DHD Secures Dismissal of New Jersey Lawsuit Based on The First-Filed Rule

Dughi, Hewit & Domalewski, P.C. recently obtained a dismissal of a lawsuit based on the Court’s application of the First-Filed Rule.  The case involved complex issues and millions of dollars in alleged damages arising from a merger transaction.  The firm’s clients – who were the nominal defendants in the New Jersey action – had previously filed a similar lawsuit in Delaware against substantially the same parties and sought to have the New Jersey action stayed or dismissed in deference to the earlier-filed Delaware action. 

Under New Jersey’s First-Filed Rule, in the absence of special equities to retain jurisdiction, a state court will dismiss or stay a lawsuit if there is an already pending, substantially similar lawsuit in another state. In this matter, DHD demonstrated that the prior filed Delaware lawsuit was substantially similar to the subsequently filed New Jersey action and overcame arguments that special equities existed which would justify the New Jersey Superior Court retaining jurisdiction. 

This was a very significant outcome for DHD’s client, as it eliminated a costly, two-front legal battle and ensured that the parties’ dispute will be decided in the forum selected by our clients.

Craig A. Domalewski handled this matter and successfully argued the motion to dismiss.  Mr. Domalewski was assisted by Ryan A. Notarangelo on the brief.