In re A-1 Jersey Moving & Storage, Inc.

706 A.2d 752, 309 N.J. Super. 33, 1998 N.J. Super. LEXIS 68
CourtNew Jersey Superior Court Appellate Division
DecidedFebruary 23, 1998
StatusPublished
Cited by7 cases

This text of 706 A.2d 752 (In re A-1 Jersey Moving & Storage, Inc.) 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
In re A-1 Jersey Moving & Storage, Inc., 706 A.2d 752, 309 N.J. Super. 33, 1998 N.J. Super. LEXIS 68 (N.J. Ct. App. 1998).

Opinion

The opinion of the court was delivered by

KESTIN, J.A.D.

A-l Jersey Moving and Storage, Inc. (A-l) appeals from a December 12, 1996 order of the Board of Public Movers and Warehousemen (Board) revoking A-l’s license to engage in the business of public moving and storage, requiring A-l to reimburse specified amounts to certain shippers, and imposing a $22,500 fine. The Board’s order provided that, after one year, with proof of compliance, A-l could reapply for its license. A-l’s motions for a stay pending appeal were denied, first by the Board and then by us. For the reasons stated herein, we affirm the Board’s order.

On December 21, 1994, the Board served A-l with a letter which charged violations of law, for “engaging] in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise or false pretense,” N.J.S.A. 45:14D-7b, and for “repeatedly fail[ing] to discharge contractual obligations to any person contracting for moving or storage services,” N.J.S.A 45:14D-7e. The factual specifications alleged that A-l had “charged [nine named] consumers a premium for transit insurance when in fact you did not have this insurance.”

The letter offered A-l three choices for proceeding:

• avoiding] the initiation of formal disciplinary proceedings by signing [an acknowledgement of the allegations] and paying a civil penalty in the amount of $25,000; [or]
• waiving your] right to a hearing and submitting] a written statement or explanation to the Board. The Board will then consider this statement and render a final decision; [or]
[37]*37• requesting] a hearing in which case the matter will be scheduled, and this notice will serve as a complaint. At the hearing you may, either personally or with the assistance of an attorney, submit such testimony or other evidence as you may deem necessary in order for the Board to finally determine whether the unlawful acts set forth herein have been proven.

The letter went on to state:

You should also be aware that upon final evaluation of the evidence submitted at the hearing, the Board may, if unlawful acts are found to exist, assess civil penalties in an amount greater than that herein offered in settlement. Additionally, the Board may, if the facts are found to so warrant, enter an order requiring the restoration of any monies acquired by unlawful acts, the payment of costs and directing that you cease and desist from continued use of those acts found to be unlawful.

A-l’s president, Matthew DiBattista, Jr., chose the second option offered in the Board’s letter. He returned a signed certification form dated December 27, 1994, in which he “waive[d] any right ... to a hearing in this matter” and noted the “submi[ssion of] a written statement for the Board’s final consideration!;.]” Notwithstanding the latter indication, the record contains no separate statement by DiBattista or otherwise on A-l’s behalf. A handwritten entry at the bottom of the certification notes: “copy of change of policy.” In its subsequent final decision and order entered on February 13,1996, the Board stated:

[A-l] elected to submit a written explanation consisting of only a copy of an unsigned “Request for Change” form addressed to [its] insurance company. The form indicated that [A-l’s] policy period began September 14, 1993 and ended September 14,1994.

The Board went on to note that at the time of its inspection, Al’s spokesman

maintained that he was not required to send any premium monies collected from shippers to his insurance broker, Ross and Company, Inc., of Fairfield, New Jersey. Respondent stated that a flat rate of payment for insurance was mutually agreed upon by Respondent and Ross and Company. In addition, Respondent stated that it was permitted to keep any monies collected from shippers for transit insurance.

The decision continued:

At its meeting on January 17,1995, the Board considered Respondent’s explanation and the investigators [sic] certified report. The Board accepted Respondent’s representation that it was not required to forward the money collected in transit insurance premiums to Respondent’s insurance company. However, the Board [38]*38accepted the representation by Respondent’s insurance company that Respondent’s policy was canceled for failure to pay the total premium due effective April 5,1994 and was not reinstated. The Board found that Respondent failed to conform with statutory and regulatory obligations ... and thus it concluded that the violations occurred. However, upon review by the Board it was determined that the assessment of the maximum civil penalty of $2,500 for each violation against the nine separate consumers had actually been calculated based on ten consumers, therefore, the civil penalty was reduced accordingly.

Based on the foregoing findings and conclusions, A-l was ordered to pay a total civil penalty of $22,500 within ten days; to refund all insurance premiums collected to each of the nine shippers within fifteen days, and provide proof of repayment within twenty days; and to “cease and desist from engaging in any of the conduct found herein to be unlawful.”

After the final decision and order was entered, DiBattista inquired of the Board concerning the basis of the charges. A March 19, 1996 letter from the Board responded to DiBattista’s request for information, enclosing pertinent documents, complying with his request even though “the Board is under no mandate to do so, neither are we mandated to keep you informed of your insurance cancellations.” A letter from DiBattista, misdated December 28, 1994, acknowledged receipt of the documents, raised some questions, and closed with: “Again, I wish to point out that at no time was A-l Jersey aware of any cancellation. Please review this information, and advise of your findings.”

Having received no indication of A-l’s compliance with its February 13, 1996 order, the Board, on September 3, 1996, issued and served an order to show cause, returnable October 8, 1996, requiring A-l to establish why its license should not be suspended or revoked for failure to comply with the February 13,1996 order, and why additional sanctions including further assessment of civil penalties or costs should not be imposed. A-l was represented by counsel on the rescheduled return date, October 15,1996.

A-l’s non-compliance with the terms of the February 13 order was not in issue on the return of the order to show cause. In the face of DiBattista’s contention that he had only received the first and third pages of the three-page order of February 13, 1996, an [39]*39evidentiary hearing was held on the issue of service. The Board’s Executive Director, Diane Romano, relying on a Postal Service return receipt, testified that the order as mailed had been received on behalf of the addressee, A-l. Romano also testified that she had no reason to believe that an incomplete order had been sent. She noted that DiBattista’s subsequent inquiry not only contained references to matter on the allegedly missing page but also omitted to mention a missing page. DiBattista testified that he had not received page two of the order.

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Bluebook (online)
706 A.2d 752, 309 N.J. Super. 33, 1998 N.J. Super. LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-a-1-jersey-moving-storage-inc-njsuperctappdiv-1998.