John Robert Scaduto v. State of New Jersey, Department of Enrivonmental Protection
CourtNew Jersey Superior Court Appellate Division
Date FiledJanuary 12, 2023
DocketA-3240-20
StatusPublished
π° News Coverage: Read the LAWS.com news report on this case
Full Opinion
NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-3240-20
JOHN ROBERT SCADUTO
and DEBRA LYNN SCADUTO,
Plaintiffs-Appellants,
v.
STATE OF NEW JERSEY,
DEPARTMENT OF
ENVIRONMENTAL
PROTECTION,
Defendant-Respondent.
___________________________
APPROVED FOR PUBLICATION
ROBERT J. HARKINS, January 12, 2023
Plaintiff-Appellant, APPELLATE DIVISION
v.
STATE OF NEW JERSEY,
DEPARTMENT OF
ENVIRONMENTAL
PROTECTION,
Defendant-Respondent.
___________________________
MARK CURCIO and BARBARA
CURCIO,
Plaintiffs-Appellants,
v.
STATE OF NEW JERSEY,
DEPARTMENT OF
ENVIRONMENTAL
PROTECTION,
Defendant-Respondent.
___________________________
SANDBOX PROPERTIES, LLC,
Plaintiff-Appellant,
v.
STATE OF NEW JERSEY,
DEPARTMENT OF
ENVIRONMENTAL
PROTECTION,
Defendant-Respondent.
___________________________
ANTHONY D'AURIA and
DEBORAH D. D'AURIA,
Plaintiffs-Appellants,
v.
STATE OF NEW JERSEY,
DEPARTMENT OF
ENVIRONMENTAL
PROTECTION,
Defendant-Respondent.
___________________________
A-3240-20
2
STEPHEN ROMA and
MARY L. ROMA,
Plaintiffs-Appellants,
v.
STATE OF NEW JERSEY,
DEPARTMENT OF
ENVIRONMENTAL
PROTECTION,
Defendant-Respondent.
_________________________
RICHARD COLAVITA and
ANNE S. COLAVITA,
Plaintiffs-Appellants,
v.
STATE OF NEW JERSEY,
DEPARTMENT OF
ENVIRONMENTAL
PROTECTION,
Defendant-Respondent.
___________________________
Argued November 10, 2022 β Decided January 12, 2023
Before Judges Accurso, Firko and Natali.
On appeal from the Superior Court of New Jersey, Law
Division, Ocean County, Docket Nos. L-2301-20,
L-2302-20, L-2305-20, L-2307-20, L-2308-20, L-2311-
20 and L-2314-20.
A-3240-20
3
John J. Reilly argued the cause for appellants (Bathgate,
Wegener & Wolf, PC, attorneys; John J. Reilly, on the
briefs).
Brian W. Keatts argued the cause for respondent (Rutter
& Roy, LLP, attorneys; Brian W. Keatts, on the brief).
The opinion of the court was delivered by
ACCURSO, P.J.A.D.
Plaintiffs in these seven inverse condemnation actions, consolidated in
the trial court, appeal from Judge Lynch Ford's dismissal of their complaints
against the Department of Environmental Protection under the entire
controversy doctrine. The dismissal order leaves plaintiffs to their remedies in
the DEP's condemnation action against their homeowners association β in
which plaintiffs, as well as the Association and the DEP, have appealed from
the report of the condemnation commissioners, entitling them to a jury trial
already scheduled for February 2023. Because we agree plaintiffs' rights to
separate awards for just compensation for the loss of value to their homes, if
any, resulting from the DEP's exercise of eminent domain as to the beach lot
owned by their Association are fully protected through their participation in
the earlier filed condemnation action, we affirm.
Plaintiffs are seven of the twenty-two members of the Bayhead Point
Homeowners Association, Inc., which owns an unbuildable, two-and-a-half-
acre beach lot along the Atlantic Ocean in Point Pleasant Beach near its border
A-3240-20
4
with Bay Head.1 According to the Association's Declaration of Covenants and
Restrictions, each of the plaintiffs, as owners of one of the twenty-two "Lots
and their assigns, . . . successors, . . . grantees, . . . shall have a perpetual, non -
exclusive easement for recreational purposes in, upon and across the Beach."
The Declaration also provides plaintiffs a non-exclusive free and unobstructed
right of ingress and egress to the beach lot via the six-foot-wide beach access
easement walkway between Lots 9.03 and 9.04.
The DEP filed its condemnation action against the Association in
December 2015 to acquire a perpetual storm damage reduction easement in the
beach lot as part of the Department's collaboration with the Army Corps of
Engineers in the Manasquan Inlet to Barnegat Inlet Storm Damage Reduction
Project, a dune and berm system in northern Ocean County stretching from
Berkeley Township to Point Pleasant Beach begun after Superstorm Sandy.
See State v. N. Beach 1003, LLC, 451 N.J. Super. 214, 223-25 (App. Div.
