TOWNSHIP OF BERKELEY VS. CENTRAL REGIONAL BOARD OF Â EDUCATION VS. TOMS RIVER REGIONAL SCHOOLS BOARD OF Â EDUCATIONTOWNSHIP OF BERKELEY VS. CENTRAL REGIONAL BOARD OF Â EDUCATION VS. BOROUGH OF SEASIDE PARK(COMMISSIONER OF EDUCATION)(CONSOLIDATED) ( 2017 )


Menu:
  •                         NOT FOR PUBLICATION WITHOUT THE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 NOS. A-2768-12T3
    A-2826-12T3
    A-1943-13T3
    A-1968-13T3
    TOWNSHIP OF BERKELEY,
    Petitioner-Appellant,
    v.
    CENTRAL REGIONAL BOARD OF
    EDUCATION,
    Respondent/Cross-Petitioner-
    Appellant,
    v.
    TOMS RIVER REGIONAL SCHOOLS
    BOARD OF EDUCATION,1
    Respondent/Cross-Respondent-
    Respondent,
    and
    BOROUGH OF ISLAND HEIGHTS, BOARD OF
    EDUCATION OF THE BOROUGH OF ISLAND
    HEIGHTS, BOROUGH OF SEASIDE HEIGHTS,
    BOARD OF EDUCATION OF THE BOROUGH OF
    SEASIDE HEIGHTS, BOROUGH OF OCEAN
    GATE, BOARD OF EDUCATION OF THE
    1
    Improperly pled as Board of Education of Toms River Regional
    School District.
    BOROUGH OF OCEAN GATE, and
    MICHAEL RITACCO,
    Respondents.
    ___________________________________
    TOWNSHIP OF BERKELEY,
    Petitioner-Appellant,
    v.
    CENTRAL REGIONAL BOARD
    OF EDUCATION,
    Respondent/Cross-Petitioner-
    Appellant,
    v.
    BOROUGH OF SEASIDE PARK, and
    BOARD OF EDUCATION OF THE
    BOROUGH OF SEASIDE PARK,
    Respondents/Cross-Respondents-
    Respondents,
    and
    BOROUGH OF ISLAND HEIGHTS, BOARD
    OF EDUCATION OF THE BOROUGH OF
    ISLAND HEIGHTS, BOROUGH OF SEASIDE
    HEIGHTS, BOARD OF EDUCATION OF THE
    BOROUGH OF SEASIDE HEIGHTS, BOROUGH
    OF OCEAN GATE, and BOARD OF EDUCATION
    OF THE BOROUGH OF OCEAN GATE,
    Respondents.
    ____________________________________
    Argued March 28, 2017 – Decided August 10, 2017
    Before Judges Reisner, Rothstadt and Sumners.
    2                           A-2768-12T3
    On appeal from the Commissioner of Education,
    Agency Docket No. 348-11/09.
    Francis J. Campbell argued the cause for
    appellant Township of Berkeley (Campbell &
    Pruchnik LLC, attorneys; Mr. Campbell, of
    counsel and on the briefs; Roslynne G. Novack,
    on the briefs).
    Christopher Dasti argued the cause for
    appellant Central Regional Board of Education
    (Dasti, Murphy, McGuckin, Ulaky, Koutsouris &
    Connors, attorneys; Arthur Stein, on the
    briefs).
    Vito A. Gagliardi, Jr., argued the cause for
    respondents Seaside Park Board of Education
    and Borough of Seaside Park (Porzio, Bromberg
    & Newman, PC, attorneys; Mr. Gagliardi, of
    counsel; Kerri A. Wright and Phillip C.
    Bauknight, on the brief).
    Marguerite Kneisser argued the cause for
    respondent Toms River Regional Schools Board
    of Education (Carluccio, Leone, Dimon, Doyle
    & Sacks, LLC, attorneys; Stephan R. Leone, of
    counsel; Ms. Kneisser, on the brief).
    Lauren A. Jensen, Deputy Attorney General,
    argued the cause for respondent Commissioner
    of Education (Christopher S. Porrino, Attorney
    General, attorney; Melissa H. Raksa, Assistant
    Attorney General, of counsel; Ms. Jensen, on
    the brief).
