Andrew Rubin, Esq.

Breach of contract claims stand up, according to New Jersey court

Sometimes, those seeking breach of contract claims in New Jersey and/or other states run into snags during the process. At that point, they might choose to appeal their breach of contract claims to a higher court so they can proceed. This is what has occurred for business members of a nonprofit group who believe they are owed money from a company that is now bankrupt and have filed a federal suit.

The aforementioned business members are part of a nonprofit that was formed by entities to deal with asbestos claims. In the early 2000s, however, one of the business members filed for bankruptcy. Yet the remaining business members of the nonprofit still paid more than $250 million in personal injury claim settlements that they purport were directly related to lawsuits regarding the bankrupt company that was a former member. They are seeking to recover those monies in their federal case.

The suit, which eventually reached the U.S. Third Circuit Court of Appeals, was complicated by language that had been set forth in the members' original legal agreement to form the nonprofit and address asbestos-related claims as a unit. The language was interpreted differently by the parties involved, necessitating a federal court ruling. The final decision by the court was that the suit against the bankrupt former member could proceed.

Uniqueness is key when it comes to the topic of breach of contract claims in New Jersey. Every case has its own nuances, and in some cases, it may even be necessary to go beyond the state courts. With diligence and an understanding of how to navigate the court system, plaintiffs in these types of lawsuits can find themselves in a position of power, as this case shows.

Source: Washington Examiner, "Former members of asbestos claims resolution group can sue bankrupt co-member", , July 2, 2014

No Comments

Leave a comment
Comment Information
Email Us For A Response

Tell Us About Your Case

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


96 Park Street
Montclair, NJ 07042

Phone: 973-718-2239
Fax: 973-509-0063
Map & Directions