SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-174-97T1
HELEN GLASS,
Plaintiff-Respondent,
v.
SUBURBAN RESTORATION CO., INC.,
and JOHN MARKOVIC, Individually,
jointly and severally,
Defendants-Appellants.
__________________________________________________
Argued November 16, 1998 - Decided December
30, 1998
Before Judges Petrella, Cuff and Collester.
On appeal from Superior Court of New Jersey,
Law Division, Bergen County.
David A. Schrader argued the cause for
appellants (Raich, Paykin, Krieg & Schrader,
attorneys; Dennis J. Cummins, Jr., on the
brief).
Richard L. Hertzberg and Helen K. Glass, pro
se, argued the cause for respondent
(Greenbaum, Rowe, Smith, Ravin, Davis &
Himmel, and Helen K. Glass, attorneys;
Richard L. Hertzberg and Ms. Glass, on the
brief).
The opinion of the court was delivered by
PETRELLA, P.J.A.D.
Defendants Suburban Restoration Co., Inc. and John
MarkovicSee footnote 1 (collectively "Suburban") appeal from the dismissal
with prejudice, on the eve of a peremptory trial date, of their
legal malpractice counterclaim against Helen Glass, their former
attorney, for failure to comply with court orders to submit an
expert's report. They also appeal from the jury verdict awarding
attorney's fees to Glass in the amount of $56,165.28, which was
reduced by the amount Suburban had already paid to $27,405.53.
Their motions for a new trial or, in the alternative, remittitur,
were denied.
On appeal, Suburban argues that the court abused its
discretion in dismissing their counterclaim with prejudice; the
court should have granted their request for an adjournment; and
that their motion for a new trial or remittitur should have been
granted. Among Suburban's arguments are various subsidiary
issues, including whether the same judge, who entered earlier
orders requiring the submission of an expert's report within a
fixed time period, should have ruled with respect to the motion
to dismiss the counterclaim, and whether Glass, as attorney for
Suburban, had any legal basis to file a summary judgment motion
in one of the matters she handled which allegedly resulted in
extensive legal fees.
From October 1992, Helen Glass represented Suburban and
provided legal services for a period of about eight months on
approximately fourteen matters in New Jersey and New York, until
Suburban discharged Glass from all but one matter on June 3,
1993. Subsequent to June 3, 1993, Glass continued to represent
Suburban on a matter referred to as "International Fidelity."
During the period Glass represented Suburban she submitted
bills aggregating $56,165.28 for legal services, including
$1,669.03 for disbursements. Suburban paid $28,759.75 in several
payments, the last on April 29, 1993. Thereafter, on June 7,
1994, Glass filed a complaint for the unpaid balanceSee footnote 2 against
Suburban Restoration, as well as Markovic, as personal guarantor
of the corporation's obligations.
Rather than fully detail the extensive procedural history of
this case we need merely highlight the matters relevant to our
decision. On November 23, 1994, Suburban filed its answer which
essentially denied most of the allegations of the complaint and
its counterclaim alleging, in vague and general terms, legal
malpractice against Glass.
On or about January 4, 1995, Glass served Suburban with a
demand for production of documents and a first set of
interrogatories. The attorney defending Glass on the legal
malpractice counterclaim served a set of interrogatories on
Suburban on or about January 27, 1995. Thereafter, on April 21,
1995, Suburban served Glass with interrogatories, and on June 22,
1995, a notice to produce documents. Suburban also served a
notice to take Glass's deposition on August 16, 1995.
Glass furnished answers to interrogatories and provided
documents on October 2, 1996. Glass was deposed on November 21,
1996 and again on January 15, 1997. As for Suburban, an order
dated October 16, 1995 directed Suburban to produce by a date
certain more specific answers to interrogatories, documents as
earlier requested, and an expert report or else be precluded from
relying on any expert. The record is unclear if Suburban
produced more specific answers to interrogatories or the
requested documents.
