RATAN PALACE, LLC VS. TOWNSHIP OF NORTH BERGEN PLANNING BOARD (L-4183-16, HUDSON COUNTY AND STATEWIDE) ( 2018 )


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  •                         NOT FOR PUBLICATION WITHOUT THE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-4059-16T1
    RATAN PALACE, LLC,
    Plaintiff-Appellant,
    v.
    TOWNSHIP OF NORTH BERGEN
    PLANNING BOARD, ROHIT GAUR
    and SUMAN LATA,
    Defendants-Respondents.
    _______________________________
    Argued August 8, 2018 – Decided August 23, 2018
    Before Judges Hoffman and Currier.
    On appeal from Superior Court of New Jersey,
    Law Division, Hudson County, Docket No.
    L-4183-16.
    Francis A. Kirk argued the cause for appellant
    (Tesser & Cohen, attorneys; Francis A. Kirk,
    on the briefs).
    Nylema Nabbie argued the cause for respondent
    Township of North Bergen Planning Board
    (Gittleman Muhlstock & Chewcaskie, LLP,
    attorneys; Brian M. Chewcaskie and Nylema
    Nabbie, on the brief).
    Denis F. Driscoll argued the cause for
    respondents   Rohit  Gaur   and  Suman   Lata
    (Inglesino, Webster, Wyciskala & Taylor, LLC,
    attorneys; Nicholas A. Grieco, of counsel;
    Joseph M. Franck and Alyssa E. Spector, on the
    brief).
    PER CURIAM
    Plaintiff Ratan Palace LLC appeals from the February 22, 2017
    order denying its motion to file an amended complaint and the
    April    19,    2017   order   of   final   judgment    denying     relief    and
    dismissing its complaint.           After a review of the contentions in
    light of the record and applicable principles of law, we affirm.
    Plaintiff is the owner of real property in the Township of
    North Bergen (Township) on which it operates a Holiday Inn Express
    Hotel.     In February 2015, the Township enacted Township of North
    Bergen, N.J., Code § 239-15 (Ordinance 239-15), which changed the
    zoning in the Paterson Plank Road/Grand Avenue area to multifamily
    residential dwelling units with studio, one-bedroom, and two-
    bedroom units.
    In    January     2016,   defendants    Rohit     Gaur   and   Suman    Lata
    (defendants) purchased property on Paterson Plank Road in the
    newly zoned area. On April 27, 2016, the Township adopted Township
    of North Bergen, N.J., Code § 292-16 (Ordinance 292-16), which
    permitted hotel use only for defendants' lots, not the entire
    zone.    The notice of passage of the ordinance was published on May
    3, 2016.
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    Defendants filed an application before defendant, Township
    of North Bergen Planning Board (Board), in June 2016, seeking site
    plan approval and certain variances in connection with its proposal
    to build a hotel.   Plaintiff was not within the required radius
    to receive notice of the application and asserts it was unaware
    of the August hearing.   After testimony, the Board approved the
    application.
    The application was scheduled for a final vote for final site
    plan approval at the September 6, 2016 Board meeting.    Plaintiff
    was present at the meeting and objected to the approval of the
    application.   The Board adopted Resolution 2016-21 that evening,
    memorializing its earlier approval.
    In October 2016, plaintiff filed a complaint in lieu of
    prerogative writs against defendants and the Board, challenging
    the final site plan approval, and contending Ordinance 292-16 was
    impermissible "spot zoning" implemented solely to permit a use for
    defendants' property not previously allowed in that zone.        All
    defendants answered the complaint and the parties attended a case
    management conference.
    Plaintiff moved to amend its complaint to add the Township
    as a defendant in January 2017.   The named defendants opposed the
    motion, arguing any amendment would be futile because plaintiff
    failed to timely challenge Ordinance 292-16.   After oral argument,
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    the trial judge issued a cogent written decision denying the
    motion.
    Under Rule 4:69-6(a)(3), an action in lieu of prerogative
    writs must be commenced within forty-five days of the publication
    of the notice of enactment.        In considering whether to extend the
    requisite time to challenge the ordinance as permitted under Rule
    4:69-6(c), the judge stated plaintiff had not asserted a public
    interest to justify the limited expansion of time permitted under
    the rule.      He also noted plaintiff had not submitted any proofs
    to   support    its   allegation    that     the    ordinance   was    amended
    specifically to benefit defendants.                As the challenge to the
    ordinance   was   untimely   filed,    the    judge    determined     that   any
    amendment to add the Township as a defendant would be futile.                The
    motion to amend the complaint was denied.
    Following a trial in April 2017, the judge determined he
    could not "find any evidence in the record to conclude the Planning
    Board's decision was arbitrary, capricious, or unreasonable."                  He
    noted the expert testimony regarding parking and traffic, signage,
    and proposed building materials, and concluded "[t]he application
    was approved because it was in compliance with the ordinance's
    permitted hotel use."        As the Township was not a party to the
    suit, the validity of the ordinance permitting a hotel use on
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    defendants' property was not before the court.           Final judgment was
    entered on April 19, 2017.
    On appeal, plaintiff argues the court erred in denying its
    motion to amend the complaint and should have declared Ordinance
    292-16 invalid because it departed from the Township's Master Plan
    and was impermissible spot zoning.          We disagree.
    We review a judicial decision to deny a motion to amend a
    pleading for an abuse of discretion.             Franklin Med. Assocs. v.
    Newark Pub. Sch., 
    362 N.J. Super. 494
    , 506 (App. Div. 2003)
    (holding the decision on a motion to amend is "left to the sound
    discretion of the trial court").
