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Thursday, June 21, 2012

ALPHA BEAUTY DISTRIBUTORS, INC. VS. WINN-DIXIE STORES, INC., ET AL. A-3111-10T2


ALPHA BEAUTY DISTRIBUTORS, INC. VS. WINN-DIXIE STORES,
INC., ET AL.
 A-3111-10T2

In this appeal, the court reviewed a dismissal of this
action based on plaintiff's failure in its Rule 4:5-1(b)(2)
certification to mention a pending federal action, which was
commenced by plaintiff and its majority shareholder against
other shareholders, as well as the entire controversy doctrine. 
In reversing, the court concluded that Rule 4:5-1(b)(2) was not
violated but, even if it was, dismissal represented an
inappropriate sanction.  The court also found the entire
controversy doctrine inapplicable because the core of the
federal action was a dispute between plaintiff's shareholders
and the action here sought the collection of debts allegedly due
from plaintiff's customers.  The court also held the entire
controversy doctrine was not equitably applied because the
defendants were not prejudiced by plaintiff's failure to join
them to the federal action and the interests of judicial economy
were not disserved because there was no likelihood of
duplication of effort or inconsistent determinations. 04-03-12