Case Law Alerts
Court finds no “ascertainable loss” where cost to complete does not exceed contract price.
In a recent unreported decision from the Superior Court of New Jersey, Appellate Division, the court upheld the trial judge’s finding that the breach of contract claims of both the homeowner and the contractor should be dismissed, as should the homeowner’s claims under the Consumer Fraud Act. The court found that approximately 70% of the work had been completed and that the contractor had been paid about 70% of the contract amount. In addition, the homeowner failed to prove that the cost to complete the project with a different contractor exceeded the total cost of the original contract. In light of those findings, the court found no breach of contract and no ascertainable loss. Due to the lack of ascertainable loss, there was found to be no Consumer Fraud Act claim.
Case Law Alert - 2nd Qtr 2012