Justia New Jersey Supreme Court Opinion Summaries

Plaintiff Augustine Badiali was injured when his motor vehicle was rear-ended by an uninsured motorist. Plaintiff filed a UM claim, which proceeded to arbitration and resulted in an award in plaintiff s favor. Plaintiff filed suit against his insurer, defendant New Jersey Manufacturers Insurance Group ( NJM ), after NJM rejected the arbitration award and refused to pay its share. The trial court confirmed the arbitration award in a summary action and found NJM liable for its share of the award. In a subsequent action, plaintiff asserted that NJM litigated in bad faith by advocating that its policy language allowed for a rejection of the arbitration award at issue. The trial court granted summary judgment in favor of NJM. The court agreed that the case was ripe for summary judgment although discovery had not been completed. The court was further persuaded that NJM s position was fairly debatable based on its policy language and on the existence of an unpublished Appellate Division decision involving nearly identical facts, in which NJM was also a party. The Appellate Division affirmed, holding that NJM s position was fairly debatable because it was supported by a prior, unpublished opinion of the court. Plaintiff was thereby barred from recovering counsel fees or any other consequential damages. Finding no reversible error in the appellate court's judgment, the Supreme Court affirmed. View "Badiali v. N.J. Mfg. Ins. Grp." on Justia Law

Plaintiff Kwabena Wadeer suffered injuries in a motor vehicle accident that occurred while he was attempting to avoid an unidentified vehicle. Plaintiff filed a UM claim against New Jersey Manufacturers Insurance Company (NJM), his insurer. The insurance policy provided $100,000 in UM and UIM coverage. NJM made no offers to attempt to settle plaintiff's UM claim and the parties proceeded to private arbitration pursuant to the terms of the policy. The panel determined that plaintiff was 30% liable for the accident, the phantom vehicle was 70% liable, and plaintiff was entitled to a net award of $87,500. NJM rejected the $87,500 arbitration award and demanded a trial. By letter, plaintiff's attorney acknowledged NJM s rejection of the arbitration award and notified NJM that he believed it was acting in bad faith by rejecting that award. Plaintiff submitted an Offer of Judgment to NJM in the amount of $95,000 and reiterated his belief that defendant's conduct was in bad faith. NJM rejected the offer and the case proceeded to trial. The jury determined that the phantom vehicle was 100% liable for the underlying accident and awarded plaintiff $210,000 for pain and suffering and $12,175 in lost wages. Plaintiff thereafter moved to enter judgment for the full amount of the verdict, notwithstanding the $100,000 policy limit, as well as for prejudgment interest on the verdict and attorneys fees. During argument on the motion, plaintiff's counsel raised the issue of bad faith, contending that defendant was on notice of the claim. In response, NJM argued that plaintiff failed to plead bad faith in his complaint. The trial judge entered an order reducing and molding the jury verdict to conform to the insurance policy limit of $100,000 and awarding plaintiff attorneys fees and prejudgment interest. In his accompanying statement of reasons, the trial judge found that NJM s actions did not constitute bad faith because NJM had fairly debatable reasons for denying the benefits of the policy. Plaintiff and NJM filed cross-appeals. Plaintiff contended the trial court should not have molded the verdict to the policy limits because NJM acted in bad faith. The Appellate Division affirmed the trial judge's modified jury verdict, but reversed the award of attorneys fees and expenses. Plaintiff then filed a separate complaint alleging that NJM breached its duty of good faith and fair dealing by failing to make a settlement offer to plaintiff and by failing to settle the claim in a timely manner. NJM moved for summary judgment, arguing that plaintiff's complaint was barred by the entire controversy doctrine, res judicata, and/or collateral estoppel. After review, the Supreme Court agreed that plaintiff's bad faith claim was barred in this action under the principle of res judicata because it was raised, fairly litigated, and determined by the trial court in the first litigation. View "Wadeer v. N.J. Mfrs. Ins. Co." on Justia Law

