SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-401-99T1
JOE D'EGIDIO LANDSCAPING, INC.,
Plaintiff-Respondent,
v.
DANIEL APICELLA,
Defendant-Appellant.
Submitted: December 18, 2000 Decided:
February 13, 2001
Before Judges Wefing, Cuff and Lefelt.
On appeal from the Superior Court of New
Jersey, Law Division, Morris County, L-0603-
97.
Hueston, McNulty & Mueller, attorneys for
appellant (Samuel J. McNulty, on the brief).
Dell'Italia, Affinito, Jerejian & Santola,
attorneys for respondent (Stacy A. Santola, of
counsel and on the brief).
The opinion of the court was delivered by
WEFING, J.A.D.
Following a bench trial, the trial court entered a judgment
for plaintiff in the amount of $8,132.94 and dismissed defendant's
counterclaim. Defendant has appealed. After a careful review of
the record in light of the arguments advanced on appeal, we affirm,
but not for the reasons expressed by the trial court.
The underlying dispute involves certain work that plaintiffSee footnote 11
performed for defendant at defendant's home. Joe D'Egidio and
defendant Apicella are related through marriage; Apicella's sister
is married to D'Egidio's brother. The two men were together at a
family function in February 1996, and discussed certain work that
Apicella wished to have done at his home. The house was relatively
new and the driveway remained unpaved. In addition, an easement
adjoined Apicella's property upon which there were certain manholes
which had been improperly covered over. The township was refusing
to grant Apicella a certificate of occupancy until these manholes
were excavated and corrected.
Apicella asked D'Egidio, who installs paver driveways as part
of his landscaping business, to come to the property to look at it.
D'Egidio did so and prepared an estimate of $12,000 to do both
jobs. This price was significantly lower than others Apicella had
received; D'Egidio told Apicella he was giving him a lower price
because of the family connection between the two.
This was not the first time the two men had done work for one
another. Apicella has a painting business; when D'Egidio moved
into a new house a few years earlier, Apicella spent two days
painting the house for him. When Apicella moved into his home,
D'Egidio spent several days cleaning the yard and the easement.
Plaintiff prepared a contract for the job but Apicella refused
to sign it. He professed to be insulted that D'Egidio wanted a
signed contract, stressing he had known D'Egidio from the time that
he, Apicella, was eight years old and that they were related
through marriage.
Faced with Apicella's protestations, D'Egidio proceeded to
perform the work without a contract and Apicella made two payments
on account. Disputes developed on this project, however, and
Apicella refused to pay the balance D'Egidio said was owed.
D'Egidio testified that Apicella told him that unless D'Egidio
performed certain landscaping work for free, Apicella would not pay
him what he owed and would tie him up in litigation.
This lawsuit resulted. Apicella counterclaimed for damages,
alleging the workmanship on the driveway was poor.
The parties presented significantly different versions at the
trial of what transpired between them. It is clear from the trial
court's letter opinion that it accepted plaintiff's version and
rejected defendant's as not credible. Within its letter opinion,
the trial court specifically noted that it accepted as true
D'Egidio's testimony about Apicella's reaction to D'Egidio's
request that he sign a contract.
One of the issues argued before the trial court was the
consequence of plaintiff having proceeded to perform this work
without having first obtained a written contract. Under N.J.A.C.
13:45A-16.2(12), a regulatory provision adopted under the Consumer
Fraud Act, all home improvement contracts in excess of $200 are
required to be in writing and signed by all parties and must
specify the work to be done and materials to be used and include a
beginning and ending date.
The Supreme Court has held that mere proof of a regulatory
violation is sufficient to establish unlawful conduct under the
Consumer Fraud Act. Cox v. Sears Roebuck & Co.,
138 N.J. 2, 18-19
(1994). An aggrieved consumer does not have to establish an intent
to evade or violate regulatory requirements; it is a matter of
strict liability. Ibid.
The trial court here concluded in its written opinion that the
Consumer Fraud Act was not applicable to the parties' relationship
because, in the trial court's words, "This case is about family
relationships, help and effort when requested, and not about the
ordinary consumer facing a provider of services in the open
marketplace." In effect, the trial court carved out a "family"
exception to the scope of the consumer fraud statute.
