PETRIC & ASSOCIATES, INC. VS. CCA CIVIL, INC. (L-1596-16, HUDSON COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedJune 8, 2020
DocketA-3571-17T2
StatusUnpublished

This text of PETRIC & ASSOCIATES, INC. VS. CCA CIVIL, INC. (L-1596-16, HUDSON COUNTY AND STATEWIDE) (PETRIC & ASSOCIATES, INC. VS. CCA CIVIL, INC. (L-1596-16, HUDSON 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
PETRIC & ASSOCIATES, INC. VS. CCA CIVIL, INC. (L-1596-16, HUDSON COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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-3571-17T2

PETRIC & ASSOCIATES, INC.,

Plaintiff-Respondent,

v.

CCA CIVIL, INC.,

Defendant-Appellant. ___________________________

Argued December 9, 2019 – Decided June 8, 2020

Before Judges Sumners, Geiger and Natali.

On appeal from the Superior Court of New Jersey, Law Division, Hudson County, Docket No. L-1596- 16.

Lawrence S. Lustberg argued the cause for appellant (Gibbons PC, and Peckar & Abramson, PC, attorneys; Lawrence S. Lustberg, Jennifer Ann Hradil, Jason R. Halpin, Gerard J. Onorata, and Patrick Thomas Murray, on the briefs).

Eliza D. Stahl argued the cause for respondent (The Law Office of Eliza D. Stahl PC, attorneys; Eliza D. Stahl, on the brief). PER CURIAM

Defendant CCA Civil, Inc., appeals from a jury verdict awarding

plaintiff Petric & Associates $1,850,000 in damages, comprised of: 1)

$300,000 for fraud; 2) $800,000 for breach of contract; 3) $250,000 for

violation of the Prompt Payment Act (PPA), N.J.S.A. 2A:30A-1 to -2; and 4)

$500,000 in punitive damages. Defendant also appeals from a series of related

pre- and post-trial motion orders and a separate award of $260,911.36 in

attorney's fees.

The jury considered a wealth of evidence that defendant fraudulently

induced plaintiff to enter into a contract to install temporary shielding and

work platforms on the Pulaski Skyway in Jersey City, Kearny, and Newark

without informing plaintiff of the existence of high voltage Public Service

Electric and Gas Company (PSE&G) wiring that not only would have altered

plaintiff's decision to enter into the contract on the agreed terms, but also

placed plaintiff's employees at significant risk of harm. The trial proofs also

support the jury's determination that defendant breached the contract and acted

with "actual malice" or "a wanton and willful disregard," see N.J.S.A. 2A:15-

5.12, warranting the compensatory and punitive damages awards. However,

A-3571-17T2 2 the trial proofs were insufficient for the jury to conclude that defendant

violated the PPA.

We accordingly affirm the court's December 15, 2017 order denying

summary judgment to defendant, the jury's January 25, 2018 verdict finding

defendant liable for fraudulent inducement and breach of contract, its attendant

compensatory and punitive damages awards, and the trial court's March 16,

2018 order denying defendant's motion to set aside the verdict or for a new

trial. We reverse, however, the jury's verdict concluding that defendant

violated the PPA. Based on our reversal of that count, we vacate and remand

the court's March 29, 2018 order granting attorneys' fees to plaintiff, including

its decision to grant a ten percent fee enhancement.

On appeal, defendant raises the following points for our consideration:

POINT I

THE TRIAL COURT ERRED BY FAILING TO REJECT PETRIC'S FRAUDULENT INDUCEMENT CLAIM AS A MATTER OF LAW.

A. The Trial Court Erred in Denying CCA Civil's Motion for Summary Judgment as to Petric's Fraud Claim.

B. The Trial Court erred in Denying CCA Civil's Motions for Judgment at Trial Because Petric Did Not Present Clear and Convincing Evidence of Fraud.

A-3571-17T2 3 POINT II

THE TRIAL COURT ERRED BY FAILING TO REJECT PETRIC'S BREACH OF CONTRACT CLAIM AS A MATTER OF LAW.

A. The Trial Court erred in Denying CCA Civil's Motion for Summary Judgment.

B. Because Petric Failed to Show at Trial that CCA Civil Did Anything Other Than Fully Comply With its Obligations Under the Subcontract, the Trial Court Erred by Sending the Breach of Contract Claim to the Jury.

POINT III

BECAUSE CCA CIVIL WAS WITHIN ITS RIGHTS UNDER THE SUBCONTRACT TO WITHHOLD PAYMENT FROM PETRIC, THE TRIAL COURT ERRED IN DENYING SUMMARY JUDGMENT AS TO PETRIC'S PROMPT PAYMENT ACT CLAIM.

POINT IV

THE JURY AWARDED DUPLICATIVE DAMAGES FOR PETRIC'S FRAUD AND CONTRACT CLAIMS, AND THE DAMAGE AWARD MUST BE REDUCED.

