Lombardi v. Masso

25 A.3d 1080, 207 N.J. 517, 2011 N.J. LEXIS 929
CourtSupreme Court of New Jersey
DecidedAugust 26, 2011
DocketA-28/29 September Term 2010, 066488
StatusPublished
Cited by148 cases

This text of 25 A.3d 1080 (Lombardi v. Masso) 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
Lombardi v. Masso, 25 A.3d 1080, 207 N.J. 517, 2011 N.J. LEXIS 929 (N.J. 2011).

Opinions

Justice LONG

delivered the opinion of the Court.

At the center of this appeal is a straightforward legal question: whether the trial judge properly granted summary judgment to the moving defendants in this action for breach of contract, fraud, misrepresentation, and conspiracy, arising out of a real estate transaction. Unfortunately, that legal question emerges out of what can best be characterized as a procedural swamp.

The trial judge granted summary judgment to five of the seven defendants in December 2006, and denied reconsideration in August 2007. At the same time, he conducted a proof hearing regarding a defaulted defendant. As a result of that hearing, the judge concluded, sua sponte, that the ease was more complicated than he had realized, notified the dismissed defendants about his concerns, and scheduled a full hearing for November 2007. After that hearing, in which all parties participated, the judge concluded [523]*523that he had mistakenly granted summary judgment, pointing out that there were genuine issues of material fact, warranting a trial.

On interlocutory review, the Appellate Division reversed, without addressing the merits of the case. Instead, the panel ruled that the judge could not rely on what he had learned at the proof hearing to revisit the summary judgment order and reinstated that order.

After final judgment, plaintiff filed an appeal as of right challenging the propriety of the original grant of summary judgment. She did not challenge the interlocutory order, although defendants relied on it in defense of the appeal. In its opinion, the panel expressed the view, contrary to that of the interlocutory panel, that the trial judge was within his discretion to reconsider the summary judgment order for any reason in the interests of justice. The panel went on to declare, on the merits, that the summary judgment should not have been granted originally because of the existence of genuine issues of material fact.

Defendants filed a petition for certification in which they claim, essentially, that the interlocutory panel’s reinstatement of the summary judgment order should have ended the inquiry. In particular, defendants argue that the interlocutory panel was correct in concluding that the trial judge could not reconsider the prior order based on what he heard at the proof hearing; that the law of the case doctrine prohibited the actions of the trial judge and the direct appeal panel; and that procedural irregularities in plaintiffs filing of the appeal should have barred its review. We granted the petition.

We now hold that the trial judge was well within his discretion in revisiting and vacating the interlocutory summary judgment order; that the law of the case doctrine does not apply to bar reconsideration in the circumstances presented; that plaintiffs appeal was properly considered, despite some missteps in the filing process; and that the Appellate Division correctly determined that the original summary judgment was issued in error. [524]*524We thus affirm the judgment of the Appellate Division under review.

I.

A.

2006 Summary Judgment Record

We turn first to the December 1, 2006, summary judgment record which we view in a light most favorable to plaintiff, the non-moving party. R. 4:46 — 2(c); Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520, 523, 666 A.2d 146 (1995).1 So viewed, the facts in the record are as follows: In 2002, defendants, John Torrence, Christopher Masso, and James Githens, decided to “flip a property.” Masso and Torrence would finance the deal, and Githens, through Tara Construction Services, Inc. (Tara Construction), would complete renovations. Thereafter, Masso, Torrence, and Githens’ wife, who had no apparent role in the deal, formed MTG Properties, LLC (MTG) to renovate and sell a house, known as 121 Nokomis Trail, in Medford Lakes, New Jersey.

Defendant, Jennifer Lynch, a real estate agent who is Githens’ sister and Masso’s cousin by marriage, brought the Nokomis Trail property to MTG’s attention and represented MTG in its initial purchase for approximately $180,000. Lynch, who was associated with Prudential Fox and Roach Realtors (Prudential), also proposed renovations and marketing strategies to the group and acted as the listing agent. She received commissions for the purchase and sale of the property.

In 2003, plaintiff, Debra Lombardi, recently divorced, was looking to relocate to the Medford, New Jersey, area, from New York City. She retained Brenda Richmond, of Weichert Realtors, to act as her real estate agent. When plaintiff first visited the Nokomis [525]*525Trail property with Richmond, it was a wreck — practically gutted. Lynch was present when plaintiff first viewed the house, as was Githens, who identified himself as the contractor for the renovations. Githens explained to plaintiff the plans for the renovations, showed her drawings, and promised to include her in the selection of colors and appliances if she purchased the house. Plaintiff made an offer of $360,000 on the house, which defendants accepted. Githens and Lynch promised plaintiff the renovations would be complete before closing, which was scheduled for June 30, 2003.

Paragraph 14 of the April 22, 2003, sales contract for the house, which was signed by Masso and Torrence individually, stated that the house and property “shall be transferred in the same condition as they now appear____ This means that the property is being sold ‘AS IS’ unless otherwise warranted hereinafter.” (Emphasis added). In addition, paragraph 15 of the contract provided: “Seller not liable to buyer after settlement. All warranties, guarantees, representations of seller concerning the property ... unless otherwise set forth in writing shall be absolutely void after settlement____” (Emphasis added). Paragraph 37F was handwritten into the contract: “See construction addendum attached.” That three-page addendum reflected at least seventy repairs and renovations to be completed by the sellers. Included were items such as siding, HYAC systems, floors, windows, steps, sheetrock, lighting, bathroom fixtures and vanities, and a new driveway, to name a few. The addendum, which was signed by Masso and Torrence, stated that the names of the sellers should be changed to MTG Properties.

Plaintiff did not meet Masso until the closing on July 16, 2003. She has never met Torrence. At the closing, the house was nowhere near completion. In fact, Masso left the closing to determine its condition. When he returned, he agreed to place $10,000 in escrow, gave plaintiff a hug and said “he would take care of everything and that he would never let a single mom with twins live in a house in that condition.”

[526]*526Lynch assured plaintiff that Masso’s word was good and that “he would not take advantage of family.” It was at that point that plaintiff first learned that Lynch and Masso were related. It is unclear when she found out that Lynch and Githens were siblings; what is clear is that she did not know of their relationship when she entered into the contract to buy the house. Plaintiffs real estate expert, Dominic Natale, expressed the opinion that, under N.J.A.C. 11:5-6.4, which requires disclosure of “actual or potential conflicts of interest which the licensee may reasonably anticipate,” Lynch should have disclosed to plaintiff her relationship to Masso and Githens.

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Cite This Page — Counsel Stack

Bluebook (online)
25 A.3d 1080, 207 N.J. 517, 2011 N.J. LEXIS 929, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lombardi-v-masso-nj-2011.