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Case Law Alerts

An Expert Must Evaluate Applicable Contract Documents in Order to Opine as to Liability

Enclave Condominium Association v. Lime Contracting, Inc., Superior Court of New Jersey, Appellate Division, 2021 WL 3120864

October 1, 2021

The plaintiff, a condominium association, appealed from an order barring expert testimony and granting summary judgment to a contractor involved in a building exterior restoration project. In February 2002, the Association contracted with Lime Contracting for the work. On August 18, 2010, the Association filed suit against several parties involved in the project, including an allegation that Lime Contracting breached its contractual duties by failing to comply with the plans and specifications set forth in the agreement or otherwise failing to do the job in a workmanlike manner. The plaintiff’s expert evaluated the building conditions but did not compare the conditions to the actual contract documents applicable to Lime’s work on the project. Lime was granted summary judgment because expert testimony was required to prove the Association’s breach of contract claims and because the reports and testimony by the Association’s only liability expert were inadmissible. Separate negligence claims against Lime were precluded by the economic loss doctrine. The Appellate Court affirmed the trial court, distinguishing the facts of this case from Supreme Court precedent in Aronsohn v. Mandara, which held that where there is no express contractual provision concerning workmanship, the law implies a covenant that the contract will be performed in a reasonably good and workmanlike manner. Here, however, there was an express contractual provision concerning workmanship, and the expert’s opinions were not linked to the contract terms or specifications and were, therefore, inadmissible net opinion. The court also found that a Rule 104 hearing was unnecessary since the parties consented to a ruling on the papers submitted.

Case Law Alerts, 4th Quarter, October 2021 is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2021 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.