NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-6271-00T1
MARK LEVINE and
LINDA LEVINE,
Plaintiffs-Appellants,
v.
THE KRAMER GROUP, CHARTER
CLUB ASSOCIATES, L.P., CHARTER
CLUB, INC., THE CHARTER CLUB
AT THE HAMPTON, INC., SOL KRAMER,
ISAAC KRAMER, PHILIP KRAMER,
ELI KRAMER, FRED MOSESMAN,
and BRUCE FORMAN,
Defendants-Respondents,
and
RICHARD SOFO,
Defendant.
Argued September 18, 2002 - Decided
October 15, 2002
Before Judges Coburn, Collester and Alley.
On appeal from the Superior Court of New
Jersey, Law Division, Civil Part, Monmouth
County, MON-L-2528-96.
Michael E. Donovan argued the cause for
plaintiffs-appellants (Donovan & Associates,
P.C. attorneys; Mr. Donovan, of counsel and on
the brief; William J. Cahill, on the brief).
Andrew M. Epstein argued the cause of
defendants-respondents (Lampf, Lipkind, Prupis
& Petigrow attorneys; Lois S. Feldman, on the
brief).
The opinion of the court was delivered by
ALLEY, J.A.D.
On May 2, 1996, plaintiffs-appellants Mark and Linda Levine
filed a complaint against The Kramer Group, Sol Kramer, Isaac
Kramer, Philip Kramer, Eli Kramer, Fred Mosesman, Bruce Forman,
Charter Club Associates, L.P., Charter Club, Inc., and Charter Club
at the Hampton, Inc. ("Kramer defendants"). The Kramer defendants
are the respondents in this appeal. Plaintiffs also joined Richard
Sofo as a defendant. Sofo is not a party to this appeal because
plaintiffs have since settled their claims with him.
The complaint alleged six causes of action against the Kramer
defendants which plaintiffs maintain arose from the Kramer
defendants' omissions and intentional misrepresentations regarding
their experiences with Sofo. Plaintiffs alleged that the Kramer
defendants should be found liable for claims based on (1)
fraudulent misrepresentation; (2) fraudulent non-disclosure; (3)
negligent misrepresentation; (4) recission of the sales contract;
(5) violation of N.J.S.A. 56:8-2 and other provisions of the
Consumer Fraud Act; and (6) violation of N.J.S.A. 45:22A-37(a) and
other provisions of the Planned Real Estate Development Full
Disclosure Act (PREDFDA). In addition, plaintiffs asserted two
causes of action against Sofo, for harassment and intentional
infliction of emotional distress.
Judge Robert W. O'Hagan heard motions for summary judgment and
to dismiss the complaint and determined them on March 31, 2000, in
an order that dismissed all of plaintiffs' claims against the
Kramer defendants pursuant to R. 4:6-2(e), because, he ruled,
plaintiffs failed to state a claim upon which relief could be
granted. We affirm.
I
Our summary of the facts and the parties' factual contentions
begins with the making of an agreement between plaintiffs and the
Kramer defendants, specifically defendant Charter Club Associates,
L.P., dated July 30, 1993, under which plaintiffs were to purchase,
and the Kramer defendants' entities would construct and sell, a new
home on property at 42 Amagansett Drive, Morganville, New Jersey.
The complaint against the Kramer defendants centers on
contentions that they are liable to plaintiffs for the conduct of
Sofo, who owned a home on property that adjoined the new home being
built for plaintiffs. It is undisputed for purposes of this appeal
that at some point after the parties' entry into the agreement in
July 1993, Sofo embarked on a course of conduct that, at least in
some of its manifestations, was alarming and harassing, as well as
repellent. Plaintiffs do not contend, however, as they made clear
at oral argument before us, that the Kramer defendants had any
knowledge or notice prior to the making of that agreement that Sofo
had engaged in or would engage in such conduct. Sofo had purchased
his home on the adjoining property in 1987, and he lived at that
location with his family until April 1998.
On or about October 15, 1993, construction began on
plaintiffs' home with the pouring of footings and the foundation.
Sofo thereafter communicated with the Kramer defendants, various
Marlboro Township officials, and the Marlboro Township Mayor
regarding the construction of plaintiffs' home. For example, on
October 20, 1993, Sofo sent a letter to Linda Sansone at the Office
of the Mayor, which purportedly confirmed the details of a phone
conversation Sofo had had with Ms. Sansone in which he had
expressed his dismay over the construction taking place adjacent to
his property. On October 25, 1993, Sofo sent a letter directed to
the Office of the Mayor stating his concern about a "loophole" in
the zoning code and his continued objections regarding the
construction taking place on the site of plaintiffs' future home.
Sofo stated that he was unhappy with the height of the finished
foundation on the adjacent property. Sofo provided background
information to the mayor on his situation to help "bolster . . .
sympathy" for his "plight."
