SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-2988-01T5
JOHN J. SWICK, JR., and
DEBORAH SWICK, his wife,
Plaintiffs-Appellants,
v.
THE NEW YORK TIMES COMPANY,
Defendant-Respondent,
and
NOLAN PRODUCTS, INC., NOLAN
INDUSTRIES, INC., NOLAN
SYSTEMS, INC., XYONICZ
CORPORATION, CUTLER HAMER,
INC., and EATON CORPORATION,
Defendants.
Argued: December 17, 2002 - Decided:
February 7, 2003
Before Judges Wallace, Jr., Ciancia, and
Axelrad.
On appeal from Superior Court of New
Jersey, Law Division, Middlesex County,
Docket No. L-10516-98.
Richard E. Brennan argued the cause for
appellant (Drinker Biddle & Shanley,
attorneys; Mr. Brennan and Jennifer A.
Klear, on the brief).
Dennis J. Drasco argued the cause for
respondent (Lum, Danzis, Drasco, Positan
& Kleinberg, attorneys for respondent The
New York Times Company; Mr. Drasco and
James D. Butler, of counsel; Kevin J.
O'Connor, on the brief).
The opinion of the court was delivered by
WALLACE, JR., J.A.D.
Plaintiff John Swick, Jr.See footnote 11 and his wife, Deborah Swick,
appeal from a judgment of the Law Division dismissing their claim
against defendant, The New York Times Company. We affirm.
The facts in this controversy are undisputed. On November
15, 1996, plaintiff seriously injured his left arm, hand, and
fingers when he attempted to inspect and repair the newspaper
conveyor system of his employer, The New York Times (The Times).
Plaintiff filed suit against various defendants. In his amended
complaint, plaintiff alleged that defendants Nolan Products, Inc.,
Nolan Industries, Inc., and Nolan Systems, Inc. (collectively
Nolan), and defendant Cutler Hamer, Inc. (Cutler), were negligent
in the design, manufacture, repair, maintenance, and inspection of
the conveyor system which caused his injuries. Plaintiff further
alleged that defendant Xyonicz Corporation merged with and is the
successor-in-interest to Nolan and is responsible for the
liabilities of Nolan, and that defendant Eaton Corporation is the
successor-in-interest to Cutler and is responsible for the
liabilities of Cutler.
Plaintiff was aware as early as April 1997 that the Times
intended to dismantle the conveyor due to a plant closing. In
preparation for filing a products liability action against Nolan
and Xyonicz, plaintiff's attorney wrote the Times, beginning in
April 1997, requesting that plaintiff be afforded an opportunity to
inspect the equipment. After no reply was forthcoming, plaintiff's
counsel wrote on July 11, 1997, that "we are continuing our request
to inspect the machinery involved in the above referenced accident
before it is dismantled and moved.
On August 5, 1997, plaintiff's attorney spoke with Vernon
Byrd of the Times's legal department. Byrd advised counsel to make
a written request regarding the preservation and inspection of the
equipment. Plaintiff's attorney then sent a certified letter and
facsimile requesting that the Times advise plaintiff (i) whether
the machine has been preserved, (ii) where it is located, (iii)
when it is available for inspection, and (iv) to whom we should
address our request to inspect the machine. Plaintiff's attorney
followed up this request, but Byrd never arranged an inspection of
the equipment.
On November 20, 1997, plaintiff filed a petition in New York
against the New York Times seeking pre-lawsuit discovery. By
letter dated January 15, 1998, the Times indicated it no longer
possessed the subject conveyor and had sold it to the Manila Post
Publishing Company in the Philippines. On January 16, 1998, the
New York court ordered the Times to provide additional information
about the conveyor, and on January 30, 1998, the Times informed
plaintiff's counsel that the conveyor had been sold on September
17, 1997, and removed by the Manila Post in the fall of 1997. The
letter also listed the address of the buyer in the Phillippines.
On October 23, 1998, plaintiff commenced this action in New
Jersey against the manufacturers of the equipment and asserted
claim of intentional and negligent spoliation of evidence against
the Times, asserting that the Times had irreparably prejudiced his
opportunity to prove a products liability action against the
manufacturers because the conveyor had been sold. The Times filed
an Answer denying liability while acknowledging that the conveyor
had been sold in September 1997 and removed thereafter.
In April 2001, both parties moved for summary judgment on
the spoliation claim. The court ordered a plenary hearing to
determine if the Times had a duty to preserve the conveyor.
