J.A.S. GRANITE & TILE, L.L.C. VS. GRAND STONE & TILE, INC. (C-54-11, ESSEX COUNTY AND STATEWIDE)
A-2984-15T4
| N.J. Super. Ct. App. Div. | Jul 24, 2017Background
- J.A.S. Granite & Tile, LLC (plaintiff) agreed to bid at a receiver auction for building materials and then sell them to Grand Stone & Tile, Inc. (Grand Stone); Grand Stone provided an upfront $375,000 escrow payment and a promissory note secured by a purchase-money security agreement.
- Plaintiff bought the auction rights from the winning bidder (Perez) and sold the materials to Grand Stone; Grand Stone defaulted and plaintiff obtained a judgment against Grand Stone and individual guarantors.
- Plaintiff alleged Innovative Tile & Stone, Inc. and its owners (Beltra Sr. and Beltra Jr.) took possession of inventory (notably ceramic tile) covered by plaintiff’s security interest and sold it, asserting conversion and tortious-interference claims.
- Defendants claim Beltra Jr. paid the $375,000 to secure the ceramic-tile portion for Innovative, believed he owned that tile, and therefore lawfully sold it; defendants deny knowledge of plaintiff’s security interest or participation in the Grand Stone agreement.
- The parties submitted sharply conflicting evidence about who paid what, who owned the contested tile, and each party’s intent; the trial court denied defendants’ summary-judgment motion because credibility and intent were central and disputed.
- The Appellate Division affirmed, holding summary judgment inappropriate where material factual disputes hinge on credibility and state of mind.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether summary judgment should be granted on conversion and tortious-interference claims | J.A.S.: factual record shows Innovative wrongfully took and sold tile subject to plaintiff's security interest | Innovative: Beltra Jr. bought the tile (via his $375,000 payment) and legitimately owned/controlled it | Denied — genuine disputes of material fact (ownership, intent, state of mind) preclude summary judgment |
| Whether credibility determinations can be resolved on summary judgment | J.A.S.: documentary and testimonial evidence support its claims and raise triable issues | Innovative: lack of contrary documentation undermines plaintiff; defendants insist facts are undisputed | Denied — credibility cannot be decided on summary judgment; issues must go to factfinder |
| Whether defendants established entitlement to judgment as a matter of law | Innovative: absent proof of conversion, summary judgment should be granted | J.A.S.: evidence supports conversion and interference claims warranting trial | Denied — moving party’s right to judgment not so clear as to leave no room for controversy |
| Whether appellate review should disturb trial court’s denial | Innovative: trial court erred in refusing summary judgment | J.A.S.: trial court correctly applied summary-judgment standards | Affirmed — appellate court finds no basis to disturb trial court’s reasoned denial |
Key Cases Cited
- Polzo v. County of Essex, 209 N.J. 51 (discusses viewing evidence in light most favorable to non-moving party)
- Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520 (standard for summary-judgment review and credibility considerations)
- Bhagat v. Bharat A. Bhagat & Cranbury Hotels, LLC, 217 N.J. 22 (summary-judgment standard — identify genuine issues of material fact)
- Manahawkin Convalescent v. O'Neill, 217 N.J. 99 (evidence must be viewed in favor of non-moving party)
- Townsend v. Pierre, 221 N.J. 36 (rational factfinder standard for resolving disputed facts)
- Suarez v. E. Int'l Coll., 428 N.J. Super. 10 (trial court may not weigh credibility on summary judgment)
- DeWees v. RCN Corp., 380 N.J. Super. 511 (judge should not assess credibility or truth on summary judgment)
- Mandel v. UBS/PaineWebber, Inc., 373 N.J. Super. 55 (court should not determine preponderance on motion)
- Petersen v. Twp. of Raritan, 418 N.J. Super. 125 (summary judgment inappropriate where credibility governs outcome)
