L. Feriozzi Concrete Co. v. Crda

776 A.2d 254, 342 N.J. Super. 237
CourtNew Jersey Superior Court Appellate Division
DecidedJuly 12, 2001
StatusPublished
Cited by13 cases

This text of 776 A.2d 254 (L. Feriozzi Concrete Co. v. Crda) 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
L. Feriozzi Concrete Co. v. Crda, 776 A.2d 254, 342 N.J. Super. 237 (N.J. Ct. App. 2001).

Opinion

776 A.2d 254 (2001)
342 N.J. Super. 237

L. FERIOZZI CONCRETE COMPANY, INC., a New Jersey Corporation, and Concetta Feriozzi, Plaintiffs-Respondents,
v.
CASINO REINVESTMENT DEVELOPMENT AUTHORITY and James B. Kennedy, Executive Director of the Casino Reinvestment Development Authority, Defendants-Appellants.

Superior Court of New Jersey, Appellate Division.

Argued June 6, 2001.
Decided July 12, 2001.

*256 Patrick J. McAuley, Roseland, argued the cause for appellants (Connell Foley, attorneys; Mr. McAuley, of counsel; Mr. McAuley, Thomas A. Sparno and Walter R. Krzastek, on the brief).

Salvatore Perillo, Atlantic City, argued the cause for respondents (Perskie, Nehmad & Perillo, attorneys; Mr. Perillo and Steven J. Brog, on the brief).

Jessica A. Roth, Newark, argued the cause for amicus curiae NAACP Legal Defense & Educational Fund, Inc., (Gibbons, Del Deo, Dolan, Griffinger & Vecchione, attorneys; John J. Gibbons, Lawrence S. Lustberg and Jessica A. Roth, on the brief).

Lowenstein Sandler, attorneys for amicus curiae Utility and Transportation Contractors Association of New Jersey, Inc. (Steven E. Brawer, Roseland, of counsel; Cecelia E. Haney, Trenton, and Adrienne L. Isacoff, on the brief).

Before Judges WALLACE, JR., CARCHMAN and LINTNER.

*255 The opinion of the court was delivered by CARCHMAN, J.A.D.

The Casino Reinvestment Development Authority (CRDA or Authority) and its executive director, James B. Kennedy (collectively, defendants), appeal from a Law Division judgment sustaining plaintiffs' L. Feriozzi Concrete Company's and Concetta Feriozzi's (plaintiffs) equal protection challenge to a minority business enterprise (MBE) set-aside subcontracting requirement in a prime contract let out for bid by the CRDA. We conclude that the CRDA's set-aside program cannot withstand the strict scrutiny analysis set forth in City of Richmond v. J.A. Croson Co., 488 U.S. 469, 109 S.Ct. 706, 102 L.Ed.2d 854 (1989), because it is not narrowly tailored to achieve its intended result. Specifically, it is overinclusive as to the minorities who may benefit from the program. Because we conclude that the program fails to meet the "narrowly tailored" prong of the Croson test, we need not decide on this appeal whether the program is justified by a compelling governmental interest, including identification of the appropriate governmental unit, whether there are particularized findings in the record that the CRDA has engaged in discrimination in contracting or has become a passive participant in private discrimination in contracting, or whether the CRDA failed to sufficiently utilize race-neutral alternatives. We leave these important issues for another day.

I.

A.

These are the facts relevant to consideration of the narrow issue we have identified. *257 The CRDA was created by L. 1984, c. 218 "in, but not of, the Department of Treasury." N.J.S.A. 5:12-153(a). The Authority's purposes include maintaining public confidence in the casino gaming industry; directly facilitating the redevelopment of existing blighted areas in Atlantic City "by providing eligible projects in which casino licensees shall invest"; providing loans and other financial assistance for the acquisition, rehabilitation, construction, or repair of buildings or facilities to provide housing, commercial facilities, solid waste disposal facilities and roads, highways and bridges; and assisting commercial enterprises and local governmental units by providing financing for various projects. N.J.S.A. 5:12-160. Additionally, the CRDA is authorized to invest in eligible projects, issue bonds, guarantee obligations and enter into contracts. It is funded by charges and taxes imposed on New Jersey's casino industry. N.J.S.A. 5:12-144.1, -161.1 to .2, -173.1 to -.5.

