, logistics companies, and limousine businesses. We have successfully defended clients insured by numerous major insurance companies across the country in virtually all areas of insurance coverage and defense. Learn more about our Liability Insurance & Insurance Coverage practice here.

If It Makes You Happy: Emotional Expression in Negotiation

Posted: February 8th, 2019

By: Joe Campolo, Esq. email

Think you can tell when someone is faking?

I’m referring to emotions, of course – and how well you can read a person’s expressions, or fake your own, may make or break your next negotiation.

Emotional expression (displaying emotions) is distinct from emotional experience (how you actually feel). According to some fascinating studies, that difference has important ramifications at the negotiation table. In a Stanford University study, Marwan Sinaceur and Larissa Tidens observed that negotiators facing opponents who expressed anger – even if they were not actually angry – made more concessions than when their opponents did not express anger. Even more interesting, those who expressed anger not only received more concessions, but also retained their ability to create value.

No, this finding doesn’t mean that you should angrily yell your way through negotiations. But this study suggests that whether you tend to have a poker face or wear your emotions on your sleeve, knowing when and how to display emotions can be a powerful negotiation strategy. The results also show the importance of taking a step back, rather than automatically reacting, when your adversary displays a strong emotion of any kind. He or she may be strategically displaying an emotion to elicit a response from you.

Understanding the tremendous impact of emotional expression on negotiation can also give you the tools to turn a negotiation around, as Fritz Strack, Leonard Martin, and Sabine Stepper learned in a well-known study. They found that subjects rated cartoons as funnier when they held a pen in their teeth (an action using the same muscles as smiling) than when they held a pen with their lips (which makes smiling virtually impossible). It’s no wonder that something as simple as smiling, even if you force it, is known to reduce anxiety and stress.

How does this finding translate to the negotiation table? Since it’s human nature for people to mimic one another’s facial expressions, body language, or speech, your smile can help put your adversary in a better mood. Your positive expression (even if you’re screaming inside) can help put your adversary in a more positive frame of mind – which may make him or her more likely to see things your way.

Let’s be frank: suddenly flashing a big smile in the middle of a heated negotiation won’t work (and would probably be creepy). But as suggested in a recent post by the Harvard Program on Negotiation, these lessons can help you frame your negotiation by expressing warmth and friendliness at the start, to set a positive tone. Then, as the negotiation goes on, you may display frustration or anger to tip the scales your way. When it comes to emotional expression in negotiations, honesty isn’t always the best policy.

March 12 – CMM Business Forum: Money-Saving Strategies for the Savvy Business Owner

Posted: February 6th, 2019

Event Date: March 12th, 2019

Small businesses are the backbone of the Long Island economy, comprising an estimated 90 percent of businesses incorporated in Nassau and Suffolk. With ever-increasing demands on these businesses, finding outside-the-box solutions to tackle soaring costs isn’t just creative – it’s critical.
Join us for a conversation with Long Island business owners who will share their proven approaches for effectively managing the largest expenses facing small businesses. Topics include:

  • Alternative coverage options to rein in spiraling health insurance costs
  • Employing technology to increase productivity and streamline your processes
  • Rethinking your approach to managing services from payroll and credit card processing to energy and bookkeeping
  • How to meaningfully analyze your spending
  • Using financing to manage cash flow
  • Generating business with social media to save on marketing costs

Join us for an honest look at your bottom line and come away with innovative approaches to stretch your dollars further. Your business and the Long Island economy depend on it!

Panelists:
Joe Campolo, Esq. –  Managing Partner, Campolo, Middleton & McCormick, LLP (Moderator)
Joe Camberato – President, National Business Capital and National Business Services
Jeffrey Weiner – President, HKM Associates
Tuesday, March 12, 2019

8:30 AM: Registration, networking and hot breakfast

9:00 – 10:00 AM: Presentation

All attendees will receive a complimentary copy of Traction: Get a Grip on Your Business by Gino Wickman, courtesy of Mitchell York.

Location:
CMM Academy Center
4175 Veterans Memorial Highway, Third Floor
Ronkonkoma, NY 11779

Tickets are complimentary but registration is required. Click here to register.

Jointly presented with:

National Business Capital

HKM Logo

Sponsored by:

Contact Sarah Muller at smuller@cmmllp.com with any questions.

March 20 – The Ins & Outs of Prevailing Wage Law for the Construction Industry

Posted: February 6th, 2019

Event Date: March 20th, 2019

Understanding the nuances of prevailing wage laws has become more critical than ever. Mistakes carry legal and financial consequences that can affect your ability to do business, bid on future projects, as well as your Workers’ Compensation premiums. Don’t let these errors threaten your bottom line – join us to hear from experienced practitioners in law, accounting and insurance for the crucial guidance you need to stay ahead of these complex laws and regulations and run your business with confidence.
Topics include:

  • Requirements and application of New York and federal prevailing wage laws
  • Common prevailing wage pitfalls and how contractors can avoid them
  • Best practices for filling out certified payroll reports
  • Calculation of benefits under prevailing wage laws
  • How you can minimize the impact of prevailing wage rates on your Workers’ Compensation premiums

Set up your construction company for continued success by arming yourself with the information you need to know about prevailing wage!

