Full Service Law Firm in Mt. Laurel Township, NJ | Capehart Scatchard

Appellate Division

Client: Midwestern Insurance Alliance 

Court: Appellate

Trial Attorney: Brian P. Berkoff, Esq.

Brief Attorney: Ashley T. Mollenthiel Fiore, Esq. and Brian P. Berkoff, Esq.

**Results may vary depending on your particular facts and legal circumstances**

Matter Caption: Avery v. Next Mile, LLC/DSP

WIN from April 11, 2023

Petitioner appealed the decision from the April 11, 2023 trial and argued that the Judge of Compensation should have placed the burden of proof on respondent to disprove that the shooting arose from employment.

The petitioner’s attorney cited cases in which the disputed issues were about the medical or physical cause of the injury, which was not in dispute for this case. This case was an issue of pure legal causation and whether the accident arose out of employment.

The Appellate Division affirmed the case based on the facts and found that the judge did not err in deciding the case based on the testimony at trial. They noted there is no precedent for burden-shifting in this case as it involved legal causation and not medical causation.

To learn how this matter progressed from Trial to Appellate Division ruling, click here.

Plaintiffs Marlene Romhen and Ibrahim Mirkhan filed a lawsuit against the defendant insurance company Franklin Mutual Insurance Inc. based upon a theft loss that occurred at their insured residence.  The claim was denied by Franklin Mutual by letter dated September 17, 2021.  According to the denial letter, the insured needed to file suit against them within twelve (12) months of the date of the letter.  The issue in Romhen v. Franklin Mutual Insurance, Inc., 2024 N.J. Super. Unpub. LEXIS 708 (App. Div. Apr. 25, 2024) was whether the lawsuit was timely filed because it was filed on the Monday after the one year time period expired the prior Saturday.

The theft occurred at the insured residence on March 30, 2021.  Plaintiffs reported the loss to Franklin Mutual on April 1, 2021.  The insurance policy contained a provision that any lawsuit filed against Franklin Mutual must be filed within twelve (12) months of the date of the denial letter.  The denial letter was issued on September 17, 2021.

However, the plaintiffs did not file their complaint against Franklin Mutual until Monday, September 19, 2022.  Franklin Mutual argued before the trial court that the complaint needed to be filed on or before Saturday, September 17, 2022 to meet the 12 month shortened suit requirement, and, therefore, the complaint was filed two days late.

The trial court accepted that argument and dismissed the complaint.  This appeal ensued.

The Appellate Division noted the well settled law that “because insurance policies are contracts of adhesion, if any ambiguity exists, the ambiguity must be construed so as to effect the ‘reasonable expectations of the insured.’”  Further, the Court noted that if the policy language supported two meanings, one that favored the insurer and the other one that favored the insured, the policy should be construed so as to sustain coverage in favor of the insured.

Under New Jersey court rules, in computing any period of time fixed by rule or court order, if the last day of the time period falls on a Saturday, Sunday, or legal holiday, the time period would not run until the end of the next day which is neither a Saturday, Sunday, nor legal holiday.  The trial court, however, found that this court rule did not apply because it was applying the terms of the insurance policy, which is a contract between the parties.  The Appellate Division agreed with that rationale. 

However, the Court noted that it was not disputed that the parties agree to an abbreviated deadline, commonly referred to as a “shortened suit clause,” which shortens the time period from the normal six (6) year statute of limitations that would generally apply to a breach of contract in a civil case.

But, the Appellate Division found that there was an ambiguity in the insurance contract.  It noted that if Franklin Mutual “wanted to ensure strict adherence to a one-year deadline with no exceptions or extensions for weekends, it could have said so explicitly in the endorsement it drafted.”  Further, when it sent out its denial of coverage letter, it could have specified the exact date when the deadline for filing a lawsuit would expire.  By specifying the exact date, that would have left no doubt as to its interpretation of the policy clause and would have provided clear notice of the last day in which a lawsuit could be filed.  However, the denial letter left it up for the policy holders to determine the one year deadline because the letter made no reference to the fact that, in this instance, the expiration of the one year time period fell on a Saturday.

