SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-4858-93T3
WELLS H. KEDDIE and the RUTGERS,
COUNCIL OF AAUP CHAPTERS,
Plaintiffs-Appellants/
Cross-Respondents,
v.
RUTGERS, THE STATE UNIVERSITY,
Defendant-Respondent/
Cross-Appellant.
_________________________________________
Argued December 13, 1995 - Decided January 4, 1996
Before Judges Shebell, Wallace and Newman.
On appeal from the Superior Court of New
Jersey, Law Division, Middlesex County.
Denise Reinhardt argued the cause for appellants/
cross-respondents (Reinhardt & Schachter, attorneys;
Ms. Reinhardt, of counsel, and on the brief; Nancy
Macirowski, on the brief).
John J. Peirano argued the cause for respondent/
cross-appellant (Carpenter, Bennett & Morrissey,
attorneys; Mr. Peirano, of counsel, and on the
brief; James P. Lidon, on the brief).
The opinion of the court was delivered by
SHEBELL, P.J.A.D.
This appeal is from a judgment of the Law Division in an
action in lieu of prerogative writ pursuant to R. 4:69-1.
Plaintiffs, Wells H. Keddie ("Keddie") and the Rutgers Council of
American Association of University Professors Chapters ("AAUP"),
contend that the defendant, Rutgers, The State University
("Rutgers"), denied them both their common law right of access to
certain information, and their statutory rights as conferred by
N.J.S.A. 47:1A-1 to 4, Right-to-Know Law, by refusing to provide
information they requested.
Keddie, a citizen of this State and a professor of Labor
Studies at Rutgers, is a former president of Rutgers AAUP. AAUP
is an unincorporated association, which represents for purposes
of collective negotiation certain faculty members and others
employed by Rutgers.
Rutgers "is the instrumentality of the State for the purpose
of operating the state university" of the State of New Jersey
pursuant to N.J.S.A. 18A:65-1 to 73, the "Rutgers, the state
university law." N.J.S.A. 18A:65-2. There are three major
campuses of Rutgers, located in Camden, Newark, and New
Brunswick. N.J.S.A. 18A:65-9 states:
This chapter, being deemed and hereby
declared necessary for the welfare of the
state and the people of New Jersey to provide
for the development of public higher
education in the state and thereby to
increase the efficiency of the public school
system of the state, shall be liberally
construed to effectuate the purposes and
intent thereof.
[emphasis added.]
Plaintiffs requested "public records" from Rutgers, by
letter from Keddie to Rutgers' President, Francis H. Lawrence on
September 23, 1992. Keddie requested access to the following
documents concerning the expenditure of university monies for
legal representation and the nature of that representation, in
matters related to labor relations, civil rights claims, and all
other employment areas:
1. Bills for legal services (or "attorneys'
fees statements);
2. IRS forms 1099 issued to law firms
(these have not been pursued any further
based upon defendant's assertion that
these forms do not exist);
3. Accounting, audits, and other financial
analyses of funds expended to pay legal
bills, together with attorneys' fees
statements, ("legal expense
information");
4. Submissions by Rutgers to courts,
agencies, arbitrators, and other forums
and opinions, orders, recommendations
and awards issued from such forums; and
5. The identity of any other documents that
may contain the information requested.
Keddie's letter, asserting that such documents were public
records, maintained:
disclosure is in the best tradition of the
public interest, so that the citizens of the
State of New Jersey may learn exactly how
Rutgers treats and regards its employees.
There is no countervailing rule of
confidentiality, nor is there any legitimate
interest in secrecy.
President Lawrence acknowledged receipt of Keddie's letter, and
informed him that the matter had been referred to Rutgers' legal
counsel.
Thereafter, University Counsel denied the entire request.
By letter dated October 16, 1992, University Counsel asserted
that the documents requested were either (a) available otherwise
without Rutgers having to forward them; (b) public records but
not required to be disclosed; or (c) privileged information which
was not otherwise required to be disclosed.
On November 30, 1992, plaintiffs filed their complaint
seeking access to public records held by Rutgers, pursuant to
N.J.S.A. 47:1A-2, and the common law. Rutgers filed an answer on
February 2, 1993, denying that it was subject to the Right-to-Know Law or common law disclosure of public records. On April
14, 1993, the parties submitted a joint pretrial memorandum that
stipulated the facts and set forth their respective legal and
factual contentions. A pretrial order was entered April 16,
1993.
