NJ’s High Court Adopts Rule Permitting Personal Liability under the Consumer Fraud Act on Officers, Managers, Owners and/or Employees of Construction Firms for Statutory Violations


In Allen v. V & A Brothers, Inc., 2011 N.J. Lexis 697 (July 7, 2011), New Jersey’s Supreme Court issued a ruling in a hotly contested case on the issue of whether officers, owners, managers and/or employees of businesses providing services to consumers can be sued individually (alongside the company) and be held personally accountable for statutory violations under New Jersey’s Consumer Fraud Act, N.J.S.A. § 56:8-1 et seq. (“CFA”). In the context of that residential construction case, the Court held that they may, and adopted a fact-specific test for liability that will render it difficult for such defendants to extricate themselves from a case with a pre-trial motion, should they find themselves named in a lawsuit.

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