Sofo then sent a letter dated October 29, 1993, to Mayor
Matthew Scannapieco of Marlboro Township. He wrote in pertinent
part the following:
You should know that since this nightmare
began, on October 15, I have been so
distraught that I have yet to get a proper
night's sleep. Try as I might, I simply
cannot put aside the haunting acknowledgment
that I can do nothing,
seemingly to stop its
progression. I am all consumed with vengeful
thoughts, coupled with thoughts of moving;
including the notion of selling my home at a
loss, to the largest group of the most
loathsome bunch of excuses for human beings
that I can feasibly round up.
Thus far, all of my worst fears predicted and
projected in my earlier communications have
been confirmed. In fact, the sight of the
completed foundation is even more abhorrent
than I had imagined. Every time I step
outside my home, only to be hit in the face
with that monolithic abomination, I think of
starting up one of those bulldozers idly
laying around here, and demolishing the thing
myself.
* * *
I want you to afford me the consideration of
your personal response. I respectfully
request that you accept my invitation to call
upon me at my home, because
I want you to
personally see, with your own eyes, the source
of my grief. It is an opportunity to
demonstrate how much you genuinely care. If
nothing else, the consideration of a word or
two from you, may help quell the fire that now
burns within me.
Construction of plaintiffs' new home was stopped during late
October/early-November, for reasons that are disputed. In any
event, on or about November 2, 1993, Fred Mosesman, one of the
Kramer defendants, met with Sofo regarding Sofo's concerns about
the construction of plaintiffs' home. Mosesman offered to make
some cosmetic and architectural changes to plaintiffs' home, and
Sofo responded in a letter dated November 3, 1993, which stated:
I want you to know that I appreciate your
calling upon me yesterday, in response to my
objections to the newly constructed foundation
next to my home. Nevertheless, I remain
deeply disappointed by the fact that your
organization did not see fit to demonstrate
even the slightest inkling of willingness to
come forward in addressing my concerns until
such time as I had summoned the personal
support of Mr. Scannapieco. What you people
have demonstrated (and this goes for the
prospective homeowner also), is a blatant lack
of consideration and respect for me. And it
is indeed unfortunate that I should have to
have found it necessary to involve the
township administration in such a matter as
this, a situation that should have never have
been allowed to occur in the first place; in
order to gain your attention.
As I have indicated, despite your offering at
this time of some well-founded, constructive
possibilities, that may help somewhat in
making the "abominable monolith" more
aesthetically pleasing, there remain greater
concerns that cannot be so simply covered up
with cosmetic compromises.
Plaintiffs assert that the Kramer defendants never advised
them of defendant Sofo's November 3, 1993 letter, despite the fact
that defendant Sofo made reference to the "prospective homeowner."
The Kramer defendants agreed, before completion of plaintiffs'
house, to make certain architectural and cosmetic changes in the
construction of plaintiffs' home. They agreed, for instance, to
provide additional brickwork "to minimize the exposure of building
block" along the side of plaintiffs' home adjacent to Sofo's, to
plant pine trees on the border of the property between Sofo's home
and that of the plaintiffs, and to replace Sofo's driveway.
Plaintiffs maintain that before their closing they were never
informed by the Kramer defendants of their agreement with Sofo.
Construction of plaintiffs' new home was completed by June 1994.
The closing documents for plaintiffs' home were signed on June 3,
1994. On or about that date, plaintiffs moved into their new home.
On the day plaintiffs started to move into their new home, Sofo
delivered two envelopes to plaintiffs. Sofo had printed on one
envelope "Read 1st" and enclosed copies of the three letters that
he had sent to Kramer defendant Mosesman and the Marlboro Township
officials. Sofo had printed on the other envelope "Read last!"
That envelope contained a five-page letter dated June 2, 1994,
directed to "Neighbor." Within the first paragraph of the June 2,
1994 letter to plaintiffs, Sofo expressed his hatred for
plaintiffs, even though plaintiffs had never met Sofo. The letter
from Sofo, in addition to calling plaintiffs "loathsome creatures"
and "lowly scum," also stated:
You people have fired an eternal flame of
contempt that has burned within me throughout
all of these months. Now that you have
arrived, I want you to understand right out of
the starting-gate, in plain English, that I
hate you,
and your whole family.