Extensive discovery followed. In response to an
interrogatory, Rutgers provided plaintiffs with a list of all
employment related docketed matters which it has been involved in
for the last five years. Also in discovery, Rutgers' procedures
for maintaining legal expenses information were revealed, as
follows: At University Counsel's request, outside attorneys
submit their bills for legal services monthly; the bills are
reviewed by University Counsel, and forwarded to the controller's
office for payment. The controller's accounts payable unit
prepares a "bill head" setting forth the name and address of the
law firm, due date, date and amount of the bill. The bill head,
with the original outside attorney's bill attached, is forwarded
then for approval by an university accountant. After review, it
is returned to accounts payable and the bill data is entered into
an "accounts payable" database, maintained on microfiche for at
least 7 years. The paid legal bills are themselves archived and
kept in a "D.E. room" for seven years. Additionally, University
Counsel maintains copies of the bills for two years. The
university accountant, also, prepares a bi-annual summary of
legal expenses for University Counsel. This contains the dollar
amounts paid to particular law firms for legal expenses and brief
descriptions of the type of payment.
After conducting discovery, the parties cross-moved for
summary judgment. Plaintiffs in their motion sought access to
documents related to the expenditure of university funds for
legal representation in matters related to labor relations, civil
rights claims, and other employment related areas, specifically
to include, access to bill heads, attorney bills, data collected
about attorneys' fees for labor and employment matters, and
compilations of attorneys fees paid under authority of University
Counsel. Plaintiff also sought all pleadings, briefs,
affidavits, and other filings made with courts, agencies and
arbitral forums; and an award of costs and fees.
Rutgers, in its cross-motion, argued that it is not subject
to the Right-to-Know Law and that plaintiffs presented no genuine
issue of material fact. The motions were heard on January 26,
1994. The Law Division judge held:
(1) that defendant is covered by the
provisions of the New Jersey Right to Know
Act, (the "Act") N.J.S.A. 47:1A-1, et seq.;
(2) that none of the documents to which plaintiffs seek access are public records as
defined in the Act;
(3) that the attorneys' fee statements
sought by plaintiffs are not common law
public records;
(4) that the remainder of the documents
sought by plaintiffs are public records
within the common law definition; and
(5) that the public interests in
nondisclosure manifestly outweigh the
plaintiffs' interest in access to the
requested common law public records.
On March 31, 1994, an order embodying the judge's decision was
entered. It required that Rutgers supply plaintiffs periodically
with a list of ongoing labor and employment cases, pending in any
tribunal, in which defendant is a party by virtue of its status
as an employer, including name, docket number, place of venue and
the date the complaint was received by defendant. The judge
further ordered that defendant give notice to plaintiffs
periodically of employment cases it is involved in after the date
of the Order.
On appeal, plaintiffs challenge the trial court's rulings
numbered above as 2, 3, and 5, and Rutgers challenges rulings
numbered 1 and 4. Additionally, Rutgers challenges that portion
of the order requiring it to keep plaintiffs informed of all
legal matters which arise, their docket numbers, and places of
venue.
The New Jersey Right-to-Know Law states in pertinent part
that:
Except as otherwise provided, ..., all
records which are required by law to be made,
maintained or kept on file by any board,
body, agency, department, commission or
official of the State or of any political
subdivision thereof or by any public board,
body, commission or authority created
pursuant to law by the State or any of its
political subdivisions, or by any official
acting for or on behalf thereof (each of
which is hereinafter referred to as the
"custodian" thereof) shall, for the purposes
of this act, be deemed to be public records.
Every citizen of this State, during the
regular business hours maintained by the
custodian of any such records, shall have the
right to inspect such records. Every citizen
of this State shall also have the right,
during such regular business hours and under
the supervision of a representative of the
custodian, to copy such records ...
[N.J.S.A. 47:1A-2.]
Rutgers argues that it is an "instrumentality" of the State,
and not an entity that is subject to the Act. It points to
N.J.S.A. 18A:65-2, wherein Rutgers is referred to as the
"instrumentality of the state for the purpose of operating the
state university." [emphasis added]. Rutgers argues that
"[b]ecause the term `instrumentality' is not listed in N.J.S.A.
47:1A-2 among the entities covered by the Act, its plain
language, therefore, indicates that instrumentalities are not
covered." See Cohen v. UMDNJ,
240 N.J. Super. 188, 195 (Ch. Div.
1989). Moreover, argues Rutgers, "coverage of the University
under the Act would be flatly inconsistent with the Legislature's
expressed intention to maintain the University's independent
character."
