Ejk Realty LLC v. Akr Contracting Inc.

New Jersey Superior Court Appellate Division·Decided November 14, 2024·No. A-1723-22·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-1723-22

EJK REALTY LLC, a New Jersey Limited Liability Company, and EDWARD KLOSS, JR.,

Plaintiffs-Appellants,

v.

AKR CONTRACTING, INC. and ANDREW RUSIN,

Defendants/Third-Party

Plaintiffs-Respondents,

v.

RIGG ASSOCIATES, P.A., BRUCE RIGG, and DYNAMIC ENGINEERING CONSULTANTS, P.C.,

Third-Party Defendants.

Argued October 29, 2024 – Decided November 14, 2024 Before Judges Sumners and Perez Friscia.

On appeal from the Superior Court of New Jersey, Law Division, Morris County, Docket No. L-0518-17.

Allan Maitlin and Peter Greene argued the cause for appellants (Sachs Maitlin & Greene, attorneys; Allan Maitlin and Peter Greene, on the briefs).

Joshua A. Zielinski argued the cause for respondents (O'Toole Scrivo, LLC, attorneys; Peter V. Koenig and Steven A. Weiner, of counsel and on the brief).

PER CURIAM Plaintiffs EJK Realty LLC and Edward Kloss, Jr. appeal from the Law Division's December 7, 2022 order granting defendants AKR Contracting, Inc. and Andrew Rusin summary judgment dismissing plaintiffs' complaint with prejudice, and January 20, 2023 order denying reconsideration. After reviewing the record in light of prevailing legal principles, we affirm in part, reverse in part, and remand.

I.

We view the following facts established in the summary judgment record in the light most favorable to plaintiffs, the non-moving parties. See Crisitello v. St. Theresa Sch., 255 N.J. 200, 218 (2023). In April 2005, Kloss purchased a property located in Morris Plains on Route 10 for $2,350,000. He transferred the property to EJK, a company he owned. EJK retained Dynamic Engineering Consultants (Dynamic) to prepare a site plan, including a grading plan, for

A-1723-22

submission to the Morris Plains Board of Adjustment (Board) for development approvals. The property included a single vacant building, housing the Longo Electro-Mechanical Service Center (Longo building) and a developable wooded area.

The application proposed that the 20,143 square foot Longo building be converted to accommodate a single commercial tenant furniture store and the construction of a new 15,200 square foot multi-tenant strip mall. Notably, the grading plan for the Longo building indicated a 443.15 feet first-floor elevation. Because the property was in an office building zone, permitting hotel and office use, EJK applied for use and bulk variances. On April 23, 2007, the Board approved the plan by resolution and granted a use variance for a retail store.

EJK hired AKR to perform site work. AKR's responsibilities included:

"site clearing," "earth work," "storm drainage," "water [and] sanita[tion]," "retaining wall" construction, "site paving [and] signage," and "landscaping." AKR was responsible for retaining a surveyor to stake the property. Kloss provided Rusin, AKR's owner, the site plan for an estimate.

In January 2008, when examining the approved plan, Kloss realized the Longo building site plan did not include EJK's intended thirty-inch exterior

A-1723-22

grade increase that was necessary to meet the eastern side interior floor level. The eastern corner of the Longo building had been constructed to accommodate tractor-trailer deliveries, had an access area cut out for unloading into the building, and had an interior floor elevation thirty inches above the exterior grade. The approved grading plan incorrectly listed the first-floor elevation of the Longo building as 443.15 feet instead of 445.77 feet. Kloss notified Dynamic of the error and met with Rusin and Dynamic. It was decided Dynamic would revise the plans, but AKR would proceed with "clearance and demolition of the site." AKR agreed to complete the site development with the Board approved revised plans. On March 14, Dynamic revised its grading plan to correct the first-floor elevation to 445.77 feet. Thereafter, Rusin was purportedly provided copies of the revised plans.

Rusin had provided Rigg Associates, P.A. with a copy of the initial 2005 grading plan for a "professional surveying work" estimate. Rigg Associates submitted a contract proposal dated July 25, 2008, and AKR selected the proposal.

On October 7, Dynamic emailed EJK and AKR a copy of the revised site plan. On November 3, Dynamic provided a copy of the originally approved grading plan and the revised grading plan to the Morris Plains's borough

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engineer, noting "the main finished floor of the existing building [was] approximately [three feet] higher than that which was originally identified." Following EJK's submission of an amended application, on January 26, 2009, the Board approved the revised plan. The Board's February 23 resolution memorialized its approval and noted "an inaccuracy in the floor elevation of the [Longo] building was discovered[.] [S]pecifically, an area of approximately [twenty] feet by [forty] feet on the northerly side of the building was found to be [three] feet below the remainder of the finished floor," which necessitated "[EJK's] application to alter the site grading and increase the height of the retaining wall." EJK maintains it delivered the approved plans to AKR for completion of the site development.

On March 16, Rusin authorized Rigg Associates's surveying and staking work. Approximately three days later, Rusin spoke with Bruce Rigg, a professional engineer from Rigg Associates, who expressed the need for Dynamic's current digital grading plan files. Rusin directed Rigg to contact Dynamic and Kloss. Rigg's March 19 call log indicated he left a message with Dynamic requesting the digital file.

On March 23, a Rigg Associates's surveyor advised Dynamic he would be "on the job site" and requested "the [drawing] data." Rigg Associates's

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staking cut sheet indicated the "[b]uilding elevation" was based on a grading plan "dated 4/11/05" and that the "[c]ontractor must notify this office . . . if the above referenced plans ha[d] been revised." The cut sheet delineated the Longo building had a first-floor elevation of 443.15 feet. The same day, Rigg Associates "staked out the building" using the initial April 11, 2005 plan and not the February 2009 revised plan, which was Board approved a month earlier. Because Rigg Associates staked the property according to the initial plan, AKR graded the eastern side of the Longo building thirty inches below the interior floor and not as provided in the new plans.

A March 24, 2010 memorandum AKR created indicated an AKR employee telephonically inquired "why [Rigg Associates's] cut sheets d[id] not match his plans," which were "revised [up] to [March 11, 2009.]" A Rigg Associates employee explained Rigg Associates used the initial April 2005 plans as it had "only recently received" the revised plans to perform "additional work on-site."

In August 2010, Morris Plains's engineer "became aware of [the]

elevation issue relating to the construction of the new 15,000 [square foot] building in relation to the existing 20,000 [square foot] building." The engineer "advised the discrepancies were significant enough that he believe[d]

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