SYLLABUS
(This syllabus is not part of the opinion of the Court. It has
been prepared by the Office of the Clerk for the convenience of the
reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not
have been summarized).
In these consolidated petitions for certification, the Court considers whether a defendant
can seek statutory contribution against third-party defendants when the original plaintiff is legally
barred from proceeding directly against any of the third-party defendants.
This appeal originated from a failed business transaction dating back eighteen years. During
October 1986, plaintiff, Cherry Hill Manor Associates (CHMA) attempted to purchase a then-mostly
unbuilt condominium project from Cherry Hill Manor, Inc. (CHM). As part of its
contractual obligations, CHMA (buyer) paid CHM (seller) both a $300,000 deposit and advanced
an additional $345,000. In this transaction, CHMA was represented by Timothy Tuttle, Esq.
As counsel for CHMA, Tuttle was responsible for ensuring that plaintiffs deposit monies
and advances were secured by a purchase money mortgage on the project. For
some reason, that purchase money mortgage was neither delivered nor filed of record
and, eventually, CHM defaulted on the transaction.
Three years later, CHMA retained Robert J. Mancinelli to recover its deposit
and advances from CHM. Although Mancinelli filed suit against CHM, he did not
name as a defendant in that suit plaintiffs original lawyer, Tuttle, for his
failure to have secured the monies by a purchase money mortgage. CHM filed
a voluntary petition in bankruptcy and its debts were subsequently discharged. There being
no prospect of recovery, CHMA dismissed its complaint against CHM.
More time passed and CHMA again retained counsel, Paul Faugno, Esq., who
filed suit against Tuttle alleging malpractice, based on Tuttles failure to have secured
CHMAs deposit monies and advances with a purchase money mortgage. After some time,
and an unsuccessful summary judgment motion based on the entire controversy doctrine, Tuttle
filed a third-party complaint against Mancinelli for contribution as a joint tortfeasor. Faugno
did not seek to amend the complaint he had filed in CHMAs behalf
to allege a direct claim against Mancinelli.
Subsequently, Tuttle renewed his motion for summary judgment, relying on Circle Chevrolet Co.
v. Giordano, Halleran & Ciesla. This time, the trial court granted his motion
and dismissed the claims against him, which in turn, caused the dismissal of
the third-party complaint against Mancinelli. Based on a later Supreme Court holding in
Olds v. Donnelly (abrogating its earlier holding in Circle Chevrolet), Faugno referred the
matter to Anthony DElia, Esq., who, in turn, filed a legal malpractice claim
against Mancinelli, which was subsequently dismissed on summary judgment.
Finally, three months after the trial court entered summary judgment in favor
of Mancinelli, CHMA, through DElia, filed a malpractice action against Faugno, claiming that
Faugno had committed malpractice by failing to join Mancinelli as a direct defendant
in the action against Tuttle, particularly when Tuttle had filed a third-party complaint
in contribution against Mancinelli. Faugno filed an answer, together with a third-party complaint
against both Tuttle and Mancinelli seeking contribution and/or indemnification under the Joint Tortfeasors
Contribution Law (JTCL). Tuttle and Mancinelli moved for summary judgment, which the trial
court granted, holding that they could not be sued for contribution because neither
Tuttle nor Mancinelli was Faugnos joint tortfeasor as defined in the JTCL.
Although trial between Faugno and CHMA commenced, the matter was subsequently settled
between those parties. Thereafter, Faugno sought to revive his joint tortfeasor contribution claim
against Tuttle and Mancinelli by filing a notice of appeal, challenging the propriety
of the trial courts dismissal of his claims against Tuttle and Mancinelli. The
Appellate Division held that, as a matter of law, Faugno should be permitted
to pursue his contribution and indemnity claims under the JTCL against Tuttle and
Mancinelli. The panel, therefore, reversed the trial courts grant of summary judgment and
remanded the cause for further proceedings.
The Supreme Court granted Tuttle and Mancinellis petitions for certification.
HELD : Since both of the third-party defendants alleged acts of malpractice constituted separate
torts at different times, covering a six-year period, their separate acts of malpractice
cannot constitute joint liability under the Joint Tortfeasors Contribution Law; moreover, because both
of the third-party defendants alleged malpractice produced different damages or injuries to plaintiff,
the same injury requirement of the Law cannot be satisfied for the imposition
of contribution liability on a joint tortfeasor, and the trial court properly dismissed
the third-party complaints against those tortfeasors.