On October 11, 1996, Glass moved for summary judgment
dismissing the malpractice counterclaim. A November 22, 1996
order by Judge Troast granted Glass's summary judgment "without
prejudice" for forty-five days, to allow Suburban additional time
to produce an expert report. Subsequent orders to the same
effect were entered. Suburban thereafter filed additional
motions for extension of time to contest the summary judgment and
also moved to vacate Judge Simon's earlier order barring expert
testimony. By an order dated March 21, 1997, Judge Simon
effectively again extended the time for Suburban to procure an
expert report despite Suburban's repeated failures in producing
an expert report. On a later motion, Judge Troast deferred
making a decision in order to allow Judge Simon an opportunity to
reconsider the motion before her with respect to the expert's
report. That motion before Judge Simon was subsequently denied,
with reconsideration thereafter denied, except that Judge Simon
indicated she would entertain a motion "upon submission of an
expert report." Shortly after that order was entered Judge Simon
was reassigned to the Chancery Division.
On the peremptory trial date, Judge Guida resolved the
pending issues against Suburban. By an order dated May 14, 1997,
Judge Guida dismissed the malpractice counterclaim with
prejudice, after consulting with Judge Simon,See footnote 3 because no expert
report had been produced despite all the prior orders.
Suburban's request for additional time to produce an expert's
report was denied and it was precluded from presenting expert
opinion testimony with respect to Glass's claim for attorneys
fees.
After presenting testimony and documentary evidence at the
jury trial before Judge Smith, Glass was awarded attorneys fees
as previously indicated. Judge Smith denied Suburban's motion
for a new trial or remittitur and denied Glass's cross motion for
attorney fees for a frivolous claim on July 11. Judge Smith did
award prejudgment interest to Glass in a July 23 order. Suburban
appeals Judge Guida's May 14, 1997 order, as well as Judge
Smith's July 11 and July 23, 1997 orders.
We have considered all of Suburban's arguments in light of
the record and the arguments presented and conclude that they are
without merit. R. 2:11-3(e)(1)(B) and (E). We add only the
following comments.
Suburban's challenge to the dismissal with prejudice, on
the eve of a peremptory trial date, of their legal malpractice
counterclaim against Glass, came essentially after the entry of
numerous orders requiring timely production of an expert's report
and denial of reconsideration motions that sought continued
extensions. The various Law Division judges were extremely
indulgent. The constant resort by Suburban to reconsideration
applications was at best an abuse of the letter and the spirit of
the rules, see Cummings v. Bahr,
295 N.J. Super. 374, 384 (App.
Div. 1996); Palumbo v. Township of Old Bridge,
243 N.J. Super. 142, 147 n.3 (App. Div. 1990), and a disregard of the impact of
court orders. As of the date Judge Guida dismissed the
counterclaim with prejudice, Suburban had not submitted an
expert's report with respect to the vague allegations of attorney
malpractice, despite the fact that numerous orders had been
entered directing such a report to be submitted within specified
time periods.
Moreover, it was only after Judge Guida ruled on May 12,
1997 that he was dismissing the counterclaim with prejudice, that
Suburban produced an expert report dated May 13, 1997, which was
too little too late. Judge Guida entered an order memorializing
the dismissal on May 14, 1997 and we denied Suburban's emergent
motion for leave to appeal in a May 16, 1997 order which noted:
We have reviewed the entire record,
including the tape of the argument before
Judge Guida on May 12, 1997. The papers
submitted to this court indicate (aside from
attorney action) that the defendants
intentionally and personally delayed for a
lengthy period of time in authorizing their
attorney to obtain an expert and the record
supports Judge Guida's specific finding that
"both Judge Simon and Judge Troast were
misled as was the plaintiff," and that there
was surprise and prejudice to plaintiff, etc.
The "excuse" in the reply brief is meritless.
