In a decision made by a New Jersey appellate court, out-of-state businesses are now allowed to file lawsuits in the state, even if their license status is defunct. As noted in a recent report on Bloomberg Law, a situation that seemingly positioned an out-of-state company at a disadvantage has led to this important ruling.
The case in question involves Pennsylvania-based NG Flooring Inc., who had nearly $100,000 claims against a contractor dismissed by a lower court. The rationale for the dismissal was that NG Flooring Inc. had not registered to do business in New Jersey and failed to file corporate paperwork over several years. The dismissal was made on the eve of the trial when the opposing counsel called attention to these omissions.
The New Jersey Superior Court Appellate Division, however, found the decision to be ill-advised both with respect to the statutory requirements and the independence of court litigation.
This adjudication underscores that outdated paperwork filed with state authorities does not necessarily quell an out-of-state company’s pursuit of justice in court. The implications of this ruling could be far-reaching, as it may encourage more out-of-state companies to take legal recourse in New Jersey, potentially increasing the number of cross-border litigations the state handles.
It is evident that this development will interest legal professionals working for businesses based outside New Jersey. Further updates on how this influences future legal proceedings, as well as its potential impact on business law, warrant close observation.