CHERRY HILL MANOR ASSOCIATES,
Plaintiff,
v.
PAUL FAUGNO and ROGAN & FAUGNO,
Defendants-Appellants/
Third-Party Plaintiffs,
v.
HARLEYSVILLE INSURANCE COMPANY OF
NEW JERSEY, TIMOTHY TUTTLE, ROBERT J.
MANCINELLI AND CARVER & MANCINELLI,
Third-Party Defendants/
Respondents.
Argued October 15, 2003 Decided January 7, 2004
Before Judges Alley, Parker and Coleman.
On appeal from Superior Court of New Jersey,
Law Division, Bergen County, Docket Number
L-2830-99.
Lance J. Kalik argued the cause for appellants
Paul Faugno and Rogan & Faugno (Riker, Danzig,
Scherer, Hyland & Perretti, attorneys; Glenn A.
Clark, of counsel; Mr. Kalik, Mr. Clark and
Ronald Z. Ahrens, on the brief).
Leon Piechta argued the cause for respondent
Timothy Tuttle (John C. Kennedy, of counsel and
on the brief).
Christopher J. Carey argued the cause for
respondents Robert Mancinelli and Carver &
Mancinelli (Mr. Carey, of counsel; Mr. Carey
and Patricia A. Brennan, on the brief).
Cherry Hill Manor did not file a brief.
The opinion of the court was delivered by
PARKER, J.A.D.
Defendants/third-party plaintiffs Paul Faugno, Esq., and his law firm Rogan & Faugno (Faugno)
appeal from a grant of summary judgment dismissing their third-party complaint on the
ground that the third-party defendants could not be held liable as joint tortfeasors.
We reverse and remand.
The events giving rise to this legal malpractice action began in October 1986,
when plaintiff contracted to purchase a sixteen-unit condominium complex from Cherry Hill Manor.
Plaintiff retained third-party defendant Timothy Tuttle, Esq., to represent it in the deal.
Plaintiff paid a $300,000 deposit to Manor, for which it was to receive
a purchase money mortgage. The mortgage, however, was never delivered and Manor defaulted.
In 1989, plaintiff retained third-party defendant Robert Mancinelli, Esq., to represent it in
an action against Manor to recover the deposit monies. Mancinelli did not name
Tuttle in that suit. Manor subsequently filed a voluntary petition in bankruptcy and
the complaint was dismissed.
In 1992, plaintiff retained defendant/third-party plaintiff Faugno to file a malpractice claim against
Tuttle. Ultimately, Tuttle was granted summary judgment under the entire controversy doctrine and
we affirmed. Neubauer v. Tuttle, No. A-2341-94T3 (App. Div. December 13, 1995).
In March 1998, plaintiff retained Anthony DElia, Esq., to file a malpractice complaint
against Mancinelli for failure to include Tuttle in the 1989 action against Manor.
That complaint was also dismissed on summary judgment under the entire controversy doctrine
because Mancinelli should have been included in the suit against Tuttle. Again, we
affirmed. Schwartz v. Mancinelli, No. A-3989-98T2 (App. Div. February 25, 2000).
Plaintiff next filed a malpractice action against Faugno for failing to name Mancinelli
in the suit against Tuttle. Faugno then filed third-party complaints against Mancinelli and
Tuttle for indemnification and contribution under the Joint Tortfeasors Contribution Act (Act), N.J.S.A.
2A:53A-1 to 29.
Mancinelli and Tuttle moved for summary judgment on the ground that they were
not subject to the Act because plaintiffs direct claims against them had been
dismissed under the entire controversy doctrine. That motion was granted, and Faugnos motion
for leave to appeal was denied on January 29, 2000.
Faugno then entered into a consent judgment, settling with plaintiff for $575,000. The
consent judgment was satisfied on October 21, 2002 and Faugno appealed. Faugno now
argues: (1) the trial judge erred in interpreting the Act; and (2) equity
demands that he be allowed to seek contribution from Tuttle and Mancinelli. Faugno
contends that Tuttle and Mancinelli are joint tortfeasors because all three attorneys caused
the same injury to plaintiff and are responsible for the same damages, i.e.,
loss of the deposit monies paid by plaintiff to Cherry Hill Manor.
