MAY 2014
Table of Contents
Campolo, Middleton & McCormick, LLP, is a full-service business law firm that represents clients in a wide variety of legal matters including litigation, trials & appeals; corporate; mergers & acquisitions; private equity; intellectual property & technology; municipal, liability & government relations; labor & employment; real estate development; healthcare; wills, trusts & estates; matrimonial & personal injury matters including the defense of general liability, construction, premises liability and transportation cases. 

The information contained in this newsletter is provided for informational purposes only, and should not be construed as legal advice on any subject matter. The Firm provides legal advice and other services only to persons or entities with which it has established an attorney-client relationship. No recipients of information from this newsletter, clients or otherwise, should act or refrain from acting on the basis of any information included in this newsletter without seeking appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. The content of this newsletter contains general information and may not reflect current legal developments. The Firm disclaims all liability in respect to actions taken or not taken based on any or all of the contents of this newsletter.
To access past newsletters visit our Newsletter Archive

Insurer's Potential Liability for Breach of Defense Obligations
By Christine Malafi, Esq.
Recently, the New York State Court of Appeals issued its second decision in the case of K2 Investment Group, LLC v. American Guarantee & Liability Insurance Co., 22 N.Y.3d 578, 983 N.Y.S.2d 761 (2014).  In this 2014 decision, the Court reaffirmed the principles under which insurers and their counsel in New York State have been guided for decades, pursuant to its decision in Servidone Construction Corp. v. Security Insurance Company of Hartford, 64 N.Y.2d 419 (1985). The recent decision continues to allow insurers who have been found to have wrongly denied their defense obligations under a liability insurance policy to continue to rely upon policy exclusions to fight the duty to indemnify an insured as to an adverse judgment or settlement. In other words, the failure to properly fulfill defense obligations does not serve to create insurance coverage under a policy of insurance without reference to that policy's exclusions.   
The Madman Theory of Negotiations
By Joseph N. Campolo, Esq.

Decades ago, Richard Nixon popularized the "madman theory" of negotiations. It suggested that demonstrating a willingness to consider "madness" in action would provide you with negotiating leverage. If your adversary believed that you really might do something extreme or even self-destructive, then you held more of the negotiating power, even if you were too rational ever to actually carry out the threat.


Consider trying this madman approach when you negotiate your next business deal: start by being nice and cheerful, then flash some anger. Repeat as often as necessary, but always in that order. Never start with anger. It will throw your opponents off balance, making them think you're unpredictable, if not a bit unbalanced, and they may be more willing to make concessions because of the uncertainty that a deal will get done.

Read More 
New Bill May Change Nation's Trade Secret Laws
By Eryn Y. Truong, Esq.
Preliminary injunctions are a powerful form of immediate relief, yet they are rarely obtained in patent cases.  Although the standard for obtaining a preliminary injunction in a patent case is no different than other cases, several factors contribute to making a preliminary injunction in a patent case more difficult to obtain.  A new bill has been introduced in Congress seeking to add a federal civil cause of action for trade secret theft.

The "Defense of Trade Secrets Act of 2014" would permit a trade secret owner to bring a civil action for a violation of the Economic Espionage Act, which makes the theft or misappropriation of a trade secret a federal crime.  
Testing New York's Long-Arm Statute to Obtain Personal Jurisdiction Over Out-of-State Defendants
By Jeffrey V. Basso, Esq.
One of the fundamental issues that must be analyzed before commencing a lawsuit is whether you can obtain personal jurisdiction over the individual or entity you intend to sue.  When all of the parties reside or do business in the same state, or better yet the same county, personal jurisdiction becomes an afterthought.  However, when the defendants reside and/or do business outside of New York, the question of whether you can obtain personal jurisdiction becomes critical.  A recent decision in the Commercial Division, Suffolk County analyzed the key factors in determining whether personal jurisdiction exists and presents a cautionary tale for plaintiffs to consider when deciding on litigation against out-of-state defendants.
Protecting Your Assets
By Marty Glass, Esq.


Over the course of my career, I've found that there are really two parts to being an estate planning attorney. The first part is to actually create and execute a plan for my clients. The plan usually consists of a Will or a trust, along with a Power of Attorney, Health Care Proxy and Living Will. This is to ensure that whatever is in your estate gets to pass to who you want, when you want and who gets to control this passing of assets. 


The second part is what's commonly referred to as asset protection. This simply means making sure that your estate paln actually has assets to pass. Otherwise it's an exercise in futility. 


But who are we protecting our assets from? 

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CMM Welcomes William McDonald to Firm
Campolo, Middleton & McCormick LLP is pleased to announce that as of May 1st the Law Offices of William McDonald, P.C., a general practice firm with a special emphasis on representing individuals and small businesses, is merging with CMM. William McDonald will be Counsel to the firm and will head our Healthcare and White Collar Defense practice areas. 
Kanter Elected Secretary of Pet Peeves
We would like to congratulate Lauren Kanter on being elected as Secretary to Pet Peeves. The not-for-profit organization is "the voice of Long Island pets," and raises funds that go directly to rescue groups and no-kill shelters that work tirelessly to help homeless and abused animals across Long Island. 
DeRiggi Appointed to Board of the Riverhead Foundation
We would like to congratulate Ellen Bissett DeRiggi on her appointment to the Board of Directors of the Riverhead Foundation for Marine Research and Preservation, a not-for-profit organization that operates the New York State Marine Mammal and Sea Turtle Rescue Program. The primary mission of the Riverhead Foundation is to preserve and protect our marine environment through education, rehabilitation, and research. The Riverhead Foundation is located within the Long Island Aquarium & Exhibition Center. 
CAPS Golf Outing June 9th
On Monday, June 9th, Child Abuse Prevention Services will be hosting its 16th Annual Golf Outing at the Mill River Club in Upper Brookville, Long Island. A fabulous course, terrific food, raffle and auction will all support the organizations bully-prevention and child abuse programs. 

For more information please contact 516-621-0552 x101 or 
Stony Brook Children's Hospital Comedy Night
On Wednesday, June 18, Stony Brook Children's Hospital will host a benefit comedy show at Stony Brook University's Staller Center for the Arts starring Billy Gardell from the hit CBS sitcom, Mike & Molly. All proceeds will benefit Stony Brook's Children's Hospital, Suffolk County's only dedicated children's hospital.

For more information about the benefit comedy show, please contact 631-632-4466 or 
Join us every Friday at 10:30 am for our Long Island Legal web show on  
Our May Shows
May 2nd Meet Partner 
Scott Middleton
May 9th Meet Partner 
Christine Malafi
May 16th Joe Campolo with special guest Bill Schoolman, President & CEO of 7Bus
May 23rd Joe Campolo with special guest Steve Levy, Of Counsel to CMM and former Suffolk County Executive

May 30th Joe Campolo with special guest Senator Lee Zeldin

Campolo, Middleton & McCormick, LLP
4175 Veterans Memorial Highway, Suite 400
Ronkonkoma, New York 11779
Phone: (631) 738-9100
Fax: (631) 738-0659


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