Following a plenary hearing the court concluded that defendant had
a duty to preserve the conveyor as of August 5, 1997, the date
plaintiff's attorney wrote the Times requesting inspection of the
conveyor. Following the denial of the Times's motion for leave to
appeal, the matter was scheduled for trial.
Prior to trial, plaintiff dismissed his complaint against
all defendants except the Times. On the first day of trial, the
Times moved to dismiss the complaint on the ground that plaintiff
could not prove damages since all the other defendants in the
underlying products liability action had been dismissed. The
manufacturer of the machine, Nolan, had declared bankruptcy in the
1980's and did not have any insurance, and other than the Times,
the remaining defendants had been dismissed allegedly because
plaintiff could not establish a case against them without the
opportunity to inspect the conveyor.
The next day, the court dismissed plaintiff's complaint,
concluding that plaintiff could not establish a prima facie case
of spoliation. The court noted that the Supreme Court in Rosenblit
v. Zimmerman,
166 N.J. 391 (2001), held that New Jersey does not
recognize intentional spoliation as a separate cause of action but
that a claim for fraudulent concealment could be maintained. Id.
at 406. Further, the trial court noted that in Gilleski v.
Community Medical Center,
336 N.J. Super. 646 (App. Div. 2001), the
court held that a claim for negligent spoliation of evidence was
not a separate cause of action, but a claim could be maintained
under traditional concepts of negligence. Id. at 652. The trial
court then focused on the element of damages, stating that the case
law on negligent and intentional spoliation:
seem[s] to indicate that -- really that
the first determination . . . has to be
whether or not the plaintiff can -- can
prove damages against the defendant and
if there is a finding of no cause in the
products liability case, then the
spoliation or the intentional . . .
concealment or negligence, case would
then be brought to determine whether or
not there would be a viable cause of
action against the surviving defendant in
this case. The problem I have here is
that we can have no trial on the issue of
whether or not the products liability
case would result in a finding of no
cause, or whether in fact there could be
damages and I say that because all of the
defendants in this case have been
dismissed out, so there can be no trial
of making that determination.
The court also noted that there was no remedy available to
plaintiff since the traditional remedies available in spoliation
cases, such as a negative inference against the spoliator or
sanctions, were not applicable to the circumstances of this case.
Consequently, the court entered judgment in favor of the Times
dismissing plaintiff's complaint.
On appeal, plaintiff contends:
POINT I:
THE TRIAL COURT ERRED PREJUDICIALLY IN DISMISSING
PLAINTIFFS' COMPLAINT ON THE GROUND THAT PLAINTIFFS
HAD TO FIRST PROCEED TO TRIAL AGAINST THE
MANUFACTURER OF THE DEFECTIVE PRODUCT, AND ONLY
AFTER JUDGMENT IN FAVOR OF THE MANUFACTURER COULD
THEY THEN COMMENCE A SPOLIATION CLAIM AGAINST THE
TIMES FOR FAILING TO PRESERVE THE CONVEYOR.
POINT II:
UNCERTAINTY AS TO THE AMOUNT OF DAMAGES IS NOT A
BAR TO RECOVERY WHERE, AS HERE, THE DEFENDANT IS
RESPONSIBLE FOR PLAINTIFFS' INABILITY TO PROCEED
WITH A PRODUCTS LIABILITY ACTION.
We have carefully reviewed all of the arguments advanced by
plaintiffs challenging the dismissal of the complaint, and we
affirm substantially for the reasons expressed by Judge Hurley in
his thoughtful and comprehensive oral opinion of January 3, 2002.
We add only the following comments.
In Rosenblit, our Supreme Court held that New Jersey does not
recognize a separate tort action for intentional spoliation of
evidence. Rosenblit, supra, 166 N.J. at 404-05. Spoliation is a
term that is used to describe the hiding or destroying of
litigation evidence. Id. at 400-01. The Court noted that various
civil remedies were available where spoliation occurred. One such
remedy is an inference during the underlying litigation whereby it
is presumed the evidence the spoliator destroyed or otherwise
concealed would have been unfavorable to him or her. Id. at 402.
A second remedy is a discovery sanction. Ibid. Thus, where a
party fails to comply with a discovery request, the court may
order that designated facts be taken as established, refuse to
permit the disobedient party to support or oppose designated claims
or defenses, prohibit the introduction of designated matters into
evidence, dismiss an action, or enter judgment by default [,] [and]
may order the delinquent party to pay reasonable expenses resulting
from his or her conduct, including attorney's fees. Id. at 402-
03. Another remedy is a separate tort action against the spoliator
for intentional or negligent spoliation. Id. at 403. In this
regard, the Court noted that New Jersey followed those
jurisdictions which find that traditional negligence principles or
an action for fraudulent concealment would suffice to address
concealment or destruction during or in anticipation of litigation.
