Luis Perez v. Zagami, LLC (071358)

94 A.3d 869, 218 N.J. 202, 2014 N.J. LEXIS 1076
CourtSupreme Court of New Jersey
DecidedMay 21, 2014
DocketA-36-12
StatusPublished
Cited by182 cases

This text of 94 A.3d 869 (Luis Perez v. Zagami, LLC (071358)) 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
Luis Perez v. Zagami, LLC (071358), 94 A.3d 869, 218 N.J. 202, 2014 N.J. LEXIS 1076 (N.J. 2014).

Opinion

Justice LaVECCHIA delivered the opinion of the Court.

This appeal involves the private right of action authorized under the New Jersey Civil Rights Act (Act or CRA), N.J.S.A. 10:6-1 to -2. Specifically, we are called on to determine whether the Legislature intended that the Act permit a private right of action to be brought against a person who is not acting under “color of law.” N.J.S.A. 10:6-2(e). For the reasons that follow, we hold that, although the Act bestows such authority on the Attorney General, a private CRA cause of action only may be pursued against persons acting under color of law.

I.

A.

The backdrop to the question of law before us involves a contested liquor license renewal proceeding.

Zagami, LLC (Zagami) is the owner of the Landmark Americana Tap and Grill (Landmark), a restaurant and bar in the Borough of Glassboro (Borough). In 2006, Zagami applied to the Borough for a renewal of its liquor license. Luis Perez, a citizen residing in Glassboro, opposed the renewal. 1 In a letter to the Glassboro Borough Council (Council), Perez complained of several serious infractions allegedly committed by Zagami, including serving alcohol to minors and bribing public officials with free meals and drinks. As a result of those allegations, the Council scheduled a liquor license renewal hearing for June 27, 2006, and invited Perez and Zagami to participate. At the hearing, Perez testified that, among other things, Landmark flouted fire-safety regulations, served alcohol to visibly intoxicated patrons, and encouraged *205 bouncers to physically harm rowdy customers. Zagami disputed the allegations, calling them unsubstantiated. At the conclusion of the hearing, the Council voted to renew Zagami’s liquor license, Perez’s testimony notwithstanding.

A year later, Zagami filed a defamation complaint against Perez for statements that he made during the liquor license renewal hearing. Perez filed a motion to dismiss the complaint, arguing that his remarks were made in the course of a quasi-judicial proceeding and thus were entitled to absolute immunity. The trial court denied the motion to dismiss and the Appellate Division denied leave to appeal. We granted Perez’s motion for leave to appeal to this Court and summarily remanded the matter to the Appellate Division for consideration on the merits. On remand, the Appellate Division found that Perez’s statements during the liquor license proceeding were entitled to absolute immunity and dismissed the defamation complaint with prejudice. See Zagami, LLC v. Cottrell, 403 N.J.Super. 98, 957 A.2d 691 (App.Div.2008), certif. denied, 198 N.J. 309, 966 A.2d 1075 (2009).

B.

The proceeding that led to the instant appeal commenced on July 26, 2010, when Perez filed a complaint against Zagami for malicious use of process.

Essentially, Perez alleged that Zagami had instituted its defamation complaint as a Strategic Lawsuit Against Public Participation (SLAPP), or SLAPP suit, designed to punish Perez for speaking out against Zagami at the liquor license renewal hearing and to discourage his participation in future public proceedings. Zagami filed a motion to dismiss the complaint, and Perez filed a cross-motion to amend his complaint to include a claim under the CRA and to add as a defendant the law firm retained by Zagami during the defamation suit. Finding that Zagami’s defamation suit was supported by probable cause, the trial court granted Zagami’s motion to dismiss the malicious use of process claim and denied Perez’s cross-motion to amend the complaint. In respect *206 of the CRA claim, the trial court concluded that N.J.S.A. 10:6-2(c) was modeled after 42 U.S.CA § 1983 (Section 1983) and that, consequently, the CRA only authorized private suits against persons acting under color of law.

On appeal, the Appellate Division reversed both determinations of the trial court. The panel determined that Zagami’s defamation suit was not supported by probable cause and that Zagami should have been aware that Perez’s statements were privileged at the time it filed suit. Accordingly, the panel reversed the trial court’s grant of Zagami’s motion to dismiss the malicious use of process claim.

Importantly, for purposes of the instant appeal, the panel disagreed with the trial court’s construction of the CRA. Relying on Felicioni v. Administrative Office of the Courts, 404 N.J.Super. 382, 961 A.2d 1207 (App.Div.2008), certif. denied, 203 N.J. 440, 3 A.3d 1228 (2010), the appellate panel determined that N.J.S.A. 10:6-2(c) has two distinct clauses: one clause protects against a “deprivation” of an individual’s constitutional or statutory rights and the other clause protects against an “interference” with those same rights. Because the “under color of law” language appears only in the second clause of N.J.S.A. 10:6-2(c), which proscribes an interference with protected civil liberties, the panel reasoned that the state action requirement was limited to interference claims. As a result, the panel allowed Perez to amend his complaint to include a cause of action against Zagami for a deprivation of his civil rights under the CRA.

We granted certification to review only whether the New Jersey Civil Rights Act permits a private right of action against an individual who is not acting under color of law. 213 N.J. 530, 65 A.3d 258 (2013). 2 We also granted amicus curiae status to the Seton Hall University School of Law Center for Social Justice.

*207 II.

The New Jersey Civil Rights Act, in relevant part, contains two subsections authorizing causes of action that may be brought by the Attorney General:

(a) If a person, whether or not acting under color of law, subjects or causes to be subjected any other person to the deprivation of any substantive due process or equal protection rights, privileges or immunities secured by the Constitution or laws of the United States, or any substantive rights, privileges or immunities secured by the Constitution or laws of this State, the Attorney General may bring a civil action for damages and for injunctive or other appropriate relief. The civil action shall be brought in the name of the State and may be brought on behalf of the injured party....

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Bluebook (online)
94 A.3d 869, 218 N.J. 202, 2014 N.J. LEXIS 1076, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luis-perez-v-zagami-llc-071358-nj-2014.