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Thursday, June 21, 2012

INVESTORS SAVINGS BANK VS. KEYBANK NATIONAL ASSOCIATION, ET AL. A-0404-10T2


INVESTORS SAVINGS BANK VS. KEYBANK NATIONAL 
ASSOCIATION, ET AL.  A-0404-10T2

 Under the doctrine of equitable subrogation, a refinancing
mortgagee is ordinarily entitled to the same priority as the
original mortgagee even though it negligently failed to discover
the lien of an intervening judgment creditor before closing. 03-12-12

IN RE A PLAN FOR THE ABOLITION OF THE COUNCIL ON AFFORDABLE HOUSING AND PROVIDING FOR THE TRANSFER OF THE FUNCTIONS, POWERS, AND DUTIES OF THE COUNCIL ON AFFORDABLE HOUSING TO THE DEPARTMENT OF COMMUNITY AFFAIRS, REORGANIZATION PLAN 1-2011 A-6301-10T


IN RE A PLAN FOR THE ABOLITION OF THE COUNCIL ON
AFFORDABLE HOUSING AND PROVIDING FOR THE TRANSFER OF
THE FUNCTIONS, POWERS, AND DUTIES OF THE COUNCIL ON
AFFORDABLE HOUSING TO THE DEPARTMENT OF COMMUNITY
AFFAIRS, REORGANIZATION PLAN 1-2011
 A-6301-10T4

 The issue raised in this appeal is whether, pursuant to the
Executive Reorganization Act of 1969, N.J.S.A. 52:14C-1 to -11
(Reorganization Act), a Governor may abolish an independent
agency created by the Legislature that is "in but not of" a
department of the Executive Branch.  As applied here, the
narrower issue is whether respondent Governor Chris Christie
may, under the terms of the Reorganization Act, "abolish" the
Council on Affordable Housing (COAH), an independent agency
created by the Fair Housing Act, N.J.S.A. 52:27D-301 to -329
(FHA), and transfer the duties, responsibilities and obligations
of that agency to the sole authority of the Commissioner of the
Department of Community Affairs (DCA).

 Strictly construing the Reorganization Act, we conclude
that it does not grant the Governor the power to abolish a
legislatively created, representative, independent authority
that is "in but not of" the Executive Branch or any department
in that branch of the government.  Applying this rule here, we
determine that the Governor exceeded his authority under the
Reorganization Act in abolishing COAH.  Accordingly, we reverse. 03-08-12

CHARLES CAMERON, ET AL. VS. ROY B. EWING A-3628-10T2


CHARLES CAMERON, ET AL. VS. ROY B. EWING
 A-3628-10T2

In this appeal, we address the novel issue whether the
stream of payments due a homeowner under a home equity
conversion mortgage, also known as a reverse mortgage, is
subject to execution and garnishment for the benefit of judgment
creditors of the homeowner.  We conclude the mortgagee's
obligation to make monthly payments to defendant, the judgment
debtor, is properly construed to be a "debt" against which
plaintiffs, the judgment creditors, may obtain an order
directing execution and garnishment under N.J.S.A. 2A:17-50 and
-63 and Rule 4:59-1(c).  We also find the reverse mortgage
payments are "rights and credits" subject to an order for
installment payments by the judgment debtor.  N.J.S.A. 2A:17-64. 
We remand for the court to determine the percentage of the
reverse mortgage payments properly subject to execution. 
N.J.S.A. 2A:17-56. 03-08-12

TOWNSHIP OF FRANKLIN VS. FRANKLIN TOWNSHIP PBA TOWNSHIP OF FRANKLIN VS. FRANKLIN TOWNSHIP PBA LOCAL 154 SUPERVISORY OFFICERS ASSOCIATION A-2313-10T1/A-2822-10T1


TOWNSHIP OF FRANKLIN VS. FRANKLIN TOWNSHIP PBA 
TOWNSHIP OF FRANKLIN VS. FRANKLIN TOWNSHIP PBA 
  LOCAL 154 SUPERVISORY OFFICERS ASSOCIATION 
  A-2313-10T1/A-2822-10T1 

We review two decisions issued by the Public Employment 
Relations Commission (PERC) regarding whether proposed patrol 
shift schedule modifications were mandatorily negotiable as 
intimately affecting employees' working conditions or were non- 
negotiable as falling within the Township's managerial 
prerogative.  

