SPARROWEEN, LLC D/B/A CIGAR EMPORIUM VS. TOWNSHIPÂ OF WEST CALDWELL(L-1966-16, ESSEX COUNTY AND STATEWIDE) ( 2017 )


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  •                   NOT FOR PUBLICATION WITHOUT THE
    APPROVAL OF THE APPELLATE DIVISION
    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-4083-15T1
    SPARROWEEN, LLC d/b/a
    CIGAR EMPORIUM and RICHARD          APPROVED FOR PUBLICATION
    YANUZZI,
    November 14, 2017
    Plaintiffs-Appellants,
    APPELLATE DIVISION
    v.
    TOWNSHIP OF WEST CALDWELL,
    TOWNSHIP OF WEST CALDWELL
    BOARD OF HEALTH and WILLIAM
    WALLACE, INDIVIDUALLY AND
    IN HIS CAPACITY AS HEALTH
    OFFICER OF THE TOWNSHIP OF
    WEST CALDWELL,
    Defendants-Respondents.
    _________________________________
    Argued telephonically October        3,   2017    –
    Decided November 14, 2017
    Before Judges Reisner,1 Gilson, and Mayer.
    On appeal from Superior Court of New Jersey,
    Law Division, Essex County, Docket No. L-1966-
    16.
    Steven J. Martino argued the cause for
    appellants (Iacullo Martino, LLC, attorneys;
    Mr. Martino, on the brief).
    Andrew Gimigliano argued the cause for
    respondents (O'Toole,  Scrivo,  Fernandez,
    Weiner, Van Lieu, LLC, attorneys; Juan C.
    1
    Judge Reisner did not participate in oral argument. She joins
    the opinion with the consent of the parties. R. 2:13-2(b).
    Fernandez, of counsel; Anthony D. Capasso and
    Michael Garcia, on the brief).
    The opinion of the court was delivered by
    GILSON, J.A.D.
    Plaintiffs appeal from an April 18, 2016 order that dismissed
    their   prerogative   writs   action   and    denied    their    request     to
    invalidate a municipal smoking ordinance.             Plaintiffs primarily
    argue that the New Jersey Smoke-Free Air Act (the Smoke-Free Act),
    N.J.S.A. 26:3D-55 to -64, supersedes the municipal ordinance.                We
    affirm because the ordinance is valid and is not superseded by the
    Smoke-Free Act.
    I.
    Plaintiffs    are   Sparroween,    LLC,        d/b/a    Cigar   Emporium
    (Sparroween) and Richard Yanuzzi, the sole owner of Sparroween
    (collectively,    plaintiffs).    Since      June    2015,   Sparroween    has
    operated a tobacco retail store in West Caldwell.2              One-third of
    the store consists of sale space for purchasing cigars, pipe
    tobacco, and related accessories.         The remainder of the store
    consists of seating areas for customers.
    2
    At oral argument, counsel for the parties informed us that
    Sparroween has ceased operating the store. Counsel for plaintiffs
    also represented that the store might reopen if the ordinance was
    invalidated.
    2                                  A-4083-15T1
    In early 2014, Sparroween submitted an application to the
    West Caldwell Planning Board (the Planning Board) for site plan
    and development approval to open a tobacco retail establishment.
    The application stated that Sparroween's intent was to sell cigars,
    pipe tobacco, and various accessories, and that the premises would
    have seating areas where customers could smoke tobacco products
    purchased from the store. The Planning Board forwarded plaintiffs'
    application to other Township officials, including the Board of
    Health and the Health Officer.
    In response, the Health Officer submitted a memorandum to the
    Planning Board and Sparroween, commenting on the application and
    identifying    certain    "requirements"    for    the    application        (the
    Memorandum).       The Memorandum noted that for Sparroween to receive
    a tobacco retail establishment waiver under the Smoke-Free Act,
    plaintiffs would need to submit a notice of claim for exemption.
    In the Memorandum, the Health Officer also suggested certain
    conditions, including that: (1) the establishment be a "cash and
    carry"   business,      "with    the   general    purpose    of    purchasing
    product[s]    for    off-premise[s]    consumption[;]"       and   (2)     "pre-
    purchase sampling shall be limited to no more than 3 minutes prior
    to   making    a    multi-unit   purchase   from    the     [tobacco      retail
    establishment]."
    3                                 A-4083-15T1
    Thereafter, the Planning Board held a hearing on Sparroween's
    application.     At the hearing, the chairman of the Planning Board
    informed Sparroween that if its application was approved, the
    approval would only cover its use as a retail store and a lounge
    for customers.    Thus, the approval would not cover indoor smoking.
