Pitman v. MONROE SAVINGS BANK

40 A.3d 1148, 425 N.J. Super. 245
CourtNew Jersey Superior Court Appellate Division
DecidedMarch 29, 2012
DocketA-3113-10T1
StatusPublished
Cited by1 cases

This text of 40 A.3d 1148 (Pitman v. MONROE SAVINGS BANK) 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
Pitman v. MONROE SAVINGS BANK, 40 A.3d 1148, 425 N.J. Super. 245 (N.J. Ct. App. 2012).

Opinion

40 A.3d 1148 (2012)
425 N.J. Super. 245

BOROUGH OF PITMAN, Plaintiff-Appellant,
v.
MONROE SAVINGS BANK, SLA, Defendant-Respondent.

No. A-3113-10T1

Superior Court of New Jersey, Appellate Division.

Argued December 7, 2011.
Decided March 29, 2012.

*1149 John A. Moustakas argued the cause for appellant (Law Offices of Brian J. Duffield, attorneys; Mr. Moustakas, on the briefs).

Richard S. Kaser, Williamstown, argued the cause for respondent (Kaser & McHugh, P.A., attorneys; Mr. Kaser, on the brief).

Before Judges LIHOTZ, WAUGH and ST. JOHN.

The opinion of the court was delivered by

LIHOTZ, J.A.D.

Plaintiff the Borough of Pitman (the Borough) appeals from an order relieving defendant Monroe Savings Bank, SLA (Monroe) of liability for payment of previously imposed penalties for fire code violations on realty Monroe acquired by Sheriff's deed, following entry of a final judgment of foreclosure. The Borough made the fire code violation assessments against the prior owner of the realty, but had not recorded its judgment prior to entry of Monroe's final judgment of foreclosure.

The Borough initiated this matter seeking to enforce Monroe's payment of the fire assessment penalties, arguing the penalties were not subject to elimination through foreclosure. The motion judge disagreed and concluded the Borough was precluded from enforcement and Monroe "holds the property free and clear of any claim of the Borough ... for fines and penalties assessed against the prior owner[.]" *1150 The Borough appeals, arguing the court erred as a matter of law. We affirm.

The facts are derived from evidence submitted by the parties in support of, and in opposition to, the summary judgment motions, and are viewed in a light most favorable to plaintiff. Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520, 523, 666 A.2d 146 (1995).

On January 23, 2008, Ryan Pierson, the Borough's Fire Official, conducted a routine inspection of realty located on Pitman Avenue (the property). The property was owned by RAMA Enterprises (RAMA), trading as the Hotel Pitman. Pierson's inspection identified forty-six fire code violations and the Borough served RAMA with a Notice of Violations and an Order to Correct Fire Code Violations. RAMA took no action as it no longer operated the hotel and was virtually insolvent. Consequently, the Borough issued an Order to Pay Penalty and Abate Violations, assessing an aggregate penalty of $20,000. When RAMA did not pay the sums set forth in the administrative penalty order, additional penalties were assessed, increasing the total obligation to $44,000.

The Borough initiated legal action for satisfaction of the penalties against RAMA and its sole shareholder and director, David Marquez. A Law Division judgment was entered against RAMA, but dismissed as to Marquez, who had filed a voluntary petition pursuant to Chapter 7 of the Bankruptcy Code. Judgment in favor of the Borough was recorded as a lien on January 26, 2010.

Monroe acquired an equitable interest in the property through a mortgage it extended to RAMA, which was recorded in the Gloucester County Clerk's Office on July 15, 1996. Following RAMA's default, Monroe filed a foreclosure complaint on July 29, 2008. A final judgment foreclosing all interests in the property and a Writ of Execution were filed on September 20, 2009. As the successful bidder at Sheriff's sale, Monroe obtained title to the property through a January 6, 2010 Sheriff's Deed. Once it obtained ownership, Monroe demolished the structure on the property, eliminating the fire code violations.

The Borough initiated this matter, seeking Monroe's payment of the $44,000 penalty, originally assessed against RAMA. Cross-motions for summary judgment were filed. In an oral opinion, the motion judge reviewed whether the unrecorded fire assessment penalties became a municipal lien superior to the mortgage or whether the final judgment of foreclosure eliminated the Borough's claim. The motion judge concluded the penalties did not enjoy the same statutory priority as municipal tax liens. Accordingly, he granted Monroe's motion for summary judgment and barred the Borough's claim for payment of the fire assessment penalties because its judgment was recorded after entry of the final judgment of foreclosure.

The Borough moved for reconsideration, which was denied. This appeal ensued.

On appeal, the Borough argues the motion judge ignored statutory provisions, which impose liability for unpaid fire assessment penalties on a subsequent owner of realty and asserts the obligation for payment is unavoidable, despite entry of a foreclosure judgment. Monroe disagrees, maintaining the motion judge correctly discerned the fire assessment penalties did not enjoy an enhanced priority, such as municipal tax liens, and therefore, the Borough's interest in the property, if any, was foreclosed.

Issues of statutory interpretation are questions of law requiring our independent review. Cty. of Bergen Emp. Benefit Plan v. Horizon Blue Cross Blue Shield of N.J., 412 N.J.Super. 126, 131, 988 A.2d 1230 (App.Div.2010) (citing In re Liquidation of Integrity Ins. Co., 193 N.J. 86, *1151 94, 935 A.2d 1184 (2007)). When examining such questions, we independently consider whether the motion judge's application of the law was correct and need not defer to "[a] trial court's interpretation of the law and legal consequences that flow from established facts[.]" Manalapan Realty L.P. v. Twp. Comm. of Manalapan, 140 N.J. 366, 378, 658 A.2d 1230 (1995).

When interpreting statutes, our overriding goal must be to determine the Legislature's intent. O'Connell v. State, 171 N.J. 484, 488, 795 A.2d 857 (2002). See also N.J.S.A. 1:1-1 (stating statutory "words and phrases shall be read and construed with their context, and ... be given their generally accepted meaning, according to the approved usage of the language"). Specific rules of construction guide our review. See Ibid.

We begin with consideration of the statute's plain language, Mun. Council of Newark v. James, 183 N.J. 361, 370, 873 A.2d 544 (2005), remaining mindful that we "may neither rewrite a plainly-written enactment of the Legislature nor presume that the Legislature intended something other than that expressed by way of the plain language." O'Connell, supra, 171 N.J. at 488, 795 A.2d 857. Also, common law definitions of statutory terms must be assigned, unless evidence exists suggesting the Legislature intended otherwise. See DiProspero v. Penn, 183 N.J. 477, 492, 874 A.2d 1039 (2005) (stating courts ascribe the "ordinary meaning and significance" to statutory terms).

We also note "statutes must be read in their entirety; each part or section should be construed in connection with every other part or section to provide a harmonious whole." Bedford v. Riello, 195 N.J. 210, 224, 948 A.2d 1272 (2008). "The Court fulfills its role by construing a statute in a fashion consistent with the statutory context in which is appears." James, supra, 183 N.J. at 370, 873 A.2d 544 (internal citations omitted).

If we conclude the statutory language is ambiguous and there is more than one plausible interpretation, we may consider extrinsic evidence, including the legislative history of the statute. Burnett v. Cnty. of Bergen, 198 N.J. 408, 421, 968 A.2d 1151 (2009).

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40 A.3d 1148, 425 N.J. Super. 245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pitman-v-monroe-savings-bank-njsuperctappdiv-2012.