Ejk Realty LLC v. Akr Contracting Inc. ( 2024 )


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  •                                 NOT FOR PUBLICATION WITHOUT THE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-1723-22
    EJK REALTY LLC, a New Jersey
    Limited Liability Company, and
    EDWARD KLOSS, JR.,
    Plaintiffs-Appellants,
    v.
    AKR CONTRACTING, INC.
    and ANDREW RUSIN,
    Defendants/Third-Party
    Plaintiffs-Respondents,
    v.
    RIGG ASSOCIATES, P.A.,
    BRUCE RIGG, and
    DYNAMIC ENGINEERING
    CONSULTANTS, P.C.,
    Third-Party Defendants.
    __________________________
    Argued October 29, 2024 – Decided November 14, 2024
    Before Judges Sumners and Perez Friscia.
    On appeal from the Superior Court of New Jersey,
    Law Division, Morris County, Docket No. L-0518-17.
    Allan Maitlin and Peter Greene argued the cause for
    appellants (Sachs Maitlin & Greene, attorneys; Allan
    Maitlin and Peter Greene, on the briefs).
    Joshua A. Zielinski argued the cause for respondents
    (O'Toole Scrivo, LLC, attorneys; Peter V. Koenig and
    Steven A. Weiner, of counsel and on the brief).
    PER CURIAM
    Plaintiffs EJK Realty LLC and Edward Kloss, Jr. appeal from the Law
    Division's December 7, 2022 order granting defendants AKR Contracting, Inc.
    and Andrew Rusin summary judgment dismissing plaintiffs' complaint with
    prejudice, and January 20, 2023 order denying reconsideration.             After
    reviewing the record in light of prevailing legal principles, we affirm in part,
    reverse in part, and remand.
    I.
    We view the following facts established in the summary judgment record
    in the light most favorable to plaintiffs, the non-moving parties. See Crisitello
    v. St. Theresa Sch., 
    255 N.J. 200
    , 218 (2023). In April 2005, Kloss purchased
    a property located in Morris Plains on Route 10 for $2,350,000. He transferred
    the property to EJK, a company he owned. EJK retained Dynamic Engineering
    Consultants (Dynamic) to prepare a site plan, including a grading plan, for
    A-1723-22
    2
    submission to the Morris Plains Board of Adjustment (Board) for development
    approvals. The property included a single vacant building, housing the Longo
    Electro-Mechanical Service Center (Longo building) and a developable
    wooded area.
    The application proposed that the 20,143 square foot Longo building be
    converted to accommodate a single commercial tenant furniture store and the
    construction of a new 15,200 square foot multi-tenant strip mall. Notably, the
    grading plan for the Longo building indicated a 443.15 feet first-floor
    elevation. Because the property was in an office building zone, permitting
    hotel and office use, EJK applied for use and bulk variances. On April 23,
    2007, the Board approved the plan by resolution and granted a use variance for
    a retail store.
    EJK hired AKR to perform site work. AKR's responsibilities included:
    "site clearing," "earth work," "storm drainage," "water [and] sanita[tion],"
    "retaining wall" construction, "site paving [and] signage," and "landscaping."
    AKR was responsible for retaining a surveyor to stake the property. Kloss
    provided Rusin, AKR's owner, the site plan for an estimate.
    In January 2008, when examining the approved plan, Kloss realized the
    Longo building site plan did not include EJK's intended thirty-inch exterior
    A-1723-22
    3
    grade increase that was necessary to meet the eastern side interior floor level.
    The eastern corner of the Longo building had been constructed to
    accommodate tractor-trailer deliveries, had an access area cut out for
    unloading into the building, and had an interior floor elevation thirty inches
    above the exterior grade. The approved grading plan incorrectly listed the
    first-floor elevation of the Longo building as 443.15 feet instead of 445.77
    feet. Kloss notified Dynamic of the error and met with Rusin and Dynamic. It
    was decided Dynamic would revise the plans, but AKR would proceed with
    "clearance and demolition of the site."     AKR agreed to complete the site
    development with the Board approved revised plans. On March 14, Dynamic
    revised its grading plan to correct the first-floor elevation to 445.77 feet.
