Walter J. Dirkin, Etc. v. Office of the Attorney General

New Jersey Superior Court Appellate Division·Decided May 11, 2026·No. A-3379-24·Published

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3379-24

WALTER J. DIRKIN, in his APPROVED FOR PUBLICATION official capacity as an ASSISTANT May 11, 2026 ESSEX COUNTY PROSECUTOR, APPELLATE DIVISION

Appellant,

v.

OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LAW & PUBLIC SAFETY,

Respondent.

Argued on March 4, 2026 - Decided May 11, 2026 Before Judges Currier, Smith and Jablonski.

On appeal from the New Jersey Department of Law & Public Safety.

Frank J. Ducoat, Deputy Chief Assistant Prosecutor, argued the cause for appellant (Theodore N. Stephens II, Essex County Prosecutor, attorney; Frank J.

Ducoat, Deputy Chief Assistant Prosecutor, of counsel and on the briefs).

Deborah Wassel, Assistant Attorney General, argued the cause for respondent (Jennifer Davenport, Attorney General, attorney; Sookie Bae-Park, Assistant Attorney General, of counsel and on the

brief; Andrew Spevack, Deputy Attorney General, on the brief).

Bradley D. Billhimer, Ocean County Prosecutor, attorney for amicus curiae County Prosecutors Association of New Jersey (Monica do Outeiro, Assistant Prosecutor, of counsel and on the brief).

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

In this administrative appeal, we consider for the first time whether the Office of the Attorney General (OAG) is obligated to exercise its statutory discretion under the New Jersey Tort Claims Act (TCA), N.J.S.A. 59:1-1 to :14-4, to defend and to indemnify an assistant county prosecutor who is the subject of an attorney disciplinary proceeding stemming from the performance of their official duties.

Walter J. Dirkin, a deputy chief assistant prosecutor in the Essex County Prosecutor's Office (ECPO), appeals the final agency decision of the OAG denying his request for defense and indemnification in an attorney disciplinary proceeding. After Dirkin served as the designated prosecutor in an Essex County criminal matter 1, the Office of Attorney Ethics (OAE) filed a complaint alleging he failed to present exculpatory evidence during grand jury proceedings, violating RPC 1.3 and 3.8(d). Dirkin then requested a defense

1 State v. Anderson, Indictment No. 2023-03-739.

and indemnification from the OAG in the ensuing OAE proceeding. In its final administrative decision, the OAG declined Dirkin's request, finding the disciplinary action did not fit any of the enumerated actions the State is obligated to defend under N.J.S.A. 59:10A-1.

On appeal, Dirkin contends that the OAG's decision was improper, arguing that the TCA should be interpreted to require the OAG to defend and indemnify him under either its mandatory or discretionary provisions. In the alternative, Dirkin argues that we should impose a common law duty on the OAG to defend and indemnify him on these facts.

We affirm. The mandatory defense and indemnification provisions under N.J.S.A. 59:10-1 and :10A-1 do not cover disciplinary actions filed by the OAE. The Attorney General did not abuse its discretion in denying representation under N.J.S.A. 59:10A-3, as the ethics complaint frames Dirkin's actions in terms of willful misconduct. The common law doctrine of respondeat superior requires a tort claim, which we do not find here. Finally, we decline to impose a common law duty on the Attorney General under these circumstances.

I.

In March 2023, Dirkin, in his capacity as an assistant Essex County prosecutor, presented the case of State v. Anderson to a grand jury, alleging

that the defendant, acting as a volunteer, improperly took money from the New Jersey Arts Incubator (NJAI). The grand jury returned an indictment, finding the State had made a sufficient showing to charge the defendant with third - degree theft by unlawful taking, N.J.S.A. 2C:20-3(a). In June 2023, the defendant moved to dismiss the indictment, alleging Dirkin possessed exculpatory evidence regarding the defendant's status as an independent contractor of the NJAI, which he failed to present to the grand jury. Dirkin reviewed the motion and dismissed the charges. In a letter to the Essex County Prosecutor, Dirkin recommended dismissal, concluding that the evidence, including the defendant's contract with NJAI, made a conviction unlikely, as it would "raise sufficient reasonable doubt to a jury as to the defendant's guilt as to make a conviction unlikely in this case." In the same letter Dirkin contended that the contract between NJAI and the defendant was previously unknown to him.