Harold Stewart, a sergeant in Camden County's Fire Police Department, while operating a Camden County vehicle, was involved in a motor vehicle accident with plaintiff Joseph Vanderslice. Plaintiff filed a complaint against defendants Camden County, the Camden County Fire Police Department, and Stewart, alleging personal injuries sustained as a result of the accident. The case was referred to mandatory, non-binding arbitration, as required by our court rules. An arbitration panel determined that defendants were 100% liable for plaintiff s injuries, and awarded $145,970 for noneconomic damages and lost wages. The next day, defendants submitted the required demand forms to the Camden County Arbitration Administrator. Attached to defendants demand was a payment voucher that gave the recipient the right to draw upon Camden County s account with the State Treasury. The Arbitration Administrator signed the voucher and sent it to the State Treasurer for payment. The Treasurer issued a check thirty days after the arbitration award was filed. Thirty-two days after the award, the Arbitration Administrator received the check. However, because the Arbitration Administrator concluded that the check was not received within thirty days of the arbitration award as required by Rule4:21A-6(b)(1), the clerk did not file the demand or deposit the check. Although Rule1:5-6(c)(1)(A) required the clerk to notify defendants of their error, neither the clerk nor the Arbitration Administrator informed defendants of their nonconforming payment. Rather, defendants were alerted that the demand had not been filed when plaintiff moved to confirm the arbitration award and enter judgment. Defendants opposed the motion and asked the trial court to permit a late filing. Concluding that defendants had substantially complied with the court rules, the court permitted the late filing and rejected plaintiff s motion to confirm the award and enter judgment. The case proceeded to trial and the jury returned a verdict of no cause of action in favor of defendants. Plaintiff appealed, arguing that the trial court should not have permitted defendants late filing, and that the arbitration award should have been confirmed and judgment entered for plaintiff. In an unpublished decision, the Appellate Division determined that defendants demand was filed too late, reversed the trial court, and remanded the matter for entry of an order confirming the arbitration award and entering judgment in plaintiff's favor. Upon review, the Supreme Court concluded defendants demand was not filed out of time. The Appellate Division's judgment was reversed and the jury's verdict was reinstated. Because the Court found that defendants notice was timely, it did not reach the issue of the standard for expanding the thirty-day time limit under Rule4:21A-6(b)(1). View "Vanderslice v. Stewart" on Justia Law

In this case, a jury determined that two New Jersey public entities, South Jersey Transportation Authority and the New Jersey State Police, were liable for injuries sustained by plaintiff as a result of a multi-vehicle pile-up on the Atlantic City Expressway during a 2005 heavy snowstorm. Plaintiff alleged that the public entities were negligent in failing to adhere to standard operating procedures with respect to competing 9-1-1 calls for motorist assistance. The jury found no negligence on the part of plaintiff or the owners or drivers of the other vehicles involved in the several collisions. On appeal, the Appellate Division reversed the liability verdict against the public-entity defendants based on errors in the jury instructions with respect to the liability of the public entities for discretionary versus ministerial acts. The Appellate Division determined the trial court erred in failing to allow the jury to determine predicate facts that resolved whether ministerial or discretionary acts were involved. The Appellate Division remanded the matter for retrial only with respect to the liability of the public-entity defendants. The public-entity defendants argued on appeal to the Supreme Court that, at the retrial, the second jury should decide anew the liability of all parties. The Supreme Court disagreed and affirmed the Appellate Division's decision. View "Henebema v. South Jersey Transportation Authority" on Justia Law

The defendants in this case were private fire sprinkler inspection companies that were hired to assess the operating condition of a hotel's sprinkler system. Following a fatal fire at the hotel, the parents of the victims, individually and on behalf of the estates of the decedents, alleged that defendants had negligently failed to inform the hotel owner about a flaw in the design of the hotel’s sprinkler system. The trial court granted defendants' motions for summary judgment, finding that defendants' inspectors had possessed no duty to report any sprinkler system design flaws to the hotel owner because applicable State regulations did not necessitate any such reporting. The Appellate Division reversed, agreeing with plaintiffs' contention that defendants' compliance with regulatory requirements was not dispositive of the issue of negligence. The appellate panel explained that defendants owed plaintiffs a duty of reasonable care and that a jury should decide whether defendants had been obliged to exceed the dictates of the regulations in their exercise of reasonable care. After considering the complex nature of the Uniform Fire Code and other factors relevant to sprinkler inspections, the New Jersey Supreme Court concluded that a jury should not be allowed to speculate as to the proper standard of care in this case. Instead, the Court held that plaintiffs were required to establish the applicable standard of care through expert testimony. Although plaintiffs presented an expert during pretrial proceedings, the standard of care he set forth represented only his personal view and was not founded upon any objective support. As a result of plaintiffs' failure to support their asserted standard of care with admissible expert testimony, they were unable to establish the required elements of their negligence cause of action. View "Davis v. Brickman Landscaping, Ltd." on Justia Law

