Keith Hacker v. Carlos Jaime-Valdez

New Jersey Superior Court Appellate Division·Decided June 13, 2025·No. A-2886-22·Published

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-2886-22

KEITH HACKER,

Plaintiff-Respondent, APPROVED FOR PUBLICATION

v. June 13, 2025 APPELLATE DIVISION

CARLOS JAIME-VALDEZ,

Defendant-Appellant, and

MICHELE DONATO and PROGRESSIVE INSURANCE COMPANY,

Defendants.

Argued December 16, 2024 – Decided June 13, 2025 Before Judges Gummer, Berdote Byrne, and Jacobs.

On appeal from the Superior Court of New Jersey, Law Division, Ocean County, Docket No. L-3112-19.

Robert P. Stein and Daniel J. Pomeroy argued the cause for appellant (Goldberg, Miller and Rubin, PC, and Pomeroy Heller & Ley, LLC, attorneys; Thomas J. Giardina, on the briefs).

John D. Borbi argued the cause for respondent (Borbi, Clancy & Patrizi, attorneys; John D. Borbi, on the brief).

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

In this automobile-accident case, defendant Carlos Jaime-Valdez appeals from an order denying defendant's motion to mold the jury's verdict or, in the alternative, for a new trial or remittitur. Because the trial court erred in not molding the verdict, we reverse the order and remand for proceedings consistent with this opinion.

I.

On December 16, 2019, plaintiff Keith Hacker filed a complaint in the Law Division seeking damages for injuries he allegedly had sustained in a motor-vehicle accident that took place on January 27, 2018. He named as defendants Michele Donato, whom he alleged was the owner of the vehicle that had collided with his vehicle; Jaime-Valdez, whom plaintiff alleged was acting as Donato's agent and operating her vehicle when it collided with plaintiff's car; and Progressive Insurance Company, which, according to

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plaintiff, had insured him under an automobile insurance policy that provided underinsured-motorist coverage. 1 Defendant answered the complaint and participated in discovery until May 14, 2021, when he filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code. The parties did not include defendant's bankruptcy petition in their appellate appendices. Defendant represents in his merits brief that in his petition he listed plaintiff as a creditor and identified this action. Plaintiff does not dispute that representation.

On July 7, 2021, defendant moved in the Law Division for an order staying plaintiff's lawsuit. In a certification he submitted in support of the motion, defense counsel represented defendant had recently filed for bankruptcy in the United States Bankruptcy Court, District of New Jersey. Defense counsel stated defendant was seeking a stay of the Law Division matter, "pending the outcome of his bankruptcy proceeding."

Plaintiff submitted his counsel's letter and certification in opposition to the motion. In the letter, plaintiff's counsel represented to the court plaintiff

1 Donato and Progressive did not participate in the trial and have not participated in this appeal. In a letter to this court, counsel for Progressive referenced a dismissal prior to trial, but the parties did not include a copy of that order in the appellate record. Given Donato's and Progressive's non - participation in this appeal, we refer to Jaime-Valdez as defendant for ease of reading.

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would "immediately be filing a Motion to Lift the Automatic Stay to the Extent of Insurance Coverage in the U.S. Bankruptcy Court." In her certification, plaintiff's counsel stated "State Farm" and "GEICO" had each extended $100,000 in liability coverage and excess liability coverage, respectively, to defendant in connection with plaintiff's claim regarding the 2018 accident. Counsel represented plaintiff was opposing the stay motion because "[p]laintiff is seeking $200,000 to resolve this claim and nothing above the liability and excess coverage afforded [defendant;] therefore, resolution of the [s]tate civil matter will not involve property of the bankruptcy case." Plaintiff's counsel also stated in the certification that plaintiff had "filed an Offer to Take Judgment in the amount of the coverage available." Plaintiff had filed, on the same day he filed his opposition to the stay motion, an offer to take judgment against defendant in the amount of $200,000, defendant's available insurance policy limits. Plaintiff's counsel asked the court to "deny the application for a [s]tay as it applies to this [s]tate [c]ourt action and permit[] [p]laintiff to proceed with the litigation up to the limits of the available coverage."

After opposing defendant's stay motion in the Law Division, plaintiff moved in the bankruptcy court for relief from the automatic stay that court had entered. Notably, plaintiff did not file an adversary proceeding to except from

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the bankruptcy case defendant's purported debt to him under 11 U.S.C. § 523(a)(9) as a debt "for . . . personal injury caused by the debtor's operation of a motor vehicle . . . if such operation was unlawful because the debtor was intoxicated . . . ." Plaintiff also did not move for a declaration defendant's purported debt to him was nondischargeable in bankruptcy, to limit his recovery in the Law Division case to nondischargeable debts, or to lift the automatic stay in the bankruptcy case to permit him to pursue any nondischargeable debt or any relief potentially available under Rule 4:58-2(a). Instead, he sought an order modifying the automatic stay expressly to permit him to pursue defendant's $200,000 in insurance coverage.

In a certification filed in support of plaintiff's motion, plaintiff's counsel stated "State Farm" had agreed to provide liability insurance coverage to defendant in the amount of $100,000 per person and "GEICO" had agreed to provide the same amount in excess liability coverage. Plaintiff's counsel advised the court about defendant's Law Division motion for a stay and plaintiff's offer to take judgment in the amount of $200,000. Plaintiff's counsel represented to the court plaintiff was moving "to remove this matter from the automatic [s]tay up to the liability and excess liability policy limits in effect at the time of the accident, which total $200,000." (Emphasis added). Plaintiff's counsel also represented: "Plaintiff will accept the policy limits to

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resolve the matter[;] therefore, resolution of the [s]tate [c]ourt civil matter will not involve the property of the bankruptcy [sic]." Plaintiff's counsel asked the court to lift the automatic stay "as it applies to the underlying [s]tate [c]ourt action and permit [the] moving party to proceed with litigation currently pending in the Superior Court . . . to the limits of the available liability and excess liability insurance coverage." (Emphasis added). Plaintiff submitted with his motion a proposed form of order, granting the motion and vacating the automatic stay to permit plaintiff to "resume and prosecute" the Law Division action "to pursue [his] rights . . . [t]o the limits of . . . [d]efendant's available liability insurance coverage for the automobile accident of January 27, 2018 . . . ." (Emphasis added).

On August 17, 2021, the bankruptcy court conducted a hearing regarding plaintiff's motion and issued an order the next day granting the motion. Using the same language plaintiff had requested in his proposed form of order, the court granted plaintiff his requested relief from the automatic stay and permitted him to resume his prosecution of the Law Division action to pursue his rights "[t]o the limits of . . . [d]efendant's available liability insurance coverage for the automobile accident of January 27, 2018 . . . ." (Emphasis added). Plaintiff submitted a copy of that order to the Law Division in further

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