Pelullo v. STATE, COM'N OF INVEST

683 A.2d 558, 294 N.J. Super. 336
CourtNew Jersey Superior Court Appellate Division
DecidedOctober 21, 1996
StatusPublished
Cited by6 cases

This text of 683 A.2d 558 (Pelullo v. STATE, COM'N OF INVEST) 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
Pelullo v. STATE, COM'N OF INVEST, 683 A.2d 558, 294 N.J. Super. 336 (N.J. Ct. App. 1996).

Opinion

294 N.J. Super. 336 (1996)
683 A.2d 558

ARTHUR R. PELULLO, PLAINTIFF-APPELLANT,
v.
STATE OF NEW JERSEY COMMISSION OF INVESTIGATION AND LESLIE Z. CELENTANO, CHAIR, DEFENDANTS-RESPONDENTS.

Superior Court of New Jersey, Appellate Division.

Argued October 9, 1996.
Decided October 21, 1996.

*338 Before Judges SHEBELL, P.G. LEVY and BRAITHWAITE.

J. Michael Farrell argued the cause for plaintiff-appellant.

Robert J. Clark, Deputy Director, argued the cause for respondents, State Commission of Investigation and Leslie Z. Celentano (James J. Morley, Executive Director; Mr. Clark, of counsel, and on the brief).

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

*339 Plaintiff, Arthur R. Pelullo, appeals from the January 5, 1996 entry of summary judgment in favor of defendants, New Jersey Commission of Investigation and its Chair, Leslie Z. Celentano. We affirm.

On June 29, 1995, the State Commission of Investigation (SCI) issued a report entitled "Organized Crime in Bars, Part II." The relevant information contained in the report was supplied by Philip Leonetti, nephew of Nicodemo Scarfo, who had previously become a witness for Federal and State authorities. The report, in pertinent part, stated (1) that plaintiff owned the Mars Restaurant which served as a meeting place for Scarfo Family members and family associates; (2) that plaintiff and the Mars Restaurant played roles in the Scarfo Family's dealings with the then Atlantic City Mayor; (3) that plaintiff had attended a meeting, during which he had to apologize to the Mayor for threatening to kill him because the Mayor would not help plaintiff get a license for his limousine company to operate in Atlantic City; (4) that the Pelullo brothers were guests at Scarfo's Christmas parties and at his Fort Lauderdale house; and (5) that plaintiff's brother, Leonard, owed money to Scarfo, and that when he didn't pay, plaintiff offered to turn over ownership of the Mars Restaurant to pay off the debt.

On July 31, 1995, plaintiff filed a Complaint against the SCI and its Chair alleging that they violated plaintiff's State and Federal Constitutional right to reputation by publishing the report without affording plaintiff due process of law. Plaintiff further alleged the report was inconsistent with the SCI's statutory authority in that it made and publicized findings with respect to the guilt of specific individuals including the plaintiff. Plaintiff sought a judgment declaring that the SCI violated his Constitutional rights or that the publication was inconsistent with its statutory authority. He asked for an injunction compelling defendants to expunge from their records and publications all references to the plaintiff suggesting that he is engaged in criminal activity, or that he is associated with organized crime or organized crime figures, and to *340 notify those who have already received the report that plaintiff's name has been withdrawn. Plaintiff also asked for attorney's fees and costs pursuant to 42 U.S.C.A. § 1988.

Defendants did not file an answer, but moved to dismiss for failure to state a claim upon which relief could be granted and/or summary judgment. R. 4:6-2(e) and R. 4:46-1. Plaintiff cross-moved for summary judgment. After argument, the Law Division judge denied plaintiff's cross-motion and granted summary judgment in favor of defendants.

The present controversy developed in this way. By letter dated May 2, 1995, plaintiff was advised by the SCI that it was going to issue a report in which he would be mentioned in a critical context. Plaintiff was informed that it was the policy of the Commission that any person to be mentioned in a potentially critical context in a Commission report be given an opportunity to respond by filing a statement under oath for the SCI's consideration. Plaintiff was told he would have to notify the SCI of his intent to respond within five days of receipt of the letter.

On May 5, 1995, plaintiff's then counsel gave notice on plaintiff's behalf and asked to be advised "of the context in which Mr. Pelullo may be mentioned in the report." Counsel for the SCI contacted the attorney's office by telephone on May 8, 1995, and "explained ... the nature of the report and read verbatim the portions of the report pertaining to Mr. Pellullo." She also indicated that if plaintiff wanted to file a statement, he would have to do so, in the form of an affidavit, by May 12, 1995.

On May 17, 1995, plaintiff's attorney advised the SCI's counsel that plaintiff would be submitting a "two liner" affidavit denying any social or business relationship with Leonetti or Scarfo, although plaintiff would not deny specific allegations because he could not "really recall" any specifics. On May 18, 1995, the SCI received plaintiff's affidavit which stated:

I, Arthur R. Pelullo, of Voorhees, New Jersey, being duly sworn according to law, hereby depose and say that I have never had any business or financial relationship of any kind with Philip Leonetti.

*341 On June 8, 1995, the Commission's counsel contacted plaintiff's attorney and told him that the denial contained in plaintiff's affidavit may be included in the report and that, if it were included, the report would also refer to plaintiff's testimony before the SCI in 1985, regarding his business dealings with Leonetti. His attorney indicated he was not aware of plaintiff's prior testimony and would have to speak to him. On June 12, 1995, the SCI was advised that plaintiff's original affidavit would not be withdrawn.

On June 22, 1995, the SCI was informed by another attorney that he was replacing the plaintiff's former attorney. He requested a copy of Leonetti's statement, but the SCI's counsel advised him that he could not have access to internal documents. He then requested that he be able to revise plaintiff's affidavit, and was granted permission to submit a supplemental affidavit by June 23, 1995.

Plaintiff's attorney was further advised of the information that would be added to the report in light of plaintiff's earlier affidavit, as follows:

Arthur Pelullo, in an affidavit to the Commission, denied "any business or financial relationship of any kind with Philip Leonetti." On May 2, 1985, Arthur Pelullo testified before the Commission under a grant of immunity in connection with the Commission's investigation on boxing. He testified about two business dealings with Leonetti and also stated that he and his brother, Peter, attended Scarfo's 1984 Christmas party. The Commission's 1985 Report on Organized Crime in Boxing included a segment on Arthur Pelullo's involvement with organized crime. It is further noted that Leonetti testified at the 1992 federal prosecution of Robert F. Simone, Esq., and Anthony DiSalvo about the loanshark debt owed by Leonard Pelullo (another brother) and the involvement of Arthur and Peter in its repayment.... Both Peter and Arthur Pelullo attended Testa's wake in September 1984. Finally, the 1990 annual report of the Pennsylvania Crime Commission profiled the organized crime involvement of Peter and Arthur Pelullo.

By letter dated June 26, 1995, as requested, the Commission report on Organized Crime in Boxing and the relevant portion of the 1990 report by the Pennsylvania Crime Commission, were sent to plaintiff's counsel. He was advised that he could withdraw plaintiff's affidavit or provide a supplemental affidavit.

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683 A.2d 558, 294 N.J. Super. 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pelullo-v-state-comn-of-invest-njsuperctappdiv-1996.