Plaintiff Lorraine Gormley was an attorney employed by the Department of the Public Advocate, Division of Mental Health Advocacy, providing legal representation to clients involuntarily committed in state psychiatric facilities, including Ancora Psychiatric Hospital. Each ward at Ancora contained a day room in which up to forty patients could congregate. Visiting attorneys and psychiatrists also were required to use the day rooms for professional interviews. Although frequent violence occurred in the day rooms, no security guards or cameras were posted there. While at Ancora, Gormley met for the first time with her client B.R., a 21-year-old woman committed sixteen days earlier for a “psychotic disorder” that induced hallucinations. At the start of the interview in the hospital’s crowded and chaotic day room, B.R. violently attacked Gormley in the presence of hospital staff. Gormley filed a civil action against Ancora’s CEO, LaTanya Wood-El, and other government officials, in their individual capacities, under both the Federal Civil Rights Act and the New Jersey Civil Rights Act, alleging that her constitutional right to be free from state-created danger was violated. On defendants’ motions for summary judgment, the trial court concluded that Gormley had presented sufficient evidence to proceed on the civil-rights claims under the state-created-danger doctrine. The court deferred deciding whether she was entitled to injunctive relief. The issue before the Supreme Court in this case was whether injuries Gomley suffered resulted from a state-created danger that violated her substantive-due-process rights under the Fourteenth Amendment of the United States Constitution and whether defendants were entitled to qualified immunity. Under the facts of this case, the Supreme Court concluded that the lawyer had a substantive-due-process right to be free from state-created dangers. Because that right was clearly established at the time the lawyer was attacked, the state official defendants were not entitled to qualified immunity. View "Gormley v. Wood-El" on Justia Law

A family-care physician prescribed a powerful medication to treat a patient who suffered from chronic back pain. The patient was known to abuse alcohol and drugs. The complaint alleged that the physician breached the governing duty of care by failing to protect the patient from self-injury. The issue this appeal presented to the Supreme Court centered on the jury’s no-cause verdict and various portions of the trial court's charge on causation. The trial court charged the jury on "preexisting disease or condition" (a "Scafidi" charge). The trial court, however, never identified in its jury charge the preexisting condition or related the facts to the law as required by the Model Jury Charge. Furthermore, this case did not involve the ineluctable progression of a disease on its own. "The ultimate harm caused to the patient was from her own conduct - whether volitional or not - after the physician prescribed the [patch]." For that reason, the court also charged the jury on superseding/intervening causation and avoidable consequences. In a split decision, the Appellate Division overturned the verdict and remanded for a new trial, finding that the trial court erred in giving the Scafidi charge and failed to articulate for the jury the nature of the preexisting condition or explain the proofs and parties' arguments in relation to the law. The panel majority also determined that the court should not have given a superseding/intervening cause charge because the general charge on foreseeability was sufficient. Additionally, it pointed out that the court had mistakenly included the concept of "but for" causation in a case involving concurrent causes. The Supreme Court agreed with the panel majority that the trial court misapplied the Scafidi charge and that the trial court failed to explain the complex concepts of causation in relation to the proofs and legal theories advanced by the parties. The Court disagreed with the panel majority that the charge on superseding/intervening causation was unnecessary in light of the general charge on foreseeability, and concluded the "but for" causation reference apparently was mistake to which no objection was made by either party. The Court therefore affirmed and modified the Appellate Division's and remanded the case for a new trial. View "Komlodi v. Picciano" on Justia Law

