59 A.3d 1085
N.J. Super. Ct. App. Div.2013Background
- Condemning Borough sought to acquire Malik’s property for redevelopment via eminent domain; LB, a lienholder, challenged the process after foreclosure interest arose.
- Borough offered Malik $270,000 on Nov. 11, 2011; Malik rejected on Nov. 23, 2011.
- Borough filed condemnation action Dec. 5, 2011; LB contended Borough should negotiate with LB as the true stake-holder.
- Trial court held Borough satisfied bona fide negotiations with Malik and had no duty to negotiate with LB.
- LB argued it stood in Malik’s shoes, and that the Borough violated N.J.S.A. 20:3-6 by excluding LB from negotiations.
- Court affirmed, holding Borough had no duty to negotiate with LB and Malik’s rejection was sufficient to proceed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Duty to negotiate with non-record owners | LB is the real stake-holder with control over sale | Only Malik, as title owner, may be negotiated with | LB not required to negotiate; only Malik |
| Adequacy of Malik’s rejection | Malik’s rejection was sufficient to trigger litigation | Rejection lacked concrete counteroffer with liens/satisfying encumbrances | Formal rejection and invitation to discuss encumbrances sufficed to permit suit |
| Appraisal sufficiency for bona fide offer | Sapio’s appraisal provided a reasonable basis | Appraisal-dustworthiness challenged; Weiner guidance followed | Appraisal adequate; Borough complied with bona fide offer requirements |
Key Cases Cited
- City of Atlantic City v. Cynwyd Invs., 148 N.J. 55 (N.J. 1997) (condemnee must hold title of record; negotiations with owner only)
- Discount City v. N.J. Dept. of Transportation, 205 N.J. 392 (N.J. 2011) (stakeholder analysis for lesser interests; negotiations with fee owner primary for fee taking)
- Carroll v. State, 123 N.J. 311 (N.J. 1991) (one-price offer adequate; good-faith negotiation must be meaningful)
- Weiner v. County of Morris, 222 N.J. Super. 560 (N.J. Super. Ct. App. Div. 1988) (prelitigation duty to negotiate where credible evidence of higher value)