LARISA PAVLOVA, individually and
in the capacity of General
Administratrix and Administratrix
Ad Prosequendum of the Estate of
Yevgenia Pavlova, deceased,
Plaintiff-Respondent,
v.
MINT MANAGEMENT CORP., MENLO MANOR
ASSOCIATES, LTD. (d/b/a Inman Grove
Senior Citizen Residence), FCH
SERVICES, INC. (formerly F.C.H. Company,
Inc.), FEDERAL PACIFIC ELECTRIC CO.,
ANTHONY MAZZUCCA, MAZZUCCA CONSTRUCTION
CO., ROBERT BAUER, BAUER ELECTRIC,
ELECTRICAL INSTALLATIONS, INC., and
LEHIGH EDISON CO., a joint venture,
Defendants-Appellants,
and
MINT MANAGEMENT CORP. and MENLO MANOR
ASSOCIATES, LTD. (d/b/a Inman Grove
Senior Citizen Residence,
Third-Party Plaintiffs,
v.
FEDERAL PACIFIC ELECTRIC CO., ANTHONY
MAZZUCCA, MAZZUCCA CONSTRUCTION CO.,
ROBERT BAUER, BAUER ELECTRIC, and
ELECTRICAL INSTALLATIONS, INC.,
Third-Party Defendants.
_________________________________________
Argued January 19, 2005 - Decided March 7, 2005
Before Judges Skillman, Parrillo and Grall.
On appeal from the Superior Court of New
Jersey, Law Division, Middlesex County,
Docket No. L-6507-01.
William H. Mergner, Jr. argued the cause for
appellants (Leary, Bride, Tinker & Moran,
attorneys; Mr. Mergner, and Lisa G. Kim, on
the brief).
Christian P. Fleming argued the cause for
respondent (Jabin & Fleming, attorneys; Arnold E.
Jabin, of counsel; Mr. Fleming, on the brief).
The opinion of the court was delivered by
PARRILLO, J.A.D.
We granted leave to appeal from the denial of defendants' partial summary judgment
motion to dismiss the punitive damages claim brought by plaintiff, Larisa Pavlova, individually
and on behalf of the estate of her mother, who was fatally injured
in a fire in defendant's housing complex. We now reverse.
Inman Grove Senior Citizens Residence, located in Edison Township, is a housing complex
for people sixty-two years old or older. In November, 1999, plaintiff's mother, Eugenia
Pavlova, who was seventy-seven years old at the time, moved into an apartment
at Inman Grove. On December 18, 1999, at approximately 7:30 a.m., as Ms.
Pavlova was preparing to take a bath or shower, a towel on the
towel rack was ignited by a wall-mounted electric radiant heater located under and
slightly to the right of the towel rack. The fire spread, and, based
on her injuries, Ms. Pavlova likely attempted to put out the fire. The
building fire alarm was eventually activated when smoke filled the hall.
A maintenance worker, who was in charge of safety at the time of
the fire, was awakened by the fire alarm and proceeded to the second
floor wing of the building where Ms. Pavlova's apartment was located. He opened
the door to her apartment, where he saw flames. Realizing that he could
not help Ms. Pavlova, he went to a nearby apartment and asked for
help evacuating the other residents. After leading two deaf residents outside, he returned
to the main office, at a different location from the building with the
fire, where he called 911. When the hallway smoke alarms were activated, the
central monitoring station was notified, which should have contacted the fire department. The
fire department received a notification at 7:57 a.m.
When the firefighters arrived, they found the fire on the second floor. They
entered Ms. Pavlova's apartment and heard her screaming. Meanwhile, firefighters outside had also
connected a ladder to the window of the apartment. Finding Ms. Pavlova naked
by the window, the firefighters removed her from the apartment through the window.
She was burned on her hands and upper body. She was taken to
the hospital and later flown to a burn center. Ms. Pavlova died from
her injuries twenty-one days later.
