Justia New Jersey Supreme Court Opinion Summaries

When a toxic disaster hits, claimants could seek relief in the form of assistance from the New Jersey Spill Fund by following promulgated claims procedures. In order to resolve disputes over denied Fund monies quickly and fairly, the Fund uses arbitrators and flexible procedures to allow claimants the opportunity to demonstrate that the denial constituted arbitrary and capricious action. Petitioner, US Masters Residential Property (USA) Fund, submitted a claim for Spill Fund monies for its multi-lot property located in Bayonne that was affected by storm floodwaters, which allegedly carried petroleum-based toxins. Neighboring properties also affected by the storm’s toxin-laden floodwaters were afforded Spill Fund relief. Following some back and forth with the Department of Environmental Protection (DEP), petitioner’s claim was denied. After petitioner filed an appeal, two years elapsed between the request for arbitration and the commencement of the arbitration proceeding. The results of the arbitration ended in favor of the Spill Fund, and payment remained denied. The New Jersey Supreme Court expressed "concerns" about the arbitration. "Although we are mindful of the deferential standard of review, flaws in the substantive reasoning of the arbitration decision as well as procedural fairness considerations undermine confidence in the outcome of this arbitration enough to persuade us, in the interest of fairness, to require that a new arbitration be conducted. Accordingly, we reverse and remand this claim for a new proceeding." View "US Masters Residential Property (USA) Fund v. New Jersey Department of Environmental Protection" on Justia Law

In 2010, a nine-month-old infant, J.H., suffered permanent scarring when he was burned by an uncovered, free-standing cast iron loop radiator in an apartment owned and managed by defendants R&M Tagliareni, LLC, and Robert & Maria Tagliareni, II, LLC. J.H.’s father placed J.H. in a twin bed to sleep with his ten-year-old stepsister. The bed did not have rails and was adjacent to a steam-heated radiator that did not have a cover. The next morning, J.H. was discovered lying on the floor with his head pressed against the hot radiator. As a result of the seriousness of J.H.’s injuries, the Hudson County Prosecutor’s Office launched a child abuse investigation. Detectives spoke with the building’s superintendent, who explained that while the individual apartments were not equipped with thermostat controls, the radiators in each room of the apartments could be shut off by the tenants through valves located at the base of each radiator unit. J.H. and his guardian ad litem filed suit, alleging defendants’ negligence was the cause of J.H.’s injuries. The New Jersey Supreme Court was unpersuaded that N.J.A.C. 5:10-14.3(d) imposed any regulatory duty on landlords to cover in-unit radiators with insulating material or a cover. The Court also found the tenants in this case maintained exclusive control over the heat emanating from the radiator, therefore, the Court declined to impose on landlords a new common law duty to cover all in-unit radiators. View "J.H. v. RM Tagliareni" on Justia Law

Plaintiff Frank Chiofalo, a then-member of the New Jersey State Police (NJSP), filed a complaint under the Conscientious Employee Protection Act (CEPA) against his employer and certain supervisors (collectively, defendants). As the Assistant Administrative Officer of Troop B of the NJSP, Chiofalo was required to log documents that came in and out of headquarters and to collect reports from the Troop B commander. Chiofalo alleges he was subjected to adverse employment actions as retaliation for his engagement in protected activity related to two incidents. The first pertained to a claimed refusal to destroy internal NJSP documents. In 2012, a sergeant and a trooper participated in an unsanctioned escort on the Garden State Parkway, for which they later became subjects of internal review. Chiofalo claimed that the second protected activity occurred during an interaction with the Troop B Commander, in which he accused the Commander of not reporting his vacation time. Defendants filed a motion for summary judgment, alleging that Chiofalo failed to set forth a prima facie case under CEPA. The court denied the motion. The matter proceeded to trial, and a jury awarded Chiofalo compensatory and punitive damages. The Appellate Division reversed the trial court judgment, stating, with respect to the validity of a CEPA claim under N.J.S.A. 34:19-3(c), a plaintiff had to first find and enunciate the specific terms of a statute or regulation, or the clear expression of public policy, which would be violated if the facts as alleged are true. The appellate court concluded that Chiofalo failed to do so and that defendants were entitled to summary judgment on that basis. Specific to the timekeeping claim, the Appellate Division added that Chiofalo’s statement to the Commander “was hardly 'whistleblowing’ as contemplated by CEPA.” The New Jersey Supreme Court reversed in part, finding the trial court did not er in refusing to grant defendants' motion for summary judgment on one of plaintiff's two bases for whistleblowing charges. The Court affirmed with respect to the alleged timesheet violation. View "Chiofalo v. New Jersey" on Justia Law

