VERIFIED COUNTERCLAIM
1. On or about [insert], plaintiff and defendant PQR, Inc., entered into a commercial lease
agreement which related to defendant PQR = s use and occupancy of commercial space at
[insert address], in the Township of [insert].
2. Defendant PQR intended to use the commercial space for the operation of a [insert
description].
3. Defendant PQR took possession of the said space and began operation in accordance with
the terms of the lease agreement.
4. The [insert date] lease agreement stated that the commercial space lease by defendant
PQR was [insert #] square feet.
5. The lease further provided that it was for a term of [insert number of years] years with an
option to extend the term upon satisfaction of certain conditions.
6. Based on the square feet of space rented to defendant PQR, the lease provided that PQR
would pay a A fixed minimum rent @ of $______ per square foot for the first year,
$_____ for the second year, $_____ for the third year, $_____ for the fourth year, and
$_____ for the fifth year. In each instance the dollar amount per square foot was
multiplied times the amount of square feet (i.e., 1,000) to arrive at an annual and monthly
rent amount. Said calculations appear at Sections _____ and _____ of the lease.
7. Similarly, the lease provided that defendant PQR would also pay a common area
maintenance charge (or A CAM @ charge) based on the square footage leased to PQR.
Said calculations appear at Sections ______ and _____.
8. The lease agreement also provided that defendant PQR would be obligated to pay its
proportionate share of real estate taxes. Said provision appears at Sections _____ and
______.
9. Finally, the lease agreement provided that defendant PQR would be obligated to pay
management fees which are part of, and included within, defendant PQR = s CAM
charges. Said provision appears at Section _____.
10. Despite the foregoing, it has come to the attention of defendant PQR that in fact the
square footage of its leased area is not ______ square feet but rather, _____ square feet.
11. Thus, upon reviewing calculations relating to the monthly rent paid by PQR, PQR has
been overbilled and has overpaid various amounts of monthly rent.
12. Additionally, PQR has been overbilled and has overpaid various amount of CAM and tax
charges.
13. Finally, plaintiff has attempted to bill PQR for an amount for a A capital replacement cost
fund @ which plaintiff has included in PQR = s CAM charges despite the fact that there is
no such authority or provision for said charge.
FIRST COUNT B MUTUAL MISTAKE
14. There exists a mutual mistake of fact which was material to the [insert date], lease
agreement as to the gross amount of square footage as to defendant PQR = s leased space.
15. Said mutual mistake warrants the equitable remedy of reformation of the [insert date]
lease agreement so as to modify said lease to adjust the amount of square footage.
16. Additionally, defendant PQR is entitled to a credit for amounts overpaid to plaintiff as a
result of overcharges to PQR = s monthly rent amounts, CAM charges, and taxes.
WHEREFORE, defendant PQR prays for relief as follows:
a) For a finding that a mutual mistake occurred as to the representation of square footage
of PQR = s leased space in the [insert date] lease agreement;
b) For reformation of any and all provisions respecting the square footage of leased space
as contained in the [insert date] lease agreement in accordance with the mutual mistake;
c) For a credit to PQR for any and all amounts which were overbilled and/or overpaid by
PQR to plaintiff as a result of the mutual mistake;
d) For counsel fees and costs relating to this action; and
e) For any other relief which this court deems is just and necessary.
COUNT TWO B UNILATERAL MISTAKE
17. Defendant PQR herein repeats and realleges the allegations contained in the First Count
of this counterclaim as if same were fully set forth herein at length.
18. In the event the court finds that only defendant PQR was mistaken as to the amount of
square footage respecting its leased space, defendant is still entitled to the equitable
remedy of reformation since the enforcement of the erroneous and mistaken
representation of square footage of PQR = s leased space would be unconscionable and
plaintiff either knew or had reason to know of the mistake.
WHEREFORE, defendant PQR prays for relief as follows:
a) For a finding that a unilateral mistake occurred as to the representation of square
footage of PQR = s leased space;
b) For reformation of any and all provisions respecting the square footage of leased space
as contained in the [insert date] lease agreement in accordance with the unilateral mistake;
c) For a credit to PQR for any and all amounts which were overbilled and/or overpaid by
PQR to plaintiff as a result of the unilateral mistake;
d) For counsel fees and costs relating to this action; and
e) For any other relief which this court deems is just and necessary.
COUNT THREE B UNJUST ENRICHMENT
19. Defendant PQR herein repeats and realleges the allegations contained in the First and
Second Counts of this counterclaim as if same were fully set forth herein at length.
20. Because of the overbilling and overpayments to plaintiff by PQR, plaintiff has been
unjustly enriched to the detriment of PQR.
WHEREFORE, defendant PQR prays for relief as follows:
a) For a credit and/or compensatory damages to PQR for any and all amounts which were
overbilled and/or overpaid by PQR to plaintiff;
b) For counsel fees and costs relating to this action; and
c) For any other relief which this court deems is just and necessary.
COUNT FOUR B BREACH OF CONTRACT
21. Defendant PQR herein repeats and realleges the allegations contained in the First, Second
and Third Counts of this counterclaim as if same were fully set forth herein at length.
22. Plaintiff has breached the [insert date] lease agreement by overbilling and overcharging
defendant PQR for amounts of monthly rent, CAM charges, and management fees.
WHEREFORE, defendant PQR prays for relief as follows:
a) For a credit and/or consequential damages to PQR for any and all amounts which were
overbilled and/or overpaid by PQR to plaintiff;
b) For counsel fees and costs relating to this action; and
c) For any other relief which this court deems is just and necessary.
COUNT FIVE B DECLARATORY JUDGMENT
23. Defendant PQR herein repeats and realleges the allegations contained in the First,
Second, Third and Fourth Counts of this counterclaim as if same were fully set forth
herein at length.
24. Plaintiff = s attempt to interpose a A capital replacement cost fund @ charge and include
same in defendant PQR = s CAM charges is not permitted or authorized under the terms
of the [insert date] lease agreement.
25. Defendant PQR is uncertain as to its rights under the terms of the [insert date] lease
agreement and accordingly it is need of declaratory relief barring and prohibiting plaintiff
from interposing, billing, or charging PQR with any costs relating to a A capital
replacement cost fund. @
WHEREFORE, defendants demand judgment as follows:
a) Declaring and finding that plaintiff may not interpose or charge defendant PQR with
any contribution or charge relating to any A capital replacement cost fund @ under the [insert
date] lease agreement;
b) For counsel fees and costs relating to this action; and
c) For any other relief which this court deems is just and necessary.
DESIGNATED TRIAL COUNSEL
Defendants hereby designate John Lawyer, Esq. as trial counsel in this matter.
ENTIRE CONTROVERSY CERTIFICATION
I hereby certify pursuant to Rule 4:5 - 1 that this matter is not the subject of any other
action pending in any Court or of a pending arbitration proceeding, and that there exist no other
parties to be joined to this action.
JOHN LAWYER, ESQ.
Attorneys for defendants
Dated: By:
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