News & Noteworthy

Authored - NJ Contract Law Update - Court Reaffirms Inability To Collect On Any Legal Theory In The Face Of Disabling Statutes
NOVEMBER 18, 2013 | Windels Marx - Commercial Litigation

IFuturistics, Inc. v. Avacorp LLC, ___ N.J.Super. ___, 2013 WL 3762885 (App.Div. July 19, 2013), represents a reaffirmation of the inability of an employment or placement agency to obtain recovery under any legal theory, if it was unregistered at the time of the transactions in question. Because the ultimate employer "controlled and supervised" the "daily work" of the employee, who performed her work "at [the ultimate employer's]...offices"--and for other reasons--the plaintiff was deemed an employment agency. Not having been timely registered, the plaintiff could not recover because of the 'disabling' statute for unregistered employment agencies, N.J.S.A. 34:8-45(b).

The plaintiff tried to apply contract-substitute concepts such as estoppel or fraud to 'get around' the statute. The Court held, in effect, that disabling-statute principles would not allow recovery under such circumstances. Thus, a party faced with a disabling statute may not necessarily be able to raise equitable principles to avoid that statute, if IFutrusitics represents the law.

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Clark Alpert is the author of Guide to New Jersey Contract Law, published by the New Jersey Institute for Continuing Legal Education and now in its third edition. His updates on New Jersey contract law are based on recent issues and practical methods for addressing similar situations in your practice or business. They are not intended to serve as legal advice. Clark welcomes your questions and comments.

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