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 and remanded for further proceedings, holding that the complaint sufficiently alleged a cause of action for restitution and that a municipal corporation possesses the inherent power to sue to enforce a constructive trust without a specific statutory grant. The Court relied on longstanding fiduciary principles and the Restatement of Trusts. A dissent argued that the complaint was vague and that the city lacked authority to act as trustee for individual employees.