Asbuy Park Redeveloper's Claim Against City Revived

by: Joseph Grather
11 Nov 2009

A redeveloper’s claim against the City of Asbury Park was remanded to trial by a recent New Jersey appellate court decision.  Asbury Shores, Inc. v. City of Asbury Park, Docket No. A-2158-08T1 (November 10, 2009) (unpublished).

Plaintiff Asbury Shores is the designated redeveloper for the Springwood Avenue Redevelopment Area in Asbury Park.  Asbury Shores sought the City’s consent to assignment of its redevelopment contract with the City to a third party developer (Somerset Development, LLC).  The City refused to consent, and Asbury Shores filed suit.  The trial court ruled in favor of the City, finding that the City could withhold its consent to assignment of a redeveloper’s agreement “for whatever reason it deems worthy.”  Somerset Development appealed, and the appellate division reversed. 

 The appellate court ruled that the “law implies a covenant of good faith and fair dealing which would preclude the City from unreasonably withholding consent” to the assignment of the redevelopment agreement.  The case was remanded to the trial court for adjudication of whether the City’s refusal to consent was reasonable.

Read more about this case in the Asbury Park Press here

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