Rutgers was not always the State University, but had enjoyed
the status of a private, non-profit educational corporation,
despite the fact that it was the land grant college of New
Jersey. Rutgers v. Piluso,
60 N.J. 142, 155 (1972). However, by
1956, the status of Rutgers had evolved to that of a hybrid
public body, classified as a "body corporate and politic," with
some, limited, private functions and control. See N.J.S.A.
18A:65-1 and 10; see also Rutgers v. Piluso, supra, 60 N.J. at
155-56.
The 1956 act structured a complex conglomeration of public
and private assets, governed by a "Board of Governors," with the
majority of its members State appointed, having full authority
and control over the conduct and operation of the university,
with a "Board of Trustees" controlling certain pre-1956 assets,
as well as private gifts and funding received thereafter.
Piluso, supra, 60 N.J. at 155-56; see N.J.S.A. 18A:65-25 and 26;
see also Trustees of Rutgers College in New Jersey v. Richman,
41 N.J. Super. 259 (Ch. Div. 1956) (citing a full history of Rutgers
since its inception in the 18th century). The Piluso court
observed:
The overall result of the legislative
contract therefore is an autonomous public
university -- not merely a contractual
relationship or an institution both public
and private at the same time.
[60 N.J. at 157.]
Thus, Rutgers has been regarded as a State body for purposes
of immunity from local land-use regulation, Piluso, supra, 60
N.J. at 158-59, and has been held immune from property taxation.
Rutgers v. Piscataway Township,
1 N.J. Tax. 164 (Tax. Ct. 1980).
Rutgers is also subject to the Public Employer-Employee Relations
Act. Rutgers Council of AAUP Chapters,
256 N.J. Super. 104 (App.
Div. 1991), aff'd
131 N.J. 118 (1992).
Further, Rutgers' Board of Governors complies with the
requirements of the Open Public Meetings Act ("Sunshine Law"),
N.J.S.A. 10:4-6 to 21, even in the absence of any court having so
ordered. [Procedures for Board of Governors Meetings, effective
September 15, 1993]. The Sunshine Law, states that:
Except as [otherwise provided], no public
body shall hold a meeting unless adequate
notice thereof has been provided to the
public.
[N.J.S.A. 10:4-9.]
The term "public body" is defined for purposes of the Sunshine
Law as:
a commission, authority, board, council,
committee or any other group of two or more
persons organized under the laws of this
State, and collectively empowered as a voting
body to perform a public governmental
function affecting the rights, duties,
obligations, privileges, benefits, or other
legal relations of any person, or
collectively authorized to spend public funds
including the Legislature, but does not mean
or include the judicial branch of the
government, any grand or petit jury, any
parole board or any agency or body acting in
a parole capacity ...
[N.J.S.A. 10:4-8.a.]
Noteworthy, is the fact that the term "instrumentality" is not
present in the definition of "public body."
Its unique character had made Rutgers a state body for some
purposes, while being considered autonomous for others. See In
re Exec. Com'n on Ethical Stand.,
116 N.J. 216, 223-24 (1989).
The University is capable of being sued and has the power to sue,
and thus, is not considered part of the State in regard to the
New Jersey Contract Liability Law. N.J.S.A. 59:13-1 to 10;
Frank Briscoe v. Rutgers,
130 N.J. Super. 493 (Law Div. 1974).
Rutgers is not considered an arm of the State within the meaning
of the Eleventh Amendment's suit immunity. Kovats v. Rutgers,
822 F.2d 1303 (3d Cir. 1987), aff'd sub. nom Rutgers Council of
AAUP v. Bloustein,
860 F.2d 1075 (1988); cert. den.
489 U.S. 1014,
109 S.Ct. 1126,
103 L.Ed.2d 188 (1989). Nor is it
considered an alter-ego of the State for purposes of civil rights
legislation, but rather is a "person" subject to action under
42 U.S.C.A.
§1983. Fuchila v. Layman,
109 N.J. 319, cert. denied,
488 U.S. 826,
109 S. Ct. 75,
102 L. Ed.2d 51 (1988). Further,
its faculty are not considered employees of the State for
purposes of conflict of interest laws. In re Exec. Com'n.,
supra, 116 N.J. at 227.
Therefore, it appears that whether or not a particular law
is applicable to Rutgers depends upon a consideration of both the
laws' general purpose, as well as the purposes of Rutgers law.
In re Exec. Com'n., supra, 116 N.J. at 221. The general purpose
of the Right-to-Know Law is to ensure that public records "be
readily accessible for examination, by the citizens of this
State, with certain exceptions, for the protection of the public
interest." N.J.S.A. 47:1A-1. The Rutgers law states that its
purpose is to continue the "public trust for higher education of
the people of the state of New Jersey," serving as the
"instrumentality of the state for purposes of operating the state
university." N.J.S.A. 18A:65-2.
