usbankcust/procap8/ Procapmgtii v. Block 268, Lot 7 38 Brenwal Ave., Etc.

CourtNew Jersey Superior Court Appellate Division
DecidedJanuary 18, 2024
DocketA-2193-21
StatusUnpublished

This text of usbankcust/procap8/ Procapmgtii v. Block 268, Lot 7 38 Brenwal Ave., Etc. (usbankcust/procap8/ Procapmgtii v. Block 268, Lot 7 38 Brenwal Ave., Etc.) 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
usbankcust/procap8/ Procapmgtii v. Block 268, Lot 7 38 Brenwal Ave., Etc., (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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-2193-21

USBANKCUST/PROCAP8/ PROCAPMGTII,

Plaintiff-Respondent,

v.

BLOCK 268, LOT 7 38 BRENWAL AVE., TOWNSHIP OF EWING, STATE OF NEW JERSEY, ASSESSED TO: 188TH BRENWAL AVENUE DEVELOPMENT LLC,

Defendant-Appellant. ____________________________

Submitted October 3, 2023 – Decided January 18, 2024

Before Judges Gooden Brown and Natali.

On appeal from the Superior Court of New Jersey, Chancery Division, Mercer County, Docket No. F-006684-20.

The Kelly Firm, PC, attorneys for appellant (Andrew J. Kelly, of counsel and on the briefs; Nicholas D. Norcia, on the briefs). Sherman, Silverstein, Kohl, Rose & Podolsky, PA, attorneys for respondent (Bruce S. Luckman, on the brief).

PER CURIAM

Defendant, 188th Brenwal Avenue Development, LLC appeals from the

January 8, 2021, Chancery Division order denying its motion to vacate a tax sale

foreclosure judgment in favor of plaintiff, PC8REO, LLC, pursuant to Rule

4:50-1. We reverse and remand for an evidentiary hearing.

I.

The property at issue is located at 38 Brenwal Avenue in Ewing Township,

and is described on the tax map as Block 268, Lot 7. On November 9, 2018,

defendant, a New Jersey real estate investment limited liability company,

purchased the property for $97,900. On December 30, 2019, the Ewing

Township tax collector issued a tax sale certificate on the property in the amount

of $6,569.66 for unpaid tax and sewer charges, which certificate was purchased

by USBANKCUST/PROCAP8/PROCAPMGTII (Procap).

On June 18, 2020, Procap filed an in rem tax sale foreclosure complaint

alleging that the property was abandoned in accordance with the Abandoned

Properties Rehabilitation Act (APRA), N.J.S.A. 55:19-78 to -107. By way of

background, the holder of a tax sale certificate has no right to foreclose sooner

A-2193-21 2 than two years from the certificate's acquisition unless the property is abandoned

within the meaning of APRA, in which case the foreclosure action may be

commenced "any time" after the certificate's acquisition. See N.J.S.A. 54:5-

86(b) (authorizing "[a]ny person holding a tax sale certificate on a property" that

meets the statutory definition of abandoned property "either at the time of the

tax sale or thereafter," to "at any time file an action with the Superior Court in

the county wherein said municipality is situate, demanding that the right of

redemption on such property be barred . . . .").

A tax sale certificate holder may show abandonment in two general ways.

First, the holder may file with the complaint "a certification by the public officer

or the tax collector that the property is abandoned." N.J.S.A. 54:5-86(b). The

second path allows a court to make such a finding by considering both the

plaintiff's "evidence that the property is abandoned, accompanied by a report

and sworn statement by an individual holding appropriate licensure or

professional qualifications," ibid., and, of course, any opposing evidential

material.

On August 3, 2020, Procap pursued the second path and filed a motion

seeking a declaration from the court that the property was abandoned. In

support, Procap submitted a certification dated April 4, 2020, prepared by Dino

A-2193-21 3 Cavalieri, a licensed construction official. Cavalieri's certification consisted of

a preprinted form listing the statutory abandonment factors, with Cavalieri's

corresponding affirmative notations.

Specifically, in the certification, Cavalieri averred that he "personally

inspected the exterior of the property" on April 4, 2020. He certified that the

property was abandoned pursuant to N.J.S.A. 55:19-81 because it "ha[d] not

been legally occupied for at least six . . . months preceding the date of th[e

c]ertification;" "[was] in need of rehabilitation and no rehabilitation ha[d] taken

place during the last six months[;]" "[a]t least one installment of property tax[es]

remain[ed] unpaid[;]" and the condition of the property rendered it "unfit for

human habitation, occupancy or use" because, among other things, the "electric

meter [was] not operating" and the "steps [were] not secure." See N.J.S.A.

55:19-81 (delineating criteria for a determination of abandonment, including

that "[t]he property is in need of rehabilitation . . . and no rehabilitation has

taken place during [a] six-month period[,]" "[a]t least one installment of

property tax remains unpaid and delinquent on th[e] property[,]" and "[t]he

property has been determined to be a nuisance by the public officer" in

accordance with N.J.S.A. 55:19-82); see also N.J.S.A. 55:19-82(a) (defining

nuisance as the property being "unfit for human habitation, occupancy or use").

A-2193-21 4 The motion was served on defendant's registered agent at a Neptune

address and on defendant's managing agent at the property address. On August

28, 2020, the trial court granted Procap's unopposed motion and entered an

abandonment order. The August 28, 2020, abandonment order was served on

defendant's registered agent at a Neptune address and on defendant's managing

agent at the property address.

On October 21, 2020, Procap assigned its rights in the tax sale certificate

to plaintiff, PC8REO, LLC, and subsequently moved to substitute plaintiff in all

pleadings, which the court granted. On November 17, 2020, the court entered

an uncontested order in plaintiff's favor for final judgment on the foreclosure

complaint, vesting title in the property to plaintiff and barring any right of

redemption. The final judgment was mailed to defendant on November 24,

2020.

On December 3, 2020, defendant moved to vacate the November 17, 2020,

final judgment pursuant to Rule 4:50-1. In support of the motion, defendant

submitted the certification of Santi Rodriquez, defendant's property manager.

Rodriquez certified that "the property was never abandoned but waiting for

construction permit approvals." According to Rodriquez, "[p]ermits were filed

with the City of Ewing on [August 20, 2019]," and between August 20, 2019,

A-2193-21 5 and March 25, 2020, "[t]he City of Ewing was in the process . . . of doing a plan

review." As a result, "[n]o work could be done during that period of time."

Rodriquez averred that once "the building department issue[d] the permit"

on March 25, 2020, "work began." However, he explained that "[they] had to

shut down" during April 2020 when Cavalieri's inspection occurred "due to

COVID 19" and Governor Murphy's "[E]xecutive [O]rder 122 to cease all non-

essential construction projects." Rodriquez stated that once the ban was lifted,

work "resumed." As a result, they "had an [i]nspection for [f]ire [and e]lectrical

on May 26, 2020," "an inspection for [p]lumbing on May 27[], 2020," "a

building inspection" on May 29, 2020, "a [f]ire [i]nspection" on June 12, 2020,

and "a [m]echanical inspection" on June 17, 2020.

According to Rodriquez, they ultimately "passed all inspections," "have

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