Although we agree the CNAs under review granted the 
Township managerial latitude to schedule police shifts "as 
needed[,]" we reject the expansive reading of this phrase to 
support the Township's position the shift modifications merely 
"implement[ed] a provision of the contract which had been 
extensively bargained for by the parties."  Rather, the changes 
mandated officers work more hours without concomitant 
compensation, an alteration of the core of the CNAs' provisions. 

  We distinguished the holding of our opinion in In re 
Morris County Sheriff's Office v. Morris Cnty. Policemen's 
Benev. Ass'n, Local 298, 418 N.J. Super. 64, 75-76 (App. Div. 
2011), noting a desire to achieve thrift cannot sustain the 
adoption of a policy abrogating the Township's binding 
contractual obligations to its law enforcement employees.03-08-12

GROW COMPANY, INC. VS. DILIP CHOKSHI, ET AL. A-0026-10T4



GROW COMPANY, INC. VS. DILIP CHOKSHI, ET AL.
 A-0026-10T4

In this appeal, the court reviewed the sufficiency of the
judge's findings in awarding attorney's fees.  Ascertaining a
reasonable fee was complicated because the judge had previously
determined that the contractual provision upon which the award
was based only authorized fee-shifting with regard to certain
discrete aspects of this multi-faceted suit.  To expeditiously
resolve the issue, the judge appointed an expert, who developed
a methodology in which, among other things, a percentage was
assigned to each task and then applied in light of the length of
each written document.  Although the judge recognized the
expert's approach was unusual, the judge adopted it while
further discounting the award derived by the expert based upon
the judge's feel of the case developed during the lengthy
nonjury trial.  The court -- recognizing that no precise formula
is required -- affirmed the award because the expert's
methodology was sufficiently illuminating and also subjected to
the judge's own knowledge and understanding of the case and, in
particular, the performance of prevailing counsel during the
course of the litigation. 03-07-12

HORIZON BLUE CROSS BLUE SHIELD OF NEW JERSEY VS. THE STATE OF NEW JERSEY, ET AL. A-2232-09T3


HORIZON BLUE CROSS BLUE SHIELD OF NEW JERSEY VS. THE
STATE OF NEW JERSEY, ET AL.
 A-2232-09T3

In this appeal, we conclude that the Premium Tax Cap
Statute, N.J.S.A. 54:18A-6, as amended by Assembly Bill A4401
(A4401), L. 2005, c. 128, is not unconstitutional as a denial of
due process or equal protection, a bill of attainder, or special
legislation.  By its terms, A4401 eliminated the tax cap on
premiums received by health service corporations (HSCs) when at
all relevant times, plaintiff Horizon Blue Cross Blue Shield of
New Jersey was the only HSC in New Jersey.  Among its other
claims, plaintiff charged that it was singled out for
retaliation after it refused to convert to for-profit status.  

  We determine that A4401 was rationally related to the
legislative goals of raising revenue to reduce a budget deficit
as well as to eliminate a loophole in the tax law whereby HSCs
had a lower effective tax rate than other health insurance
carriers.  We further conclude that plaintiff's claim of
retaliation is likewise without merit. 
 The Tax Court opinion is reported at 25 N.J. Tax 290 (Tax
Ct. 2009). 03-07-12

Thomas F. Fox v. Jean Millman (A-39/40-10; 066564


Thomas F. Fox v. Jean Millman (A-39/40-10; 066564)

 The equitable doctrine of laches cannot be utilized to
bar an action at law that was commenced within the
time constraints of an applicable statute of
limitations. 6-20-12