Atfh Real Prop. v. Winberry Rlty.

10 A.3d 889, 417 N.J. Super. 518
CourtNew Jersey Superior Court Appellate Division
DecidedNovember 30, 2010
DocketA-1189-09T1
StatusPublished
Cited by12 cases

This text of 10 A.3d 889 (Atfh Real Prop. v. Winberry Rlty.) 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
Atfh Real Prop. v. Winberry Rlty., 10 A.3d 889, 417 N.J. Super. 518 (N.J. Ct. App. 2010).

Opinion

10 A.3d 889 (2010)
417 N.J. Super. 518

ATFH REAL PROPERTY, LLC, Plaintiff-Respondent,
v.
WINBERRY REALTY PARTNERSHIP, Defendant-Appellant, and
Kearny Federal Savings Bank and the State of New Jersey, Defendants.

No. A-1189-09T1.

Superior Court of New Jersey, Appellate Division.

Submitted October 27, 2010.
Decided November 30, 2010.

*890 Ferro and Ferro, attorneys for appellant (Nancy C. Ferro, Ridgewood, on the brief).

Robert A. DelVecchio, LLC, attorneys for respondent (Susan B. Fagan-Limpert, Lincoln Park, of counsel and on the brief).

Before Judges FISHER, SAPP-PETERSON and SIMONELLI.

The opinion of the court was delivered by

FISHER, J.A.D.

Defendant Winberry Realty Partnership (WRP), a partnership consisting of four siblings, appeals a series of orders entered in this foreclosure action. WRP's appeal chiefly focuses on the order of July 9, 2009, which favorably vacated the judgment of foreclosure but on the conditions, which WRP finds objectionable, that WRP pay plaintiff's attorneys fees and hold plaintiff harmless for potential claims resulting from the actions taken by plaintiff in reliance on the vacated judgment. We find no abuse of discretion in the equitable remedy crafted by the chancery judge and affirm.

I

Plaintiff ATFH Real Property, LLC filed a complaint alleging it purchased a tax sale certificate issued on property owned by WRP in Rutherford. The complaint *891 demanded that the court fix the amount due on the certificate, foreclose WRP and all other persons claiming a right to redeem, and vest in plaintiff an indefeasible fee simple in the property.

Plaintiff attempted personal service of the summons and complaint on WRP at its registered business address in Clifton— the home of John Winberry, one of WRP's partners—but an individual inside refused to open the door. Plaintiff thereafter mailed the summons and complaint to the same address by regular and certified mail. The certified mail was refused; the regular mail was not returned to plaintiff.

Winberry, who is not an attorney, filed an answer to the complaint on behalf of WRP.[1] Consequently, the Office of Foreclosure[2] forwarded the matter to the trial court as a contested matter. When WRP failed to attend both the original and rescheduled case management conferences, the judge handling the matter at the time struck the pro se answer by order entered on August 6, 2007.

A few weeks later, Winberry filed a pro se motion for relief from the August 6, 2007 order. Winberry appeared late on the return date and claimed he was unprepared and too ill to proceed. The judge rescheduled the motion.

At the rescheduled hearing, Winberry informed the judge he was unprepared to proceed because he had misplaced his file. The judge was prepared to adjourn the matter for a few hours; Winberry requested more time. Because the judge was unavailable the following week, he refused that request. However, the judge also sua sponte questioned the propriety of Winberry's representation of WRP in light of Rule 1:21-1(c).[3] Without drawing any conclusions, the judge asked plaintiff's counsel—because plaintiff was, in the judge's words, "purportedly being prejudiced"— whether it was her desire to consent to an adjournment "for in excess of a week and try to compel Mr. Winberry to get counsel, or did you wish to do this today without counsel?" Plaintiff's counsel stated her preference to proceed because that was her third appearance in the matter. Plaintiff's counsel noted, however, that she did not wish to cut off "anyone's rights to argue substantively" even though, in her view, the answer asserted no meritorious defense.

In deciding to hear the motion, the judge appeared to accept as legitimate what he referred to as Winberry's "sundry excuses" for failing to previously appear. He also preliminarily observed that the pro se answer contained no valid defense and the argument regarding the sufficiency of service of process was "likely without merit" because WRP "clearly had notice" and any likelihood of prevailing on such a defense was "negligible." With these and other comments, the judge advised he would hear argument in the afternoon. *892 Winberry, however, did not return to the court room due to a panic attack. The hearing was rescheduled.

Winberry later requested an adjournment of the new date because of illness, but the judge only continued the matter until later in the afternoon. Winberry arrived at the court house but due to another alleged panic attack was transported by ambulance to the hospital. The judge rendered an oral decision on the papers, finding it no longer equitable, fair, or appropriate to make plaintiff's counsel wait any longer for a decision.

In his opinion, the judge correctly found that the complaint alleged all those elements necessary for foreclosure. In considering WRP's contentions regarding service, the judge recognized the obvious fact that WRP had actual notice of the suit. The judge also concluded that plaintiff had attempted service by both certified and regular mail after unsuccessful efforts at effecting personal service. Although the attempt to serve by certified mail was not fulfilled because that mailing went unclaimed, the judge correctly recognized that WRP had not asserted the regular mailing "had not been received, other than the generic assertion that there had been no receipt of the summons and complaint." In addition, the judge rejected WRP's other pleaded defense, concluding that the alleged lack of an accounting from plaintiff as to the amount due did not render this a contested action. As a result, the judge found the answer did not contest plaintiff's right to foreclosure, and he returned the matter to the Office of Foreclosure by order entered on October 31, 2007.

After the matter was returned to the Office of Foreclosure, an order setting the amount, time, and place for redemption was entered on May 5, 2008. The property was not redeemed by the deadline.

Winberry again moved on WRP's behalf for relief. The judge denied that motion on July 21, 2008. Final judgment barring redemption was entered three days later.

On February 2, 2009, a law firm appearing on behalf of WRP moved to vacate final judgment.[4] In ruling on this motion, Judge Ellen L. Koblitz, who had not previously handled the case, granted relief from the final judgment conditioned upon WRP's payment of out-of-pocket expenses relating to the property, WRP's payment of plaintiff's reasonable attorneys fees and costs, and WRP's indemnification of plaintiff. On July 9, 2009, an order was entered memorializing the judge's ruling.

WRP thereafter unsuccessfully moved for reconsideration or clarification, and WRP appealed, arguing:

I. THE COURT BELOW ERRED IN IMPOSING CONDITIONS FOR REDEMPTION OF THE PROPERTY RETROACTIVELY [IN THE JULY 9, 2009 ORDER].
II. THE TRIAL COURT ERRED IN ENTERING THE ORDER OF MAY 28, 2009[[5]] BECAUSE DEFENDANT HAD LACK OF NOTICE AND DID NOT HAVE THE OPPORTUNITY FOR A HEARING.
*893 III. SERVICE WAS DEFECTIVE RESULTING IN A LACK OF JURISDICTION RENDERING THE SUBSEQUENT ORDERS VOID.
IV. THE TRIAL COURT ERRED IN AWARDING COUNSEL FEES TO PLAINTIFF BECAUSE THE LEGAL REQUIREMENTS AND EQUITIES STRONGLY FAVOR [WRP] OVER THE PLAINTIFF UNDER THE CIRCUMSTANCES.
A. There Was No Legal Basis For The Imposition Of Counsel Fees.
B.

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10 A.3d 889, 417 N.J. Super. 518, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atfh-real-prop-v-winberry-rlty-njsuperctappdiv-2010.