J & M Land Co. v. First Union National Bank

766 A.2d 1110, 166 N.J. 493, 2001 N.J. LEXIS 176
CourtSupreme Court of New Jersey
DecidedFebruary 27, 2001
StatusPublished
Cited by23 cases

This text of 766 A.2d 1110 (J & M Land Co. v. First Union National Bank) 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
J & M Land Co. v. First Union National Bank, 766 A.2d 1110, 166 N.J. 493, 2001 N.J. LEXIS 176 (N.J. 2001).

Opinion

The opinion of the Court was delivered by

COLEMAN, J.

This is an adverse possession case in which the Court must determine which of several statutes of limitations governs the claim. More broadly, this appeal requires us to reconcile the meaning of N.J.S.A. 2A:14-6 and -7 with N.J.S.A. 2A: 14-30 and N.J.S.A 2A:14-31 and to reconcile N.J.S.A 2A:14-6 and -7 with N.J.S.A. 2A:35-1. We hold that title does not vest in an adverse *497 possessor until the passage of thirty or sixty years and that neither the adverse possessor nor the owner of record determines which statute controls. .

I.

First Union National Bank (First Union) owns a large tract of marshland in Egg Harbor Township, New Jersey, consisting of approximately 550 feet of frontage along Northfield-Margate Boulevard. J & M Land Company (J & M) owns an adjoining tract of land consisting of approximately 300 feet of frontage along the Boulevard. In 1956, J & M’s predecessor in title, William Bater, leased three sites to R.C. Maxwell Company (Maxwell) for the purpose of erecting and maintaining billboards. Unknown to J & M, Maxwell or First Union, one of the three sites was located on First Union’s property.

Shortly after obtaining the lease, Maxwell unknowingly erected two billboards on First Union’s property in 1956, one facing eastbound traffic and the other facing westbound traffic. The two billboards have continued to be located on First Union’s property, and Maxwell has paid rent to J & M and its predecessors since 1956. First Union, meanwhile, has paid all taxes on the property. Each billboard is illuminated by electric lights. Maxwell maintains the two billboards and the land immediately adjoining them. Except for the billboards, the remainder of the First Union and J & M properties is uncultivated marshland.

In 1996, Egg Harbor’s tax assessor increased First Union’s tax assessment based on the presence of billboards on its property. Before receiving notification of that tax increase, First Union did not know the billboards were located on its property. A land survey disclosed that the two billboards are located on First Union’s property 200 feet from the boundary line between the First Union and J & M properties. First Union demanded that J & M turn over the rents it had received from Maxwell for the billboards. J & M responded to the demand for an accounting with the present litigation.

*498 In its complaint, J & M sought a declaratory judgment that it had acquired a “prescriptive easement” over the area where the billboards are located and the adjacent land used for maintenance. Alternatively, J & M sought title by adverse possession to those areas. First Union counterclaimed for a declaration that J & M has no legal interest in the property and for an accounting for all rents received from Maxwell.

Both parties moved for summary judgment. The trial court concluded that the legal requirements for a prescriptive easement are the same as those to obtain title by adverse possession, relying on Mannillo v. Gorski, 54 N.J. 378, 386, 255 A.2d 258 (1969), and Baker v. Normanoch Ass’n, Inc., 25 N.J. 407, 419, 136 A.2d 645 (1957). Thus the trial court examined the undisputed evidence and the controlling law and determined that J & M had not established its claim and that First Union had clear title to the property. The trial court made two findings: (1) J & M’s adverse possession claim was governed by the sixty-year limitations period for adverse possession claims to “uncultivated tracts,” and therefore J & M did not have title because the duration of its possession had been only thirty-nine years; and (2) J & M’s possession was not “notorious” because the boundary line between the two properties was not visible to the naked eye. After rejecting all of J & M’s claims, the trial court held that First Union was entitled to rents only for the period subsequent to its demand letter to J & M.

Both parties appealed. J & M appealed the court’s rejection of its adverse possession claim, arguing that it was entitled to title or a prescriptive easement after twenty years based on N.J.S.A. 2A:14-6. First Union appealed from the limitation of its damages to rents subsequent to the demand letter. The Appellate Division in a published opinion affirmed the trial court’s application of the sixty-year statute, thus “rejecting J & M’s claim to the part of First Union’s tract on which the billboards are located.” J & M Land Co. v. First Union Nat’l Bank, 326 N.J.Super. 591, 595-96, 742 A.2d 583 (App.Div.1999). The court stated that “[t]he applica *499 ble limitations period ... is ‘a question of substantive laV which is controlled by the factual basis of the adverse possession claim.” J & M, supra, 326 N.J.Super. at 596-97, 742 A.2d 583 (quoting Braue v. Fleck, 23 N.J. 1, 18, 127 A.2d 1 (1956)).

The Appellate Division rejected J & M’s claim that its use of the disputed land qualified as a prescriptive easement after twenty years. The court determined that J & M’s use of First Union’s land was possessory rather than a limited use or enjoyment of the land, as is the case with easements. Based on its conclusion that J & M’s claim was governed by the sixty-year adverse possession statute, the Appellate Division declined to address the trial court’s alternative holding that J & M’s possession was not notorious. We granted J & M’s petition for certification. 163 N.J. 395, 749 A.2d 369 (2000).

II.

J & M contends that in an adverse possession action the party asserting the rights of an adverse possessor, not the owner of record, has the right to choose which statute of limitations controls. First Union, on the other hand, asserts that the owner of record who is defending against the adverse possession claim is the party entitled to choose which statute of limitations controls. Neither party contends that the time period required for vesting title based on adverse possession should be different for a prescriptive easement.

Resolution of what sounds like a simple proposition requires a highly complex analysis. We begin with the four statutes of limitations referenced by the parties. N.J.S.A. 2A:14-6 provides “[e]very person having any right or title of entry into real estate shall make such entry within 20 years next after the accrual of such right or title of entry, or be barred therefrom thereafter.” N.J.S.A.

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Bluebook (online)
766 A.2d 1110, 166 N.J. 493, 2001 N.J. LEXIS 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-m-land-co-v-first-union-national-bank-nj-2001.