Port-O-San Corp. v. TEAMSTERS LOCAL UNION NO. 863

833 A.2d 633, 363 N.J. Super. 431
CourtNew Jersey Superior Court Appellate Division
DecidedOctober 27, 2003
StatusPublished
Cited by11 cases

This text of 833 A.2d 633 (Port-O-San Corp. v. TEAMSTERS LOCAL UNION NO. 863) 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
Port-O-San Corp. v. TEAMSTERS LOCAL UNION NO. 863, 833 A.2d 633, 363 N.J. Super. 431 (N.J. Ct. App. 2003).

Opinion

833 A.2d 633 (2003)
363 N.J. Super. 431

PORT-O-SAN CORP., Plaintiff-Respondent,
v.
TEAMSTERS LOCAL UNION NO. 863 WELFARE & PENSION FUNDS; Main Street Title, Defendants, and
Norman A. Doyle, Jr., Defendant-Appellant.

Superior Court of New Jersey, Appellate Division.

Argued September 30, 2003.
Decided October 27, 2003.

*634 Norman A. Doyle, Jr., Kearny, appellant pro se.

Alison L. Galer, Bridgewater, argued the cause for respondent (Norris, McLaughlin & Marcus attorneys; Ms. Galer on the brief).

Before Judges STERN, A.A. RODRÍGUEZ and PAYNE.

The opinion of the court was delivered by *635 PAYNE, J.A.D.

Defendant Norman A. Doyle, Jr., an attorney who was the prevailing party on a motion for summary judgment, appeals from an order of the trial court denying his motion for attorney's fees pursuant to the frivolous claims statute, N.J.S.A. 2A:15-59.1 and Rule 1:4-8(b). We reverse.

The facts follow: Port-O-San Corp. agreed to sell property located at 377 Kearny Avenue, Kearny to Skyview Realty. At the closing, held on March 15, 2001, it was disclosed that three liens affected title to the property, including a judgment lien in favor of Teamsters Local Union No. 863 Welfare & Pension Fund. In order to satisfy the title company, Main Street Title, money sufficient to cover the three liens, including $90,000 for the Teamster's judgment lien, was placed in an interest-bearing account at Valley National Bank by escrow agent Doyle, attorney for Skyview. The closing attorney for Port-O-San, Amy Alkoff Chasin,[1] consented to the escrow of funds, so long as the interest accrued to Port-O-San Corp.

In a letter to Doyle dated May 17, 2001, Pennsylvania counsel to Port-O-San sought the release of the $90,000 to Port-O-San on the ground that the Teamsters' judgment was against Easy House d/b/a Port-O-San, not Port-O-San Corp. An affidavit of the president of Port-O-San Corp. and certain supporting documents were supplied as evidence of that fact. On May 29, Doyle responded, stating that "[s]ince the title company will not insure against the ... judgment against Port-O-San, I cannot release the escrow." Doyle recommended that Port-O-San retain New Jersey counsel to move for relief from judgment pursuant to Rule 4:50 and to utilize the previously executed affidavit as support for the motion. Thereafter, on June 5, Doyle forwarded to the Teamsters' counsel the affidavit of Port-O-San's president and a warrant to satisfy judgment in Port-O-San's favor. In a note to Port-O-San's Pennsylvania counsel appended to the June 5 letter, Doyle stated:

It would appear to me that if Teamsters Local Union does not sign the Warrant of Satisfaction, that it would be up to Port-O-San to proceed by motion to have the judgment vacated as against them on the grounds that they were never a proper defendant to begin with.
This is a problem that Port-O-San should have taken care of on its own some time ago and the remedy should not be foisted on me or my client as innocent purchasers.
However, to the extent we can assist in resolving this matter, I am doing so.

The Teamsters refused to sign the warrant, and the $90,000 remained in escrow as a result.

Port-O-San did not file the motion suggested by Doyle. As stated by Pennsylvania counsel, while that course might, "in fact, be one alternative, it is probably not the only alternative available to my client." Instead, Port-O-San retained the law firm of Norris, McLaughlin & Marcus, to file suit on Port-O-San's behalf. Since that time, a member of the firm (litigation counsel), has prosecuted Port-O-San's action throughout its course, including this appeal.

A complaint filed by Port-O-San's litigation counsel on August 20, 2001 against the Teamsters, Main Street Title and Doyle alleged Main Street's wrongful requirement that $90,000 be placed in escrow, the designation of Doyle as escrow agent, and the Teamsters' wrongful failure to provide a warrant of satisfaction thereby removing *636 the encumbrance on the property. Causes of action were asserted seeking damages and other relief against all defendants on grounds of slander of title, tortious interference with prospective economic advantage, conversion, and unjust enrichment.

Doyle, regarding the claims against him to be baseless, perfected his rights under the frivolous claims statute and Rule 1:4-8 by correspondence to Port-O-San's litigation counsel dated September 14, 2001 and a counterclaim against Port O San filed on September 20. Doyle's letter stated in relevant part:

The basis for my notice is that I, at the time of closing, was attorney for Skyview Realty, and had an obligation to ensure that my client received clear title to the property without any encumbrances.
The judgment against Port-O-San, clearly is an encumbrance on the title, and justified the title company in refusing to insure against the possible lien on the property.
A cursory check with your own attorney who represented Port O San at the closing will disclose that she consented to the escrow until said lien could be removed.
Evidently there is difficulty in removing the lien, due to the failure of the plaintiff, Teamsters Local Union No. 863, to respond to your inquiries.
However, it is obvious that I have no connection, legal or factual, with the Teamsters Union.
I have not slandered your title. I have not been unjustly enriched, I have not interfered with any economic advantage of yours, nor have I converted any of your funds.

In his September 14 letter, Doyle offered to place the funds in court. His offer was accepted by Port-O-San's litigation counsel as a condition to dismissal of the suit against him. However, Doyle subsequently determined that the transfer would be improvident, since it would be contrary to the terms of the escrow agreement, and that dismissal of suit was an inadequate remedy, since it would not dispositively resolve in Doyle's favor the claims against him, most particularly, that of conversion. He thus did not follow up on the offer, and matters continued.

An answer to the counterclaim was filed by Port-O-San on October 11, 2001, consisting of general denials, the assertion that Doyle "did not act properly in refusing to close title," and separate defenses based upon failure to state a claim, performance of all obligations by plaintiff, estoppel, unclean hands, waiver and laches. Additionally, Port-O-San reserved the right to assert that Doyle's counterclaim was frivolous.

Summary judgment was granted to Doyle by order dated May 10, 2002 when it was shown, without contradiction, that the escrowed funds remained in an account at Valley National Bank. At the hearing on the motion, Port-O-San's argument against summary judgment was based in large measure upon the evidentially unsupported assertion that Port-O-San's closing counsel had not consented to the creation of the escrow. The following colloquy occurred on that subject:

THE COURT: First of all, do we have anything from the counsel at the closing to say I didn't agree to this escrow?
[LITIGATION COUNSEL]: No.
* * *
THE COURT: ... It would have been real easy, I presume, for you, if you felt this really wasn't by consent, to get a certification from their prior attorney saying there wasn't any agreement.

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Cite This Page — Counsel Stack

Bluebook (online)
833 A.2d 633, 363 N.J. Super. 431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/port-o-san-corp-v-teamsters-local-union-no-863-njsuperctappdiv-2003.