    Thereafter, Rusin was purportedly provided copies of the revised plans.
    Rusin had provided Rigg Associates, P.A. with a copy of the initial 2005
    grading plan for a "professional surveying work" estimate. Rigg Associates
    submitted a contract proposal dated July 25, 2008, and AKR selected the
    proposal.
    On October 7, Dynamic emailed EJK and AKR a copy of the revised site
    plan. On November 3, Dynamic provided a copy of the originally approved
    grading plan and the revised grading plan to the Morris Plains's borough
    A-1723-22
    4
    engineer, noting "the main finished floor of the existing building [was]
    approximately [three feet] higher than that which was originally identified."
    Following EJK's submission of an amended application, on January 26, 2009,
    the Board approved the revised plan.       The Board's February 23 resolution
    memorialized its approval and noted "an inaccuracy in the floor elevation of
    the [Longo] building was discovered[.]            [S]pecifically, an area of
    approximately [twenty] feet by [forty] feet on the northerly side of the building
    was found to be [three] feet below the remainder of the finished floor," which
    necessitated "[EJK's] application to alter the site grading and increase the
    height of the retaining wall." EJK maintains it delivered the approved plans to
    AKR for completion of the site development.
    On March 16, Rusin authorized Rigg Associates's surveying and staking
    work.     Approximately three days later, Rusin spoke with Bruce Rigg, a
    professional engineer from Rigg Associates, who expressed the need for
    Dynamic's current digital grading plan files. Rusin directed Rigg to contact
    Dynamic and Kloss. Rigg's March 19 call log indicated he left a message with
    Dynamic requesting the digital file.
    On March 23, a Rigg Associates's surveyor advised Dynamic he would
    be "on the job site" and requested "the [drawing] data." Rigg Associates's
    A-1723-22
    5
    staking cut sheet indicated the "[b]uilding elevation" was based on a grading
    plan "dated 4/11/05" and that the "[c]ontractor must notify this office . . . if the
    above referenced plans ha[d] been revised."         The cut sheet delineated the
    Longo building had a first-floor elevation of 443.15 feet. The same day, Rigg
    Associates "staked out the building" using the initial April 11, 2005 plan and
    not the February 2009 revised plan, which was Board approved a month
    earlier. Because Rigg Associates staked the property according to the initial
    plan, AKR graded the eastern side of the Longo building thirty inches below
    the interior floor and not as provided in the new plans.
    A March 24, 2010 memorandum AKR created indicated an AKR
    employee telephonically inquired "why [Rigg Associates's] cut sheets d[id] not
    match his plans," which were "revised [up] to [March 11, 2009.]" A Rigg
    Associates employee explained Rigg Associates used the initial April 2005
    plans as it had "only recently received" the revised plans to perform
    "additional work on-site."
    In August 2010, Morris Plains's engineer "became aware of [the]
    elevation issue relating to the construction of the new 15,000 [square foot]
    building in relation to the existing 20,000 [square foot] building."            The
    engineer "advised the discrepancies were significant enough that he believe[d]
    A-1723-22
    6
    it require[d] an amended application . . . to the Board; he did not feel
    comfortable approving this as a field change nor did he believe that would be
    an appropriate action." To remedy the grading error, EJK was required to:
    engage engineering professionals to create new plans, retain counsel to file and
    present the revised application, increase the retaining wall height on the
    eastern boundary of the strip mall, and delay the tenants' property possession.
    About a month later, the Board approved EJK's required revised site plan.
    After approximately twelve months of vacancy, EJK sold the building to a
    single occupant, a motorcycle company.
    On March 3, 2017, plaintiffs filed a complaint alleging:       breach of
    contract against AKR; negligence against AKR; respondeat superior against
    AKR for the actions of its employees and agents; and negligence against
    Rusin.1 On June 26, defendants answered. 2 On October 5, following a case
    management conference, the trial court issued an order requiring the
    completion of discovery by September 19, 2018. On June 29, 2018, the court
    extended the discovery end date to January 31, 2019. On April 10, 2019,
    1
    Plaintiffs had filed a prior complaint that the court dismissed.
