STATE OF NEW JERSEY VS. JAMES A. STUARTÂ (13-09-0949, GLOUCESTER COUNTY AND STATEWIDE)
A-3262-15T4
| N.J. Super. Ct. App. Div. | Aug 3, 2017Background
- Mill Pointe Condominium Association obtained a Law Division judgment against unit owner Asad (Syed) Rizvi for $19,444.61 in unpaid common-expense assessments.
- Deutsche Bank, as trustee, filed a Chancery Division foreclosure on Rizvi's mortgage; the Association was a named defendant and filed a non-contesting answer.
- The condominium unit remained vacant; the Association moved in the Law Division for appointment of a rent receiver to lease the unit and apply rental proceeds to its judgment.
- The Law Division required service on the Bank; the Bank opposed, arguing a receiver/lease would interfere with foreclosure and effectively force it to act as landlord.
- The Law Division denied the Association's motion without prejudice and furnished limited reasons after remand for amplification; subsequently the Chancery Division entered final judgment of foreclosure in favor of the Bank and a sheriff's sale was forthcoming.
- The Appellate Division dismissed the appeal as moot (without prejudice to other collection remedies), concluding adjudication would have no practical effect given the foreclosure judgment and imminent sheriff's sale.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a condominium association may obtain appointment of a rent receiver under N.J.S.A. 2A:17-66 while a mortgage foreclosure is pending | Association: statute permits appointing a rent receiver to lease the vacant unit and apply rents to its judgment | Bank: appointing a receiver and leasing would interfere with foreclosure rights and force Bank to act as landlord | Not decided on merits — court declined to reach substantive issue because appeal became moot after foreclosure judgment |
| Whether the appeal should proceed despite foreclosure judgment and imminent sheriff's sale | Association: issues are significant and could warrant review | Bank: foreclosure judgment renders the appeal impractical and moot | Appeal dismissed as moot; practical effect of relief was negligible given foreclosure judgment |
| Whether remand to Law Division for further consideration was warranted | Association: remand could allow appointment before foreclosure sale | Bank: remand unnecessary because foreclosure rights take priority | Court declined to remand, noting no sensible justification given posture and foreclosure judgment |
| Whether the case presented an issue "capable of repetition, yet evading review" | Association: novel and recurring problem potentially fits the exception | Bank: did not concede exception applies | Court found the exception inapplicable here and therefore refused to decide the merits |
Key Cases Cited
- De Vesa v. Dorsey, 134 N.J. 420 (mootness doctrine; courts avoid cases where controversy no longer exists)
- Oxfeld v. N.J. State Bd. of Educ., 68 N.J. 301 (mootness principles)
- Silviera-Francisco v. Bd. of Educ., 224 N.J. 126 (finality and appellate jurisdiction considerations)
- Roe v. Wade, 410 U.S. 113 (exception for "capable of repetition, yet evading review")
- Finkel v. Twp. Comm. of Twp. of Hopewell, 434 N.J. Super. 303 (discussion of justiciability and mootness)
- N.Y. Susquehanna & W. Ry. Corp. v. State Dep't of Treasury, Div. of Taxation, 204 N.J. Super. 630 (practical-effect test for mootness)