The Inman Grove residential complex, owned and operated by defendants, Mint Management Corp.
and Menlo Manor Associates, Ltd. (Mint Management or defendant), consists of several buildings
containing approximately 240 housing units. All of the apartments are outfitted with electric
wall heaters in the bathroom, hard wired to the building's electrical system. The
heaters have exposed heating elements protected by a steel grate, and specific directions
on the assembly state: "Heater should not be blocked in any manner." Nearby
towel racks are placed to the left, and in some cases, directly over
the bathroom unit heaters.
Between 1980 and the December 18, 1999 fire, there were two minor fires
involving the electric wall heaters at Inman Grove, both resulting from the placement
of combustible material directly on or in front of the heaters. On May
19, 1995, a fire started in the bathroom of a unit when the
heater ignited undergarments placed directly on it. There were no injuries. Another fire
started on December 2, 1995, when clothing in a shopping cart placed near
the heater ignited from the heater. Two residents and one firefighter were injured.
After the second fire, the chief fire inspector in Edison sent a letter
to defendant, on December 5, 1995, indicating that the "ideal solution" to preventing
other fires would be to move the towel rack in the bathroom farther
from the heater, but if this were not possible, the residents "must be
made aware of the safety requirements when it comes to storing material too
close to the heater in the bathroom." As a result, defendant posted a
notice on the common bulletin board in the lobby of the housing complex
for two to three months warning residents not to put anything in front
of the heaters or otherwise obstruct the heaters. Defendant also organized a meeting
for the residents with the chief fire inspector. Ms. Pavlova moved into her
apartment at Inman Grove well after the posting of the notice and the
informational meeting.
Despite the fire chief's recommendation, defendant was never ordered to move the towel
racks or cited for their proximity to the electric heaters. In fact, in
the twenty years of defendant's operation prior to the December 18, 1999 fire,
the Edison Fire Department conducted annual inspections of the Inman Grove complex and
never cited the facility for any fire code violations.
Each unit at Inman Grove contains a smoke detector to notify the occupant
of smoke in the apartment. These "in room" detectors, however, do not sound
the building fire alarm nor summon the fire department or building staff when
activated. When smoke enters the hallway and activates a corridor alarm, a central
monitoring station is notified, which then contacts the fire department. Automatic fire sprinklers
are located in the hallways and common areas of the buildings. On the
day in question, December 18, 1999, Inman Grove's fire protection system operated as
designed, with the smoke detectors detecting a fire and two automatic sprinkler heads
discharging.
As a result of that incident, plaintiff filed a complaint, individually and as
the administratrix of her mother's estate, against defendant and others who "designed, manufactured,
distributed, sold, installed and repaired" the heater that caused the fire. Her complaint
alleged various causes of action, including strict liability, wrongful death, N.J.S.A. 2A:31-1 to
-6, and survival, N.J.S.A. 2A:15-3. Plaintiff sought compensatory and punitive damages.
Following discovery, defendant moved for partial summary judgment on plaintiff's claim for punitive
damages. In denying the motion, the trial court concluded:
[T]he defendant took no meaningful effort to warn the plaintiff of the likelihood
of fire in the event combustible materials were left near the subject heater.
While it is true that the defendant placed flyers in the lobby of
the building, warning residents of its potential danger, that occurred prior to the
plaintiff being a tenant in the building. The defendant, Mint Management, may not
insulate themselves from a potential punitive damage claim by choosing the least expensive
and less effective method of reducing the hazard.
Additionally, the plaintiffs have adduced other evidence from their experts which tend to
prove the state of mind of recklessness of this defendant.
This appeal by leave granted follows.
Defendant asserts that summary judgment should not have been denied on the issue
of punitive damages because its actions did not meet the necessary requirements. We
agree.