We are unable to concur that family transactions such as this
fall, per se, beyond the purview of the statute and the
accompanying regulation. Indeed, notwithstanding the trial court's
specific finding that "both parties specifically agreed to and
understood the scope of the work," the dispute between the parties
that subsequently developed is a good illustration of the need for
such contracts to be in writing and to detail the nature of the
work to be performed.
We are satisfied, nonetheless, that defendant is not entitled
to the protections offered by the statute and the regulation
because it was his own conduct which caused the violation. Were
we to conclude that defendant is entitled to invoke N.J.A.C.
13:45A-16.2(12), the result would be to permit defendant to retain,
at no cost, the fruits of D'Egidio's labor when he was the one who
insisted a written contract was unnecessary in light of their long-
standing relationship. It would also reward defendant with the
remedial provisions of the consumer fraud statute. We consider
such a result unacceptable; one who induces the alleged wrongdoing
should not benefit as a result of it. See, Sears Mtge Corp. v.
Rose,
134 N.J. 326, 346 (1993) where the Court, in holding the
buyer's title insurance company liable for acts of the buyer's
attorney who absconded with the closing proceeds, noted that it
"was in a position either to prevent or protect against the loss .
. . ." Not only did Apicella not "prevent or protect against the
loss," he occasioned it.
Further, we consider it particularly inappropriate to permit
Apicella to seek the protection of the consumer fraud statute and
its implementing regulation in light of the trial court's clear
view that Apicella's testimony at trial was not truthful.
In our judgment, the situation presented is an entirely
appropriate one in which to invoke the equitable doctrine of
estoppel.
Equitable estoppel has been defined as "the
effect of the voluntary conduct of a party
whereby he is absolutely precluded, both at
law and in equity, from asserting rights which
might perhaps have otherwise existed . . . as
against another person, who has in good faith
relied upon such conduct, and has been led
thereby to change his position for the worse .
. ." The doctrine is "designed to prevent a
party's disavowal of previous conduct if such
repudiation 'would not be responsive to the
demands of justice and good conscience'."
[Heuer v. Heuer,
152 N.J. 226, 237 (1998)
(citations omitted).]
While we are unaware of any reported authority which has applied
the doctrine of equitable estoppel in the context of the Consumer
Fraud Act, we are unable to perceive any reason in logic or policy
which would lead to a conclusion that equitable estoppel is
inapplicable. As the Court noted in Heuer, "[p]rinciples of equity
must be applied in light of the totality of the circumstances."
Heuer, supra, 152 N.J. at 235.
We recognize New Jersey's long-standing commitment to the
protection of the consumer. We are fully cognizant of the fact
that the consumer fraud statute is remedial legislation and should
be liberally construed to accomplish its dual objectives of
deterrence and protection. Lettenmaier v. Lube Connection, Inc.,
162 N.J. 134, 139 (1999); Cox v. Sears Roebuck & Co., supra, 138
N.J. at 15.
We are satisfied, however, that in the unique circumstances
presented here, we are not retreating from that commitment or
weakening the scope of the statute's protective reach when we
apply the doctrine of estoppel. Defendant is, as the trial court
noted, in the home improvement business himself as a painter and as
chargeable for knowing the applicable regulations as plaintiff.
"The consumer fraud statute is aimed at promoting truth and fair
dealing in the market place." Feinberg v. Red Bank Volvo, Inc.,
331 N.J. Super. 506, 512 (App. Div. 2000). Permitting this
defendant in the context of this case to invoke the statutory
remedies afforded by the Consumer Fraud Act would not further those
laudable legislative objectives.
Defendant has presented one other contention, that the trial
court erred when it received into evidence a bill not previously
provided during discovery. The argument does not warrant
discussion in a written opinion, for it would have no precedential
value. R. 2:11-3(e)(1).
The judgment under review is affirmed.
Footnote: 1 1 Giuseppe D'Egidio is the principal of the corporate plaintiff, Joe D'Egidio Landscaping, Inc. Throughout the proceedings below, all the participants referred to plaintiff simply as "Joe." We adopt that style for consistency.