A recent NJ LAW JOURNAL article discussed a decision issued on Aug. 17, 2022, in ‘Schwartz v. Menas,’ the Supreme Court of New Jersey joined the majority of other jurisdictions in finding that a per se ban on lost profits damages by a new business is unwarranted. Partner, Elliot Ostrove, and Associate Lucia Wa Yang composed the article that was published on the NJLJ.com.
New Jersey long followed the “new business rule,” adopted by the Court of Errors & Appeals in Weiss v. Revenue Building & Loan Association, 116 N.J.L 208 (E. & A. 1936), which effectively barred claims for lost profits by new businesses because the court found, such claim cannot be proven with reasonable certainty.
To download a PDF of the article, click here.