An order issued earlier this month relaxes and supplements Rules 5:7-4A and 5:7-5 to conform to a statutory amendment that prohibits an automatic suspension of a child support obligor’s driver’s license upon the issuance of a child support-related warrant. N.J.S.A. 2A:17-56.41 was amended in 2019 to prohibit suspensions, but became effective on Jan. 1 of this year.
The order ends the practice of suspending driver’s licenses by operation of law, but permits a suspension if, after adequate notice and an opportunity for a hearing, the court finds a license suspension is warranted.
This issue was the focus of a challenge brought on behalf of non-custodial parents to challenge these suspensions without having an opportunity to rebut any findings causing a suspension. Judge Mary C. Jacobson issued a 187-page opinion in 2018 finding that automatic suspensions must meet the minimal requirements of procedural due process, including notice and an opportunity to be heard. The matter was brought by New Jersey State Bar Association (NJSBA) member David Perry Davis, who died in Oct. 2019.
The NJSBA supported the amendment to the statute with an amendment to ensure that these matters did not fall to the Madden assignment system. It was adopted without this amendment.
Legislature considers Uniform Voidable Transactions Act
Last week, the Senate Commerce Committee passed a revision to the Uniform Fraudulent Transfer Act, which makes changes in conformance with the New Jersey Law Revision Commission. The NJSBA is still reviewing A-3884 (McKeon)/S-3171 (Pou).
Among the changes is renaming the current statute Uniform Voidable Transactions Act to more accurately reflect the nature of the transactions. In addition, the bill makes the following changes:
- provides that a debtor that is generally not paying debts as they become due, other than as a result of a bona fide dispute, is presumed to be insolvent;
- removes the requirement that the net worth of a general partner must be included in determining the insolvency of a partnership;
- revises provisions related to the defenses available to a transferee or debtors;
- provides for statutory rules for determining a debtor’s location and provides guidance to address conflict of law issues; and
- provides that the act generally modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, with exceptions.
The bill has already passed the Assembly and faces a full vote in the Senate.
This is a status report provided by the New Jersey State Bar Association on recently passed and pending legislation, regulations, gubernatorial nominations and/or appointments of interest to lawyers, as well as the involvement of the NJSBA as amicus in appellate court matters. To learn more, visit njsba.com.