HILTON APARTMENTS, LLC VS. KATIE L. GOITEIN (L-1193-17, MERCER COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedNovember 10, 2020
DocketA-0796-18T2
StatusUnpublished

This text of HILTON APARTMENTS, LLC VS. KATIE L. GOITEIN (L-1193-17, MERCER COUNTY AND STATEWIDE) (HILTON APARTMENTS, LLC VS. KATIE L. GOITEIN (L-1193-17, MERCER 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
HILTON APARTMENTS, LLC VS. KATIE L. GOITEIN (L-1193-17, MERCER 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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-0796-18T2

HILTON APARTMENTS, LLC,

Plaintiff-Respondent

v.

KATIE L. GOITEIN,

Defendant-Appellant

and

KATIE L. GOITEIN, on behalf of herself and all similarly situated past and present tenants of HILTON APARTMENTS, LLC,

Third-Party Plaintiff/ Cross-Respondent

Third-Party Defendant/ Cross-Appellant. _____________________________

Argued October 13, 2020 – Decided November 10, 2020 Before Judges Rothstadt and Mayer.

On appeal from the Superior Court of New Jersey, Law Division, Mercer County, Docket No. L-1193-17.

Roger C. Martindell argued the cause for appellant/ cross-respondent (Roger C. Martindell, and Quainton Law, PLLC, attorneys; Roger C. Martindell and Eden P. Quainton, on the briefs).

Andrew J. Schragger argued the cause for respondent/cross-appellant.

PER CURIAM

Defendant/third-party plaintiff Katie L. Goitein, on behalf of herself and

all similarly situated tenants of plaintiff/third-party defendant Hilton

Apartments, LLC, appeals from a September 26, 2018 order denying her motion

for reconsideration of a July 24, 2018 order and her cross-motion for attorney's

fees and costs. The July 24, 2018 order granted summary judgment to plaintiff

in the amount of $894.69, dismissed defendant's counterclaim and third-party

complaint, and denied defendant's request to compel and extend discovery.

Plaintiff cross-appeals from the same September 26, 2018 order denying its

motion for attorney's fees and costs. We affirm the entry of summary judgment

in favor of plaintiff on the issue of liability and dismissing defendant's

counterclaim and third-party complaint. However, we remand for the judge to

A-0796-18T2 2 enter an amended judgment as to the amount owed by defendant in accordance

with this opinion.1 We reverse and remand the order denying the parties'

requests for attorneys' fees and costs.

This matter arises from defendant's automatic renewal of a written lease

agreement (lease) on May 1, 2016 for rental of an apartment in a complex owned

by plaintiff. In accordance with the renewal, the lease term ran until April 30,

2017. However, on August 25, 2016, defendant gave written notice to plaintiff

that she was terminating the lease and vacating the apartment the next day.2

Pursuant to the lease, defendant was required to provide two months' written

notice to plaintiff of an intent to terminate the lease and vacate the apartment.

On August 25, 2016, plaintiff sent a letter to defendant describing two options

to resolve her early termination and breach of the lease. Defendant did not

respond to plaintiff's letter.

In August 2016, plaintiff sought a new tenant to rent defendant's

apartment. Plaintiff secured a new tenant, who entered into a written lease on

1 Defendant paid the judgment amount in full. However, her payment was "subject to and conditioned upon the outcome of the pending appeal and/or any proceeding that may take place on remand from [her] appeal." 2 According to plaintiff, defendant physically vacated the apartment on August 31, 2016. A-0796-18T2 3 October 12, 2016, and took possession of defendant's former apartment on

October 26, 2016.

Plaintiff then pursued damages from defendant for breach of the lease,

including lost rent, 3 costs associated with re-renting the apartment, and

attorney's fees and costs. Plaintiff applied defendant's security deposit ,

$1,605.80, to the amount it claimed due and owing as a result of defendant's

early termination and breach of the lease.

In addition to lost rent, plaintiff demanded defendant pay damages

associated with her breach of the lease. Plaintiff's damages included the

following expenses: painting, cleaning, installing a new lockset and toilet seat;

labor costs associated with the work done to the apartment after defendant

vacated; and an administrative fee. Plaintiff stated these additional damages ,

when coupled with the lost rent, totaled $3,629.54.

When defendant failed to pay the amount demanded, plaintiff filed a

lawsuit in the Special Civil Part. 4 In response, defendant filed an answer,

3 Plaintiff calculated lost rent in the amount of $2,256 ($1,128 for the months of September and October). 4 In the Special Civil Part complaint, plaintiff demanded the sum of $3,945.25, excluding attorney's fees, filing fee, and service fee.

A-0796-18T2 4 counterclaim, and third-party complaint. In her pleadings, defendant focused

on plaintiff's enforcement of Paragraph 13 of the lease, which she claimed was

an illegal liquidated damages clause. Defendant requested the matter be

transferred to the Law Division because her pleadings included claims for

violations of the New Jersey Consumer Fraud Act (CFA), N.J.S.A. 56:8-1 to

-224, the New Jersey Truth-in-Renting Act, N.J.S.A. 46:8-43 to -50, and the

New Jersey Security Deposit Law, N.J.S.A. 46:8-19 to -26, and other relief. In

her third-party complaint, defendant sought class certification on behalf of

current and former tenants of plaintiff's apartment complex, asserting the same

causes of action set forth in her counterclaim. By way of the third-party

pleading, defendant sought to enjoin plaintiff and affiliated apartment

complexes5 from enforcing Paragraph 13 of the lease as an improper penalty

clause.

The matter was transfer to the Law Division and defendant was allowed

to conduct discovery in support of class certification. After the close of

discovery, plaintiff moved for summary judgment. In opposing summary

5 The affiliated apartment complexes operated under different corporate designations and were located in other municipalities. A-0796-18T2 5 judgment, defendant argued Paragraph 13 was illegal and plaintiff improperly

sought liquidated damages as a penalty for her early termination of the lease.

In a July 24, 2018 order, incorporating reasons placed on the record on

June 22, 2018, the motion judge granted summary judgment to plaintiff and

dismissed defendant's counterclaim and third-party class action complaint. The

judge found plaintiff sought to recover actual damages rather than damages

pursuant to Paragraph 13 of the lease.6

Regarding the third-party class action complaint, the judge held there was

"no class, discovery [was] over, and bare conclusions without factual support

[could not] defeat a motion for summary judgment." The judge deemed

defendant's class action suit moot because in "the interest of justice and in

preserving judicial resources, courts such as this one do not attempt to resolve

legal issues in the abstract." Because Paragraph 13 was modified before

6 While Paragraph 13 was included in defendant's May 2016 lease renewal, plaintiff's counsel notified defense counsel that plaintiff stopped enforcing Paragraph 13 in November 2015.

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HILTON APARTMENTS, LLC VS. KATIE L. GOITEIN (L-1193-17, MERCER COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/hilton-apartments-llc-vs-katie-l-goitein-l-1193-17-mercer-county-and-njsuperctappdiv-2020.