October 3, 2018

Fishkin Lucks Defeats Motion to Dismiss in New Jersey Real Estate Litigation

The Firm prevailed today in a commercial real estate litigation, in the Superior Court of New Jersey, Law Division, Hudson County, when it defeated defendant’s motion to dismiss an action the Firm brought on its client’s behalf to recover more than $15M in damages arising from defendant’s breaches of various representations and warranties in the parties’ contract of sale. After extensive briefing and a lengthy hearing before the Court in which the defendant argued that our client’s claims were barred by the “merger doctrine,” which typically extinguishes post-closing misrepresentation and breach of warranty claims, the Court agreed with the Firm’s arguments that there were questions of fact surrounding whether (i) the defendant seller fraudulently induced the Firm’s client to enter into the sale contract, (ii) the parties had modified the sale contract such that that representations and warranties “survived” closing, and (iii) a certain seldom-cited exception to the merger doctrine applied. On the basis of these findings, the Court denied the seller’s motion to dismiss in its entirety.