1
The Association's members are the owners of the twenty-two residential lots
within the Association. Plaintiffs Curcio, Harkins, Sandbox Properties, LLC,
Roma, D'Auria and Scaduto all own residential lots in Block 179.03 on Beacon
Lane. Mark and Barbara Curcio own Lot 9.03; Robert Harkins owns Lot 9.04;
Sandbox Properties owns Lot 9.05; Stephen and Mary Roma own Lot 9.06;
Anthony and Deborah D'Auria own Lot 9.07; and John and Debra Scaduto own
Lot 9.04. Plaintiffs Richard and Anne Colavita own Lot 4.04 in Block 11.01.
Six are oceanfront homes on the east side of Beacon Lane adjacent to the
beach lot, and one is located across the street on the west side. The beach lot
is Lot 9 in Block 179.03.
A-3240-20
5
2017) (describing the project). In its complaint, the DEP acknowledged
plaintiffs' access easement provided in the recorded Declaration of Covenants,
but noted it was "taking the storm damage reduction easement subject to the
rights held by these oceanfront lot owners to cross the dune in a manner
allowed by local and state law."
On August 26, 2016, the court signed and entered a consent order
between the DEP and the Association resolving the Association's objections to
the DEP's failure to join the members of the Association as necessary parties in
the condemnation action. The order provided that any member of the
Association would be entitled to present evidence relating to claims for
severance damages allegedly caused to the member's property by the DEP's
partial taking of the Association's beach lot before the condemnation
commissioners to be appointed by the court. 2 Any member appearing at the
commissioners' hearing and filing a timely notice of appeal from the
commissioners' report pursuant to Rule 4:73-6 would likewise have the right to
make claims for severance damages, if any, at the trial de novo.
The consent order also provided the failure of a member to appear at the
commissioners' hearing, either personally or through counsel, would preclude
2
"Severance damages may be defined as damages or diminution in the value
of the remainder resulting from the taking of a portion of a tract of land." 8A
Nichols on Eminent Domain Β§ G16.02 (Matthew Bender, 3d ed. 2013).
A-3240-20
6
that member's appeal from the commissioners' report. Finally, it provided a
copy of the order "shall be served by counsel for the Association upon all
members of the Association within seven days of its receipt." The court
incorporated the terms of the consent order in its separate order of the same
date declaring the DEP had the authority to condemn the Association's
property to take a perpetual easement for the purpose of protecting the State's
shoreline, a legal conclusion we subsequently endorsed in North Beach 1003,
451 N.J. Super. at 223.
A few weeks later, the court entered final judgment for the DEP in the
condemnation action and appointed commissioners to establish the value of the
taking. The DEP recorded its declaration of taking two months later. The
commissioners' hearing, however, was not held until October 2019, by which
time the Army Corps had completed the dune restoration project, dredging and
pumping more than eleven million cubic yards of sand onto the beaches
between the Manasquan and Barnegat inlets. The project resulted in a newly
constructed dune and elevated beach area on 2.15 acres, or eighty-five percent,
of the beach lot. Although recreation on the beach dune was prohibited by
State law both before and after completion of the project, the work increased
the usable portion of the Association's beach lot from 69,000 to 95,000 square
feet.
A-3240-20
7
Plaintiffs claim they did not receive the 2016 consent order until March
of 2019. Their retained counsel, however, appeared on their behalf at the
commissioners' hearing seven months later, which was conducted at his office.
Following the commissioners' issuance of their report, which is not a part of
this record, the DEP filed a notice of appeal from the award and a jury
demand.
Both the Association and plaintiffs filed cross-appeals, with plaintiffs
framing the issue to be tried as the just compensation for the taking of the
beach lot, "as well as the separate just compensation due to each of the
respective [plaintiffs] by reason of the taking . . . of property of each . . . and
any damages to their respective residential lots." In their notice of appeal,
plaintiffs advised that "in order to fully protect their rights to just
compensation," each would also be filing a separate inverse condemnation
action alleging the State had effected a partial taking of each plaintiff's
separate property "without due process and without just compensation,
including the impairment of the use and enjoyment of each owner's residential
lot." The judge signed plaintiffs' form of order in the condemnation action,
ensuring that among the issues to be tried in that action will be "the separate
just compensation due to each of the respective [plaintiffs] by reason of the
A-3240-20
8
taking . . . of property of each . . . and any damages to their respective
residential lots."
Nine months later, plaintiffs filed their seven separate actions, which
Judge Lynch Ford consolidated and dismissed on the State's motion in an
opinion from the bench, agreeing plaintiffs' claims are barred by the entire
controversy doctrine. See Dimitrakopoulos v. Borrus, Goldin, Foley,
Vignuolo, Hyman & Stahl, P.C., 237 N.J. 91, 108 (2019) (explaining the
administration of justice concerns underlying the doctrine). The judge
reasoned she had already permitted, "in effect," plaintiffs' intervention in the
DEP's condemnation action "for the purpose of fully asserting" whatever
claims they might have for damages to their easement rights β and plaintiffs
were pursuing their claims in that action. Because plaintiffs suffered no
unfairness in having their claims adjudicated in the condemnation action and
doing so promoted a single disposition of all claims arising out of the DEP's
taking of the easement in the beach lot, avoiding both "piecemeal decisions"
and the inefficiency and delay that would be occasioned by a separate action
β or seven β the judge found the entire controversy doctrine mandated
dismissal.