    2
    In 2018, defendants filed third-party complaints against third-party
    defendants Rigg Associates, Rigg, and Dynamic, which the court dismissed
    with prejudice on July 20 and August 8. The third-party defendants are not
    parties to this appeal.
    A-1723-22
    7
    National Consulting Company, Inc. provided plaintiffs with an appraisal report
    alleging a diminution in property value and rental income losses based on a
    hypothetical, unapproved increased property use.
    On December 9, the court extended the discovery end date to March 20,
    2020.      On May 22, after the close of discovery, defendants moved for
    summary judgment. On September 29, following oral argument, the court
    issued an order granting partial summary judgment in favor of defendants. 3
    The court dismissed plaintiffs' respondeat superior claim, granted partial
    summary judgment barring speculative damages related to any unapproved
    property use, and denied the other requested relief.
    On July 22, 2022, defendants again moved for summary judgment. On
    December 7, the court issued an order with an accompanying statement of
    reasons granting summary judgment and dismissing plaintiffs' remaining
    claims with prejudice. The court found plaintiffs failed to proffer an expert,
    stating:
    The [c]ourt finds that the grading discrepanc[y] issues
    cannot adequately be determined without the
    testimony of an expert witness. . . .          Without
    competent expert witnesses, a factfinder cannot
    determine whether damages arose, how great the
    damages might be, let alone whether the alleged
    3
    The order was incorrectly dated as June 29, 2020.
    A-1723-22
    8
    damages arose from negligence as well as an alleged
    breach of contract. In addition, [p]laintiffs cannot
    assert that Kloss is an expert as there has been no
    expert designation or report provided to [d]efendants.
    The court further found "[p]laintiffs ha[d] not established any negligent acts
    that differ[ed] from the acts related to the dismissed breach of contract claim."
    The court also dismissed plaintiffs' individual claim against Rusin, finding no
    "evidence to support the piercing of the corporate veil," as plaintiffs failed to
    show "Rusin acted outside of the scope of his employment with AKR." On
    December 27, plaintiffs moved for reconsideration seeking to reopen discovery
    in the interest of justice to permit service of an expert report, which the court
    denied.
    On appeal, plaintiffs raise the following points for our consideration:
    POINT I
    SUMMARY JUDGMENT AGAINST PLAINTIFF[S]
    MUST    BE  REVERSED,     BECAUSE    THE
    REPEATED FAILURE OF AKR . . . TO SUPPLY
    ITS SURVEYOR WITH AN ACCURATE REVISED
    GRADING PLAN UPON WHICH TO STAKE OUT
    THE CONSTRUCTION SITE CONSTITUTED
    "COMMON     KNOWLEDGE        NEGLIGENCE"
    PROVABLE EVEN WITHOUT A DESIGNATED
    EXPERT WITNESS ON LIABILITY.
    POINT II
    PLAINTIFFS  CAN   PRESENT  SUFFICIENT
    CREDIBLE EVIDENCE ON PROXIMATE CAUSE
    A-1723-22
    9
    AND DAMAGES TO REACH A JURY THROUGH
    DOCUMENTARY        EVIDENCE   AND   THE
    TESTIMONY OF . . . KLOSS AND OTHER REAL
    ESTATE DEVELOPMENT PROFESSIONALS, AND
    THEREFORE SUMMARY JUDGMENT AGAINST
    PLAINTIFF[S] MUST BE REVERSED.
    POINT III
    THE COURT'S OPINIONS BELOW, GRANTING
    SUMMARY     JUDGMENT   AND    DENYING
    RECONSIDERATION,  REST   ON   SEVERAL
    INCORRECT STATEMENTS OF LAW OR FACT.
    A.  THE COURT BELOW MISSTATED
    THE RULING OF AN EARLIER COURT
    REGARDING   THE NEED  FOR  EXPERT
    TESTIMONY.
