Ejk Realty LLC v. Akr Contracting Inc.

CourtNew Jersey Superior Court Appellate Division
DecidedNovember 14, 2024
DocketA-1723-22
StatusUnpublished

This text of Ejk Realty LLC v. Akr Contracting Inc. (Ejk Realty LLC v. Akr Contracting Inc.) 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
Ejk Realty LLC v. Akr Contracting Inc., (N.J. Ct. App. 2024).

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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

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 2 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 3 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

A-1723-22 4 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

A-1723-22 5 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]

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