SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-2858-00T3
MARIE B. FOX, ROBERT L.
KELLER and BUCK MOUNTAIN
ASSOCIATES,
Plaintiffs-Appellants,
v.
TOWNSHIP OF WEST MILFORD,
Defendant-Respondent.
Argued January 7, 2003 - Decided January 22, 2003
Before Judges Pressler, Wallace, Jr. and Axelrad.
On appeal from the Superior Court of New Jersey,
Law Division, Passaic County, PAS-L-7670-97.
Norman I. Klein argued the cause for appellants
(Carlet, Garrison, Klein & Zaretsky, attorneys;
Mr. Klein and Robert S. Getman, on the brief).
Robert H. Oostdyk, Jr. argued the cause for
respondent (Johnson, Murphy, Hubner, McKeon,
Wubbenhorst & Appelt, attorneys; Mr. Oostdyk
and Martin F. Murphy, on the brief).
The opinion of the court was delivered by
PRESSLER, P.J.A.D.
Plaintiffs Marie B. Fox, Robert L. Keller, and their
partnership, Buck Mountain Associates, brought this inverse
condemnation action against the defendant Township of West Milford
claiming that the Township's ordinance that vacated the public
interest in roads running through their property left it landlocked
and consequently deprived them of any reasonable use. Following a
lengthy trial on liability only, the court dismissed the complaint
on the ground that plaintiffs retained an easement over State lands
which afforded them reasonable access. That decision was,
moreover, predicated on the court's conclusion that the property in
question, consisting of some 150 acres, was a single parcel rather
than ten separate lots as urged by plaintiffs. The significance of
that determination is that the asserted easement, while affording
access to a unitary parcel, does not afford access to each of the
ten separate lots.
Plaintiffs appeal. As we understand their position, they
raise two primary issues. First, they contend that the trial judge
erred in regarding the property as a unitary parcel for purposes of
determining whether the vacation of the public interest in the
streets left them with reasonable access. Second, they challenge
the trial court's conclusion that they had an adequate access
easement over State lands. While we agree with the trial judge
with respect to the unitary characterization of the property, we
are satisfied that the State, which was not joined in the
litigation, was an indispensable party to the easement
determination. Accordingly, since the State cannot be bound by the
court's determination, the question of plaintiffs' reasonable
access by virtue of the asserted easement was not subject to
dispositive adjudication. Resolution of the pivotal issue of
whether plaintiffs retained such reasonable access as would defeat
their inverse condemnation complaint clearly required joinder of
the State. We remand for such joinder now in order to afford the
State the opportunity to define and argue its position respecting
the existence and scope of the easement and for the court to then
redetermine the reasonable-access issue.
The facts relevant to the disposition of this appeal, either
undisputed or as found by the judge based on the evidence, are as
follows. Plaintiffs Fox and Keller, as tenants in common, acquired
the 150-acre parcel in West Milford in 1986 by a single deed given
them by the Trustees of the Episcopal Fund. The parcel was
identified as lots 6, 7, and 8 of block 492, each of which had been
separately acquired by the grantor. The land, essentially
undeveloped and environmentally sensitive, is located in a four-
acre minimum residential zone, and Fox and Keller had purchased it
for subdivision and development. The tract is surrounded on three
sides by land deeded to the State in 1946 and maintained by the
State as the Norvin Green State Forest. The fourth side is bounded
by private lands. The parcel does not abut a public improved
street. The closest such street is Otterhole Road. There were,
however, three unimproved dirt roads running through the tract
known as Leaver Road, 1828 Road, and Snake Den Road. Leaver Road
connects the tract to Otterhole Road by traversing Norvin Green
State Forest, and that is the easement here in dispute. 1828 Road
connects the tract to Otterhole Road at a point north of the Leaver
Road-Otterhole Road juncture. And Snake Den Road connects the
tract to more distant public streets east of the tract. The
vacation of 1812 Road and Snake Den Road leave the Leaver Road
easement as the only access to the tract from an improved street.
In 1989 and 1990 Fox and Keller implemented a scheme designed
to effectuate a subdivision of the tract without benefit of
municipal land-use applications and approval. Relying on what they
regarded as natural interior lot boundaries created by interior
roads, paths and trails, they deeded out ten separate portions of
the tract by separate deeds, four to Fox, two to Keller, three to
both of them, and one to Buck Mountain Associates, a partnership of
which they were the partners. That is the present state of title.
