Triffin v. ADP

986 A.2d 8, 411 N.J. Super. 292
CourtNew Jersey Superior Court Appellate Division
DecidedJanuary 11, 2010
DocketA-5533-07T3
StatusPublished
Cited by12 cases

This text of 986 A.2d 8 (Triffin v. ADP) 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
Triffin v. ADP, 986 A.2d 8, 411 N.J. Super. 292 (N.J. Ct. App. 2010).

Opinion

986 A.2d 8 (2010)
411 N.J. Super. 292

Robert J. TRIFFIN, Plaintiff-Respondent/Cross-Appellant,
v.
AUTOMATIC DATA PROCESSING, INC., Defendant/Third-Party Plaintiff-Appellant/Cross-Respondent,
v.
Linda Avallone, Third-Party Defendant.

No. A-5533-07T3.

Superior Court of New Jersey, Appellate Division.

Argued November 18, 2009.
Decided January 11, 2010.

*11 Robert J. Triffin, appellant, argued the cause pro se.

Dennis T. Kearney, argued the cause for respondent (Day Pitney, L.L.P., attorneys; Mr. Kearney, on the brief, Florham Park; Carole Lynn Nowicki, Newark, on the brief).

Before Judges GRAVES, SABATINO and LYONS.

The opinion of the court was delivered by

LYONS, J.A.D.

Plaintiff, Robert J. Triffin, appeals from an order entered on July 1, 2008. The order was entered by Judge Donald S. Goldman and finds that Triffin by clear and convincing evidence committed a fraud on the court. The order goes on to award defendant, Automatic Data Processing, Inc. (ADP), counsel fees and costs in the amount of $44,000 and outlines various sanctions by way of an injunction against Triffin designed to discourage future fraud. The following factual and procedural history is relevant to our consideration of the issues advanced on appeal.

A.

This case arises from our remand in Triffin v. Automatic Data Processing, Inc., 394 N.J.Super. 237, 926 A.2d 362 (App.Div.2007) (Triffin I). We need not set out in detail all of the facts and procedural history surrounding this matter as it is adequately set forth in Triffin I. Suffice it to say that in Triffin I, Triffin had sued ADP on certain dishonored checks. ADP refused to pay on the items and countersued Triffin for fraud, claiming the assignments obtained from holders were fraudulent. Triffin contested the jury's verdict, finding Triffin liable for common law fraud, awarding ADP $132,600 in compensatory damages, and awarding $50,000 in punitive damages. In Triffin I, we determined that the jury's finding of common law fraud could not stand. Id. at 249, 926 A.2d 362. While Triffin had knowingly made a material misrepresentation to ADP, thereby causing ADP to sustain damages according to the jury's verdict, we were unable to find that ADP at any point actually relied on the documents at issue.

Though we vacated the jury's verdict on common law fraud, we did find that "[i]n this case, there has been a wrong in our view, a possible fraud on the court." Id. at 251, 926 A.2d 362. We explained that a fraud on the court occurs "where it can be demonstrated, clearly and convincingly, that a party has sentiently set in motion some unconscionable scheme calculated to interfere with the judicial system's ability impartially to adjudicate a matter by improperly influencing the trier or unfairly hampering the presentation of the opposing party's claim or defense." Ibid. (quoting Aoude v. Mobil Oil Corp., 892 F.2d 1115, 1118 (1st Cir.1989); Perna v. Elec. Data Sys. Corp., 916 F.Supp. 388, 397 (D.N.J.1995)). We further noted that unlike common law fraud on a party, fraud on a court does not require reliance. Ibid. We noted that "[s]eparate and distinct from court rules and statutes, courts possess an inherent power to sanction an individual for committing a fraud on the court." Ibid. Consequently, we remanded the matter to the trial court for further proceedings. We held that, "[f]ollowing a hearing, the trial court may impose sanctions on plaintiff on its own motion or on the application of defendant, or both." Id. at 253, 926 A.2d 362.

ADP filed a motion for sanctions with the trial court based on our remand order on December 6, 2007. In that motion, *12 ADP requested all counsel fees associated with the litigation, including those spent on its failed counterclaims at trial. Judge Goldman conducted a proof hearing on February 1, 2008, to determine if Triffin had, in fact, committed a fraud on the court. At that hearing, ADP presented the testimony of three witnesses in order to establish its legal fees and costs associated with uncovering Triffin's fraud and with litigating the underlying trial, appeal, and the motion for sanctions.

Michael Boyle, a private investigator hired by ADP to investigate the circumstances surrounding Triffin's acquisitions of the checks, was the first to testify on ADP's behalf. Boyle had also testified for ADP during the 2004 trial, and Judge Goldman asked that that testimony be incorporated into the record by reference. According to Boyle, the costs associated with his investigation into the legitimacy of the checks and the assignments totaled "$8,407.17."

Joan Ibsen, Esq., in-house counsel for ADP and a witness at the 2004 trial, also testified at the hearing. She was responsible for "review[ing] the legal fees before they're submitted to [defendant's] accounts payable" department. She testified that she reviewed the invoices submitted by Day Pitney, LLP, ADP's counsel, in connection with the litigation and determined that the fees were reasonable.

After ADP's counsel completed his direct examination of Ibsen, Triffin moved to have her testimony stricken from the record because she could not testify that she personally knew "that all of the services that are referenced in these bills were actually performed." Ibsen then testified that she had reviewed the work product that had been billed to ADP, had been present during the 2004 trial, and therefore, had personal knowledge concerning the validity of many of the fees. The trial court denied Triffin's motion to strike Ibsen's testimony, and Triffin had no further questions for Ibsen on cross-examination.

Lastly, Carole Lynn Nowicki, Esq., an attorney at Day Pitney who witnessed events while second-chairing the underlying trial, testified about the legal services Day Pitney performed for ADP in the course of this litigation. She also described Triffin's method of fabricating particular assignment agreements.

Triffin testified in opposition to ADP's motion for sanctions. He stated that he believed the fact that he did not secure the check sellers' signatures on the assignment agreements was immaterial "so long as [he was] authorized to—to put that individual's signature on that document...." Triffin argued that, "at the time these respective documents were filed with this court," he believed the check sellers had given such authorization for every assignment agreement he presented through "oral conversation as well as the course of conduct." Triffin contended that he could not be held liable for fraud on the court because he lacked the "scienter" to commit fraud. He argued that he simply did not discern that cutting and pasting the signatures of the check sellers onto the assignment agreements, without their knowledge or explicit consent, was wrong and that he had a "pure heart [and an] empty head."

At the close of testimony, Judge Goldman requested that ADP submit a modified set of invoices that only included legal services and costs from the inception of the litigation to the order granting summary judgment. The judge also "welcome[d] any additional briefs on any of the issues that were raised during this hearing here, that people feel that is pertinent to raise, as long as it's not duplicative of that which they've already said." The judge then set March 28, 2008, to resume the hearing.

*13

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Bluebook (online)
986 A.2d 8, 411 N.J. Super. 292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/triffin-v-adp-njsuperctappdiv-2010.