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Court dismisses breach of contract case

A judge recently dismissed a case filed in a Pennsylvania court saying New Jersey was a better venue for the suit. In the breach of contract suit, one man claims that he is owed profits from a New Jersey business.

In 2010, this man and another man signed an agreement which created the business. Each man had a 50 percent interest in the limited liability company. The man claims that it was this operating agreement that was breached. He says that he was wrongfully ousted from the company and is owed profits.

The other man — the defendant in this case — claims that the agreement was not breached. Instead, he argues that the man was only ousted after forging a business contract with a third party. Furthermore, he argues that under the terms of the operating agreement, the two men were allowed to compete with one another.

However, these merits were not heard by the judge in the case. Prior to hearing arguments about the contract dispute, the defendant claimed that this was not the proper venue for the case to be heard. The judge agreed. Despite the fact that both men live in Pennsylvania, the business was formed in New Jersey. Furthermore, much of its business took place in New Jersey. Therefore, the case was dismissed without prejudice.

If the man still wants his breach of contract case heard, he will need to refile the case in New Jersey. At that point, a New Jersey judge can determine if a breach occurred. This case shows how important it is to have the right help when handling a breach of contract claim. The courts have complicated rules which need to be followed for a case to even be heard.

Source: The Pennsylvania Record, “Phila. judge dismisses commerce action involving contractual dispute, says N.J. is better venue,” Jon Campisi, Jan. 24, 2013

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