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Wasserman’s, Inc. v. Township of Middletown

Supreme Court of New Jersey
645 A.2d 100 (1994)


Wasserman’s, Inc. (Wasserman’s) (plaintiff) wished to lease property and submitted a bid to Township of Middletown (Township) (defendant), which accepted the bid. The parties entered into an agreement, which contained a cancellation clause. The cancellation clause provided that in the event that the Township cancelled the lease it would reimburse Wasserman’s for any improvement costs and damages of twenty-five percent of Wasserman’s average gross receipts for one year if Wasserman’s made improvements at a cost of $142,000. Wasserman’s sublet the property to Jo-Ro (co-plaintiff), after which the Township cancelled the lease and sold the property for $610,000. Wasserman’s and Jo-Ro sued for the damages stipulated in the lease agreement, and the Township appealed a judgment in their favor.

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Holding and Reasoning (Pollock, J.)

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