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JED GOLDFARB VS. DAVID SOLIMINE (L-3236-14, ESSEX COUNTY AND STATEWIDE)

Citation: Not availableDocket: A-3740-16T2

Court: New Jersey Superior Court; June 26, 2019; New Jersey; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this case, the plaintiff appeals a jury verdict awarding him $237,000 in reliance damages after the defendant withdrew a promised employment offer. The plaintiff had resigned from a lucrative position based on this promise, invoking promissory estoppel to recover lost earnings. The trial court limited his damages to the difference between his actual earnings and the promised salary, excluding expert testimony and raising issues under New Jersey Securities Law and FINRA rules. The appeal also challenged the trial judge's refusal to recuse herself following an ex parte communication with defense counsel, which the plaintiff argued created an appearance of impropriety. The appellate court upheld the jury's liability finding but vacated the trial judge's rulings due to the recusal issue. It allowed the plaintiff to present full reliance damages in a new trial, determining that his claims were not barred by securities laws or FINRA. The case was remanded for a new trial on damages before a different judge, emphasizing impartiality and judicial integrity while maintaining the jury's findings on liability.

Legal Issues Addressed

Application of Securities Law and FINRA Rules

Application: The court determined that Goldfarb's claims were not barred by New Jersey Securities Law or FINRA rules.

Reasoning: The court determined it could exercise original jurisdiction over these issues, as the record was sufficient for a decision without the need for a new trial judge.

Exclusion of Expert Testimony and Damages Calculation

Application: The appellate court found the exclusion of Goldfarb's damages expert inappropriate and allowed a recalculation of damages.

Reasoning: The court ruled that Goldfarb should be allowed to present evidence of reliance damages, that his expert testimony should not have been excluded.

Jury Findings and Judicial Review

Application: The court upheld the jury's liability finding while vacating the trial judge's rulings, ordering a new trial on damages to ensure fairness.

Reasoning: The jury's factual findings of liability, which were not contested on cross-appeal, indicate that the defendant made a clear promise of employment that a reasonable person would rely upon.

Promissory Estoppel in Employment Agreements

Application: Goldfarb sought reliance damages under promissory estoppel due to Solimine's withdrawal of an employment offer after Goldfarb left his previous job.

Reasoning: Goldfarb's appeal was based on a theory of promissory estoppel, seeking reliance damages reflecting the income lost by quitting his prior job.

Recusal of Judges Based on Appearance of Impropriety

Application: The court determined that the trial judge's involvement in ex parte communication necessitated recusal to maintain judicial integrity.

Reasoning: The court found this communication created an appearance of impropriety, leading to the vacation of the trial judge's rulings while affirming the jury's liability finding.