    B.  THE GRADING ERROR AT THE CORE
    OF THIS CASE AFFECTED THE ENTIRE
    PROPERTY, NOT JUST THE LONGO BUILDING,
    AND MULTIPLE ELEMENTS OF DAMAGE FLOW
    DIRECTLY FROM THAT GRADING ERROR.
    POINT IV
    THE COURT BELOW WRONGFULLY REJECTED
    SEVERAL OTHER ARGUMENTS WHICH WOULD
    HAVE ALLOWED [KLOSS] TO TESTIFY AS AN
    EXPERT OR LAY EXPERT.
    POINT V
    THE COURT BELOW ERRED IN DENYING
    PLAINTIFF[S']        MOTION         FOR
    RECONSIDERATION IN FAILING TO PERMIT
    PLAINTIFF[S] TO SUBMIT A WRITTEN REPORT
    A-1723-22
    10
    BY AN EXPERT WHILE DEFENDANT DID NOT
    OBJECT TO THE DISCLOSURE STATEMENTS.
    II.
    Our review of a trial court's summary judgment decision is de novo.
    DeSimone v. Springpoint Senior Living, Inc., 
    256 N.J. 172
    , 180 (2024); see
    also Rule 4:46-2(c). "The court's function is not 'to weigh the evidence and
    determine the truth of the matter but to determine whether there is a genuine
    issue for trial.'" Rios v. Meda Pharm., Inc., 
    247 N.J. 1
    , 13 (2021) (quoting
    Brill v. Guardian Life Ins. Co. of Am., 
    142 N.J. 520
    , 540 (1995)). To rule on
    summary judgment, courts must determine "whether the evidence presents a
    sufficient disagreement to require submission to a jury or whether it is so
    one-sided that one party must prevail as a matter of law."       DepoLink Ct.
    Reporting & Litig. Support Servs. v. Rochman, 
    430 N.J. Super. 325
    , 333 (App.
    Div. 2013) (quoting Liberty Surplus Ins. Corp. v. Nowell Amoroso, P.A., 
    189 N.J. 436
    , 445-46 (2007)) (internal quotation marks omitted).
    "A dispute of material fact is 'genuine only if, considering the burden of
    persuasion at trial, the evidence submitted by the parties on the motion,
    together with all legitimate inferences therefrom favoring the non-moving
    party, would require submission of the issue to the trier of fact.'" Gayles by
    Gayles v. Sky Zone Trampoline Park, 
    468 N.J. Super. 17
    , 22 (App. Div. 2021)
    A-1723-22
    11
    (quoting Grande v. Saint Clare's Health Sys., 
    230 N.J. 1
    , 24 (2017)). "Rule
    4:46-2(c)'s 'genuine issue [of] material fact' standard mandates that the
    opposing party do more than 'point[] to any fact in dispute' in order to defeat
    summary judgment." Globe Motor Co. v. Igdalev, 
    225 N.J. 469
    , 479 (2016)
    (alterations in original) (first quoting R. 4:46-2(c); and then quoting Brill, 
    142 N.J. at 529
    ). "Summary judgment should be granted 'if the discovery and any
    affidavits show that there is no genuine issue as to any material fact challenged
    and that the moving party is entitled to a judgment or order as a matter of
    law.'" DeSimone, 256 N.J. at 180-81 (quoting Perez v. Professionally Green,
    LLC, 
    215 N.J. 388
    , 405 (2013)) (internal quotation marks omitted).
    A trial court's decision to grant or deny a motion for reconsideration is
    reviewed for abuse of discretion. Branch v. Cream-O-Land Dairy, 
    244 N.J. 567
    , 582 (2021).    A trial court should grant reconsideration when "1) the
    [c]ourt has expressed its decision based upon a palpably incorrect or irrational
    basis, or 2) it is obvious that the [c]ourt either did not consider, or failed to
    appreciate the significance of probative, competent evidence."        Castano v.
    Augustine, 
    475 N.J. Super. 71
    , 78 (App. Div. 2023) (alterations in original)
    (quoting Triffin v. SHS Grp., LLC, 
    466 N.J. Super. 460
    , 466 (App. Div.
