Justia New Jersey Supreme Court Opinion Summaries
Articles Posted in Non-Profit Corporations
E.T. v. The Boys and Girls Club of Hudson County
Between 1976 and 1984, nine plaintiffs allege they were sexually abused by a part-time counselor at the Boys and Girls Club of Hudson County (BGCHC), a New Jersey nonprofit. Following a 2019 amendment to the New Jersey Child Sexual Abuse Act extending the statute of limitations, these plaintiffs brought suit against BGCHC, Boys and Girls Clubs of America (BGCA), and others, claiming damages from the alleged abuse. BGCA, federally chartered in the District of Columbia and headquartered in Georgia, was not directly involved in the alleged abuse but maintained an affiliation with BGCHC through membership requirements, support, professional development opportunities, and brand usage.In the Superior Court of New Jersey, Law Division, BGCA moved to dismiss for lack of personal jurisdiction. The court found no general jurisdiction over BGCA but allowed for jurisdictional discovery on specific personal jurisdiction. After discovery, a motion judge held that BGCA was subject to specific personal jurisdiction in New Jersey based on its relationship and activities with BGCHC. BGCA appealed, and the Superior Court of New Jersey, Appellate Division, reversed, finding the evidence insufficient to establish that BGCA’s conduct related to the plaintiffs' claims of abuse. The plaintiffs then sought further review.The Supreme Court of New Jersey reviewed the case and affirmed the Appellate Division’s ruling. The Court held that New Jersey courts cannot exercise specific personal jurisdiction over BGCA because the plaintiffs’ claims do not arise out of or relate to any affirmative act by BGCA directed toward New Jersey. The Court clarified that BGCA’s provision of resources, branding, and support to BGCHC did not constitute purposeful availment for the purposes of specific jurisdiction in this context. As a result, the claims against BGCA were dismissed, though proceedings against BGCHC in New Jersey continue. View "E.T. v. The Boys and Girls Club of Hudson County" on Justia Law
Smith v. Newark Community Health Centers, Inc.
A woman visited a federally qualified health center in East Orange, New Jersey, for medical treatment in 2019. After her appointment, she slipped on water as she was leaving the examination room and suffered serious injuries. She was insured by Medicare at the time. The health center, Newark Community Health Centers, Inc. (NCHC), is a nonprofit entity with a mission to provide affordable, quality healthcare to underserved populations. Its organizational documents reference charitable, educational, and healthcare purposes, and its revenue is derived mostly from government grants and service fees, with only a very small portion from charitable contributions.The plaintiff sued NCHC for negligence. The Superior Court of New Jersey, Law Division, granted summary judgment to NCHC, finding it immune from liability under the New Jersey Charitable Immunity Act (CIA) as an entity organized exclusively for religious, charitable, or educational purposes. The Appellate Division affirmed, emphasizing the educational aspects of NCHC’s mission and activities, and did not conduct a detailed funding source analysis.The Supreme Court of New Jersey reviewed the case to determine whether NCHC qualified for complete charitable immunity or was instead subject to the statutory cap on damages applicable to organizations organized exclusively for hospital purposes. The Supreme Court held that NCHC is organized exclusively for hospital purposes under the CIA, given its dominant motive and primary activity of providing healthcare services, not education or charity. Because almost none of NCHC’s revenue comes from charitable donations, it does not qualify as exclusively charitable. As a result, NCHC is not fully immune from liability, but its liability for damages is capped at $250,000 as provided by the statute. The Court reversed the Appellate Division’s judgment and remanded the case for further proceedings. View "Smith v. Newark Community Health Centers, Inc." on Justia Law
Posted in:
Business Law, Non-Profit Corporations
American Civil Liberties Union of New Jersey v. County Prosecutors Association of New Jersey
