Justia Environmental Law Opinion SummariesArticles Posted in Supreme Court of New Jersey
US Masters Residential Property (USA) Fund v. New Jersey Department of Environmental Protection
When a toxic disaster hits, claimants could seek relief in the form of assistance from the New Jersey Spill Fund by following promulgated claims procedures. In order to resolve disputes over denied Fund monies quickly and fairly, the Fund uses arbitrators and flexible procedures to allow claimants the opportunity to demonstrate that the denial constituted arbitrary and capricious action. Petitioner, US Masters Residential Property (USA) Fund, submitted a claim for Spill Fund monies for its multi-lot property located in Bayonne that was affected by storm floodwaters, which allegedly carried petroleum-based toxins. Neighboring properties also affected by the storm’s toxin-laden floodwaters were afforded Spill Fund relief. Following some back and forth with the Department of Environmental Protection (DEP), petitioner’s claim was denied. After petitioner filed an appeal, two years elapsed between the request for arbitration and the commencement of the arbitration proceeding. The results of the arbitration ended in favor of the Spill Fund, and payment remained denied. The New Jersey Supreme Court expressed "concerns" about the arbitration. "Although we are mindful of the deferential standard of review, flaws in the substantive reasoning of the arbitration decision as well as procedural fairness considerations undermine confidence in the outcome of this arbitration enough to persuade us, in the interest of fairness, to require that a new arbitration be conducted. Accordingly, we reverse and remand this claim for a new proceeding." View "US Masters Residential Property (USA) Fund v. New Jersey Department of Environmental Protection" on Justia Law
N.J. Highlands Coalition v. New Jersey Department of Environmental Protection .
The under review by the New Jersey Supreme Court affirmed several actions by the State Department of Environmental Protection (DEP) with regard to property in the Borough of Oakland that is subject to the Highlands Water Protection and Planning Act (Highlands Act), N.J.S.A. 13:20-1 to -35. N.J. The Supreme Court granted certiorari review only the determination that the property owner -- Bi-County Development Corporation (Bi-County) -- qualified for the exemption allowed under the Highlands Act for the construction of affordable housing projects, N.J.S.A. 13:20-28(a)(17) (Exemption 17). The issue required interpretation of Exemption 17’s language concerning expiration of its safe harbor. The Court agreed with the Appellate Division, and the DEP, that this project could proceed under Exemption 17 because its qualification had not expired. The Supreme Court affirmed the Appellate Division substantially for the reasons expressed in the published decision of the panel, adding only that affirmance was based solely on a plain language reading of the Highlands Act that did not incorporate the definition of “final approval” contained in the separate but related Municipal Land Use Law (MLUL), N.J.S.A. 40:55D-1 to -163. View "N.J. Highlands Coalition v. New Jersey Department of Environmental Protection ." on Justia Law
New Jersey v. Quaker Valley Farms, LLC
Quaker Valley Farms, LLC (Quaker Valley) owned approximately 120 acres of deed-restricted farmland in Hunterdon County, New Jersey. As part of New Jersey’s Farmland Preservation Program, the State purchased an easement on the property that prohibited any activity on the property that was detrimental to soil conservation, but permitted the construction of new buildings for agricultural purposes. Quaker Valley excavated and leveled twenty acres of the farm previously used for the production of crops, to erect hoop houses (temporary greenhouses) in which it would grow flowers. In the process, Quaker Valley destroyed the land’s prime quality soil. At issue before the New Jersey Supreme Court was whether Quaker Valley’s excavation activities violated its deed of easement and the Agriculture Retention and Development Act (ARDA). The Supreme Court determined Quaker Valley had the right to erect hoop houses, but did not have the authority to permanently damage a wide swath of premier quality soil in doing so. Accordingly, the judgment of the Appellate Division, which overturned the trial court’s grant of summary judgment in favor of the State Agriculture Development Committee, was reversed. “Those who own deed-restricted farmland must have well delineated guidelines that will permit them to make informed decisions about the permissible limits of their activities.” View "New Jersey v. Quaker Valley Farms, LLC" on Justia Law
Givaudan Fragrances Corp. v. Aetna Casualty & Surety Co.
Plaintiff Givaudan Fragrances Corporation (Fragrances) faced liability as a result of environmental contamination from a manufacturing site that a related corporate entity operated in a facility in Clifton. The issue this case presented for review involved Fragrances' effort to obtain insurance coverage for environmental claims brought by governmental entities in response to discharges of hazardous substances that occurred during the pertinent policy periods running through January 1, 1986. Fragrances claimed that the defendant insurance companies (defendants) wrote liability policies for Givaudan Corporation during those relevant years. Fragrances argued that it was entitled, either as an affiliate of Givaudan Corporation or by operation of an assignment of rights, to have the insurers provide it with coverage for that environmental liability. Defendants claimed that they insured Givaudan Corporation as their named insured, not Fragrances, and that any assignment to Fragrances was invalid because defendants did not consent to the assignment, as was required for a valid assignment according to the language of the insurance policies. Therefore, collectively, defendants refused to honor Fragrances' right to bring insurance contract claims against them. Fragrances filed its complaint in February 2009 seeking a declaratory judgment that it was entitled to coverage under the policies. In February 2010, while the declaratory judgment action was pending, Fragrances notified defendants that Givaudan Roure Flavors Corporation (corporate successor-in-interest to Givaudan Corporation) planned to assign its post-loss rights under the insurance policies to Fragrances. Defendants refused to consent to the assignment. Nevertheless, Flavors executed the assignment to Fragrances. Both sides moved for summary judgment. Because Fragrances was not acquired by Givaudan Corporation during the policy period, the trial court determined that it could not be an affiliated corporation covered under the policies. The court also determined that the assignment in this case was an assignment of policies, which could not be assigned. The court denied Fragrances' motion and granted defendants' cross-motion for summary judgment. The Appellate Division reversed and remanded, explaining that although the anti-assignment clauses in the occurrence policies at issue would prevent an insured from transferring a policy without the consent of the insurer, once a loss occurs, an insured s claim under a policy may be assigned without the insurer s consent.The Supreme Court affirmed, concluding that, once an insured loss has occurred, an anti-assignment clause in an occurrence policy may not provide a basis for an insurer s declination of coverage based on the insured's assignment of the right to invoke policy coverage for that loss. The assignment at issue in this case was a post-loss claim assignment and therefore the rule voiding application of anti-assignment clauses to such assignments applied. View "Givaudan Fragrances Corp. v. Aetna Casualty & Surety Co." on Justia Law