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Washington, DC, June 16, 2021 (GLOBE NEWSWIRE) – New Jersey Governor Phil Murphy chooses economic winners and losers Executive Order No. 128 (EO 128), this is an unconstitutional authorization that compels residential suppliers to use tenants’ security deposits to pay rent.The New Civil Liberties Union, a non-partisan, non-profit civil rights organization, submitted its Opening briefing Today in the U.S. Court of Appeals for the Third Circuit, seeking to overturn the judgment of the Court of First Instance Decide Approve the Governor’s motion to dismiss. NCLA urges the Third Circuit to rule that EO 128 violates the contractual provisions of the U.S. Constitution, thereby restoring the rule of law for all New Jersey residents.
EO 128 abolished the rights and obligations of housing providers and tenants who signed mutually voluntary contracts and explicitly prohibited the use of security deposits to pay rent. By waiving the non-exempt provisions of the Rent Bond Act (a law governing residential lease bonds in New Jersey), the governor violated the contractual provisions of the U.S. Constitution. If the terms of the contract are to retain any meaning, it must prevent state actions like EO 128 that significantly change the terms of the contract.
NCLA argued that the U.S. District Court of New Jersey made an error in its decision because it prohibited it from considering Governor Murphy’s unconstitutional procedure through EO 128 and gave “substantial respect” to the unilateral decision issued by Governor Murphy. According to the Supreme Court’s jurisprudence, the Federal Court should only comply with the state’s decision to damage private contracts if the decision is based on the deliberate and empirical judgment of the state legislature. The court of first instance erroneously gave “substantial respect” to Governor Murphy’s ill-considered decision to bypass the legislative process based on his own unsubstantiated conclusion that EO 128 “obviously served the public interest.”
The Governor’s order changed the explicit terms of the housing supplier’s contracts, changed the incentive structure of these contracts, reduced the value of the contract, and weakened the rights of housing suppliers. NCLA represented Margarita Johnson and other clients in requesting the Court of Appeal to revoke the damage caused by the court of first instance to the terms of the contract and the role of the federal judiciary in protecting private contracts from undue influence by the state. Although New Jersey claimed that the case had no practical significance. Housing providers still suffer under this EO, and they need to know whether this order will happen again.
NCLA issued the following statement:
“The decision of the court of first instance sets a dangerous precedent that allows states to essentially cancel any private contract in any regulated industry (and therefore basically every industry). Unless the Federal Court fulfills its constitutional obligations and enforces the terms of the contract , “Everyone suffers. The result of EO 128 and the decision of the court of first instance is that rents will rise and more people will find it difficult to make ends meet. “
— Jared McClain, Litigation Counsel, NCLA
“Since the beginning of the pandemic, the Murphy administration has been attacking contracts and private property rights. The courts must step in to restore the rule of law and constitutional order.”
— Harriet Hageman, NCLA Senior Litigation Counsel
For more information, please visit the case page Here.
About NCLA
NCLA It is a non-partisan, non-profit civil rights organization founded by a well-known legal scholar Philip Burger Protect constitutional freedom from infringement by the administrative state. NCLA’s public interest litigation and other pro bono advocacy efforts to tame the illegal powers of state and federal agencies and promote new civil liberties movements will help restore the basic rights of Americans.
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Judy Pino New Civil Liberties Alliance 202-869-5218 judy.pino@ncla.legal
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