1. In order to trigger the contribution obligations of the JTCL, the statutory
definition of joint tortfeasor must be satisfied. The relevant inquiry in this case
is whether the alleged malpractice of Tuttle and Mancinelli, which preceded in time
Faugnos alleged malpractice, constitute joint liability for the same injury. (pp. 8-9)
2. The true test for joint tortfeasor contribution is joint liability and not
joint common or concurrent negligence. In order to answer whether tortfeasors are joint
under the JTCL, it must be determined whether Tuttle, Mancinelli, and Faugno are
subject to common liability to the plaintiff at the time the plaintiffs cause
of action accrued. Because each of Tuttles, Mancinellis, and Faugnos alleged malpractice constituted
separate torts at disparate times with different damages covering a six-year period, their
separate acts of malpractice cannot constitute the joint liability required for the imposition
of contribution liability under the JTCL. Not only has this conclusion been reached
in other jurisdictions addressing this issue, but also it is well-grounded in principles
of finality and repose, as well as in sound public policy. (pp. 9-13)
3. The contextual uses of the term injury contained in the JTCL support
the conclusion that the Legislature intended that the term same injury in its
definition of joint tortfeasor relate to the harm the tort victim suffered and
not to the cumulative damages the tort victim sustained as a result of
multiple disparate injuries caused by multiple tortfeasors. Viewed in this manner, Faugno cannot
satisfy the same injury requirement for the imposition of contribution liability on a
joint tortfeasor. (pp. 13-16)
4. Under the circumstances of this case, the prior tortfeasors (Tuttle and Mancinelli)
are not liable for statutory contribution to the subsequent tortfeasor (Faugno) because the
prior and subsequent tortfeasors were not jointly or severally liable to plaintiff for
the same cause of action. Furthermore, the subsequent tortfeasor (Faugno) cannot claim statutory
contribution from the prior tortfeasors inasmuch as the injury inflicted by the prior
tortfeasors is not the same injury as the one inflicted by the subsequent
tortfeasor. (pp. 16-17)
Judgment of the Appellate Division is REVERSED and the judgment of the
trial court is REINSTATED.
CHIEF JUSTICE PORITZ and JUSTICES LONG, LaVECCHIA, ZAZZALI, ALBIN, and WALLACE join in
JUSTICE RIVERA-SOTOs opinion.
SUPREME COURT OF NEW JERSEY A-90/
91 September Term 2003
CHERRY HILL MANOR ASSOCIATES,
Plaintiff,
v.
PAUL FAUGNO, ESQ., and ROGAN & FAUGNO, ESQS.,
Defendants-Third Party Plaintiffs-Respondents,
and
HARLEYSVILLE INSURANCE COMPANY OF NEW JERSEY,
Third Party Defendant,
and
TIMOTHY TUTTLE, ESQ., ROBERT J. MANCINELLI, ESQ., and CARVER & MANCINELLI, ESQS.,
Third Party Defendants- Appellants.
Argued October 28, 2004 Decided December 6, 2004
On certification to the Superior Court, Appellate Division, whose opinion is reported at
365 N.J. Super. 313 (2004).
Christopher J. Carey argued the cause for appellants Robert J. Mancinelli, Esq., and
Carver & Mancinelli, Esqs. (Graham, Curtin & Sheridan, attorneys; Mr. Carey and Patricia
A. Brennan, on the briefs).
Leon B. Piechta argued the cause for appellant Timothy Tuttle, Esq. (O'Donnell Piechta,
attorneys).
Lance J. Kalik argued the cause for respondents (Riker Danzig Scherer Hyland &
Perretti, attorneys; Mr. Kalik and Glenn A. Clark, of counsel; Mr. Kalik and
Ronald Z. Ahrens, on the briefs).
JUSTICE RIVERA-SOTO delivered the opinion of the Court.
These consolidated petitions for certification present the question whether a defendant can seek
statutory contribution against third-party defendants when the original plaintiff is legally barred from
proceeding directly against any of the third-party defendants. The trial court held that
the third-party defendants could not be considered joint tortfeasors with the defendant because
the third-party defendants were not jointly or severally liable in tort for the
same injury to plaintiff as was defendant. The Appellate Division disagreed, reversed the
grant of summary judgment in favor of the third-party defendants, and remanded the
cause for trial. Cherry Hill Manor Assocs. v. Faugno,
365 N.J. Super. 313
(App. Div. 2004).
We hold that, under the circumstances present here, the third-party defendants were no
t
jointly liable for the same injury to plaintiff as was defendant. We, therefore,
reverse the judgment of the Appellate Division and reinstate the judgment of the
trial court granting summary judgment in favor of the third-party defendants and against
defendant.
