TJM ATLANTIC CITY MANAGEMENT LLC, ETC. VS. SCHINDLER ELEVATOR CORPORATION (C-000029-17, ATLANTIC COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided January 27, 2020·No. A-0343-17T2·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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-0343-17T2

TJM ATLANTIC CITY MANAGEMENT LLC, d/b/a THE CLARIDGE HOTEL,

Plaintiff-Appellant,

v.

SCHINDLER ELEVATOR CORPORATION,

Defendant-Respondent.

Argued October 31, 2018 – Decided January 27, 2020 Before Judges Fuentes, Accurso and Moynihan.

On appeal from the Superior Court of New Jersey, Chancery Division, Atlantic County, Docket No. C-

000029-17.

Douglas G. Leney and Jeffrey Nicholas Medio argued the cause for appellant (Archer & Greiner PC, and Jeffrey Nicholas Medio, attorneys; Douglas G. Leney and Jeffrey Nicholas Medio, on the briefs).

James L. Sonageri argued the cause for respondent (Sonageri & Fallon, LLC, attorneys; James L. Sonageri, on the brief).

The opinion of the court was delivered by FUENTES, P.J.A.D.

In this appeal, the trial court found the Claridge Hotel in Atlantic City (Claridge) and the Schindler Elevator Corporation (Schindler) reached an enforceable settlement of litigation involving cross-claims of breach of contract. Claridge does not agree with that finding. After reviewing the record and based on prevailing legal standards, we affirm.

I

On March 3, 2014, Claridge and Schindler entered into a contract through which Schindler agreed to provide maintenance, cleaning, testing, and other related services on Claridge's elevators. On February 17, 2017, Jeffrey Medio, Claridge's in-house counsel, sent an email to two Schindler representatives confirming Claridge's prior counsel had notified Schindler that it was not renewing its elevator service contract. Medio also wrote:

The purpose of this email is to notify you and your firm that your employees and agents no longer have access to the Claridge Hotel. Accordingly, no Schindler Elevator employees or agents have permission to be on the premises. Any employees or agents on the premises will be considered trespassers.

A-0343-17T2

That same day, Schindler employees entered Claridge's property and removed technological components identified as "SIM chips" from seven Claridge elevators. In an email dated February 28, 2017, Medio apprised Schindler that it considered the employees who removed this technology trespassers and demanded the return of the SIM chips "on or before March 2, 2017." Schindler did not return the SIM chips.

On April 7, 2017, Claridge filed a complaint and order to show cause (OTSC) against Schindler in the Atlantic County Chancery Division, General Equity Part alleging: (1) breach of contract; (2) breach of good faith and fair dealing; (3) trespass to real property; (4) trespass to chattels; (5) conversion; (6) tortious interference with an economic relationship; and (7) specific performance. On April 6, 2017, Schindler filed a two-count complaint against Claridge in the Morris County Law Division alleging breach of contract.

Claridge's cause of action came before the General Equity judge in Atlantic County on April 11, 2017, the return date of the OTSC. The judge granted Claridge's application for a temporary restraining order (TRO) against Schindler, enjoining it from disposing or modifying the SIM cards and related components or "wiring diagrams corresponding to the Schindler-manufactured

A-0343-17T2

elevators located at [Claridge's] property[.]" The judge scheduled a hearing on April 18, 2017 to consider whether to modify or vacate the TRO.

These procedural safeguards proved to be unnecessary. The parties reached a purported settlement agreement on the day the judge scheduled the hearing. In response to the judge's request, the attorney representing Schindler placed on the record the following terms of the settlement agreement:

SCHINDLER'S COUNSEL: [T]he parties have agreed that Schindler will not return the SRM cards or SIM cards to the Claridge for use in the elevators. However, Schindler has agreed to provide a software . . . upgrade for the seven Schindler elevators at the Claridge. The Claridge has agreed to pay Schindler $5,000.00 per elevator for the total of $35,000.00 for the software upgrade to be completed. We have discussed timing and we have agreed to put an outside date for the completion of the software upgrades of June 2, 2017.

We have also agreed that we will bill Claridge for the software upgrades at a higher amount, which will resolve the settlement litigation.

The total amount that Claridge will pay Schindler will be $100,000.00, but Schindler will bill it to the Claridge as $100,000.00 representing the cost of the software upgrades for the seven elevators.

All temporary restraints will be vacated. We will exchange mutual releases. I will prepare a settlement agreement and mutual release for review by counsel.

And upon that, we will then execute a stipulation of dismissal with prejudice of this Chancery litigation.

A-0343-17T2

And then I will also prepare a stipulation of dismissal with prejudice of the earlier filed action, which was Schindler Elevator Corporation versus TJM Atlantic City Management LLC, a/k/a TJM Atlantic City, which was filed in Morris County on April 7, 2017[.]1

THE COURT: Okay. Gentlemen, does that comport with your understanding of the re -- of the settlement?

CLARIDGE'S LITIGATION COUNSEL: It does, Your Honor.

CLARIDGE'S IN-HOUSE COUNSEL: It does, Your Honor.

Schindler's counsel also placed on the record that as part of the settlement agreement, Schindler agreed to permit Claridge to have "one or as many people as they want present while Schindler is inspecting or installing the upgrades, but that there will be no representatives of Jersey Elevator or any other elevator competitor when Schindler is either inspecting or doing its work." Medio explained that in lieu of having an employee of a competitor elevator service company present, Schindler agreed to provide something akin to a "new owner's manual[,]" that would show "the newest version[s] . . . of software."

1 Although Schindler's attorney stated the complaint was filed on April 7, 2017, the copy of the complaint provided as part of the appellate record is dated April 6, 2017.

A-0343-17T2

In response, Schindler's attorney noted that as part of his recitation of the terms of the settlement agreement, he neglected to include a date certain for his client to receive the final payment. Claridge's litigation counsel argued that payment "would follow the timeline of work being completed." The judge suggested that payment be rendered "[u]pon completion of services." Schindler's attorney argued his client wanted "an end date of June 2, 2017." Medio agreed and the judge found it "reasonable." The judge directed the attorneys to prepare and review the consent order. The judge also apprised counsel that he was leaving in two days and would be away for a week.

THE COURT: So . . . hopefully [it] will be sitting on my desk ready to sign. You both have consented to it.

All is well. I don't . . . think you're going to be able to agree on it now. Is there anything else that you need to put on the record?

SCHINDLER'S COUNSEL: No, Your Honor. What I would say in that regard is that certainly we should have that consent order to Your Honor by the time you return. But as Mr. Medio has just said, we're going to start the process of doing it, so I'm not --

....

- - we're not going to hold it up subject to the consent order.

THE COURT: No.

A-0343-17T2

SCHINDLER'S COUNSEL: Because I know that counsel and I are both busy the next couple of days anyway.

THE COURT: Right, right.

SCHINDLER'S COUNSEL: So[,] we're going to go based upon this settlement agreement that's agreed to . . . on the record?

CLARIDGE'S IN-HOUSE COUNSEL: Yes, understood.

SCHINDLER'S COUNSEL: Okay, great.

II

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TJM ATLANTIC CITY MANAGEMENT LLC, ETC. VS. SCHINDLER ELEVATOR CORPORATION (C-000029-17, ATLANTIC COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

TJM ATLANTIC CITY MANAGEMENT LLC, ETC. VS. SCHINDLER ELEVATOR CORPORATION (C-000029-17, ATLANTIC COUNTY AND STATEWIDE) (TJM ATLANTIC CITY MANAGEMENT LLC, ETC. VS. SCHINDLER ELEVATOR CORPORATION (C-000029-17, ATLANTIC COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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