ART RESOURCES, LLC VS. HARTZ CARPET II LIMITED PARTNERSHIP (L-5766-13 AND L-5349-13, HUDSON COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedApril 27, 2020
DocketA-1115-18T2
StatusUnpublished

This text of ART RESOURCES, LLC VS. HARTZ CARPET II LIMITED PARTNERSHIP (L-5766-13 AND L-5349-13, HUDSON COUNTY AND STATEWIDE) (ART RESOURCES, LLC VS. HARTZ CARPET II LIMITED PARTNERSHIP (L-5766-13 AND L-5349-13, HUDSON COUNTY AND STATEWIDE)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ART RESOURCES, LLC VS. HARTZ CARPET II LIMITED PARTNERSHIP (L-5766-13 AND L-5349-13, HUDSON COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-1115-18T2

ART RESOURCES, LLC,

Plaintiff-Appellant,

v.

HARTZ CARPET II LIMITED PARTNERSHIP,

Defendant-Respondent. _____________________________

HARTZ MOUNTAIN ASSOCIATES,

Plaintiff-Respondent,

Defendant-Appellant. _____________________________

Submitted January 27, 2020 – Decided April 27, 2020

Before Judges Rothstadt, Moynihan and Mitterhoff. On appeal from the Superior Court of New Jersey, Law Division, Hudson County, Docket Nos. L-5766-13 and L-5349-13.

Faegre Drinker Biddle & Reath LLP, attorneys for appellant (Walter J. Fleischer, on the briefs).

Horowitz Rubino & Patton, attorneys for respondents (Joseph Martin Aronds, of counsel and on the brief).

PER CURIAM

In these consolidated commercial tenancy matters, the tenant Art

Resources, LLC (Art Resources) appeals from the Law Division's September 25,

2018 amended final judgment that was entered after the trial judge conducted a

remand hearing in accordance with our earlier unpublished opinion in this

matter. See Art Res., LLC v. Hartz Carpet II Ltd. P'ship, No. A-0402-16 (App.

Div. June 4, 2018) (slip op. at 3-6). We reversed and remanded the trial judge's

original determinations about Art Resources' and its landlord Hartz Carpet II

Limited Partnership's and Hartz Mountain Associates' (collectively, Hartz)

claims relating to the issues of forcible entry and detainer, trespass, and the

reasonable rental value of the space Art Resources occupied after Hartz

unjustifiably locked it out of the leased premises.

On remand, the judge again found for Hartz on Art Resources' forcible

entry and detainer and trespass claims, concluding that Art Resources failed to

A-1115-18T2 2 present sufficient evidence to allow the judge to find that Hartz was liable under

either cause of action. The judge also increased Hartz's damages on its unpaid

rent claim. For the reasons that follow, we affirm the amended judgment

denying Art Resources relief on its forcible entry and detainer and trespa ss

claims, but we reverse the judge's award to Hartz on its unpaid rent claim,

thereby reinstating the amount set forth in the original judgment.

We discern the following facts from the record. Art Resources, a

wholesaler of high-end imported rugs, leased space in Hartz's building at 100

Park Plaza Drive in Secaucus. The lease began on September 1, 2007 and was

extended through August 31, 2013.

During 2011, Hartz notified its tenants that it intended to repurpose the

building at 100 Park Plaza Drive, so the tenants would eventually need to

relocate. Beginning in 2013, Art Resources began considering various locations

but was unable to find a suitable space. On July 24, 2013, Hartz sent Art

Resources a notice to quit and demand for possession, thereby terminating the

parties' lease as of August 31, 2013.

On August 14, 2013, Hartz sent a letter to its tenants, reminding them that

access to 100 Park Plaza Drive would be unavailable after August 31. Hartz

offered any tenants who had not yet made plans for relocation to use space in its

A-1115-18T2 3 building at 50 Enterprise Avenue. Hartz agreed to provide the space rent-free

through the end of September 2013 for any tenant who agreed to sign a short-

term lease and provide their own security.

On August 22, 2013, Art Resources informed Hartz that it might not be

able to move out on time. Hartz again offered to provide space at 50 Enterprise

Avenue. Art Resources agreed to see the space, while indicating that, according

to the parties' lease, it was entitled to remain at 100 Park Plaza Drive as a

holdover tenant if it paid twice the fixed rent. Realizing that the space at 50

Enterprise Avenue was no longer available, Hartz offered space at 40 Enterprise

Avenue. Art Resources ultimately determined that 40 Enterprise Avenue was

unsuitable for security reasons.

On August 31, 2013, Hartz locked Art Resources out of 100 Park Plaza

Drive by changing the locks and padlocking the construction fence outside of

the building. When Art Resources employees arrived at the building on the

morning of September 3, 2013, a Hartz employee denied them access. The

following day, Art Resources sent Hartz a check for $9386.66, the amount owed

for September 2013 as a holdover tenant. Hartz rejected payment and returned

the check. On September 6, 2013, Hartz notified Art Resources that it had

moved the tenant's inventory and other property to 40 Enterprise Avenue.

A-1115-18T2 4 Art Resources filed a complaint and order to show cause with temporary

restraints, seeking to restore its access to and possession of the space at 100 Park

Plaza Drive. The parties appeared in the Chancery Division on September 9,

2013. Finding that Hartz failed to notify Art Resources that it would remove

the tenant's property, the judge ordered Hartz to "maintain the status quo" and

"restore [Art Resources] to whatever they had prior to [Hartz's] removal of the

premises" until Art Resources had the opportunity to be heard by the judge.

The next day, a Secaucus building inspector deemed the building at 100

Park Plaza Drive unsafe and issued Hartz a notice of unsafe structure, so Hartz

requested a stay of the September 9 order. Although displeased with Hartz,

viewing the inspection as "a run-around," the judge issued an order, on

September 16, 2013, staying his September 9 order "on the condition that Hartz

immediately provide appropriate and comparable premises to [Art Resources] at

which [Art Resources] can operate its business without interruption." Art

Resources moved into 40 Enterprise Avenue that same day and remained there

until November 1, 2013.

On September 18, 2013, Art Resources filed an amended complaint in the

Chancery Division, alleging breach of contract; illegal lockout; forcible entry

and detainer; distraint of personal property; conversion; trespass; violation of

A-1115-18T2 5 the Abandoned Tenant Property Act, N.J.S.A. 2A:18-72 to -84; breach of the

duty of good faith and fair dealing; and violation of the New Jersey Consumer

Fraud Act (CFA), N.J.S.A. 56:8-1 to -20.

On September 27, 2013, Hartz sent Art Resources a notice to quit and

demand for possession of 40 Enterprise Avenue, requiring Art Resources to

vacate by October 31, 2013. Hartz also sought rent and utility payments of

$11,500 for the month of October. On November 15, 2013, Hartz filed a

complaint in the Law Division against Art Resources for the October unpaid rent

and utilities.

During December 2013, Art Resources' action was transferred to the Law

Division, the September 9 order to show cause with temporary restraints was

dismissed, and several counts of Art Resources' amended complaint were

dismissed, leaving the counts for breach of contract, breach of the duty of good

faith and fair dealing, forcible entry and detainer, trespass, and violation of the

CFA.

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ART RESOURCES, LLC VS. HARTZ CARPET II LIMITED PARTNERSHIP (L-5766-13 AND L-5349-13, HUDSON COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/art-resources-llc-vs-hartz-carpet-ii-limited-partnership-l-5766-13-and-njsuperctappdiv-2020.