Cozy Cove Marina, Inc. v. Nelson Properties Partnership

New Jersey Superior Court Appellate Division·Decided October 4, 2024·No. A-0383-23·Unpublished

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-0383-23

COZY COVE MARINA, INC., incorrectly pled as Cozy Cove Properties, Inc., and LINDA TAVARES,

Plaintiffs-Respondents,

v.

NELSON PROPERTIES PARTNERSHIP (d/b/a Nelson Marine Basin, Inc.), JENNY NELSON SCARBOROUGH, GORDON NELSON, and MARTHA B. NELSON, individually and jointly,

Defendants-Appellants.

Argued September 17, 2024 – Decided October 4, 2024 Before Judges Gilson and Firko.

On appeal from the Superior Court of New Jersey, Chancery Division, Ocean County, Docket No. C-

000095-21.

Richard C. Sciria argued the cause for appellants (Hanlon Niemann & Wright, PC, attorneys; Richard C.

Sciria, of counsel and on the briefs).

Michael K.W. Nolan argued the cause for respondents (Carluccio Leone Dimon Doyle & Sacks, LLC, attorneys; Michael K.W. Nolan, of counsel and on the brief).

PER CURIAM In this adverse possession action, defendants Nelson Properties Partnership, doing business as Nelson Marine Basin, Inc. (Nelson Properties), Jenny Nelson Scarborough, Gordon Nelson, and Martha B. Nelson 1 (collectively defendants) appeal from an August 23, 2023 Law Division order granting summary judgment on plaintiffs Cozy Cove Marina, Inc.'s (Cozy Cove) and Linda Tavares's (collectively plaintiffs) second amended verified complaint 2 and dismissing defendants' counterclaim with prejudice. We affirm.

1 Regrettably, Martha B. Nelson passed away. She was an owner, partner, shareholder, and agent of Nelson Properties. The record indicates that Martha's interests are now vested in her estate. 2 Mark Nelson is an owner, partner, shareholder, and agent of Nelson Properties but was not named in the second amended verified complaint as a defendant. That omission is not germane to our decision.

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I.

In addressing the arguments as to summary judgment, we accept defendants' version of the facts and grant them the benefit of all favorable inferences. R. 4:46-2; Templo Fuente De Vida Corp. v. Nat'l Union Fire Ins. Co. of Pittsburgh, 224 N.J. 189, 199 (2016). Both plaintiffs and defendants own and operate full-service marinas, including boat slips, docking areas, and repair, fuel, and convenience services. Plaintiffs' marina is located on Holly Lake in the Borough of Island Heights (the Borough). Plaintiffs have owned their lakebed land and operated their businesses for over sixty years.

Defendants' marina is located on adjacent lands on Holly Lake. Gordon Nelson is the majority owner, partner, shareholder, and agent of Nelson Properties, and Jennifer Nelson Scarborough is an owner, partner, shareholder, and agent. Defendants' real property is known as 12 Lake Drive, block 50, lots 4 and 13. The parties' properties cover almost all the shoreland area of Holly Lake, a man-made lake, with access to the Toms River waterway.

Tavares's parents, Joseph and Mary Tavares, purchased and began operating Cozy Cove in 1972. The subject property was originally owned by the Borough. On January 22, 2004, Joseph and Mary Tavares deeded the property to Linda Tavares. On November 16, 2022, she conveyed the property

A-0383-23

to Cozy Cove. Since 1972, Cozy Cove maintained pilings, docks, piers, and a floating dock, portions of which were situated on lakebed land outside the property plaintiffs owned. The property in question, subject to plaintiffs' adverse possession claim, is less than one-third of an acre and is exclusively water bound within Cozy Cove's pilings, docks, piers, and catwalks. Plaintiffs' property is adjacent to and abuts portions of defendants' property.

In 1999, Nelson Properties filed a lawsuit against the Borough 3 addressing claims emanating from conditions imposed in a Planning Board/Board of Adjustment Resolution of Approval regarding a minor site plan application filed by Nelson Properties. The Borough filed a counterclaim against Nelson Properties alleging improper "entry and utilization of Holly Lake owned by the Borough."

On November 19, 2001, Nelson Properties and the Borough settled the litigation under which Nelson Properties entered into a seven-year lease agreement with the Borough with what Nelson Properties stated was "an option to purchase Holly Lake for $90,000.00." According to defendants, the option to

3 Nelson Marine Basin, Inc., et al. v. The Borough of Island Heights, et al., Docket No. OCN-L-2921-99. This complaint is not contained in the record.

A-0383-23

purchase Holly Lake included the "riparian encroachment"4 alleged by plaintiffs to be subject to adverse possession. On April 12, 2007, Nelson Properties alleges that they exercised the option and purchased Holly Lake from the Borough.

Defendants maintain that plaintiffs have a full dock with a 3,000-gallon tank, which generates revenues from fuel sales and was available to the public to dock and fuel marine vessels. Defendants assert that plaintiffs' fuel dock contained a pump station for use by the public to dispose of sewage waste from marine vessels in accordance with the Clean Vessel Act of 1992, 33 U.S.C. § 1332 and the New Jersey Clean Vessel Act (NJCVA) Program, N.J.S.A. 23:2B- 3; 23:2B-6; and 23:2B-7.5 Defendants contend plaintiffs' pump station was funded under the NJCVA, and thus required reasonable access to the public.

4 We note the term "riparian encroachment" is used by defendants in the record. In their more specific answers to interrogatories, plaintiffs object to the term "riparian encroachment" and state the issue is "adverse possession." 5 Relevant here, the NJCVA provides grants "for the construction, renovation, operation, and maintenance of pumpout stations and dump stations and for educational programs that inform boaters of the importance of proper disposal of their sewage." Clean Vessel-Pump Out Facilities, Dept. of Env't Prot., https://dep.nj.gov/grantandloanprograms/clean-vessel-pump-out-facilities/ (last visited Sept. 30, 2024); see About NJboating.org, NJboating.org, https://njboating.org/about-us/#:~:text=The%20clean%20vessel%20Act%20 Program,of%20proper%20disposal%20of%sewage (last visited Sept. 30, 2024).

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Defendants claim plaintiffs currently have a "ship store" in which public vessels can dock and purchase items at the store.

Defendants also assert the only way public marine vessels can enter Cozy Cove to access the pump station, fuel dock, and its other facilities is by travelling across Holly Lake, which defendants own. Defendants also claim that portions of plaintiffs' piers, docks, and pilings extend beyond their property line and encroach into defendants' property on Holly Lake. In addition, defendants maintain that plaintiffs constructed and use a floating dock encroaching on defendants' property, which was constructed without defendants'—or the prior owners'—consent.

Plaintiffs counter the Borough "owned the land under the private body of water known as Holly Lake," and when the Borough transferred title to their respective portions of Holly Lake to Cozy Cove and Nelson Properties, "at no time was Holly Lake ever used or dedicated to any public purposes."

On October 10, 2014, prior counsel for defendants sent a letter to Cozy Cove, which stated:

Please be advised that this office has been retained to represent Nelson Properties, Island Heights, New Jersey. Our client owns property which immediately adjoins your [m]arina. In reviewing, with our client, current survey information, as well as the tax maps and title records contained in the Ocean County Clerk's

A-0383-23

Office, we discovered encroachments by you upon our client's property.

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