The American Civil Liberties Union of New Jersey (ACLU) sought to obtain records from the County Prosecutors Association of New Jersey (CPANJ), a nonprofit association whose members are the twenty-one county prosecutors. The ACLU claimed that CPANJ is a public agency required to disclose records under the Open Public Records Act (OPRA) and a public entity subject to the common law right of access. CPANJ denied the request, asserting that it is not a public agency for purposes of OPRA and is not a public entity subject to the common law right of access. The ACLU filed a lawsuit, but the trial court dismissed the complaint, holding that CPANJ is not a public agency within the meaning of OPRA and that CPANJ’s records do not constitute public records for purposes of the common law right of access. The Appellate Division affirmed the trial court's decision.The Supreme Court of New Jersey agreed with the lower courts, holding that CPANJ is neither a public agency under OPRA nor a public entity subject to the common law right of access. The court found that the ACLU’s factual allegations did not support a claim against CPANJ under OPRA or the common law. The court concluded that a county prosecutor, who is a constitutional officer, is not the alter ego of the county itself, and does not constitute a “political subdivision” as that term is used in OPRA. Therefore, CPANJ, an organization in which the county prosecutors are members, is not a public agency for purposes of OPRA. The court also found that the ACLU did not allege facts suggesting that CPANJ is an entity upon which a common law right of access request for documents may properly be served. The judgment of the Appellate Division was affirmed. View "American Civil Liberties Union of New Jersey v. County Prosecutors Association of New Jersey" on Justia Law
Kuchera v. Jersey Shore Family Health
In 2009, plaintiff attended a free eye screening conducted by the New Jersey Commission for the Blind and Visually Impaired at the Jersey Shore Family Health Center. Plaintiff slipped and fell on the tile floor. As a result, plaintiff allegedly sustained injuries, including a torn ligament in her ankle, and herniated and bulging discs in her back. The Family Health Center was a nonprofit charitable clinic in the Meridian Health hospitals system. It was located in a separate building next to the Jersey Shore University Medical Center. The issue this case presented on appeal to the Supreme Court was whether the Family Health Center was entitled to charitable immunity pursuant to N.J.S.A.2A:53A-7, or the limited liability afforded to nonprofit entities organized exclusively for hospital purposes pursuant to N.J.S.A.2A:53A-8. After review, the Court concluded that site of plaintiff's fall was part of a nonprofit health care corporation organized exclusively for hospital purposes. Defendants, therefore, were not entitled to absolute immunity, but rather are entitled to the limitation of damages afforded to nonprofit institutions organized exclusively for hospital purposes. View "Kuchera v. Jersey Shore Family Health" on Justia Law
Posted in:
Injury Law, Non-Profit Corporations
Davis v. Devereux Foundation
Plaintiff Roland Davis had been a resident of the Devereux New Jersey Center (operated by Defendant Devereux Foundation) since shortly before his twelfth birthday. Plaintiff was diagnosed with autism, mental retardation, pervasive developmental disorder and attention deficit hyperactivity disorder, and had a history of combative and aggressive behavior. Plaintiff's mother (as his guardian) filed a complaint alleging breach of a "non-delegable duty" to protect Plaintiff from harm, negligent care and supervision, and vicarious liability after a counselor assaulted Plaintiff. The trial court granted Devereux's motion for summary judgment, finding that to the extent claims were for negligence, they were barred by the Charitable Immunity Act (CIA). The court further concluded that New Jersey law does not compel imposing a "non-delegable duty" upon Devereux. The Appellate Division affirmed in part, also finding no "non-delegable duty," and reversed in part, holding that a reasonable jury could find that the counselor acted in part within the scope of her employment. The issues on appeal to the Supreme Court were: (1) whether to impose upon an institution that cares for developmentally disabled residents a "non-delegable duty" to protect them from harm caused by employees' intentional acts; and (2) whether the employee in this case could be found to have acted within the scope of her employment when she criminally assaulted the resident, thereby subjecting the non-profit facility to liability pursuant to "respondeat superior." The Court reaffirmed the duty of due care imposed upon caregivers with in loco parentis responsibilities to persons with developmental disabilities. However, applying the analysis set forth and developed by prior opinions, the parties' relationship, the nature of the risk, the opportunity and ability to exercise care, and public policy, the Court concluded the circumstances of this case did not justify imposing on caregivers a "non-delegable duty" to protect residents from harm caused by employees' intentional acts. Furthermore, the Court held that no rational factfinder could find that the Devereux counselor's criminal assault on Plaintiff was conducted within the scope of her employment.
View "Davis v. Devereux Foundation" on Justia Law