Borough of Seaside Park v. Shree Jyoti, LLC

Supreme Court of New Jersey·Decided August 10, 2026·No. A-2-25·Published

Opinion

SYLLABUS

This syllabus is not part of the Court’s opinion. It has been prepared by the Office of the Clerk for the convenience of the reader. It has been neither reviewed nor approved by the Court and may not summarize all portions of the opinion.

Borough of Seaside Park v. Shree Jyoti, LLC (A-2-25) (089599)

Argued March 16, 2026 -- Decided August 10, 2026 JUSTICE NORIEGA, writing for the Court.

In this condemnation action, the Court considers a question of first impression: whether a municipality must specify -- within the text of a municipal ordinance authorizing the taking of private property -- the particular public use intended for that property.

On November 15, 2021, the Borough Council of Seaside Park passed a resolution authorizing the acquisition by eminent domain and the appraisal of the Desert Palm Inn (the Property), which was owned by Shree Jyoti, LLC. Prior to the appraisal, a certified letter was sent to Shree Jyoti. A subsequent certified letter was sent by the appraiser. Both letters were signed for by “R. Kania”; the record reveals that Ramesh Kania was the principal of Shree Jyoti, and the owner of the Property.

On April 14, 2022, the Council passed an ordinance authorizing the acquisition of the Property. The ordinance stated that the taking would “promote and protect the health, safety and welfare of the residents of the Borough” and that “the acquisition of the property is in the furtherance of a public use and purpose,” but it did not specify the intended public use of the Property. On April 25, three days before the ordinance was to be voted on, Kania wrote to the Council and mayor, claiming he had not received notice of the appraisal or negotiations and questioning the asserted public use. On April 27, Shree Jyoti’s counsel sent the Borough a letter reiterating the claims. The ordinance passed at the Council’s April 28 meeting. After exchanges of letters and emails between the Borough and Shree Jyoti, the Borough filed its complaint in condemnation on July 19, 2022.

Shree Jyoti challenged the complaint on the ground that the ordinance failed to specify a public use. The trial court agreed and dismissed the complaint without prejudice. The Borough promptly filed a second, amended complaint that identified the intended public use as “including, but not limited to, a public parking lot together with electric vehicle charging infrastructure.” The trial court denied Shree Jyoti’s second motion to dismiss, and the Appellate Division affirmed. The Court granted certification. 261 N.J. 565 (2025).

HELD: The Court finds no support in the relevant statutes and case law for a requirement to specify, within the ordinance authorizing the taking, the public purpose for which private property is being taken. Neither the Eminent Domain Act (EDA) nor the Local Lands and Buildings Law (LLBL) requires a municipality to set forth the particular public purpose for a taking in the ordinance authorizing condemnation. In affirming the judgment of the Appellate Division, however, the Court underscores that municipalities should, as a matter of best practice, identify the intended public use for properties they seek to condemn as early as practicable.

1. The power of eminent domain in New Jersey is rooted in the State Constitution, which further authorizes the Legislature to delegate that power to political subdivisions of the State, including municipalities. Once a municipality exercises its power of eminent domain, a reviewing court will not disturb that decision absent an affirmative showing of fraud, bad faith or manifest abuse. The New Jersey Constitution, like its federal counterpart, requires that private property be taken only for a public use and with just compensation. See N.J. Const. art. I, ¶ 20; U.S. Const. amend. V. The definition of “public use” is expansive. However, although case law addresses the scope of, and challenges to, an asserted “public use,” New Jersey courts have not directly addressed the specific question of whether the ordinance authorizing a taking must itself state the public use. The public use must be identified so that it can be evaluated for constitutional compliance, even if the courts defer to the legislative judgment in most cases. But no statute or case law in this State directly addresses when, precisely, the condemnor must state the public use contemplated. As a result, the issue must be resolved by reference to the statutory text and structure. (pp. 11-14)

2. The EDA, N.J.S.A. 20:3-1 to -50, establishes the procedure for the legislative power of eminent domain. The Court reviews the EDA and notes that it makes no mention of the authorizing ordinance or what that ordinance must contain. The LLBL, N.J.S.A. 40A:12-1 to -30, meanwhile, provides that a municipality may acquire property “by ordinance,” but it does not require that the ordinance specify the public use for which the property is being acquired, N.J.S.A. 40A:12-5(a). The statute does not set forth any requirements for the ordinance beyond the need for its adoption -- it is silent as to the contents of the ordinance. The Court finds the EDA and LLBL unambiguous in their silence. Neither establishes any requirement that the condemning municipality specify the intended public use for the property it is taking in the ordinance authorizing the acquisition of the property. Should the Legislature determine that such a requirement is appropriate, it remains free to amend the statute to expressly require that the authorizing ordinance specify the intended public use. Nevertheless, the absence of a statutory mandate does not relieve municipalities of their obligation to act fairly in the exercise of their eminent domain power. Accordingly, although the law does not require that the intended use be specified in the authorizing ordinance, municipalities should, as a matter of best

practice, express the public use as early in the process as possible. Doing so ensures transparency, facilitates meaningful participation of affected owners, and upholds the public trust inherent in the exercise of this extraordinary governmental power. (pp. 15-17)

3. Here, the Borough did not violate any statutory, constitutional, or common law principles by omitting a specific public use from its authorizing ordinance. As detailed above, no law requires a municipality to articulate the intended public use in the ordinance itself. And the record demonstrates that the Borough identified the public use -- specifically, a public parking lot with electric vehicle charging infrastructure -- at the time it filed its amended complaint. This disclosure was made in sufficient time for the trial court to consider any challenges to the stated public use. Shree Jyoti did not raise any substantive challenge to the validity of the Borough’s asserted public use, and the record casts doubt on the allegations that Kania was unaware of the pending condemnation. Even if, as the dissent highlights and the Borough conceded at argument, the Borough might have better “turned square corners” by disclosing the intended public use earlier in the process, the dispositive issue here is not whether the Borough could have acted with greater candor or efficiency, but whether the law required it to do so at the time. The Court notes that although the Borough’s actions in this case did not run afoul of any statutory requirement, the Borough has spent the last four years involved in a matter that likely could have been resolved by simply disclosing the intended public use at the earliest reasonable point. (pp. 17-21)

AFFIRMED.

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