On January 11, 2021, the New Jersey Appellate Division affirmed the dismissal of a bogus lawsuit brought against our client, a temporary staffing agency, alleging lost profits and damage to the plaintiff’s business relationship with its customer. The lawsuit accused our client of engaging in fraud by misrepresenting the qualifications of an IT employment candidate who was fired only 10 days into the project.
The trial court dismissed the complaint based on the express terms of the parties’ contract which prohibited claims for lost profits and any indirect or consequential damages, and by application of the economic loss doctrine. Ironically, the contract was drafted by plaintiff. The appeals court agreed that both the contract and economic loss doctrine barred the plaintiff’s claims.
Click here [1] to read the full opinion.