Presenters:
Donald Rassiger, Esq.Construction Department Chair, Campolo, Middleton & McCormick
Thomas P. Terry, CPA – Partner, Markowitz, Fenelon & Bank
Michael J. Romeo II CIC – Vice President, Industrial Coverage

Wednesday, March 20, 2019

8:30 AM: Registration, networking and hot breakfast

9:00 – 10:00 AM: Presentation

Location:
CMM Academy Center
4175 Veterans Memorial Highway, Third Floor
Ronkonkoma, NY 11779
Tickets are complimentary but registration is required. Click here to register.
Jointly presented with:
MFB Logo
Sponsored by:
ICC Logo
Contact Sarah Muller at smuller@cmmllp.com with any questions.

CMM Hosts Brentwood High School Law Student Hopefuls for Job Shadow Day

Posted: February 4th, 2019

CMM was honored to host two ambitious students from Brentwood High School for the opportunity to shadow some of our professionals. Yessica and Marilyn, who plan to pursue legal careers, received an inside look from our attorneys at life as a lawyer and received advice for college, law school, and beyond. The students met one-on-one with many members of our team and enjoyed a group lunch where topics included the importance of diversity in law and keeping an open mind when making career decisions. By participating in community programs such as Brentwood’s Job Shadow Day as well as spearheading our own programs to engage young people on Long Island, CMM is working to guide students on their career journeys and achieve diversity in the legal profession.

LIBN’s Who’s Who in Labor Law: Christine Malafi

Posted: February 1st, 2019

Christine Malafi is a senior partner at Campolo, Middleton & McCormick, LLP (CMM) and also chairs the firm’s Corporate department. Malafi’s practice focuses on mergers and acquisitions, corporate governance, routine and complex transactions, labor and employment sues (including sexual harassment prevention policies and training), as well as other municipal, insurance coverage, and fraud issues.

Malafi has been working with clients to update their sexual harassment policies to comply with the laws that went into effect last year.

“All employers should have distributed their sexual harassment policy last year and should already have in place a plan for the annual sexual harassment training required by the new laws,” she said. “In 2019, we encourage local business owners to continue to be proactive in addressing the changes, continue to actively evaluate their existing sexual harassment policies and training, and to contact me for guidance to ensure compliance with the new requirements.”

“The best way to prevent problems down the line is to make sure everyone at your company is on the same page on this topic,” Malafi noted.
Malafi also represents buyers and sellers in multimillion-dollar transactions- from technology companies to manufacturers to healthcare businesses- and serves in a general counsel role for many of the firm’s internationally-based clients.

Prior to joining the firm, Malafi was senior corporate counsel to Leviton Manufacturing Co., Inc., where she handled a variety of national and international corporate matters. In 2004, she became Suffolk County Attorney, serving as the chief legal officer of the county for eight years.
Malafi has taught undergraduate and law school classes on litigation, legal research and writing at Long Island University, C.W. Post and Touro Law Center.

She earned a juris doctor, magna cum laude, from Touro College, Jacob D. Fuchsberg Law Center and a bachelor’s degree from Dowling College.
Malafi is admitted to practice in New York and Connecticut; and before the Unite States Court of Appeals, Second Circuit, United States District Court, Southern District of New York and United States District Court, Eastern District of New York.

Malafi serves on the board of directors of American Red Cross on Long Island, Girl Scouts of Suffolk County, Family Service League and Touro Law School. Malafi has earned a Martindale-Hubbell AV Preeminent Rating and has been listed in Best Lawyers in America- Employment Law/Management (2018 and 2017).

Innovate LI Spotlights Campolo: “Staller Center Receives 10-Year Gift From LI Law Leader”

Posted: January 30th, 2019

By Gregory Zeller

Stony Brook University alumnus is pumping a decade of support into the Staller Center for the Arts.

Ronkonkoma law firm Campolo, Middleton & McCormick LLP will donate $450,000 to support scholarships and arts programs at the Staller Center through a 10-year “gift commitment,” according to the firm.

The gift continues CMM’s run as “an annual major corporate supporter of the Staller Center for the Arts live season and Stony Brook Film Festival,” CMM added.

It was arranged by SBU grad (BA, history) and CMM Managing Partner Joe Campolo, a past president of the university’s Alumni Association and member of both the Staller Center Advisory Board and the Long Island High Technology Incubator Board of Directors.

Among the projects earmarked in the latest CMM gift: the Alumni Association Past President’s Scholarship program, new sound systems for the Staller Center’s main-stage theater and recital hall and the Joseph N. Campolo Award for Legal Studies.

The Staller Center said in a statement that gifts like the CMM donation directly benefit arts and education outreach across the Long Island community.

“The new sound system that CMM funded was a much-needed upgrade to both theaters and creates a new sleek look and dynamic sound performance,” the statement added. “The Staller Center for the Arts is extremely thankful to Joe Campolo and his CMM colleagues for their unwavering dedication to helping keep the arts thriving.”

Campolo isn’t the only CMM partner to personally support SBU. Senior Partner Scott Middleton – also a university grad (BA, political science) and past president of the SBU Alumni Association, now a member of the university’s Intercollegiate Athletic Board and the Stony Brook Children’s Hospital Task Force – is the namesake of SBU’s Middleton Family Student Athletic Alumni Award.

The 10-year donation also deepens CMM’s commitment to philanthropy. In 2018, the Ronkonkoma firm launched CMM Cares, an initiative designed to rally financial donations and volunteerism around community efforts.