    PER CURIAM
    In these four consolidated appeals, petitioners Berkeley
    Township   and   Central   Regional       School   District   (collectively,
    petitioners) have each appealed from two final decisions issued
    by the Commissioner of Education.          The Commissioner's January 10,
    3                              A-2768-12T3
    2013 decision adopted the initial decision of an administrative
    law judge (ALJ) dismissing as moot petitions filed against the
    Toms River Board of Education and its former superintendent,
    Michael Ritacco.      The Commissioner's November 4, 2013 decision
    adopted an initial decision denying petitioners' motions to amend
    their petitions, because the amendments sought to add a party over
    which the Commissioner had no jurisdiction and sought relief that
    was beyond the Commissioner's jurisdiction to provide.              Agreeing
    with the ALJ, the Commissioner concluded that the new claims,
    which petitioners sought to assert, should be adjudicated in
    Superior Court or elsewhere, and not before the Commissioner.             For
    the reasons that follow, we affirm the January 10, 2013 and
    November 4, 2013 final decisions.
    The    history   of   the   underlying   dispute   was    exhaustively
    detailed in this court's prior opinion in Borough of Seaside Park
    v. Commissioner of New Jersey Department of Education, 432 N.J.
    Super. 167, 177-90 (App. Div.), certif. denied, 
    216 N.J. 367
    (2013), and in the ALJ's and Commissioner's decisions in this
    case.    The Central Regional school district consists of five Ocean
    County     municipalities,   including    Seaside   Park      and   Berkeley
    Township.     For approximately a decade, Seaside Park, which is
    smaller and more affluent than most of the other municipalities
    in the district, has been trying to either withdraw from the
    4                               A-2768-12T3
    regional district or obtain a modification of the formula by which
    it contributes to the district's costs.
    In 2009, some of the parents in Seaside Park began sending
    their children to school in nearby Toms River, rather than sending
    them to the Central Regional district schools.            Initially, by
    agreement with the Seaside Park Board of Education, Toms River
    allowed the children to attend its schools without paying out-of-
    district tuition.    However, after petitioners complained to the
    Commissioner, Toms River began charging tuition.           According to
    petitioners, a local citizens group known as Citizens Aligned for
    Responsible and Equitable Schools (C.A.R.E.S.) actually paid the
    students' tuition.     Petitioners contend that C.A.R.E.S. obtained
    the tuition funding through an illegal scheme in which Seaside
    Park awarded C.A.R.E.S. a no-bid municipal contract for work the
    group did not actually perform.
    The Seaside Park opinion addressed the right of individual
    Seaside Park parents to send their children to out-of-district
    schools.   "They [the parents] are not required to send their
    children to Central Regional.        They can send their children to
    other schools at their own expense, relocate to another school
    district, or even home-school their children."        
    Id. at 222.
    The   pertinent     education       statute,   N.J.S.A.   18A:38-3,
    authorizes any school district to permit out-of-district students
    5                           A-2768-12T3
    to attend its school system, with or without paying tuition.
    Putting aside whether Toms River could lawfully permit Seaside
    Park students to attend without paying tuition in the circumstances
    of this case, the dispute over the "free tuition" policy was
    rendered moot in 2011, when Toms River instituted a policy of
    requiring tuition payments. See Greenfield v. N.J. Dep't of Corr.,
    
    382 N.J. Super. 254
    , 257-58 (App. Div. 2006) (addressing the
    mootness doctrine).   Accordingly, substantially for the reasons
    stated by the ALJ and adopted by the Commissioner, we affirm the
    January 10, 2013 decision dismissing the original petitions as
    moot.
    Considering the record in light of the applicable standard
    of review, we likewise find no basis to disturb the Commissioner's
    decision denying the motions to file amended petitions.    See Bd.
    of Educ. of Bor. of Englewood Cliffs v. Bd. of Educ. of the City
    of Engelwood, 
    257 N.J. Super. 413
    , 455-56 (App. Div. 1992), aff'd
    o.b., 
    132 N.J. 327
    (1993).   The new claims petitioners sought to
    assert raised legal issues that were beyond the Commissioner's
    jurisdiction.   As we have previously recognized, although the
    Commissioner has plenary jurisdiction to determine controversies
    arising under the school laws, N.J.S.A. 18A:6-9, that does not
    mean the Commissioner has jurisdiction over every conceivable
    controversy that concerns a board of education.        See Archway
    6                          A-2768-12T3
    Programs, Inc. v. Pemberton Twp. Bd. of Educ., 
    352 N.J. Super. 420
    , 424-26 (App. Div. 2002).         In Archway, for example, we held
    that a breach of contract claim against a board of education did
    not fall within the Commissioner's jurisdiction, but instead was
    properly filed in the Law Division.          
    Id. at 431.
