Frank A. Greek & Sons, Inc. v. Township of South Brunswick

607 A.2d 1359, 257 N.J. Super. 94, 1992 N.J. Super. LEXIS 240
CourtNew Jersey Superior Court Appellate Division
DecidedJune 16, 1992
StatusPublished
Cited by10 cases

This text of 607 A.2d 1359 (Frank A. Greek & Sons, Inc. v. Township of South Brunswick) 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
Frank A. Greek & Sons, Inc. v. Township of South Brunswick, 607 A.2d 1359, 257 N.J. Super. 94, 1992 N.J. Super. LEXIS 240 (N.J. Ct. App. 1992).

Opinion

The opinion of the court was delivered by

KEEFE, J.A.D.

After the Supreme Court issued its decision on December 13, 1990, in Holmdel Builders Ass’n v. Township of Holmdel, 121 N.J. 550, 583 A.2d 277 (1990), the Council On Affordable Housing (COAH) issued an “Administrative Order” (AO) on January 28, 1991, announcing its intention to adopt regulations with respect to mandatory development fees designed to establish “standards and criteria for such ordinances” and “how fees collected prior to the Holmdel decision are to be handled.” The AO also provided that municipalities which had collected such fees prior to the Holmdel decision could retain the fees in a separate, interest bearing account “provided that the municipality adopts and submits to COAH a duly adopted resolution of the municipal governing body expressing its intent to submit its ordinance to COAH immediately upon COAH promulgation of comprehensive regulations that set standards for such ordinance.” About the same time or shortly thereafter, plaintiff developers and builders in these consolidated matters1 either reactivated suits that had been previously stayed or instituted actions against the defendant municipalities to recover fees paid by plaintiffs under the municipalities’ invalidated development fee ordinances. In each case, the defendant municipality relied upon the AO as a defense. COAH was permitted to intervene in each case and either moved for a stay of the proceedings pending promulgation of the regulations or a transfer to the Appellate Division, contending that any challenge to the validity of the AO must be heard in this court. Plaintiffs [99]*99and defendant municipalities cross-moved for summary judgment.

On June 14, 1991, the Law Division judge in the matters involving the Township of Chester denied COAH’s motion to transfer to the Appellate Division, holding that the provisions of R. 2:2-3(a)(2) were not applicable to these circumstances. He concluded that “the Supreme Court has decided that the ordinances are invalid and that the fees collected pursuant to those ordinances were invalidly collected and they go back to either developer or some derivative person appropriately thereunto authorized.” He further decided that there was no way in which COAH could adopt a regulation or regulations which could result in the “resuscitation of these invalidly adopted ordinances.” However, the judge stopped short of granting summary judgment to the plaintiffs finding that “there still are open questions about who gets the money.” Finally, he directed the parties to attempt to enter into a stipulation concerning terms for the refund. When he later learned that such a stipulation could not be agreed upon, he scheduled an evidentiary hearing to determine the amount owed to the individual plaintiffs. We granted COAH's motion for leave to appeal that interlocutory order and stayed the trial court proceedings pending appeal.

On July 15, 1991, the trial judge in the matter involving the Township of Holmdel addressed motions similar to those presented in the Township of Chester cases. He understood the Supreme Court’s decision in Holmdel to say that the individual builders were entitled to start their own actions for a return of the money but did not interpret the decision to hold that the builders were entitled to a return of the monies as a matter of law and without the development of a full record. He considered the AO to be advisory and denied COAH’s motion to transfer the matter to the Appellate Division and/or stay the proceedings pending decision on COAH’s motion to obtain leave to appeal in the Township of Chester case. Instead, he elected to press forward with the litigation and [100]*100scheduled a pretrial conference. We granted COAH’s motion for leave to appeal and stayed the trial court proceedings pending appeal.

On July 30, 1991, the trial judge in the matters involving the Township of South Brunswick entertained motions involving arguments similar to those presented in the Chester and Holmdel matters. He denied COAH’s motion to stay the cases and/or transfer them to the Appellate Division finding that the AO did not rise to the level of rule-making or gwasi-judicial action. He further found “as a matter of law that any regulation, even one validly adopted in futuro and validly adopted by the municipality, would constitute an ex post facto rule or regulation, and you cannot now resuscitate that which was exacted illegally in the first place.” Thus, he entered summary judgment in favor of the plaintiffs in those cases and ordered that the monies on deposit with the Township be returned to them. COAH and the Township of South Brunswick filed separate notices of appeal from this final judgment. Thereafter, we entered a stay pending appeal.2

Finally, on August 2, 1991, the trial judge in the matter involving the Township of Cherry Hill also denied COAH’s motion for a stay and/or transfer to the Appellate Division. He concluded that no deference should be given to the AO and entered summary judgment in favor of plaintiffs ordering a return of the money with interest. He also determined that the Cherry Hill ordinance was invalid because the Township Council substantially altered it by passing a resolution after the first reading increasing the fee from one percent to three percent without notification to the public. However, he stayed the order pending appeal. Cherry Hill and COAH filed separate notices of appeal.3

[101]*101On appeal, COAH contends that in each case the validity of its AO was directly at issue and, for that reason, the trial judges erred in failing to transfer the cases to the Appellate Division for determination. COAH contends further that the AO was a reasonable exercise of its statutory authority under the Fair Housing Act (FHA), that it has the power to adopt regulations providing procedures to validate the invalidly adopted ordinances, and that the announcement of its intention to adopt such regulations is not prima facie invalid and should have been honored. The municipalities have essentially adopted the same position as COAH. However, in the Cherry Hill matter the municipality also contends that the trial judge erred in determining that the Cherry Hill ordinance was procedurally invalid.

We need not address the issue of whether the trial judges erred in denying COAH’s motion to transfer that portion of the litigation before them challenging COAH’s authority to issue the AO, nor need we decide whether the AO was a valid exercise of COAH’s power. As we see it, those issues are simply ancillary to the primary issue which undergirds each of the orders under review, save perhaps the order stemming from the Holmdel matter. The principle issue to be decided is whether COAH has the potential power4 to promulgate regulations upon which the defendant municipalities may rely to validate prior action on their part in collecting the mandatory builders’ fees. For the reasons stated herein, we conclude that COAH has such power and that there is sufficient general authority permitting municipalities to validate prior conduct. In light of this conclusion, we further hold that the trial judges [102]*102should have deferred action for a reasonable period of time pending completion of the administrative process.

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Bluebook (online)
607 A.2d 1359, 257 N.J. Super. 94, 1992 N.J. Super. LEXIS 240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-a-greek-sons-inc-v-township-of-south-brunswick-njsuperctappdiv-1992.