Plaintiffs-Appellants,
v.
RLR INVESTMENT, LLC, R&L CARRIERS,
GREENVEST, 206 ASSOCIATES and
NEW JERSEY DEPARTMENT OF ENVIRONMENTAL
PROTECTION,
Defendants-Respondents,
and
JAMES N. GRAY COMPANY,
Defendant.
______________________________________
Argued May 9, 2006 - Decided
Before Judges Skillman, Axelrad and Sabatino.
On appeal from Superior Court of New Jersey, Chancery Division, Burlington County, Docket
No. L-0050-04.
Robert M. Vreeland argued the cause for appellant.
Alfred R. Scerni, Jr. argued the cause for respondents RLR Investment, LLC, R&L
Carriers and Greenvest (Giovanna Lombardo, on the brief).
William A. Schnurr, Deputy Attorney General, argued the cause for respondent Department of
Environmental Protection (Zulima V. Farber, Attorney General, attorney; Michael Haas, Assistant Attorney General,
of counsel; Mr. Schnurr, on the brief).
The opinion of the court was delivered by
SKILLMAN, P.J.A.D.
The primary issue presented by this appeal is whether an applicant for a
wetlands permit who proposes to mitigate the adverse impact upon wetlands of a
development project on its property at an off-site location must give notice to
owners of property within 200 feet of the mitigation site. We conclude that
such notice is required if the proposed wetlands mitigation project involves the disturbance
of existing wetlands. This appeal also involves issues concerning the availability of injunctive
relief to parties who claim that a mitigation project has caused damage to
their property and the proper allocation of jurisdiction within the Superior Court over
claims against private parties joined in the same complaint as a challenge to
a final decision of a State administrative agency.
In 2001, a predecessor in title to defendants RLR Investment, LLC and R&L
Carriers (referred to collectively as R&L) applied to the Department of Environmental Protection
(DEP) for a freshwater wetlands permit to construct an access road to a
proposed trucking facility in Burlington Township. A wetlands permit was required because the
proposed road would pass through freshwater wetlands regulated under the Freshwater Wetlands Protection
Act (FWPA), N.J.S.A. 13:9B-1 to -30.
Because the proposed road would adversely impact wetlands, R&L was required to submit
a wetlands mitigation proposal. To satisfy this requirement, R&L proposed to create forested
wetlands and enhance existing agricultural wetlands on another property located in Springfield Township.
Plaintiffs own a 152-acre farm that abuts the property on which R&L proposed
to construct this mitigation project. However, plaintiffs were not given any notice of
R&L's application to the DEP for approval of the project.
On September 23, 2003, the DEP granted R&L's application for a wetlands permit
authorizing construction of the access road, subject to the condition that R&L mitigate
for the wetlands disturbance on this site through "creation of 1.197 acres of
forested wetlands at an off-site wetland mitigation project . . . conducted prior
to or concurrent with the construction of [the access road]." This permit was
subsequently amended to require creation of 2.394 acres rather than 1.197 acres of
forested wetlands on the mitigation site.
By a letter dated January 30, 2004, the DEP approved R&L's proposed wetlands
mitigation project for the Springfield Township site.
Plaintiffs first became aware of R&L's proposed wetlands mitigation project around the time
of this approval, when a person representing R&L called plaintiff Matthew Rinaldo. According
to Rinaldo, he then called the DEP and spoke to an official who
assured him that there were various unresolved issues regarding the mitigation project, which
he would have "plenty of opportunity to address" before the project went forward.
However, less than two months later, on March 15, 2004, workmen appeared on
the site with construction machinery, including a backhoe, bulldozer, roller and earth moving
dump trucks, and began construction of the project. On March 18, 2004, Rinaldo
sent a letter to the DEP objecting to the commencement of the mitigation
project, which he claims was ignored.
On April 5, 2004, plaintiffs brought this action in the Chancery Division, seeking
to enjoin continued construction of the mitigation project, a mandatory injunction requiring repair
and restoration of the damage R&L had already done to their property, and
money damages. Plaintiffs alleged that the workers constructing the project had built a
fifty-foot wide road extending the entire southern length of their property and, in
the course of building this road, trampled and crushed bushes, cut down and
thinned out trees, and elevated the ground with rocks and fill. Plaintiffs also
alleged that the workers drove construction machinery over their farmland, crushing and trampling
vegetation. They further alleged that the workers dug holes in the ground and
placed pink flags around a pond, the rear tree line and fields on
their property.
