Justia New Jersey Supreme Court Opinion Summaries
Articles Posted in Business Law
Pomerantz Paper Corp. v. New Community Corp.
Defendant New Community Corporation appealed judgments in favor of Plaintiff Pomerantz Paper Corporation stemming from a breach of contract claim. Pomerantz appealed a judgment in favor of New Community on a counterclaim that held that Pomerantz engaged in unconscionable business practices as defined by the state Consumer Fraud Act (CFA) stemming from the same contract. According to New Community, items regularly were missing from shipments. In 2000, New Community began to question the invoices and prices Pomerantz charged. By 2004, Pomerantz claimed that New Community had failed to pay invoices totaling approximately $700,000, and it filed a claim for breach of contract. New Community filed a counterclaim asserting that Pomerantz engaged in unconscionable business practices in violation of the CFA. Upon review of the contract, the parties' business dealings and the trial court's record, the Supreme Court concluded that the trial court’s findings that were central to its evaluation of the New Community's Consumer Fraud Act counterclaim failed for want of sufficient credible evidence in the record, and that the appellate panel erred in deferring to those findings and, by extension, in affirming the trial court’s conclusions. Furthermore, the appellate panel erred in its analysis of the seller’s breach of contract claim by imposing a duty of written notice of non-delivery on the buyer that is found neither in the Uniform Commercial Code nor in the course of dealing between the parties. The Court remanded the case for further proceedings. View "Pomerantz Paper Corp. v. New Community Corp." on Justia Law