JJ Bada 464 Operating Corp., Etc. v. Advance Security Systems, Etc.

New Jersey Superior Court Appellate Division·Decided September 15, 2025·No. A-2555-23·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-2555-23

JJ BADA 464 OPERATING CORP., d/b/a BADA STORY RESTAURANT,

Plaintiff-Appellant,

v.

ADVANCE SECURITY SYSTEMS, A DIVISION OF U.S. SECURITY SERVICES, INC., a/k/a ADVANCED SECURITY SYSTEMS, A DIVISION OF U.S. SECURITY SERVICES, INC.,

Defendant-Respondent.

Submitted September 8, 2025 – Decided September 15, 2025 Before Judges Natali and Walcott-Henderson.

On appeal from the Superior Court of New Jersey, Law Division, Bergen County, Docket No. L-3990-22.

Michael S. Kimm, attorney for appellant.

A-2555-23

Riker, Danzig, LLP, attorneys for respondents (Edwin F. Chociey, Jr., of counsel and on the brief; Siobhan A.

Neary, on the brief).

PER CURIAM Plaintiff JJ Bada 464 Operating Corp., d/b/a Bada Story Restaurant (Bada), appeals from three orders, the effect of which dismissed its complaint against Advanced Security Systems, a division of U.S. Security Services, Inc. (Advanced). In that complaint, Bada alleged Advanced breached the parties' contract and the implied covenant of good faith and fair dealing and violated the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-2. We affirm in part and remand in part.

I.

We detail only those facts and portions of the procedural history necessary to resolve the issues before us. In December 2019, Bada leased space to operate a restaurant. Prior to its tenancy, Advanced installed a commercial fire alarm and provided monthly monitoring support for the previous tenant. Bada informed Advanced it wished to continue the monitoring arrangement and subsequently paid for the monitoring service in 2020, 2021, and part of 2022.

Bada provided its business phone number to Advanced and the name and number of its outside counsel as its emergency contact. According to Bada, it

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routinely experienced problems with the fire alarm and monitoring service. It specifically alleged the "equipment routinely triggered false alarms . . . with absolutely no underlying reason (such as smoke or fire)."

Instead of first contacting its business number, Bada claimed the monitoring service routinely called its outside counsel with "emergency 'fire calls.'" These alleged "false alarms" frequently caused needless evacuations of the restaurant during business hours and the unnecessary dispatch of emergency services which purportedly cost the restaurant substantial time and money.

To rectify the problem, Advanced allegedly recommended upgrades to the system. According to Bada, it incurred substantial expense in modifying and upgrading the fire alarm consistent with Advanced's recommendations which failed to solve the problem, as the restaurant continued to experience disruptive false alarms. In approximately May 2020, Bada canceled the monitoring service and enrolled in a new service. Since the switch, Bada claimed "the fire alarm system has been trouble-free."

In its three-count complaint, Bada alleged Advanced breached the parties'

agreement and the implied covenant of good faith and fair dealing based on Advanced's purported failure to ensure the fire alarm system properly functioned. Bada contended Advanced violated the CFA because it held "itself

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out to be an alarm monitoring company" but "failed to properly discharge its role" and engaged in "unconscionable and 'fraudulent trade practices'" due to its sale of defective products and services.

Advanced moved to dismiss the complaint under Rule 4:6-2(e), and as to Bada's CFA claim argued "even accepting all of the allegations as true . . . there are no allegations that . . . Advance[d] engaged in any misleading or deceptive conduct, or any conduct that could possibly constitute an unconscionable commercial practice." Advanced further argued Bada was not the purchaser of the fire alarm, it voluntarily continued to use service and even if Advanced recommended Bada upgrade the system, nothing about its purported recommendation was fraudulent or misleading. Advanced also contended that Bada's CFA claim was deficient because it did not comply with Rule 4:5-8(a), as "the complaint completely fails to specify the nature of Advance[d]'s alleged fraudulent conduct to the extent that fraudulent conduct could even be discerned from the complaint."

Advanced maintained Bada's breach of contract claim should be dismissed because Bada did not purchase the alarm system, Advanced contended Bada could not assert a breach of "contract claim arising from the sale of the system," nor did it provide the terms of any service or monitoring contracts that Advanced

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allegedly violated. With respect to Bada's breach of the implied duty of good faith and fair dealing claim, Advanced maintained the "complaint is completely devoid of any allegation that Advance[d] had any bad motive or intention in entering any contracts with plaintiff" and the basis for the claim is impermissibly duplicative as Bada's breach of contract claim.

The court granted, in part, Advanced's application, explained its decision in a comprehensive sixteen-page written opinion, and issued a conforming order on December 27, 2022. The court dismissed Bada's CFA claim without prejudice and concluded Bada "failed to set forth with sufficient specificity the unlawful conduct, any fraud or misrepresentation, to which loss is causally connected." It explained "[s]imply alleging there was an 'unconscionable business practice of holding itself [out] as an alarm monitoring company' is not sufficient" and "alleging a defective product, without factual identification, is not enough" as a "CFA violation . . . must be set forth with some specificity."

The court rejected Advanced's request to dismiss the remaining counts in the complaint because it found "the facts presented provide a sufficient basis to support a claim of breach of the contract by alleging [a] failure to provide appropriate services, failure to provide contracted equipment, and failure to attend to the faulty alarms, as supposedly agreed upon by the parties." The court

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also determined the facts pled, i.e., that Advanced "fail[ed] to attend to the faulty system while accepting monies and recommending additional products or upgrades[,]" were sufficient to support a claim for breach of the covenant of good faith and fair dealing.

Advanced subsequently filed a motion for summary judgment and supported its application with a Rule 4:46-2(a) statement of material facts which detailed the instances in which the local fire department responded to the restaurant, for reasons unrelated to purported failures of the monitoring system. Bada opposed the motion and supported its opposition with a certification of counsel, and a Rule 4:46-2(b) counterstatement of material facts.

The court granted Advanced's summary judgment application with respect to Bada's implied duty of good faith and fair dealing claim, denied summary judgment as to its breach of contract claim, explained its decision in an oral opinion, and issued an appropriate order on January 12, 2024. The court found there was "simply no evidence before the [c]ourt that indicates that there was any breach of covenant of good faith and fair dealing with regard to the formation and/or performance of th[e] contract." It explained Advanced "tried to perform" but that a breach of good faith and fair dealing claim "simply cannot be a repeat of the same allegations to support the breach of contract."

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