By Samuel D. Bornstein, P. A.

01/22/2010 If you have ever wondered what the phrase "Act of God" means, this may interest you.

In a recent decision, the Appellate Division of the New Jersey Superior Court reviewed a dispute between plaintiffs and a catering hall with which they had contracted for a wedding reception.

Plaintiffs signed a contract that required the contract price -- more than $10,000 -- be paid in advance.

Less than 45 minutes after the wedding reception began, a power failure in the area made it impossible for the reception to continue.

Plaintiffs sued for the return of their money, and more--$6,000 paid to the band and another $6,000 paid to photographers.

The trial judge denied relief because the caterer's contract contained a force majeure or "Act of God" clause. The clause excused the caterer's obligation to performance if its ability to do so was prevented by unforeseen circumstances such as wars, riots, floods, power failures, etc.

YOU BE THE JUDGE: Should circumstances beyond everyone's control entitle one party to a written contract to keep a deposit, even though he didn't provide what was required of him under the contract?

The Appellate Division reached an equitable decision. It held for the caterer and reversed the trial court. The Court reiterated valuable guidelines for measuring contract obligations.

Even in the absence of an "Act of God" clause, a party need not perform his contract if unforeseen conditions arise which make performance impracticable. Thus, the caterer was indeed relieved of the obligation to complete the catering event.

However, where one party to a contract is excused from performance as a result of an unforeseen condition, the other party is generally excused, too. Therefore, the same power failure that relieved the caterer of the obligation to provide plaintiffs with a wedding reception also relieved plaintiffs of the obligation to pay the contract price.

The Appellate Division held that since the caterer had partially performed, by starting the reception before the power failure, it was entitled to be paid the reasonable value of those services.

The decision points out that a courtroom can bring justice and may be the only way to protect your rights. Our Law Firm knows courtrooms; we have harnessed the power of the law in courtrooms to bring justice for our clients for decades in Bergen County, Passaic County, Essex County, Morris County, Union County, Hudson County, Mercer County and throughout the State of New Jersey, as well as New York City. Please contact us to discuss how we can help you in a new lawsuit or provide a "second opinion" about your pending lawsuit. There is no obligation for the initial consultation.

The New Jersey Law Firm and its attorneys are dedicated to client-driven results and protecting individual rights and business interests. For 40 years, the Law Firm has been recognized for sound legal judgment, immigration laws, real estate cases, litigation, contracts and advocacy in serving the transactional needs of both individual and business clients. If you need assistance with business or corporate formation and operations, or you seek legal advice about insurance defense, arbitrations, wrongful termination, environmental issues, bankruptcy, insurance, civil rights and other litigation alternatives, the Law Firm has the comprehensive experience, foresight, skills and talent to assist you to safeguard your assets, interest and investments. The New Jersey Law Firm's highly devoted, motivated, experienced, skilled lawyers/attorneys and effective legal professionals are always there to assist you.