Appellate Court’s Dismissal of Consumer Fraud Suit Limits Reach of Consumer Protection Law

Morristown, NJ (August 23, 2017) – On August 22, 2017, New Jersey’s Appellate Division affirmed a trial court’s 2015 dismissal of a putative class action alleging that Lumber Liquidators’ sales invoices violated New Jersey’s Truth-in-Consumer-Contract, Warranty and Notice Act (“TCCWNA”) and Consumer Fraud Act (“CFA”). Brian E. O’Donnell of Riker Danzig argued the appeal on behalf of Lumber Liquidators.

Plaintiffs alleged no defects in the hardwood flooring they had purchased from Lumber Liquidators and no damages, but sought statutory civil penalties of $100 under TCCWNA for each putative class member, as well as attorney’s fees, based on the allegation that Lumber Liquidators’ sales invoices violated the New Jersey Furniture Delivery Regulations (the “Regulations”). Those Regulations require sellers of “household furniture” in New Jersey to include in their sales invoices certain disclosures. Like the trial court below, however, the Appellate Division rejected plaintiffs’ argument and confirmed that the Regulations do not apply to sales of hardwood flooring in New Jersey.

The question presented was thus one of first impression: whether hardwood flooring falls within the definition of “household furniture” under the Regulations, which includes, without limitation, “furniture, major electrical appliances, and items such as carpets and draperies.” The Appellate Division agreed with the lower court’s interpretation of the plain meaning of this definition as excluding non-moveable improvements to real property, such as hardwood flooring and wall-to-wall carpeting. The decision is an important one, as a win for plaintiffs would have expanded the scope of the Furniture Delivery Regulations beyond sales of “household furniture” to apply to sales of raw building materials in New Jersey.

O’Donnell commented, “We are extremely pleased with the result and especially gratified to see the New Jersey appellate courts pushing back against the tide of aggressive ‘no injury’ TCCWNA class action litigation in New Jersey."

Amicus support came from the New Jersey Civil Justice Institute and the U.S. Chamber of Commerce, as the matter presented issues of significance to the business community.

About Riker Danzig:

For over 130 years, Riker Danzig Scherer Hyland & Perretti LLP has focused on providing high-quality legal services to the business community. Headquartered in Morristown, New Jersey, the Firm has additional offices in Trenton and New York. Riker Danzig has earned a national reputation for expertise in trial and appellate litigation, insurance, commercial law and bankruptcy and, in addition, has highly-respected practices in products liability, environmental law, employment law, family practice, tax and trusts and estates, corporate law and mergers & acquisitions, governmental affairs, public utilities, real estate and intellectual property.

August 23, 2017
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