The Appellate Division applied a liberal interpretation of the shortened suit clause in the insured’s favor, “coupled with the general preference to hear cases on their merits rather than dismiss them based on strict enforcement of procedure rules.”  Hence, the Court determined that the lawsuit challenging Franklin Mutual’s denial of coverage as to the lawsuit which was filed on Monday, September 19, 2022 was deemed timely under the shortened suit clause endorsement.  Thus, the Appellate Division reversed the trial court decision and remanded the case back to the trial court for further proceedings.

By: Eric Richwine, Law Clerk

Editor: Sanmathi (Sanu) Dev, Esq.

On November 9, 2023, the New Jersey Appellate Division issued a published decision in Board of Education of the Borough of Kinnelon v. D’Amico in which it reversed the final decision of the New Jersey Commissioner of Education (“Commissioner”) to remove a parent from her duly elected school board position for a purported conflict of interest following the submission of a ten-day letter on behalf of her special education child.

In January of 2021, Ms. Karen D’Amico (“D’Amico”) was sworn in as a member of the Board of Education of the Borough of Kinnelon (“Board”).  D’Amico was noted as having a history of filing a series of ten-day letters on behalf of her child with special needs enrolled in private education and several due process requests primarily for tuition reimbursement purposes throughout 2018 to 2020.  Ten-day letters are used in special education cases to preserve a parent’s right to reimbursement for private school placements for special education students. Following her election to the Board, on February 1, D’Amico’s husband re-filed a prior due process petition seeking tuition reimbursement; D’Amico withdrew the petition within an hour after her husband filed it.

Soon after, in April, the Board filed an amended verified petition with the Commissioner asking for a declaratory ruling that D’Amico was disqualified from serving on the Board, reasoning that she had a direct or indirect interest in substantial financial claim against it.  The Board also moved for a summary judgment decision against D’Amico.  The Commissioner denied the Board’s request for declaratory relief and transmitted the matter to the Office of Administrative Law, where D’Amico filed a cross-motion for summary decision.  While her cross-motion was pending, D’Amico submitted a ten-day letter on August 13, 2021, notifying the Board of her intent to unilaterally place her child in a private school for the following school year and reserving the right to seek reimbursement for the placement costs.

The Administrative Law Judge (“ALJ”) issued an initial decision in favor of D’Amico, finding that after her husband re-filed the due process petition, she quickly remedied the violation by immediately withdrawing it.  The ALJ also found that, as no due process petition was filed relative to D’Amico’s ten-day letter dated August 13, 2021, the letter served as a notice, not a claim, and it therefore was permissible under the School Ethics Act.  The Board filed exceptions, and on December 2, 2021, the Commissioner adopted the ALJ’s decision with respect to the due process petition but found that the ten-day letter constituted a claim for monetary relief against the Board that precluded her continued service as a member; as a result, D’Amico was removed from the Board.  This appeal followed.

The issue before the Appellate Division was whether the submission of a ten-day letter raises a substantial conflict of interest as to warrant the removal of a school board member.  In making its determination, the Appellate Division referred to the New Jersey Supreme Court’s holding in Bd. of Ed. of City of Sea Isle City v. Kennedy, where the Court determined a due process claim that included a request for specific monetary relief to be a substantial conflict between a board member and the board, requiring removal.  However, the Appellate Division determined that, in contrast to Kennedy, the letter here did not assert a “request for monetary relief.”  Rather, the language used by the D’Amicos, as evidenced by the ten-day letters submitted prior to D’Amico’s appointment to the Board, only served to alert the Board that the D’Amicos intended to “seek reimbursement from the District” in the future. 