    Rule 4:9-1 governs the amendment of a pleading, requiring the
    leave of court or written consent for any amendment after the
    filing of an Answer.          Although such motions are to be "granted
    liberally," the determination is "best left to the sound discretion
    of the trial court in light of the factual situation existing at
    the time each motion is made."            Kernan v. One Washington Park
    Urban Renewal Assocs., 
    154 N.J. 437
    , 456-57 (1998) (quoting Fisher
    v. Yates, 
    270 N.J. Super. 458
    , 467 (App. Div. 1994)).                  However,
    if the amendment will result in prejudice to the non-moving party
    or   would   otherwise   be    futile,    the   motion   should   be   denied.
    Bustamante v. Borough of Paramus, 
    413 N.J. Super. 276
    , 298 (App.
    Div. 2010).
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    The passage of Ordinance 292-16 was published on May 3, 2017.
    The judge properly concluded the time to challenge the ordinance
    expired    on    June   17,     2016,   forty-five   days    later.    However,
    plaintiff did not challenge the ordinance until it filed the
    prerogative writ action in October and, even then, it was not
    asserted against the proper party.
    Rule 4:69-6(c) permits a court to enlarge the forty-five day
    time period to challenge a municipal action when "it is manifest
    that the interest of justice so requires."                Our Supreme Court has
    interpreted the rule to permit an enlargement of time in "cases
    involving: (1) important novel or constitutional questions; (2)
    informal    or    ex    parte    determinations      of   legal   questions    by
    administrative officials; and (3) important public rather than
    private interests which require adjudication or clarification."
    Brunetti v. Borough of New Milford, 
    68 N.J. 576
    , 586 (1975).
    Plaintiff argued to the trial judge, as he does before us,
    that the action involves an important public interest.                 However,
    plaintiff provides no further support for the statement.               The only
    record before the court was the transcript from the Board hearing,
    provided by counsel and reviewed by the judge after oral argument
    6                             A-4059-16T1
    on plaintiff's motion.    The judge noted there was no "basis in the
    record to establish the public interest envisioned in Rocky Hill."1
    In Rocky Hill, a citizen's group challenged the planning
    board's grant of an application for an age-restricted development
    as well as an ordinance permitting the re-zoning of the area for
    the development. Id. at 390. We affirmed the trial judge's ruling
    that the challenge to the ordinance was untimely under Rule 4:69-
    6.   Id. at 403.    We found plaintiff had not established a public
    interest to warrant an enlargement of time because there were "no
    public funds involved, no political upheavals, no significant
    impact on density, traffic, ratables or any other interest other
    than the concerns expressed by the individual plaintiffs and their
    supporters."    Id. at 401.
    Plaintiff here seeks to distinguish Rocky Hill, asserting the
    ordinance at issue in that case was a "subject of intense debate"
    with extensive public hearings and consideration.           In contrast,
    plaintiff      states,   Ordinance       292-16   was   a     "seemingly
    inconsequential amendment to a redevelopment plan encompassing
    eleven lots in a community of 60,000 people . . . unlikely to be
    noticed."   This statement belies plaintiff's argument that the
    ordinance involved any public interest, but rather supports the
    1
    Rocky Hill Citizens for Responsible Growth v. Planning Bd. of
    the Borough of Rocky Hill, 
    406 N.J. Super. 384
     (App. Div. 2009).
    7                           A-4059-16T1
    conclusion that it is only the private interest of plaintiff as a
    business competitor at play here.
    We also find plaintiff's reliance on Willoughby v. Planning
    Board of Township of Deptford, 
    306 N.J. Super. 266
     (App. Div.
    1997), unpersuasive.    There, we reversed the trial court's denial
    of an extension of the forty-five day period under Rule 4:69-6.
    
    Id. at 279
    .    We found the matter was one of public interest, as
    the development of the property in accordance with the zoning
    change would have a significant impact on residents of an adjoining
    neighborhood and the flow of traffic on a major roadway.           
    Id. at 277-78
    .    Plaintiff here has not established any of those factors.
    The   limited   expansion   permitted   under    the   rule   is   the
    exception, and plaintiff has not demonstrated the public interest
    required to meet that exception.          Therefore, the trial judge
    properly denied the motion to amend as futile, as any challenge
    to the ordinance was time-barred.
    Plaintiff next argues the trial judge should have struck down
    Ordinance 292-16 on its own as impermissible spot zoning and
    noncompliant with the Township's Master Plan.        As discussed above,
    however, without the Township as a party to the action, there can
    be no challenge to the ordinance.      Although plaintiff contests the
    actions of the Township in passing the ordinance, it did not name
    the Township as a party, therefore losing the opportunity to
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    challenge the ordinance.         See Jackson Holdings, LLC v. Jackson
    Twp. Planning Bd., 
    414 N.J. Super. 342
    , 350 (App. Div. 2010)
    (holding a "governing body must also be joined as a defendant
    before a court entertains a challenge to the validity of a zoning
    ordinance").
    Therefore, the only issue before the trial judge was whether
    the   Board's   decision    to   approve     defendants'    application   was
    arbitrary or capricious.           Plaintiff presents no arguments to
    support a contrary finding.           The Board considered defendants'
    application,      which   was    supported    by   expert   testimony,    and
    determined it complied with the ordinance's permitted use.                The
    trial   judge's    conclusion     upholding    the   Board's   decision     is
    supported by the credible evidence in the record.
    Affirmed.
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