Often times, litigants in New Jersey State Court file suit in the Chancery Division when their claim more properly lies in the Law Division. Ordinarily, actions involving primarily legal rights are cognizable in the Law Division even if ancillary equitable relief is sought. New Jersey Court Rule 4:3-1(a)(1) does provide that "[a]ctions in which the plaintiff’s primary right or the principal relief sought is equitable in nature… shall be brought in the Chancery Division, General Equity, even though legal relief is demanded in addition or alternative to equitable relief."
However, it is well established that an action seeking a declaration of contractual rights should be brought in Law Division. This issue often arises in declaratory judgment matters. Only on rare occasions will a declaratory judgment action belong in Chancery where inherently equitable rights (e.g., under a trust, as to an easement, in a corporation's stock) are involved.
No doubt litigants tend to gravitate to the Chancery Division motivated by the desire to secure the more individualized attention of a trial judge which occurs when that judge lives with a case from its inception, coupled with the hope of obtaining a more expeditious final decision. Chancery judges in New Jersey have a substantial case load which is due in large part to the amount of foreclosure filings. Therefore, it is important for litigants to consider whether the principal relief sought is in fact equitable in nature and file suit in the appropriate forum.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
