MONTGOMERY, NJ — Montgomery is facing a new lawsuit from the owner of the former Kenvue property, looking to strike down a township ordinance that prohibits data centers and detention centers within Township boundaries.
The complaint was filed July 31 in Somerset County Superior Court by E. Kahn Development Corp. against the Township of Montgomery.
According to the complaint, E. Kahn owns Block 14001, Lot 2 and Block 13001, Lot 15, also identified in the filing as the Kenvue property.
The filing says the site is a former Kenvue research, office and manufacturing campus that became effectively vacant after Kenvue announced in 2024 that it was moving to Summit and later sold the property to E. Kahn in or around December 2025.
The lawsuit centers on Ordinance No. 26-1779, approved by the Township Committee on June 18.
The ordinance amended township land development rules to add a prohibition stating, "Data centers are specifically prohibited throughout Montgomery Township."
The ordinance also added a definition of a data center to the township code.
The complaint says E. Kahn had been pursuing development options for the property while also disputing the township's affordable housing planning decisions involving the site.
The filing states that after the township moved away from including the property in its housing element and fair share plan, the company pursued development consistent with the current Limited Manufacturing zoning.
According to the complaint, E. Kahn filed a general development plan application in October 2025 and later filed a site plan application on April 15, for light industrial development.
The complaint says that site plan application was declared administratively complete on June 9, and remains pending before the planning board.
In the lawsuit, E. Kahn argues the ordinance is invalid and unenforceable and asks the court to block the township from implementing it.
The complaint claims the Planning Board recommended adoption on June 8, but "the minutes of the June 8, 2026 Planning Board meeting and the video recording of same, which is posted on the Township's official website, do not reflect any discussion regarding whether the Ordinance was consistent with the Township's Master Plan."
E. Kahn is seeking declarations that the ordinance is invalid, along with an injunction barring enforcement.
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