Officer Corey Corbo became gravely ill while at home with his girlfriend and colleague, Officer Jessica Garcia. Garcia called 9-1-1 and later admitted that Corbo had ingested cocaine five days earlier. The paramedics rushed Corbo to the hospital, where his laboratory results came back positive for cocaine. Relying on the hospital records, which included the positive lab results, and Garcia’s statement about the cocaine, Union City terminated Corbo’s employment with the UCPD. The Appellate Division reversed the decision removing Corbo from the UCPD, holding that the ALJ erred when she admitted the hospital records into evidence without first requiring the City to lay foundational testimony to satisfy the requirements of the business records hearsay exception. It also held that the City failed to establish the reliability of the lab results or to introduce other competent evidence at the hearing but did not remand for further evidentiary proceedings. The New Jersey Supreme Court modified the judgment of the Appellate Division and remanded matter to the Office of Administrative Law for further proceedings to allow the City the opportunity to demonstrate that the hospital records were admissible as business records, and for the opportunity to present any other theories of admissibility. View "In the Matter of Corey Corbo" on Justia Law

T.L. consulted Dr. Jack Goldberg for a blood condition. In October 2010, Dr. Goldberg told T.L. about a new medication, Pegasys. After taking Pegasys, T.L. experienced a number of symptoms, but Dr. Goldberg advised that T.L. should continue taking Pegasys. T.L. began experiencing severe pain in her neck and both arms, requiring hospitalization and rehabilitation. T.L. was diagnosed with inflammation of the spinal cord and experienced partial paralysis on her right side. T.L. brought suit against Dr. Goldberg and his employer, Penn Medicine Cherry Hill. T.L. claimed that Dr. Goldberg deviated from accepted standards of care by prescribing Pegasys to her because she was diagnosed with, and took medication for, chronic depression. During Dr. Goldberg’s deposition, when asked whether he was aware of any studies in the Journal of Clinical Oncology pertaining to the use of Pegasys to treat patients with T.L.’s condition, Dr. Goldberg answered “no.” On T.L.’s motion, the court barred Dr. Goldberg from using any medical literature at trial that was not produced during the course of discovery. At trial, Dr. Goldberg testified that he prescribed Pegasys to T.L. because he relied upon a clinical trial, published in the Journal of Clinical Oncology in 2009, that included patients with a history of depression. T.L.’s counsel did not object. The jury found that Dr. Goldberg did not deviate from the applicable standard of care. T.L. was granted a new trial on grounds that Dr. Goldberg’s discussion of the 2009 publication constituted reversible error. Dr. Goldberg appealed as of right based on a dissenting justice in the Appellate Division's reversal of the trial court. The New Jersey Supreme Court reversed, finding there was no demonstration that the changed testimony caused prejudice to T.L., and the plain error standard did not compel reversal, "especially because counsel’s failure to object was likely strategic." Under the circumstances, T.L. was not entitled to a new trial. View "T.L. v. Goldberg" on Justia Law

Plaintiff Frank Caraballo joined the Jersey City Police Department (JCPD) as a police officer in February 1973 and became a detective in 1977. While on duty in August 1999, Caraballo sustained injuries to his hands, back, knees, and legs during a motor vehicle accident. The injuries to his knees were severe and became chronic. As a result of those injuries, Caraballo fluctuated between full duty, light duty, and paid sick leave throughout the remainder of his tenure on the police force. In August 2001, Caraballo filed a workers’ compensation claim related to the 1999 accident. He also underwent anterior cruciate ligament reconstruction surgery on his left knee. Over the next several years, physicians evaluated Caraballo to determine whether he required bilateral knee replacement surgery. On March 4, 2013, more than six-and-a-half years after he requested that the JCPD authorize knee replacement surgery, Caraballo settled his workers’ compensation claim. Shortly thereafter, he filed a complaint against the JCPD asserting a cause of action under the New Jersey Law Against Discrimination (LAD). Specifically, Caraballo alleged that the JCPD failed to authorize his knee replacement surgery and, therefore, failed to reasonably accommodate his disability. The trial court granted the JCPD’s motion for summary judgment, finding that even if the knee surgery could have qualified as a reasonable accommodation, the record contained several medical evaluations showing that Caraballo was unable to carry out the responsibilities of a police officer with or without the surgery. The trial court also found that Caraballo could not bring a viable LAD claim because he failed to enforce his right to have knee surgery in the workers’ compensation court. The Appellate Division reversed. According to the panel, the record contained numerous material factual disputes -- including why Caraballo retired without receiving knee surgery -- that should have been presented to a jury. The Appellate Division also concluded that Caraballo established a prima facie failure-to-accommodate case under the LAD. The New Jersey Supreme Court reversed, finding Caraballo’s failure to utilize the Act’s administrative remedies to obtain knee replacement surgery precludes his failure-to-accommodate claim under the LAD. In addition, Caraballo’s total knee replacement surgery cannot qualify as a reasonable accommodation under the LAD. View "Caraballo v. City of Jersey City Police Department" on Justia Law

