MICHAEL K. FUREY v. LEONARD BUCK TRUST (L-0332-18, SOMERSET COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedJuly 21, 2022
DocketA-2242-20
StatusUnpublished

This text of MICHAEL K. FUREY v. LEONARD BUCK TRUST (L-0332-18, SOMERSET COUNTY AND STATEWIDE) (MICHAEL K. FUREY v. LEONARD BUCK TRUST (L-0332-18, SOMERSET COUNTY AND STATEWIDE)) 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
MICHAEL K. FUREY v. LEONARD BUCK TRUST (L-0332-18, SOMERSET COUNTY AND STATEWIDE), (N.J. Ct. App. 2022).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-2242-20

MICHAEL K. FUREY and NANCY H. FUREY,

Plaintiffs-Appellants/ Cross-Respondents,

v.

LEONARD BUCK TRUST, GLENMEDE TRUST COMPANY, NORMAN E. DONOHUE, II, and ROBERT BARTLETT, as Trustees of the LEONARD BUCK TRUST,

Defendants-Respondents/ Cross-Appellants. _____________________________

Argued December 15, 2021 – Decided July 21, 2022

Before Judges Sumners and Vernoia.

On appeal from the Superior Court of New Jersey, Law Division, Somerset County, Docket No. L-0332-18.

Michael K. Furey argued the cause for appellants/cross- respondents. Craig S. Provorny and Timothy P. Malacrida argued the cause for respondents/cross-appellants (Kirmser, Lamastra, Cunningham & Skinner, attorneys; Craig S. Provorny, of counsel; Timothy P. Malacrida, on the briefs).

PER CURIAM

This matter turns on the interpretation of an agreement in which defendant

Leonard Buck Trust (the Trust) assumed the obligation to remediate

groundwater contamination on residential property it conveyed to plaintiffs

Michael K. Furey and Nancy H. Furey in 1999. At the center of the dispute is

the parties' disagreement over the parameters of the Trust's remediation

obligations and whether the Trust and its trustees—defendants the Glenmede

Trust Company, Norman E. Donohue, II, and Robert Bartlett— breached those

obligations.

The trial court first granted partial summary judgment on defendants'

counterclaim, finding the agreement allowed the Trust to seek a designation of

the property as a classified exception area (CEA) from the New Jersey

Department of Environmental Protection (NJDEP) without plaintiffs' consent.

The court later granted defendants summary judgment dismissing plaintiffs'

breach of contract and breach of the covenant of good faith and fair dealing

claims, finding the Trust's groundwater remediation obligations are defined by

A-2242-20 2 the agreement's unambiguous terms and the undisputed facts establish the Trust

honored those obligations.

Plaintiffs appeal from those orders, arguing the court misinterpreted the

agreement, erroneously concluded defendants are entitled to judgment as a

matter of law, and the court erred by concluding the meaning of the agreement's

terms should not be determined by the jury. Persuaded by plaintiffs' arguments,

and because we are convinced a reasonable interpretation of the agreement

supports plaintiffs' breach of contract and breach of the covenant of good faith

and fair dealing claims, we reverse the summary judgment orders permitting the

Trust to seek a CEA designation without plaintiffs' consent, dismissing

plaintiffs' breach of contract and breach of the covenant of good faith and fair

dealing claims, and directing plaintiffs to execute a remedial action plan (RAP)

providing for a CEA designation and monitored natural attenuation (MNA) on

the property.

Plaintiffs also appeal from orders dismissing their punitive damages claim

and granting defendants summary judgment on their fraudulent inducement

claim. Defendants cross-appeal from the court's denial of its motion for

summary judgment on statute of limitations grounds. We affirm those orders.

A-2242-20 3 I.

The motion court record is familiar to the parties and need not be restated

at length here. That is because the orders challenged on appeal were decided

primarily based on issues of contract interpretation, with the judges who entered

the orders determining they could properly dispose of the motions by applying

what they deemed to be the plain and unambiguous language of the agreement

and without regard to extrinsic evidence.

On appeal, the parties principally focus their arguments on the meaning

of the terms of the agreement. Defendants primarily argue the court properly

granted the motions for summary judgment because the agreement plainly and

unambiguously described their groundwater remediation obligations and the

undisputed material facts established they complied with those obligations. In

contrast, plaintiffs contend the court erred in its interpretation of the agreement,

the Trust failed to honor its groundwater remediation obligations, and any

dispute concerning the meaning of the agreement's terms should be decided by

a jury.

We therefore confine our discussion of the summary judgment record to

the facts directly pertinent to a resolution of the issues presented for disposition

on appeal. In doing so, we review the orders de novo applying the same standard

A-2242-20 4 as the trial court, recognizing summary judgment must be denied if "the

competent evidential materials presented, when viewed in the light most

favorable to the non-moving party, are sufficient to permit a rational factfinder

to resolve the alleged disputed issue in favor of the non-moving party." Brill v.

Guardian Life Ins. Co. of Am., 142 N.J. 520, 540 (1995); see also Townsend v.

Pierre, 221 N.J. 36, 59 (2015); R. 4:46-2(c).

The Agreement

In 1998, plaintiffs entered into a contract to purchase residential property

from the Trust for $1,400,000. Prior to the closing of title, an oil leak on the

property resulted in the Trust's retention of an environmental contractor whose

investigation revealed soil contamination from the oil leak and groundwater

contamination that was attributed to two underground gasoline storage tanks that

had been previously removed from the property.

Plaintiffs and the Trust, through their respective counsel, subsequently

negotiated and entered into a Remediation Agreement (the agreement) detailing

the parties' rights and responsibilities concerning the remediation of the soil and

A-2242-20 5 groundwater contamination on the property.1 Plaintiffs then proceeded with the

purchase and closed title in 2000.

The agreement noted the investigation and remediation of environmental

contamination on the property would not be complete prior to the closing of title.

The agreement further provided that in consideration for plaintiffs' agreement to

close title prior to the completion of the investigation and remediation of the soil

and groundwater contamination on the property, the Trust agreed to assume

environmental contamination remediation obligations. In pertinent part, in

paragraph 2(a) of the agreement, the Trust agreed to:

(l) [P]romptly, expeditiously, actively and without delay seek an unconditional No Further Action Letter and Covenant Not to Sue from the NJDEP for all soil issues associated with the two gasoline and one heating oil underground storage tanks and the caretaker's septic system now or formerly on the Property, any other soils contamination subsequently identified as a result of such investigations or remediation, either a conditional or unconditional No Further Action Letter and Covenant Not to Sue from NJDEP for any and all

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MICHAEL K. FUREY v. LEONARD BUCK TRUST (L-0332-18, SOMERSET COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-k-furey-v-leonard-buck-trust-l-0332-18-somerset-county-and-njsuperctappdiv-2022.