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Foreclosure News: NJ CFA and PLA Claims Permitted in Action

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The New Jersey Supreme Court ("NJ SCt.") held that claims brought under New Jersey’s Consumer Fraud Act ("CFA") may be brought in the same action as claims brought pursuant to the Products Liability Act ("PLA"), provided each claim is based on distinct conduct.

In Sun Chemical Corporation v. Fike Corporation and Suppression Systems, Inc., the NJ SCt. explained "it is the nature of the actions, not the resulting damages, that determines when claims may be brought under either the CFA or the PLA." The NJ SCt. further clarified that CFA claims may be brought in instances where a party alleges “express misrepresentations: deceptive, fraudulent, misleading, and other unconscionable commercial practices,” while PLA claims are reserved for claims based upon “product manufacturing, warning, or design defects.”

The case clarifies NJ SCt.'s jurisprudence addressing the interaction between the CFA and the PLA. 

Category: Foreclosure Law

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