Plaintiffs candidly conceded that of the ten lots so created, no
contiguous lots were conveyed to the same grantees, a precaution
they took to avoid a municipal claim of merger of lots. See
generally Cox, New Jersey Zoning and Land Use Administration, 16-
15.2 (Gann 2002). They then attempted a formal minor subdivision
of a portion of one of the separate conveyances to Fox, which
ultimately failed because of the street vacation ordinance they
challenge here. As we held in the appeal before us brought in
prior litigation, Keller, et al. v. Township of West Milford, et
al., No. A-1830-96T5 (App. Div. December 12, 1997), the result of
the street vacation ordinance was the necessity of a new street to
serve the proposed minor subdivision, and N.J.S.A. 40:55D-5
prohibits minor subdivision treatment where a new street is
required.
We address first the question of whether the tract consists of
a single unitary parcel or ten separate lots. To begin with, we
think it plain that the conveyances, individually and in the
aggregate, constituted a subdivision of the entire tract. The
Municipal Land Use Law (MLUL), N.J.S.A. 40:55D-1, et seq., defines
"subdivision" as "the division of a lot, tract or parcel of land
into two or more lots, tracts, parcels or other divisions of land
for sale or development" subject to stated exceptions not here
applicable. N.J.S.A. 40:55D-7. The MLUL also prescribes the
consequences of transfer of portion of a single tract without first
obtaining subdivision approval. Thus N.J.S.A. 40:55D-55 imposes a
monetary penalty of up to $1,000 for each lot transferred without
subdivision approval. In addition, that statute authorizes the
municipality to institute a civil action for injunctive relief and
to set aside the conveyance. It must, however, do so within two
years of the transfer if recorded and six years of the transfer if
unrecorded. Defendant West Milford did not institute a civil
action seeking the statutory relief within two years of the
recording of any of the ten deeds. Accordingly, plaintiffs argue,
the deeds must be regarded as no longer voidable and as vesting the
transferees _ themselves _ with the full panoply of rights enjoyed
by owners of real property.
We disagree. We dealt with a similar contention, albeit in a
somewhat different context, in Dalton v. Ocean Tp., 245 N.J. Super.
453 (App. Div.), certif. denied,
126 N.J. 324 (1991). We
recognized the two-year limitation on the municipality's right to
seek judicial relief from the illegal subdivision, but we made
plain that the limitation merely bars the municipality from
instituting suit. It does not, as we held, "validate ... [the
subdivided lot] for development purposes." Id. at 462. We adhere
to that proposition. We do not believe that the MLUL contemplates
or sanctions the abrogation of its subdivision regulation or that
of municipalities by the simple expedient of a grantor conveying
out a portion of a lot to himself or an alter ego, waiting out the
two-year period for a municipal lawsuit to ensue, and then, if none
is brought, claiming that an effective subdivision has been
accomplished. This is particularly so because the municipality, at
least in respect of its planning officials and planning function,
is unlikely to be aware of the conveyance within that time period.
As we pointed out in Dalton, the municipal assessor is required by
N.J.S.A. 54:4-31 to receive prompt notice from the county recording
officer of filed deeds. But, as we said, that requirement is part
of the tax law, not part of the land-use planning law, and the
enforceability of the land-use planning laws "should not depend on
an illegal subdivision's reaching its second birthday before
municipal officials notice it." Id. at 463.
We note, moreover, that plaintiffs' first application to the
municipality for land use approval, the minor subdivision
application to which we have referred, was not made until two years
had passed from the time of the ten conveyances. The conclusion is
virtually inescapable that plaintiffs' actions were calculated from
the start to create subdivisions in avoidance of the MLUL and the
strong public policy it represents. It is thus in our view clear
that the issue of bare legal title aside, the subdivision attempted
by the ten ex cathedra conveyances did not create ten separate
developable lots. We need not consider what efficacy the
conveyances may have had. It suffices to conclude that for land
use purposes, they had no validity at all.
And that conclusion brings us to a consideration of the access
issue. It is well settled that while governmental deprivation of
any access to a public highway constitutes a compensable taking,
the property owner is not entitled to access at every point between
the land and the highway, nor access to all available public
highways, nor the access he prefers, but only to such reasonable
and convenient access to the general system of roadways as
maintains the utility of the property. See, e.g., High Horizons
Dev. v. Dept. of Transp.,
120 N.J. 40, 48 (1990); Lima & Sons, Inc.
v. Borough of Ramsey,
269 N.J. Super. 469, 475-477 (App. Div.
1994); Mueller v. N.J. Highway Authority,
59 N.J. Super. 583, 595
(App. Div. 1960). We need not consider whether the pre-vacation
access afforded by the three unimproved roads running over the
lands of others before reaching a public street afforded plaintiffs
sufficient access to permit development of the tract. We merely
note that development requires each building lot to abut an
improved street meeting appropriate standards, N.J.S.A. 40:55D-35
and 36, and we think it plain that an improved street would have to
reach the development as a whole. Consequently, development would
require improvement of at least one of the three roads by either
the developer or the municipality, and the developer's ability to
improve a road on another's land is problematical.
