STATE OF NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION VS. ALSOL CORPORATION (29-2017, MIDDLESEX COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided November 13, 2019·No. A-3546-17T1·Published

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-3546-17T1

STATE OF NEW JERSEY DEPARTMENT OF ENVIRONMENTAL APPROVED FOR PUBLICATION PROTECTION, November 13, 2019 Plaintiff-Respondent, APPELLATE DIVISION

v.

ALSOL CORPORATION,

Defendant-Appellant.

Argued February 13, 2019 – Decided November 13, 2019

Before Judges Fuentes, Accurso, and Vernoia.

On appeal from the Superior Court of New Jersey, Law Division, Middlesex County, Municipal Appeal No. 29-2017.

Lawrence S. Berger argued the cause for appellant (Berger & Bornstein, LLC, attorneys; Lawrence S. Berger, on the briefs).

Robert Gregory Lamilla, Deputy Attorney General, argued the cause for respondent (Gurbir S. Grewal, Attorney General, attorney; Jason W. Rockwell, Assistant Attorney General, of counsel; Robert Gregory Lamilla, on the brief).

The opinion of the court was delivered by

FUENTES, P.J.A.D.

In this appeal, we are required to determine whether the Law Division

correctly decided that municipal courts have jurisdiction to impose civil

penalties in an enforcement action filed by the New Jersey Department of

Environmental Protection (DEP) pursuant to the Spill Compensation and

Control Act, N.J.S.A. 58:10-23.11 to -23.24 (the Spill Act). After reviewing

the record developed by the parties, we affirm. We conclude municipal courts

have jurisdiction pursuant to N.J.S.A. 58:10-23.11u(d) to impose civil

penalties under the Spill Act in a summary proceeding conducted pursuant to

the Penalty Enforcement Law of 1999, N.J.S.A 2A:58-10 to -12.

I

This issue arose when an employee of the DEP filed a complaint against

Alsol Corporation (Alsol) in the Milltown Municipal Court, using the "Special

Form of Complaint and Summons" prescribed by the Administrative Director

of the Courts. The summons contains a section that identified the complaining

witness as a representative of the DEP, who certified that

to the best of his/her knowledge or information and belief, the named defendant on or about [October 4, 2016] in Milltown . . . [,] County of Middlesex County, N.J., did commit the following offense:

Failure to remediate the property located at BL. 58 Lot 1.01 Ford Ave. & Main St. in violation of . . . N.J.A.C. 7:26C-2.3(a).

A-3546-17T1

This DEP regulation provides:

(a) Upon the occurrence of any of the events listed in N.J.A.C. 7:26C-2.2(a), the person who is responsible for conducting the remediation at a site pursuant to N.J.A.C. 7:26C-1.4(a) shall:

1. Hire and maintain a licensed site remediation professional, unless:

i. The remediation is being conducted partially or solely to satisfy the obligations under the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., is a priority site under the Government Performance and Results Act, 40 U.S.C. §§ 11101 et seq., and the U.S. Environmental Protection Agency is the lead agency for the remediation;

ii. The remediation is being conducted on a site that is listed on the National Priorities List pursuant to the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq., and the U.S. Environmental Protection Agency is the lead agency for the remediation; or

iii. The remediation is being conducted at a Federal facility;

2. Notify the Department, on a form found on the Department's website at www.nj.gov/dep/srp/srra/forms, of the name and license information of the licensed site remediation professional hired to conduct or oversee the remediation and the scope of the remediation, including the number of contaminated areas of concern and impacted media known at the time the form is submitted and determined pursuant to N.J.A.C. 7:26C-4.2, within 45 days after:

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i. May 7, 2012, when the earliest of the events listed at N.J.A.C. 7:26C-2.2(a) occurred prior to November 4, 2009; or

ii. The date of the occurrence of the earliest of the events listed at N.J.A.C. 7:26C-2.2(a), when the event occurred on or after November 4, 2009;

3. Conduct the remediation:

i. Without prior Department approval, except:

(1) If the Department directs otherwise;

(2) If the person is remediating the site, area of concern or site condition pursuant to N.J.A.C. 7:26C- 14;

(3) If the remediation is being conducted pursuant to (a)1ii or iii above, or the site is being remediated partially or solely to satisfy the obligations under the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., and is a priority site under the Government Performance and Results Act, 40 U.S.C. §§ 11101 et seq., regardless of whether the U.S. Environmental Protection Agency or the Department is the lead agency for the remediation; or;

(4) If the site is suspected or known to be contaminated with anthropogenic radionuclide contamination of any media;

ii. In accordance with N.J.A.C. 7:26C-1.2(a); and

iii. By addressing all deficiencies identified by the Department in any submittals made by the person or by a licensed site remediation professional on behalf of the person;

A-3546-17T1

4. Pay all applicable fees and oversight costs as required pursuant to N.J.A.C. 7:26C-4;

5. Establish a remediation funding source, if required, pursuant to N.J.A.C. 7:26C-5;

6. Provide the Department access to the contaminated site pursuant to N.J.A.C. 7:26C-8;

7. Provide the Department copies of all applicable documents concerning the remediation as required by this chapter and the Technical Requirements for Site Remediation rules, N.J.A.C. 7:26E, or upon request of the Department;

8. Meet the timeframes in this chapter and in the Technical Requirements for Site Remediation rules, N.J.A.C. 7:26E; and

9. Obtain and comply with all permits necessary for the remediation.

[N.J.A.C. 7:26C-2.3(a)(1) to (9).]

Despite the complexity and scope of activity covered by this regulatory

scheme, the summons issued by the DEP provided only the date Alsol

allegedly failed to remediate a particular property. When this matter came

before the Milltown Municipal Court, Alsol moved to dismiss the summons for

lack of subject matter jurisdiction. Alsol argued that municipal courts do not

have the authority to adjudicate the merits of an enforcement action brought by

the DEP involving alleged violations of the Spill Act. Represented by the

A-3546-17T1

Attorney General, the DEP argued that municipal courts have subject matter

jurisdiction under N.J.S.A. 58:10-23.11u(d), which provides:

Any person who violates a provision of P.L.1976, c.141 ([N.J.S.A.] 58:10-23.11 et seq.), or a court order issued pursuant thereto, or who fails to pay a civil administrative penalty in full or to agree to a schedule of payments therefor, shall be subject to a civil penalty not to exceed $50,000.00 per day for each violation, and each day’s continuance of the violation shall constitute a separate violation. Any penalty incurred under this subsection may be recovered with costs in a summary proceeding pursuant to the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 ([N.J.S.A.] 2A:58-10 et seq.) in the Superior Court or a municipal court. The Superior Court and the municipal courts shall have jurisdiction to impose a civil penalty for a violation of P.L.1976, c.141 ([N.J.S.A.] 58:10-23.11 et seq.) pursuant to this subsection and in accordance with the procedures set forth in the “Penalty Enforcement Law of 1999.”

[(Emphasis added).]

After considering the "extensive briefs and supporting documentation by

both parties[,]" the municipal court judge concluded that N.J.S.A. 58:10 -

23.11u(d) only confers municipal courts with jurisdiction to enforce civil

penalties "where a finding of liability has already been adjudicated." The

municipal court judge also rejected the DEP's interpretation of N.J.S.A. 58:10 -

23.11u(d) and held that municipal courts' jurisdiction in matters arising out of

the Spill Act are limited to conducting summary proceedings to enforce "a

penalty previously imposed by either the administrative law court or the

A-3546-17T1

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STATE OF NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION VS. ALSOL CORPORATION (29-2017, MIDDLESEX COUNTY AND STATEWIDE), (N.J. Ct. App. 2019).

STATE OF NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION VS. ALSOL CORPORATION (29-2017, MIDDLESEX COUNTY AND STATEWIDE) (STATE OF NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION VS. ALSOL CORPORATION (29-2017, MIDDLESEX COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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