NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-4080-97T3
LINDA LONG,
Plaintiff-Respondent/
Cross-Appellant,
EVERETT B. LONG, III,
ALEXANDER M. LONG AND
NIKOLAUS A. LONG,
Plaintiffs,
v.
DONALD E. LEWIS, individually and
in his official capacity, JOHN
ROBERT SHAW, individually and in
his official capacity, DENNIS J.
CUNNINGHAM, individually and in
his official capacity, KATHLEEN
M. VANSTEEN, individually and in
her official capacity, PATRICIA
MACDANIELS, individually and in
her official capacity, GEORGE
YEFCHAK, individually and in his
official capacity, the NEW
JERSEY DEPARTMENT OF CORRECTIONS,
Defendants-Appellants/
Cross-Respondents.
_________________________________________________________________
Argued February 2, 1999 - Decided February 23,
1999
Before Judges Muir, Jr., Eichen, and Coburn.
On appeal from the Superior Court of New
Jersey, Law Division, Burlington County.
Steven J. Zweig, Deputy Attorney General,
argued the cause for appellants/cross-respondents (Peter Verniero, Attorney General,
attorney for appellants; Mary C. Jacobson,
Assistant Attorney General, of counsel; Steven
J. Zweig, on the brief).
Steven P. Weissman argued the cause for
respondent/cross-appellant (Weissman & Mintz,
attorneys; Sharra E. Greer and Mr. Weissman,
on the brief).
The opinion of the court was delivered by
COBURN, J.A.D.
The primary question raised by this appeal is whether the
entire controversy doctrine bars a discharged State civil service
employee, who has failed to raise a claim of discrimination in an
administrative proceeding before the Merit System Board, from suing
her supervisors and employer in court under the Law Against
Discrimination ("LAD"), N.J.S.A. 10:5-1 to 42. We hold that the
LAD action may be maintained.
I.
Plaintiff Linda Long, a State civil service employee, was
denied an extension of a medical leave of absence by the
administrator of the Alfred C. Wagner Youth Correctional Facility,
defendant Donald E. Lewis. His written explanation indicated that
Long had insufficiently documented the need for further time off to
deal with her condition of major depression. He wrote that he
would be willing to reconsider her request if she provided
appropriate documentation within seven days. Failing that, she had
to return to work or she would be dismissed pursuant to
N.J.A.C.
4A:2-6.2
(c), a regulation that provides for dismissal if a
classified civil service employee fails to return to work for five
consecutive days at the end of an approved leave of absence. Long
did not comply, Lewis dismissed her on November 7, 1991, and she
appealed to the Merit System Board ("MSB" or "the Board"), which
referred the matter to the Office of Administrative Law, pursuant
to
N.J.A.C. 4A:2-2.9.
At the hearing before the Administrative Law Judge ("ALJ"),
Long was represented by counsel. The only defense offered was that
she had done her best to satisfy Lewis's request for documentation
but had been frustrated in that endeavor by her psychiatrist's
initial unwillingness to report in detail on her condition. She
claimed that Lewis was arbitrary in failing to give her additional
time to persuade the doctor of the need to supply the information
to which she acknowledges Lewis was entitled. The ALJ concluded
that Long had used her best efforts to comply with the request in
the brief time allowed but declined to accept that as a basis for
overturning her dismissal. In short, he found that the admin
istrator was entitled to the information and that the burden of
supplying it in a timely manner belonged with Long.
Long appealed to the MSB pursuant to
N.J.A.C. 4A:2-2.9. On
July 13, 1993, the Board sustained the ALJ's determination that
discipline was appropriate based on Long's failure to provide the
requested medical documentation in a timely fashion and her
subsequent failure to return to work within the five-day
requirement of
N.J.A.C. 4A:2-6.2(c). However, the Board also noted
that the documentation subsequently provided and placed in the
record before the ALJ fully supported the reasonableness of the
request for an extended leave. Because Long had "diligently
attempted to fulfill her employer's request for further
information," the Board held that the dismissal was not justified,
and instead, it reduced the punishment to a ten-day suspension and
directed that she receive mitigated back pay beginning six months
after the effective date of the suspension.
She returned to work in July. Subsequently, plaintiff
reviewed her personnel file and, after consultation with her
attorney, became convinced that the file indicated her supervisors
may have taken their actions against her because of a prejudice
against mental illness. She had not previously entertained such a
suspicion.
II.