In a consolidated appeal, the New Jersey Supreme Court considered one central issue: whether the New Jersey Legislature intended to deviate from its highly regulated no-fault system of first-party self-insurance to cover medical expenses arising from automobile accidents when it amended the statutory scheme to allow an insured to elect smaller amounts of personal injury protection (PIP) under a standard policy. Each plaintiff in this appeal was injured in a car accident. Each was insured under a standard policy with insurance that provided for $15,000 in PIP coverage instead of the default amount of $250,000. Neither was able to sustain a claim for bodily injury (noneconomic loss) due to each policy’s limitation-on-lawsuit option. Each sued for outstanding medical bills in excess of their elected PIP coverage ($28,000 and $10,000, respectively). The trial courts ruled against plaintiffs in each matter and prohibited plaintiffs from admitting evidence of their medical expenses that exceeded their $15,000 PIP limits. The Appellate Division consolidated the cases on appeal, and, in a published opinion, reversed both trial court orders. After its review, the Supreme Court could not concluded there was evidence of a clear intention on the part of the Legislature to deviate from the carefully constructed no-fault first-party PIP system of regulated coverage of contained medical expenses and return to fault-based suits consisting solely of economic damages claims for medical expenses in excess of an elected lesser amount of available PIP coverage. "Unless the Legislature makes such an intent clearly known, the Court will not assume that such a change was intended by the Legislature through its amendments to the no-fault system in the Automobile Insurance Cost Reduction Act." View "Haines v. Taft" on Justia Law

In 2005, Evangelos Dimitrakopoulos retained the law firm of Borrus, Goldin, Foley, Vignuolo, Hyman and Stahl, P.C. ("Borrus firm"), for help with a business dispute with Steven Eleftheriou. Represented by the Borrus firm, Dimitrakopoulos and his wife filed a complaint against Eleftheriou and his wife. For undisclosed reasons, the Borrus firm filed a motion to withdraw as counsel shortly after it was retained. Days later, the Borrus firm filed a complaint against Dimitrakopoulos, alleging that its former client owed it $93,811.95 in fees for legal services and that payment had been demanded and not made. Dimitrakopoulos, acting pro se, filed an answer to the collection complaint but filed no counterclaim or third-party claim. In a proceeding before an arbitrator six months after the collection action was filed, the Dimitrakopouloses and the Eleftherious settled their dispute. In light of the settlement, the arbitrator did not issue an award. Months later, the court in the collection matter granted the Borrus firm’s unopposed motion for a final judgment by default in the amount of $121,947.99 for legal services, interest, attorneys’ fees, and court costs. Dimitrakopoulos did not appeal. A total of sixteen months elapsed between the filing of the Borrus firm’s collection action and the entry of the default judgment in that action. After the resolution of the business dispute between the Dimitrakopouloses and the Eleftherious, the collection action remained pending for an additional ten months. On September 10, 2015, approximately three years after the entry of judgment in the collection action, the Dimitrakopouloses sued the Borrus firm and the principal attorneys who worked on their matter for legal malpractice. Defendants moved to dismiss the complaint based on the "entire controversy" doctrine and the doctrine of waiver. The Dimitrakopouloses argued that the damages claimed in the malpractice action were known to them as of September 6, 2011, the day that they settled their dispute with the Eleftherious. The trial court concluded that the Dimitrakopouloses could have asserted their malpractice claim in the collection matter. An Appellate Division panel affirmed that judgment and stated that under Olds v. Donnelly, 150 N.J. 424 (1997), legal malpractice claims were exempt from the entire controversy doctrine to the extent that they need not be asserted in the underlying action. The New Jersey Supreme Court concluded the collection action at issue in this matter was not an “underlying action” as that term was used in Olds, and that the entire controversy doctrine could bar the claim. The record of this appeal, however, was inadequate for an application of the equitable rules that governed here. The Court therefore reversed the Appellate Division, and remanded the case for further proceedings. View "Dimitrakopoulos v. Borrus, Goldin, Foley, Vignuolo, Hyman and Stahl, P.C." on Justia Law

In this appeal, plaintiffs, an individual and his limited liability towing company, entered into a contract for the purchase of a customized medium-duty 4x4 truck with autoloader tow unit. Ultimately, the truck did not perform as expected and plaintiffs filed suit. The issue this case presented for the New Jersey Supreme Court's review centered on whether determine whether New Jersey’s Consumer Fraud Act (CFA or the Act) covered the transaction as a sale of “merchandise.” The New Jersey Supreme Court agreed with the Appellate Division that the trial court took too narrow an approach in assessing what constituted "merchandise" under the remedial CFA. The customized tow truck and rig fit within the CFA’s expansive definition of “merchandise” and, therefore, plaintiff’s CFA claim should not have foundered based on an application of that term. Furthermore, the Court agreed with the appellate panel’s remand to the trial court for a determination of whether defendants’ other bases for seeking summary judgment were meritorious. View "All The Way Towing, LLC v. Bucks County International, Inc." on Justia Law

This appeal stemmed from plaintiff Lucia Serico’s motion for attorney’s fees and other litigation expenses pursuant to Rule 4:58 after a jury trial on medical malpractice claims against Robert Rothberg, M.D. At issue was whether Serico could collect attorney’s fees from Rothberg despite entering into a “high-low agreement” that limited the amount she could recover at trial to $1,000,000. Based on the expressed intent of the parties and the context of the agreement, the New Jersey Supreme Court found the agreement set $1,000,000 as the maximum recovery. Therefore, Serico could not seek additional litigation expenses allowed by Rule 4:58. View "Serico v. Rothberg" on Justia Law