In the Matter of Protest of Sisbarro Towing & Recovery, LLC, Etc.
A-1978-23
| N.J. Super. Ct. App. Div. | Jun 30, 2025Background
- Sisbarro Towing & Recovery, LLC (Sisbarro) applied for prequalification to provide routine towing services in Zone 10 of the Garden State Parkway; the application process required compliance with detailed facility standards.
- The New Jersey Turnpike Authority (the Authority) inspected Sisbarro's garage facility and found deficiencies in storage capacity for vehicles, as well as issues with restroom accessibility for patrons.
- Sisbarro's prequalification application was denied due to "insufficient storage area" and "unsuitable access to restroom."
- Sisbarro protested the denial and participated in an informal hearing before a designated Authority official; the Authority's decision was upheld at the agency level and made final by its Executive Director.
- On appeal, Sisbarro argued both procedural (due process) and substantive grounds for reversal, claiming the Authority's process and decision were flawed.
- The Appellate Division reviewed the agency's denial, focusing on whether the decision was arbitrary, capricious, or unreasonable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Violation of Due Process in Prequalification | Authority relied on undisclosed evidence; improper notice of issues | No objection at hearing; procedures sufficient under rules | Not considered—raised for first time on appeal |
| Arbitrary/Capricious Denial: Storage Capacity | Facility could meet specs with shuffling; standard unreasonable | On inspection lot was full; requirements clear and justified | Not arbitrary/capricious; Authority affirmed |
| Arbitrary/Capricious Denial: Restroom Adequacy | Restrooms not inherently dangerous/inconvenient; enforcement arbitrary | Safety and convenience for patrons paramount; evidence supported | Not arbitrary/capricious; Authority affirmed |
| Use of Adjunct/Off-Site Storage Facilities | Second lot shows ability to free up required space | Only listed facility can be used for storage per specifications | Adjunct facility irrelevant under specification |
Key Cases Cited
- George Harms Constr. Co. v. N.J. Tpk. Auth., 137 N.J. 8 (1994) (sets standard for judicial review of agency bidding decisions: limited to constitutional, statutory, evidentiary, and reasonableness grounds)
- In re Distrib. of Liquid Assets upon Dissolution of Reg'l High Sch. Dist. No. 1, 168 N.J. 1 (2001) (courts defer to agency expertise in specialized matters)
- In re Hermann, 192 N.J. 19 (2007) (agency decisions upheld unless arbitrary, capricious, or unreasonable)
- Lavezzi v. State, 219 N.J. 163 (2014) (burden is on challenger to show agency action is arbitrary or capricious)