FOULKE MANAGEMENT CORPORATION VS. DOMESTIC LINEN SUPPLY CO., INC. (L-4057-13 AND L-2354-14, CAMDEN COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedMarch 5, 2020
DocketA-4725-18T2
StatusUnpublished

This text of FOULKE MANAGEMENT CORPORATION VS. DOMESTIC LINEN SUPPLY CO., INC. (L-4057-13 AND L-2354-14, CAMDEN COUNTY AND STATEWIDE) (FOULKE MANAGEMENT CORPORATION VS. DOMESTIC LINEN SUPPLY CO., INC. (L-4057-13 AND L-2354-14, CAMDEN COUNTY AND STATEWIDE)) 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
FOULKE MANAGEMENT CORPORATION VS. DOMESTIC LINEN SUPPLY CO., INC. (L-4057-13 AND L-2354-14, CAMDEN COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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-4725-18T2

FOULKE MANAGEMENT CORPORATION,

Plaintiff-Appellant,

v.

DOMESTIC LINEN SUPPLY CO., INC., a New Jersey Corporation,

Defendant-Respondent. _____________________________

FOULKE MANANGEMENT CORPORATION,

Plaintiff,

DOMESTIC LINEN SUPPLY CO., INC., a Pennsylvania Corporation, and AMERICAN ARBITRATION ASSOCIATION,

Defendants. _____________________________

Argued January 28, 2020 – Decided March 5, 2020 Before Judges Yannotti and Firko.

On appeal from the Superior Court of New Jersey, Law Division, Camden County, Docket Nos. L-4057-13 and L-2354-14.

Laura D. Ruccolo argued the cause for appellant (Capehart & Scatchard PA, attorneys; Laura D. Ruccolo and Laura M. Danks, on the briefs).

Joseph D. Di Guglielmo argued the cause for respondent (Burton Neil & Associates, and Joseph D. Di Guglielmo, attorneys; Joseph D. Di Guglielmo, of counsel and on the brief).

PER CURIAM

This matter is before us for the third time. Plaintiff Foulke Management

Corporation (Foulke) appeals from an order entered by the trial court on March

25, 2019 finding Foulke entered into contracts with Domestic Linen Supply Co.,

Inc. (Domestic PA) and an order entered on June 19, 2019, which compelled

Foulke to arbitrate its dispute with defendant, Domestic PA. We affirm both

orders.

I.

We derive the following facts from the parties' motion papers and the facts

established at the evidentiary hearing. There are two businesses with the name

Domestic Linen Supply Co., Inc. One of those businesses is a New Jersey

A-4725-18T2 2 corporation, Domestic Linen NJ, and the other is a Pennsylvania corporation

that is authorized to conduct business in New Jersey, Domestic Linen PA.

Foulke engaged in three automobile dealerships known as Cherry Hill

Triplex, Cherry Hill Dodge, and Cherry Hill Mitsubishi. In March of 2010,

Foulke entered into three uniform supply service contracts with an entity called

Domestic Linen Supply Co., Inc. to rent uniforms for its businesses. All three

contracts list Domestic PA's address as Philadelphia, Pennsylvania, and require

arbitration of disputes when the amount in controversy exceeds $10,000. The

contracts state that they should be construed in accordance with Pennsylvania

law, and notices should be sent to the company's manager in Philadelphia.

In 2013, Foulke filed a complaint against Domestic Linen NJ, in which it

asserted claims of breach of contract, common law fraud, and violations of the

New Jersey Consumer Fraud Act.1 Domestic Linen NJ filed a motion to dismiss

the complaint, arguing that Foulke entered into the contracts with Domestic

Linen PA, not Domestic Linen NJ. The prior trial judge did not rule on that

issue and ordered Foulke to arbitrate the dispute, as required by the agreements

set forth in the contracts.

