Lombardi v. Masso
25 A.3d 1080
| N.J. | 2011Background
- In 2003 MTG Properties, LLC bought and planned to renovate a Medford Lakes home at 121 Nokomis Trail for resale; Githens/Tara Construction did the renovations under MTG's arrangement.
- Lynch, MTG's real estate agent, brought the Nokomis Trail property to MTG's attention and acted as listing agent, earning commissions; her relationship to Masso and Githens was later disclosed as a potential conflict of interest.
- Lombardi offered $360,000 and closed on July 16, 2003; the house was far from complete; a handwritten punch-list addendum listed at least seventy repairs MTG promised to complete.
- Escrow of $10,000 was created to ensure completion; the escrow was to be released only upon completion and mutual consent, with MTG and buyer to approve any release; Lombardi later released escrow funds after Githens provided a security check that bounced.
- Plaintiff filed suit January 13, 2004 for breach of contract, fraud, misrepresentation, CFA violations, negligence, and conspiracy; defendants moved for summary judgment, which the trial court granted in part in December 2006, later reversed after a proof hearing.
- The trial court conducted a post-summary judgment proof hearing in 2007, concluded there were genuine issues of material fact, and vacated the summary judgment; Appellate Division reinstated the original summary judgment order without addressing merits; this Court granted certification to review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May court revisit interlocutory summary judgment after a proof hearing? | Judge acted within inherent power to reconsider for justice after new evidence. | Law of the case and interlocutory rule precluded reconsideration; abuse of process. | Trial court could revisit and vacate; inherent power to revise interlocutory orders in interests of justice. |
| Does law of the case bar reconsideration of an interlocutory order here? | Law of the case allows reconsideration where justice requires; interlocutory ruling not binding on merits. | Law of the case precludes revisiting earlier interlocutory determinations. | Law of the case did not bar reconsideration; proceedings allowed merits review. |
| Did real estate agents fall within the Consumer Fraud Act under the original record? | CFA applies to real estate professionals; misrepresentations and conflicts of interest occurred. | CFA did not apply to realtors at the time of the initial ruling; as-is contract environment limits liability. | CFA applied to defendants; misrepresentations and fiduciary issues present were triable. |
| Are there genuine issues of material fact on agency, breach, fraud, CFA, and conspiracy warranting trial? | Evidence shows coordinated plan to induce purchase with incomplete renovations and misrepresentations. | Record shows no agency or breach; contract terms as-is with limited liability post-settlement. | Record shows genuine issues of material fact requiring trial. |
Key Cases Cited
- Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520 (1995) (standard for determining when material facts preclude summary judgment)
- Johnson v. Cyklop Strapping Corp., 220 N.J. Super. 250 (App.Div.1987) (inherent power to revise interlocutory orders before final judgment)
- Marconi Wireless Telegraph Co. of Am. v. United States, 320 U.S. 1 (1943) (federal support for trial court revisiting interlocutory decisions)
- Zeiger v. Wilf, 333 N.J. Super. 258 (App.Div.2000) (interlocutory evidence issues; limits on using post-record evidence on appeal)
- City Check Cashing, Inc. v. Jul-Ame Constr. Co., 326 N.J. Super. 505 (App.Div.1999) (interlocutory review and flexibility of appellate procedure; later cited as City Check Cashing v. Mfrs. Hanover Trust Co., 166 N.J. 49 (2001))
- In re Estate of Stockdale, 196 N.J. 275 (2008) (law of the case concept and relitigation principles in estate matters)
- Ford v. Weisman, 188 N.J. Super. 614 (App.Div.1983) (interlocutory orders and justice-based revision authority)