Those issues, however, are not before us. Rather, the
question is whether, aside from the issue of future improvement of
the three vacated roads, the effect of the vacation was to deprive
plaintiffs of such reasonable access as they then had. We are
satisfied that the answer must be in the negative if they retained
private rights in Leaver Road by way of easement since that
easement would adequately preserve that which they had prior to the
vacation, namely unimproved access over the lands of another to a
public improved street. See Lima & Sons, Inc. v. Borough of
Ramsey, supra, 269 N.J. Super. at 479. Obviously, this conclusion
is based on the fact that Leaver Road provides access to the tract
as a unitary whole because it clearly does not provide access to
each of the ten lots. And, for the reasons we have already
expressed, the tract is properly so regarded in the context of this
inverse condemnation claim. That is to say, the ten lots are not
separably developable because of the subdivision violations. They
have at present no utility as separate lots and hence the
deprivation of access to each deprives them of nothing to which
they are entitled. Those lots can only be rendered utilizable as
separate tracts by a proper subdivision of the whole, and, if the
easement is enforceable against the State, the tract as a whole has
access.
The key, then, to plaintiffs' inverse condemnation action is
whether it has easement rights in Leaver Road. Plaintiffs did not
seek to join the State, the owner of the servient tenement, on the
theory either that they had no private easement rights or that by
reason of State ownership and regulation, any easement rights they
might have had were inadequate for development purposes. It was on
that theory that they asserted deprivation of any reasonable access
by reason of the street vacation. Nevertheless they did seek to
join the State on the eve of trial, a motion that was denied
because of its lateness.
We agree with the trial judge that the motion was grossly
untimely. But that circumstance should have been balanced against
the fact that the State was a person within the intendment of R.
4:28-1(a) whose joinder was required for a just adjudication, over
whom the court could assert jurisdiction, and who was amenable to
service of process. R. 4:28-1 in part defines such a person as one
whose absence precludes complete relief to those who are already
parties. And while that person's indispensability in those terms
is circumstantial, it is at least clear that such indispensability
results if the omitted person "has an interest inevitably involved
in the subject matter before the court and a judgment cannot justly
be made between the litigants without either adjudging or
necessarily affecting the absentee's interest." Jennings v. M&M
Transportation Co,
104 N.J. Super. 265, 272 (Ch. Div. 1969). See
also Schaefer v. Strelecki,
107 N.J. Super. 7, 13-14 (App. Div.
1969) (indispensability defined in terms of avoidance of
irreconcilable and inconsistent judgments). R. 4:28-1(a),
moreover, instructs the court to order joinder of an indispensable
party.
Clearly, the State was an indispensable party that should have
been joined. This was not an action challenging the street
vacation ordinance as such. This was, rather, an action in inverse
condemnation claiming that the ordinance constituted a taking
because it left the property with no reasonable access. The
defense was that reasonable access remained because of plaintiffs'
Leaver Road easement. But the owner of the land burdened by the
easement, the State, could not be bound by an adjudication of the
existence and validity of the easement without an opportunity to
appear and be heard in the protection of its property and the
public interest therein. That is the most fundamental precept of
procedural due process. In sum, plaintiffs were adjudicated not to
have been subject to a taking because of the easement over the
State's land, the State could not be bound by that adjudication,
and consequently the judicial declaration of an easement was
provisional at best and still subject to dispute by the owner of
the servient tenement. And should the State dispute the existence
and scope of the easement and prevail, then plaintiffs will indeed
be left with no viable access and the taking question must be
otherwise resolved.
In remanding to the trial court for joinder of the State in
order to permit a complete adjudication of the easement question,
we note that plaintiffs challenge the court's findings with respect
to the status and character of the roads in question.See footnote 11 We find no
merit in their argument. The findings were fully supported by the
record, and we defer to them. Rova Farms Resort, Inc. v. Investors
Ins. Co. of Am.,
65 N.J. 474, 484 (1974). Moreover, the court's
choice of which expert to credit was entirely within its
discretion. See, e.g., Balsamides v. Protameen Chemicals,
160 N.J. 352, 367-368 (1999); Borough of Wildwood Crest v. Smith,
235 N.J.
Super. 404, 406 (App. Div. 1988). The remand is thus not intended
as an opportunity to relitigate the factual issues already decided
except as the State's interest in the easement issue may be
implicated. If the court adheres to its determination that
plaintiffs have an adequate easement over State lands, it shall
reaffirm its judgment dismissing the complaint. If it finds that
there is no adequate easement, it then shall proceed to a trial on
damages.
We remand for further proceedings consistent with this
opinion.
Footnote: 1 1In this regard we also reject plaintiffs' contention that the trial court abused its discretion in permitting the withdrawal of defendant's admissions pursuant to R. 4:22-2. In any event, we find no prejudice to plaintiffs in the withdrawal.