The Act defines joint tortfeasors as two or more persons jointly or severally
liable in tort for the same injury to person or property, and allows
one joint tortfeasor to recover contribution from [any] other joint tortfeasor or joint
tortfeasors for the excess paid over his pro rata share. N.J.S.A. 2A:53A-1 and
-3. An action for contribution from a joint tortfeasor is neither derivative of
nor dependent upon a plaintiffs direct claim against that joint tortfeasor. See, e.g.,
Holloway v. State,
125 N.J. 386, 402 (1991) (where plaintiff sued only one
joint tortfeasor, one joint tortfeasors right of contribution against the other was not
limited by the time bar for plaintiffs direct action against the other joint
tortfeasor); State v. Cruz Const. Co., Inc.,
279 N.J. Super. 241, 244-45 (App.
Div. 1995) (although private parties were statutorily time barred from bringing their actions
under N.J.S.A. 2A:14-1.1, the State was not). The purpose of the Act was
to establish a right of joint tortfeasors to seek allocation among themselves of
the burden of their fault. Markey v. Skog,
129 N.J. Super. 192, 199
(Law Div. 1974). Moreover, the Act created no rights in an injured plaintiff.
Mahoney, Comparative Fault and Liability Apportionment 13:2-2c (2003). Rather, it created an independent
right of action for contribution against an alleged joint tortfeasors. Ibid.
R. 4:8-1 provides for filing a third-party complaint against a non-party who is
or may be liable to defendant for all or part of the plaintiffs
claim against defendant and may also assert any claim which defendant has against
the third-party defendant involving a common question of law or fact arising out
of the same transaction or series of transactions as the plaintiffs claim. A
third-party complaint for contribution against an alleged joint tortfeasor will survive dismissal of
the primary complaint on procedural grounds such as statute of limitations or entire
controversy. See Pressler, Current N.J. Court Rules, comment on R. 4:8-1.
We held in LaBracio Family Partnership v. 1239 Roosevelt Avenue, Inc.,
340 N.J.
Super. 155 (App. Div. 2001), that two defendant attorneys could seek contribution from
a successor attorney for damages stemming from failure of all three attorneys to
file a mortgage. Id. at 158. The attorneys in LaBracio were all involved
in the same transaction and shared a duty to assure that the deed
and mortgage were timely filed. Id. at 158-59, 61-62.
In the case before us, the common thread is that each attorney represented
plaintiff to pursue essentially the same damages arising out of the original transaction.
The attorneys are potentially liable for having failed to protect the interests of
their mutual client. In other words, Faugnos liability for failing to preserve plaintiffs
claim against Mancinelli arises out of Mancinellis alleged failure to preserve plaintiffs claim
against Tuttle for Tuttles alleged failure to protect plaintiffs interest in the $300,000
deposit paid to Cherry Hill Manor. Tuttles alleged conduct led to cascading liability
through the chain of representation.
An essential element of recovery under the Act is that the parties be
joint wrongdoers under a joint or several liability to the injured person for
the injurious consequences of the wrongful act, neglect or default reduced to judgment.
Tomkovich v. Public Service Coordinated Transport,
61 N.J. Super. 270, 274 (App. Div.
1960), certif. denied,
33 N.J. 116 (1960). The right to contribution under the
statute is an inchoate right arising upon the commission of joint tortious conduct
and becomes consummate and enforceable by one of the tortfeasors when payment is
made by him beyond his pro rata share of a judgment arising out
of such [joint] tortious conduct. Id. at 273-74.
We are mindful of the fact that Tuttles liability has never been adjudicated
on the merits. Our decision does no more than give Faugno the opportunity
to pursue his claims against Tuttle and Mancinelli. Yet another day may dawn
with this case on our calendar once again.
Reversed and remanded for further proceedings consistent with this opinion. We do not
retain jurisdiction.