Studio 45 Discotheque, Inc., Etc. v. State of New Jersey

CourtNew Jersey Superior Court Appellate Division
DecidedNovember 13, 2024
DocketA-1500-22
StatusUnpublished

This text of Studio 45 Discotheque, Inc., Etc. v. State of New Jersey (Studio 45 Discotheque, Inc., Etc. v. State of New Jersey) 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
Studio 45 Discotheque, Inc., Etc. v. State of New Jersey, (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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-1500-22

STUDIO 45 DISCOTHEQUE, INC., owned and operated by EDUARDO GONZALEZ,

Plaintiff-Appellant,

v.

STATE OF NEW JERSEY, HUDSON COUNTY PROSECUTOR'S OFFICE, and UNION CITY POLICE DEPARTMENT,

Defendants-Respondents. ___________________________

Submitted October 16, 2024 – Decided November 13, 2024

Before Judges Gilson, Firko, and Bishop-Thompson.

On appeal from the Superior Court of New Jersey, Law Division, Hudson County, Docket No. L-4458-20.

Yasmin Estrella, attorney for appellant.

Matthew J. Platkin, attorney for respondents State of New Jersey and Hudson County Prosecutor's Office (Donna Arons, Assistant Attorney General, of counsel; Phoenix N. Meyers, Deputy Attorney General, on the brief).

Sheffet and Dvorin, PC, attorneys for respondent Union City Police Department (Ethan Jesse Sheffet, on the brief).

PER CURIAM

Plaintiff Studio 45 Discotheque, Inc. and Eduardo Gonzalez appeal from:

(1) the March 11, 2022 order dismissing the second amended complaint against

defendant Hudson County Prosecutors Officer (HCPO) for failure to state a

claim; (2) the June 15, 2022 order denying his motion to reconsider the March

11, 2022 order; (3) the September 9, 2022 order dismissing default against

defendant Union City Police Department (UCPD) and allowing it time to

respond because UCPD was not properly named and the second amended

complaint was not properly served on the clerk; and (4) the December 8, 2022

order dismissing the second amended complaint against UCPD and denying his

motion to amend the second amended complaint to name the City of Union City

as a direct defendant. We affirm all of the orders under review.

I.

Factual Background

Gonzalez operated an after-hours bar and was under investigation for

selling alcohol without a license. On June 1, 2010, at approximately 2:00 a.m.,

A-1500-22 2 UCPD executed a warrant to search Studio 45 for violations of the Alcoholic

Beverage Control (ABC) Act,1 namely, the sale of alcoholic beverages without

a license. Gonzalez owned and operated Studio 45. The UCPD seized bottles

of beer, alcohol, drink mixers, non-alcoholic beverages, kitchen equipment, bar

furniture, and electronic equipment. The UCPD kept control of the premises.

The legality of the seizure was never challenged.

Gonzalez was charged with multiple fourth-degree offenses for the illegal

sale and distribution of alcoholic beverages without a license and maintaining a

nuisance. On June 22, 2012, he was ultimately convicted on fourth-degree

charges of distributing alcohol without a license and sentenced to three years'

probation.

Meanwhile, on August 18, 2010, seventy-nine days after the property was

seized, Gonzalez submitted a Request for Return of Property form to the HCPO,

requesting the return of property seized from Studio 45. The form named the

"Union City Municipal Court" as the entity which seized the property.

1 N.J.S.A. 33:1-1 to -103. The ABC Act established the Division of Alcohol Beverage Control to "strictly regulate alcoholic beverages to protect the health, safety and welfare of the people of this State." N.J.S.A. 33:1-3.1(b)(1). The ABC Act also directs officers to "investigate, under proper search warrant when necessary," whenever they believe there is reasonable grounds to believe persons are committing or have committed a misdemeanor under the ABC Act. N.J.S.A. 33:1-66(a). A-1500-22 3 On August 27, 2010, eighty-eight days after seizure of the property,

Gonzalez filed a Tort Claims Act (TCA) notice with the City of Union City,

alleging loss of business, income, and salary, due to the property seizure and

claiming $10 million in damages. In the TCA notice, Gonzalez alleged that the

police "planted, fabricated, adultered [sic], what they later claimed were

alcoholic beverages in the premises" at the direction of the Union City mayor

and UCPD with the "expressed objective of closing the business" and destroying

his "livelihood and earnings." The TCA notice named the City of Union City,

its mayor, its Chief of Police of the UCPD, and the "[c]ommissioners" as the

parties at fault.

The TCA notice described Gonzalez's injuries as "[p]sychological and

mental distress, injuries, anguish, humiliation, depression, anxiety, panic

attack," and loss of "property and . . . profits of the[] property, both present and

in [the] future." Gonzalez estimated the value of the property was "one million

dollars." He also claimed his wages were $300,000.00 per week as manager of

Studio 45, and his wages were lost "forever." The form was not signed.

A-1500-22 4 After a forfeiture action 2 brought by HCPO under N.J.S.A. 2C:64-1 to -13

was dismissed when the State failed to appear at the June 26, 2012 hearing,

Gonzalez moved to "repossess" the seized property, while his criminal appeal

was pending.

On October 24, 2012, HCPO attempted to reinstate the forfeiture action.

On December 7, 2012, HCPO's motion to reinstate the forfeiture action was

denied. On January 11, 2013, the court denied Gonzalez's motion to "repossess"

the seized property due to the pending appeal of his criminal conviction. The

court ordered that "all evidence shall continue in possession of [the] State until

appellate proceedings are exhausted."

After his conviction was affirmed, State v. Gonzalez, No. A-5981-11

(App. Div. Oct. 25, 2013), Gonzalez again moved to repossess the seized

property. On June 20, 2014, the motion was again denied. On July 25, 2014,

Gonzalez's motion for reconsideration was denied. In 2015, Gonzalez appealed

to this court from the denial of his motion. On March 4, 2016, we affirmed

denial of Gonzalez's motion to compel the State to compel return of the property,

State v. Studio 45 Discotheque, Inc., A-0247-14 (App. Div. Mar. 4, 2016). We

2 Docket No. HUD-L-4600-10. The forfeiture matter was filed while the criminal matter was pending. A-1500-22 5 determined that the seized property was being held "temporarily" in accordance

with a Directive issued by the Office of the Attorney General, which required

the State to retain evidence for five years "from the date of conviction or . . .

expiration of sentence, whichever is later." See Off. of the Att'y Gen., Law Enf't

Directive No. 2011-1, Attorney General Guidelines for the Retention of

Evidence (rev. Jan. 6, 2011). Thus, the seized property could not be released

until June 22, 2020—five years after Gonzalez's sentence was complete.

On August 28, 2020, after the five-year period expired, Gonzalez sent an

email to the HCPO requesting return of the seized property. He attached the

inventory of seized items prepared on August 18, 2020. On October 2, 2020,

Gonzalez followed up in an email asking "[w]hen should we expect the property

to be returned . . . ?" Following this email, Gonzalez "assumed that the [HCPO]

was not intending to return [his] property."

On December 4, 2020, Gonzalez filed a motion seeking an order

"commanding" the HCPO "and/or [UCPD] to release all property that was seized

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Studio 45 Discotheque, Inc., Etc. v. State of New Jersey, Counsel Stack Legal Research, https://law.counselstack.com/opinion/studio-45-discotheque-inc-etc-v-state-of-new-jersey-njsuperctappdiv-2024.