In 1983, the Legislature enacted the Small Business Set Aside Act. N.J.S.A. 52:32-17 to -31, L. 1983, c. 482. As part of the law, all state agencies were required to establish a goal of setting aside at least 15% of their contracts for small business. N.J.S.A. 52:32-21.

The 1984 enabling legislation creating the CRDA included a minority and women's set-aside of twenty percent. N.J.S.A. 5:12-181b. The statute, in turn, incorporated by reference N.J.S.A. 34:1B-47 and -48, part of the enabling legislation of the New Jersey Development Authority for Small Businesses, Minorities and Women's Enterprises. Among the findings of incorporated law was that "due to a historical legacy of disregard and discrimination, minorities and women control a disproportionately small fraction of the productive resources of the State and are therefore largely excluded from the mainstream of the overall economy." N.J.S.A. 34:1B-47c. The term "minority" was broadly defined, and included:

(1) Black, which is a person having origins in any of the black racial groups in Africa; or
(2) Hispanic, which is a person of Spanish or Portuguese culture, with origins in Mexico, South or Central America, or the Caribbean islands, regardless of race; or
(3) Asian-American, which is a person having origins in any of the original peoples of the Far East, Southeast Asia, and Indian subcontinent, Hawaii, or the Pacific Islands; or
(4) American Indian or Alaskan native, which is a person having origins in any of the original peoples of North America.

[ N.J.S.A. 34:1B-48d.][1]]

Minority and women's businesses were defined as businesses in which minorities or women hold 51% of the beneficial ownership, and in which the majority of the management is composed of either minorities or women. N.J.S.A. 34:1B-48e, h.

Enacted on the same date as the above legislation, L. 1985, c. 384, which amended the Small Business Set Aside Act, renamed the Set-Aside Act for Small Businesses, Female Businesses, and Minority Businesses (Set-Aside Act), N.J.S.A. 52:32-17, and established as goals for state contracting agencies that they award "at least 7% of their contracts for minority businesses and at least 3% of their contracts for female businesses" (WBE), N.J.S.A. 52:32-21a. Pursuant to these *258 goals, "a total of at least 25% of the State's procurement contracts shall be awarded to small businesses, minority businesses, and female businesses." N.J.S.A. 52:32-21b. In addition, the law amended the legislative declarations to provide:

The Legislature declares that the existence of a strong and healthy free enterprise system is directly related to the well-being and competitive strength of small business, female business and minority business concerns and to the opportunity for small business, female business and minority business to have free entry into business, to grow and to expand; and finds that the State must ensure that a fair proportion of the State's total purchases and contracts for construction, property and services is placed with small business, female business and minority business concerns.

[ N.J.S.A. 52:32-18.]

A minority business was defined as a "business which has its principal place of business in the State, is independently owned and operated and at least 51% of which is owned and controlled by persons who are black, Hispanic, Portuguese, Asian American, American Indian or Alaskan natives." N.J.S.A. 52:32-19g.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lorillard Tobacco Company v. Director, Division of Taxation
New Jersey Superior Court App Division, 2025
Keona Palmer v. Flagship Resort Development Corp., Etc.
New Jersey Superior Court App Division, 2025
Clair W. Flinn v. Amboy National Bank and Ab Monmouth, LLC
93 A.3d 422 (New Jersey Superior Court App Division, 2014)
Freeman v. Fischer
563 F. Supp. 2d 493 (D. New Jersey, 2008)
In Re NJAC 12: 17-9.6 Ex Rel. State Dept. of Labor
928 A.2d 956 (New Jersey Superior Court App Division, 2007)
Lourdes Medical Center v. Board of Review
927 A.2d 164 (New Jersey Superior Court App Division, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
776 A.2d 254, 342 N.J. Super. 237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-feriozzi-concrete-co-v-crda-njsuperctappdiv-2001.