Id. at 404-05. Since Rosenblit involved an allegation of
intentional destruction of evidence, the Court set forth the
elements required to prove an action for fraudulent concealment as
follows:
(1) That defendant in the fraudulent concealment
action had a legal obligation to disclose evidence
in connection with an existing or pending
litigation;
(2) That the evidence was material to the
litigation;
(3) That plaintiff could not reasonably have
obtained access to the evidence from another
source;
(4) That defendant intentionally withheld, altered
or destroyed the evidence with purpose to disrupt
the litigation;
(5) That plaintiff was damaged in the underlying
action by having to rely on an evidential record
that did not contain the evidence defendant
concealed.
[Id. at 406-07].
Prior to the Court's decision in Rosenblit, we reached a
similar conclusion that spoliation of evidence was not a separate
tort, but a claim for destruction of evidence against a third party
could be brought by applying traditional negligence principles.
Gilleski, supra, 336 N.J. Super. at 652. In Gilleski, plaintiff
was injured in a hospital when a chair collapsed. Within days of
the accident, plaintiff's husband called the hospital complaining
about the lack of adequate care for plaintiff, but he made no
reference to the chair. Approximately fourteen months afer the
accident, plaintiff's attorney gave notice of a law suit but did
not mention preservation of the chair. By that date, the hospital
had already disposed of the chair. Plaintiff filed a negligence
action against the hospital based on negligence in permitting her
to use a defective chair and negligence in the destruction of the
chair, which was critical evidence in a potential law suit against
the chair manufacturer. The trial judge permitted the negligent
spoliation claim to go to the jury, and the jury returned a verdict
in favor of plaintiff. On appeal, we refused to recognize
negligent spoliation of evidence as a separate tort and held that
negligent destruction of evidence against a third party may be
resolved by applying traditional negligence principles of a duty of
care, breach of that duty by defendant, and an injury to plaintiff
proximately caused by defendant's breach. Id. at 652. We
explained that a court could find a duty to preserve the evidence
would exist if (1) the third party has knowledge of a potential
lawsuit and accepts responsibility for preserving the evidence; (2)
the third party voluntarily undertakes to preserve the evidence and
a plaintiff reasonably and detrimentally relies thereon; (3) the
third party agrees with plaintiff to preserve the evidence; or (4)
plaintiff makes a specific request to the third party to preserve
a particular item. Id. at 654-55. In the application of these
principles, we concluded the hospital owed plaintiff no duty
because none of the standards for the imposition of a duty were
prescribed. Id. at 655.
Applying traditional negligence principles in the present
case, neither party challenges the court's decision that the Times
owed a duty to plaintiff to preserve the conveyor machine, so we
need not address that issue. Assuming there was a duty and
assuming the Times breached that duty, the crucial issue is whether
plaintiff can demonstrate damages caused by that breach.
Before addressing that issue, we note that plaintiff failed to
pursue a more traditional discovery sanction. The record shows
that the Times sold the conveyor to a company in the Philippines
and informed plaintiff of the location of the machine. Plaintiff
could have asked the trial court to require the Times to pay for
the cost for his expert to travel to the location of the machine
and examine the machine as a reasonable expense resulting from the
Times's conduct. See Rosenblit, supra, 166 N.J. at 403. Plaintiff
did not pursue such a remedy and ultimately dismissed his complaint
against the manufacturers and successor corporations.
We turn now to whether plaintiff presented any evidence of
injury or damages proximately caused by the Times's alleged breach
of a duty to preserve the equipment. As the trial court noted,
plaintiff dismissed his complaint against all defendants except the
Times. The proofs showed that Nolan, the manufacturer of the
machine, was out of business, and there was no insurance coverage.
Thus, even if the machine had been available for plaintiff's expert
to examine, and even if plaintiff obtained a judgment against
Nolan, it was not disputed that plaintiff could not recover damages
from Nolan. Under these circumstances, the evidence was clear that
plaintiff could not prove that the Times's conduct in failing to
preserve the machine proximately caused any injury to plaintiff.
Consequently, judgment was properly entered in favor of the Times.
Affirmed.
Footnote: 1 1Plaintiff in the singular refers to the injured plaintiff John Swick, Jr.