SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-2677-99T1
A-3257-99T1
NATIONAL TRANSFER, INC.,
Plaintiff-Appellant,
v.
NEW JERSEY DEPARTMENT OF
ENVIRONMENTAL PROTECTION,
Defendant-Respondent.
NEW JERSEY DEPARTMENT OF
ENVIRONMENTAL PROTECTION,
Petitioner-Respondent,
v.
NATIONAL TRANSFER, INC.,
Respondent-Appellant.
A-2677-99T1 Submitted: December 4, 2001
A-3257-99T1 Argued: December 4, 2001
Decided: February 6, 2002
Before Judges Pressler, Wefing and Lesemann.
A-2677-99T1 on appeal from the Superior Court
of New Jersey, Law Division, Mercer County,
Docket No. L-596-97.
Rich & Friedman, attorneys; Marc J. Friedman,
of counsel and on the brief).
John J. Farmer, Jr., Attorney General of New
Jersey, attorney for respondent New Jersey
Department of Environmental Protection (Andrea
M. Silkowitz, Assistant Attorney General, of
counsel; Regina H. Nugent, Deputy Attorney
General, on the brief).
A-3257-99T1 on appeal from a Final Decision of
the Commissioner of the Department of
Environmental Protection, OAL Docket Nos. ESW
10865-4 and ESW 11788-94.
Marc J. Friedman argued the cause for
appellant (Rich & Friedman, attorneys; Alan J.
Rich of counsel, Marc J. Friedman, on the
brief).
Susan J. Vercheak, Deputy Attorney General,
argued the cause for respondent State of New
Jersey Department of Environmental Protection
(John J. Farmer, Jr., Attorney General,
attorney; Andrea M. Silkowitz, Assistant
Attorney General, of counsel; Ms. Vercheak, on
the brief).
Paul Gallagher, Assistant County Counsel,
argued the cause for respondent County of
Bergen (Elizabeth E. Randall, County Counsel,
attorney; Barbara H. Parker, on the brief).
Gabriel M. Ambrosio, attorney for respondent
Borough of Lodi, relied on the briefs of co-
respondents.
The opinion of the court was delivered by
WEFING, J.A.D.
These two appeals involve related issues and the same parties;
we thus consolidate them for purposes of this opinion. In A-2677-
99 National Transfer Inc. (National) appeals from a final order
dismissing the complaint in lieu of prerogative writs it had filed
in the Superior Court, Law Division, against the New Jersey
Department of Environmental Protection (DEP). In A-3257-99,
National appeals from a Final Decision of the DEP finding that
National was operating a transfer facility in Lodi at substantially
in excess of its permitted capacity and assessing fines against
National of $1,100,000. We have carefully reviewed the records
presented in both appeals and have concluded that the
Commissioner's Final Decision should be affirmed in A-3257-99; we
have also concluded that the appeal in A-2677-99 should be
dismissed, for reasons we will set forth later in our opinion.
We turn first to A-3257-99, for that revolves around the
fundamental contested issue: whether National has, indeed, been
operating its transfer facility at a capacity beyond that which is
legally permitted by DEP. DEP maintains that when it initially
granted National a permit to operate a transfer facility in 1976,
it was conditioned upon National accepting no more than eighty tons
per day of solid waste. National, on the other hand, contends that
it was never informed until 1991 that DEP took the position that it
was restricted to eighty tons per day. It also contends that DEP
was fully aware from the time National commenced its operations
that it was accepting, separating, and transferring solid waste in
amounts substantially in excess of that limit and, in consequence,
should be estopped from enforcing it now.
Unfortunately, the matter has a complex background, both in
terms of its own factual and procedural development, and in terms
of the general subject matter of the appeal, involving as it does
the solid waste industry in New Jersey. Some of this background
must first be set forth in order to permit a proper analysis and
understanding of the issues.
The collection and disposal of solid waste in New Jersey has
been a closely regulated industry for years. We have long
recognized that "the activity of collecting and disposing of solid
waste is affected with a public interest. . . ." In re Application
of Saddle River,
71 N.J. 14, 21 (1976). For much of the time frame
encompassed by this appeal, DEP was engaged in a comprehensive
effort to make New Jersey self-sufficient in the disposal of solid
waste. Its efforts in this regard have been set forth in Borough
of Princeton v. Board of Chosen Freeholders of Mercer County,
333 N.J. Super. 310, 316-319 (App. Div. 2000) and Camden County Energy
Recovery Assoc. v. Dep't. of Env'l. Prot.,
320 N.J. Super. 59 (App.
Div. 1999), aff'd.
