SLAWOMIR KIELCZEWSKI v. BARBARA REED (C-000032-18, MORRIS COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedAugust 30, 2022
DocketA-1041-20
StatusUnpublished

This text of SLAWOMIR KIELCZEWSKI v. BARBARA REED (C-000032-18, MORRIS COUNTY AND STATEWIDE) (SLAWOMIR KIELCZEWSKI v. BARBARA REED (C-000032-18, MORRIS 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
SLAWOMIR KIELCZEWSKI v. BARBARA REED (C-000032-18, MORRIS COUNTY AND STATEWIDE), (N.J. Ct. App. 2022).

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-1041-20

SLAWOMIR KIELCZEWSKI,

Plaintiff-Appellant/ Cross-Respondent,

and

SLAWOMIR KIELCZEWSKI, d/b/a BE CONSTRUCTION, and BE CONSTRUCTION, d/b/a BE CONSTRUCTION CORPORATION,

Plaintiffs,

v.

BARBARA REED,

Defendant-Respondent/ Cross-Appellant,

RAFAL SKRZYPCZAK, SERHIY DROZDYAK, PIOTR CYBURA, BRAHMA CONSTRUCTION, H&S CONSTRUCTION AND MECHANICAL, HANNON FLOORS, M&M CONSTRUCTION COMPANY, PRECISION BUILDING AND CONSTRUCTION, LLC, SEAWOLF CONSTRUCTION, SISTERS OF CHARITY, TILCON NEW YORK, INC., UNIMAK LLC, VIACO CONSTRUCTION, WALLKILL GROUP, and YMCA OF THE ORANGES,

Defendants. ______________________________

DARIUS A. MARZEC,

Respondent. ______________________________

Argued March 16, 2022 – Decided August 30, 2022

Before Judges Gilson, Gooden Brown, and Gummer.

On appeal from the Superior Court of New Jersey, Chancery Division, Morris County, Docket No. C-000032-18.

David W. Fassett argued the cause for appellant/cross- respondent (Arseneault & Fassett, LLC, attorneys; David W. Fassett and Gregory D. Jones, on the briefs).

Daniel B. Tune argued the cause for respondent/cross- appellant (Martin & Tune, LLC, attorneys; Daniel B. Tune, of counsel and on the briefs).

Darius A. Marzec, respondent, argued the cause pro se.

A-1041-20 2 PER CURIAM

Plaintiff Slawomir Kielczewski appeals the $77,5691 judgment entered

against him on November 2, 2020, as sanctions for frivolous litigation.

Defendant Barbara Reed cross-appeals the June 4, 2020 order denying sanctions

against Kielczewski's former counsel, Darius Marzec. For the reasons that

follow, we reverse the order entering judgment against Kielczewski and affirm

the order denying sanctions against Marzec.

We glean these facts from the record. In 2018, Kielczewski filed a

complaint against Reed and others alleging numerous claims, including breach

of contract, breach of covenant of good faith and fair dealing, misappropriation

of trade secrets, breach of fiduciary duty, unjust enrichment, conversion, fraud,

tortious interference with prospective economic benefit, negligent

misrepresentation of material facts, and civil conspiracy, among other claims.

In the complaint, Kielczewski alleged that Reed had unlawfully taken

control of his company, Be Construction Corporation (Be Construction).

According to the complaint, Kielczewski formed Be Construction in 2013 and

transferred the then-existing contracts of his former company, Kielczewski

Corporation, to the new business. Kielczewski alleged that he authorized Reed,

1 We round all monetary amounts to the nearest dollar. A-1041-20 3 who was initially hired as a bookkeeper and office manager, to "handle

administrative aspects" of the new business because of his ailing health.

However, according to Kielczewski, Reed subsequently held herself out to be

the owner of the company and took control of its accounts and other property.

Reed filed a contesting answer with affirmative defenses and

counterclaims, alleging tortious interference with economic advantage,

defamation, and unjust enrichment. Reed claimed she was the sole

"incorporator," "director," "shareholder," and "registered agent" of Be

Construction. Reed's attorney also served Marzec with a Rule 1:4-8 notice and

demand letter (safe-harbor notice) asserting that the complaint was frivolous and

should be withdrawn. He included with the notice copies of canceled checks

representing purported payments from Reed to Kielczewski for company

vehicles and equipment. The notice also asserted that Kielczewski was estopped

from claiming ownership of the company due to his previous denials of

ownership. In support, the notice included interrogatory responses from

Kielczewski's 2015 divorce proceedings in which he denied ownership of Be

Construction.

Notwithstanding the safe-harbor notice, Kielczewski and Marzec elected

to proceed with the lawsuit. Kielczewski certified that he disputed the

A-1041-20 4 authenticity of the purported interrogatory responses, averring he had not

previously seen them. Later, Marzec certified that he had questioned whether

the interrogatory responses were even admissible, as they might have been

obtained in violation of the attorney-client privilege. Additionally, Kielczewski

showed Marzec a March 19, 2018 decision from the National Labor Relations

Board (NLRB), in which the NLRB had found Kielczewski owned Be

Construction. According to the NLRB:

About December 13, 2013, . . . B[e] Construction was established by . . . [Kielczewski Corporation] as a disguised continuation of [Kielczewski Corporation] for the purpose of evading its responsibilities under the [National Labor Relations Act (Act)]. . . . [Kielczewski Corporation] and . . . B[e] Construction are, and have been at all material times, alter egos and a single employer within the meaning of the Act.

Subsequently, the trial judge allowed Marzec to withdraw as counsel

because Kielczewski had accrued more than $50,000 in overdue legal fees.

Thereafter, Reed moved for summary judgment. In support, Reed submitted a

deposition transcript showing that Kielczewski had denied ownership of Be

Construction under oath in another lawsuit involving a bank. She also presented

documents from Kielczewski's divorce proceedings, tax returns, and application

for social security benefits further demonstrating he had previously denied

ownership. Kielczewski opposed the motion pro se and submitted an affidavit

A-1041-20 5 in which he admitted "misrepresent[ing his] relationship with Be Construction

. . . in the past in order to avoid union obligations." However, Kielczewski

averred that Reed "was never the owner of Be Construction" but only "agreed

that she would . . . act as a stand in owner" so that he could "avoid labor union

obligations." He also submitted a copy of the NLRB decision.

During oral argument on the summary judgment motion, the judge

acknowledged she was "struggling with" whether the NLRB decision precluded

summary judgment in the matter. After defense counsel presented his

arguments, the judge explained:

I agree with almost everything you've said. And a party cannot create a genuine issue of material fact by simply offering a sworn statement that contradicts earlier sworn testimony.

....

. . . However, there's a finding in the . . . NLRB case. And that's a court finding. That he was the owner. . . . [I]s that sufficient in and of itself to raise a genuine issue of material fact[] precluding summary judgment.

I'm not saying he . . . will prevail or won't prevail at trial. I understand that he has a very high burden given these facts. But does that preclude this [c]ourt from granting summary judgment?

A-1041-20 6 In response, defense counsel argued Reed was not bound by the NLRB

decision because she "was not a party" to the case. In turn, Kielczewski argued

that the NLRB decision precluded the court from granting Reed summary

judgment, citing a case from 1914, which purportedly stated that "two sources

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SLAWOMIR KIELCZEWSKI v. BARBARA REED (C-000032-18, MORRIS COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/slawomir-kielczewski-v-barbara-reed-c-000032-18-morris-county-and-njsuperctappdiv-2022.