In 1995, the legislature enacted the Punitive Damages Act (Act), N.J.S.A. 2A:15-5.9 to
-5.17, which became effective October 27, 1995. The Legislature's purpose in enacting the
Act was to establish more restrictive standards with regard to the awarding of
punitive damages. See N.J.S.A. 2A:15-5.9; Assembly Insurance Committee Statement, Senate, No. 1496-L. 1995,
c. 142 (stating the restrictions imposed on the awarding of punitive damages). For
example, the Act requires an award of compensatory damages as a statutory precedent
for an award of punitive damages and disallows nominal damages as a basis
for a punitive damages claim. N.J.S.A. 2A:15-5.13(b) and (c); see also Smith v.
Whitaker,
160 N.J. 221, 248 (1999) (Garibaldi, J., concurring).
In most other respects, the Act codified the common law, Dong v. Alape,
361 N.J. Super. 106, 117 (App. Div. 2003), which limited punitive damages to
only "exceptional cases . . . as a punishment of the defendant and
as a deterrent to others from following his example." Di Giovanni v. Pessel,
55 N.J. 188, 190 (1970). As the Court explained in Nappe v. Anschelewitz,
Barr, Ansell & Bonello,
97 N.J. 37, 49 (1984), to warrant the imposition
of punitive damages:
the defendant's conduct must have been wantonly reckless or malicious. There must be
an intentional wrongdoing in the sense of an "evil-minded act" or an act
accompanied by a wanton and willful disregard of the rights of another .
. . . The key to the right to punitive damages is the
wrongfulness of the intentional act.
Thus, N.J.S.A. 2A:15-5.12(a) provides:
Punitive damages may be awarded to the plaintiff only if the plaintiff proves,
by clear and convincing evidence, that the harm suffered was the result of
the defendant's acts or omissions, and such acts or omissions were actuated by
actual malice or accompanied by wanton and willful disregard of persons who foreseeably
might be harmed by those acts or omissions. This burden of proof may
not be satisfied by proof of any degree of negligence including gross negligence.
"Actual malice" is "an intentional wrongdoing in the sense of an evil-minded act."
N.J.S.A. 2A:15-5.10. "Wanton and willful disregard" is defined as "a deliberate act or
omission with knowledge of a high degree of probability of harm to another
and reckless indifference to the consequences of such act or omission." Ibid. Moreover,
the Act provides a non-exclusive list of factors that the factfinder must consider
in determining whether to award punitive damages:
(1) The likelihood, at the relevant time, that serious harm would arise from
the defendant's conduct;
(2) The defendant's awareness or reckless disregard of the likelihood that the serious
harm at issue would arise from the defendant's conduct;
(3) The conduct of the defendant upon learning that its initial conduct would
likely cause harm; and
(4) The duration of the conduct or any concealment of it by the
defendant.
[N.J.S.A. 2A:15-5.12.]
Case law considers these same types of factors. Thus, circumstances of aggravation and
outrage, beyond the simple commission of a tort, are required for an award
of punitive damages. Dong, supra, 361 N.J. Super. at 116. In other words,
mere negligence, however gross, is not enough. Ibid.; see also Nappe, supra, 97
N.J. at 50. A plaintiff must demonstrate a "deliberate act or omission with
knowledge of a high degree of probability of harm and reckless indifference to
consequences." Berg v. Reaction Motors Div.,
37 N.J. 396, 414 (1962). To be
sure, the standard signifies something less than an intention to hurt. Dong, supra,
361 N.J. Super. at 116; see also Mc Laughlin v. Rova Farms, Inc.,
56 N.J. 288, 306 (1970). However, the standard can only be established if
the defendant knew or had reason to know of circumstances which would bring
home to the ordinary reasonable person the highly dangerous character of his or
her conduct. Ibid.; see also Parks v. Pep Boys,
282 N.J. Super. 1,
17 (App. Div. 1995).