170 N.J. 246 (2001). Some of the actions to
which the parties point as evidence in this case were taken as a
result of that system, portions of which were struck down as
unconstitutional by the Court of Appeals for the Third Circuit in
Atlantic Coast Demolition & Recycling, Inc. v. Board of Chosen
Freeholders of Atlantic County,
112 F.3d 652, 668 (3d Cir. 1997),
amended,
135 F.3d 891 (3d Cir. 1998), cert. den.,
522 U.S. 966,
118 S. Ct. 412,
139 L. Ed.2d 316 (1997).
In 1975, National applied to DEP for permission to operate a
transfer facility at a site it owns on Main Street in Lodi. After
reviewing the initial submission, DEP requested further
information, including the facility's daily capacity. Fred
Holzman, an engineer working on the project on behalf of National,
responded thusly:
The narrative states solid waste to be in the
station 15-30 minutes with daily design
capacity of 230 cu. yds. The narrative does
not state that the compactor will be working
continuously; we are asking for a 230 cu. yd.
transfer station.
Several months thereafter, on June 23 1976, DEP issued the
requested permit, the face sheet of which contains the statement,
"It [permission to operate this transfer facility] is subject to
all regulations promulgated by this Department and the conditions
or limitations listed herein." The face sheet contains no
conditions or limitations nor is there any space on the face sheet
denominated for that purpose.
DEP asserts that the permit was a two-page document, the
second page of which contained various specifications, such as
delineating the types of waste which could be accepted at the
facility and which could not, and stated rules for the movement of
trucks and traffic entering and leaving the facility. In addition,
it contained the following language:
In accordance with the statement contained in
a letter dated February 2, 1976 from Mr. Fred
Holzman of Bayliss Parsells Engineering, this
facility is limited to receiving a maximum of
230 cubic yards (approximately 80 tons) of
approved solid waste in any one day.
National, however, contended that it never received this
second sheet, despite the fact that DEP mailed the permit to
National on three separate occasions, twice in 1976, and once in
1978. National thus asserted it was never aware of the 80 ton per
day limitation until 1991.
The 1991 communication from DEP to National was issued in
conjunction with efforts on the part of DEP to direct the flow of
solid waste in a manner that would achieve financial stability for
facilities constructed as part of DEP's efforts to reduce
utilization of out-of-state landfills. The resource recovery
facility that had been constructed in Essex County was not
generating sufficient income; the DEP issued an Emergency
Redirection Order on December 21, 1990 directing that a certain
portion of the solid waste generated and collected in Bergen County
be transported to Essex County. This order included solid waste
that would otherwise have been transmitted through National's Lodi
transfer station. In any event, it was immediately apparent that
National was delivering to Essex County far more than eighty tons
of solid waste per day.
On January 8, 1991, DEP advised National that the emergency
directive to utilize Essex County had not removed the eighty-ton-
per-day limit contained in its original permit. National insisted
that the letter of January 8 was the first notice it had ever
received that its transfer facility was subject to such a
restriction.
Eventually, in May 1994, DEP, after monitoring National's
operations for a period of time, issued an Administrative Order and
Notice of Civil Administrative Penalty Assessment based upon sixty-
five Notices of Violation for National having exceeding its
approved capacity and assessing penalties of $390,000. DEP
thereafter issued supplemental Notices of Violations, covering the
period March 31, 1994 through December 18, 1995. National disputed
the assessments, and the matter was transferred to the Office of
Administrative Law as a contested case.
While the matter was pending in the Office of Administrative
Law, the County of Bergen began a separate, summary proceeding in
the Chancery Division of Bergen County, in which it sought to have
penalties assessed against National for its disregard of its
maximum permissible capacity. Bergen County had conducted its own
investigation of National's operations, and its summary action was
based upon dates and incidents separate and independent from those
alleged by the DEP in its May 1994 order. DEP then was granted
leave to intervene in that summary action for the purpose of
transferring it to the Office of Administrative Law and
consolidating it with the proceeding pending there. Thereafter,
the Borough of Lodi also joined those proceedings.
After a period of discovery, DEP moved for a summary decision.
National opposed that motion, arguing that when and how it was
advised of the alleged eighty-ton-per-day limit was a contested
issue of fact, which could not be resolved on motion. The
Administrative Law Judge (ALJ) issued a comprehensive forty-page
opinion setting forth her reasons for concluding that the issue
could be handled by such a motion, as well as her reasons for
concluding that National was bound by the eighty ton limit. She
did, however, agree that National was entitled to a plenary hearing
on the amount of penalty to be assessed.
