Real estate developers and construction contractors in New Jersey have long faced significant risks with respect to personal liability arising out of their companies’ work. The New Jersey Supreme Court in Allen v. V & A Bros., Inc. recently confirmed that personal liability under New Jersey’s Consumer Fraud Act (“CFA”) for the principals and certain employees of contractors can be awarded based on regulatory violations. The risk of personal liability for such regulatory violations could now also be extended to real estate developers who previously were generally only concerned about personal liability under the New Jersey’s Planned Real Estate Development Full Disclosure Act (“PREDFDA”), Real Estate Sales Full Disclosure Act (“RESFDA”) and certain of New Jersey’s environmental laws. Personal liability for CFA claims is of substantial and provides for the award of triple damages and attorneys’ fees to a prevailing plaintiff.
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