Jones v. Sportelli

399 A.2d 1047, 166 N.J. Super. 383
CourtNew Jersey Superior Court Appellate Division
DecidedFebruary 14, 1979
StatusPublished
Cited by20 cases

This text of 399 A.2d 1047 (Jones v. Sportelli) 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
Jones v. Sportelli, 399 A.2d 1047, 166 N.J. Super. 383 (N.J. Ct. App. 1979).

Opinion

166 N.J. Super. 383 (1979)
399 A.2d 1047

TERESE JONES AND DAVID JONES, PLAINTIFFS,
v.
NICHOLAS SPORTELLI AND JULIUS SCHMID, INC., DEFENDANTS.

Superior Court of New Jersey, Law Division.

Decided February 14, 1979.

*384 Mr. Carl Valore, Jr., for plaintiffs (Messrs. Valore, McAllister, Aron & Westmoreland, P.C., attorneys).

Mr. Burchard V. Martin for defendant Sportelli (Messrs. Martin, Crawshaw & Mayfield, P.C., attorneys).

Mr. Louis Niedelman for defendant Julius Schmid, Inc. (Messrs. Cooper, Perskie, Katzman, April, Niedelman & Wagenheim, P.C. attorneys).

*385 STEEDLE, J.S.C.

This is a personal injury action in which unresolved issues regarding the construction and interpretation of the Consumer Fraud Act, N.J.S.A. 56:8-1 et seq. are raised.

Terese Jones and her husband David, plaintiffs herein, seek damages for injuries sustained as a result of Mrs. Jones' use of a Saf-T-Coil intrauterine device manufactured by defendant Julius Schmid, Inc., correctly known as Schmid Laboratories, Inc., and inserted by defendant Dr. Nicholas Sportelli. Plaintiffs allege that the IUD caused the perforation of Mrs. Jones' uterus, that Mrs. Jones became pregnant while she suffered this injury, and consequently, necessarily underwent surgery for the removal of the IUD as well as an abortion. In the fourth count of their complaint plaintiffs claim, among other things, that defendant Schmid violated the provisions of the Consumer Fraud Act. More specifically, plaintiffs allege that said defendant engaged in practices violative of the act in that, with respect to its marketing of the Saf-T-Coil IUD, it

* * * [m]ade unconscionable and fraudulent statements in its advertising and information distributed to contraceptive consumers, omitted to warn as to the risks of perforation, failed to warn as to the use of a contraceptive foam during the first months after insertion [of the IUD] and during the most fertile cycle [, and additionally,] misrepresented the [IUD's] effectiveness. * * *

For this violation plaintiffs contend they are statutorily entitled to treble compensatory damages, including but not limited to treble recompense for medical expenses incurred, pain and suffering and loss of consortium.

Defendant moves for summary judgment disposition of the fourth count. For purposes of its motion, defendant assumes that the facts of this case are as pleaded by plaintiffs, but argues that as a matter of law the proscriptions of the act are inapplicable to the sale of an IUD, principally because such an item is a prescription-legend product not directly available to members of the general public and obtainable only by, on *386 or through the order of a licensed physician. Moreover, defendant claims that even if the act is applicable, the award of treble damages is statutorily limited to triple the actual cost of the IUD and cannot legally be extended to include three fold recovery of all compensatory damages sought.

Accordingly, the disposition of this motion requires that this court now decide two questions of first impression. This court must first determine whether the sale of an IUD is a transaction within the purview of the act, and if necessary, must then define the extent to which the act authorizes treble damages.

The act makes unlawful the following conduct:

The act, use or employment of any person of any unconscionable commercial practice, deception, fraud, false pretense, false promise, misrepresentation, or the knowing, concealment, suppression, or omission of any material fact with intent that others rely upon such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise * * * is declared to be an unlawful practice. * * * [N.J.S.A. 56:8-2]

The above provision must be read in conjunction with the definitional section of the act, which defines the following terms:

(a) The term "advertisement" shall include the attempt directly or indirectly by publication, dissemination, solicitation, indorsement or circulation or in any other way to induce directly or indirectly any person to enter or not enter into any obligation or acquire any title or interest in any merchandise or to increase the consumption thereof or to make any loan;

* * * * * * * *

(c) The term "merchandise" shall include any objects, wares, goods, commodities, services or anything offered, directly or indirectly to the public for sale;

(d) The term "person" as used in this act shall include any natural person or his legal representative, partnership, corporation, company, trust, business entity or association * * *;

(e) The term "sale" shall include any sale, rental or distribution, offer for sale, rental or distribution or attempt directly or indirectly to sell, rent or distribute. [N.J.S.A. 56:8-1 (a), (c), (d), (e) (emphasis denotes amendment)] *387 Since defendant assumes that the facts are as pleaded by plaintiffs, this court assumes that defendant did engage in the type of conduct violative of N.J.S.A. 56:8-2, and in view of the broad definitions attributed to the terms "merchandise" and "sale," it cannot be credibly argued that defendant's sale of an IUD upon a physician's order is not within the scope of the act as literally construed. However, the paramount guiding factor in the interpretation of any statute is legislative intent, not literal construction, and if the Legislature of this State did not intend that the act should apply to the concerned sale, the fact that the sale is within the scope of the act literally construed is not by itself determinative of the ultimate issue. See Union Cty. Bd. of Chosen Freeholders v. Union Cty. Park Comm'n, 41 N.J. 333, 337 (1964); Board of Ed. v. Hoek, 38 N.J. 213, 231 (1962); Hoffman v. Hock, 8 N.J. 397, 408 (1952). The scope of the act must effectuate the legislative design ascertained from the language of the statute or inferred on grounds of policy and reasonableness. See Harvey v. Board of Chosen Freeholders, 30 N.J. 381, 392 (1959).

While the courts of this State have not yet determined whether the sale of an IUD is within the act's purview, they did inquire into the applicability of the act to transactions of a different nature. In Neveroski v. Blair, 141 N.J. Super. 365 (App. Div. 1976) (per curiam), the court held that a real estate brokerage firm which deliberately engaged in the type of conduct violative of the act was not thereunder liable to vendees of residential property because the sale of real estate was not within the act's scope, and in support of its decision, the court emphasized the Legislature's deletion of the term "real estate" from a proposed amendment expanding the statutory definition of "merchandise."[1]Id. at 377-379. *388 However, of particular import is the following general observation of the court:

* * * [I]t is our considered opinion that the entire thrust of the Consumer Fraud Act is pointed to products and services sold to consumers in the popular sense. Such consumers purchase products from retail sellers of merchandise consisting of personal [sic] property of all kinds or contract for services of various types brought to their attention by advertising or other sales techniques.

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Bluebook (online)
399 A.2d 1047, 166 N.J. Super. 383, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-sportelli-njsuperctappdiv-1979.