In January 2024, Anderson filed a grievance with the OAE against Dirkin. Dirkin turned over his ECPO files to the District VII Ethics Committee, who interviewed him as part of its investigation into the grievance. After the investigation, the OAE filed a complaint against Dirkin, alleging he violated RPC 3.8(d) and 1.3, by failing to present exculpatory material known

to him to the grand jury, and by failing to act with reasonable diligence to review his investigative file before presenting the case to the grand jury.

In April 2025, Dirkin sought defense and indemnification from the OAG, citing the TCA as well as our Supreme Court's holding in Wright v. State, 169 N.J. 422 (2001). The OAG denied his request, finding that defense under N.J.S.A. 59:10A-1 and indemnification under N.J.S.A. 59:10-1 are required only for "claims sounding in tort or brought pursuant to the Civil Rights Act," or "claims seeking damages in relief." Finding that the claim against Dirkin was a disciplinary action under Rule 1:20-4(b), the OAG determined that the claim did not fit any of the enumerated actions the State is obligated to defend under N.J.S.A. 59:10A-1 of the TCA.

The OAG distinguished Wright from the issue in Dirkin's petition:

This is an ethics/disciplinary action, which contains no claims or causes of action to which the State's TCA obligation to defend and indemnify applies at all.

Chasin v. Montclair State Univ., 159 N.J. 418, 428 (1999); In re Petition for Review of Op. 552 of the Advisory Comm. on Prof'l Ethics, 102 N.J. 194, 200 (1986); Monmouth Cnty. Prosecutor's Off. v. Off. of the AG, 480 N.J. Super. 33, 40-44 (App. Div. 2024);

In re Napoleon, 303 N.J. Super. 630, 633-34 (App.

Div. 1997).

[(Citations reformatted).]

Having determined that N.J.S.A. 59:10A-1 and :10-1 did not apply to compel the OAG to defend and to indemnify Dirkin, the OAG next declined to

exercise its discretionary authority to represent Dirkin under N.J.S.A. 59:10A- 3. Dirkin sought reconsideration, which the OAG denied.

On appeal, Dirkin argues that he was entitled to defense and indemnification, and that the OAG final administrative decision was arbitrary, capricious, and unreasonable. He asserts: (1) N.J.S.A. 59:10A-1 and :10-1 are applicable; (2) the OAG should have exercised its statutory discretion to defend and to indemnify Dirkin; (3) the common law compels the OAG to defend and to indemnify him; and (4) we should impose a duty on the OAG to defend and to indemnify him on the record before us, if we conclude neither the TCA nor the common law imposes a duty on the OAG. As amicus curiae, the County Prosecutors Association of New Jersey supports Dirkin's position.

II.

Our review of an agency determination is limited. Seago v. Bd. of Trs., Tchrs.' Pension & Annuity Fund, 257 N.J. 381, 391 (2024). We will sustain an agency's final decision "unless there is a clear showing that it is arbitrary, capricious, or unreasonable, or that it lacks fair support in the record." Ibid. (quoting Allstars Auto Grp., Inc. v. Motor Vehicle Comm'n, 234 N.J. 150, 157 (2018)). Our role in reviewing administrative action is generally limited to:

"(1) whether . . . the agency follow[ed] the law; (2)

whether the record contains substantial evidence to support the findings on which the agency based its action; and (3) whether in applying the legislative

policies to the facts, the agency clearly erred in reaching a conclusion that could not reasonably have been" reached.

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