Under the circumstances of this case, the answer to that question hinges on whether, in hosting the concert, the University was engaged in performing the educational objectives it was organized to promote and whether Green was "a direct recipient of those good works" when she attended the concert.
See
Ryan v. Holy Trinity Evangelical Lutheran Church
,
Upon review, we agree with the Appellate Division majority that Monmouth University's decision to host a musical concert open to the public -- an activity explicitly provided for under the "purposes" section of the University's certificate of incorporation -- served its educational goal. We reach that conclusion without regard to the performer, the genre, or the program of the concert. We decline to engage in subjective philosophical questions of whether all music is art or whether all art is educational. We also agree with the majority that, although Green was not a Monmouth University student, she was a beneficiary of its educational purpose under the language of the Charitable Immunity Act when she was injured. Monmouth University is therefore immune from Green's claims, and we affirm the judgment of the Appellate Division.
I.
A.
Defendant Monmouth University is a non-profit educational institution located in West Long Branch. In its certificate of incorporation, the University states that its "purposes" include:
To establish, maintain, and conduct an institution of learning for the purpose of promoting education ... for the instruction of students in the various branches of technological, professional, vocational, and general cultural education ....
To provide for the holding of meetings and events open to the public, including classes, conferences, lectures, forums, exhibitions, conventions, plays, motion pictures,concerts , and athletic contests, all calculated, directly or indirectly, to advance the cause of education and wholesome recreation. [ (emphases added).]
Plaintiff Frances Green is a resident of Long Branch in Monmouth County. On December 9, 2012, Green attended a concert at the University's Multipurpose Activity Center (MAC). The event license agreement described the concert as radio station "Thunder 106's Winter Thunderland: Martina McBride: The Joy of Christmas Tour." Martina McBride is a country music performer, and the concert at Monmouth University was one of sixteen concerts that McBride performed as a part of a tour. The other fifteen concerts were at venues located outside of New Jersey.
By way of background, the University entered into an exclusive booking agreement for the 2010-2012 period with Concerts East, Inc., which agreed to act as the University's "agent for live music entertainment services of artistic performers on behalf of [the University]" for shows at the MAC. Concerts East had the exclusive rights to book concerts for the University and was required to "adhere to the University's established policies and procedures, and be subject to the University's prior written approval."
Under the agreement, Concerts East had rights to proceeds derived from ticket sales, ticket rebates, and sponsorship revenues. In exchange, the University received a $ 10,000 rental fee for the use of its facility, half of a per-ticket charge called a "facility fee," and commissions on artist merchandise. Furthermore, the University had exclusive rights to proceeds accruing from concessions, its Beer Garden, and parking.
On March 7, 2012, Concerts East assigned its rights and obligations under the booking agreement to Thoroughbred Management, Inc. (TMI), a for-profit New Jersey corporation. Monmouth University and TMI entered into an Event License Agreement on December 5, 2012 that allowed TMI to use the MAC for the McBride concert. The University agreed to handle the over-the-counter advance ticket sales at the MAC box office, but TMI
Pursuant to the booking agreement, TMI paid a $ 10,000 rental fee. According to Maryann Nagy, Vice President of Student Life at Monmouth University, the intent of that fee was "to cover the cost of the set up of the facility, the breakdown, the police costs, [and] fire safety," among other components. In addition, guests were charged a "facility fee" of $ 3.00 per ticket, the proceeds of which were split evenly between the University and TMI. Ms. Nagy testified that the University did not expect to make money on its fee but instead hoped to cover its direct costs.
While attending the McBride concert, Green was climbing a set of stairs in an area that she alleges was poorly lit. As Green stepped onto what appeared to be a solid surface, her foot slipped down to the step below, causing her to fall forward. As she fell, her face struck the back of a seat in one of the rows adjacent to the stairs. Despite the fall, Green stayed to watch the concert. After the concert, she told a University police officer, Corporal Alfonso Acerra, what had happened. Officer Acerra walked to the location where Green fell and observed a rubber strip sticking out approximately two inches from the step. He later acknowledged in a deposition that the strip was a tripping hazard.
B.
Green filed a complaint against the University, alleging that she was a business invitee and the University breached its duty of care to her. Both parties moved for summary judgment. On December 1, 2015,
The court found that the University was "without dispute a non-profit educational institution organized for charitable purposes." The trial court thus determined that the dispositive issue in the case was whether the University was promoting its objectives and purposes at the time of Green's injury, and whether Green was a
Noting that the University's resolution states that the University's purposes include holding concerts for the general public to advance directly or indirectly the cause of education and wholesome recreation, the court determined that the McBride concert fell "squarely within those purposes." The court noted that although the concert may have been a commercial activity, it had a direct relationship to the University's stated goals of hosting concerts. The trial court thus distinguished the McBride concert from the YMCA's ski operation found not to fall within the organization's purposes in
Kasten v. YMCA
,
Green filed a timely appeal, and, in a split decision, the Appellate Division affirmed the trial court's determination.
Green v. Monmouth Univ.
