Articles Tagged with New Jersey Business Attorneys

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courthouse-303370__340-300x192The General Equity Part of the Chancery Division of the Superior Court of New Jersey has the ability to grant “equitable” relief in addition to money damages, making it a desirable venue for business dispute.

Where a New Jersey lawsuit is heard is determined by New Jersey’s Rules of Court.  Civil actions are heard in the various divisions of the Superior Court.  Civil cases with disputes of up to $3000 are heard in the Small Claims Division of the Superior Court.  Civil cases with disputes of up to $15,000 are heard in the Special Civil Division of the Superior Court.  All other cases are heard in either the Law Division or Chancery Division, General Equity Part.  The Law Division hears lawsuits which seek primarily “legal” damages – ie., suits which are primarily for money.  The General Equity Part of the Chancery Division  hears “actions in which the plaintiff’s primary right or the principal relief sought is equitable in nature.”  Thus, in order to understand what is heard in the Chancery Division, we need to take a brief trip back to Merry Olde England and talk about the split between courts of “law” and “equity.”

The law courts in England gave “legal” relief, but developed a complex system of writs.  If a suit did not fit precisely within the requirements of one of the writs, relief was denied.  The office of the chancellor developed even prior to the Norman Conquest in 1066 as the “king’s conscience,” and could grant relief when remedies at law were inadequate.  The chancery, or equity, court eventually carved out its own sphere, creating a rigid and artificial barrier between law and equity, creating a situation in which litigants sometimes could not find relief in either.  Charles Dickens described the effects well in his classic novel Bleak House:

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courthouse-1223280__340-300x200“Legal” and “Equitable” Remedies in New Jersey Courts                                                

Business litigation involves a claim that one party caused business harm to another, and sometimes counterclaims that each side caused the other harm.  At the end of the case, if a court (whether a judge or jury depending on the facts and procedural status of the case) finds that one side did, in fact, harm the other, it will award a remedy.  Through ancient legal doctrine stretching back to Merry Olde England, the law recognizes two types of relief, legal remedies and equitable remedies.

Legal relief is at is essence money damages.  A civil action for legal relief involves a claim that a party has been wronged in violation of the law, and the harm can be compensated with an award of money damages.  For example, a contract was breached by party B, and as a result party A suffered $1000 in lost damages; when the court awards the party A $1000 in damages, that is a “legal” remedy, and the damages are “compensatory” damages.  Let’s say instead that Party B defrauded Party A, and that Party A suffered $1000 in damages.  The $1000 party A lost are still compensatory damages.  However, in fraud punitive damages are available if the fraud was especially egregious.  So let’s say the court awarded another $2500 in addition to the $1000 compensatory damages to deter Party B from ever defrauding anyone again.  The $2500 are punitive damages.

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