Punitive damages were found justified in Smith v. Whitaker, supra, where the defendant
oil company's egregious conduct gave rise to the very real likelihood of the
immediate and substantial serious injury that actually occurred. 160 N.J. at 247. In
that case, a motorist was killed in an intersectional collision with defendant's 36,000
pound straight-body oil truck when the truck's rear brakes failed. Id. at 227.
As this court found, the oil truck was being operated by a completely
inexperienced and virtually untrained driver, who knew nothing about how to adjust air
brakes or how the complex braking system on this oil truck actually worked.
Smith v. Whitaker,
313 N.J. Super. 165, 191 (App. Div. 1998), affd,
160 N.J. 221 (1999). Defendant's management knowingly and deliberately allowed the truck to be
operated after it was placed "out of service" some three weeks before the
accident and after being advised by the driver of problems with the brakes.
Id. at 192-93. Knowing that the brakes were not operating properly and having
been cited for numerous safety violations on the truck the previous month, defendant
never made the needed repairs, failed to regularly adjust the brakes as required
by federal regulations, and ignored recordkeeping requirements regarding maintenance. Ibid. After the accident,
it was determined that the rear brakes were "totally defective" and that the
truck's stopping power had been reduced between 92% and 95%. Id. at 195.
Likewise, in Dong, supra, we reversed a trial court's summary judgment dismissal of
a plaintiff's punitive damages claim, finding plaintiff made a prima facie case of
especially egregious conduct that could support such an award. 361 N.J. Super. at
111. There, a pedestrian was hit while crossing a road, when the defendant,
driving erratically at fifty miles per hour, swerved around a car that was
stopped to allow pedestrians to cross the street. Id. at 112. We found,
as aggravating circumstances supporting a punitive damage claim, N.J.S.A. 2A:15-5.10, that the defendant
was extremely intoxicated and had been drinking an unknown quantity of alcohol earlier
on the day of the accident, despite knowing he was an alcoholic and
frequently drank to such an excess that he would black out, and that
he was driving at an excessive rate of speed in a highly erratic
manner on a busy street during rush hour just prior to the collision.
Id. at 121-22. This conduct, we found, carried with it the likelihood that
serious and immediate harm would result. Id. at 122. As if not deliberate
enough, the defendant also left the scene in an effort to conceal his
conduct. Ibid. Accordingly, we concluded that a jury "might reasonably find that this
defendant is the kind of ticking time bomb deserving of punishment and in
need of deterrence." Id. at 123.
On the other hand, we found the evidence in Parks, supra, 282 N.J.
Super. at 16-18 and Allendorf v. Kaiserman Enterprises,
266 N.J. Super. 662, 675-76
(App. Div. 1993), insufficient to sustain punitive damages claims. In Parks, a store
sold Freon to a fourteen-year-old boy, who used the Freon with friends as
a drug. Parks, supra, 282 N.J. Super. at 5-6. This sale violated a
company policy, instituted because of the dangers of inhaling Freon, prohibiting the sale
of Freon to persons under sixteen. Id. at 6. A seventeen-year-old boy died
as a result. Id. at 5. However, there was no proof that the
store knew the purchaser was underage or would use the Freon for an
illicit purpose. Id. at 18. Considering this and the circumstances of the sale,
we concluded that there was no malicious or willful conduct permitting punitive damages,
even if signs regarding the company policy were not posted in the store.
Ibid.
Allendorf involved a plaintiff injured when an elevator door malfunctioned. Allendorf, supra, 266
N.J. Super. at 666. Although another person was previously injured in the elevator,
and an inspection report indicated that the electric eye, designed to immediately reopen
the door if something was blocking the door's path during closing, was not
operating, the facts did not support a finding that the owner and operator
of the elevator was aware of a high probability of injury. Id. at
666, 675. To the contrary, the elevator appeared to be functioning adequately. Id.
at 675. Moreover, the operator did not simply ignore the problem but contacted
a company to have the elevator serviced. Ibid. We noted, in addition, that
since the jury ultimately found the operator was not negligent, then a fortiori
the evidence would have been insufficient to find the defendant's conduct was malicious
or wantonly reckless. Id. at 675-76.
