What the General Equity Part Means for Your New Jersey Lawsuit

Key Takeaways for Business Owners

• The General Equity Part handles cases where the plaintiff seeks action or restraint, not money damages.

• If your docket number includes “C,” your case is in the General Equity Part of the Chancery Division.

• Plaintiffs may seek injunctions, specific performance, rescission, reformation, or equitable liens.

• Equity cases move quickly — responses may be due within days, not weeks.

• LLCs and corporations must be represented by an attorney; only sole proprietors can appear on their own.

What the General Equity Part Means for Your New Jersey Lawsuit

You’re here because you, or your business, just got sued. And now you’re trying to figure out what kind of case this is, and what it means for you. In the New Jersey Superior Court, where a case goes depends on what the plaintiff is asking the court to do.

If they’re suing for money, the case goes to the Law Division. From there, it’s assigned to the Civil Part, Special Civil Part, or Small Claims Section, depending on how much they’re demanding.

But not every lawsuit is about damages.

Sometimes, a plaintiff is asking the court for something else entirely: to stop you from taking a certain action, to force you to comply with an agreement, or to prevent a future harm. These kinds of cases fall under equitable relief, and they’re handled in the General Equity Part of the Chancery Division of the Superior Court of New Jersey.

How to Know if Your Case Is in the General Equity Part

The first clue that your civil action has been filed in the General Equity Part of the Chancery Division is in the docket number at the top right corner of your Summons. In the New Jersey Superior Court, docket numbers follow a pattern.

They typically begin with a three-letter county code, like ESX for Essex or BER for Bergen, followed by a letter that tells you which division your case belongs to. If that letter is “C,” then your case has been assigned to the General Equity Part of the New Jersey Superior Court.

What Relief Can the Plaintiff Seek in the General Equity Part?

Now that you know your case is in the General Equity Part of the Chancery Division of New Jersey’s Superior Court, the next step is understanding the kind of relief the plaintiff is asking for. This isn’t about money. The plaintiff wants the court to order you to do something or stop doing something. So let’s break down exactly what that “something” known as the primary relief sought is.

Injunctive Relief

Injunctive relief is one of the most common remedies sought in the General Equity Part. The plaintiff comes to court asking the judge to stop you from doing something that’s causing harm right now.

Maybe you’re about to sell a property, misuse confidential information, breach a contract, or take some other action that could cause damage they can’t undo. Instead of waiting until after the harm is done, they’re asking the court to intervene early and issue an order that stops it in its tracks.

Specific Performance, Rescission, and Reformation

The plaintiff is asking the court to fix a situation that money alone can’t make right. Specific Performance, rescission, and reformation are tools of equity that exist to correct contracts or transactions where enforcing them as-is would leave behind real injustice.

Here’s what each of these means for you as a defendant:

• Specific performance
  The plaintiff is asking the court to force you to do exactly what you promised in a contract. This typically comes up in real estate or business sale disputes, where the deal involves something unique and can’t easily be replaced with cash.

• Rescission
  The plaintiff wants the court to cancel the contract completely, as if it never existed. This usually happens when they claim they were misled, defrauded, or both parties made a fundamental mistake.

• Reformation
  The plaintiff isn’t trying to cancel the contract. They are asking the court to rewrite part of it. The goal is to correct the written terms so they match what both of you actually intended when the deal was made.

Constructive Trusts and Equitable Liens

If you’ve just been sued in the General Equity Part, the plaintiff may be using tools like constructive trusts or equitable liens to recover something they believe you wrongfully took, diverted, or held onto.

• Constructive trust

This is something the court creates after a situation goes wrong. It’s the court’s way of saying, “You’re holding property that, in fairness, belongs to someone else.” The court imposes a trust, not because anyone agreed to it, but because equity requires it. If granted, it means you may be ordered to transfer that property back.

• Equitable lien

An equitable lien is a court-imposed legal claim on specific property or money. The plaintiff isn’t asking to take it from you right away, but they want it locked down. They’re asking the court to prevent you from selling, spending, or transferring that asset until their claim is resolved and they’re paid what they’re owed.

How Businesses Can Prepare for a General Equity Part Case

If your business is a sole proprietorship, you are the business, and you can appear pro se. But if your business is a separate legal entity, like an LLC or corporation, you must have a lawyer. 

Having an attorney means you have a professional who knows how general equity cases work, understands best practices, and can guide you through the steps needed to protect yourself and your business.

Closing Thoughts

By now in our series, we’ve covered the key courts that business owners should be aware of when facing a lawsuit. Next, we move into action: what to do once you’ve been sued. Our upcoming article will explain the response required when you receive a summons.

Are you wondering about any of the issues mentioned above? Please email us at Info@staturelegal.law or call (732) 320-9831 for assistance.

At Stature Legal, we give business owners the clarity they need to fund, grow, protect, and sell their businesses. We are trustworthy business advisors keeping your business on TRACK: Trustworthy. Reliable. Available. Caring. Knowledgeable.®

FAQs

How Do I Know for Sure My Case Is in the General Equity Part?

Check your Summons and Complaint. If the docket number includes the letter “C” and the caption says "Chancery Division, General Equity Part," your case is in this court.

Can My Business Represent Itself?

If you’re a sole proprietorship, yes, you can appear pro se because you and the business are the same. But if you own an LLC, corporation, or partnership, you must have an attorney represent the business.

What Happens if I Ignore the Lawsuit?

The court may enter a default judgment against your business. In equity cases, that could mean injunctions, court orders, or liens placed on your property without your input.

How Fast Do I Need to Act?

General Equity cases often move quickly, especially if the plaintiff filed an Order to Show Cause asking for immediate relief. You may have as little as a few days to respond.