GMAC v. Pittella

17 A.3d 177, 205 N.J. 572, 2011 N.J. LEXIS 346
CourtSupreme Court of New Jersey
DecidedMarch 23, 2011
DocketA-15 September Term 2010
StatusPublished
Cited by40 cases

This text of 17 A.3d 177 (GMAC v. Pittella) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GMAC v. Pittella, 17 A.3d 177, 205 N.J. 572, 2011 N.J. LEXIS 346 (N.J. 2011).

Opinion

Judge STERN (temporarily assigned)

delivered the opinion of the Court.

We granted certification to decide whether an order compelling arbitration as to one or more, but not all, claims and parties is final for purposes of appeal. The Law Division compelled arbitration of the claims between defendant third-party plaintiff Rosanna Pittella and third-party defendant Pine Belt Enterprises, Inc. (“Pine Belt”), but allowed the complaint of plaintiff General Motors Acceptance Corporation (GMAC) against Pittella to proceed. *575 When the litigation between GMAC and Pittella in the Law Division ended one year later, Pittella appealed the order compelling arbitration. The Appellate Division denied Pine Belt’s motion to dismiss the appeal as untimely, and decided Pittella’s appeal on its merits and in her favor. The Appellate Division considered the appeal timely because the matter did not result in a final judgment until it was resolved as to all claims and all parties. We now hold that any order compelling or denying arbitration shall be deemed final for purposes of appeal, but that the trial court shall retain jurisdiction to address other issues pending the appeal.

I.

On February 27, 200S, Pittella entered into a “retail installment sale contract” with Pine Belt to finance the purchase of a car she bought at Pine Belt. Pittella simultaneously signed an arbitration agreement 1 entitled “Option to Arbitrate Disputes,” which provided:

By applying for financing with us, and by purchasing or leasing a motor vehicle from us, you agree that if any dispute of any kind arises out of your financing, leasing or acquisition of the vehicle, or any of the documents related thereto, either you or we or third parties involved can choose to have that dispute resolved by binding arbitration as set forth in the arbitration provision below. If arbitration is chosen, it will be conducted pursuant to the Code of Procedure of the American Arbitration Association (the “AAA”). If you have any questions concerning the AAA or wish to obtain a copy of their rules and forms, you may call them at 732-560-9560.
IF ARBITRATION IS CHOSEN BY ANY PARTY WITH RESPECT TO A CLAIM, DISPUTE OR CONTROVERSY, NEITHER YOU NOR WE WILL HAVE THE RIGHT TO LITIGATE THAT CLAIM IN COURT OR TO HAVE A JURY TRIAL ON THAT CLAIM, OR TO ENGAGE IN PRE-ARBITRATION DISCOVERY, EXCEPT AS PROVIDED IN THE ARBITRATION RULES. FURTHER, YOU WILL NOT HAVE THE RIGHT TO PARTICIPATE AS A REPRESENTATIVE OR MEMBER OF ANY CLASS OF CLAIMANTS PERTAINING TO ANY CLAIMS SUBJECT TO ARBITRATION. THE ARBITRATOR’S DECISION WILL GENERALLY BE FINAL AND BINDING. OTHER RIGHTS THAT YOU WOULD HAVE IF YOU WENT TO COURT MAY ALSO NOT BE AVAILABLE IN ARBITRATION. IT IS IMPORTANT THAT YOU *576 READ THE ENTIRE ARBITRATION PROVISION CAREFULLY BEFORE SIGNING THESE DOCUMENTS.
Unless inconsistent with applicable law, each party shall bear the expenses of their respective attorneys’, experts’ and witness fees, regardless of which party prevails in the arbitration. If any portion of this Arbitration Provision is deemed invalid or unenforceable under the Federal Arbitration Act, 9 U.S.C. Sections 1-16 it should not invalidate the remaining portions of this arbitration provision.

Pine Belt assigned the contract to GMAC. On February 12, 2008, GMAC repossessed the ear for non-payment and filed suit against Pittella in the Special Civil Part for a deficiency balance of $14,013.15.

On April 21, 2008, Pittella filed an answer, a counterclaim, and a third-party complaint against Pine Belt. The third-party complaint alleged violations of the New Jersey Consumer Fraud Act, N.J.S.A 56:8-1 to -184, and “breach of contract, fraud and breach of implied covenant of good faith and fair dealing,” including unconscionability under Section 302 of the Uniform Commercial Code, N.J.S.A 12A:2-302. Pittella alleged that Pine Belt charged an excessive price for the extended warranty on the car, and that “the disclosures and representations regarding the cost of the extended warranty [were] false, inaccurate or misleading” because Pine Belt retained “a substantial percentage” of the $3,400 warranty purchase price as profit for itself. Pittella also asserted “class action allegations” against Pine Belt on behalf of a proposed class of individuals who had purchased similar extended warranty plans from Pine Belt during the previous six years. The action was transferred to the Law Division. In lieu of filing an answer, Pine Belt moved for summary judgment to compel arbitration and to dismiss the putative class action.

On July 31, 2008, the trial court partially granted Pine Belt’s motion and entered an order compelling “binding arbitration” of Pittella’s individual claims against Pine Belt, but did not stay GMAC’s claims pending the arbitration. The court initially denied the motion to dismiss Pittella’s class action claim because it found the class action waiver clause unenforceable. However, Pine Belt moved for reconsideration and, on August 29, 2008, the Law *577 Division reversed itself, dismissing Pittella’s class action claim “with prejudice.”

Pittella and GMAC subsequently resolved their dispute in the pending litigation and, on March 5, 2009, executed a “stipulation of dismissal with prejudice.” Within forty-five days thereafter, on April 14, 2009, Pittella filed a notice of appeal from the July 31, 2008 and August 29, 2008 orders. Pine Belt moved to dismiss the appeal “as untimely,” arguing that Pittella was required to file her appeal within forty-five days of the respective orders. Although the entire motion is not in the record before us, there is no dispute that Pine Belt argued that the challenge to the order compelling arbitration had to have been filed within the required forty-five days from the date of the entry of the order appealed from, in September 2008. Pittella countered that the orders did not dispose of all issues as to all parties, and therefore were not final judgments appealable as of right.

The Appellate Division denied Pine Belt’s motion to dismiss the appeal as untimely and, in its subsequent opinion on the plenary appeal, again rejected the timeliness claim because Pine Belt raised it “without any substantive argument as to why [the panel] should not treat [the] prior order denying [Pine Belt’s] motion to dismiss the appeal as the law of the case.” 2 Consequently, the Appellate Division addressed the merits of Pittella’s appeal and reversed the orders compelling arbitration. As the decision of the Law Division dismissing the class action had been “predicated upon the arbitration of plaintiffs individual claims,” and “[h]aving determined that plaintiffs individual claims were not subject to arbitration,” the Appellate Division also reversed the dismissal of her putative class action.

*578 We granted Pine Belt’s petition for certification, GMAC v. Pittella, 203 N.J. 606, 5

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Bluebook (online)
17 A.3d 177, 205 N.J. 572, 2011 N.J. LEXIS 346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gmac-v-pittella-nj-2011.