New Jersey construction contractors and suppliers often have difficulty collecting money due them for their work or supplies. One of the tools available to help ensure payment is including a personal guarantee in their construction contracts. However, personal guarantees have certain requirements. The Appellate Division of the Superior Court of New Jersey addressed this issue in
the case of Extech Building Services, Inc. vs. E&N Construction, Inc., Shawn Roney and Joaquim Ferreira, et al.
Background
Extech Building Services, Inc., was the supplier of building materials on a construction project for the general contractor, E&N Construction, Inc. There was a written six paragraph agreement in which Extech extended credit for the project to E&N. The last paragraph of the agreement also had a provision for personal guarantees; however, the identity of the guarantors was not provided. There were three signature lines. Two had the names of Shawn Roney and Joaquim Ferreira, who were executives at E&N, which were signed; a third line was blank and unsigned.
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recovery of attorneys fees, enhanced damages, and a longer, six-year statute of limitations. One question left open by the Legislature was whether the statute of limitations would be applied retroactively to cover conduct prior to the amendments, or prospectively to cover only conduct from 2019 onward. The New Jersey Supreme Court has now unambiguously answered that question.
permissible scope of non-disparagement agreements in those settlement agreements in the case of