Long filed this action in the Law Division after she returned
to work. Defendants moved unsuccessfully for summary judgment, and
we granted their motion for leave to appeal. We also granted
plaintiff's motion for leave to cross-appeal from that portion of
the order denying her the right to seek back pay for periods of
time not allowed by the MSB.
Plaintiff seeks to pursue three of the causes of action set
out in her Superior Court complaint: malicious abuse of process;
"intentional misrepresentation"; and a claim under the LAD. The
first two actions cannot be maintained.
An action for malicious abuse of process requires proof that
the prior action terminated in the plaintiff's favor.
Penwag
Property Co. v. Landau,
76 N.J. 595, 598 (1978). Although the MSB
reduced plaintiff's punishment, it sustained the conclusion that
she had violated the applicable regulation. Therefore, plaintiff
cannot satisfy a necessary element of that cause of action.
The claim of "intentional misrepresentation" is based on an
allegation that two of the defendants testified falsely in the
administrative hearing before the ALJ. But a "statement made in
the course of judicial, administrative, or legislative proceedings
is absolutely privileged and wholly immune from liability."
Erickson v. March & McLennan Co.,
117 N.J. 539, 563 (1990).
Therefore, that count failed to state a claim upon which relief can
be granted.
The denial of summary judgment on these counts is reversed,
and we turn to the question of plaintiff's entitlement to pursue a
LAD claim.
The LAD claim alleges that defendants dismissed plaintiff
because of her major depression, which she asserts was a handicap
under
N.J.S.A. 10:5-4.1. Defendants argue that the LAD claim is
barred by the entire controversy doctrine, res judicata, and
collateral estoppel. Although they also argue that plaintiff's
condition was not a handicap under the LAD, they did not seek, and
we did not grant, leave to appeal on that issue. Therefore, we
will confine our discussion to the procedural viability of the LAD
claim, first addressing collateral estoppel.
The Supreme Court has often emphasized this State's strong
policy against employment discrimination,
Andersen v. Exxon Co.,
89 N.J. 483, 492 (1982), and the "special niche in [its] legislative
scheme" for the Law Against Discrimination.
Accord Goodman v.
London Metals Exchange, Inc.,
86 N.J. 19, 30 (1981).
Consequently, in
Hahn v. Arbat Systems Ltd.,
200 N.J. Super. 266 (App. Div. 1985) this court held that collateral estoppel would
not prevent an employee who had unsuccessfully sought unemployment
benefits before the Division of Unemployment and Disability
Insurance, alleging that she had been forced to leave her
employment because of unlawful discrimination, from maintaining a
subsequent LAD action against her employer.
Id. at 268-69.
Although
Hahn might be read as holding that collateral
estoppel can never be applied in any LAD case
where an
administrative agency, other than the Division on Civil Rights, has
ruled against an employee on the issue of discrimination, another
panel has ruled that it should be read more narrowly.
Ensslin v.
Township of North Bergen,
275 N.J. Super. 352, 373 (App. Div.
1994),
certif. denied,
142 N.J. 446 (1995).
Ensslin arose from the claim by a police officer, rendered a
paraplegic by a skiing accident, that he had been improperly
dismissed from his employment in violation of the LAD.
Id. at 357.
He asserted that his employer failed to make a reasonable
accommodation for his handicap.
Id. at 357-58. This assertion was
first offered at a local departmental hearing.
Id. at 358.
Failing there, the officer appealed to the Merit System Board,
which, in turn, referred the matter to the Office of Administrative
Law.
Ibid. The ALJ considered and rejected the officer's LAD
claim.
Id. at 358-59. The Board affirmed.
Id. at 360-61. In the
meantime, the officer had filed a LAD claim based on the same
circumstances in the Law Division.
Id. at 367. On appeal, the
doctrine of collateral estoppel was held to bar Ensslin's claim in
the Law Division primarily because it had been expressly rejected
by a forum of equal jurisdiction in formal proceedings.
Id. at
369.
Ensslin's views on the collateral estoppel issue were
noted
with approval by the Supreme Court in
Hernandez v. Region Nine
Housing Corp.,
146 N.J. 645, 659 (1996).
The
Ensslin,
supra, court distinguished
Hahn and limited its
reach:
Hahn involved an administrative hearing before
the Division of Unemployment Compensation
where the hearings are conducted in an
informal fashion by a hearing officer, not an
ALJ. Although discrimination was put in issue
by the plaintiff in that case, and it was
stipulated that the plaintiff was not denied
the opportunity to present evidence on that
point, it is not clear whether she was
represented by counsel in the administrative
proceeding. Further, the Appellate Division
was not afforded an opportunity to compare the
development of the discrimination on the
administrative proceeding because the
administrative record was not available for
review. Finally, the remedies sought by
plaintiff in the administrative proceeding
were substantially different from the remedies
sought by her in the civil proceeding.
