City of Jersey City, a Municipal Corporation, Plaintiff-Appellant v. Frank Hague, Defendant-Respondent, and Frank…

Summary

The Supreme Court of New Jersey reversed the trial court’s dismissal of the City of Jersey City’s complaint alleging that former mayors extorted a percentage of employee salaries and held the matter for further proceedings. The majority held that the complaint sufficiently stated a claim and that a municipal corporation has the inherent power to sue to enforce a constructive trust without specific statutory authorization. Justice Heher dissented, arguing the complaint was vague and the city lacked standing to enforce a trust for employees.