Sofo proceeded in the letter, in language devoid of any
pretense of civility, to express his anger toward plaintiffs about
an incident that took place a week before he wrote the letter of
June 2. Sofo blamed plaintiffs for the problems surrounding the
opening of his pool. At the time of this alleged incident,
however, plaintiffs had not yet met Sofo, nor had they closed on or
moved into their new home. Sofo further stated:
Who the [F***] do you think you are you
[f***ing] piece of shit bitch? Who the [f***]
do you think you're playing with? I am laying
down the [f***ing]
LAW to you right here and
now, you [f***ing] fat-assed big-mouth, that
if I feel like draining
my [f***ing] pool, I
will drain
my [f***ing] pool, where and when I
so choose, and you are to understand that you
have not one stinking, [f***ing] syllable to
say about it.See footnote 11
Plaintiffs assert that these letters provided them for the
first time with details about what had taken place during the
construction of their house that the Kramer defendants failed to
tell them about, and that the letters brought to light the
potential inconsistencies in the Kramer defendants' explanations of
what had caused the delay in the construction of their home.
In the closing of the June 2, 1994 letter, Sofo stated:
You have provoked me
beyond anger now. I am
to the point where I am going to laugh in that
execrable face of yours, as I proceed from
here on in to make you regret that you ever
laid your vacant, pathetic eyes on that parcel
of land next door to me[.] For as much as
your entire being is mesmerized by your
current infatuation with that house, and for
all your abhorrent self-aggrandizement, you
have bought yourself a neighbor, the likes of
which you have never seen, and one who is
passionately committed to seeing to it that
the rest of you life here is made miserable;
that is of course when the mood should so
happen to strike. Welcome to the
neighborhood, and
[F***] YOU to you all!
This letter prompted plaintiffs to file a harassment complaint in
the Marlboro Township Municipal Court against defendant Sofo.
Sofo's troubling behavior continued toward plaintiffs in the
form of two disturbing letters dated January 6, 1996, and January
12, 1996. As a result of these letters, plaintiffs filed a four-
count complaint for harassment against Sofo on January 19, 1996, in
the Marlboro Township Municipal Court. Sofo then filed a number of
noise complaints against plaintiffs.
The torrent of abuse and harassment spewing from Sofo
continued, and plaintiffs remained subject to it until after a
trial on the harassment charges against Sofo and noise complaints
against plaintiffs. The trial was held on November 25, 1998. Sofo
was found guilty on the four counts of harassment under
N.J.S.A.
2C:33-4, and the ten noise complaints against plaintiffs were
dismissed as baseless. Sofo was placed on probation and ordered to
have no further contact with plaintiffs.
II
Plaintiffs' claims are tied to the agreement that they had
with the Kramer defendants, but those claims plainly sound in tort
rather than contract. Under the agreement, for example, plaintiffs
were obligated to purchase and to pay for the house and property,
and the Kramer defendants were obligated to construct the home and
to convey it and the property on which it was situated. There is
no contention that the parties failed to comply with the terms of
that agreement.
Thus, the alleged causes of action which plaintiffs would have
us recognize would arise, not out of the agreement, but at most as
an incident of the existence of the agreement. Plaintiffs
specifically eschewed during oral argument any effort to contend
that an ordinary homeowner who sells his or her house would be
liable on the theories they urge us to recognize as against
defendants. Instead, they claim that their alleged causes of
action should apply only to commercial developers and sellers of
real estate.
Regardless of that limitation, we find no basis for such
claims, either in the common law or in the statutory law that
plaintiffs cite, namely the New Jersey Consumer Fraud Act,
N.J.S.A.
56:8-1 to 106, and PREDFDA,
N.J.S.A. 45:22A-21 to 56.
We are aware that under cases such as
McDonald v. Mianecki,
79 N.J. 275, 299 (1979), certain duties of a builder/developer to a
home buyer to exercise reasonable care have been imposed.
McDonald, however, involved duties in relation to the construction
and habitability of a residence and is not authority for imposing
liability upon a builder/developer for factors outside his control,
namely neighborhood personalities.
We also see no basis for plaintiffs' claims in cases such as
J.S. v. R.T.H.,
155 N.J. 330, 337-39 (1998). In
J.S., the Court
considered the duty issue in a particular setting, that is whether
a wife who suspects or should suspect her husband of sexual abuse
of their neighbors' children had any duty of care to prevent such
abuse. The court concluded that the spouse had such a duty to take
reasonable steps to prevent or warn of the harm.
Id. at 352. This
is not such a case, and as grievous as must have been plaintiffs'
plight under Sofo's abuse, the Kramer defendants were not on notice
of the potentially harmful behavior to which plaintiffs would be
subjected in the same sense as was the wife in
J.S. Other
authorities relied on by plaintiff also fail to persuade us that a
viable cause of action exists against the Kramer defendants.
One of these cases is
Strawn v. Canuso,
140 N.J. 43 (1995).
Plaintiffs contend that the Supreme Court held in
Strawn that a
builder/developer of real estate had a duty not make any material
misrepresentations, and a duty to disclose to a buyer the existence
of circumstances and conditions which are unknown to the buyer,
which are known or should be known to the seller, and which, based
upon a reasonable foreseeability, might "materially affect the
value or desirability of the property."