The trial court in rejecting Rutgers' arguments, stated:
I think that you can't reasonably argue that
just because the word instrumentality was
used to describe Rutgers in another statute
and that word is not present here does not
mean that Rutgers is not or should not be
subject to this statute. The definition of
entities subject to the statute in N.J.S.A.
47:1A-2 is broad enough to encompass Rutgers
and I find and hold that Rutgers University
is within the scope of the New Jersey Right
to Know.
Rutgers notes that Temple University, which is defined by a
statute similar to Rutgers', is not covered by the Pennsylvania
Right-to-Know Law. Temple University has been held not to be an
agency of the State of Pennsylvania, and not so in relation to
that act. Mooney v. Bd. of Trustees of Temple Univ.,
292 A.2d 395 (Pa. 1972). However, we perceive that the Pennsylvania
statute is not as broad as ours. 65 P.S. §66.2. While our
statute refers to various different entities which are covered,
the Pennsylvania statute merely uses the term "agency." Id.
Rutgers clearly can fall within several of the categories other
than "agency" enumerated in N.J.S.A. 47:1A-2.
Any possible exceptions to coverage under the Right-to-Know
Act should be narrowly construed. South Jersey Pub. Co., Inc. v.
N.J. Expressway Auth.,
124 N.J. 478, 496 (1991). We are
satisfied that for purposes of the Right-To-Know Law, Rutgers is
a public body, and its Board of Governors is a "public board . .
. created pursuant to law by the State." See N.J.S.A. 47:1A-2.
We do not believe that this conclusion will interfere with the
independence of the academic institution that the Legislature
sought to preserve in enacting the Rutgers law anymore than
compliance with the Sunshine Law has so interfered. Rather, an
open disclosure policy under both the Right-To-Know Law and the
Sunshine Law would appear to be a proper and much sought after
goal of the academic community of such an institution.
Records which are subject to the Right-to-Know Law would
include those that are required to be made, maintained or kept on
file by Rutgers. N.J.S.A. 47:1A-2. Plaintiffs seek three
specific types of documents:
(1) Attorneys' fees statements with regard
to matters involving labor and employment;
(2) Rutgers' internally generated payment
information:
(a) "Billheads" or "vouchers"
authorizing payment of the bills;
(b) the semi-annual summary of legal
expenses generated by the controller's
office which contains information
regarding all open vendor (i.e., law
firm) accounts;
(c) the actual accounts payable
database kept by the university
accountant;
(3) Submissions to and rulings from courts,
agencies and arbitrations in all matters
concerning labor and employment which Rutgers
has been a party to for the last five years.
Plaintiffs point to the language contained in N.J.S.A. 18A:65-25(d), that "[a]ll accounts of the university shall be subject to audit by the State at any time." Plaintiffs maintain
that this provision requires the Board of Governors to be
prepared for audits of all its accounts at any time, and that it
must, therefore, maintain records of monies paid for specific
accounts.
If a document is a Right-to-Know public record, then New
Jersey citizens have the right to inspect it. Techniscan v.
Passaic Valley Water,
113 N.J. 233, 236 (1988); McClain v.
College Hosp.,
99 N.J. 346, 354 (1985). The Right-to-Know Law
has no standing requirement other than citizenship of the State
and there is no need to make a showing of interest to exercise
rights under the Right-to-Know Law. Higg-A-Rella, Inc. v. County
of Essex,
141 N.J. 35, 43 (1995).
The definition of a public record for purposes of the
Right-to-Know Law is, however, narrower than the common law
definition. Ibid. A Right-to-Know public record is one that is
"required by law to be made, maintained or kept on file by any"
agency or body of the State or any of its subdivisions. Ibid.,
(citing Atlantic City Convention Center Auth. v. South Jersey
Publishing Co., Inc.,
135 N.J. 53 (1994)). Our Supreme Court has
stated clearly its inability to approve of any expansion of the
plain wording of the definition of public record under the Act.
Nero v. Hyland,
76 N.J. 213, 221 (1978).
In Atlantic City Convention Center, supra, 135 N.J. at 64-65, the Court held that while meeting minutes were statutory
public records required to be made and maintained, the audio
taped recordings of those same meetings were not public records,
and were not subject to disclosure under the Right-to-Know Law.