[275 N.J. Super. at 372-73.]
But there is a significant difference between the cases of
Long and Ensslin that undercuts the defendant's reliance on
collateral estoppel. Ensslin raised the LAD as a defense in the
administrative hearing; Long did not. Collateral estoppel only
bars relitigation of issues that were actually litigated.
Ensslin,
supra, 275
N.J. Super. at 369 (citing
Mazzilli v. Accident & Cas.
Ins. Co. of Winterthur,
26 N.J. 307, 314-16 (1958)). Therefore, it
would appear that Long's LAD claim may only be barred if it runs
afoul of the entire controversy doctrine or res judicata.
In
Thornton v. Potamkin Chevrolet,
94 N. J. 1 (1983), the
Court held that the entire controversy doctrine does not bar an
employee's pursuit of a LAD claim in the State Division on Civil
Rights when the employee has previously contested a dismissal,
without raising discrimination, in a grievance arbitration under a
union contract.
The entire controversy doctrine is not
applicable here because there is no
comparability between private contractual
arbitration and court or administrative
adjudications. The doctrine presumes forums
of equal jurisdiction. The Division on Civil
Rights is unlike the identical forum of entire
jurisdiction contemplated by the single
controversy rule. The Division offers a
plenary hearing (rather than a limited
arbitration), a focus on the individual
(rather than the representative claim), and an
agency as factfinder particularly sensitive to
the disposition of the claim. Moreover, the
function of the arbitrator and the agency head
are fundamentally different. In the private
sector the arbitrator cannot consider the
public interest except as the provisions of
the parties' contract direct. In contrast,
the Legislature has specifically entrusted the
administrative agency with the duty to fulfill
a statutory mandate in accordance with
particularized rules of practice and procedure
it shall develop. In addition, the Division
on Civil Rights has remedial powers far beyond
those of an arbitrator.
Terry v. Mercer Cty.
Freeholder Bd.,
86 N.J. 141, 158 (1981);
Jackson v. Concord Co.,
54 N.J. 113, 126-27
(1969).
[Id. at 5.]
In Ensslin, supra, the court emphasized the distinction drawn
by Thornton between private arbitration and court or administrative
adjudications. 275 N.J. Super. at 373-74. Based on Thornton's
treatment of an administrative agency's determination as being on
a par with a court adjudication, the court held that collateral
estoppel barred relitigation of the issue decided by the agency.
Id. at 374. But we do not read Thornton as holding that an
administrative agency is always a forum of equal jurisdiction for
purposes of the entire controversy doctrine.
In some cases, the agency may be an equal forum. For example,
a plaintiff who has unsuccessfully pursued a LAD claim in the
Division on Civil Rights may not thereafter relitigate the claim in
the Law Division, as is otherwise authorized by N.J.S.A. 10:5-13.
Christian Bros. Inst. v. Northern New Jersey Interscholastic
League,
86 N.J. 409, 415 (1981); Hermann v. Fairleigh Dickinson
Univ.,
183 N.J. Super. 500, 504 (App. Div), certif. denied,
91 N.J. 573 (1982). But Long did not take that course, and those cases do
not foreclose this lawsuit.
The forums under consideration here are the MSB and the
Superior Court. Defendants concede that plaintiff had a right to
preserve the option of pursuing a LAD case in courtSee footnote 1 because she
could not obtain any relief from the MSB other than reinstatement,
reduction in punishment, and back pay. In her court action,
however, plaintiff could obtain the relief available from the MSB
plus compensatory damages for pain and suffering or personal
humiliation, punitive damages, and counsel fees. Hernandez, supra,
146 N.J. at 653. In addition, she could obtain damages and counsel
fees against defendants who could not be joined in the
administrative action. Since the remedies available in court far
surpass those available from the administrative agency, it follows
that at least for purposes of the entire controversy doctrine the
MSB and the court are not forums of equal jurisdiction under
Thornton. Cf. Hernandez, supra, 146 N.J. at 661 (holding that a
LAD claim is not barred by proceeding before the EEOC); Kopin v.
