Mill Race, Ltd. v. MAYOR & TP. COMMITTEE

553 A.2d 44, 230 N.J. Super. 160
CourtNew Jersey Superior Court Appellate Division
DecidedJanuary 27, 1989
StatusPublished
Cited by7 cases

This text of 553 A.2d 44 (Mill Race, Ltd. v. MAYOR & TP. COMMITTEE) 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
Mill Race, Ltd. v. MAYOR & TP. COMMITTEE, 553 A.2d 44, 230 N.J. Super. 160 (N.J. Ct. App. 1989).

Opinion

230 N.J. Super. 160 (1989)
553 A.2d 44

MILL RACE, LTD., A NEW JERSEY PARTNERSHIP, PLAINTIFF-APPELLANT,
v.
MAYOR & TOWNSHIP COMMITTEE OF BERNARDS TOWNSHIP, BERNARDS TOWNSHIP PLANNING BOARD, AND COUNTRY PLACE ASSOCIATES, A NEW JERSEY PARTNERSHIP, DEFENDANTS-RESPONDENTS.

Superior Court of New Jersey, Appellate Division.

Argued December 13, 1988.
Decided January 27, 1989.

*161 Before Judges DREIER, HAVEY and BROCHIN.

Roy E. Kurnos argued the cause for appellant (Murphy, Kurnos, Nish & Jabbour, attorneys; Raymond S. Papperman, on the brief).

Howard P. Shaw argued the cause for respondent Mayor & Township Committee of Bernards Township (Schenck, Price, *162 Smith & King, attorneys; Howard P. Shaw and Anthony F. Della Pelle, on the brief).

Arthur H. Garvin, III argued the cause for respondent Bernards Township Planning Board (Kerby, Cooper, English, Schaul & Garvin, attorneys; Arthur H. Garvin, on the brief).

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

Plaintiff, Mill Race, Ltd., appeals from the dismissal of its Law Division complaint on the basis that its claim was barred by the entire controversy doctrine.

For an understanding of this matter we must of necessity review the earlier suit urged here as a bar, N.J. Bldrs. Ass'n v. Bernards Tp., 211 N.J. Super. 290 (Law Div. 1985), aff'd 219 N.J. Super. 539 (App.Div. 1986), aff'd 108 N.J. 223 (1987). In the earlier action, New Jersey Builders Association attacked a Bernards Township zoning ordinance requiring developers to contribute to an off-site improvement fund. Judge D'Annunzio in the Law Division determined that the ordinance was ultra vires, since it exceeded the Legislative grant expressed in N.J.S.A. 40:55D-42. In our affirmance for the reasons stated in Judge D'Annunzio's opinion, we further declined to order the judgment to be of only prospective application. The Supreme Court affirmed in an opinion which also specifically noted that "the invalidation of the ordinance should not be limited to prospective application only." 108 N.J. at 238

In the earlier action, the plaintiffs were stated to be New Jersey Builders Association, and Builders Association of Somerset and Morris,

trade organizations consisting of builders and developers, some of whom allegedly own property in Bernards Township that they intend to develop. Plaintiff Mill Race Limited is a purchaser of land in the Township that has since been developed. [108 N.J. at 227].

Plaintiff Mill Race has asserted in arguments before us that the builders' associations, rather than individual builders, brought suit in the earlier action in order to avoid retaliation against *163 particular developers who might have sought later municipal approvals. Mill Race was added as a party plaintiff only so that the action could further be prosecuted as a taxpayer action, since plaintiff owned property in the community. Plaintiff is not a builder.

Prior to 1981, plaintiff contracted to purchase property in Bernards Township. On March 29, 1982 plaintiff sold its right to the land to Country Place Associates (through an affiliate of Country Place) by an agreement which provided for an offset for amounts paid by the purchaser for sewer connection fees, additional assessments and the disputed off-tract contributions, if the amount of such combined fees exceeded $2,400 per unit. Country Place then undertook development of the property and obtained preliminary and final site plan approvals to construct 150 multi-family condominium units in 19 buildings on this site. After payment of all fees, including the off-site improvement fees required by the disputed ordinance, the purchase price of the land from plaintiff was reduced by $139,950, the amount of plaintiff's claim in this action.

The Law Division opinion in the N.J. Bldrs. Ass'n case was rendered February 25, 1985. Less than two weeks later, on March 8, 1985, plaintiff, as the assignee of Country Place,[1] requested a refund from the Township. When the Township refused to refund the fees, plaintiff filed its complaint on April *164 1, 1985, demanding the return of the off-tract improvement fees, with interest.

Until Mill Race obtained the assignment of Country Place's refund claims, it had no direct claim against Bernards Township for the return of any funds. Its sole claims had been against Country Place on the bases that Country Place had departed from the original site plan, or in the event Country Place obtained a refund from the municipality, that Country Place must return the offset which no longer would be warranted. Neither of these claims could have been asserted in the N.J. Bldrs. Ass'n suit, since they were not claims against Bernards Township. Any such direct claim by Mill Race was therefore not barred by the entire controversy doctrine. When plaintiff's claims against Country Place were settled in the early stages of this action (when Mill Race accepted the assignment of Country Place's claims for a refund of the charges that had been paid to Bernards Township), plaintiff's position changed. We therefore must consider Mill Race's position as the successor in interest to Country Place and determine whether these assigned claims were required to have been asserted in the N.J. Bldrs. Ass'n action.

The entire controversy doctrine mandated by R. 4:27-1(b) "requires all aspects of one party's controversy with the other to be included within the litigation...." Pressler, Current N.J. Court Rules, Comment 3 to R. 4:27-1 (1988). See also Mori v. Hartz Mountain Development Corp., 193 N.J. Super. 47, 55-56 (App.Div. 1983). As noted in Falcone v. Middlesex Cty. Med. Soc., 47 N.J. 92, 94 (1966):

[E]lemental considerations of fairness to the other party and the urgent need for eliminating the delay and wastage incident to the fragmentation of litigation dictated that all of the aspects of the plaintiff's controversy with the defendant be included within his legal proceeding.

And see Schnitzer & Wildstein, N.J. Rules Service, A IV-933-941 (1957). The import of this rule is to require the assertion of all existing claims by one party against another, a situation to be distinguished from the assertion of sequential claims, i.e., *165 where a second remedy is available only after another claim has been adjudicated. This latter situation is governed by R. 4:27-2 which permits, but does not require, successive claims to be asserted in a single action. See, Pressler, Current N.J. Rules, Comment 3 to R. 4:27-1 (1988): "Note ... that the [entire controversy] doctrine has been held not to apply to claims covered by R. 4:27-2." And see Central Penn Nat'l Bank v. Stonebridge Ltd., 185 N.J. Super. 289, 309-310 (Ch.Div. 1982); Schnitzer & Wildstein, N.J. Rules Serv., A IV-949 (1957) (noting that the rule "is permissive and not mandatory").

In Mori v. Hartz Mountain Development Corp., supra, we noted that some of the purposes of the entire controversy doctrine are:

to eliminate delay, prevent harassment of a party and unnecessary clogging of the judicial system, avoid wasting the time of parties and effort of parties and promote fundamental fairness. [193 N.J. Super. at 56].

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Bluebook (online)
553 A.2d 44, 230 N.J. Super. 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mill-race-ltd-v-mayor-tp-committee-njsuperctappdiv-1989.