Herbert Smith Freehills secures rare pre-discovery dismissal with prejudice of business tort lawsuit on behalf of real estate technology company New and Modern Group

Herbert Smith Freehills has obtained pre-discovery dismissal of tortious interference and unfair competition claims filed by a competitor against client New and Modern Group LLC, a multi-state real estate brokerage and property development company, with prejudice to subsequent lawsuits. The competitor, Premier Homes Pros, had alleged that New and Modern raided its employees.

Judge Robert Mega found that New and Modern's alleged conduct consisted of legitimate commercial activity and that the plaintiff had failed to allege New and Modern engaged in any unlawful or tortious conduct. The Court observed that “when the plaintiff’s economic loss is only the result of healthy competition, then the injury is not recognized as a tort.”  In a subsequent order issued on July 10, 2023, the Court dismissed the lawsuit with prejudice after Premier Homes Pros was unable to cure the defects in its complaint. 

The decision is a victory for the company as it expands its reach in the U.S., and underscores the distinction between honest competition and tortious interference with contract under New Jersey law. Herbert Smith Freehills is proud to represent New and Modern Group, which uses proprietary technology to connect homeowners and luxury property developers.

New York Disputes Partner Benjamin Rubinstein, Senior Associate Maxwell Herman, and Associate Chris Emch represented New and Modern Group in the litigation. Ben has garnered nationwide recognition for his work as a commercial litigator, advising and defending businesses in products liability actions and complex commercial disputes for more than twenty years. Max is an experienced trial attorney who routinely litigates high-stakes commercial disputes in state and federal trial courts throughout the US.

About our US Commercial Litigation and Complex Torts Team

HSF’s Commercial Litigation and Complex Torts Team in New York litigates virtually all types of complex commercial and product liability disputes in state and federal courts throughout the United States from inception through trial and appeal. The team has a successful track record of representing US and international companies in high-stakes, often bet-the-company disputes, including breach of contract, securities and consumer fraud class actions, employment, trademark, unfair competition, bankruptcy and banking-related disputes. Our US disputes team includes 12 partners and 30 associates and counsel specializing in US commercial and product liability litigation, corporate crime and investigations, and international arbitration.  

For more information, contact Ben Rubinstein and Max Herman