As Judge Guida noted, the history of the
matter was indeed "tortured" and his
determinations of misleading, surprise and
prejudice are substantiated by the record.
We note that even if the belated report dated
the day after the decision of Judge Guida,
and bearing a fax machine date/time of May
14, was part of the record, and it was not,
there are many assumptions, speculation,
references to documents not reviewed, as well
as what are questions of strategy and
tactics. See Brill v. Guardian Life Ins. Co.
of America,
142 N.J. 520 (1995). In light of
the discovery violations and the history of
disregard of court orders, as well as
disregard of the mandate of R. 4:24-1, we
have no warrant to interfere with the various
and conscientious decisions of the several
trial judges in this three year old case for
which there were apparently as many as
fifteen trial dates. See Abtrax
Pharmaceutical, Inc. v. Elkins-Sinn, Inc.,
139 N.J. 499, 515-517 (1995); Westphal v.
Guarino,
163 N.J. Super. 139, 145-146 (App.
Div. [aff'd,
78 N.J. 308 (1978).]
We recognize that there were a number of judges who were
involved over many months with respect to Glass's efforts to
obtain an expert report from Suburban regarding its malpractice
allegations. During that time the assignments of various judges
changed. For instance, Judge Simon had ruled on at least four
previous motions regarding the expert report, with her final
order being essentially a suggestion to Suburban to produce an
expert report before coming in for reconsideration to vacate a
previous order. Suburban neglects to say that virtually all the
numerous orders were on motions for reconsiderationSee footnote 4 filed by
Suburban of the order that barred the use of an expert due to the
failure to comply with court orders regarding an expert's report.
Judge Simon's involvement was limited and exclusive to this one
issue.
Although a fairly recent amendment to R. 1:6-2(d) has the
precatory language that to the extent practical "all subsequent
motions in the cause shall be heard by the same judge who heard
the first motion in the cause," this rule does not require the
same judge to hear the motions, particularly in as
straightforward a matter as presented for resolution in this
case. Indeed, we would expect, in view of the obvious and clear
nature of the matter before Judge Guida, that any judge could
have heard this matter at any time without the need of an
evidentiary hearing. In any event, in view of the obvious
changes in assignments, it was clearly not practical for the same
judge to be required over these many months to continue with
every aspect of this particular case. The argument is
essentially frivolous.
Suburban's assertion made at oral argument of this appeal
that the orders were improperly entered under the interrogatory
rule misses the mark entirely. It is an argument that attempts
to place form over substance and overlooks the court-ordered
requirement, on Glass's application, for an expert report by a
fixed time so that Glass could have an opportunity to prepare for
trial and respond. Moreover, it is unfair to a plaintiff to be
interminably delayed in presenting a case because of dilatory
tactics of a party. Here, there was clear prejudice to Glass.
We also observe that there was no basis demonstrated in the
general allegations of the counterclaim for a claim of attorney
malpractice.See footnote 5 Nor do we accept Suburban's argument that any
alleged delinquency in providing discovery by Glass prevented
Suburban from obtaining an expert report. In the first place, it
is improper to assert a claim without any factual basis for that
claim, particularly a malpractice claim. That thesis is
implicitly recognized in the affidavit of merit statute even if
it does not apply here. See N.J.S.A 2A:53A-26 to -29; see also
Cornblatt v. Barow,
153 N.J. 218 (1998).
It has long been established that pleadings reciting mere
conclusions without facts and reliance on subsequent discovery do
not justify a lawsuit. See Gruccio v. Baxter,
135 N.J. Super. 290, 294-295 (Law Div. 1975); see also Korostynski v. Division of
Gaming Enforcement,
266 N.J. Super. 549, 559 (App. Div. 1993) (In
wrongful termination suit, appellate court stated that
"plaintiff's discovery request amounts to little more than a
fishing expedition."). Moreover, in attorney malpractice cases
"plaintiffs must allege particular facts in support of their
claim of attorney incompetence and may not litigate complaints
containing mere generalized assertions of malpractice."