    2021)).
    A-1723-22
    12
    "[W]hen deciding whether expert testimony is necessary, a court
    properly considers 'whether the matter to be dealt with is so esoteric that jurors
    of common judgment and experience cannot form a valid judgment as to
    whether the conduct of the [defendant] was reasonable.'" Davis v. Brickman
    Landscaping, Ltd., 
    219 N.J. 395
    , 407 (2014) (second alteration in original)
    (quoting Butler v. ACME Mkts., Inc., 
    89 N.J. 270
    , 283 (1982)). In cases
    where "the factfinder would not be expected to have sufficient knowledge or
    experience," expert testimony is needed because the jury "would have to
    speculate without the aid of expert testimony." Torres v. Schripps, Inc., 
    342 N.J. Super. 419
    , 430 (App. Div. 2001).
    In establishing negligence, a plaintiff is generally "not required to
    establish the applicable standard of care." Davis, 
    219 N.J. at 406
    . A jury
    provides the applicable standard of conduct "determin[ing] what precautions a
    reasonably prudent [person] in the position of the defendant would have
    taken." 
    Id. at 407
     (quoting Sanzari v. Rosenfeld, 
    34 N.J. 128
    , 134 (1961)). In
    such cases, it is recognized the facts are such that "a layperson's common
    knowledge is sufficient to permit a jury to find that the duty of care has been
    breached without the aid of an expert's opinion." 
    Ibid.
     (quoting Giantonnio v.
    Taccard, 
    291 N.J. Super. 31
    , 43 (App. Div. 1996)).
    A-1723-22
    13
    III.
    We first address plaintiffs' contention that the court erroneously granted
    summary judgment because AKR's liability for failing to provide Rigg
    Associates the updated grading plan for staking is within the common
    knowledge of a fact-finder.       Plaintiffs argue no expert is required to
    demonstrate "a contractor who hires a surveyor to set stakes based on the
    engineer's grading plan[] must provide the surveyor with the most current
    revision of the grading plan available." We agree.
    Kloss certified he met with Rusin and Dynamic to address the correct
    site grading after discovering the Longo building elevation error in the
    originally-approved plan. Dynamic revised the grading plan to correct the
    first-floor elevation and allegedly sent the plans to AKR. The court found "the
    grading discrepanc[y] issues cannot adequately be determined without the
    testimony of an expert witness." We part ways with the court's determination
    regarding the necessity for an expert, as a fact-finder need not evaluate the
    intricacies of property grading and the surveying methods to determine if AKR
    breached its obligation. The issue is whether AKR failed to provide Rigg
    Associates the revised plan for staking. Stated another way, the factual dispute
    is whether AKR breached its obligation because it did not provide Rigg
    A-1723-22
    14
    Associates the alleged timely-received approved revised plans, which resulted
    in staking based on an earlier plan and the elevation error.
    We conclude an expert is not required to opine on whether a hired
    contractor should provide its surveyor a received, revised grading plan before
    staking. An expert's explanation on property staking is unnecessary for a jury
    to consider whether the use of an updated grading plan, which corrected a
    thirty-inch elevation disparity, as opposed to the use of the initial plan, was
    appropriate to ensure no grading error. A fact-finder is capable of determining
    without the aid of an expert whether AKR should have provided Rigg
    Associates with the revised approved plan if it was timely received.       The
    alleged failure to provide the updated plans to Rigg Associates is not outside
    of a juror's "common judgment and experience" in deciding whether AKR's
    conduct "was reasonable" or a breach of its obligation. See Maison v. N.J.
    Transit Corp., 
    460 N.J. Super. 222
    , 232 (App. Div. 2019) (quoting Butler, 
    89 N.J. at 283
    ).
    Plaintiffs further argue the court erred in requiring expert testimony on
    the issues of proximate cause and damages.          The court found, "Without
    competent expert witnesses, a fact[-]finder cannot determine whether damages
    arose . . . [and] how great the damages might be, let alone whether the alleged
    A-1723-22
    15
    damages arose from negligence as well as an alleged breach of contract."