The Board argued that the ten-day letter “portends the likelihood of protracted, and intractable, litigation between the parties,” per the Kennedy decision, but the Appellate Division disagreed, finding there was no evidence to suggest that the D’Amicos signaled an intention to commence litigation against the Board.  Although the Appellate Division contended that if the D’Amicos filed a timely due process request for tuition reimbursement, then D’Amico’s removal from the Board would be proper under Kennedy – but this “line had not yet been reached”.  As such, the Appellate Division reversed and remanded.  

Petitioner Mario Pozadas was injured on October 14, 2016.  He was the owner of the respondent Capital Iron Associates, LLC., which specialized in fabricating and installing welding materials.  Earlier in the day he was working on a home renovation project taking place in Hightstown, New Jersey.  Mr. Pozadas drove a flatbed truck carrying several workers to that project. Around three p.m. he got a call from a client about doing a project at a funeral home in the same town.  He met with his client at a deli to discuss the job.  Then he dropped off his hourly workers and the flatbed truck at his Trenton, N.J. shop.

Petitioner testified that he planned next to travel back to Hightstown in order to prepare an estimate that afternoon for the funeral home.  He further said that he decided to use a friend’s motorcycle to travel back to Hightstown.  He chose not to drive directly to the funeral home destination.  Because it was a nice day, he decided to drive four miles west from Trenton into Pennsylvania on his friend’s motorcycle.  He exited south on the Route 13 jughandle in Morrisville, Pennsylvania intending to proceed to Hightstown when the accident occurred, resulting in very serious injuries.  The Court noted that a direct route from the shop to the funeral  home was approximately 15 miles, but the longer route via Pennsylvania would have been approximately 26 miles.  

Hartford Insurance denied the claim and argued that petitioner was not in the direct performance of duties at the time of his injury because he had driven west into Pennsylvania instead of driving east to Hightstown.  Respondent argued that the drive to Pennsylvania constituted a deviation from employment.  The Court noted that as the owner, petitioner could choose whatever vehicle he wanted to use and could choose the route he wanted to take. 

The Judge of Compensation ruled for petitioner and held that the accident occurred in the course of employment, and the Appellate Division affirmed.  The Appellate Division noted that this was not a case of someone who had stopped on the way to perform a personal errand and then got hurt.  The Court also noted that the Judge of Compensation made a finding that petitioner was credible in stating that he intended to cross back into New Jersey and drive directly to Hightstown, N.J.

The Court held that petitioner was engaged in the direct performance of work duties and relied on N.J.S.A. 34:15-36, which defines the scope of employment:

Employment shall be deemed to commence when an employee arrives at the employer’s place of employment to report for work and shall terminate when the employee leaves the employer’s place of employment, excluding areas not under the control of the employer; provided, however, when the employee is required by the employer to be away from the employer’s place of employment, the employee shall be deemed to be in the course of employment when the employee is engaged in the direct performance of duties assigned or directed by the employer;

The decision in Pozadas v. Capital Iron Associates, LLC, No. A-0162-22 (App. Div. Oct. 30, 2023), is interesting for a number of reasons.  The first question is whether the result would have been different if the case had been viewed as a recreational activity claim under N.J.S.A. 34:15-7.  Section 7 deals with recreational and social activity claims.  The Appellate Court opinion focused on the premises rule under N.J.S.A. 34:15-36.  There is no discussion in the decision about whether the petitioner was engaged in a recreational activity while driving the motorcycle in the State of Pennsylvania.  He said he chose to go west because it was a nice day to drive the motorcycle even though it lengthened the trip by 11 miles.  N.J.S.A. 34:15-7 provides that recreational activities are not compensable unless they are a regular incident of employment and promote a benefit to the employer beyond improvement of health and morale.   