[Alexander v. Callanen,
429 N.Y.S.2d 141, 142 (N.Y. Sup. Ct. 1979).]
Also in New York, where a lawyer failed to file timely a personal
injury action against a truck driver and his employer, a claim for indemnity
against the truck driver and his employer was rejected because
[a] claim of indemnity is not sufficiently alleged solely on the basis that
the claims arose out of the same set of facts. Third-party plaintiff must
also allege facts which show that third-party defendants liability rises from the liability
of third-party plaintiff to plaintiff. Here, the wrong committed by third-party defendants is
separate, distinct and not related in any way to the wrong committed by
third-party plaintiff and, therefore, the third-party complaint was properly dismissed.
[Cleveland v. Farber,
361 N.Y.S.2d 99, 100 (N.Y. App. Div. 1974).]
See also Schladensky v. Ellis,
275 A.2d 663 (Pa. 1971).
This conclusion is also well-grounded in principles of finality and repose, as well
as in sound public policy. When, as here, a party has secured a
judicial adjudication in that partys favor, societys interest in the finality of judgments
and the repose accorded to them militates strongly in favor of barring a
subsequent action for contribution. We do not believe that the Legislature, in enacting
the JTCL, intended to breathe new life into otherwise barred actions.
[Burns v. Belafsky,
166 N.J. 466, 473 (2001) (citations omitted).]
See also N.J.S.A. 1:1-1 (In the construction of the laws and statutes of
this state, both civil and criminal, words and phrases shall be read and
construed with their context, and shall, unless inconsistent with the manifest intent of
the legislature or unless another or different meaning is expressly indicated, be given
their generally accepted meaning, according to the approved usage of the language.).
Section 1 of the JTCL informs us that joint tortfeasors means two or
more persons jointly or severally liable in tort for the same injury to
person or property, . . . . N.J.S.A. 2A:53A-1. The operative provisions of
the JTCL limit recovery to those instances when injury or damage is suffered
by any person as a result of the wrongful act, neglect or default
of joint tortfeasors and the person so suffering injury or damage recovers a
money judgment or judgments for such injury or damage . . . .
N.J.S.A. 2A:53A-3. The contextual uses of the term injury leads us to the
conclusion that the Legislature intended that the term same injury in its definition
of joint tortfeasor relate to the harm the tort victim suffered and not
to the cumulative damages the tort victim sustained as a result of multiple
disparate injuries caused by multiple tortfeasors. Viewed in this manner, Faugno cannot satisfy
the same injury requirement for the imposition of contribution liability on a joint
tortfeasor.
The harm visited on plaintiff by Tuttle, Mancinelli and Faugno, although sharing a
common core, was different in each instance. Tuttle caused harm to plaintiff by
reason of Tuttles failure to deliver and file a purchase money mortgage securing
plaintiffs deposit monies and advances; Mancinelli caused harm to plaintiff by failing to
name Tuttle in the suit against the Seller; and Faugno caused harm to
plaintiff by failing to include Mancinelli in the suit against Tuttle. In those
fundamental respects, the facts here differ from those present in LaBracio Family Pship
v. 1239 Roosevelt Ave., Inc.,
340 N.J. Super. 155 (App. Div. 2001), relied
on by both Faugno and the Appellate Division in seeking to extend joint
tortfeasor contribution liability to Tuttle and Mancinelli. Unlike Faugno, who seeks contribution here
from those whose allegedly tortious acts occurred before Faugnos now admitted negligence, the
two attorney/claimants in LaBracio sought contribution from a successor attorney arising from the
failure of all three lawyers in the same transaction to insure that a
deed and mortgage were filed timely. Id. at 158-59. Under those circumstances, joint
tortfeasor contribution liability was rightly apportioned among all three attorneys who shared joint
liability (each for failing to file the deed and mortgage in a timely
manner as part of the same real estate transaction) and who all caused
the same injury (the untimely filing of the deed and mortgage that resulted
in liens with priority filing listed against the realty). LaBracio, supra, is factually
distinguishable and therefore not relevant to the inquiry here.
SUPREME COURT OF NEW JERSEY
NO. A-90/91 SEPTEMBER TERM 2003
ON CERTIFICATION TO Appellate Division, Superior Court
CHERRY HILL MANOR ASSOCIATES,
Plaintiff,
v.
PAUL FAUGNO, ESQ., and ROGAN
& FAUGNO, ESQS.,
Defendants-Third Party
Plaintiffs-Respondents,
and
HARLEYSVILLE INSURANCE
COMPANY OF NEW JERSEY,
Third Party Defendant,
and
TIMOTHY TUTTLE, ESQ., ROBERT
J. MANCINELLI, ESQ., and
CARVER & MANCINELLI, ESQS.,
Third Party Defendants-
Appellants.
DECIDED December 6, 2004
Chief Justice Poritz PRESIDING
OPINION BY Justice Rivera-Soto
CONCURRING/DISSENTING OPINIONS BY
DISSENTING OPINION BY
CHECKLIST