A recent decision by the Superior Court of New Jersey Appellate Division has sent back for further review a years-long legal dispute over damages owed following the early departure of a charter school from property owned by a community center. The ruling comes after both parties challenged how much should be paid for lost rent, raising questions about whether the trial court properly explained its calculations and followed earlier instructions from the appellate court.
The complaint was originally filed by Central Jersey College Prep Charter School, a New Jersey non-profit corporation, against the New Jersey Chinese Community Center. The appeal was decided on April 9, 2026, following submissions made on March 3, 2026.
The dispute began when Central Jersey College Prep Charter School rented space in a building owned by the New Jersey Chinese Community Center starting in 2007. Over time, two leases were signed: one for grades six through twelve (the “upper school”) and another for kindergarten through fifth grade (the “lower school”). In 2015, disagreements arose over construction projects and negotiations to purchase the building failed. This led to deteriorating relations between the two organizations.
By July 2016, Central Jersey College Prep Charter School had secured a new lease at another location without informing its landlord. The school vacated the community center’s building in September 2017—three years before both leases were set to expire—and stopped paying rent as of August that year.
Litigation followed. In October 2016, Central Jersey College Prep Charter School filed for declaratory judgment and related relief, alleging retaliatory conduct by the community center in violation of quiet enjoyment covenants. Additional claims included constructive eviction, breach of contract, return of security deposits, conversion, tortious interference, and abuse of process. The community center responded with counterclaims seeking termination of both leases and damages for unpaid rents.
A bench trial took place between October 2019 and January 2020. On April 29, 2020, the trial court awarded $921,695 to the community center as lost rent but rejected most other claims from both sides. After motions for reconsideration and further appeals—including an initial remand—the appellate division found procedural errors in how damages were calculated and ordered another hearing specifically to determine appropriate lost rent amounts.
On remand, instead of holding an evidentiary hearing as directed by the appellate division, the trial court heard oral arguments and reviewed supplemental briefs from both parties. On January 29, 2025, it awarded $100,022.98 in damages to the community center—six months’ worth of rent under one lease minus offsets totaling $122,477 for security deposits and planning costs related to an unbuilt gymnasium project.
Both parties appealed again: The community center argued that six months’ rent was insufficient and not properly justified; Central Jersey College Prep Charter School cross-appealed claiming no damages should have been awarded at all or that it should have received $122,497 instead.
In its latest opinion dated April 9, 2026, the appellate division vacated both the January 29 order awarding damages and a subsequent March order denying reconsideration. The judges found that “the trial court did not fully conform with our remand instructions” and “did not adequately explain several material factual findings supporting its award.” Specifically at issue was why only six months’ rent was awarded instead of up to thirty-four months sought by the community center; why only one lease’s rent was considered; whether mitigation efforts such as re-letting or selling parts or all of the building were properly factored into damage calculations; and if so how those facts influenced any reduction in lost rents claimed.
The appellate division emphasized that on second remand “the trial court needs to make factual findings,” including determining:
1) How many months’ worth of lost rents are due;
2) Whether rents under both leases should be included or reduced based on any expansion by the community center into former charter school spaces;
3) Whether—and when—the building was sold by the community center,
and how these factors affect any award for lost rents.
All findings must be clearly explained according to Rule 1:7-4 governing judicial opinions.
The panel also rejected arguments raised by Central Jersey College Prep Charter School regarding offsets beyond those previously ordered ($70,000 for security deposits plus $52,477 for gym planning costs). Any final award is required to subtract these amounts from total lost rents determined on remand.
Attorneys listed in this matter include Cynthia M. Hwang representing appellant/cross-respondent New Jersey Chinese Community Center; Thomas O. Johnston (of counsel) and Jaryda A. Gonzalez from Johnston Law Firm LLC representing respondent/cross-appellant Central Jersey College Prep Charter School. The case is identified as Docket No. A-2162-24.