The question of penalty was heard in a hearing that took nine
days to conclude. Twelve witnesses testified, and sixty exhibits
were received in evidence. The ALJ then issued a second opinion,
more than twenty pages long, in which she explained her conclusion
that a total penalty of $1,100,000 should be assessed, $720,000 of
which was payable to DEP, the balance to Bergen County. Lodi had
also requested an award of penalties in its favor, but the ALJ
denied that request, saying there was no legal basis for such an
award. Thereafter, the Commissioner issued a twenty-five page
Final Decision affirming the decision of the ALJ. National has
appealed from that Final Decision.
On appeal, National contends the following: that summary
decision was inappropriate in this case because there was a
disputed question of fact; that DEP should be estopped from
enforcing the eighty ton limit; that the Commissioner did not have
jurisdiction to award penalties in favor of Bergen County; and the
amount of the penalties imposed are excessive. We reject those
contentions, and thus we affirm.
I
Both the ALJ and the Commissioner correctly recognized that
the question whether the matter could be decided on a motion for
summary decision had to be analyzed in accordance with the
principles set forth by the Supreme Court in Brill v. Guardian Life
Ins. Co. of Am.,
142 N.J. 520, 540 (1995) ("a determination whether
there exists a 'genuine issue' of material fact that precludes
summary judgement requires the motion judge to consider whether the
competent evidential materials presented, when viewed in the light
most favorable to the non-moving party, are sufficient to permit a
rational factfinder to resolve the alleged disputed issue in favor
of the non-moving party."). Not all disputed factual questions
necessarily preclude summary judgment; rather, they must be
"substantial" in nature. Brill, supra, 142 N.J. at 529.
We agree with the views of the ALJ and the Commissioner.
National cannot circumvent the eighty-ton-per-day limitation by
simply asserting it never received the second page of the permit.
The language on the face sheet, referring to the "limitations or
conditions listed herein," was sufficient to put National on notice
that its operations were subject to defined terms and conditions.
National had a duty to inquire further about the nature of the
"limitations or conditions" to which the face sheet referred, and
it could not blindly assume that none existed.
The nature of the solid waste National was permitted to
accept, as well as prohibited from accepting, was specified on the
second page of the permit, not the face sheet. Included among the
items National could not accept were hazardous waste containers,
junked autos, and tires. If we were to accept National's premise
in this case, that it was entitled to accept more than 80 tons per
day because it did not receive the second page, logic would require
concluding National could reasonably believe that, similarly, it
could accept solid waste of any type, with no restrictions of any
nature. In our judgment, to state the example demonstrates its
absurdity, particularly in the tightly regulated solid waste field
which existed at the time. If indeed National did not receive the
second page of the permit, it was obligated to inquire further as
to the particular "limitations or conditions" governing its
operation. Any other conclusion would place a facility which
attempted to turn a blind eye in a better position than one which
acted diligently and inquired of DEP. We should not foster such a
result.
II
We consider National's estoppel argument to be similarly
unavailing. We note, as did the ALJ, that estoppel should rarely
be invoked against a public entity. W.V. Pangborne & Co. v. N.J.
Dep't. of Trans.,
116 N.J. 543, 554 (1989). That is particularly
so when estoppel might work to interfere with essential
governmental functions. O'Malley v. Dep't. of Energy,
109 N.J. 309, 316 (1987). As we noted earlier, New Jersey has long
considered the regulation of the solid waste industry to be a
matter implicating questions of the public interest and welfare.
Saddle River, supra.
We have reviewed in detail National's factual assertions in
support of its estoppel argument. We are satisfied that the most
that could be said in favor of National is that, at certain points,
one bureau or program within DEP may not have been fully cognizant
of the actions and roles of other bureaus or programs. That falls
well short of justifying an estoppel, particularly in light of our
conclusion that National, if it did not receive the second page of
its permit, had a duty to inquire further.
III
We turn now to the question of the authority of the ALJ and,
in turn, the Commissioner, to assess penalties in favor of Bergen
County. National stresses that the jurisdiction of the Office of
Administrative Law is created by the Administrative Procedure Act,
under which a contested case is defined as a dispute with a state
agency. N.J.S.A. 52:14B-2(a)(b). It also notes that the statutory
references within the solid waste management statute to penalties
in favor of counties refer to actions in the Superior Court, not
the Office of Administrative Law. N.J.S.A. 13:1E-9.
While there is some surface appeal to National's argument, we
are satisfied that, in the context of this matter, the penalties
assessed in favor of Bergen County should remain in place. We note
that National has already received a plenary hearing on the
question of appropriate penalties, a hearing which took nine days
to complete. National presented a full case on the issue. It has
received the full measure of process to which it would be entitled.
