On Monday, a New Jersey state judge granted Lowenstein Sandler LLP’s request to consolidate two related cases involving the firm and local cannabis dispensary Harmony Foundation of New Jersey. Essex County Superior Court Judge Keith Lynott ruled that the fees dispute and malpractice suit would be combined, as both cases share common questions of law and fact, with substantial overlap in several areas.
Judge Lynott’s decision aims to streamline proceedings and eliminate redundancies that could arise from litigating the two disputes separately. He noted that the cases involve similar legal and factual issues, including allegations of unpaid legal fees and claims of legal malpractice.
“As Lowenstein contends, this is a relatively straightforward application for consolidation of a claim for unpaid legal fees with a claim alleging legal malpractice and other misfeasance by the attorney claimant, among other parties,” Judge Lynott explained in his ruling. “The movant has established the requisite commonality of fact and law. Considerations of efficiency, sound judicial management, judicial economy and, in particular, avoidance of inconsistent outcomes warrant the exercise of discretion to grant the relief.”
The consolidated matter will now be assigned to New Jersey’s Complex Business Litigation Program, a track designed to enhance case management and improve the efficiency of legal proceedings. This will help address any potential issues of case management while ensuring that the cases are handled effectively.
Judge Lynott also dismissed Harmony’s argument that consolidation would reward “blatant litigation tactics” by Lowenstein, and that the cases should remain separate. The judge determined that jurisdictional concerns did not require the cases to be litigated in Bergen County, where Harmony had initially filed its lawsuit.
The ongoing legal battle began in November when Lowenstein Sandler sued Harmony Foundation, Trif & Modugno LLC, and Secaucus Investors in Essex County court. Lowenstein alleges that the defendants orchestrated a hostile takeover of Harmony, leading to the dispensary’s receivership, and that Lowenstein was not compensated for legal services rendered.
In response, Harmony filed its own lawsuit in Bergen County Superior Court in January, accusing Lowenstein Sandler of assisting the dispensary’s former CEO in another attempted hostile takeover. Harmony is seeking to have Lowenstein disgorge legal fees already paid.
Lowenstein Sandler is represented by Kevin H. Marino, John D. Tortorella, and John A. Boyle of Marino Tortorella & Boyle PC. Harmony Foundation’s defendants are represented by Greg Trif of Trif & Modugno LLC.
The underlying cases are: Harmony Foundation of New Jersey Inc. et al. v. Lowenstein Sandler LLP et al., case number BER-L-000681-25, and Lowenstein Sandler LLP v. Harmony Foundation, case number ESX-L-007647-24, both in the Superior Court of New Jersey.