,
The majority stressed the Legislature's instruction that, as remedial legislation, the Charitable Immunity Act " 'shall be liberally construed so as to afford immunity ... from liability as provided herein in furtherance of the public policy for the protection of nonprofit corporations' organized for educational purposes."
Turning to the University's certificate of incorporation, the majority noted that the McBride concert served the University's stated goal of presenting concerts for the general public and therefore qualified as promoting the objectives and purposes of the organization. The majority analogized this case to
Lax v. Princeton University
,
The majority also relied on the
Lax
court's conclusion that the "plaintiff was a direct 'beneficiary' of [Princeton's] educational and charitable endeavor when she was injured while attending one of the Chamber Symphony's concerts. The fact that she was required to pay the admission charge to obtain this benefit does not affect her status as a beneficiary."
The majority then rejected several of Green's arguments, most importantly concluding that the Charitable Immunity Act applied even though the University had rented out its auditorium to for-profit entities.
Id.
at 553,
The dissent found summary judgment inappropriate because, in its view, there was a genuine dispute as to the material issue of whether the concert advanced the University's educational purpose.
See
The dissent was not persuaded by the majority's reliance on
Lax
, which the dissent described as "inconsistent with" and an "unwarranted expansion" of the Charitable Immunity Act,
Green appealed to this Court as of right based on the dissent in the Appellate Division. See R. 2:2-1(a)(2). We granted the motion of the New Jersey Association for Justice (NJAJ) to appear as amicus curiae.
II.
A.
Green argues that there were disputed issues of material fact that should have
B.
NJAJ similarly argues that "the current state of our charitable immunity jurisprudence places our courts in the untenable position of either deciding what is educational or granting a virtually total bar to all liability for educational non-profits." NJAJ contends that by labeling Martina McBride an "artist" whose concert
NJAJ suggests that this Court adopt "a new test to determine when an educational non-profit promotes its objectives" focused on the question, "what is the school doing?" If that question were asked in this case, NJAJ submits, "the answer would be: the University was renting its facilities for monetary gain," and charitable immunity would not apply. NJAJ suggests that such a test would allow courts to avoid determining what constitutes education and allow organizations to maintain their immunity when and where they are promoting educational objectives.
C.
The University argues that the Appellate Division decided the case correctly. The University contends that it was engaged in the performance of its educational objectives when Green was injured because its certificate of incorporation specifies that an integral part of its educational mission is to hold events and concerts open to the public. The University also asserts that "by attending the concert, [Green] was a beneficiary of [the University's] educational goals." Thus, the University maintains, it is entitled to charitable immunity under N.J.S.A. 2A:53A-7 and relevant case law.
A.
A trial court shall grant summary judgment if "the pleadings, depositions,
"Review of an order granting summary judgment is de novo."
Davis v. Devereux Found.
,
B.
New Jersey's doctrine of charitable immunity was first declared "as a judicial expression of [New Jersey's] public policy" in
D'Amato v. Orange Memorial Hospital
,
The Legislature immediately responded by passing a precursor to the Charitable Immunity Act and, a year later, the Act itself.
The Charitable Immunity Act's "original purpose was to avoid the diversion of charitable trust funds 'to non-charitable purposes in order to live up to the reasonable expectations of the benefactors.' "
Ryan
,
shall be deemed to be remedial and shall be liberally construed so as to afford immunity to the said corporations, societies and associations from liability as provided herein in furtherance of the public policy for the protection of nonprofit corporations, societies and associations organized for religious, charitable, educational or hospital purposes.
[ N.J.S.A. 2A:53A-10.]
The Act sets out the contours of the immunity it grants to nonprofit entities as follows:
No nonprofit corporation, society or association organized exclusively for religious, charitable or educational purposes ... shall, except as is hereinafter set forth, be liable to respond in damages to any person who shall suffer damage from the negligence of any agent or servant of such corporation, society or association, where such personis a beneficiary, to whatever degree, of the works of such nonprofit corporation, society or association; provided, however, that such immunity from liability shall not extend to any person who shall suffer damage ... where such person is one unconcerned in and unrelated to and outside of the benefactions of such corporation, society or association.
[ N.J.S.A. 2A:53A-7(a).]
"Distilling the statutory language to its essence," this Court has determined that "an entity qualifies for charitable immunity when it (1) was formed for nonprofit purposes; (2) is
As the Appellate Division stated, there is no dispute here that "the University satisfies the first two prongs of the charitable immunities standard because it is a 'nonprofit corporation ... organized exclusively for ... educational purposes.' "
Green
,
C.
This Court has explained that the third prong of the charitable immunity test involves two inquiries.
Ryan
,
i.
The determination of whether a nonprofit entity's activities are consistent with its stated purpose frequently necessitates a "fact-sensitive inquiry."
See
Kuchera v. Jersey Shore Family Health Ctr.
,
In
Bloom v. Seton Hall University
, for example, the Appellate Division found that Seton Hall was entitled to charitable immunity as a nonprofit educational institution from a claim brought by a student injured at a campus pub.
