Johnson v. McClellan

Plaintiff Cindy Johnson brought a civil action for damages resulting from Defendant’s alleged unauthorized practice of law regarding his involvement in Plaintiff’s prior medical malpractice suit. Plaintiff also sought disgorgement of a referral fee she claimed Defendant received improperly. The trial court granted summary judgment in favor of Plaintiff and awarded over $500,000. The New Jersey Appellate Division reversed. First, the Court held that disgorgement is an equitable remedy, not a cause of action. Second, the Court found no evidence that Plaintiff sustained an “ascertainable loss,” a required element for the cause of action.

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