State of New Jersey, Etc. v. 1.581-Acres of Land in the Borough of Point Pleasant Beach

CourtNew Jersey Superior Court Appellate Division
DecidedNovember 4, 2024
DocketA-1761-22
StatusUnpublished

This text of State of New Jersey, Etc. v. 1.581-Acres of Land in the Borough of Point Pleasant Beach (State of New Jersey, Etc. v. 1.581-Acres of Land in the Borough of Point Pleasant Beach) 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
State of New Jersey, Etc. v. 1.581-Acres of Land in the Borough of Point Pleasant Beach, (N.J. Ct. App. 2024).

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-1761-22

STATE OF NEW JERSEY, by the DEPARTMENT OF ENVIRONMENTAL PROTECTION,

Plaintiff-Appellant,

v.

1.581-ACRES OF LAND IN THE BOROUGH OF POINT PLEASANT BEACH, OCEAN COUNTY, NEW JERSEY, and BAY POINTE DUNES HOMEOWNERS ASSOCIATION, INC., a New Jersey Corporation, Fee Owner,

Defendants-Respondents. _______________________________

Submitted October 9, 2024 – Decided November 4, 2024

Before Judges Mayer, Rose and DeAlmeida.

On appeal from the Superior Court of New Jersey, Law Division, Ocean County, Docket No. L-2898-17.

Rutter & Roy, LLP, attorneys for appellant (Brian W. Keatts, on the briefs). Bathgate, Wegener & Wolf, attorneys for respondent Bay Point Dunes Homeowners Association, Inc. (Peter H. Wegener, on the brief).

PER CURIAM

Plaintiff New Jersey Department of Environmental Protection

(Department) appeals from a September 27, 2022 jury verdict awarding

$964,000 to defendant Bay Pointe Dunes Homeowners Association, Inc. (Bay

Pointe) as just compensation for the Department's taking of 1.581 acres of

beachfront property owned by Bay Pointe (Property). The Department also

appeals from a January 4, 2023 order denying its motion for a new trial or,

alternatively, remittitur. We affirm both orders on appeal.

We recite the facts from the trial record. Bay Pointe owns property in

Point Pleasant Beach, known as Lots 2, 3, and 4 in Block 179.04. The

Department sought to construct a dune and berm system to protect coastal

communities from storm damage (Project). To complete the Project, the

Department required a Storm Damage Reduction Easement (SDRE) across the

Property.

The Department exercised the power of eminent domain and filed a

condemnation action to acquire the Property to complete the Project. The parties

A-1761-22 2 agreed the valuation date for the Department's taking of the Property was

October 16, 2017.

As of the taking date, there were no structures on the Property. The parties

acknowledged the Property was once a privately owned beach. However, the

Department used federal funds for the Project, the parties acknowledged the

Property allowed unrestricted beach accessible to the general public.

The Project included construction of a twenty-two-foot dune and

extension of existing berms. According to the Department, the Project would

create 42,000 square feet of additional beach area.1 Further, under the Project,

the Department would renourish the area, if needed, every four years at no cost

to Bay Pointe.

Because the parties did not agree on the amount of compensation due Bay

Pointe as a result of the Department's taking of the Property, the matter was

scheduled for a trial. Prior to trial, the parties exchanged expert appraisal reports

proffering divergent opinions regarding the value, or "just compensation," to be

paid to Bay Pointe. In anticipation of trial, the Department retained Donald

1 The Department proffered evidence that the Property's usable beach area would increase by thirty-eight percent upon the Project's completion. A-1761-22 3 Moliver, Ph.D., as its expert appraiser and Bay Pointe retained Robert Gagliano

as its expert appraiser.

Prior to trial, the Department moved in limine to preclude Gagliano's use

of an "Easement Impact Chart" (Chart). In partially granting the Department's

motion, the judge prohibited Gagliano from referring to any outside expert

resources in generating the Chart. Further, the judge allowed Gagliano to use

the Chart so long as Gagliano did not mention the name of the Chart's original

creator or the creator's article explaining the purpose of the Chart. The judge

also permitted Gagliano to tell the jury the Chart reflected his methodology in

arriving at an award of just compensation.

The jury heard testimony from September 20, 2022 through September

27, 2022. In addition to the expert appraisal testimony, the jury heard testimony

from Dr. Stewart Farrell, the Department's expert in marine science and coastal

research. Dr. Farrell described the benefits to be conferred on the Property as a

result of the Project. Specifically, Dr. Farrell explained the Project's enhanced

storm damage protection for the area.

The Department also presented testimony from Keith Watson, who

worked at the United States Army Corps of Engineers and managed the Project.

Watson testified the SDRE required public access to the Property based on the

A-1761-22 4 use of federal funds to complete the Project. Watson agreed the SDRE was a

"perpetual and assignable easement . . . to . . . operate, maintain, . . . and replace

a public beach." Watson told the jury the "perpetual" language meant the

Property was "subject to public use and access in perpetuity."

The Department also offered testimony from William Dixon, who was the

director of the Department's Division of Coastal Engineering. Dixon explained

the SDRE allowed Bay Pointe to operate the beach subject to the right of public

access. According to Dixon, Bay Pointe could not profit from any fees collected

for the public's use of the Property.

In support of its valuation for the Property, the Department presented

Moliver's appraisal testimony. Moliver admitted the Property's only reasonable

use after the Department's taking was as a public beach, and the Property lacked

any economic use "on a commercial basis." Further, before the taking, Moliver

agreed Bay Pointe "could always sell the [P]roperty for a private use."

According to Moliver, the Property's market value prior to the taking was

$880,000, and its market value after the taking, with mitigation,2 was $923,700.

2 In his appraisal report, Moliver explained mitigation "consider[ed] the added benefit of the expanded beach area that [would] be constructed as part of the Project and a Tidelands license that the owner may obtain from the [S]tate to use the new beach area for its operation."

A-1761-22 5 Using these values, Moliver concluded $6,300 represented just compensation

for the Property.

In support of its valuation for the Property, Bay Pointe presented

Gagliano's testimony. In arriving at his calculation of just compensation,

Gagliano prepared an appraisal report and Chart.3 According to Gagliano, the

Property lost ninety-five percent of its value as a result of the Project.

Specifically, Gagliano testified the market value of the Property before the

taking was $1,530,000, and the market value after the taking was $80,000. Thus,

he calculated $1,450,000 as just compensation for the Department's taking of

the Property.

After considering the testimony, reviewing the documentary evidence,

and hearing the judge's instructions, the jury awarded the sum of $964,000 to

Bay Pointe representing just compensation for the Property.

Three weeks later, the Department filed a motion for a new trial or,

alternatively, remittitur. In a January 4, 2023 order, the judge denied the motion

in its entirety.

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State of New Jersey, Etc. v. 1.581-Acres of Land in the Borough of Point Pleasant Beach, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-new-jersey-etc-v-1581-acres-of-land-in-the-borough-of-point-njsuperctappdiv-2024.