The complaint named not only RLR Investments and R&L Carriers as defendants, but
also James N. Gray Company and Greenvest, which were involved in the design,
planning and construction of the mitigation project, and the owner of the property,
206 Associates. The complaint asserted various tort claims against these defendants, including trespass,
intentional interference with property rights, nuisance, conversion of water supply and negligence. In
addition, the complaint joined the DEP as a defendant and sought a declaration
that the DEP's approvals of R&L's wetlands permit and mitigation project were invalid.
When plaintiffs filed their complaint, the trial court signed an order to show
cause that restrained defendants from entering plaintiffs' property, but denied plaintiffs' application to
restrain continued construction of the wetlands mitigation project on the 206 Associates property.
Plaintiffs' application for a preliminary injunction was not heard until more than three
months later, on July 14, 2004. By then, construction of the wetlands mitigation
project had been completed.
On the return date, the trial court continued the restraint barring R&L from
entering plaintiffs' property, but denied plaintiffs' application for preliminary injunctive relief in all
other respects. The court stated that plaintiffs had not presented evidence that the
wetlands mitigation project had caused or would cause damage to their property "for
which pecuniary damages are insufficient," and in any event, plaintiffs' application to enjoin
"continuation of the wetlands project appear[ed] to be moot" because the project had
been completed.
On that same date, the trial court also heard the DEP's motion to
dismiss plaintiffs' complaint because it challenged final decisions of a state administrative agency
over which the Appellate Division has exclusive jurisdiction. The trial court initially indicated
that it would transfer the counts of plaintiffs' complaint that challenged the DEP's
grant of the wetlands permit and mitigation project approval to this court and
the remaining counts to the Law Division. However, the trial court subsequently determined
that the entire case should be transferred to this court.
On appeal, plaintiffs argue that the trial court erred in denying their application
to enjoin continued construction of the wetlands mitigation project and in transferring jurisdiction
over their tort claims against the private defendants to this court. Plaintiffs also
argue that the DEP's approval of R&L's mitigation project must be reversed because
R&L failed to provide plaintiffs with notice of their application, as required by
the FWPA and the United States and New Jersey Constitutions.
We conclude that the trial court did not abuse its discretion in denying
plaintiffs' application for a preliminary injunction, but that plaintiffs are entitled to pursue
their claims for permanent injunctive relief at the conclusion of the case. We
also conclude that although the trial court properly transferred plaintiffs' challenge to the
freshwater wetlands permit and mitigation project approvals to this court, it erred in
transferring plaintiffs' tort claims against the private defendants. We further conclude that the
DEP's approval of R&L's mitigation project is invalid because R&L failed to give
plaintiffs the notice of the application required by the FWPA.
See footnote 1
(2) The drainage or disturbance of the water level or water table;
(3) The dumping, discharging or filling with any materials;
(4) The driving of pilings;
(5) The placing of obstructions;
(6) The destruction of plant life which would alter the character of a freshwater
wetland, including the cutting of trees;
[N.J.S.A. 13:9B-3.]
R&L's application for approval of its wetlands mitigation project clearly indicated that the
206 Associates site was an existing freshwater wetlands site. The September 9, 2003
mitigation proposal prepared for R&L by Greenvest describes the site as containing "modified
agricultural wetlands," "[f]orested wetlands" and "scrub-shrub emergent wetlands." Furthermore, R&L's mitigation proposal indicated
that even though its ultimate goal was to enhance and expand these wetlands,
its project necessarily would involve the "disturbance" of existing wetlands on the site.
In fact, the Greenvest report states that "[t]he total area of disturbance associated
with the access easement and construction of the proposed wetland mitigation project is
approximately 12 acres." In a letter dated July 30, 2003, the DEP also
commented on the possible adverse impact of R&L's mitigation proposal upon existing wetlands
on the site:
The existing forested wetlands adjacent to and down slope from the proposed mitigation
area may be vulnerable to hydrologic changes that might result from the lowering
of the current surface grade in the mitigation area. Please demonstrate that the
constructed wetland design will not adversely affect this adjacent wetland area.
Therefore, we conclude that R&L's mitigation proposal constituted a "regulated activity" within the
intent of N.J.S.A. 13:9B-3 and for this reason R&L was required under N.J.S.A.
13:9B-9(a)(2) to give notice to plaintiffs.
