SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report:
(Date of earliest event reported)
December 10, 1996
Summit Bancorp.
(Exact name of registrant as specified in its charter)
NEW JERSEY 1-6451 22-1903313
(State or other juris- (Commission (IRS Employer
diction of incorporation File No.) Identification No.)
or organization)
301 Carnegie Center, P.O. Box 2066,
Princeton, New Jersey 08543-2066
(Address of principal executive offices)
Registrant's telephone number, including area code (609) 987-3200
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Item 5. Other Events.
In a decision filed November 18, 1996, the Superior Court of New Jersey,
Appellate Division (the "Appellate Division") affirmed in part and reversed in
part the November 7, 1994 decision of the Superior Court of New Jersey, Law
Division, Bergen County (the "Trial Court") in Cushman & Wakefield of New
Jersey, Inc. v. Alexander Summer Company and United Jersey Bank. Plaintiff
brought this action to recover brokerage commissions and punitive damages,
alleging tortious interference with contract and tortious interference with
prospective economic advantage, alleging that defendant United Jersey Bank (now
Summit Bank, a subsidiary of registrant) (the "Bank") utilized plaintiff's
services to obtain leases for its new operations center and two branch banks,
and that the Bank and the co-defendant, a real estate brokerage proprietorship
owned by a director of the Bank, improperly deprived plaintiff of these
commissions. The Trial Court found in favor of plaintiff with respect to the two
branches and awarded compensatory damages of $131,250, prejudgment interest in
the amount of $42,759, and punitive damages in the amount of $400,000. The Trial
Court determined that it could not award damages relating to loss of a brokerage
commission on the operations center because the Bank leased an adjacent
property, not the one shown it by plaintiff. It also stated that it could not
consider plaintiff's legal expenses in the award of punitive damages.
The parties cross-appealed.
The Appellate Division affirmed that portion of the Trial Court decision in
favor of plaintiff with respect to the two branches and, reversing the Trial
Court, also determined that the plaintiff was entitled to damages for loss of
the brokerage commission on the operations center (estimated to be between
approximately $3.7 million and $4.2 million), and that the Trial Court should
consider plaintiff's litigation expenses in the award of punitive damages. The
Appellate Division remanded the matter to the Trial Court for further
proceedings consistent with its opinion. Defendants are petitioning the Supreme
Court of New Jersey for certification to review the determination of the
Appellate Division.
The Bank is contractually indemnified by Alexander Summer Company, the
co-defendant, against damages and legal expenses arising out of claims by third
parties, including plaintiff, for brokerage commissions.
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SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereto duly authorized.
Date: December 10, 1996 SUMMIT BANCORP.
By: /s/ Dennis A. Williams
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Dennis A. Williams
Senior Vice President
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