In Sun Chemical Corp. v. Fike Corp., 243 N.J. 319 (2020), the New Jersey Supreme Court (“Court”) opened the door for product liability claims to be pursued under either the Consumer Fraud Act (CFA), N.J.S.A. 56:8-1, et seq., alone, or simultaneously under the Product Liability Act (PLA), N.J.S.A. 2A:58C-1, et seq. The Court held that, “irrespective of the nature of the damages sought, a CFA claim alleging express misrepresentations—deceptive, fraudulent, misleading, and other unconscionable commercial practices—may be brought in the same action as a PLA claim premised upon product manufacturing, warning, or design defects.” Id. at 325. In so holding, the Court concluded that the “nature of the claims brought, and not the nature of the damages sought” will be “dispositive of whether the PLA precludes the separate causes of action” and that the “PLA will not bar a CFA claim alleging express or affirmative misrepresentations.” Id. As a result, manufacturers will now face CFA claims along with, or instead of, product liability claims, and the possibility of treble damages, attorney fees and costs, which are available under the CFA.

Background

Sun Chemical (“Sun”) purchased a suppression system (“System”) from Fike Corporation and Suppression Systems (“Fike”) that would prevent and contain potential explosions in Sun’s dust collection system. A fire occurred, and the System failed to issue an alarm. Sun attempted to extinguish the fire, but an explosion resulted in injuries to Sun’s employees and property damage.