The opinion also raises another interesting question:  what would have happened if the petitioner were an employee, rather than the owner?  There is little doubt that if an employee had been directed to drive to Hightstown for work purposes but instead decided to drive west four miles into Pennsylvania, the respondent’s argument would have been successful on deviation from employment.  A similar issue was raised in another unpublished case, Mackoff v. New Brunswick Saw Services, No. A-3625-19 (App. Div. July 14, 2021).  In that case the employee had a business meeting in West Caldwell, N.J. and said he intended to drive to the New Brunswick office of his company.  However, he was hungry and decided to have lunch in Kenilworth, N.J.  He said he went to the hot dog restaurant because he loved their hot dogs and it was a nostalgia place for him.  His accident was held not compensable because the Judge of Compensation found “the primary purpose for driving to the hot dog place was personal and not work related.”

Hartford Insurance Company also denied petitioner’s claim because of lack of workers’ compensation coverage on the date of the accident.  The policy had very recently expired when the motorcycle accident occurred. The opinion indicates, however, that the carrier was not able to produce witnesses from the broker who would have been needed to prove the employer had notice of cancellation of the workers’ compensation policy. 

The post Appellate Division Finds Accident in Pennsylvania Compensable As Petitioner Had Resumed Drive to Customer Location in New Jersey appeared first on NJ Workers' Comp Blog.

By: Gabi Aste-Molina, Law Clerk

Editor: Sanmathi (Sanu) Dev, Esq.

On October 6, 2023, the Appellate Division of New Jersey affirmed the revocation of the teacher’s certificates in In re Certificates of Rita O’Malley by the State Board of Examiners for repeatedly failing to test and evaluate her students with learning disabilities.

Woodbridge Township School District (“District”) employed the teacher in 2000 as a special education teacher and Learning Disabilities Teacher Consultant. She was responsible for testing and diagnosing learning disabilities, developing individualized education programs, and meeting with parents and teachers to discuss the special education needs of her students. In 2015, the parents of one of her students contacted the District to report that their child had not been tested and evaluated by their teacher. The District decided to conduct a random review of the tests the teacher had given, and this review revealed missing test scores and testing deficiencies. Due to this review, the District certified tenure charges against the teacher, citing her neglectful conduct, amongst other causes. The teacher resigned from her tenured position without contesting the charges.

The teacher appealed the revocation of her teaching certificates several times. First, the State Board of Examiners (“Board”), the educator licensing agency in New Jersey, filed an order to show cause regarding the teaching certificates. She answered the order and requested to transfer the matter to an Administrative Law Judge (“ALJ”). The ALJ recommended that the Board suspend the teacher’s certificates for three years. The matter returned to the Board, which decided to revoke the teacher’s certificates, citing that her repeated failure to test and evaluate her students merited revoking her certificates. The teacher appealed the Board’s decision to the Commissioner of Education (“Commissioner”). In a final agency decision, the Commissioner agreed with the Board and held that the record supported its decision to revoke her teaching certificates. The teacher appealed again, this time to the Appellate Division.

The teacher argued that the Board’s revocation was arbitrary, capricious, and unreasonable, citing a lack of credible evidence in the record. The Appellate Division disagreed and held that the record did support the decisions of the Board and Commissioner to revoke her teaching certificates because there was unconverted evidence that she failed to test her students and correctly record the results of the tests she did administer. By failing to perform these obligations, she did not provide adequate educational services to her students with learning disabilities, and these failures made her unfit for her position. Accordingly, the Appellate Division held that the Board had cause to revoke her teaching certificates under N.J.A.C. 6A:9B-4.4 and that the Commissioner’s decision to uphold the Board’s decision was not arbitrary, capricious, or unreasonable.

By: Eric Richwine, Law Clerk
Edited by: Betsy G. Ramos, Esq.

The issue before the New Jersey Appellate Division in Rodriguez v. Cano, No. A-1561-21, 2023 N.J. Super. Unpub. LEXIS 1733 (App. Div. Oct. 12, 2023) was whether plaintiff Lenny Rodriguez (“Rodriguez”) was denied a fair trial following a no-cause verdict in a damages-only auto negligence case in favor of defendant-driver Stephanie Cano.  Plaintiff contended that defense counsel went too far in cross-examining Plaintiff’s treating physician about a fraudulent medical services action pending against the physician.