    In response, representatives of Sparroween acknowledged that they
    would be subject to regulatory requirements to get approval for
    indoor smoking.
    Following     the    hearing,    the    Planning   Board   approved
    Sparroween's application, and on April 21, 2014, it issued a
    resolution approving the application for "the retail sale of
    [t]obacco   products      and   accessories."     The   resolution    was
    conditioned on Sparroween complying "with all [f]ederal, state and
    local laws, rules and regulations[.]"         The resolution also noted
    that Sparroween had read the recommendations of the Health Officer
    set forth in the Memorandum.
    Following receipt of its development and site plan approval,
    Sparroween leased and renovated the premises.            In June 2015,
    Sparroween opened Cigar Emporium.           In August 2015, the Health
    Officer issued a notice of violation to Sparroween for failing to
    file a claim for exemption of a tobacco retail establishment under
    the Smoke-Free Act.      Sparroween eventually submitted the claim for
    exemption on August 31, 2015.
    4                           A-4083-15T1
    In early December 2015, the West Caldwell Board of Health
    passed   an   ordinance   governing       smoking   inside    tobacco    retail
    establishments (the Smoking Ordinance).             Under that ordinance,
    smoking was restricted to "pre-purchase sampling" and was limited
    to "no more than 2 minutes[.]"              The ordinance also required
    operators of tobacco retail establishments to register with the
    Board of Health and to obtain a license from the Township's Health
    Officer.
    Later that month, on December 24, 2015, the Health Officer
    sent Sparroween a notice of violation of the Smoking Ordinance for
    allegedly allowing "continuous smoking" inside Cigar Emporium.
    The notice directed Sparroween to cease allowing smoking and stated
    that failure to comply would result in the issuance of summonses
    and the imposition of fines.     Counsel for Sparroween contacted the
    Board of Health, but the parties did not resolve their differences.
    Thereafter, on March 19, 2016, the Health Officer came to
    Cigar Emporium, found patrons smoking, and issued four summonses
    to   Sparroween   for   violations    of    the   Smoking    Ordinance.3       In
    response, on March 21, 2016, plaintiffs filed an order to show
    3
    Plaintiffs alleged that the Health Officer also issued summonses
    to five customers who were found smoking inside Cigar Emporium.
    The individual customers, however, were not parties to the matter
    in the trial court and there is no issue concerning the individual
    customers before us on this appeal.
    5                                 A-4083-15T1
    cause seeking temporary restraints against the enforcement of the
    Smoking Ordinance.       Plaintiffs also filed a verified complaint for
    declaratory judgment and in lieu of prerogative writs, naming as
    defendants the Township of West Caldwell, the Township Board of
    Health, and the Township Health Officer.              The complaint sought a
    declaration that the Smoking Ordinance was illegal and void.
    The trial court initially granted the temporary restraints
    and set a return date for a hearing.           Defendants filed opposition
    to the restraints, and a motion to dismiss the complaint.                   After
    hearing oral argument on April 12, 2016, the trial court entered
    an   order    vacating       the   temporary   restraints        and   dismissing
    plaintiffs' complaint with prejudice.                The court explained the
    reasons for its ruling in a cogent decision read into the record.
    In short, the court held that the Smoke-Free Act did not supersede
    the Smoking Ordinance.             The court also held that the Smoking
    Ordinance was a validly enacted health ordinance and plaintiffs
    were not entitled to declaratory relief.
    II.
    On appeal, plaintiffs make three arguments, contending that:
    (1) the Smoking Ordinance is not valid because it is superseded
    by the Smoke-Free Act; (2) alternatively, the Smoking Ordinance
    operates     as   a   land   use   ordinance   and    is   not    applicable     to
    plaintiffs' non-conforming pre-existing use; and (3) the trial
    6                                 A-4083-15T1
    court       erred    in   dismissing     their       complaint      before   allowing
    discovery.          We are not persuaded by any of these arguments, and
    we affirm the trial court's April 18, 2016 order.
    A.     The Smoke-Free Act Does Not Supersede the West Caldwell
    Smoking Ordinance
    The primary issue on appeal is whether the Smoking Ordinance
    is superseded or preempted by the Smoke-Free Act.                     That issue is
    a question of law, which we review de novo.                   McGovern v. Rutgers,
    
    211 N.J. 94
    , 108 (2012).
    The Smoke-Free Act generally prohibits smoking of tobacco in
    an indoor public place or workplace. N.J.S.A. 26:3D-58. An indoor
    public place includes a "structurally enclosed place of business,
    commerce or other service-related activity," including a for-
    profit privately owned structure, "which is generally accessible
    to the public . . . ."         N.J.S.A. 26:3D-57.
