The Estate of Sean King v. High Grade Beverage, Inc.

New Jersey Superior Court Appellate Division·Decided October 4, 2024·No. A-1419-22·Unpublished

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-1419-22

THE ESTATE OF SEAN KING and LISA KING, individually, and as Administratrix Ad Prosequendum on behalf of the ESTATE OF SEAN KING,

Plaintiffs-Appellants,

v.

HIGH GRADE BEVERAGE, INC., and HGB REALTY 2, LLC,

Defendants-Respondents,

and

ANTHONY DEMARCO, DENISE DEMARCO CRUTCHLEY, DIANA BATTAGLIA, JOSEPH HGB REALTY, LLC, ELIZABETH HGB REALTY, LLC, JOSEPH A. DEMARCO, and ELIZABETH DEMARCO,

Defendants.

Argued September 12, 2024 – Decided October 4, 2024

Before Judges Mawla, Natali, and Vinci.

On appeal from the Superior Court of New Jersey, Law Division, Morris County, Docket No. L-2048-19.

Matthew R. Parker argued the cause for appellant (Schenck, Price, Smith & King, LLP, attorneys; James A. Kassis, of counsel; Matthew R. Parker, on the briefs).

Joseph M. Gaul, Jr., argued the cause for respondent HGB Realty 2, LLC (Gaul, Baratta & Rosello, LLC, attorneys; Joseph M. Gaul, Jr., of counsel and on the brief).

PER CURIAM In this wrongful death action, plaintiffs, the Estate of Sean King and Lisa King, individually and as Administratrix Ad Prosequendum on behalf of the Estate of Sean King, challenge the court's December 1, 2022 order granting summary judgment and dismissing their claims against defendant HGB Realty 2, LLC. For the reasons that follow, we affirm.

I.

We begin by reviewing the facts in the motion record, considering them in a light most favorable to plaintiffs, the non-moving party. Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520, 540 (1995). In November 2017, decedent Sean King was employed by HGB as a maintenance worker when he received a

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fatal electric shock while attempting to replace a wall-mounted 277-volt emergency light fixture in anticipation of a fire inspection. The matter was referred to the Occupational Safety and Health Administration (OSHA) for investigation. OSHA determined decedent was working with "live" wires when he was electrocuted as the circuit breaker feeding the emergency light fixture had not been turned off.

In 2011, Joseph HGB Realty, LLC and Elizabeth HGB Realty, LLC, leased property located at 86 Canfield Avenue in Randolph (the Property) to High Grade Beverage (HGB). The Property "consists of a one-story, masonry, cold storage industrial complex comprised of approximately 72,600 square feet of warehouse, office and garage space . . . and the land consisting of approximately 15.91 acres . . . ." HGB acknowledged "it ha[d] inspected [the Property] and [was] fully familiar with its condition and is leasing the same in 'AS IS' condition."

The lease specified, "the [b]asic [r]ent payable by the [t]enant . . . is intended to be 'triple net' . . . and all other charges and expenses imposed upon the [l]eased [p]remises or incurred in connection with it[] . . . shall be paid by the [t]enant . . . ." Section 9.01 of the lease provided, in part: "The [t]enant

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shall keep the [l]eased [p]remises, including but not limited to, . . . electrical, . . . in good condition and repair . . . ."

According to defendant, Joseph and Elizabeth DeMarco, the individuals involved with Joseph HGB Realty, LLC and Elizabeth HGB Realty, LLC, "determined it was appropriate to change the corporate structure of the landlords from the 'Joseph' and 'Elizabeth' entities identified in the 2011 lease to this defendant," HGB Realty 2, LLC. As such, in 2016, defendant HGB Realty 2 was the entity that leased Property to HGB.

The 2016 lease concerned the same Property as the 2011 lease, was similarly "intended to be 'triple net,'" and stated, "all other charges and expenses imposed upon the [l]eased [p]remises or incurred in connection with its use, occupancy, care, maintenance, operation and control . . . shall be paid by the [t]enant . . . ." Additionally, Section 9.01 of the 2016 lease comparably provided, in part: "The [t]enant shall keep the [l]eased [p]remises, including but not limited to, . . . electrical, . . . in good condition and repair . . . ." In his deposition, the Chief Financial Officer of HGB Realty 2, Jeffery Epstein, stated there were no circumstances in which the tenant, HGB, was required to obtain approval from HGB Realty 2, as landlord, to perform maintenance on the Property.

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Perry Morris, an HGB employee for approximately thirty-one years, was the maintenance crew chief in July 2017. Morris was not a licensed electrician but did take a course in household wiring. While employed by HGB, Morris and his predecessor performed maintenance such as changing ballasts, repairing or replacing light fixtures, replacing a junction box, and "chang[ing] out a few breakers."

Prior to his retirement, Morris trained decedent for approximately two weeks in July 2017. Morris testified he showed decedent "the use of a tic trace or volt sensor and how to test batteries and continuity for a break in the line." Additionally, Morris stated there were two or three electrical panels at the Property, and when the building was first built, "there were three electrical contractors" who "didn't know what each of them w[ere] doing," resulting in circuit breaker panel labels that "weren't done right the first time." 1 Morris and another employee attempted to correct the labels "to the best of [their] ability" through "trial and error," and stated they were, "[f]or the most part," successful.

During his deposition, Morris was presented with a photograph of the circuit breaker label and stated he could not read the description of line thirty -

1 Based on this testimony, plaintiffs contend, and the court accepted for purposes of summary judgment, that the circuit breaker box issues predated the 2016 lease.

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six, the circuit identified as feeding the emergency light the decedent was working on when he was electrocuted. Testifying to the best of his recollection, Morris proceeded to explain the description on line thirty-six read "[s]omething like emergency light trailer dock . . . ." He further explained the breaker "also controlled a light in [another] office." Morris then testified the label on line thirty-six is legible in person, and he further recalled showing decedent which switch controlled which circuit breaker by "point[ing] to the card written on the door and then to the corresponding circuit breakers."

Plaintiff's engineer expert, Les Winter, P.E., issued a report in which he opined, within a reasonable degree of engineering certainty, the decedent's electrocution was caused by decedent's lack of training as an electrician and the "panelboard directory [being] non-compliant and unreliable." With respect to the panelboard, citing Morris' deposition testimony and photographs of the electrical panel, Winter opined line thirty-six on the panelboard directory was not "legibly identified" or "legibly marked" in violation of Section 408.4(A) and Section 110.22 of the National Electrical Code. Winter also noted, because "the fixture in question was not functioning and therefore not illuminated," decedent could not, through "trial and error testing, by turning off and on random circuit breakers," determine whether the fixture was deenergized.

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Following discovery, defendant HGB Realty 2 moved for summary judgment. After considering the parties' written submissions and oral arguments, the court granted defendant's motion, explained its reasoning in an oral opinion, and issued a conforming order that same day.

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