Village of Ridgewood v. Shell Oil

673 A.2d 300, 289 N.J. Super. 181
CourtNew Jersey Superior Court Appellate Division
DecidedApril 1, 1996
StatusPublished
Cited by20 cases

This text of 673 A.2d 300 (Village of Ridgewood v. Shell Oil) 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
Village of Ridgewood v. Shell Oil, 673 A.2d 300, 289 N.J. Super. 181 (N.J. Ct. App. 1996).

Opinion

289 N.J. Super. 181 (1996)
673 A.2d 300

VILLAGE OF RIDGEWOOD, PLAINTIFF-RESPONDENT,
v.
SHELL OIL COMPANY, A DELAWARE CORPORATION, SUN REFINING & MARKETING COMPANY,[1] A PENNSYLVANIA CORPORATION, CHEVRON U.S.A. INC., A PENNSYLVANIA CORPORATION, F/K/A GULF OIL CORP., DEFENDANTS-RESPONDENTS, AND JOSEPH H. FERGUSON & SONS, INC.,[2] JOSEPH H. FERGUSON, ANTHONY BOLT, ROBERT FERGUSON, CRETE EQUIPMENT CORPORATION, PETER SOLDANO, AND STATE OF NEW JERSEY, DEPARTMENT OF TRANSPORTATION, DEFENDANTS-APPELLANTS, AND SUN OIL COMPANY, A DELAWARE CORPORATION, GULF OIL CORPORATION, A PENNSYLVANIA CORPORATION, GLADYS HAND SIMPSON LIGHT TRUST,[3] JAMES E. SIMPSON, MARGUERITE HOST, JAMES BIRMINGHAM, CUMBERLAND FARMS, INC., A DELAWARE CORPORATION, AND HERBERT ROTHSTEIN, DEFENDANTS.

Superior Court of New Jersey, Appellate Division.

Argued February 27, 1996.
Decided April 1, 1996.

*185 Before Judges BAIME, VILLANUEVA and KIMMELMAN.

Michael Phillips argued the cause for appellants Joseph H. Ferguson & Sons, Inc., Anthony Bolt, Robert Ferguson and the Estate of Joseph H. Ferguson (Conte, Phillips & Clayton, attorneys; Mr. Phillips, of counsel and on the brief).

Kenneth P. Westreich argued the cause for appellants Crete Equipment Corporation and Peter Soldano (Swain, Dennen, Keszler, Bauman & Westreich, attorneys; Mr. Westreich, of counsel and on the brief).

Mark Turner Holmes, Deputy Attorney General, argued the cause for appellant State of New Jersey, Department of Transportation (Deborah T. Poritz, Attorney General, attorney; Mary C. Jacobson, Assistant Attorney General, of counsel; Mr. Holmes, on the brief).

Marvin J. Brauth argued the cause for respondents Village of Ridgewood, Chevron U.S.A. Inc., Shell Oil Company and Sun Refining & Marketing Company (Wilentz, Goldman & Spitzer, attorneys; Mr. Brauth, of counsel; Frederick J. Dennehy and Mark F. Curley, on the brief).

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

On January 21, 1992, the Village of Ridgewood through its counsel, Stoldt & Horan, instituted suit (the litigation) against various parties, including Shell Oil Company (Shell), Chevron U.S.A. Inc. (Chevron) and Sun Refining & Marketing Company (Sun) (collectively the oil company defendants); Joseph H. Ferguson & Sons, Inc., Anthony Bolt, Robert Ferguson and Joseph H. *186 Ferguson[4] (Ferguson defendants); and Crete Equipment Corporation and Peter Soldano (Crete defendants) (collectively the remaining defendants) which owned, operated, and/or franchised gas stations in Ridgewood.[5] These causes of action included negligence, trespass, private and public nuisance, and strict liability under N.J.S.A. 58:10-23.11. Ridgewood sought to recover compensatory and punitive damages in excess of $2 million from the defendants, jointly and severally, for alleged contamination of the Twinney and Walthery wells (the wells), two drinking-water wells in Ridgewood. Sun and the Gladys Hand Light Trust filed third-party complaints against the State of New Jersey, Department of Transportation (DOT).

All parties answered Ridgewood's complaint and amended complaint and asserted cross-claims against each other for indemnity and contribution. These cross-claims are still pending.[6] On March 19, 1993, Ridgewood filed a second amendment to the complaint adding DOT as a direct defendant. The litigation was subsequently placed on the inactive list pending the outcome of two claims filed with the Administrator of the New Jersey Spill Compensation Fund.