A. Petric's Contract Damages Can Not Exceed $382,373.87.

B. Petric's Vague Reference to Lost Profits Cannot Justify the Damages Award Because Petric Failed to Establish Lost Profits with Reasonable Certainty.

A-3571-17T2 4 POINT V

BECAUSE PETRIC OFFERED NO EVIDENCE THAT CCA CIVIL ACTED WITH "EVIL MOTIVE," THE TRIAL COURT ERRED BY REFUSING TO ELIMINATE THE PUNITIVE DAMAGES AWARD.

POINT VI

THE TRIAL COURT'S AWARD OF ATTORNEY'S FEES MUST BE REDUCED BECAUSE PETRIC IS NOT ENTITLED TO ATTORNEY'S FEES FOR ALL OF ITS CLAIMS, NOR IS IT ENTITLED TO ANY ENHANCEMENT.

I.

We discuss the extensive procedural history and the trial evidence to

provide context for our opinion.

Plaintiff was a small, family-owned industrial painting company run by

the Petrics, Ellen, and Steven, wife and husband. 1 Plaintiff had been in

business for approximately thirty years, and in that time worked on between

thirty and forty projects for the New Jersey Department of Transportation

(NJDOT). Steven, plaintiff's Vice President, testified that he was a civil

engineer and a member of the Structural Steel Painting Council. In addition, at

the time plaintiff bid on the Pulaski Skyway job, Steven had more than thirty

1 For ease of reference, we refer to Ellen and Steven Petric by their first names, intending no disrespect.

A-3571-17T2 5 years' experience in the industry, had worked on public projects for NJDOT,

and was familiar with NJDOT's procedures and specifications, including

change orders.

By letter dated June 28, 2013, defendant advised plaintiff of its intent to

award plaintiff a subcontract to install temporary shielding and work platforms

for the Pulaski Skyway project. On July 12, 2013, plaintiff submitted a formal

bid to install a standard platform for $6.50 per square foot.

At trial, Steven testified regarding the parties' approximate two-month

negotiation of the subcontract. He stated that the final design drawings

revealed a complicated design, not the "standard" design originally anticipated

by plaintiff, and they did not show any indication of PSE&G wire interference.

He further testified that as a result of the more complicated design, plaintiff

negotiated a higher unit price of $6.60 per square foot.

Michael Grant, defendant's former employee who negotiated the

subcontract on defendant's behalf, testified as a witness for plaintiff and noted

that one of the primary issues regarding the subcontract negotiations was

prompt payment to plaintiff. He stated that because plaintiff "had just

completed a project for which they had not received payment timely and they

couldn't afford to finance" the current project, plaintiff was "in a precarious

A-3571-17T2 6 financial position and . . . [defendant] knew it." In this regard, plaintiff agreed

to perform the work for $6.60 per square foot, which Grant testified was "a

much lower price to do the work than others would have given [defendant]," if

defendant agreed to make timely payments.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
United States v. James C. Dunkel
927 F.2d 955 (Seventh Circuit, 1991)
Cristen M. Gleason v. Norwest Mortgage, Inc
243 F.3d 130 (Third Circuit, 2001)
Verdicchio v. Ricca
843 A.2d 1042 (Supreme Court of New Jersey, 2004)
P. v. Portadin
432 A.2d 556 (New Jersey Superior Court App Division, 1981)
Baxter v. Fairmont Food Co.
379 A.2d 225 (Supreme Court of New Jersey, 1977)
State v. Wesner
859 A.2d 734 (New Jersey Superior Court App Division, 2004)
Nappe v. Anschelewitz, Barr, Ansell & Bonello
477 A.2d 1224 (Supreme Court of New Jersey, 1984)
Lane v. Oil Delivery, Inc.
524 A.2d 405 (New Jersey Superior Court App Division, 1987)
Viviano v. CBS, INC.
597 A.2d 543 (New Jersey Superior Court App Division, 1991)
Stochastic Decisions v. DiDomenico
565 A.2d 1133 (New Jersey Superior Court App Division, 1989)
Lo Bosco v. Kure Engineering Ltd.
891 F. Supp. 1020 (D. New Jersey, 1995)
Perth Amboy Iron Works v. Am. Home
543 A.2d 1020 (New Jersey Superior Court App Division, 1988)
Smith v. Whitaker
734 A.2d 243 (Supreme Court of New Jersey, 1999)
Borough of Fort Lee v. BANQUE NAT. DE PARIS
710 A.2d 1 (New Jersey Superior Court App Division, 1998)
Highland Lakes Country Club & Community Ass'n v. Franzino
892 A.2d 646 (Supreme Court of New Jersey, 2006)
Globe Motor Car v. First Fidelity
641 A.2d 1136 (New Jersey Superior Court App Division, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
PETRIC & ASSOCIATES, INC. VS. CCA CIVIL, INC. (L-1596-16, HUDSON COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/petric-associates-inc-vs-cca-civil-inc-l-1596-16-hudson-county-and-njsuperctappdiv-2020.