Evans-Aristocrat Industries, Inc. v. City of Newark

324 A.2d 65, 129 N.J. Super. 437, 1974 N.J. Super. LEXIS 619
CourtNew Jersey Superior Court Appellate Division
DecidedJuly 17, 1974
StatusPublished
Cited by1 cases

This text of 324 A.2d 65 (Evans-Aristocrat Industries, Inc. v. City of Newark) 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
Evans-Aristocrat Industries, Inc. v. City of Newark, 324 A.2d 65, 129 N.J. Super. 437, 1974 N.J. Super. LEXIS 619 (N.J. Ct. App. 1974).

Opinion

Kimmelman, J. S. C.

At issue ¡here is the extent to which the Port Authority of New York and New Jersey (Port Authority) may be subjected to injunction suits sanctioned by [439]*439the Attorney General of New Jersey pursuant to the discretion vested in him by N. J. S. A. 32:1-161 to waive that agency’s sovereign immunity from suit.

The precise question is whether a private litigant, plaintiff Evans-Aristocrat Industries, Inc., shall be permitted to amend its complaint to assert a mandatory injunction claim against the third-party defendant Port Authority. The Attorney General of New Jersey has moved to intervene in this action for the express purpose of lending his name in order to enable plaintiff to litigate its injunction claim against the Port Authority. Resolution of the issue depends upon an interpretation of N. J. S. A. 32:1-61 which waives the sovereign immunity of the Port Authority in suits, actions or proceedings for orders or decrees restraining, enjoining or preventing the Port Authority from committing or continuing to commit any act or acts only where the Attorney General of Now York or the Attorney General of New Jersey brings such suit, action or proceedings in his discretion on behalf of any person or persons who requests him to do so.

The issue arises in the context of the following factual background as alleged by plaintiff:

1. The Port Authority leases from defendant City of Newark (city) land used and occupied in the operation of Newark International Airport.

2. The lease documents between the city and the Port Authority require the latter, in connection with the expansion of the airport facilities recently undertaken and now being completed, to relocate any existing water main, sewer or drainage ditch deemed necessary, with the proviso that the city approve plans and specifications for any such relocated or redesigned facility.

3. Earthwork, filling and grading undertaken and performed incident to the expansion of the airport is alleged to have altered established drainage patterns in the southeastern sector of the city known as the Waverly District of the municipal sewerage system.

[440]*4404. In connection with such expansion work the Port Authority constructed a pumping station designed to facilitate the drainage in the Waverly District and to prevent flooding. The pumping station was to assist the preexisting Waverly drainage ditch in carrying water collected from the Waverly District through the airport premises for discharge into Newark Bay.

5. Plaintiff operates a manufacturing plant at 768 Frelinghuysen Avenue in the City of Newark, within the Waverly District area intended to be served by said pumping station.

6. Subsequent to the commencement of the expansion of the airport facilities and following the construction of the pumping station, plaintiff’s plant was flooded and substantially .damaged on two different occasions, first in August 1967 and again in August 1971.

7. Plaintiff attributes the flooding and resultant damage to the alteration of the previously established Waverly District drainage pattern; to the clogging of the Waverly drainage ditch with debris allowed to accumulate by reason of inadequate maintenance; and to the failure by the city and the Port Authority to properly construct a pumping station with adequate capacity to serve the Waverly District.

8. Initially, plaintiff instituted this action against the city for damages caused by the flooding conditions and for a mandatory injunction seeking corrective action.

9. The city impleaded the Port Authority as a third-party defendant seeking contribution in the event the city was called upon to respond in damages.

10. Plaintiff now moves to amend its complaint in order to assert its claim for mandatory injunctive relief against the Port Authority. The Port Authority objects to the amendment against it on the grounds that it is immune from injunction suits except where brought by either the Attorney General of New Jersey or New York pursuant to the provisions of N. J. S. A. 32:1—161.

[441]*441In this posture of the case, the Attorney General of New Jersey moves to intervene on behalf of the plaintiff with the express intendment that plaintiff’s claim against the Port Authority may be heard on the merits, subject, however, to two qualifications: first, the Attorney General does not intend to conduct any discovery or require time to prepare for trial, and second, the Attorney General does not take nor will he take any position as to the merits of the case.

The Port Authority is “a body corporate and politic,” N. J. S. A. 32:1-4, created by interstate compact between the States of New Jersey and New York, N. J. S. A. 32:1-1 et seq.; McKinney’s Unconsol. Laws of New York, § 6401 et seq., with the approval of Congress. 42 Stat. 174. It is fully owned by the compacting states, Commissioner of Internal Revenue v. Shamberg’s Estate, 144 F. 2d 988, 1000 (2 Cir. 1944), cert. den. 323 U. S. 792, 65 S. Ct. 433, 89 L. Ed. 631 (1945), and has been variously defined as “an instrumentality or agency of the two states,” N. J. S. A. 32:1-25; McKinney’s Unconsol. Laws of New York, § 6451, a joint agency of sovereign states, Marmor v. Port of New York Authority, 203 Misc. 568, 116 N. Y. S. 2d 177, 178 (Sup. Ct. 1952), and an arm and agency of both states. Bush Terminal Co. v. City of New York, 282 N. Y. 306, 26 N. E. 2d 269 (Ct. App. 1940); Port of New York Authority v. J. E. Linde Paper Co., 205 Misc. 110, 127 N. Y. S. 2d 155, 158 (Mun. Ct. of City of New York 1954).

Prior to 1951 the Port Authority was cloaked with absolute sovereign immunity from suit. Port of New York Authority v. Weehawkin Tp., 27 N. J. Super. 328, 333 (Ch. Div. 1953), rev’d on other grounds, 14 N. J. 570 (1954); Trippe v. Port of New York Authority, 14 N. Y. 2d 119, 249 N. Y. S. 2d 409, 198 N. E. 2d 585 (Ct. App. 1964). In that year, by joint enactment of the legislatures of both New York and New Jersey, see McKinney’s Unconsol. Laws of New York, § 7101 et seq. and N. J. S. A. 32:1-157 et seq., prospective consent to suits, actions or proceedings at law or in equity was given with one specific exception as contained in [442]*442N. J. S. A. 32:1-161 and its New York counterpart as follows :

The foregoing consent does .not extend1 to suits, actions or proceedings for judgments, orders or decrees restraining, enjoining or preventing the Port Authority from committing or continuing to commit any act or acts, other than suits, actions or proceedings by the Attorney-General of New York or by the Attorney-General of New Jersey — each of whom is hereby authorized to bring such suits, actions or proceedings in his discretion on behalf of any person or persons whatsoever who requests him so to do * * *.

Although the legislative history pertinent .to the waiver of the Port Authority’s immunity from suit is meager, the intended purpose in preserving immunity- from injunction suits unless sanctioned by the Attorney General of either state is readily apparent and easily understood.

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Related

Evans-Aristocrat Industries, Inc. v. City of Newark
356 A.2d 23 (New Jersey Superior Court App Division, 1976)

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Bluebook (online)
324 A.2d 65, 129 N.J. Super. 437, 1974 N.J. Super. LEXIS 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/evans-aristocrat-industries-inc-v-city-of-newark-njsuperctappdiv-1974.