GRACE'S DREAM, LLC v. STONE HARBOR MARINA INC.
3:24-cv-05651
| D.N.J. | Feb 5, 2025Background
- Plaintiffs Grace’s Dream, LLC (owned by Jacob Dayan) purchased a 2021 Pursuit S428 boat from Stone Harbor Marina for over $1.1 million, primarily for Dayan's personal use.
- Shortly after delivery, multiple defects were discovered with the vessel, ranging from structural cracks to persistent engine problems, resulting in loss of use during the boating season.
- Plaintiffs sought both repairs and ultimately replacement or refund from Pursuit Boats (the manufacturer) and Stone Harbor Marina (the seller), but these efforts were unsuccessful and the boat remains in Pursuit Boats’ possession due to a dispute over storage fees.
- Plaintiffs sued both Pursuit Boats and Stone Harbor Marina, asserting various contract and quasi-contract claims, plus conversion, trespass to chattels, and breach of bailment.
- Defendants moved to dismiss based on issues of standing, duplicative claims, and enforceability of a contractual warranty disclaimer; the court assessed these on partial motions to dismiss.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing (Dayan as individual) | Dayan is a third-party beneficiary of the contract | Dayan cannot recover individually for LLC's injuries | Sufficient to survive dismissal, discovery required |
| Breach of implied good faith/fair dealing | Permitted as alternative, contract unclear on boat condition | Duplicative of breach of contract | Dismissed as duplicative |
| Unjust enrichment | Should proceed with contract claim—contract unclear on condition | Not allowed when contract is valid/enforceable | Dismissed as duplicative |
| Implied warranty disclaimer | Disclaimer not conspicuous or effective | Disclaimer is clear/conspicuous as per statute | Disclaimer upheld, implied warranty claim dismissed |
Key Cases Cited
- Wade v. Kessler Inst., 798 A.2d 1251 (N.J. 2002) (describes the covenant of good faith and fair dealing in contracts and when it is actionable)
- Ross v. Lowitz, 120 A.3d 178 (N.J. 2015) (analyzes third-party beneficiary status and intent in contract law)
- Grant v. Coca-Cola Bottling Co. of N.Y., 780 F. Supp. 246 (D.N.J. 1991) (defines requirements for third-party beneficiary claims)
- VRG Corp. v. GKN Realty Corp., 641 A.2d 519 (N.J. 1994) (unjust enrichment elements under New Jersey law)
- Ventura v. Ford Motor Corp., 433 A.2d 801 (N.J. Super. Ct. App. Div. 1981) (standard for conspicuousness of warranty disclaimers)