         However, to the
    extent that the contract claim implicated legal issues within the
    Commissioner's jurisdiction, the court might, under the doctrine
    of   primary      jurisdiction,   refer    that    discrete     issue   to   the
    Commissioner for resolution.        
    Id. at 425.
    In   this    case,   petitioners    allege   that   the    Seaside     Park
    municipal government, and the Seaside Park Board of Education
    (BOE), conspired with C.A.R.E.S. to illegally provide public funds
    with which to pay local students' tuition to attend the Toms River
    schools.    According to petitioners, the conspiracy involved the
    awarding of an allegedly illegal no-bid contract to C.A.R.E.S.,
    for work that the organization itself did not actually perform.
    Petitioners also alleged that one or more members of the municipal
    governing body or the BOE had conflicts of interest in approving
    or facilitating the contract, and that C.A.R.E.S. was not operating
    as a legitimate charitable organization.
    We agree with the Seaside Park respondents that, so long as
    the Toms River Board of Education permits it, Seaside Park parents
    can lawfully pay tuition and send their children to the Toms River
    7                                  A-2768-12T3
    schools.2     See Seaside 
    Park, supra
    , 432 N.J. Super. at 222;
    N.J.S.A. 18A:38-3.         The parents can raise the tuition by holding
    bake sales, soliciting private donations, or by any other lawful
    means.      However, the crux of petitioners' claims is that the
    tuition money was obtained by unlawful means, and that the alleged
    unlawful funding conspiracy should cease.                   Their proposed amended
    petitions asserted that the various named respondents (including
    C.A.R.E.S.) committed fraud and money laundering, N.J.S.A. 2C:21-
    25, as well as violations of the Local Public Contracts Law, local
    government        ethics    laws,     and       statutes    governing     non-profit
    corporations.        None of those causes of action arose under the
    school laws.        We agree with the Commissioner that such claims,
    against     the    municipal    defendants         and     C.A.R.E.S.,    should     be
    asserted     in     the    Superior    Court.            See,   e.g.,    R.   4:69-1.
    Additionally or alternatively, some of the claims may fall within
    the jurisdiction of the Local Finance Board, see N.J.S.A. 40A:9-
    22.4, or the county prosecutor.3
    2
    We do not mean to imply that Toms River must charge tuition;
    that issue is moot and we do not address it. Nor do we address a
    situation, not present here, where a sending and receiving
    agreement, or a private-tuition arrangement, will increase racial
    segregation in the public schools. See Englewood 
    Cliffs, supra
    ,
    257 N.J. Super. at 450-51, 473-74.
    3
    For the sake of completeness, we note that, if petitioners prove
    their underlying claims in the trial court, but some aspect of the
    8                                 A-2768-12T3
    Petitioners' remaining arguments are without sufficient merit
    to warrant discussion, beyond the following brief comments.                     See
    R. 2:11-3(e)(1)(E).
    The parties engaged in discovery for over a year.                    We find
    no abuse of discretion on the part of the ALJ or the Commissioner
    in not delaying the decisions here to permit more discovery.                    See
    Pomerantz Paper Corp. v. New Cmty. Corp., 
    207 N.J. 344
    , 371 (2011).
    Further,    additional     discovery        would    not    have   affected     the
    jurisdictional decision or the mootness issue.
    Contrary to petitioners' arguments, the Commissioner did not
    implicitly or explicitly approve either a de-regionalization plan
    or the withdrawal of Seaside Park from the Central Regional school
    district.     The fact that a handful of parents in a tiny school
    district chose to send their children to a school in another
    district, pursuant to N.J.S.A. 18A:38-3, did not constitute de-
    regionalization     or    withdrawal        from    the    district.      As    the
    Commissioner    noted,    given   the   few        students   involved    and   the
    termination    of   the   "free   tuition"         arrangement,    he   would   not
    "exercise the extraordinary remedy of injunction to preclude Toms
    relief they seek concerns a remedy that is within the
    Commissioner's exclusive jurisdiction to provide, the court could
    refer that discrete issue to the Commissioner under the doctrine
    of primary jurisdiction. See 
    Archway, supra
    , 352 N.J. Super. at
    425.
    9                                 A-2768-12T3
    River   from   allowing   individual   Seaside   Park   students   from
    attending its schools on a tuition-payment basis."
    As previously addressed above, to the extent petitioners
    contend that an unlawful scheme is being used to raise the tuition
    money, that claim belongs in a forum other than the Department of
    Education.
    Affirmed.
    10                            A-2768-12T3