See also North Jersey Newspapers Co. v. Passaic County Bd. of
Chosen Freeholders,
127 N.J. 9 (1992) (elected body's phone bills
not Right-to-Know records as not required to keep records of
parties called); South Jersey Publishing Co., Inc. v. New Jersey
Expressway Auth.,
124 N.J. 478 (1991) (memo of understanding from
executive meeting about employee's termination not Right-to-Know
document as not required to be kept); Nero v. Hyland, supra,
76 N.J. 213 (character investigations ordered by governor in
contemplation of nomination not Right-to-Know documents as not
required to be made, maintained, or kept).
We have held that data pertaining to the aggregate amount of
health benefits paid to a local school board's employees under
the State health benefits plan was available as "public records"
under the Right-to-Know Law, because the information reflecting
the fiscal transaction, kept under a computerized record-keeping
system, was necessary in order for the State Health Benefits
Commission to prepare its annual report as required by N.J.S.A.
52:14-17.27. Bd. of Ed. of Newark v. N.J. Dept. of Treasury,
279 N.J. Super. 489, 500 (App. Div.), leave to appeal granted
142 N.J. 440 (1995). We stated:
It cannot seriously be argued that the
Commission can prepare such an annual report
without a compilation of the aggregate
premium payments made by each participating
employee as well as the corresponding
aggregate claim payments made by the
Commission through its administrators to
participating employees. Thus, the raw data
must be made, maintained or kept on file by
the Commission or its administrators.
[Id. at 500.]
We further observed that "[b]ecause the Commission and its
administrators choose, for purposes of administrative expediency,
to computerize the raw data, does not make the data any less a
public record." Id. at 501; see Asbury Park Press, Inc. v. State
of N.J., Dept. of Health,
233 N.J. Super. 375 (App. Div.),
certif. denied,
117 N.J. 646 (1989) (spread sheet prepared by a
hired consultant held not to be a statutory public record, but
underlying data used to prepare spreadsheet was public record).
Rutgers argues that no specific accounts, and no specific
records are required by N.J.S.A. 18A:65-25(d) to be made,
maintained, or kept on file. However, it would not appear that
Rutgers can realistically be prepared for an "audit by the State
at any time" without maintaining such records. See Bd. of Ed..
of Newark, supra, 279 N.J. Super. at 500. Such a situation would
render the audit valueless and, therefore, be contrary to good
accounting and audit practice.
In light of the statutory requirement that Rutgers must have
its accounts available for audit at any time, we conclude that
the underlying billing documents are public records under the
Right-to-Know Law. It appears that the bi-annual summaries of
legal expenses and the accounts payable databases contain the
very same information as the bill heads and payment vouchers.
Out of concern for any possibility of the later containing
information that might be the subject of attorney-client
confidentiality, as well as the cost of producing the documents,
it may be appropriate that only the summaries and accounts
information be disclosed, to avoid duplication. Such a means
would avoid the need for in camera review to protect
confidentiality. We, therefore, remand to the Law Division for
consideration of this less intrusive alternative.
We also reverse the order of the Law Division that Rutgers
provide periodic updates of matters that it is involved in, the
decisions in those matters when final, and other relevant
information regarding docket number, venue, and the like. This
was intended by the judge as a less intrusive means of providing
plaintiffs with the information sought under category 3 of
plaintiffs' request. By ordering Rutgers to turn over the
limited identification information, the trial judge relieved
Rutgers "of the obligation of supplying all of the pleadings
directly." [Emphasis Added.] We do not agree that Rutgers has
such an underlying "obligation" in these circumstances. The
documents that plaintiffs seek are documents already on file at
the various clerks' offices of the courts or tribunals involved.
We find no mandate that a public body provide documents to a
citizen, where that citizen already has a direct and readily
available means of access to those documents. In addition, our
Supreme Court has held that neither the common law, nor the
Right-to-Know Law, imposes a duty upon public officials to
produce new records or summaries of public records. Southern
N.J. Newspapers, Inc. v. Twp. of Mt. Laurel,
141 N.J. 56, 69
(1995). Indeed, what the order below requires would mandate
Rutgers to function as a recording service for labor and
employment litigation. The Right-To-Know Law never contemplated
such an obligation for a public body to perform.
Because of the above dispositions, we need not discuss the
plaintiffs' common-law right to inspect the documents. See South
Jersey Pub. v. N.J. Expressway, supra, 124 N.J. at 487-88;
Techniscan v. Passaic Valley Water, supra, 113 N.J. at 236-37;
Shuttleworth v. City of Camden,
258 N.J. Super. 573, 582 (App.
Div. 1992). We reverse and remand for further proceedings and
entry of an appropriate order in keeping with this opinion and
N.J.S.A. 47:1A-2.
Reversed and remanded.