    Plaintiffs assert damages caused from the grading error included the: loss of
    long-term rental income; cost of topsoil removal; diminution of the building's
    sale value; cost of increasing the height of the retaining wall; engineering costs
    for revised plans; and the Board application costs for seeking reapproval. It is
    undisputed damages proximately caused from AKR's alleged breach of
    contract must be demonstrated by competent evidence. Further, it is plaintiffs'
    burden to establish the causal relationship and quantifiable proofs of loss.
    A party seeking damages is "obligated to prove, by a preponderance of
    the evidence, that the losses it s[eeks] to recover [a]re 'a reasonably certain
    consequence of the breach.'"       Totaro, Duffy, Cannova & Co. v. Lane,
    Middleton & Co., 
    191 N.J. 1
    , 15 (2007) (quoting Donovan v. Bachstadt, 
    91 N.J. 434
    , 445 (1982)). "Damages for defective construction, whether those
    damages are the result of a breach of contract or negligence of the contractor,
    are often determined by using the reasonable cost of remedying the defects
    unless that cost is clearly disproportionate to the property's probable loss of
    value." St. Louis, L.L.C. v. Final Touch Glass & Mirror, Inc., 
    386 N.J. Super. 177
    , 188 (App. Div. 2006). The non-breaching party seeking damages has the
    burden "to demonstrate the appropriate method for quantifying that loss."
    A-1723-22
    16
    Totaro, 
    191 N.J. at 15
    . A trial court may not rely on "wholly speculative"
    information to determine damages. See Pomerantz Paper Corp. v. New Cmty.
    Corp., 
    207 N.J. 344
    , 375 (2011).
    The court correctly found plaintiffs' alleged damages for rental losses
    and a diminution in sale value based on potential future property use,
    proximately caused by the staking elevation error, required expert testimony.
    It is uncontroverted that plaintiffs' valuation expert's report was a net opinion,
    as the expert assumed the single-tenant Longo building would have been
    approved for an expanded commercial use for several tenants. See Townsend
    v. Pierre, 
    221 N.J. 36
    , 54 (2015) (requiring experts to "'give the why and
    wherefore' that supports the opinion, 'rather than a mere conclusion'" (quoting
    Borough of Saddle River v. 66 E. Allendale, LLC, 
    216 N.J. 115
    , 144 (2013)));
    see also N.J.S.A. 40:55D-10.       We note plaintiffs concede the "division of
    space into six stores may have required approval for additional parking spaces
    and would therefore be somewhat speculative." Plaintiffs' alleged damages
    stemming from the possibility of a future land use approval are certainly
    speculative.   Because plaintiffs' alleged elevation error damages for the
    diminution in sale value and future lost rents fall outside the knowledge of the
    A-1723-22
    17
    ken of the average fact-finder, we agree they are barred without a qualified
    expert's opinion.
    We next address plaintiffs' argument that although plaintiffs never
    notified defendants that Kloss was being offered as an expert, the court should
    have permitted his late identification or reopened discovery to permit an
    amendment.     Kloss posits his experience qualifies him as an expert.        He
    certified that the Board's 2009 approval meant, but for the grading error, the
    Longo building could have been approved for multiple tenants, resulting in
    "[t]he rental loss [of] $600,000" and a "$3 [m]illion" diminution in building
    sale value.   Relevantly, plaintiffs' discovery witness disclosure failed to
    identify Kloss as an expert. Therefore, because Kloss was not offered as an
    expert during discovery, he cannot serve as an expert now.        See R. 4:10-
    2(d)(1).
    We also reject plaintiffs' argument that the court should reopen
    discovery to permit submission of a new expert report. The court's June 29,
    2018 case management order required plaintiffs to serve defendants with all
    expert reports by September 30, affording plaintiffs ample time to identify an
    expert and serve an expert report. We discern no error in the court's refusal to
    reopen discovery.
