LISA BONANNO VS. COUNTY OF UNION NEW JERSEY (L-0928-19, UNION COUNTY AND STATEWIDE)
A-0214-19
| N.J. Super. Ct. App. Div. | Jul 12, 2021Background
- Bonanno worked for Union County beginning in 1988; from 1990–2007 she held positions the County classified as "temporary" because they were funded under federal job‑training programs.
- In 2017 Bonanno sought to purchase past service credit in the Public Employees' Retirement System (PERS); the Division of Pensions allowed purchase only for July 1, 2007–June 30, 2008, finding earlier years ineligible due to the County's "temporary" classification.
- Bonanno requested employment/payroll records from the County under OPRA; the County provided documents to her counsel.
- In March 2019 Bonanno filed a complaint in lieu of prerogative writs in Superior Court seeking a ministerial determination that the 1994–2007 period be treated as creditable service for PERS.
- The County moved to dismiss under R. 4:6-2(e), arguing Bonanno failed to exhaust administrative remedies (and raising a timeliness defense the court declined to discuss).
- The Law Division dismissed the complaint with prejudice; the Appellate Division affirmed dismissal for failure to exhaust administrative remedies but remanded to modify the dismissal to be without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Must Bonanno exhaust administrative remedies before filing an action in lieu of prerogative writs? | Bonanno proceeded in Superior Court asserting a ministerial duty and sought judicial relief without exhausting agency review. | County argued administrative review was available and mandatory under R. 4:69-5. | Court held exhaustion is required; matter belongs first to the administrative agency. |
| Is the Law Division the proper forum for resolution of the employment/pension classification dispute? | Bonanno sought a court order deeming the period creditable—i.e., judicial relief now. | County argued the dispute is for the pension/administrative agency to adjudicate and develop the record. | Court agreed the administrative forum is the appropriate first forum; Superior Court review is premature. |
| Was dismissal with prejudice appropriate for failure to exhaust? | Bonanno contended she should be allowed to proceed in court. | County did not challenge that dismissal should be without or with prejudice. | Court held dismissal for failure to exhaust is procedural and ordinarily should be without prejudice; remanded to change dismissal to without prejudice. |
Key Cases Cited
- Dimitrakopoulos v. Borrus, Goldin, Foley, Vignuolo, Hyman and Stahl, P.C., 237 N.J. 91 (2019) (standard of review for Rule 4:6-2(e) motions is de novo)
- Printing Mart-Morristown v. Sharp Elecs. Corp., 116 N.J. 739 (1989) (court examines legal sufficiency of complaint's allegations on a motion to dismiss)
- Brunetti v. New Milford, 68 N.J. 576 (1975) (strong presumption favoring exhaustion of administrative remedies)
- Atlantic City v. Laezza, 80 N.J. 255 (1979) (articulates goals and purposes of exhaustion doctrine)
- Alan J. Cornblatt, P.A. v. Barow, 153 N.J. 218 (1998) (distinguishes dismissals on the merits from procedural dismissals and their effect on prejudice)
- Garrow v. Elizabeth Gen. Hosp. & Dispensary, 79 N.J. 549 (1979) (identifies limited exceptions to the exhaustion requirement)