In the trial court proceedings, Defendant Cano did not contest liability; rather, the sole issue for the jury to determine was the amount of damages to be awarded to Rodriguez. During trial, Rodriguez’s treating physician testified to his injuries following the accident. The defense counsel soon after cross-examined the physician, focusing on the fact that a major insurance company had a pending fraudulent medical services action against him. During this cross-examination, the defense counsel also noted that Mr. Rodriguez’s treatment was explicitly included in the insurance fraud complaint to provide an example of the physician’s fraud. The defense counsel reasoned that this line of questioning was for the purpose of establishing the physician’s credibility.

The trial court judge realized only after the cross-examination that this line of questioning, which ultimately implied that Rodriguez’s treatment was unnecessary (or even fraudulent), was inadmissible, and, as such, the court instructed the jurors to disregard the testimony. The judge also allowed Rodriguez’s counsel to engage in re-direct to provide the physician the opportunity to rebut and elaborate on the defense counsel’s accusations. During re-direct, Rodriguez’s physician became irate and made several allegations against the insurer for false allegations and bad faith.

Plaintiff’s Rodriguez’s counsel moved for a mistrial, which the trial court denied. The jury returned a no-cause verdict. Rodriguez’s counsel then moved for a new trial, which the trial court also denied. The judge reasoned that any errors were “harmless.” The judge further reasoned that the jury surely “didn’t consider the evidence that I told them … to disregard,” citing the amount of time the jury took to deliberate; because the jury “didn’t come back in five minutes,” the judge purported that the jury did not think of Mr. Rodriguez and the physician as “criminals” or “fraudsters.” Plaintiff Rodriguez appealed.

The Appellate Division first addressed the defense’s cross-examination of the physician and the timing of the trial court judge’s instruction to the jury to disregard the testimony. The Court cited Rule 608 of the New Jersey Rules of Evidence, which prohibits the use of specific instances of conduct through cross-examination in a civil action to attack a witness’s character for truthfulness. The Court quickly determined that defense counsel’s line of questioning was “patently improper” per Rule 608 and that the trial court’s verdict “cannot stand.”

The Court found that, despite the defense counsel’s purported reason for its cross-examination questioning, it was inadmissible and ergo the trial court did correctly instruct the jury to disregard the testimony. The Court further noted that, although the trial court was well-intentioned in allowing the physician the opportunity for re-direct following the defense counsel’s ambush, this decision was ultimately misguided and backfired, as evidenced by the physician’s outburst.

Stating that “the prejudice to [Mr. Rodriguez] … cannot be overstated,” the Appellate Division ultimately determined that the trial court’s denial of Mr. Rodriguez’s mistrial motion and motion for a new trial was improper; as such, the Court held that Plaintiff was denied a fair trial and reversed the trial court’s decisions and remanded the matter back to the trial court for further proceedings.

By: Ruhani K. Aulakh, Law Clerk

Editor: Sanmathi (Sanu) Dev, Esq.

On October 5, 2023, the New Jersey Appellate Division in A.B. v. Board of Education of the City of Hackensack affirmed that the Hackensack School Board (“Board”) was required to disclose information of a former employee’s sexual misconduct to the employee’s future employer under N.J.S.A. 18A:6-76. 

In 2013, while employed by the Board, a teacher used social media to post inappropriate and sexually suggestive content.  The Board began an investigation into the teacher’s misconduct.  Before the conclusion of the Board’s investigation, the teacher and the Board finalized a settlement agreement in which the teacher agreed to submit an irrevocable letter of resignation. 

