Andrew Kohut, Managing Partner, Wells, Jaworski & Liebman, LLP

Andrew Kohut, managing partner at Wells, Jaworski & Liebman, spoke with Invest: about their focus on land use and how current trends are influencing their strategy. He also discussed compliance, risk management, and current industry challenges.

What changes and milestones over the past year have impacted Wells, Jaworski & Liebman and shaped your operations or growth trajectory?

We are a 13-attorney law firm in Paramus, New Jersey. The firm has been around for over 40 years. I’ve been here since 2006, starting as an associate who was 15 to 20 years junior to any other attorney at the firm. This past June, I was named managing partner.

We are extremely well known in the land use and commercial real estate arena. Paramus is considered one of the retail capitals of the United States, and we’ve been doing the majority of the land use work there for decades. If you drive on Route 4 and Route 17 in Paramus and look at the properties lining the highway, there’s a good chance we were involved in the approval process.

Although we’re more North Jersey-based, we also handle matters in Central and South Jersey as client needs arise. We’re always willing to stand before any board or governmental agency to represent our clients, but our stronghold is in northern New Jersey.

We also have a newly-expanded tax, trusts, and estates department, where we work with many family- or closely-held corporations. In fact, we recently brought on a new partner, Jonathan Kukin, to lead that department. Our litigation department has grown considerably. And we’ve had significant success handling prerogative writ work (land use appeals). Appeals have become much more prevalent recently than when I first started practicing, and over the past year, we’ve realized tremendous success in that area of our practice, as well.

In addition, we do a significant amount of commercial real estate transaction work. For example, we represent one of the largest retail centers in Bergen County and handle all of its leasing work. Beyond that, we work on leases, acquisitions, dispositions, and other commercial real estate transactions statewide and across the country, as many of our clients have nationwide assets.

Where we fit in, I like to say, is that while there are larger firms that can handle a vast array of legal issues, when it comes to land use, commercial real estate transactions, and trusts and estates, I would put our knowledge and experience up against any of them. Because we are smaller, we can be more responsive and cost-effective than the larger firms, which often have more overhead. Clients appreciate that we deliver big-firm quality work with a small-firm feel. If you name a substantial development or commercial project in the Bergen County region within the last couple of years, there’s a good chance we were involved.

What trends have you noticed to be present around legal firms in NJ, and how have these influenced your internal strategy at Wells?

Since becoming managing partner, I’ve noticed a couple of significant trends. The first is that there has been an increased frequency of smaller firms being acquired by larger firms. Especially in certain areas of law, there are firms incorporating boutique firms handling niche practices into their business. It seems that every time I read a trade publication, I see another small outfit being acquired.

This often has to do with succession planning. As partners get older and no longer want to be responsible for the management of a law firm, they need a strong succession plan with younger attorneys ready to take on leadership roles. Absent of that, the easiest solution is to be acquired by a bigger firm. Also, while it is not always just about dollars and cents, sometimes it just doesn’t make financial sense to remain small.

The other major trend driving change in law firms is technology, especially AI. The integration of AI is going to have a major impact on the practice of law.

You’re already seeing attorneys use AI to draft legal documents such as contracts and briefs. There was a case in the newspaper recently where an attorney submitted a brief generated by AI that cited cases that never existed. The court discovered this and reprimanded the attorney for it. To me, that’s the scary part right now: the accuracy of what is being provided to you.

For me, it’s also a moral dilemma. As managing partner, I feel responsible for the people who work here. They rely on this firm to pay their mortgages, their rent, their bills, to put food on the table, and to raise their families. Replacing them with technology is not something I take lightly. Yes, we run a business, but at the end of the day, we’re only as strong as the people who work here. I believe the key in the near future will be getting the people of your firm to use this technology both ethically and advantageously.

In the legal world, the issue is even more complicated because of the attorney-client privilege. If you input confidential client information into an AI program, security is a permanent concern. That data could be stored, accessed, or exposed. So, it is of utmost importance to have the right protections in place to safeguard privacy.

How are firms like Wells helping clients balance compliance, risk management, and proactive legal strategies to avoid costly litigation disputes?

We’re not general counsel for companies in the sense of handling their day-to-day operations. We also don’t practice labor or employment law. Our focus is primarily on litigation involving business disputes, land use, and, increasingly, estate planning litigation, which has become much more prevalent. 

We try to make sure our clients are set up with quality advisors and sound legal documents. At the end of the day, that’s how you minimize risk for your clients. 

Another thing we pride ourselves on is knowing what we know and what we don’t. Could we handle something like a trademark or patent infringement case? Yes, we probably could. But is that in the client’s best interest? In those situations, we’ll connect our clients with attorneys who specialize in those areas. That’s part of the value we bring: we don’t just take on everything and try to figure it out as we go. Instead, we ask how our clients will be best served, even if that means referring them to another firm.

