“Laches is an equitable doctrine under the law which penalizes a party with a legal right to relief from enforcing that right after passage of such period of time that prejudice has resulted to the other [party] so that it would be inequitable to enforce the right.” The policy behind Laches is to discourage stale claims. The key ingredients are knowledge and delay by one party and change of position by the other. One N.J. supreme court case (Lavin v. Bd. of Educ. of City of Hackensack, 90 N.J. 145, 152-53 (1982) discussed laches as follows:
The length of delay, reasons for delay, and changing conditions of either or both parties during the delay are the most important factors that a court considers and weighs. . . It is because the central issue is whether it is inequitable to permit the claim to be enforced that generally the change in conditions or relations of the parties coupled with the passage of time becomes the primary determinant. . . Inequity, more often than not, will turn on whether a party has been misled to his harm by the delay.
“The primary factor to consider when deciding whether to apply the doctrine of laches is has there been a general change of condition during the passage of time that has made it inequitable to allow the claim to proceed.”
“Laches has been found when there is unexplainable and inexcusable delay in enforcing a known right whereby prejudice has resulted to the other party because of such delay.” County of Morris, supra, 153 N.J. at 105 (citing Dorchester Manor v. Borough of New Milford, 287 N.J. Super. 163 (Law Div. 1994), aff’d, 287 N.J. Super. 114 (App. Div. 1996)). “It is assumed that the party to whom Laches is imputed has knowledge of his rights, and sufficient opportunity to assert them in the proper forum.” The other party, in contrast, may have good reason to believe those rights have been abandoned.
To discuss your NJ contract matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com. Please ask us about our video conferencing or telephone consultations if you are unable to come to our office.
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Contract Attorney