We are unable to perceive what benefit might accrue if we were to
set aside the determination that National should pay a penalty of
$390,000 to Bergen County.
When Bergen County's claim was originally transferred to the
Office of Administrative Law, its order to show cause and complaint
were dismissed without prejudice. If we were to reverse the
penalty determination in favor of Bergen County, the County could
simply refile its complaint with the Superior Court and seek to
proceed in a summary manner, which could result in National
receiving less of a hearing than it has already had. And there
would be no reason why, in that further hearing, penalties of an
even greater amount could not be assessed against National. While
questions of jurisdiction are fundamental, and are not to be
resolved on a wholly pragmatic basis, neither should we adopt a
result that has no practical benefit to any party and could involve
substantial additional expense and delay.
We caution, however, that we reach this conclusion in the
context of this case only. We should not be understood as
sanctioning a wholesale transformation and enlargement of the
jurisdiction of the Office of Administrative Law.
IV
The final issue in A-3257-99 is National's contention that the
penalties assessed against it are excessive. We disagree entirely.
The ALJ set out in detail the calculation and methodology she
employed. It is clear that National operated this facility for a
significant period of time in disregard of its capacity limits.
Further, it is clear that National, once it was advised of DEP's
position, made a business judgment to proceed as it had in the
past. We recognize the limited scope of our review of such a
question. We are satisfied that the penalty assessments are
entirely appropriate and should be affirmed. R. 2:11-3(e)(1)(D).
V
We turn now to A-2677-99. National filed a complaint with the
Law Division in February 1997, in which it alleged that DEP had
issued to it a draft permit in January 1997 permitting it to
operate at an eighty-ton-per-day limit, despite the fact that DEP
recognized that its facility was physically capable of handling 350
tons per day. National sought an order in the nature of mandamus
to compel DEP to make a final decision approving its operation at
that higher level. In July 1997, DEP answered and counterclaimed,
alleging that National was responsible for certain regulatory
violations in connection with its operation of this facility. DEP
included among its affirmative defenses that the trial court lacked
subject matter jurisdiction.
R. 4:6-3 calls for the defense of lack of subject matter
jurisdiction to be raised before the trial court within ninety days
of the answer, obviously with an eye to the swift resolution of
such a fundamental question. Not until nearly two years after its
answer, however, did DEP finally file such a motion with the trial
court, arguing the matter belonged before this court under R. 2:2-
3(a)(2).
The trial court agreed that the substance of National's
complaint was a challenge to a final decision of the DEP which
properly should be brought before this court. The trial court
concluded that DEP had acted on National's application by issuing
a draft permit for 80 tons per day as opposed to the requested 350
tons per day. Ordinarily, the relief to be granted in such an
instance is the transfer of the complaint, pursuant to R. 1:13-4.
Mutschler v. Dep't of Envtl. Prot.,
337 N.J. Super. 1, 10 (App.
Div. 2001).
If a challenge to the action or inaction of a
state administrative agency is brought in a
trial court, that court has the responsibility
to transfer the matter to this court on the
motion of a party or "on its own initiative."
R. 1:13-4(a). If a trial court fails to
transfer a challenge to state agency action to
this court and instead decides the merits, we
may exercise our original jurisdiction on
appeal from the judgment and review the
underlying agency action as if the challenging
party had appealed directly to his court.
Here, however, the trial court dismissed the complaint with
prejudice. While the trial court may have technically erred in
doing so, it does not necessarily follow, however, that National
Transfer is entitled to substantive relief.
In December 1991, National filed an application to renew its
permit to operate its transfer facility. The renewal application
stated the capacity to be 350-tons-per day. National took the
position this was a routine renewal application, reflecting the
capacity at which it had been operating for some years. DEP,
however, took the position this was an application to operate at a
significantly increased capacity and, as such, required the
approval of Bergen County. In January 1997, DEP issued a draft
permit for eighty-tons-per-day because Bergen County had not yet
approved the increase. The purported object of the prerogative
writs complaint was to compel DEP to act upon the request for a
350-ton-per-day limit. As the trial court noted on dismissing
National's complaint, DEP had acted; its approval of an eighty-ton-
per-day capacity was a rejection of a 350-ton-per-day limit.
It is apparent from oral argument that there have been, while
this appeal was pending, several subsequent steps taken at the
county level. The pleadings and the briefs which were filed do not
at all reflect these subsequent developments. These ongoing
developments would appear to indicate that the matter is not ready
for review, at least in the present posture. We therefore dismiss
the appeal, without prejudice.
In summary, in A-3257-99 we affirm the Final Decision of the
Commissioner and dismiss A-2677-99 without prejudice.