Garden State Land Co. v. VINELAND

846 A.2d 625, 368 N.J. Super. 369
CourtNew Jersey Superior Court Appellate Division
DecidedApril 26, 2004
StatusPublished
Cited by4 cases

This text of 846 A.2d 625 (Garden State Land Co. v. VINELAND) 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
Garden State Land Co. v. VINELAND, 846 A.2d 625, 368 N.J. Super. 369 (N.J. Ct. App. 2004).

Opinion

846 A.2d 625 (2004)
368 N.J. Super. 369

GARDEN STATE LAND COMPANY, Assignee of Garden State Investment Group, Plaintiff-Respondent,
v.
The CITY OF VINELAND, Defendant/Third-Party Plaintiff-Appellant,
v.
Realty Asset Properties, Ltd., FUNB, as Custodian for D.H. Associates, and FUNB, As Custodian for National Tax Fund, Third-Party Defendants.

Superior Court of New Jersey, Appellate Division.

Argued February 4, 2004.
Decided April 26, 2004.

*626 Richard P. Tonetta, argued the cause for appellant.

Keith A. Bonchi, Atlantic City, argued the cause for respondent (Goldenberg, Mackler, Sayegh, Mintz, Pfeffer, Bonchi & Gill, attorneys; Mr. Bonchi, on the brief).

Before Judges KING, LISA and S.L. REISNER.

The opinion of the court was delivered by

LISA, J.A.D.

Defendant, City of Vineland (City), appeals from a final order of the Chancery *627 Division granting summary judgment in favor of plaintiff, Garden State Land Company (Garden State) and denying the City's cross-motion for summary judgment. Garden State initiated this action to quiet title to a parcel of real estate in Vineland, upon which it had foreclosed two tax title liens. Prior to commencement of the foreclosure action, the City caused to be demolished the structures on the property, which the City determined were unfit for human habitation, occupancy or use. After Garden State completed its foreclosure action, the City imposed a tax lien against the property for its demolition cost of $44,581.42. The final judgment in Garden State's foreclosure action recited an amount due of $20,287.47.

Because Garden State was not served with notice in the demolition proceeding, as required by statute, it contended in the quiet title action that the City's tax lien for the demolition cost was defective and could not properly constitute an encumbrance against its title. Judge Rafferty agreed and entered judgment in Garden State's favor. The judge fashioned an equitable remedy, by which the City was given two choices: (1) If the City wished to preserve its demolition lien, it would be required, within sixty days, to reimburse Garden State for the amount of the underlying liens which were foreclosed by Garden State, together with statutory interest on the liens and on any subsequent taxes paid by Garden State. The City would also be required to pay Garden State taxed costs. As a variation of this alternative, if the City wished to obtain title to the property, it would be further required to reimburse Garden State for its actual out-of-pocket expenses to complete the foreclosure action, in exchange for which Garden State would convey title by deed to the City. (2) If the City did not reimburse Garden State within sixty days, the City's demolition lien was to be declared invalid, and the City ordered to discharge it.

The judge entered an order staying the final judgment, with certain conditions agreed to by the parties, pending appeal. The City argues on appeal:

POINT I

THE TRIAL COURT'S DETERMINATION THAT TAX LIEN HOLDER IS A "PARTY IN INTEREST" AS A PERSON ENTITLED TO NOTICE OF HEARING BEFORE THE HEALTH OFFICER PURSUANT TO N.J.S.A. 40:48-2.5 IS AN ERROR. A "PARTY IN INTEREST" IS A PARTY WITH LEGAL INTEREST, NOT EQUITABLE INTEREST.

POINT II

A MUNICIPALITY HAS THE DUTY AND POWER TO DEMOLISH STRUCTURES WHICH ARE DANGEROUS TO HUMAN LIFE OR PUBLIC WELFARE PURSUANT TO N.J.S.A. 40:48-1.1 AND TO PLACE A LIEN TO RECOVER COSTS OF DEMOLITION AS WELL AS SUCH AN ACTION AT LAW AGAINST THE OWNER FOR THE DEBT. THERE IS NO STATUTORY REQUEST (sic) OF NOTICE TO PARTIES IN INTEREST UNDER N.J.S.A. 40:48-1.1.

POINT III

THE DEMOLITION OF DILAPIDATED STRUCTURES ON THE PROPERTY BY THE CITY OF VINELAND WITH KNOWLEDGE BY THE PLAINTIFF AMOUNTS TO UNJUST ENRICHMENT AND EQUITY REQUIRES REIMBURSEMENT TO CITY OF VINELAND OF REASONABLE COSTS ASSOCIATED WITH DEMOLITION.

We reject these arguments and affirm.

Garden State acquired two tax sale certificates covering the subject property. *628 The first, Certificate # 6208 dated November 19, 1996, was recorded in the county clerk's office on December 11, 1996, subject to a redemption sum of $3,341.91. The second, Certificate # 6317, dated October 8, 1997, was recorded in the county clerk's office on October 16, 1997, subject to a redemption sum of $571.72. The property covered by the certificates is 520 South Seventh Street in Vineland. The record owner of the property was Realty Asset Properties, Ltd. (Realty).

The property had apparently been used for commercial purposes as a bakery, and contained structures which were fifty to seventy-five-years old. The property had apparently been vacant since about 1991, and the structures had fallen into disrepair. On August 20, 1998, the City issued a complaint directed to Realty, informing it that, pursuant to a city ordinance, the condition of the building and premises at 520 South Seventh Street was defective, dilapidated, and in a state of disrepair and uncleanliness, and contained structural defects.

The complaint stated that "[t]he building in its present condition, without said repair, alteration, or improvements made same dangerous to the health and safety of persons on or near said premises." The complaint informed Realty that a hearing would be held on September 3, 1998 to determine whether the building and premises were unfit for human habitation, occupancy or use. The complaint further informed Realty it had the right to file an answer to the complaint and appear in person or otherwise at the hearing. The complaint was signed by the director of the City's department of health, and it was served on Realty at its address in Florida.

Realty did not respond or appear at the hearing. On September 4, 1998, the City issued an order requiring repair, alteration or improvement of the premises, in the absence of which removal or demolition would be required. More particularly, the order required that Realty obtain construction permits by October 5, 1998 and complete necessary repairs by March 5, 1999. If no construction permits were obtained by October 5, 1998, demolition would be required by November 4, 1998. The order concluded that in the event Realty failed to comply, "the undersigned may cause the subject building(s) to be removed or demolished, the cost of which demolition shall be a lien upon the property...." This order was also signed by the City's director of the department of health and served on Realty in Florida.

Realty continued to be non-responsive. The City took no further action over the next eight months. On May 3, 1999, the City's chief sanitary inspector issued a report describing the poor condition of the buildings. On May 26, 1999, the City filed in Superior Court a verified complaint seeking an order authorizing demolition of the structures on the property. Process was served only on Realty. On December 17, 1999, an order for judgment was entered, pursuant to N.J.S.A. 40:48-2.5, authorizing demolition.

The City advertised for demolition bids and awarded a contract. Demolition occurred in April 2000, twenty months after issuance of the original administrative complaint on August 20, 1998. The City incurred a demolition cost of $44,581.42. The City thereafter attempted unsuccessfully to sell the demolition lien, as a result of which the City acquired it. The City recorded the lien, which, with accrued interest and costs of sale was then in the amount of $45,553.15, in the county clerk's office on March 15, 2001.

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846 A.2d 625, 368 N.J. Super. 369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garden-state-land-co-v-vineland-njsuperctappdiv-2004.