DEWANE PARKER VS. ATLANTIC CITY BOARD OF EDUCATION Â ATLANTIC CITY BOARD OF EDUCATION VS. GARY ADAIRÂ (DC-4376-15 AND DC-6094-15, ATLANTIC COUNTY AND STATEWIDE)(CONSOLIDATED)
A-3472-15T3/A-3610-15T3
| N.J. Super. Ct. App. Div. | Nov 29, 2017Background
- During Hurricane Sandy, Atlantic City requested use of Board schools as emergency shelters; the Board agreed and the City paid the Board for shelter services.
- Board employees Dewane Parker (head of security/truancy) and Gary Adair (facilities supervisor) staffed and supervised the shelters while schools were closed; they tracked hours, submitted timesheets, and were paid by the Board ($13,999.59 to Parker; $3,174.32 to Adair).
- The New Jersey State Office of Fiscal Accountability and Compliance (OFAC) later concluded administrators were not entitled to overtime under their employment contracts and recommended recovery of overpayments.
- The Board adopted a corrective-action plan and sought reimbursement from administrators; three repaid, Parker refused and had accrued vacation pay offset after termination; the Board sued Adair for reimbursement.
- The trial judge granted summary judgment to Parker and Adair, finding their shelter work was outside their contractual duties (quasi-contract/quantum meruit) and that the Board would be unjustly enriched if it kept City funds and recouped payments from the employees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Parker/Adair were entitled to retain payments for shelter work | Parker/Adair: work was outside contractual duties; they expected pay and conferred benefit to Board/City, so quasi-contractual recovery applies | Board: OFAC report required recovery; employees not entitled to overtime under FLSA/MWL, so payments were improper | Held for Parker/Adair: work was extra-contractual; quantum meruit/unjust enrichment permitted retention |
| Whether the Board was compelled by law/regulation to recoup payments | Parker/Adair: OFAC report was advisory; no legal mandate requiring suits or offsets against employees | Board: N.J.A.C. 6A:23A-5.6/OFAC findings required adoption of corrective action and recovery from employees | Held for Parker/Adair: OFAC recommendation not a legal mandate; Board voluntarily pursued recoupment |
| Whether offsetting Parker’s accrued vacation pay without notice violated due process | Parker: unilateral offset deprived property without due process | Board: offset was authorized/corrective action after OFAC findings | Held for Parker: unilateral withholding deprived Parker without due process; summary judgment for Parker |
| Whether retaining both City payment and recouped employee funds would unjustly enrich the Board | Parker/Adair: Board was paid by City for shelter use and keeping both payments would unjustly enrich Board | Board: recovery was required to comply with OFAC/corrective plan; no unjust enrichment because payments were improper | Held for Parker/Adair: Board received benefit from employees and City; retention of both would unjustly enrich Board |
Key Cases Cited
- Davis v. Brickman Landscaping, Ltd., 219 N.J. 395 (summary judgment standard in New Jersey)
- Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520 (summary judgment and when evidence is one-sided)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment standards and burden on nonmoving party)
- Iliadis v. Wal-Mart Stores, Inc., 191 N.J. 88 (elements of unjust enrichment/quasi-contract)
- VRG Corp. v. GKN Realty Corp., 135 N.J. 539 (quasi-contractual recovery requires expectation of remuneration)