ROSALIE GREY,
Plaintiff-Respondent/
Cross-Appellant,
vs.
TRUMP CASTLE ASSOCIATES, L.P.
d/b/a TRUMP MARINA HOTEL
CASINO, L.P.,
Defendant-Appellant/
Cross-Respondent,
and
JOHN DEVINE and ELLEN FINLEY,
Defendants.
__________________________________
Argued: January 7, 2004 - Decided: March 17, 2004
Before Judges Cuff, Winkelstein and Lario.
On appeal from the Superior Court of New Jersey, Law Division, Atlantic County,
Docket No. L-1747-01.
Gerard W. Quinn argued the cause for appellant/cross-respondent (Cooper, Levenson, April, Niedelman &
Wagenheim, attorneys; Mr. Quinn, of counsel and on the brief).
Robert W. Rubinstein argued the cause for respondent/cross-appellant (Rothenberg & Rubinstein, attorneys; Mr.
Rubinstein, of counsel and on the brief; Kenneth R. Cutler, on the brief).
The opinion of the court was delivered by
CUFF, J.A.D.
The fundamental issue presented by this appeal is whether a party may seek
review of an interlocutory order once it submits to non-binding arbitration, does not
file a demand for a trial de novo, but seeks confirmation of the
arbitration award and entry of judgment. Resolution of this issue requires consideration of
the fundamental principles of appellate jurisdiction and the purposes of arbitration for certain
civil actions.
Following cross-motions by both plaintiff and defendant Trump Castle Associates, L.P. d/b/a Trump
Marina Hotel Casino, L.P. (Trump Castle) to confirm an arbitration award, a judgment
was entered confirming the award. Trump Castle appeals and seeks review of interlocutory
orders denying its motions to dismiss a count of the complaint. We hold
that Trump Castle is barred from pursuing an appeal after entry of a
judgment following arbitration, and dismiss the appeal.
On November 12, 2000, plaintiff Rosalie Grey was a passenger in a car
owned and operated by Joan Fazio. While they were stopped at a red
light, a vehicle driven by defendant John Devine and owned by defendant Ellen
Finley struck the rear of their vehicle twice. Plaintiff alleged that she was
injured in this accident and that defendant Devine was visibly intoxicated. On June
1, 2001, plaintiff filed a complaint against defendants Trump Castle, Devine, Finley, and
several fictitious establishments and persons. Plaintiff alleged that defendant Devine negligently operated the
vehicle while intoxicated, that defendant Finley negligently entrusted her vehicle to an intoxicated
driver, that the parking attendant at Trump Castle negligently provided defendant Devine with
the keys to the Finley vehicle, and that Trump Castle and other unnamed
and unknown establishments negligently served alcohol to a visibly intoxicated patron, defendant Devine.
At the conclusion of discovery, Trump Castle filed a motion to dismiss the
negligent entrustment claim. The motion was denied. Trump Castle filed a motion for
reconsideration, which was also denied. Its motion for partial summary judgment on the
"dram shop" claim was unopposed by plaintiff and granted. Then, Trump Castle filed
a second motion for reconsideration of the order denying its motion to dismiss
the negligent entrustment claim. This motion was also denied.
On November 14, 2002, the parties participated in non-binding arbitration pursuant to Rule
4:21A. The arbitrator awarded plaintiff $250,000 for her injuries and apportioned liability equally
between defendants Devine and Trump Castle. No party filed a demand for trial
de novo. Trump Castle filed a motion to confirm the arbitration award and
enter judgment against it in the amount of $125,000 plus pre-judgment interest; plaintiff
filed a cross-motion to confirm the award. By order dated January 10, 2003,
Judge Daryl F. Todd, Sr., confirmed the arbitration award and entered judgment in
favor of plaintiff and against Trump Castle in the amount of $125,000 plus
pre-judgment interest.
Trump Castle filed a notice of appeal, seeking review of the interlocutory orders
which addressed its motions to dismiss the negligent entrustment claim. It contends that
its motions to dismiss the negligent entrustment claim should have been granted and
that it is entitled to appeal from the final judgment as a matter
of right. Plaintiff argues that the appeal must be dismissed. In her cross-appeal,
she also contends that Trump Castle should be jointly and severally liable for
the entire arbitration award.
Rule 4:21A governs the arbitration of civil actions, such as the personal injury
action filed by plaintiff. Rule 4:21A implements one of five bills enacted in
1983 to revise this State's no-fault automobile insurance system. Hartsfield v. Fantini,
149 N.J. 611, 615 (1997); Pressler, Current N.J. Court Rules, comment 1 on R.
4:21A (2003). In particular, N.J.S.A. 39:6A-25 requires the mandatory arbitration of certain automobile
accident claims. Hartsfield, supra, 149 N.J. at 615. The purpose of the 1983
statutory revision of the handling of automobile personal injury claims was "'to establish
an informal system of settling tort claims arising out of automobile accidents in
an expeditious and least costly manner, and to ease the burden and congestion
of the State's courts.'" Ibid. (quoting N.J.S.A. 39:6A-24). While the system is designed
to promote efficiency and the conservation of judicial resources, it also preserves the
parties' right to a jury trial by providing for a trial de novo
for any party dissatisfied with the arbitration award. Id. at 616.
