SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-0702-01T3
WEST VIRGINIA STEEL CORP.,
Plaintiff-Appellant,
v.
SPARTA STEEL CORPORATION;
LESTER SENIOR HOUSING JEWISH
COMMUNITY CENTER; COUNTY OF
PASSAIC,
Defendants-Respondents,
and
GREAT ATLANTIC & PACIFIC TEA COMPANY;
SPORTS AUTHORITY, INC.; MORRIS AND
MICHAEL KAPLAN; MEADOW PARK
ASSOCIATES; SISTERS OF ST. DOMINICK;
ORANGE COUNTY, NEW YORK; ESSEX COUNTY,
NEW JERSEY; BLOOMFIELD COLLEGE AND
SEMINARY; S.M.S., INC.; TRUSTEES OF
RUTGERS UNIVERSITY; JFK MEDICAL
CENTER FOUNDATION, INC.; SUTTON PLAZA
LTD; WAYNE GENERAL HOSPITAL; DELRICK
CONSTRUCTION CO., INC.; PRISMATIC
DEVELOPMENT CORP., AND ABC CORP. 1-20
AND JOHN DOES 1-20,
Defendants.
___________________________________________________________
Argued December 9, 2002 - Decided January 7, 2003
Before Judges Petrella, Braithwaite and Parker.
On appeal from Superior Court of New Jersey,
Law Division, Bergen County, Docket Number
L-8619-00.
Paul S. Doherty, III, argued the cause for
appellant (Hartmann Doherty, attorneys; Mr.
Doherty, of counsel and on the brief).
Cheryl H. Burstein argued the cause for
respondents Sparta Steel Corporation and
Lester Senior Housing Jewish Community
Center (Mandelbaum, Salsburg, Gold, Lazris,
Discenza & Steinberg, attorneys; Ms. Burstein
and Richard M. Salsburg, of counsel and on the
brief).
Michael H. Glovin, Assistant County Counsel,
argued the cause for respondent County of
Passaic (William J. Pascrell, III, County
Counsel, attorney; Mr. Glovin, of counsel
and on the brief).
Cole, Schotz, Meisel, Forman & Leonard, attorneys
for respondent JFK Medical Center Foundation,
have not filed a brief.
Steve Mannion, Essex County Counsel, attorney for
defendant County of Essex, has not filed a brief).
Purcell, Ries, Shannon, Mulcahy & O'Neill, attorneys
for defendant SMS, Inc., have not filed a brief.
The opinion of the court was delivered by
PARKER, J.A.D.
This appeal arises out of plaintiff's attempt to enforce
construction and mechanic's liens against three defendants.
Plaintiff, West Virginia Steel Corp. (WVS), fabricates and
furnishes structural steel products for use in construction
projects. Defendant, Sparta Steel Corp. (Sparta), served as an
agent and distributor for WVS products and sold them to the
remaining defendants for construction projects in New York and New
Jersey. In its complaint, WVS alleged that Sparta owed
approximately $1.78 million to WVS for products sold to Sparta,
which, in turn, distributed them to the remaining defendants.
WVS filed its complaint in July 2000 in Bergen County Superior
Court, alleging breach of contract, unjust enrichment and quantum
meruit claims against Sparta and nineteen project owners in nine
New Jersey counties and Orange County, New York. None of the
defendants were located in Bergen County. In Counts 59, 60 and 61
of the complaint, WVS asserted lien claims against Lester Housing
Jewish Community Center (Lester) (Count 59), and JFK Medical Center
Foundation, Inc. (JFK) (Count 60) under the New Jersey Construction
Lien Law, N.J.S.A. 2A:44A-1 to 38; and against Passaic County under
the Municipal Mechanic's Lien Law, N.J.S.A. 2A:44-125 to 142 (Count
61). It is the dismissal of those three counts that WVS appeals. We
affirm.
In December 2000, Sparta filed a motion to dismiss for failure
to state a claim and WVS cross-moved for leave to file an amended
complaint. The motion judge dismissed with prejudice the lien and
common law claims against the project owners for the reasons set
forth in a written opinion dated March 30, 2001. The judge granted
WVS' motion to amend its complaint on the condition that plaintiff
could "not include in the amended complaint, any counts that were
dismissed with prejudice .... "
On April 30, 2001, WVS filed a motion for reconsideration. In
a written opinion dated October 25, 2001, the motion judge
clarified his previous order indicating that WVS' claims against
Sparta were dismissed without prejudice. WVS subsequently filed a
complaint against Sparta in Sussex County Superior Court, and that
matter is still pending.
In this appeal, WVS argues: (1) the trial court should have
permitted it to assert all of its claims in one county; (2) the
trial court should have transferred the lien claims to the
appropriate venues; and (3) the trial court should have dismissed
the complaints against Lester, JFK and Passaic County without
prejudice.
In its first point, WVS claims that the motion judge erred in
dismissing counts 59, 60 and 61 which sought to enforce liens
against Lester located in Morris County, JFK located in Middlesex
County, and Passaic County for the Passaic County Community College
project. WVS acknowledges that it improperly filed suit in Bergen
County to enforce liens against properties located in other
counties. Nevertheless, relying on State Dep't of Envtl. Prot. v.
Middlesex Cty. Freeholders Bd.,
206 N.J. Super. 414, 412 (Ch. Div.
1985) aff'd, 208, N.J. Super. 342 (App. Div. 1986), WVS maintains
that the "venue rules should have been relaxed to promote judicial
economy and prevent the 'fragmentation of litigation.'" WVS further
argues that the Supreme Court's decision in Thomas Group, Inc. v.
