Justia New Jersey Supreme Court Opinion Summaries
Articles Posted in Contracts
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
Allen v. V & A Bros., Inc.
Plaintiffs William and Vivian Allen contracted defendant V and A Brothers, Inc. (V&A) to landscape their property and build a retaining wall to enable the installation of a pool. At the time, V&A was wholly owned by two brothers, Defendants Vincent DiMeglio, who subsequently passed away, and Angelo DiMeglio. The corporation also had one full-time employee, Defendant Thomas Taylor. After V&A completed the work, Plaintiffs filed a two-count complaint naming both corporate and individual defendants. The first count was directed solely to V&A and alleged that the corporation breached its contract with Plaintiffs by improperly constructing the retaining wall and using inferior backfill material. The second count was directed to the corporation and Vincent's estate, Angelo, and Taylor individually, alleging three "Home Improvement Practices" violations of the state Consumer Fraud Act (CFA). Before trial, the trial court granted the individual defendants' motion to dismiss the complaint against them, holding that the CFA did not create a direct cause of action against the individuals. Plaintiffs' remaining claims were tried and the jury returned a verdict in favor of plaintiffs on all counts, awarding damages totaling $490,000. The Appellate Division reversed the trial court's order dismissing the claims against the individual defendants under the CFA. The panel remanded the matter to determine whether any of the individual defendants had personally participated in the regulatory violations that formed the basis for Plaintiffs' CFA complaint. The panel precluded relitigation of the overall quantum of damages found by the jury in the trial against the corporate defendant. Upon review, the Supreme Court held that employees and officers of a corporation might be individually liable under the CFA for acts they undertake through the corporate entity. Furthermore, individual defendants are not collaterally estopped from relitigating the quantum of damages attributable to the CFA violations. The Court remanded the case for further proceedings.
View "Allen v. V & A Bros., Inc." on Justia Law
Perrelli v. Pastorelle
Plaintiff Denise Perrelli appealed a trial court decision in favor of Defendants Bridget and Paul Pastorelle. Plaintiff believed the last time she sent her car insurance company a check for coverage was in 2005. She believed she had coverage on August 4, 2006, the day she got into an accident with Defendants. Geovanni Velverde, a friend, was driving at the time of the accident. He died of his injuries, and Plaintiff suffered serious injuries. Plaintiff sued Defendants alleging that her injuries were caused by Defendants' negligence. Defendants moved for summary judgment, arguing that as an uninsured motorist, Plaintiff had no right to sue. Upon careful consideration of the arguments and the applicable legal authority, the Supreme Court affirmed the lower court's decision. The Court found that under the state's "No Fault Act," a person injured while a passenger in her on uninsured vehicle was barred from suing for her injuries.