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Education

  • J.D., Rutgers University School of Law - Newark, high honors, 1994
  • B.A., New York University, Deans List, 1987

    Law Clerk, Hon. Gary S. Stein, Justice of the Supreme Court of New Jersey, 1994-1995

Bar Admissions

  • New Jersey
  • New York

Memberships & Affiliations

New Jersey State Bar Association

New York State Bar Association

Essex County Bar Association

Clement J. Farley

  • |
Partner
  • T: 973.639.2064
    F: 973.297.3869
    • Four Gateway Center
      100 Mulberry St.
      Newark, NJ 07102

Clement J. Farley is a Partner of McCarter & English, LLP, and was the Chair of the Bankruptcy & Commercial Litigation Group from 2007 to 2016.  As a highly-experienced litigator of complex commercial matters, Mr. Farley has been with McCarter & English since 1995, after completing a Clerkship with the Honorable Gary S. Stein of the New Jersey Supreme Court, and graduating with High Honors and earning Order of the Coif from Rutgers School of Law—Newark. 

With nearly 25 years’ experience, Mr. Farley is regionally recognized as an accomplished and diversified litigator, handling matters in many areas of commercial and business litigation, including prosecution and defense of director-and-officer fiduciary-duty claims, disputes involving shareholders, limited-liability members, and partners, complex real-estate matters, and several other types of contract and business-tort litigation.

Mr. Farley also has considerable knowledge and experience in creditor-debtor matters, including inter-creditor-agreements disputes, lender-liability defense, fraudulent-conveyance litigation, Ponzi and fraud schemes (e.g., multiple matters involving Solomon Dwek, Eliyahu Weinstein, Marc Dreier, and Taylor, Bean & Whitaker/Lee Farkas), consumer-defense and retail-banking litigation, loan workouts, business restructurings, foreclosures, and asset recovery.

Mr. Farley represents individuals and all types of business associations, across the spectrum from small, to mid-sized, to large entities in numerous industries.  He has done so in litigation, bankruptcy, state-insolvency proceedings, arbitration, mediation, government- and administrative-agency proceedings, and out-of-court contexts, in various state and federal courts, and at trial and appellate levels.  Mr. Farley has tried multiple cases in various courts, and successfully handled and argued numerous appeals, benefitting from the experience and insight gained from his Supreme Court Clerkship.

Mr. Farley represents clients in bet-the-company litigation, and his clients have described him as very smart, tough, extremely prepared, reasonable, and devoted to achieving his client’s unquestioned success.  His clients frequently call and rely on him in crisis situations.

Mr. Farley has worked on more than 40 cases in which published decisions have issued, some of the most recent of which are:  In re Taylor, Bean & Whitaker Mortgage Corp., 2018 WL 5784699 (M.D. Fla. Bankr. Nov. 1, 2018); Intrepid Investments, LLC v. Selling Source, LLC, 86 N.Y.S.3d 463 (App. Div. 1st Dep’t 2018); Lakewood v. Castro, Secretary of Dep’t of Housing & Urban Development, 2017 WL 1228731(D.N.J. April 3, 2017); and Moche v. Levy, 2015 WL 10710974 (N.J. App. Div. April 22, 2016).

Mr. Farley has published several articles on timely topics for leading publications, as well as for McCarter’s client alerts.  He co-authored the New Jersey Law Journal article, “The ‘Per-Debtor’ Interpretation of Chapter 11,” and the New York Law Journal article, “Re-Thinking the Treatment of Withdrawal Liability in Bankruptcy.”  Mr. Farley also has been a featured speaker at numerous CLE events and client seminars on topics such as New Jersey and New York foreclosure practice, asset recovery, judgment collection, retail-banking and lender-liability litigation; and preparing fact and expert witnesses for deposition and trial, defending them at deposition and trial, and conducting their examinations at deposition and trial.

Mr. Farley was a member of the District VA Ethics Committee, and served on the New Jersey Supreme Court Commission on the Rules of Professional Conduct (RPCs) analyzing and proposing in its Report to the Supreme Court changes to New Jersey’s RPCs.  The Commission and its Report stemmed from proposed rule changes of the American Bar Association to its Model Rules.

Awards & Accolades

  • Recognized as a “Top New Jersey Lawyer” by New Jersey Monthly in its Super Lawyer Section
  • Recognized as a New Jersey Super Lawyer, 2012-2013 and 2015-2016

No aspect of these advertisements have been approved by the Supreme Court of New Jersey. See Awards Methodology.

Representative Matters

Mr. Farley represents a closely-held limited-liability company in several New York Supreme Court, Commercial Division, and Delaware Chancery cases arising from a 2010 sale of almost two-dozen of its companies, as well as in related appeals pending before the First Department.
Mr. Farley was part of a team representing a Fortune-250 United States company, which provides human-resources-management software and services, in an adversary proceeding in a Bankruptcy Court in Florida in which the Trustee sought recovery of $46 million in alleged fraudulent conveyances.  In late 2018, our client was granted summary judgment.  This matter is on appeal.
Mr. Farley represented several closely-held, real-estate companies and individuals in their appeal of a trial-court decision in a case stemming from the Eliyahu Weinstein Ponzi scheme, which had caused over $200 million in losses. The adverse judgment resulted in Mr. Farley’s clients (the trial-court defendants and subsequent judgment debtors) owing more than $12 million due to their alleged role as “feeders” of the Ponzi scheme and as “obligors” of Ponzi investments, and placed the defendants on the verge of bankruptcy when they were referred to Mr. Farley. Because his clients were unable to post a bond to stay collection, Mr. Farley successfully defended the judgment debtors against collection to the end that the judgment creditors recovered no monies. Concerning the appeal (and the judgment creditors’ cross-appeal), the New Jersey Appellate Division denied the cross-appeal, and reversed the vast majority of the trial court’s adverse rulings and awards, which reduced the judgment from some $12 million—due to the $70,000 monthly post-judgment interest accruing—to $2.3 million with a far-lower post-judgment interest rate. Thereafter, Mr. Farley defeated five applications to stay the appellate decision; had the Appellate Division summarily reverse in days a stay of the appellate decision granted by the trial court; defeated a Supreme Court Petition for Certification; and defeated two reconsideration motions filed with the Supreme Court and Appellate Division.
Mr. Farley represented a national bank in the New Jersey Superior Court and then in AAA binding arbitration in Philadelphia against a bank customer who also had an account at an investment service located with offices within the bank. The customer sued the bank and investment service for fraud, misrepresentation, UCC violations, negligence, and consequential damages due to the claimed wrongful processing of a multi-million-dollar withdrawal request that allegedly had resulted in lost business opportunities and profits. After three-and-one-half days of trial, the AAA Panel dismissed the customer’s claims, finding that he had failed to state a cause of action. The AAA Panel also awarded the bank reimbursement for all its arbitration costs.
In representing the Chapter 7 Trustee in the In re Tri-Valley Corp. Delaware bankruptcy, Mr. Farley and his team sued several directors and officers for various alleged breaches of fiduciary duties, among other claims, and other individuals for allegedly receiving improper loan repayments and broker-dealer commissions, among other alleged misconduct. After a multi-day mediation, Mr. Farley and his team helped secure a $10-million-plus recovery for the Trustee and for a related bankruptcy estate, and other creditor constituencies.