An Update on the New Business Rule in N.J.

Reports of its repeal, so far, have been greatly exaggerated

, New Jersey Law Journal


New Jersey remains among the minority of states enforcing a rule barring the recovery by a new business of damages for lost profits caused by a tort or a breach of contract. However, this "new business rule" applies only in New Jersey's state courts, not in diversity cases filed in the Third Circuit based on New Jersey law.

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