Johnson MacHinery Co., Inc. v. Manville Sales Corp.

590 A.2d 1206, 248 N.J. Super. 285
CourtNew Jersey Superior Court Appellate Division
DecidedMay 15, 1991
StatusPublished
Cited by25 cases

This text of 590 A.2d 1206 (Johnson MacHinery Co., Inc. v. Manville Sales Corp.) 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
Johnson MacHinery Co., Inc. v. Manville Sales Corp., 590 A.2d 1206, 248 N.J. Super. 285 (N.J. Ct. App. 1991).

Opinion

248 N.J. Super. 285 (1991)
590 A.2d 1206

JOHNSON MACHINERY COMPANY, INC., A NEW JERSEY CORPORATION, PLAINTIFF-APPELLANT,
v.
MANVILLE SALES CORPORATION, A DELAWARE CORPORATION, DEFENDANT-RESPONDENT, AND TICOR TITLE INSURANCE COMPANY, A CALIFORNIA CORPORATION, DEFENDANT.

Superior Court of New Jersey, Appellate Division.

Argued October 11, 1990.
Decided May 15, 1991.

*288 Before Judges KING, LONG and STERN.

William C. Slattery argued the cause for appellant (Norris, McLaughlin & Marcus, attorneys; William C. Slattery, of counsel and on the brief).

Kenneth H. Mack argued the cause for respondent (Picco Mack Kennedy Jaffe Perrella & Yoskin, attorneys; Kenneth H. Mack, of counsel; Burton J. Jaffe, on the brief).

Paul H. Schneider, Deputy Attorney General, argued the cause for amicus curiae, New Jersey Department of Environmental Protection (Robert J. Del Tufo, Attorney General, attorney; Michael R. Clancy, Assistant Attorney General, of counsel; Paul H. Schneider, on the brief).

The opinion of the court was delivered by LONG, J.A.D.

In June 1989, plaintiff Johnson Machinery Company (Johnson) instituted this action against defendants Manville Sales Corporation (Manville) and Ticor Title Insurance Company (Ticor) *289 in the Superior Court, Chancery Division, to rescind a contract pursuant to which Manville had agreed to convey approximately 100 acres of land and improvements to Johnson; to obtain a return of the deposit of $2.2 million Johnson delivered to Ticor (the escrow agent) and for damages against Manville for fraud and negligent misrepresentation. Manville answered the amended complaint and counterclaimed for specific performance. The claims against Ticor were dismissed by consent.

In September 1989, Johnson moved for partial summary judgment pursuant to R. 4:46-2 on the fourth count of its amended complaint which alleged that it was entitled to void the contract because of Manville's noncompliance with the provisions of the Sanitary Landfill Facility Closure and Contingency Fund Act (Closure Act), N.J.S.A. 13:1E-100 to -116. Manville opposed the motion, claiming that the Closure Act does not apply to a sole source landfill (one which operates only as the depository of the waste its own commercial operation had generated) and that, in any event, genuine issues of material fact remained to be resolved, thus precluding summary judgment. The trial judge denied summary judgment on the grounds that the agreement was ambiguous as to the parties' intent and that a "quasi-factual" question remained as to "whether any portion of the site, admittedly designated by Manville as an inactive landfill, lies within the boundaries of the agreed-upon Sale Property." He also held that the "application of the Closure Act to the instant matter would not comport with the respective legislative intent, nor that Act's statutory scheme."

By leave granted, Johnson appeals claiming that the trial judge erred in denying summary judgment because the Closure Act applies to the contract property; the notice provisions of the Act (N.J.S.A. 13:1E-116) were violated by Manville; and the violation entitled it to void the agreement.

*290 At issue here is Section 116 of the Closure Act which provides:

a. No person shall contract to sell any land which has been utilized as a sanitary landfill facility at any time prior to the effective date of this supplementary act unless the contract of sale for the land shall state the fact and the period of time that the land was so utilized.
Any prospective purchaser of such land may obtain from the department, upon written request therefor, a history of the compliance by the facility with all applicable statutes, rules and regulations administered by the department.
b. Any contract made in violation of this section is voidable.[1]

We hold that the term "sanitary landfill facility" in the Closure Act includes a sole source landfill which operates only as the depository of the waste its own commercial operation has generated. We also hold that the Closure Act means exactly what it says: where sale property has been used as a sanitary landfill facility, the seller must include in the contract of sale a statement that the property has been so used and for what period of time. Failure to include this information will result in the contract being void at the sole discretion of the buyer. No equitable defenses to the voiding of the contract are recognized.

I

Manville is the owner of approximately 185 acres of real property and improvements located in the Borough of Manville, *291 Somerset County, New Jersey. The property was part of an asbestos-using manufacturing facility operated by Manville from about 1912 to 1985. In 1985, Manville announced its decision to cease manufacturing at the property. Because Manville was an "industrial establishment" within the meaning of N.J.S.A. 13:1K-8(f), the closing of the plant triggered its filing obligation under the New Jersey Environmental Cleanup Responsibility Act, N.J.S.A. 13:1K-6 to -13 (ECRA). The first of these filings was Manville's ECRA Site Evaluation Submission (SES) of September 9, 1985 which described the history of the manufacture, use, disposal, and handling of hazardous substances and wastes at the property. This filing, which indicated that there are approximately 2.1 million square feet of improvements on the land, included an appendix (Appendix 9) which described the location of hazardous substances on the property, and a map (# X-5320-2) which revealed an "inactive landfill" on several parts of the property. The landfill depicted on this map was, according to Manville, composed of "solid industrial wastes such as: lime, asbestos, asphalt roofing, transite pipe, etc." Appendix 10 to the SES described Manville's landfill operations:

A company-owned solid waste landfill, 198 acres in area, is located along Dukes Parkway, approximately one-half mile from the plant. The landfill has been used for the disposal of manufacturing waste from the plant since the early 50's....
....
Prior to the early 50's, manufacturing waste was deposited in landfill areas, now inactive, located in the northern section of the main plant site. This area is indicated on Print X-5320-2. [Emphasis added].

Appendix 15 to the SES which set forth Manville's plan for decontamination of its buildings and equipment stated:

As indicated on Print X-5320-2, a portion of the Manville Plant was used as an industrial landfill prior to the purchase of the land along Dukes Parkway, and its subsequent use for landfill purposes in the 1950's. The inactive landfill at the site of the plant contains asbestos and other materials which were used in production operations at that time. [Emphasis added].

The SES was signed and certified by Manville's Plant Engineer.

In July 1986, Manville filed a Sampling Plan with the New Jersey Department of Environmental Protection (DEP) as required *292 by N.J.A.C. 7:26B-3.2(c)11. The Sampling Plan was prepared by Manville's environmental consultant, Elson T. Killam Associates, Inc. (Killam) and provided:

Prior to the early 50's, manufacturing waste products were deposited in an on-site landfill area which is now inactive.

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Bluebook (online)
590 A.2d 1206, 248 N.J. Super. 285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-machinery-co-inc-v-manville-sales-corp-njsuperctappdiv-1991.