Six years after her resignation, the teacher was offered a position with the Clifton Board of Education (“Clifton”).  Pursuant to N.J.S.A. 18A:6-76, commonly known as the “Pass the Trash” statute, Clifton was required to contact the applicant’s prior employers to obtain information relating to child abuse and sexual misconduct.  Clifton sent the Board a questionnaire in which the Board stated that the teacher was subject of a sexual misconduct investigation by the employer and that the teacher resigned from employment while allegations of sexual misconduct were under investigation.  As a result, Clifton rescinded the teacher’s offer of employment.

In August 2019, the teacher filed a complaint in the Chancery Division of the Superior Court of New Jersey, seeking to enforce the confidentiality provision of the settlement agreement between her and the Board, compel the Board to rescind and correct its response to the questionnaire, and enjoin the Board from reporting the investigation to any other prospective employer.  The Chancery court dismissed the teacher’s complaint and transferred the matter to the New Jersey Commissioner of Education who then transferred it to the Office of Administrative Law.

The Administrative Law Judge (“ALJ”) directed the parties to file simultaneous cross-motions for summary decision.  The ALJ granted the Board’s motion for summary decision and denied the teacher’s motion, ultimately dismissing the petition in its entirety.  In response, the teacher filed exceptions upon which the Commissioner issued a final agency decision that adopted the ALJ’s decision.  The teacher then appealed to the Appellate Division.

In her appeal, the teacher set forth several arguments.  First, the teacher argued that the Commissioner improperly granted summary decision because the record indicated disputed issues of material fact.  The teacher then argued that her due process rights were violated when the Commissioner denied the petitioner’s right to a hearing.  Next, she argued that the Commissioner distorted the Legislature’s plain meaning of “sexual misconduct” as defined in N.J.S.A. 18A:6-7.6 and that the Commissioner wrongfully concluded an investigation was pending for sexual misconduct at the time of her resignation.  The teacher also contended that the Commissioner erred by finding the settlement agreement was subject to the requirements of the statute because it was executed before the effective date of the statute.  Finally, the teacher argued that the Commissioner wrongfully determined she consented to the disclosure of information by signing the mandatory authorization form provided by Clifton.

In reviewing an administrative agency’s decision, the Appellate Division imposes a presumption of reasonableness upon the agency, only upsetting the agency’s determination if it was arbitrary, capricious, or unreasonable.  Here, the Appellate Division looked to each of the teacher’s arguments individually to determine whether the agency met this standard.

The Court first analyzed the teacher’s assertion that there were facts in dispute.  The teacher specifically argued that certifications from the Board’s former attorney and her former attorney dispute the principal’s certification that the Board launched an investigation into the teacher’s potential sexual misconduct.  The Court held that these certifications did not indicate that there was not an investigation; rather, these certifications simply pointed to the attorneys’ personal knowledge about the investigations.

The Court then turned to the teacher’s contention that she was never given notice or an opportunity to be heard regarding the Board’s decision.  The Court reasoned that not only is there no notice requirement in the Pass the Trash statute, but also that the Board made no factual findings, thus a hearing was not required.

Moving to the teacher’s arguments that there was no allegation of sexual misconduct nor was there a pending investigation, the Court utilized the principal’s certification.  The certification clearly noted an allegation that prompted the Board to begin an investigation.  The Court held that although the Prosecutor’s office did not press criminal charges, that did not indicate that the Board did not investigate.

Finally, the Court addressed the argument that the Legislature intended to preserve employment settlement agreements entered prior to the enactment of the statute.  To determine whether applying a statute retroactively is appropriate, the Court must look to the legislature’s intent, whether it is explicit or implicit.  Here, the statutory language required that all applicants provide all former employers within the last twenty years that were schools.  The Court held that the language clearly indicates a retroactive application of the statute.  Further, the Court reasoned that even if the language was not clear, the goal of the statute was to ensure the safety of the children and as such, the Legislature would not exempt certain teachers due to a confidentiality clause.

Upon reviewing each of the teacher’s arguments, the Court held that the administrative agency’s decision was not arbitrary, capricious, or unreasonable.  Thus, the Court affirmed the ALJ’s decision.