    In enacting the Smoke-Free Act, the Legislature found that
    tobacco is a leading cause of preventable disease and death in New
    Jersey, tobacco smoke constitutes a substantial health hazard to
    the non-smoking "majority" of the public, and it was in the
    public's interest to prohibit smoking tobacco products in indoor
    places of public access.         N.J.S.A. 26:3D-56.
    The Smoke-Free Act allows for certain exemptions and states
    that    its    prohibitions     do     not       apply   to   any   "tobacco    retail
    7                                 A-4083-15T1
    establishment[,]"     "cigar   bar[,]"    "cigar   lounge[,]"      or     other
    identified places.     N.J.S.A. 26:3D-59.      The Smoke-Free Act then
    defines "tobacco retail establishment", "cigar bar", and "cigar
    lounge".    N.J.S.A. 26:3D-57.
    The Smoke-Free Act also supersedes other statutes, municipal
    ordinances, rules, or regulations concerning smoking in an indoor
    public place or workplace, with certain exceptions.                N.J.S.A.
    26:3D-63.    Specifically, the Smoke-Free Act states:
    The provisions of this act shall supersede any
    other statute, municipal ordinance and rule
    or   regulation   adopted  pursuant   to   law
    concerning smoking in an indoor public place
    or   workplace,   except  where   smoking   is
    prohibited by municipal ordinance under
    authority of [N.J.S.A.] 40:48-1 or 40:48-2 or
    by any other statute or regulation adopted
    pursuant to law for purposes of protecting
    life and property from fire or protecting
    public health, and except for those provisions
    of a municipal ordinance which provide
    restrictions on or prohibitions against
    smoking equivalent to, or greater than, those
    provided under this act.
    [Ibid.]
    Plaintiffs   rely   on    N.J.S.A.   26:3D-63   and   argue    that       it
    supersedes the Smoking Ordinance.          In that regard, plaintiffs
    contend that the Smoke-Free Act allows for their operation of a
    tobacco retail establishment and does not limit the amount of time
    that customers can smoke in the establishment.             Plaintiffs then
    contend that the superseding provision of the Smoke-Free Act
    8                                   A-4083-15T1
    grandfathered      municipal     ordinances      that      pre-dated    the      2006
    enactment     of   the   Smoke-Free     Act,   but    prohibited       all    future
    ordinances that are more restrictive.                 We disagree with this
    suggested interpretation because the plain language of the Smoke-
    Free Act does not support such a reading.
    West Caldwell's Smoking Ordinance requires tobacco retail
    establishments, claiming to be exempt from the Smoke-Free Act, to
    file an annual notice with the Board of Health and to be licensed.
    The Smoking Ordinance also places restrictions on indoor smoking.
    Specifically, the Smoking Ordinance limits smoking to pre-purchase
    sampling not to exceed two minutes.              These provisions are more
    restrictive than the Smoke-Free Act.              Accordingly, the Smoking
    Ordinance is only valid if it is not superseded by the Smoke-Free
    Act.
    The starting place for statutory interpretation is the Act's
    plain language.      N. Jersey Media Grp., Inc. v. Twp. of Lyndhurst,
    
    229 N.J. 541
    , 557 (2017).        Here, the controlling provision is the
    superseding section of the Smoke-Free Act, N.J.S.A. 26:3D-63. That
    provision states that the Smoke-Free Act supersedes "any other
    statute,     municipal    ordinance     and    rule   or    regulation       adopted
    pursuant to law concerning smoking in an indoor public place or
    workplace . . . ."       The provision then identifies three exceptions
    when   the   Smoke-Free    Act   does    not   supersede      such   laws.        The
    9                                    A-4083-15T1
    exceptions are: (1) "where smoking is prohibited by municipal
    ordinance under authority of [N.J.S.A.] 40:48-1 or 40:48-2[;]" (2)
    where smoking is prohibited "by any other statute or regulation
    adopted pursuant to law for purposes of protecting life and
    property   from    fire   or   protecting    public   health[;]"   and    (3)
    "provisions of a municipal ordinance which provide restrictions
    on or prohibitions against smoking equivalent to, or greater than,
    those provided under this act."          N.J.S.A. 26:3D-63.
    Applying the plain language of the superseding provision of
    the Smoke-Free Act, the Smoking Ordinance arguably falls under all
    three exceptions, but clearly falls under the first and third
    exceptions.    As to the first exception, the West Caldwell Board
    of Health adopted the Smoking Ordinance pursuant to its authority
    under   N.J.S.A.   40:48-2,    which   allows   municipalities     to   enact
    ordinances for the preservation of public health.          As to the third
    exception, it is uncontested that the Smoking Ordinance imposes
    greater restrictions than the Smoke-Free Act.