Wharton Sr. Housing,Inc.,
163 N.J. 507, 517-18 (2000), requires us
to construe the lien law liberally to avoid dismissal of its
claims. Alternatively, WVS argues that if dismissal was appropriate
under the lien laws, it should have been without prejudice so that
WVS could file separate actions to enforce its lien claims in the
counties where each of the projects was located. We disagree.
The Construction Lien Law is clear and unambiguous in its
requirements. N.J.S.A. 2A:44A-14a provides:
A claimant filing a lien claim shall forfeit
all rights to enforce the lien, and shall
immediately discharge the lien of record, if
the claimant fails to bring an action in the
Superior Court, in the county in which the
real property is situated, to establish the
lien claim:
(1) Within one year of the date of the
last provision of work ....
[Emphasis added.]
In Thomas Group, the Court addressed the dismissal of a lien
holder's prematurely filed complaint to enforce a construction
lien. There, the lien holder had a contract relationship with the
owner. The Court balanced the competing interests of the contractor
who "performed substantially all of its work [and] seeks the
protection of its statutory lien claim and superiority" over junior
claimants, against "the owner's interest in not being compelled to
pay the contractor until all of the bargained for prerequisites to
payment are satisfied." Id. at 518. The Court held that both
interests could be fairly accommodated by "stay[ing] ... [the]
proceeding [rather than dismissing the complaint] until the
arbitrators determined the amount owing under the contract." Id. at
521-22. Moreover, in construing the applicable statute, N.J.S.A.
2A:44A-3, the Court found that certain language not defined
thereinSee footnote 11 was ambiguous, and determined that in the absence of
clarity and definition, the language "must be read sensibly and
consistent with the law's overall intent to permit contractors to
file liens and thus protect the value of the work they have
provided." Id. at 517.
The case before us, however, is very different from Thomas
Group. Here, WVS did not have a written contract with the parties
against whom they filed the liens -- a fatal flaw that we will
discuss further. Moreover, the language in the applicable
provision, N.J.S.A. 2A:44A-14a, is clear, unambiguous and
mandatory: "[a] claimant ... shall forfeit all rights to enforce
the lien ... if the claimant fails to bring an action in the
Superior Court, in the county in which the real property is
situated .... " (Emphasis added.)
WVS argues that because this is a "complex multi-party" case,
the venue provision in the statute should be relaxed in the
interests of judicial economy. We disagree with plaintiff's
characterization of the case. From the record before us, it is
apparent that each claim is separate and distinct from the others
and that it would, in fact, unnecessarily complicate otherwise
straightforward claims if they were litigated en mass.
There is no provision in the Construction Lien Law authorizing
relaxation of venue for a plaintiff's convenience. Moreover, even
if the complaint against Lester and JFK had been dismissed without
prejudice, the statutory time limit had expired and WVS would have
been out of time to file complaints in the appropriate counties.
Even more significantly, WVS did not meet the statutory
requirement that it have "an agreement ... in writing" with the
party against whom it was filing the lien. N.J.S.A. 2A:44A-2; Legge
Indus. v. Joseph Kushner Hebrew Acad.,
333 N.J. Super. 537, 559
(App. Div. 2000). In Gallo v. Sphere Constr. Corp.,
293 N.J. Super. 558, 562 (Ch. Div. 1996), cited with approval in Orefice v. ADR,
315 N.J. Super. 493, 498 (App. Div. 1998), the court held:
In order for a contractor, subcontractor or
supplier to be entitled to a lien, any work or
services performed, or material ... provided,
must have been done "pursuant to a contract."
"Contract" is expressly defined in the act as
"an agreement, or amendment thereto in
writing, evidencing the respective
responsibilities of the contracting parties
.... N.J.S.A. 2A:44-2.
The clear and unambiguous language of the statute requires a
written agreement between the parties in order to enforce a
construction lien. No such written agreement existed between WVS
and Lester or JFK. Consequently, there is no ground upon which WVS
could enforce the liens even if they were timely filed in the
correct counties. Legge, supra, 333 N.J. Super. at 559.
With respect to the claim against Passaic County, WVS alleged
that it had filed a Municipal Mechanic's Lien "on the property
known as Passaic County Community College .... in the amount of
$220,698." Initially, we note that actions against counties must be
filed in the county in which the cause of action arises. R. 4:3-
2(a)(2). Not only did WVS improperly file its claim in Bergen
County, it apparently failed to file the lien against the proper
party, since Passaic County is not the owner of the property on
which the Passaic County Community College was constructed. Liens
can only be placed against the property owner. Legge, supra, 333
N.J. Super. at 559. Consequently, WVS has no basis for enforcing a
lien against Passaic County.
WVS next argues that even if the motion judge properly
dismissed the lien claims on venue grounds, he should have
transferred those claims to the appropriate counties sua sponte.
This issue was not raised before the trial judge, however, and we
decline to consider it. Nieder v. Royal Indem. Ins. Co.,
62 N.J. 229, 234 (1973).
Affirmed.
Footnote: 1 1 The language at issue in Section 3 was the phrase "in accordance the contract." The Court interpreted it "to mean that a party must perform work under a contract to be entitled to a lien, but not to require literally that a party must satisfy all of the terms and conditions of a contract before it can file a lien [claim]." Thomas Group, supra, 163 N.J. at 517.