Plaintiff Shneequa Easterling had been walking on a public sidewalk abutting defendant’s home when she slipped and fell on ice, injuring her neck and back, as well as her right ankle.  She filed a lawsuit against the defendant homeowner, George Johnson, who owned the two-family home abutting the public sidewalk.  The issue in Easterling v. Johnson, 2023 N.J. Super. Unpub. LEXIS 905 (App. Div. June 9, 2023) was whether the defendant homeowner could be liable to the plaintiff for the injuries incurred while walking on the public sidewalk abutting his two-family home. 

Plaintiff contended that the defendant was operating a multi-family rental property and was negligent in failing to warn pedestrians about the ice that existed on the sidewalk next to his property.  She claimed that he failed to keep the premises in a safe condition.

At the trial court level, the defendant moved for a summary judgment, arguing that as a residential homeowner, he had no duty to clear snow and ice from the sidewalk abutting his property.  The trial court judge agreed with the defendant and found that his property was residential in nature and, thus, he had no duty to remove snow or ice on the public sidewalk.

This order was appealed to the Appellate Division.  On appeal, the plaintiff argued that the order granting summary judgment should be reversed because defendant could be held liable for the icy condition of the sidewalk abutting his property, even if it was residential.  She contended that he could be liable if, in clearing the ice and snow from the sidewalk next to his property, he increased the hazard by introducing some element of danger.

The Appellate Division noted prior case law that “absent negligent construction or repair,” the residential property owner “does not owe a duty of care to a pedestrian injured as a result of the condition of the sidewalk abutting the landowner’s property.”  On the other hand, commercial property owners do have such a duty to maintain the sidewalk.

The Court found that there was no evidence in the record that the defendant had made any repairs or otherwise created a dangerous condition on the sidewalk next to his home prior to plaintiff’s fall.  There was also no proof that the defendant’s property was primarily commercial in nature.  The record was devoid of evidence that the defendant had utilized his property for any purpose in the past 40 years as other than his own residence.  There was no evidence that he had rented or generated a profit from any portion of the property.  Thus, the record fairly established that the nature and purpose of defendant’s owner occupied property was primarily residential and not commercial.

Thus, the Appellate Division agreed with the trial court’s order granting summary judgment and affirmed the decision. 

By: Eric Richwine, Law Clerk

Editor: Sanmathi (Sanu) Dev, Esq.

On July 3, 2023, the New Jersey Appellate Division in In re Adoption of N.J.A.C. 6A:27-5.1 upheld the New Jersey Department of Education’s (“the Department”) adoption of an amendment to its regulations governing the transportation of students. This appeal, on behalf of the New Jersey Public Charter Schools Association (“the Association”), arose from the Department’s amendment to N.J.A.C. 6A:27-5.1, which governs the allocation of transportation costs for disabled students who attend out-of-district charter schools. The new subsection, N.J.A.C. 6A:27-5(b), caps the financial responsibility of the district of residence for disabled students’ transportation costs and requires the charter school to pay the remainder of said costs.

Prior to the amendment, the State Board of Education (“the Board”) held a series of three public meetings from June to August of 2020 to discuss the proposed amendment. It also distributed memoranda detailing the proposed change and published a copy of the proposed amendment in the New Jersey Register. Most notably, on September 24, 2020, the Board published a memorandum to notify chief school administrators and charter school project leads about the proposed change. The memorandum included a hyperlink to the proposed regulation itself, as well as an avenue for administrators and members of the public to submit commentary through the Department’s website. Only five comments were received, none of which came from the Association or any charter school. The Board officially approved the amendment on January 6, 2021, and the Department followed suit on January 7, 2021.  

Soon after, the Association appealed to challenge N.J.A.C. 6A:27-5.1(b). It argued that the regulation was ultra vires, i.e., beyond the scope of the Department’s power. It also contended that the regulation should be set aside because the proposal notice did not conform to certain procedural requirements set forth by the Administrative Procedure Act (“APA”).

