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Farese v. McGarry

Superior Court of New Jersey, Appellate Division
237 N.J. Super. 385 (1989)


James M. McGarry, Jr. (defendant) entered into an agreement to rent a house from Frank Farese (plaintiff). Because McGarry believed the contract included an option for him to purchase the property at the end of the lease period, McGarry made several improvements to the home during the rental period. At the end of the lease term, McGarry continued to occupy the house for nearly seven months despite receiving a notice from Farese to vacate. After he moved out, Farese filed suit against McGarry seeking compensation for the “damage” cause to the house and twice the monthly rent for the time McGarry remained beyond the end of the lease term. McGarry filed a counter-claim for specific performance of the option to purchase the home or, in the alternative, compensation for the improvements he made to the property. A jury concluded that Farese would be unjustly enriched if he did not pay for the improvements made by McGarry. Thus, the jury awarded McGarry $13,000 on his counter-claim. Farese appealed.

Rule of Law


Holding and Reasoning (Brochin, J.)

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