In the present case, plaintiff does not allege in her complaint actual malice.
She alleges instead that defendant, at most, "recklessly, and in disregard of the
life and safety of plaintiff's decedent . . . maintained . . .
premises containing a dangerous and defective condition." She argues on appeal that there
is enough evidence to enable a jury to rationally find, by clear and
convincing evidence, sufficient aggravating circumstances to support a punitive damages award. We disagree.
In contrast to Smith, supra, and Dong, supra, absent here is the blatantly
egregious, deliberate conduct that was practically certain to cause both imminent and serious
harm. Indeed, no malicious or willful conduct is even alleged. Nor does the
evidence admit of the likelihood of serious and imminent harm, much less of
defendant's awareness of that likelihood. As in Allendorf, supra, while there were prior
incidents at Inman Grove, neither of the two minor fires in 1995 originated
in the same manner as the present occurrence. That is, neither was caused
by the towel rack's close proximity to the heater. Furthermore, defendant had never
been cited for any fire code violation throughout its twenty-year history of operations
and annual inspections, and in fact, had been advised by the fire department
at the outset that its fire protection system "as designed and installed will
meet the requirements of the code as in effect of [sic] the time
of construction." Just as significant, defendant was never directed to relocate the towel
bars in its apartment bathrooms. Instead, the fire official's recommendation was offered as
the preferred of two options. Even then, defendant did not ignore the suggestions,
but rather complied by choosing the alternative course of action recommended. Thus, defendant
warned residents by posting a notice on a common bulletin board and organized
an informational meeting of the residents with fire department officials.
The fact that defendant could have better monitored implementation of this policy by
ensuring continual notification to new residents such as decedent may arguably amount to
negligence, or even gross negligence, but, in our view, it does not rise
to the level of wanton and willful disregard of the likelihood, or high
probability, of resultant serious harm. As we said in Parks, supra, a case
that also dealt with a notice that was not posted, "[e]ven if signs
were not posted according to the store policy or not everyone was aware
of the policy, defendants' actions could not, on the proof presented in opposition
to the summary judgment motion, be considered as a reckless indifference to any
consequences of their actions." 282 N.J. Super. at 18.
The same is true here. The aggravating circumstances that evidence an utter disregard
for others, which were so critical to the decisions in Smith and Dong,
and are meant to be punished and deterred by punitive damages, Mancini v.
Township of Teaneck,
349 N.J. Super. 527, 568 (App. Div. 2002), aff'd as
modified on other issues,
179 N.J. 425 (2004), are absent in this case.
See footnote 1
We are satisfied that on the facts of record, including those concerning defendant's
fire response, fire protection system, and failure to warn decedent, plaintiff has not
provided a prima facie case for the award of punitive damages.
See footnote 2
Di Giovanni
v. Pessel, supra, 55 N.J. at 190-92. Partial summary judgment should be entered
dismissing the claim for punitive damages.
Reversed and remanded.
Footnote: 1
We consider the state of the record as it existed at the
time of plaintiff's motion for partial summary judgment, and prior to the trial
court's grant of defendant's in limine motion to bar plaintiff's fire expert from
testifying about defendant's fire protection system and human response, a determination made after
defendant's notice of motion for leave to appeal was filed in this matter.
Footnote: 2
Punitive damages, in any event, are not permitted on a wrongful death
claim, the primary purpose of which "is to compensate survivors for the pecuniary
losses they suffer because of the tortious conduct of others . . .
." Smith, supra, 160 N.J. at 231-32 (quoting Alexander v. Whitman,
114 F.3d 1392, 1398 (3d Cir.) (citation omitted), cert. denied,
522 U.S. 949,
118 S.
Ct. 367,
139 L. Ed.2d 286 (1997)); see also N.J.S.A. 2A:31-5; N.J.S.A.
2A:15-5.15.