    Plaintiffs focus on the word "adopted" and argue that such
    language limits the applicability of the exceptions to previously
    adopted    laws,   municipal    ordinances,     rules   and   regulations.
    Reading the plain language of the superseding provision does not
    support such an interpretation.          The word "adopted", as used in
    the Smoke-Free Act, plainly refers to existing laws, ordinances,
    10                              A-4083-15T1
    rules and regulations, as well as those that may be adopted in the
    future.
    B.     The Smoking Ordinance Is Not a Land Use Ordinance
    Plaintiffs next argue that if the Smoking Ordinance is valid,
    it is effectively a land use ordinance and because it was adopted
    after Cigar Emporium opened, the Emporium is a pre-existing non-
    conforming   use    exempt     from    the   prohibitions    of   the   Smoking
    Ordinance.   We reject this argument because the Smoking Ordinance
    was a validly adopted health ordinance.
    Municipal health boards are granted the authority to enact
    and amend health ordinances.           N.J.S.A. 26:3-64.       Accordingly, a
    municipality may pass an ordinance or regulation "as it may deem
    necessary and proper . . . for the preservation of public health,
    safety and welfare of the municipality and its inhabitants . . .
    ."   N.J.S.A. 40:48-2.         See LDM, Inc. v. Princeton Reg. Health
    Comm'n, 
    336 N.J. Super. 277
    , 291 (App. Div. 2000) (citing State
    v.   Crawley,      
    90 N.J. 241
    ,    247    (1982))      (explaining     that
    municipalities may enact health ordinances that are reasonably
    related to a legitimate object of public health, safety, or
    welfare).
    The Smoking Ordinance, like all municipal ordinances, is
    entitled to a presumption of validity.               Grabowsky v. Twp. of
    Montclair, 
    221 N.J. 536
    , 551 (2015).           Here, the Smoking Ordinance
    11                               A-4083-15T1
    was enacted by the West Caldwell Board of Health in accordance
    with its authority under N.J.S.A. 26:3-64 and N.J.S.A. 40:48-2.
    The Smoking Ordinance is rationally related to the Township's
    legitimate interest in protecting the health and welfare of its
    citizens   by    limiting   their   exposure   to   second-hand    smoke.
    Additionally, many ordinances, including health ordinances, touch
    on the use of land, but are not within the planning and zoning
    concerns of the Municipal Land Use Law (MLUL), N.J.S.A. 40:55D-1
    to -17.    "[S]uch ordinances are enacted pursuant to the general
    police power and apply to everyone."           See, e.g., N.J. Shore
    Builders Ass'n v. Twp. of Jackson, 
    199 N.J. 38
    , 53-54 (2009)
    (applying the rational basis test to determine the validity of a
    municipal ordinance adopted pursuant to N.J.S.A. 40:48-2, and
    holding that the ordinance did not fall within the purview of the
    MLUL despite affecting the use of land). Consequently, the Smoking
    Ordinance is a valid municipal health ordinance and it is not a
    land use ordinance.
    C.    Plaintiffs' Complaint Was Properly Dismissed
    We use a de novo standard when reviewing an order dismissing
    a complaint for failure to state a claim.      When reviewing a motion
    to dismiss under Rule 4:6-2(e), we assume that the allegations in
    the pleadings are true and afford the pleader all reasonable
    inferences.     Seidenberg v. Summit Bank, 
    348 N.J. Super. 243
    , 249-
    12                            A-4083-15T1
    50 (App. Div. 2002).       "Where, however, it is clear that the
    complaint states no basis for relief and that discovery would not
    provide one, dismissal of the complaint is appropriate."    J.D. ex
    rel. Scipio-Derrick v. Davy, 
    415 N.J. Super. 375
    , 397 (App. Div.
    2010) (quoting Cty. of Warren v. State, 
    409 N.J. Super. 495
    , 503
    (App. Div. 2009), certif. denied, 
    201 N.J. 153
    , cert. denied sub
    nom., 
    561 U.S. 1026
    , 
    130 S. Ct. 3508
    , 
    177 L. Ed. 2d 1092
     (2010)).
    Here, plaintiffs' complaint alleged four causes of action and
    sought two forms of relief: (1) a declaration that the Smoking
    Ordinance was illegal and void; and (2) a damages award holding
    the Health Officer liable for his alleged wrongful and malicious
    interference with plaintiffs' business.     Because we have held as
    a matter of law that the Smoking Ordinance was valid, neither of
    these forms of relief could be granted.      Moreover, there was no
    need for discovery since the controlling issue was an issue of
    law.
    Affirmed.
    13                          A-4083-15T1