The New Jersey Spill Compensation Fund Arbitration

In October 1990, Ridgewood had filed two claims (Spill Fund claims) with the Administrator of the New Jersey Spill Compensation Fund for reimbursement of costs incurred and damages related to remediation of contamination of the wells pursuant to *187 N.J.S.A. 58:10-23.11g to q.[7] In 1993, each oil company defendant and each of the remaining defendants filed a demand for arbitration of the Spill Fund claims (the arbitration). On June 14, 1994, Ridgewood and the oil company defendants entered into a settlement agreement (Agreement) in which they settled only their respective claims.

The firm of Wilentz, Goldman & Spitzer (Wilentz) represented Chevron in the arbitration proceedings in the Office of Administrative Law. Stoldt & Horan and co-counsel Goldshore, Wolf & Lewis represented Ridgewood.

The Oil Company Defendants' Settlement of Ridgewood's Claims Against Them

Under the terms of the Agreement, the oil companies, while denying liability, paid Ridgewood $825,000 "[i]n full settlement of all legal claims as set forth in the Spill Fund claims, Arbitration and the Litigation." Ridgewood released the oil company defendants from liability and withdrew all claims against the Spill Fund, with prejudice. In addition, Ridgewood designated the oil company defendants as its subrogees and assigned to the oil company defendants all its legal rights against all parties potentially responsible for the well contamination.

Under the terms of the Agreement, the oil company defendants were authorized to file a substitution of attorney for Ridgewood, thereby replacing Ridgewood's attorneys. Thus, on June 15, 1994, the Wilentz firm replaced Stoldt & Horan as attorneys for Ridgewood in the litigation. Thereafter, the Wilentz firm advised the attorneys for the Ferguson and Crete defendants as follows:

Under the assignment and subrogation from Ridgewood, the litigation will proceed in the name of Ridgewood but with the proceeds of any judgment going to the Oil Companies. We will handle the representation of Ridgewood. If a settlement is reached with your clients, a stipulation of dismissal will be provided dismissing Ridgewood's claims as well as the crossclaims of the Oil Companies....
*188 With respect to a settlement demand, the Oil Companies will accept $1 million from all remaining defendants in full settlement of the claims against them. This represents the settlement paid to Ridgewood plus environmental expenses of the Oil Companies. The offer will remain open only until September 19, 1994. Thereafter, the Oil Companies intend to seek recovery of the full amount complained by Ridgewood, in the neighborhood of $2 plus million.

Initial Motion for Summary Judgment By Remaining Defendants

In December 1994 the remaining defendants filed a joint motion for summary judgment to dismiss Ridgewood's complaint, asserting that Ridgewood, pursuant to the Agreement, had received full compensation for its claims and had no further interest in the litigation. According to the remaining defendants, the motion[8] also sought declaratory relief from the trial court that (1) Ridgewood did not have the ability to assign its underlying tort claims to the oil company defendants; (2) the oil company defendants, as settling tortfeasors, could not assert any right of subrogation against the remaining defendants; and (3) any potential claims that the oil company defendants might have had for contribution under common law and the Joint Tortfeasors Contribution Law, N.J.S.A. 2A:53A-1 to -24, were extinguished by their settlement with Ridgewood without a final judgment of liability.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

William J. Focazio, M.D. v. Joseph S. Aboyoun, Esq.
New Jersey Superior Court App Division, 2025
In re Caesars Entm't Operating Co.
588 B.R. 32 (N.D. Illinois, 2018)
In re Roper & Twardowsky, LLC
566 B.R. 734 (D. New Jersey, 2017)
Joseph Cherilus v. Federal Express
87 A.3d 269 (New Jersey Superior Court App Division, 2014)
Reichhold, Inc. v. United States Metals Refining Co.
655 F. Supp. 2d 400 (D. New Jersey, 2009)
Boryszewski Ex Rel. Boryszewski v. Burke
882 A.2d 410 (New Jersey Superior Court App Division, 2005)
Somerset Ortho. Associates, Pa v. Horizon Bc & Bs
785 A.2d 457 (New Jersey Superior Court App Division, 2001)
Tannenbaum v. Smith (In Re Smith)
263 B.R. 71 (D. New Jersey, 2001)
Kimball Intern. v. Northfield Metal
760 A.2d 794 (New Jersey Superior Court App Division, 2000)
Brown v. Brown
731 A.2d 1212 (New Jersey Superior Court App Division, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
673 A.2d 300, 289 N.J. Super. 181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/village-of-ridgewood-v-shell-oil-njsuperctappdiv-1996.