    A-1723-22
    18
    We, however, conclude plaintiffs may present evidence regarding
    quantifiable damages causally related to defendants' alleged breach. Plaintiffs
    may introduce causally related damages regarding the: additional retaining
    wall costs; expenses to revise the site plan; costs of obtaining the Board's
    approval of the revised plan; additional carrying costs and lost rent during the
    halted construction; and excavation expenses. These expenses do not require
    expert testimony but must be proven ascertainable losses.          For example,
    plaintiffs can produce evidence regarding the costs associated with EJK's
    requirement to submit a revised site plan. We note the Board's February 2009
    resolution stated the grading error necessitated "[EJK's] application to . . .
    increase the height of the retaining wall."            Plaintiffs can introduce
    authenticated invoices provided in discovery. Again, plaintiffs may only seek
    ascertainable, non-speculative damages. As the full record was not presented
    on appeal regarding discovery damages, we leave addressing any evidentiary
    issues to the sound discretion of the trial court and express no opinion as to the
    ultimate outcome.
    Further, we concur with the court's summary judgment dismissal of
    plaintiffs' negligence claims, finding "[p]laintiffs ha[d] not provided any
    evidence to support that there [we]re damages arising in negligence separate
    A-1723-22
    19
    and apart from the damages related to the alleged breach of contract claim."
    Generally, "the economic loss doctrine prohibits the recovery in a tort action
    of economic losses arising out of a breach of contract." Sun Chem. Corp. v.
    Fike Corp., 
    243 N.J. 319
    , 328 n.2 (2020). "[A] tort remedy does not arise from
    a contractual relationship unless the breaching party owes an independent duty
    imposed by law." Saltiel v. GSI Consultants, Inc., 
    170 N.J. 297
    , 316 (2002).
    On the record provided, "we are unable to discern any duty owed to . . .
    plaintiff[s] that is independent of the duties that arose under the contract."
    
    Ibid.
     Thus, we glean no reason to disturb the court's dismissal of plaintiffs'
    negligence claims.
    Finally, we note on appeal, plaintiffs do not address the court's grant of
    summary judgment on their piercing of the corporate veil claim against Rusin.
    Issues not briefed on appeal are deemed waived. Pressler & Verniero, Current
    N.J. Court Rules, cmt. 5 on R. 2:6-2 (2024); In re Gloria T. Mann Revocable
    Tr., 
    468 N.J. Super. 160
    , 180 (App. Div. 2021).           Nonetheless, having
    considered the issue against the record, we discern no disputed material issues
    of fact to support piercing the corporate veil. "We abide by 'the fundamental
    propositions that a corporation is a separate entity from its shareholders, and
    that a primary reason for incorporation is the insulation of shareholders from
    A-1723-22
    20
    the liabilities of the corporate enterprise.'" Richard A. Pulaski Constr. Co. v.
    Air Frame Hangars, Inc., 
    195 N.J. 457
    , 472 (2008) (quoting Dep't of Env't
    Prot. v. Ventron Corp., 
    94 N.J. 473
    , 500 (1983)). Generally, courts will not
    pierce the corporate veil absent extraordinary circumstances.      See Ventron
    Corp., 
    94 N.J. at 500
    . Courts will only pierce the veil "in cases of fraud,
    injustice, or the like." Richard A. Pulaski Constr. Co., 
    195 N.J. at 472
    . "The
    purpose of the doctrine of piercing the corporate veil is to prevent an
    independent corporation from being used to defeat the ends of justice, to
    perpetrate fraud, to accomplish a crime, or otherwise to evade the law." 
    Ibid.
    (quoting Ventron Corp., 
    94 N.J. at 500
    ). Plaintiffs failed to meet their prima
    facie burden of demonstrating facts to warrant piercing the corporate veil and
    impose liability against Rusin.
    To the extent not addressed, plaintiffs' remaining contentions lack
    sufficient merit to warrant discussion in a written opinion. R. 2:11-3(e)(1)(E).
    Affirmed in part, reversed in part, and remanded. We do not retain
    jurisdiction.
    A-1723-22
    21
    

Document Info

Docket Number: A-1723-22

Filed Date: 11/14/2024

Precedential Status: Non-Precedential

Modified Date: 11/14/2024