State v. Sacco

577 A.2d 1333, 242 N.J. Super. 699
CourtNew Jersey Superior Court Appellate Division
DecidedMay 10, 1990
StatusPublished
Cited by2 cases

This text of 577 A.2d 1333 (State v. Sacco) 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 v. Sacco, 577 A.2d 1333, 242 N.J. Super. 699 (N.J. Ct. App. 1990).

Opinion

242 N.J. Super. 699 (1990)
577 A.2d 1333

STATE OF NEW YORK AND THOMAS C. JORLING, ET AL., PLAINTIFFS,
v.
FRANK SACCO, LILLIAN SACCO, MATERIAL TRANSPORT SERVICE AND DART CORPORATION, DEFENDANTS.

Superior Court of New Jersey, Law Division Bergen County.

Decided May 10, 1990.

*700 Joseph R. Fischer, for plaintiffs (Clemente, Strenk & Kiernan, attorneys).

Alan Liebowitz, for defendants (Liebowitz & Liebowitz, attorneys).

LAWRENCE D. SMITH, J.S.C.

The essential issue addressed in this opinion is whether the "penal exception" to the Full Faith and Credit Clause of the United States Constitution precludes enforcement of a series of New York judgements which imposed substantial sanctions on defendants for contempt of court based on their failure to comply with an earlier judgement. For the reasons expressed herein, I find the sanctions involved, because they were intended to be coercive rather than punitive, are entitled to full faith and credit.

Litigation was instituted in New York by the State of New York and Thomas C. Jorling (Commissioner of the New York State Department of Environmental Conservation (DEC)) against Frank Sacco, Lillian Sacco, Material Transport Service, Reynard Barone and Sarkis Khourouzian, all of whom were the owners and operators of a landfill in Tuxedo, New York. The last two named defendants in the New York litigation are not parties to the instant proceeding. The purpose of the action was to secure closure of that landfill. I am informed that Dart Corporation subsequently became involved after it acquired the *701 assets of Material Transport and shortly before the entry of the initial judgement.[1]

Frank Sacco, Lillian Sacco and Material Transport Service all agreed to appear pro se in the New York litigation, although only Frank Sacco subsequently actually appeared at some of the ensuing court proceedings. After a 12-day hearing, a preliminary injunction was issued. Thereafter, a settlement was reached whereby all defendants agreed to voluntarily discontinue the landfill operation. The DEC then sought, in addition, an order directing defendants to post a bond to cover the estimated expenses of such additional testing, monitoring and remedial measures as might be required to provide "maximum protection for the public" in effectuating closure of the landfill. Expert testimony was introduced to show the anticipated and potential costs involved and the court ordered that defendants post a bond or other acceptable security in the amount of 4.5 million dollars to ensure the expenses of proper and appropriate closure. Judgement was entered on August 25, 1988, the court directing that a bond be posted within ten days.

Defendants in the present litigation chose neither to post a bond nor to file a timely appeal.[2] The State of New York thereafter secured an order to show cause seeking to impose sanctions based upon defendants' failure to comply with the court's earlier judgement. Defendants were directed to appear for a hearing the purpose of which was styled as a hearing "to punish defendants ... for a contempt of court." The content *702 of the order to show cause noted that the potential "punishment" could "consist of fine or imprisonment, or both, according to law."

All of defendants were served with the order to show cause. On November 3, 1988, Judge Hickman found defendants had "committed the offense" and were "guilty of the misconduct and contempt of court charged against them." He further found that the misconduct of defendants "was calculated to and did actually defeat, impair, impede and prejudice the rights and remedies of the plaintiffs." He fined defendants, prospectively, in the sum of $1,000 a day until such time as the mandated bond or acceptable security was posted. Accumulated fines were later reduced to three separate money judgements, each of which was entered against all of the present defendants. On November 28, 1988, judgement was entered in the sum of $25,000; on February 27, 1989, judgement was entered in the sum of $75,000; on July 9, 1989, judgement was entered in the sum of $124,000.

In this litigation, plaintiffs contend that full faith and credit mandates recognition of New York's monetary judgements. Defendants contend that those judgements are founded on "severe monetary penalties," denominated by defendants as "punishment for failure to post the bond," and that they should not be afforded cognizance because they should be viewed, in legal contemplation, as "penal" in nature.[3] Defendants have not introduced any proofs which would suggest any jurisdictional deficiency associated with the New York proceedings and, therefore, have not sustained their burden of demonstrating an absence of jurisdiction. Philadelphia v. Wheeler, 192 N.J. Super. *703 616, 619, 471 A.2d 821 (Law Div. 1983). See also Landis v. Kolsky, 81 N.J. 430, 435, 409 A.2d 276 (1979). Further, the proofs show proper service at all phases of the New York litigation. Nor have defendants in any fashion attempted to suggest that they did not have the ability to post the bond decreed. Unless the penal exception applies, the New York judgements are entitled to full faith and credit.

Article IV, § 1 of the United States Constitution provides that "Full Faith and Credit shall be given in each State to the public Acts, Records and Judicial Proceedings of every other State." The purpose of the Full Faith and Credit Clause is to ensure that a judgement is given the same conclusive effect in every State as in the State in which the judgement originally was rendered. Magnolia Petroleum Co. v. Hunt, 320 U.S. 430, 438, 64 S.Ct. 208, 213, 88 L.Ed. 149 (1943); Philadelphia v. Austin, 86 N.J. 55, 58, 429 A.2d 568 (1981). Together with several other constitutional provisions, the Full Faith and Credit Clause subserves the objective of integrating the states as independent sovereigns into a single nation so that a just claim can be enforced in each of the states regardless of its state of origin. City of Philadelphia v. Bauer, 97 N.J. 372, 377, 478 A.2d 773 (1984); Milwaukee Cty. v. M.E. White Co., 296 U.S. 268, 276-277, 56 S.Ct. 229, 233-234, 80 L.Ed. 220, 228 (1935).

The "penal exception" to the Full Faith and Credit Clause has its source in American jurisprudence in a statement made by Chief Justice Marshall in The Antelope, 23 U.S. 66, 123 (10 Wheat.), 6 L.Ed. 268 (1825). In The Antelope, Chief Justice Marshall remarked that "[t]he courts of no country execute the penal laws of another." The penal law exception "applies not only to prosecutions and sentences for crimes and misdemeanors, but to all suits in favor of the State for the recovery of pecuniary penalties for any violations of its statutes for the protection of its revenue, or other municipal laws, and to all judgments for such penalties." Wisconsin v. Pelican Ins. Co., 127 U.S. 265, 290, 8 S.Ct. 1370, 1374, 32 L.Ed. 239 (1888). See *704 also, Philadelphia v. Austin, supra, 86 N.J. at 59, 429 A.2d 568.

Plaintiffs, relying on City of Philadelphia v. Austin, supra, contend that even if the sanctions imposed by the New York court were penalties, once those penalties were reduced to money judgements, the penal law exception was rendered inapplicable. Austin,

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577 A.2d 1333, 242 N.J. Super. 699, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-sacco-njsuperctappdiv-1990.