Id. at 60. On the other
hand, the Kramer defendants maintain that the holding in
Strawn
limited the duty of a builder/developer to the disclosure of known
off-site conditions of the land, and that
Strawn specifically held
that sellers and brokers of real estate have no duty to investigate
and disclose the transient social conditions in the community that
arguably affect the value of the property.
Id. at 64. On the
issue of the duty to be imposed, the Court expressly stated that:
We do not hold that sellers and brokers have a
duty to investigate or disclose transient
social conditions in the community that
arguably affect the value of property. In the
absence of a purchaser communicating specific
needs, builders and brokers should not be held
to decide whether the changing nature of a
neighborhood, the presence of a group home, or
the existence of a school in decline are facts
material to the transaction. Rather, we root
in the land the duty to disclose off-site
conditions that are material to the
transaction.
Ibid.
In our view, it is clear under
Strawn that in this context the
Kramer defendants' duty as a builder/developer was limited to the
disclosure of known off-site conditions of the land, which Sofo was
not. He merely lived on a neighboring lot and manifested concerns
about how the new home being built was affecting his property.
Sofo falls under the category of a social condition which the
Kramer defendants were under no duty to disclose.
We also conclude that
Clohesy v. Food Circus Supermarkets,
Inc.,
149 N.J. 496 (1997), provides no authority for a sustainable
claim. In
Clohesy, the plaintiff died after being kidnapped from
the parking lot of a supermarket, and the issue was whether the
owner of the supermarket had a duty to provide security or warnings
in its parking lot to protect its customers.
Id. at 499-500. The
Court held that the supermarket had a duty because a number of
criminal incidents on its premises had occurred in the previous two
and a half years.
Id. at 503. In light of that record, the Court
concluded that it was foreseeable that a customer would be at
danger in an unsecured parking lot. In contrast, in this case,
there is no evidence that prior to the contract with plaintiffs,
the Kramer defendants were aware of any harm that could befall
plaintiffs. In short, unlike the situation in
Clohesy, the Kramer
defendants had no knowledge of any potential danger.
Plaintiffs further contend that New Jersey statutory law
supports a conclusion that they were owed a duty by the Kramer
defendants under both the New Jersey Consumer Fraud Act,
N.J.S.A.
56:8-1 to 56:8-106, and PREDFDA,
N.J.S.A. 45:22A-37, not to make
any material misrepresentations and to disclose to a prospective
buyer items that might materially affect the value or desirability
of the property, which are unknown to the buyer but are known or
should be known to the seller.
The Consumer Fraud Act does not apply because there is no
ascertainable loss arising from the subject transaction, especially
inasmuch as it appears that the value of plaintiffs' property has
increased. With respect to plaintiffs' assertion that through
PREDFDA the Kramer defendants had a duty to inform plaintiffs about
defendant Sofo, we note that PREDFDA provides in pertinent part:
Any developer disposing of real property
subject to this act, who shall violate any of
the provisions of section 6 hereof, or who in
disposing of such property makes an untrue
statement of material fact or omits a material
fact from any application for registration, or
amendment thereto, or from any public offering
statement, or who makes a misleading statement
with regard to such disposition, shall be
liable to the purchaser for double damages
suffered, and court costs expended, including
reasonable attorney's fees, unless in the case
of an untruth, omission, or misleading
statement such developer sustains the burden
of proving that the purchaser knew of the
untruth, omission or misleading statement, or
that he did not rely on such information, or
that the developer did not know and in the
exercise of reasonable care could not have
known of the untruth, omission, or misleading
statement.
[
N.J.S.A. 45:22A-37(a)]
The Kramer defendants did not engage in any fraudulent or
unlawful practice against plaintiffs, within the purview of
PREDFDA, by not informing plaintiffs of their encounters with
defendant Sofo, even assuming that this statute applies. They did
not misrepresent any material facts to the transaction before the
making of the contract. Moreover, as we have noted, plaintiffs
acknowledge that they make no claim that the Kramer defendants were
aware of potential problems with Sofo until the contract was
already signed.
Accordingly, plaintiffs' contention that the Kramer defendants
owed a clear legal duty to them has no basis in New Jersey common
law, or in the statutes on which they rely. Judge O'Hagan
correctly applied relevant law in concluding that the Kramer
defendants were entitled to summary judgment. We do not in the
least wish to minimize plaintiffs' distasteful and distressing
ordeal flowing from Sofo's conduct. But in the final analysis, as
a matter of law, even accepting as true all evidence that supports
plaintiffs' position, and according plaintiffs the benefit of all
legitimate inferences which can be deduced, the claims against the
Kramer defendants must fail because they owed and breached no duty
to plaintiffs with respect to Sofo and his conduct.
Affirmed.
Footnote: 1 1We have attempted to expurgate some of Sofo's language.