Plaintiffs Jamie and Rebecca Gannon, maintained that plaintiff Jamie Gannon developed a form of brain cancer because of a series of polio vaccines he was given as a child. Plaintiffs pursued various forms of relief in both federal and state courts. In the federal court action, they sought relief from the United States pursuant to the Federal Tort Claims Act, contending that the federal government was negligent in permitting the polio vaccine to be sold to the public. Plaintiffs' federal action was dismissed following a partial bench trial, based on the government's motion for judgment on partial findings, and that judgment was affirmed by the United States Court of Appeals for the Third Circuit. Proceeding on a parallel track, plaintiffs sought relief in New Jersey state courts. In the state court action, they raised product liability claims against defendants American Home Products, Inc., American Cyanamid Company, Lederle Laboratories, and Wyeth-Lederle Vaccines, which they asserted were the entities that had manufactured or distributed the polio vaccine given to plaintiff Jamie Gannon. In the state court litigation, the trial court granted summary judgment in favor of defendants based on two grounds: (1) the trial court concluded that plaintiffs lacked sufficient evidence to prove the identity of the manufacturer of the polio vaccine that plaintiff Jamie Gannon was given; (2) the trial court concluded that plaintiffs were collaterally estopped from bringing the cause of action based on the prior judgment entered in federal court. The Appellate Division reversed both aspects of the trial court's judgment and remanded the matter for further discovery and for trial. The panel first concluded that the trial court had utilized an incorrect standard in evaluating the sufficiency of the product identification evidence because it failed to afford plaintiffs the benefit of the inferences to which they were entitled as the non-moving parties in the context of a summary judgment motion. The panel then concluded that there were equitable considerations that militated against granting collateral estoppel effect to the judgment of the federal court, including the status of discovery in the state court matter and the pendency of similar state court litigation involving other plaintiffs. Because the Supreme Court concluded that the Appellate Division’s collateral estoppel analysis was in error, the Court reversed. View "Gannon v. American Products, Inc." on Justia Law

In this appeal the issue before the Supreme Court was whether a pet owner should be permitted to recover for emotional distress caused by observing the traumatic death of her pet. Upon review, the Court concluded was no basis in law or public policy to expand the traditionally and intentionally narrow grounds established in "Portee v. Jaffee," (84 N.J. 88 (1980)), which permits compensation for the traumatic loss of carefully defined classes of individuals, to include emotional distress claims arising from observing a pet's death. "Although humans may share an emotional and enduring bond with pets, permitting that bond to support a recovery for emotional distress would require the Court to vastly expand the classes of human relationships that would qualify for Portee damages or to elevate relationships with animals above those shared with other human beings." View "McDougall v. Lamm" on Justia Law

Plaintiff Wade Stancil was injured in 1995 while employed by Orient Originals. He received workers' compensation benefits from his employer's compensation carrier, defendant ACE USA (ACE). In 2006, following a trial, the court of compensation determined that Stancil was totally disabled. In 2007, Stancil filed a motion in the compensation court seeking an order compelling ACE to pay outstanding medical bills. During a hearing on the motion, the compensation judge commented that ACE had a history of failing to make payments when ordered to do so. The compensation judge granted Stancil's motion, warned ACE against any further violation of the order to pay, and awarded Stancil counsel fees. The parties returned to the compensation court for a further proceeding relating to the disputed bills. After finding that the bills identified in the earlier order remained unpaid and that ACE's failure to make payment was a willful and intentional violation of the order, the court issued another order compelling ACE to make immediate payment and again awarding counsel fees. In 2008, Stancil underwent additional surgery and psychiatric treatment. Stancil's physician attributed the need for additional treatment to an earlier treatment delay caused by the carrier's delay in paying medical providers. N.J.S.A. 34:15-1 to -142 (the Act), is the exclusive remedy for the claims pled in the complaint and therefore no damages could be awarded. The trial court granted ACE's motion effectively denying payments for Stancil's 2008 treatment. The Appellate Division affirmed. The issue on appeal to the Supreme Court was whether the employee could sue the carrier for pain and suffering caused by the carrier's delay in paying for medical treatment, prescriptions, and other services. Upon review, the Court concluded that an injured employee does not have a common law right of action against a workers' compensation carrier for pain and suffering caused by the carrier's delay because: (1) the workers' compensation system was designed to provide injured workers with a remedy outside of the ordinary tort or contract remedies cognizable in the Superior Court; (2) in amending the Workers' Compensation Act in 2008, the Legislature rejected a provision that would have given the compensation courts broader permission to authorize a resort to the Superior Court and adopted a remedy that permits compensation courts to act through a contempt power; and (3) allowing a direct common-law cause of action against a carrier would undermine the workers' compensation system by substituting a cause of action that would become the preferred manner of securing relief. View "Stancil v. ACE USA" on Justia Law