Blogs

Garden State Complex Business Litigation

Commentary on complex business litigation in New Jersey.
Posted: October 26, 2019

Singling Out Employee to Receive a Share of Profits Created a Fiduciary Relationship

On March 13, 2019, Judge Costello of the Hudson County Superior Court (Law Division) issued a decision in RCS Logistics, Inc. v. Expolanka USA LLC, Docket NO.: HUD-L-2668-17, holding that singling out one employee to receive a share of profits created a special relationship creating a fiduciary duty, explaining: Shareholders cannot sue for injuries arising from the diminution in value...

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Posted in New Jersey Business Litigation, Fiduciary Duties
Posted: October 24, 2019

Conversion Claim Cannot be Based on Unpaid Debt

On February 6, 2019, Judge Wilson of the Bergen County Superior Court (Law Division) issued a decision in Booth Movers Ltd. v. Sleepable Sofas Ltd., Docket No. BER L-4341-17, holding that a conversion claim could not be based on an unpaid debt, explaining: Booth Movers’ claim for conversion is rooted in the allegation that the defendants failed to return the...

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Posted in New Jersey Business Litigation, Conversion
Posted: October 23, 2019

Homeowners’ Association’s Decisions Protected by Business Judgment Rule

On March 5, 2019, Judge Wilson of the Bergen County Superior Court (Law Division) issued a decision in Bennett v. Malone, Docket No. BER-L-3443-17, holding that the decisions of a homeowners’ association were protected by the business judgment rule, explaining: A homeowners’ association has a fiduciary relationship with each of its unit owners that requires it to act reasonably and...

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Posted in New Jersey Business Litigation, Fiduciary Duties
Posted: October 21, 2019

Court Rejects Veil-Piercing Claim

On March 21, 2019, Judge Wilson of the Bergen County Superior Court (Law Division) issued a decision in Cajoeco LLC v. Bensi Enterprises, LLC, Docket No. BER-L-3477-16, rejecting veil-piercing claims, explaining: It is well settled New Jersey law that a corporation is a separate entity from its shareholders and that a primary reason for incorporation is the insulation of shareholders...

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Posted in New Jersey Business Litigation, Veil-piercing
Posted: October 18, 2019

Class Action Asserting Federal Antitrust Claims Did Not Toll State Antitrust Claims

On March 29, 2019, Judge Wilson of the Bergen County Superior Court (Law Division) issued a decision in Mercedes-Benz USA, LLC, v. Nippon Yusen Kabushiki Kaisha, Docket No. BER-L-6325-18, holding that a class action asserting federal antitrust claims did not toll state antitrust claims, explaining: MBUSA argues that the filing of federal Clayton Act claims by a putative class of...

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Posted in New Jersey Business Litigation, Antitrust
Posted: February 26, 2019

Employment Contract Term Waiving Claims for Workplace Injuries Unenforceable in New Jersey

On December 11, 2017, the New Jersey Supreme Court issued a decision in Vitale v. Schering-Plough Corporation, No. 078294, holding that a pre-accident agreement disclaiming liability was unenforceable, explaining: In section 39, the Legislature declared a public policy regarding certain agreements entered into in advance of a workplace accident: No agreement, composition, or release of damages made before the happening...

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Posted in New Jersey Business Litigation, Contracts
Posted: January 3, 2019

Rulings on Motion to Dismiss Were Not Binding Under Law of the Case Doctrine

On November 29, 2018, the Appellate Division of the New Jersey Superior Court issued a decision in Tully v. Mirz, Docket No. A-0241-17T1, explaining that a court’s holdings on a motion to dismiss were not binding under the law of the case doctrine, explaining: The law of the case doctrine provides that a legal decision made in a particular matter...

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Posted in New Jersey Business Litigation, Res Judicata/Collateral Estoppel/Entire Controversy Doctrine
Posted: December 27, 2018

Court Dismisses Tortious Interference Claims on Summary Judgment

On November 15, 2018, Judge Wilson of the the Bergen County Superior Court (Law Division), issued a decision in Comprehensive Neurosurgical, P.C., et al. v. The Valley Hospital, et al., Docket No.: BER-L-6794-16, dismissing tortious interference claims on summary judgment, explaining: NJBSC alleges that Valley’s entry into the Exclusivity Agreement constituted tortious interference with prospect economic advantage. Under New Jersey...

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Posted in New Jersey Business Litigation, Tortious Interference
Posted: October 9, 2018

Party Bound by Arbitration Provision Despite Its Lack of Conspicuousness

On September 18, 2018, Judge Mega of the Union County Superior Court (Law Division) issued a decision in Brothers General Construction & Painting, LLC v. Tocci Building Corporation, Inc., Docket No. UNN-L-941-18, holding that a party was bound by an arbitration provision despite its lack of conspicuousness, explaining: The strong public policy of this State favors arbitration as a means...

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Posted in New Jersey Business Litigation, Arbitation, Mediation and Other ADR
Posted: September 26, 2018

Action Not Barred by Entire Controversy Doctrine

On August 23, 2018, Judge DeAngelis of the Morris County Superior Court (Law Division) issued a decision in Maffei v. Apex Fund Services (US), Inc., Docket No. L-63-18, refusing to dismiss an action based on the entire controversy doctrine, explaining: Defendants argue that Plaintiffs’ Complaint in the present action violates the entire controversy doctrine and Rule 4:5-1(b)(2). Plaintiffs maintain that...

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Posted in New Jersey Business Litigation, Motion to Dismiss; Motion for Judgment on the Pleadings, Res Judicata/Collateral Estoppel/Entire Controversy Doctrine