Orange Products, Inc.,
297 N.J. Super. 353, 375 (App. Div.)
(holding that a quantum meruit action by an employee is not barred
by an earlier resort to Wage Collection Division), certif. denied,
149 N.J. 409 (1997); Perry v. Tuzzio,
288 N.J. Super. 223, 230-31
(App. Div. 1996) (holding that an action against persons claimed to
be liable to a decedent's estate is not barred by a prior exception
proceeding in an accounting to which they were not parties nor
reasonably joinable); Cafferata v. Peyser,
251 N.J. Super. 256,
262-63 (App. Div. 1991) (holding that a medical malpractice action
is not barred by a Special Civil Part action by a physician seeking
payment of his bill); Lickfield v. Lickfield,
260 N.J. Super. 21,
24-25 (Ch. Div. 1992) (holding that marital tort is not barred by
not being raised in a summary domestic violence procedure subject
to statutorily limited remedies).
Defendants rely on the aspect of the entire controversy
doctrine requiring at least notice of other claims, Cogdell v.
Hospital Ctr. at Orange,
116 N.J. 7, 15 (1989); but the notice
requirement has not been considered applicable in any of the above
cited cases involving unequal forums. Further, the defendants have
failed to explain how they were prejudiced by their lack of notice
of the potential LAD claim in the MSB proceedings. Even assuming
that a notice requirement applied, a violation would only warrant
dismissal of the LAD action if the lack of notice caused prejudice.
Cf. Gelber v. Zito Partnership,
147 N.J. 561, 566-67 (1997).
We also believe that the Court's observation in Thornton,
supra, that "in the vast majority of cases, grievance proceedings
may resolve misunderstanding and often will resolve the entire
dispute," 94 N.J. at 8, is relevant here. Confronted by the loss
of employment, or some other serious form of discipline, far more
often than not, a civil service employee who is convinced that the
punishment is the result of discrimination will either raise that
point as a defense in the administrative proceeding or seek relief
directly in court or in the Division on Civil Rights.See footnote 2 Thus, we
expect attempts at instituting a second proceeding, as occurred
here, will be rare.
The claim preclusion aspect of the entire controversy doctrine
is essentially res judicata by another name. Culver v. Insurance
Co. of N. Amer.,
115 N.J. 451, 463-64 (1989) (explaining that in
terms of claim preclusion "the entire controversy doctrine is
wholly consistent with the doctrine of res judicata"); see also
Geoffrey C. Hazard, Jr., An Examination Before and Behind the
"Entire Controversy" Doctrine,
28 Rutgers L.J. 7, 7 (1996). Thus,
for the reasons stated above, we are also convinced that the
doctrine of res judicata is equally inapplicable.
Given the overarching importance of eliminating discrimination
in the workplace, allowing plaintiff an opportunity to pursue her
LAD claim in the Law Division exceeds in importance any
inconvenience to defendants. Defendants have also expressed
concern about the possibility that a determination in the trial
court may vary in result from that reached by the administrative
agency. However, implicit in their concession that plaintiff was
entitled to withhold her LAD claim is the recognition that the
subsequent proceeding could lead to a result contrary to the
decision of the MSB. Therefore, we affirm the order denying
defendants' motion to dismiss the LAD claim.
We conclude by addressing the issue raised in plaintiff's
cross-appeal. The motion judge barred plaintiff from including
within her LAD action a claim for back pay denied to her by the
Board for the first six months following her dismissal. The
Board's action in this respect was based on its determination that
discipline was warranted because plaintiff had failed to meet her
obligation of providing adequate materials to document her medical
condition and had failed to return to work as ordered. However,
plaintiff's LAD claim puts into issue the motivation for the
initial dismissal. Since we are permitting that claim to proceed,
we fail to see any sound reason for foreclosing this aspect of it.
Surely, had the Board considered and upheld a LAD defense to the
dismissal, there would have been, in its view, no ground for
imposing this penalty. Thus, the potential for a "conflicting
decision" in the Law Division should not be allowed to interfere
with full vindication under the LAD.
Affirmed in part, reversed in part, and remanded for trial.
Footnote: 1 "If the plaintiff wanted to preserve her LAD claim while
pursuing her administrative remedies, all she had to do was file an
action simultaneously in the Superior Court and notify the ALJ and
parties that she was reserving that LAD claim for later disposition
in Superior Court." (Def.'s Reply Brief at 10.) We note, however,
that the individual defendants were not parties in the action
before the MSB.
Footnote: 2 2We note that contemporaneous filings by an employee with the
Division on Civil Rights and the MSB may implicate principles
discussed by the Supreme Court in City of Hackensack v. Winner,
82 N.J. 1 (1980).
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