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