Zeigelheim v. Apollo,
128 N.J. 250, 267 (1992).
Nor do we find the situation in this case comparable to
cases such as Jansson v. Fairleigh Dickerson University,
198 N.J.
Super. 190, 195-197 (App. Div. 1985), where the failure of an
attorney to submit factual answers to interrogatories was not
visited upon an unsuspecting client. Here, we are talking about
a vague, non-particularized claim of legal malpractice which was
asserted on behalf of counterclaimant-Suburban in their pleadings
apparently more as a defense to Glass's claim for attorneys' fees
than any reference to acts of malpractice. Such a defense,
although now apparently obligatory whenever an attorney sues for
a fee, had to have had some basis known to the client or
discussed with the new attorney before filing such a counterclaim
of attorney malpractice against their former attorney. Certainly
any basic and essential facts known to the client about possible
attorney malpractice should have been communicated by the client
to the new attorney early on in the litigation so as to readily
be the subject of a required expert's report. Indeed, from the
record before us, it appears it was some time long after suit was
instituted and the counterclaim asserted that Suburban authorized
its then attorney to get an expert report.See footnote 6 We accept that as
the case, but whether or not it is the case, there is no warrant
in this case to disturb Judge Guida's exercise of discretion in
the dismissal of the counterclaim with prejudice. See Crispin v.
Volkswagenwerk, A.G.,
96 N.J. 336, 346 (1984); R. 4:37-3.
As for the denial of Suburban's motion for a new trial,
there was sufficient credible evidence in the record to support
the jury's verdict on Glass's complaint. Popow v. Wink
Associates,
269 N.J. Super. 518, 531 (App. Div. 1993); Pickett v.
Lloyds,
252 N.J. Super. 477, 490 (App. Div. 1991), aff'd,
131 N.J. 457 (1993).
Affirmed.
Footnote: 1Markovic was a personal guarantor as well as president and
sole stockholder of Suburban.
Footnote: 2Glass had previously given Suburban notice of their right
to pursue fee arbitration. That remedy was apparently not
pursued by Suburban.
Footnote: 3Suburban's objections to such consultation are misplaced.
Such consultations are appropriate as a practical matter and
under the Code of Judicial Conduct. The comment to Cannon 3
specifically states that the proscription against communications
concerning a proceeding: "It does not preclude a judge from
consulting with other judges, or with court personnel whose
function is to aid the judge in carrying out adjudicative
responsibilities." Moreover, there was no special knowledge of
the situation possessed by Judge Simon as to the expert report
requirements that could not readily have been gleaned from the
record.
Footnote: 4As we have noted in other cases, the reconsideration rule
has been often abused, see Cummings v. Bahr, supra (295 N.J.
Super. at 384); Polidori v. Kordys, Puzio & DiTomasso,
228 N.J.
Super. 387, 394-395 (App. Div. 1988); Michel v. Michel,
210 N.J.
Super. 218, 220-221 (Ch. Div. 1985), as appears here.
Footnote: 5The malpractice counterclaim recited in one numbered
paragraph of the first count:
The Plaintiff in performing legal services
for Defendant Suburban did not do all that
she represented that she either was going to
do or that she was capable of doing. As a
result thereof, the Defendant Suburban
sustained a loss by being either not
represented or under-represented in various
legal proceedings.
The second count of Suburban's counterclaim rejected that
allegation in the first numbered paragraph asserting, after it
had denied in its answer most of the complaint's allegations
about Glass furnishing legal services at agreed rates, that:
There existed either a contract or a written contract between the Plaintiff and Suburban. Said agreement called for the Plaintiff to render legal services for which she was paid. Notwithstanding the fact that she was paid for her services, she failed to perform certain of these services to the detriment of Suburban. Footnote: 6The attorneys appearing for Suburban at oral argument of this appeal were substituted as attorneys just three days before the argument date.