160 W. Broadway Associates, LP v. 1 Mem’l Drive, LP

In 160 W. Broadway Associates, LP v. 1 Mem’l Drive, LP, the plaintiff sued the defendants, seeking a declaration that Defendant Memorial was a successor to Defendant Amma and liable for Amma’s debts. The trial court entered judgment in favor of the plaintiff. The New Jersey Appellate Division reversed, noting that successor liability is preconditioned on a sale or transfer of substantial assets from the predecessor entity. The Appellate Division concluded that the plaintiff failed to prove Defendant Memorial was a successor to Defendant Amma and, therefore, liable for Amma’s debt for the unexpired term of a lease with the plaintiff that Amma broke.

1-Memorial-Drive-LLC.