Jersey Central Power & Light Co. v. Melcar Utility Co.

59 A.3d 561, 212 N.J. 576
CourtSupreme Court of New Jersey
DecidedJanuary 24, 2013
StatusPublished
Cited by149 cases

This text of 59 A.3d 561 (Jersey Central Power & Light Co. v. Melcar Utility Co.) 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
Jersey Central Power & Light Co. v. Melcar Utility Co., 59 A.3d 561, 212 N.J. 576 (N.J. 2013).

Opinion

PER CURIAM.

N.J.S.A. 48:2-80(d), a provision appearing in the Underground Facility Protection Act (UFPA), N.J.S.A. 48:2-73 to -91, compels parties seeking monetary relief for damages to underground facilities to submit such causes of action, if valued under a specified amount, to the Office of Dispute Settlement (ODS) within the Office of the Public Defender for unspecified “dispute resolution.” On its face, the provision fails to preserve a party’s ability to have the property damage dispute remain within or return to a judicial setting. It was applied in this matter to compel the dismissal of a Superior Court action for property damage to underground facilities covered by the UFPA.

The essential issue is whether N.J.S.A. 48:2-80(d), as written, impinges on the constitutional right to a jury trial for property damages. We conclude that it does and therefore reverse the judgment that dismissed the Superior Court action for want of jurisdiction.

I.

This case comes before us with the following factual and procedural background. Plaintiff Jersey Central Power & Light Company (JCP&L), a public utility subject to the jurisdiction and authority of the Board of Public Utilities under N.J.S.A. 48:2-13(a), generates and distributes electric power throughout various areas of New Jersey. When feasible, JCP&L, like many utilities, places facilities such as transmission lines and stations below ground where they are not visible. Underground placement pro[582]*582tects against storm-related damage, thereby preventing interruptions in service to customers, and provides aesthetic benefits. However, underground placement also poses hazards to those who may be unaware of the presence of such underground facilities and those who may not take sufficient steps to prevent damage to the facilities of which they are aware.

Recognizing the potential hazards posed by such underground facilities, the Legislature enacted the UFPA to protect both the public from the risk of harm and the utility companies from unnecessary losses. The statute creates a “One-Call Damage Prevention System” (System), which is designed to serve as a central repository for the receipt of notices of intent to excavate, from which the notices are forwarded to the appropriate utility. N.J.S.A. 48:2-76. The UFPA requires that such notices of intent be given to the System not less than three business days prior to the commencement of any excavation or demolition. N.J.S.A. 48:2-82. The UFPA also requires that, within three days of receipt of a notice of intent, an operator of an underground facility “[m]ark, stake, locate or otherwise provide the position and number of its underground facilities which may be affected by a planned excavation or demolition.” N.J.S.A 48:2-80(a)(2).

The UFPA carries significant penalties for those who disregard its mandates. An operator or excavator who violates the statute is liable for a civil penalty, imposed by the Board of Public Utilities, of not less than $1,000 and not greater than $2,500 for each day the violation continues, with a maximum of $25,000 in the case of a series of related violations. N.J.S.A. 48:2-88. If the violation relates to a natural gas or hazardous liquid underground pipeline or distribution facility, the penalty increases to not more than $100,000 per day, or $1,000,000 for any related series of violations. N.J.S.A. 48:2-86(c). N.J.S.A. 48:2-86(d) provides for the pursuit of civil penalties and expressly authorizes the simultaneous pursuit of administrative and judicial remedies for the damages incurred to underground facilities. See also N.J.SA 48:2-88(b) (“Nothing in this act shall affect any civil remedy for damage to an opera[583]*583tor’s underground facility or for actual damage to any person’s property.”). Further, a knowing violation of the statute may constitute either a disorderly persons offense or a third-degree crime, depending on the extent of the damage caused by the violation. N.J.S.A. 48:2-87.

Against that backdrop, subsection (d) of N.J.S.A. 48:2-80 draws our specific attention. The Legislature added this subsection in 2005. L. 2005, c. 22, § 2. The subsection provides that if an operator of an underground facility, upon receipt of notice of a proposed excavation, does not comply with its obligation to mark or locate the number and position of its underground facilities, the underground facility operator shall be liable to the excavator “for any costs, labor, parts, equipment and personnel downtime” that an excavator may incur as a result of damage to the excavator’s equipment. Thus, subsection (d) imposes damages on the operator of underground facilities, to be paid to excavators, for a failure to comply with the marking and locating duty that the UFPA imposes.

In addition, and most specifically pertinent to our analysis, subsection (d) also imposes liability on the excavator for any negligent damage to an operator’s underground facility. Mirroring the language addressing loss to the excavator, the provision makes the excavator “liable for any costs, labor, parts, equipment and personnel downtime [ ] incurred by the underground facilities operator.” The underground operator’s property damage plainly is included within the ambit of losses addressed by subsection (d). The problem with subsection (d)’s inclusion of losses suffered by an underground facility operator due to an excavator’s negligence is the method that the Legislature has prescribed for the resolution of such disputes. Subsection (d) concludes with the following directory language:

Any dispute arising from the provisions of this subsection, where the claim is less than $25,000, shall be subject to an alternative dispute resolution process as established within the Office of Dispute Settlement in the Office of the Public Defender. Nothing in this act shall be construed to discourage parties from pursuing alternative dispute resolution processes for an amount greater than [584]*584$25,000. The parties may by mutual agreement designate another alternative dispute resolution association for all matters.

The instant matter concerns underground electrical lines owned by JCP&L in the vicinity of Robin Street in Rockaway, New Jersey. In September 2007, defendant Melear Utility Company (Melear) performed excavation work in the area of Robin Street for the purpose of installing underground cables for Verizon of New Jersey (Verizon). During the course of that excavation work, JCP&L’s underground electrical lines were damaged. In January 2009, JCP&L filed a complaint against Melear and Verizon in the Special Civil Part of the Law Division, seeking reimbursement for costs incurred in repairing those electrical lines. Melear filed a third-party complaint against Utiliquest, an entity contracted by JCP & L to mark the location of JCP&L’s underground electrical lines, alleging that Utiliquest failed to properly mark the lines’ location and, thus, was responsible for JCP&L’s loss.

On the day set for trial before the Special Civil Part, Melcar’s attorney made an oral motion to dismiss the matter for lack of jurisdiction, citing N.J.S.A. 48:2-80(d). Melear argued that under subsection (d) the matter had to be heard by the ODS. JCP&L objected to the motion on procedural, and substantive jurisdictional, grounds. The trial court adjourned the ease to afford JCP&L’s attorney an opportunity to prepare a response to the motion.

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Cite This Page — Counsel Stack

Bluebook (online)
59 A.3d 561, 212 N.J. 576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jersey-central-power-light-co-v-melcar-utility-co-nj-2013.