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Darlene Pallay, owner of CKO Kickboxing in Franklin (Sussex County), claims the Governor’s signing of Executive Order 104 on March 19 failed to abide by part of the act that requires businesses to be compensated in the event of forced closure, NJ.com reports.
Murphy's spokesman did not return the outlet's request for comment.
The suit also states that as per the DCA, Murphy is mandated to set up a board for every county with at least three members, dedicated to emergency compensation. The ultimate goal would be giving “reasonable compensation” to those whose businesses have been “taken or used,” the report says.
“[Murphy] did not follow the law, because he did not order that the affected property owners be compensated, forcing private owners to pay for a public benefit," said Robert W. Ferguson, one of Pallay’s lawyers. "In essence, the governor’s edicts, as he has ruled for the last six months, have been paid for by New Jersey’s small businesses.”
CKO Kickboxing and other businesses deemed non-essential -- including gyms -- were forced closed on March 16. Pallay’s studio had been hosting outdoor classes at 25 percent capacity beginning in June.
The suit — filed with help from Rescue New Jersey — says Pallay’s outdoor kickboxing classes failed to generate adequate revenue due to the capacity limit and that the result was a violation of the U.S. and New Jersey constitutions, which state, "private property cannot be taken for public use without just compensation,” according to the report.
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