Rule 4:21A-6 governs the entry of judgment and trial de novo. According to
the rule, any party dissatisfied with the outcome of an arbitration proceeding may
file a demand for a trial de novo within thirty days of the
filing of the award. R. 4:21A-6(b)(1). If a demand has not been filed,
any party may move for confirmation of the award and entry of judgment.
R. 4:21A-6(b)(3). The decision and award of an arbitrator is not subject to
appeal. R. 4:21A-6(a).
We have not previously addressed whether a party may seek review of an
interlocutory ruling following confirmation of an arbitration award and entry of judgment. We
have, however, held that Rule 4:21A-6(a) bars review of an evidentiary ruling by
an arbitrator. Martinelli v. Farm-Rite, Inc.,
345 N.J. Super. 306, 313 (App. Div.
2001), certif. denied,
171 N.J. 338 (2002). Appellate review of an arbitrator's decision
frustrates the stated purposes of the arbitration process of efficiency and conservation of
judicial resources by eliminating the finality afforded to all parties when one or
both parties foregoes the right to a trial de novo. These purposes are
similarly frustrated by allowing review, following confirmation of that arbitration award, of an
interlocutory order entered prior to submission of the matter to arbitration.
Trump Castle insists that it does not seek review of the arbitrator's decision.
Rather, it contends that it seeks review only of the order denying its
motions to dismiss the negligent entrustment claim filed by plaintiff. It further contends
that once the judgment was entered, it was a final order, which entitled
it to appeal as of right. Its argument, however, ignores the role of
the judgment confirming an arbitration award in the arbitration and pre-trial process. Quite
simply, the judgment confirming an arbitration award is designed to preclude all further
proceedings in the action, including appellate review. Trump Castle's argument flies in the
face not only of the stated purpose of the arbitration process and the
explicit text of Rule 4:21A-6(a), but also fundamental appellate principles.
Rule 2:2-3(a)(1) bestows a right of appeal from final judgments of the trial
divisions of Superior Court. An appeal may only, however, be taken by a
party aggrieved by the judgment. Pressler, supra, comment 2 on R. 2:2-3. Furthermore,
the party that files a notice of appeal must be willing to forgo
the terms and benefits conferred on it by the judgment which it seeks
to appeal. In Magill v. Casel,
238 N.J. Super. 57 (App. Div. 1990),
we reminded litigants that:
A party may not seek appellate review of an adverse interlocutory order without
seeking relief from the outcome of the litigation as embodied in the judgment.
A litigant satisfied with the judgment cannot have an advisory appellate evaluation of an
alleged interlocutory order.
[Id. at 62.]
Certainly, Trump Castle is aggrieved in the sense that a judgment has been
entered against it. On the other hand, Trump Castle was the party who
initiated the confirmation process and sought reduction of the award to judgment. It
also desires to retain the result of the arbitration if it does not
succeed in upsetting the interlocutory ruling regarding the negligent entrustment claim. Stated differently,
having capped its exposure, Trump Castle now seeks to avoid any monetary exposure.
Such a strategy undermines the purposes of the arbitration process.
Trump Castle was not without recourse to review the allegedly erroneous ruling. It
could have filed a motion for leave to appeal. R. 2:2-4. It also
could have filed a demand for a trial de novo. R. 4:21A-6(c). Trump
Castle contends, however, that it is actually conserving judicial resources and promoting efficiency
by seeking confirmation of the award and then initiating the appellate process. A
trial, however, would have afforded it an opportunity to fully develop the facts
on which a resolution of the merits of the negligent entrustment claim would
depend. Furthermore, its strategy deprives the plaintiff and the judicial system of the
finality both expected when Trump Castle did not seek a trial de novo
and sought confirmation of the arbitration award.
In summary, we hold that, when a matter is submitted to arbitration pursuant
to Rule 4:21A, a party may preserve a right to seek appellate review
of an interlocutory order only by filing a demand for a trial de
novo. Once the award is confirmed and a judgment is entered, an appeal
from the award or any interlocutory order is barred. Therefore, the appeal filed
by Trump Castle is dismissed.
In its cross-appeal, plaintiff sought review of Judge Todd's equal allocation of the
judgment between Trump Castle and defendant Devine. She asserts that the issue should
have been decided pursuant to New York law, which requires joint and several
liability. At oral argument, plaintiff noted that her cross-appeal could be considered a
protective appeal. Due to our disposition of the appeal filed by Trump Castle,
a principle equally applicable to plaintiff's cross-appeal, we dismiss the cross-appeal.
*
Appeal dismissed.