Clients appreciate that transparency and honesty. They know we’re not just trying to keep everything in-house at their expense. For instance, in certain types of litigation, you want someone who has been through those battles and knows how to navigate nuanced legal issues. Experience matters, and that’s what clients rely on when they come to us.

From your perspective, what are the biggest legal and regulatory challenges facing New Jersey businesses today?

While there may be more nuanced answers, the biggest challenge is simply the approval process in New Jersey. At the state level, dealing with agencies like the DEP or the DOT can be difficult. The process takes a significant amount of time and effort, and often those agencies can be unresponsive or make decisions we believe are incorrect. Sometimes, you can find yourself at a standstill and have to figure out how to pivot. That is the nature of dealing with agencies at the state level. 

At the municipal level, the process can also be lengthy. Often, you have to temper your client’s expectations. For example, if a client wants to get an application to a land use board approved quickly, say, within three months, the reality is that it is most likely not going to happen. The process requires patience. From the time you’re approved to the time your approval is final and not appealable, you’re most likely looking at a minimum of two and a half months, given the need for a resolution to be adopted and the statutory appeal period. Before that, you still have to complete your plans, submit your applications, go through the completeness process, and get scheduled before the board, which can take months, and this doesn’t account for the customary unforeseen delays. Additionally, land development has become a more mainstream topic with the public, which has resulted in a more focused approach by land use boards.

As a result, board members themselves are consistently more knowledgeable and thorough. Board members know exactly what they want and what they don’t want, and you have to be able to navigate that. Sometimes it means making a strong case for why your position is correct and your project, as proposed, is a benefit to the community, and sometimes it means compromise, finding a middle ground that works for both sides.

Recent changes in state and municipal regulations are reshaping land use and development approvals. What are some of the shifts your firm is tracking?

One of the biggest regulatory shifts we’re tracking is the DEP’s new stormwater regulations, which make development more difficult. It’s a challenge, but it’s something everyone has to adjust to and work through.

At the municipal level, particularly in North Jersey (especially in Bergen County), towns are now recognizing the need to allow for the redevelopment of certain sites. For years, other parts of the state have been more open to redevelopment, but now we’re seeing North Jersey towns start to implement this strategy because many of these blighted properties require more than just zoning changes. Municipalities are also increasingly using long-term tax incentive programs, PILOTs (Payments in Lieu of Taxes), to encourage redevelopment.

The challenge is that there is often a misperception regarding these incentives. The assumption is that developers are avoiding their fair share of taxes. In reality, developers are paying their fair share while being provided with certainty of what that fair share will be. It makes the project economically viable while simultaneously providing a financial benefit to the municipality.  Education is key: explaining why PILOT programs make sense and how they support both municipalities and developers needs to be at the forefront.

Another major regulatory shift is the Fourth Round Affordable Housing regulations. Municipalities are required to meet their constitutional affordable housing obligation. Currently, municipalities are in the process of proposing how they will do that, while property owners and developers challenge those municipal plans that are believed not to meet those obligations. Over the next 6–12 months, this will be at the forefront of the development world across New Jersey.

Finally, we’re also seeing a continuing shift in housing preferences. When I moved to Hoboken in 2001 after college, the story almost always ended with you moving to the suburbs when you had a family. Today, it’s a vibrant community where families, young professionals, and retirees all want to live. Multifamily housing has become increasingly attractive, even in towns that once resisted it. In fact, many of those towns now embrace a diverse housing stock because they’ve seen how successful it can be when done correctly.

What are your strategic priorities over the next two to three years, and how do you see your role in the broader legal landscape evolving?

There are three main priorities for us over the next few years. First, you have to have the right talent; the right associates, partners, paralegals, and executive assistants. Building a strong team is critical, and we’ve done a good job of that. We have a great group of younger talent in their 30s and 40s, which represents the next generation of the firm. Having that strong base of talent is of vital importance.

Second, you have to keep up with the law. The law is constantly changing, and you have to stay on top of it. You need to know what you’re talking about and stay ahead of regulatory and statutory shifts so that you can properly advise clients.

Finally, in terms of practice areas, I see our firm expanding more into tax-related issues. Not just trusts and estates, but also tax controversy, tax incentives, tax planning, and corporate tax planning. That practice area aligns well with our existing strength in land use, trusts and estates, and litigation. Taxes are a constant; whether the economy is strong or struggling, businesses and individuals will always need guidance in that space.

Given the nature and size of our firm, we’re well-positioned to become real players in tax law over the long term. It’s an area that offers a lot of opportunity and creates strong synergies with the expertise we already have.