In other cases, the broad term "educational" has been applied to a rope and ladder climb at a Boy Scout exhibition,
Stoolman v. Camden Cty. Council Boy Scouts of Am.
,
And in a case similar to the one before us, the Appellate Division held that Princeton University was "entitled to immunity from a claim arising out of the rental of an auditorium to another non-profit entity that use[d] the facility for ... educational purposes" -- a concert.
Lax
,
In
Lax
, the Appellate Division stated that the Princeton Chamber Symphony was a nonprofit corporation that rented an auditorium from Princeton University, also a nonprofit corporation, for approximately $ 5000 per concert.
In holding that the concerts performed by the Symphony were educational, the panel acknowledged that concerts could be viewed as a form of entertainment or recreation.
The
Lax
panel also found that Princeton University was entitled to immunity from the plaintiff's suit.
The Lax court's ruling as to Princeton University and the other opinions described above focused on the third prong of the charitable immunity test and provide examples of the breadth of activities that can be considered to advance educational purposes. Further illustration of the scope of the term "educational" can be found in cases focused on the second prong of the immunity test -- whether institutions are "organized exclusively for educational purposes."
This Court interpreted that phrase in
Ryan
,
The Court then noted that the term "educational" has been interpreted broadly as in
The
Ryan
Court went on to hold that a "group of parents and expectant mothers organized to exchange experiences and receive information regarding childbirth, child rearing, mothering, and family relationships" was an educational organization.
The Appellate Division likewise discussed what constitutes an educational purpose in
Auerbach v. Jersey Wahoos Swim Club
, in which the court considered whether a swim club was organized for
The court opined that "the term 'educational' ... [is] not limited to purely scholastic activities,"
Cumulatively, the decisions described above reflect the liberal construction the Legislature has prescribed for the Charitable Immunity Act. See N.J.S.A. 2A:53A-10. Courts have found institutions offering an array of services to be educational in nature and have found a broad variety of activities offered by educational institutions to advance their educational objectives.
ii.
The second portion of the third prong of the charitable immunity test focuses on whether the plaintiff was benefitting from the institution's educational works when he or she was injured.
The notion of who is a beneficiary of a charity's works "is to be interpreted broadly, as evidenced by the use of the words 'to whatever degree' modifying the word 'beneficiary' in the [Charitable Immunity Act]."
Ryan
,
Courts also consider, but are not bound by, the purposes set forth in the organization's certificate of incorporation.
DeVries
,
And charitable immunity can still apply "even where the person has paid for the services rendered by the charity."
Loder v. St. Thomas Greek Orthodox Church
,
IV.
At issue in this matter is the third prong of N.J.S.A. 2A:53A-7(a), whether the University "was promoting such objectives and
In Monmouth University's certificate of incorporation, the University expressly states that its "purposes" include the establishment and maintenance of an institution that promotes education, including "general cultural education," as well as "provid[ing] for the holding of meetings and events open to the public ... all calculated, directly or indirectly, to advance the cause of education and wholesome recreation." While the purpose set forth in an organization's certificate of incorporation is not conclusive, the organization's stated purpose is a useful factor for courts to consider.
See
DeVries
,
Here, the underlying event was a concert, which is undisputedly an activity encompassed by the University's certificate of incorporation as an event that furthered the University's educational purpose. Just as the Appellate Division in Lax found the Chamber Symphony to be "educational" and "charitable" under the Charitable Immunity Act, the McBride concert is afforded similar status.
As the majority stated, "[w]hether classical, country, or Christmas, music is an art, and McBride is a musical artist. Thus, McBride's concert was 'a cultural and educational experience.' "
Green
,
Further, as the majority correctly observed, courts should not be in the business of deciding what music constitutes "educational" music and what does not. By accepting the premise that all music
While the Legislature never intended the Charitable Immunity Act to be limitless, the Act is to be liberally construed, and we believe that today's ruling is in step with the Act's legislative intent. We hold that the underlying concert was promoting the University's educational objectives and purposes at the time of Green's injury, and as a result, Monmouth University is afforded charitable immunity.
Furthermore, we agree with the majority that Monmouth University's decision to rent out the MAC to host the Martina McBride concert did not result in the loss of the University's charitable immunity. A charitable entity should be allowed to contract with third-party, for-profit entities to help facilitate the logistics of establishing and running a charitable event -- like a concert -- inasmuch as certain third parties undoubtedly have certain resources, contacts, and expertise that a charitable entity may not possess. If hiring third-party professionals triggers the loss of an entity's immunity status, non-profits in turn will be dissuaded from presenting religious, charitable, or educational events, which is contrary to the Legislature's intent.
We also note that our decision is not at all based on whether the University here made a profit or lost money on the Martina McBride concert. The Legislature could have set up the Charitable Immunity Act to turn on such issues, but it did not.
V.
For the reasons set forth, the judgment of the Appellate Division is affirmed.
CHIEF JUSTICE RABNER and JUSTICES LaVECCHIA, PATTERSON, SOLOMON, and TIMPONE join in JUSTICE FERNANDEZ-VINA'S opinion. JUSTICE ALBIN did not participate.