The Appellate Division first acknowledged that the power of administrative agencies is to be liberally construed in terms of their statutory responsibilities, but the Court does have the power to find for an ultra vires action to set the regulation aside if it is plainly at odds with the statute per the New Jersey Supreme Court’s holding in In re Freshwater Wetlands Prot. Act Rules, 180 N.J. 478, 489 (2004). However, the Appellate Division emphasized that this is a very high burden, requiring the Association to prove that the Department’s decision indicated a “clear showing that it is arbitrary, capricious, or unreasonable, or that it lacks fair support in the record” per the decision of In re Herrmann, 192 N.J. 19, 27-28 (2007).

With this in mind, the Appellate Division analyzed whether the amendment frustrated the original purpose of the statute. It determined that, under the Charter School Program Act of 1995, the legislature delegated the regulation of non-resident students’ charter school transportation to the Board. Thus, because the amended regulation governed transportation of charter school students with disabilities, the Appellate Division determined that the regulation was consistent with the legislature’s express delegation of authority to the Board to regulate transportation services for students attending out-of-district charter schools. The regulation only specified that any costs above the statutory maximum would be covered by the charter school instead of the parents and therefore did not frustrate the statute’s purpose.

The Appellate Division further rejected the Association’s assertion that the change was invalid for failure to comply with the notice requirements of the APA. Although the Association specifically targeted the proposal for amending the regulation, the Appellate Division found the amendment process to be sufficient, especially considering the fact that the Board conducted three public meetings on the proposal, published the proposed rule, notified lead officials at all charter schools, and even provided a link for the public to offer comments.

In light of its findings, the Appellate Division affirmed and upheld N.J.A.C. 6A:27-5.1(b).

On June 29, 2023, the New Jersey Appellate Division issued an unpublished opinion in the matter of Zezza v. Evesham Board of Education.  The appeal arose from a citizen’s request under the Open Public Records Act (“OPRA”) and the common law right of access, for approximately thirty-five (35) seconds of surveillance footage taken from two cameras at an elementary school within the Evesham Township School District (“District”).  The District denied the request for the video footage on the basis of the security exception to OPRA and the case of Gilleran v. Twp. of Bloomfield, 227 N.J. 159 (2016) for the premise the case created a categorical OPRA exception for all public surveillance videos.

The request for the surveillance video arose after plaintiff, Helen Zezza, alleges she was threatened and accosted after her grandson’s baseball game at the elementary school.  The alleged incident was purportedly captured on two of the elementary school’s security cameras.

After the District denied the request for the surveillance video, plaintiff filed a verified complaint in the Superior Court of New Jersey seeking an order to show cause against the District, requesting the court require the District produce the requested security footage and sought attorney’s fees.  Plaintiff also argued the common law right of access to the security footage “outweighs the governmental need for confidentiality.”

The trial court found for plaintiff under both OPRA and the common law right of access.  The trial court ordered the District to produce the surveillance video and determined plaintiff was the prevailing party entitled to an award of $8,046.50 in attorney’s fees.  Specifically, the trial court determined Gilleran allowed for production of a record or portion of a record that does not reveal information about the security scheme of the public building and that it was the District’s burden to demonstrate that the footage would reveal “security compromising information” which the District failed to do.

On appeal to the New Jersey Appellate Division, the District argued the security footage was exempt from disclosure under OPRA and attorney’s fees were not mandatory under the common law right of access.  The Appellate Division disagreed with the District and affirmed the trial court’s decision.  The Appellate Division rejected the District’s contention that Gilleran created a blanket exception for all surveillance videos and also determined the District failed to establish any security concerns to prevent disclosure under OPRA.  Since it was undisputed that OPRA statutorily mandates a fee award to the prevailing party, the Appellate Division rejected the District’s remaining argument the trial judge abused her discretion by awarding attorney’s fees.

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