A recent New Jersey construction law opinion by the Appellate Division in the case of CNJ Construction Corporation vs. Autobuilders General Contracting Services, Inc. illustrates just how important the precise language in a construction contracts is, and just how important it
is to have a well-written contract.
The Case of CNJ v. Autobuilders
Autobuilders General Contracting Services, Inc. was general contractor on a project for the construction of a Maserati dealership in Morris County. Autobuilders entered into four subcontracts with CNJ Construction Corporation for demolition, concrete, steel and site work on the project. Each of the subcontracts contained a provision that Autobuilders could terminate the contracts for cause if CNJ failed to perform, but had to give CNJ three days written notice prior to termination, during which time CNJ could cure the default and avoid termination. The notices had to be delivered by certain specified means, which did not include regular mail. No notice was required if CNJ abandoned the job. The contract provided that if CNJ was terminated for cause, it would be liable for any increased cost incurred by Autobuilders for completing its work on the project with other subcontractors.
New Jersey Lawyers Blog


case has a long and tangled history, but this decision illustrates several important employment law rules affecting New Jersey government employees.
enforceability of agreements in employment contracts to arbitrate disputes under New Jersey
promotion must be made according to the eligible candidates’ ranks on the list. However, an exception exists. The Rule of Three allows New Jersey Civil Service employers to bypass eligible candidates ranked higher on hiring and promotion lists in favor of lower ranked candidates so long as they select one of the top three eligible candidates remaining on the list. After each decision to hire or promote, the Rule of Three evaluation begins all over again. So, for example, if the first candidate is selected, the employer may then select any of the candidates ranked second through fourth for the second spot.
seniority and benefits for the period of their suspension.
but not including any order requiring the taking of emergency measures….” This is an important tool under New Jersey
New Jersey employment law under New Jersey’s Law Against Discrimination