Last week, the NJ State Supreme Court offered businesses some shelter from a perfect storm of class action lawsuits over the terms and conditions section of most business websites.

The ruling in Dugan v. TGI FridaysIncand Bozzi v. OSI Restaurant Partners, LLC may provide businesses with broader protections from class action suits surrounding technical violation of the New Jersey Truth-in-Consumer Contract, Warranty and Notice Act (TCCWNA). Specifically, the court said cases where there is no “injury, harm, reliance or intent” should not be certified as class action.

The law firm McCarter & English had filed a motion on NJBIA’s behalf in two pending cases seeking to address the “aggrieved consumer” requirement. The New Jersey Supreme Court has granted that motion.

Attorneys David R. Kott, Edward J. Fanning, Jr., Gregory H. Horowitz and Zane C. Riester have provided an overview of the Dugan/Bozzi decision and highlight other business-friendly TCCWNA decisions that may help curtail this type of litigation.

“The Court’s ruling in Dugan/Bozzi is a win for New Jersey businesses, providing strong bases for attacking TCCWNA class actions, both on the merits and on predominance grounds,” they write. “This follows a number of federal court victories in the District of New Jersey that dismissed TCCWNA claims based on lack of standing.”

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