The DEP contends that its regulations implementing the FWPA do not require notice
of an application for approval of a mitigation project to be given to
owners of property within 200 feet of the site. However, N.J.A.C. 7:7A-2.1(a) requires
"[any] person proposing to engage in a regulated activity, as described at N.J.A.C.
7:7A-2.2, [to] first obtain a general permit authorization or an Individual freshwater wetlands
or open water fill permit[,]" which would require notice to be given to
property owners within 200 feet of that regulated activity, N.J.S.A. 13:9B-9(a)(2), and N.J.A.C.
7:7A-2.2 defines "regulated activity" even more broadly than N.J.S.A. 13:9B-3. In any event,
even if the DEP regulations could be read to exempt an applicant for
approval of a wetlands mitigation project involving disturbance of existing wetlands from the
requirement of giving notice to owners of property within 200 feet of the
site, those regulations would be inconsistent with N.J.S.A. 13:9B-3 and N.J.S.A. 13:9B-9(a)(2) and
therefore invalid. See In re Freshwater Wetlands Prot. Act Rules,
180 N.J. 478,
489-90 (2004).
The DEP also argues that plaintiffs were afforded an adequate opportunity to comment
upon R&L's mitigation proposal through their submissions to the trial court and that
the DEP's responses to those submissions indicate R&L's objections would not have changed
the DEP's decision. However, a submission to a court in the course of
litigation challenging a final agency decision is not a substitute for the opportunity
afforded by N.J.S.A. 13:9B-9(a)(2) to comment upon a proposed regulated activity before the
activity is authorized.
Furthermore, the comments attached to the certification of Virginia Kop'Kash, the Supervisor of
the DEP Wetlands Mitigation Unit, do not reflect a thorough and fair consideration
of plaintiffs' expert report. Kop'Kash's memorandum states in pertinent part:
On behalf of the Department, I completed a review of the report entitled
"Preliminary Environmental Impact Assessment of the Wetland Mitigation Project for Block 1
201 Lot 7, Springfield Township Burlington County New Jersey" prepared by Connolly Environmental, Inc.'s dated
April 14, 2004. In brief, there was no information presented in the report
that would cause the Department to change our approval of the wetland mitigation
project located on Block 1201, Lot 7 in the Township of Springfield, Burlington
County. . . .
. . . .
The Department has no information to conclude that the mitigation site will adversely
affect surface and groundwater resources that are necessary to sustain crops on the
Rinaldo Farm. During the review of the mitigation proposal the permittee submitted a
copy of a letter from the USDA Natural Resource Conservation Service dated 12-9-03
which stated they reviewed the wetland mitigation proposal and found that the proposal
is acceptable.
Even if this memorandum had been issued before the DEP's decision, the conclusionary
statements set forth therein do not constitute the kind of detailed fact-finding, supported
by the evidence, required to "inform[] . . . interested parties and any
reviewing tribunal of the basis on which [the DEP's] final decision was reached[.]"
In re Issuance of Permit to Ciba-Geigy Corp., supra, 120 N.J. at 172
(quoting In re Application of Howard Savings Inst., supra, 32 N.J. at 52).
Therefore, we reverse the DEP's final decision approving R&L's wetlands mitigation project and
remand to the DEP for reconsideration of the application in conformity with this
opinion.
Accordingly, we affirm the denial of plaintiffs' application for a preliminary injunction. We
sever plaintiffs' tort claims against the private defendants and remand those claims to
the Chancery Division. We reverse the DEP's approval of R&L's wetlands mitigation proposal
and remand to the DEP for reconsideration of the application on notice to
plaintiffs.
Footnote: 1
Because we conclude that plaintiffs were entitled to notice of R&L's wetlands
mitigation proposal under the FWPA, we have no need to address their argument
that such notice was required under the United States and New Jersey Constitutions.
Footnote: 2
Although plaintiffs' complaint could be read not only to seek judicial review of
the DEP's wetlands permit and mitigation approval decisions but also to assert claims
against the DEP under
42 U.S.C.A.
§1983 and the Tort Claims Act, N.J.S.A.
59:1-1 to -12.3, which would be cognizable in the Law Division, see D.J.
Miller & Assocs., Inc. v. State, Dep't of Treasury,
356 N.J. Super. 187,
191-93 (App. Div. 2002), plaintiffs indicated at oral argument before the trial court
that the only relief they seek against the DEP is the invalidation of
the wetlands permit and mitigation project approvals.
A-