SISTERS OF CHARITY OF SAINT ELIZABETH VS. TOWNSHIP OF MORRIS (L-0975-20, MORRIS COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided June 24, 2021·No. A-0226-20·Unpublished

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-0226-20

SISTERS OF CHARITY OF SAINT ELIZABETH,

Plaintiff-Respondent,

v.

TOWNSHIP OF MORRIS and THE TOWNSHIP COMMITTEE OF THE TOWNSHIP OF MORRIS,

Defendants-Appellants.

Submitted June 8, 2021 – Decided June 24, 20212 Before Judges Yannotti, Haas and Natali.

On appeal from the Superior Court of New Jersey, Law Division, Morris County, Docket No. L-0975-20.

Mills & Mills, attorneys for appellants (John M. Mills, III, of counsel and on the briefs).

Hill Wallack LLP, attorneys for respondent (Thomas F.

Carroll, III, of counsel and on the brief).

PER CURIAM

Defendants Township of Morris (Morris) and the Township Committee of Morris appeal from the Law Division's August 11, 2020 order requiring them "to immediately accept ownership, maintenance[,] and control of [a] sewer pump and force main" currently owned and operated by plaintiff Sisters of Charity of Saint Elizabeth in the Borough of Florham Park (Florham Park). After carefully reviewing the record, we conclude the trial court erred by: (1) issuing a permanent injunction on the return date of an order to show cause, and (2) conducting this matter as a summary proceeding under Rule 4:67-1(a) and thereby failing to develop the meager record and properly address the many material disputes of fact existing between the parties. Therefore, we vacate the portion of August 11, 2020 order directing defendants to assume ownership, maintenance, and control of plaintiff's pump station and force main, and remand for further proceedings.

I.

We begin by reciting the barebone facts presented in the record on appeal.

In doing so, we also point out the deficiencies in that record and identify the additional facts that should have been developed before the trial court considered the matter on its merits.

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Plaintiff is a religious organization that owns 151.77 acres of property that straddles Morris and Florham Park. The largest portion of the property, 101.79 acres, lies in Florham Park, and the remaining 49.98 acres are in Morris. Plaintiff owns a convent, a high school, a college, student housing, and other residences on its Florham Park property.

Florham Park has its own sewer treatment system, as does Morris.

Nevertheless, Florham Park is located within Morris' "sewer service area" as approved by the New Jersey Department of Environmental Protection. Morris operates a sewer treatment plant known as the Woodland Sewage Treatment Plant.

Plaintiff previously owned and operated its own sewer treatment plant for the effluent it generated on its Florham Park property. However, in 1981, plaintiff sought to send the effluent to the Florham Park and Morris sewer systems. Only Morris would allow plaintiff access to its system.

On July 28, 1981, plaintiff, Morris, and Florham Park entered into a written contract permitting plaintiff to connect to the Morris sewer system. Under the contract's terms, plaintiff agreed to construct a sewer pump station and force main to deliver its effluent to the Morris system. Plaintiff would own this new system and would operate it as a private utility.

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Plaintiff further agreed that "[n]either [Morris, Florham Park], nor the [Florham Park Sewerage Authority (FPSA)] will, under any circumstances, be responsible for the construction, maintenance or operation of [plaintiff's] System or its connection to the [Morris] System." (emphasis added). However, the agreement stated that Florham Park had the right to "demand" that plaintiff's system "be disconnected from the [Morris] System and connected to the FPSA System" if Florham Park extended its system to a road adjacent to plaintiff's property.

Plaintiff retained a private company to operate the pump station and force main in Florham Park. However, it did not identify this company in its trial court papers and its attorney did not do so at oral argument. While plaintiff alleged in its complaint that the Board of Public Utilities did not want the system to be owned and operated by it, plaintiff did not submit any written evidence to support this assertion and its attorney conceded at oral argument that he did not "think there's been any threat that they've been shut down."

Indeed, in the forty years that plaintiff has owned and operated its system, plaintiff also has used its pump station and force main to transport effluent from at least two other entities in Florham Park to the Morris sewer system. These

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entities include the Morris County Golf Club and a housing development known as The Villa at Florham Park. 1 On June 12, 2017, plaintiff contracted with Toll Brothers, a construction company, to sell it a "portion" of its Florham Park property. According to the complaint, Toll Brothers proposed to build 198 units of multi-family housing on that property and set aside twenty percent of those units for "low and moderate income households."

Plaintiff did not provide the trial court with a copy of its contract of sale with Toll Brothers or any other related documents. At oral argument, the trial court acknowledged that without those documents, it had no basis for knowing whether plaintiff and Toll Brothers had made any agreement concerning the provision of sewer services to the development site or whether plaintiff's "contract with Toll Brothers may be in peril" if plaintiff did not immediately receive the permanent injunctive relief it sought in this case. At the time the August 11, 2020 order that is the subject of this appeal was entered, no closing on the sale of the property had occurred and nothing in the record indicates

1 While plaintiff asserts that the 1981 agreement was amended to permit it to add the golf club and housing development to its system, these amendments were not submitted to the trial court.

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whether there was any deadline by which such a closing had to take place in order for the sale to be consummated.

On October 31, 2018, the Law Division entered a Final Judgment of Compliance and Repose in a Mt. Laurel 2 dispute between Morris and the Fair Share Housing Center (FSHC). Under the terms of the settlement agreement that formed the basis for that judgment, Morris agreed to rezone a portion of plaintiff's property in that township for affordable housing. Although not stated in the settlement agreement, Morris asserted that the effluent generated by that development would be accepted into the Morris sewer system by gravity flow and without the need for a separate pump station or force main.

On March 7, 2019, the Law Division entered a similar judgment resolving a Mt. Laurel lawsuit between Florham Park and the FSHC. Under the terms of a July 28, 2017 settlement agreement that resulted in the judgment in that case, Florham Park agreed to rezone approximately twenty-two acres of the land plaintiff owned in that borough for affordable housing. The settlement stated there was a plan that twenty percent of the housing on the site would be used for "affordable dwelling units." Neither the settlement agreement nor the judgment said anything about plaintiff's or Florham Park's responsibility to provide sewer

2 In re Adoption of N.J.A.C. 5:96 and 5:97, 221 N.J. 1 (2015).

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service to, or operate the pump station and force main for the benefit of, the Toll Brothers development.

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SISTERS OF CHARITY OF SAINT ELIZABETH VS. TOWNSHIP OF MORRIS (L-0975-20, MORRIS COUNTY AND STATEWIDE), (N.J. Ct. App. 2021).

SISTERS OF CHARITY OF SAINT ELIZABETH VS. TOWNSHIP OF MORRIS (L-0975-20, MORRIS COUNTY AND STATEWIDE) (SISTERS OF CHARITY OF SAINT ELIZABETH VS. TOWNSHIP OF MORRIS (L-0975-20, MORRIS COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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