1 N.J.S.A. 56:8-1 to -210. A-4725-18T2 3 Domestic Linen PA then filed a demand for arbitration, asserting it was

the party that entered into the subject contracts with Foulke. In response, Foulke

filed an action to enjoin the arbitration proceeding on the ground that another

trial judge had ruled that Domestic Linen NJ was the proper contracting party.

The prior trial judge restrained Domestic Linen PA from proceeding with the

arbitration. Domestic Linen PA appealed that decision.

We reversed both orders, consolidated the cases, and remanded to the trial

court for an evidentiary hearing to determine whether Domestic Linen PA or

Domestic Linen NJ was the party with whom Foulke had entered into the

contracts. Foulke Mgmt. Corp. v. Domestic Linen Supply Co., No. A-0752-14

(App. Div. Mar. 14, 2016).

On remand, the prior trial judge did not comply with our mandate and

issued an order on February 2, 2018, compelling a jury trial to determine the

proper parties. He also denied Domestic NJ's motion for reconsideration on

March 15, 2018. We reversed and vacated the February 2, 2018 and March 15,

2018 orders and remanded to the trial court for a non-jury evidentiary hearing

on the issue as to which defendant was the party to the contract with Foulke.

Foulke Mgmt. Corp. v. Domestic Linen Supply Co., No. A-3219-17 (App. Div.

Dec. 5, 2018).

A-4725-18T2 4 On the second remand, a different trial judge conducted an evidentiary

hearing on February 22, 2019. In a March 22, 2019 oral opinion, the trial judge

found that Foulke's service manager, Joe Scicili, now deceased, negotiated three

uniform rental agreements with Domestic PA's service manager, Lawrence

Messineo. The trial court also found that William Kopp, Foulke's general

manager and representative, "signed each agreement but never read page [two]

which contains both a choice of law clause (Pennsylvania) and arbitration

clause." In conclusion, the judge found Foulke entered into the contracts with

Domestic PA.

In an April 18, 2019 order, the trial judge permitted Foulke to file a motion

for leave to file and serve an amended complaint to bring its claims against

Domestic PA applying retroactively to the initial filing date of the complaint in

2013. The motion was granted, and Foulke filed its amended complaint on April

2, 2019. Domestic PA then moved to dismiss the complaint and compel

arbitration as per the arbitration provisions set forth in the contracts. On June

19, 2019, the trial judge ordered the parties to arbitrate their dispute and

dismissed the complaint.

The contracts include an arbitration clause at paragraph fifteen, which

states:

A-4725-18T2 5 In the event of any controversy or claim in excess of $10,000.00 arising out of or relating to this agreement, including but not limited to questions regarding the authority of the persons who have executed this agreement, the question, controversy or dispute shall be submitted to and settled by arbitration to be held in the city closest to the city in which the branch office of the [c]ompany which serves the [c]ustomer is located. Said arbitration shall be held in accordance with the then prevailing commercial arbitration rules of the American Arbitration Association [(AAA)] except any rules which require the parties to use the [AAA] as their sole [a]rbitration [a]dministrator. Judgment upon and award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The filing party may use either court or arbitration where the claim is less than $10,000.00. Venue for any court proceeding shall be in the county of the [c]ompany's branch office servicing the [c]ustomer. The judge or arbitrator shall include as part of the award all costs including reasonable attorney fees and arbitration fees of the non- breaching party where it is determined that one of the parties has breached the agreement.

Foulke argued that it was not made aware of these terms and signed the

contracts, but Kopp, its signatory, did not read the second page where the

arbitration clause was printed. Additionally, Foulke argued that the arbitration

clause was unconscionable and lacked mutual assent. Domestic argued that both

the Federal Arbitration Act (FAA), 9 U.S.C.

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FOULKE MANAGEMENT CORPORATION VS. DOMESTIC LINEN SUPPLY CO., INC. (L-4057-13 AND L-2354-14, CAMDEN COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/foulke-management-corporation-vs-domestic-linen-supply-co-inc-njsuperctappdiv-2020.