Plaintiffs moved for reconsideration, arguing the entire controversy
doctrine did not apply because there had never been an adjudication of the
A-3240-20
9
taking of their easement rights; State v. Orenstein, 124 N.J. Super. 295 (App.
Div. 1973), required a separate action; and the court had wrongly conflated
plaintiffs' easements to cross the dune, which the State's easement did not
impair, and their recreational easement in the beach lot, which plaintiffs
characterized as "a discrete separate easement of recreational use in the private
beach." Judge Lynch Ford denied the motion. The judge reiterated that
"plaintiffs have a forum within which to determine the loss of value, if any, to
their properties resulting from the takings related to the project" as the court
"established a mechanism" in the condemnation action for consideration of
those claims with the claims of the Association to which they are obviously
related.
Plaintiffs appeal, reprising their arguments to the trial court. Our review
of a decision on summary judgment is de novo, Branch v. Cream-O-Land
Dairy, 244 N.J. 567, 582 (2021), without deference to interpretive conclusions
of statutes or the common law we believe mistaken, Nicholas v. Mynster, 213
N.J. 463, 478 (2013). As the parties agreed on the material facts for purposes
of the motion, our task is limited to determining whether the trial court's ruling
on the law was correct. Manalapan Realty, L.P. v. Twp. Comm. of Manalapan,
140 N.J. 366, 378 (1995). We conclude it was.
A-3240-20
10
Taking the claims in inverse order, we disagree the judge conflated
plaintiffs' easement right to cross the dune with "their separate easement right
to use the private beach for recreation." There is no question but that the
Association's recorded Declaration of Covenants and Restrictions provides
plaintiffs with two distinct easements: the right of ingress and egress to the
beach via the walkway between Lots 9.03 and 9.04 and "a perpetual, non-
exclusive easement for recreational purposes in, upon and across the Beach."
The judge clearly understood that, and the DEP does not dispute it. And
because the State's storm damage reduction easement was expressly made
subject to plaintiffs' access easement, all agree only the recreation easement is
at issue here.3
And, while plaintiffs contend no court has ever entered judgment that the
DEP has exercised its power of eminent domain as to plaintiffs' recreation
easements, the DEP does not dispute its judgment of eminent domain as to the
beach lot entitles plaintiffs to just compensation to the extent they can
establish severance damages, as expressly provided in the court's August 2016
orders.
3
The DEP acknowledges "plaintiffs' passing reference" in their brief to the
State having removed a portion of certain of their walkways crossing the
existing dune. Besides noting the storm reduction easement "expressly permits
the construction of a dune overwalk structure," the DEP states unequivocally
that plaintiffs are "free to raise this issue" in the condemnation action.
A-3240-20
11
The DEP also does not dispute that each plaintiff shall be entitled to a
separate award of just compensation to the extent each can prove severance
damages, measured as the difference in the value of their home with the
recreation easement before the State's partial taking of the beach lot and the
value of their home with the recreation easement after the State's partial
taking. See Orenstein, 124 N.J. Super. at 302 (explaining in the context of the
complete destruction of an alleged easement that "[t]he owner of the dominant
estate must be compensated for the value of the easement taken from him and
the measure of damage is the difference in the market value of the dominant
estate with the easement and its value without the easement" (quoting Alfred
D. Jahr, Eminent Domain, Valuation and Procedure Β§ 160, at 251 (1953))).
Accordingly, the concern we expressed in Orenstein β that a landowner
claiming the condemning authority had taken an irrevocable easement
appurtenant for the benefit of adjacent property, in addition to the land
described in the complaint, must present that claim to the court before entry of
the order appointing commissioners β is not implicated here. Id. at 298.
While it may have been better practice for the DEP to have amended its
complaint when the consent order was entered, plaintiffs' claims as to the
taking of their easements were presented to the court before the appointment of
commissioners, with the court ordering that members of the Association could
A-3240-20
12
present claims for severance damages to the members' properties by the DEP's
partial taking of the beach lot. Each will be entitled to a separate award on
proof of severance damages.
To ensure in accordance with Orenstein that the only issue presented to
the jury is the measure of plaintiffs' severance damages, the one disputed issue
we must address is whether the trial judge was correct as to the extent of
plaintiffs' recreation easements, see Rosen v. Keeler, 411 N.J. Super. 439, 451
(App. Div. 2010) (explaining "[q]uestions concerning the extent of the rights
conveyed by an easement require a determination of the intent of the parties as
expressed through the instrument creating the easement, read as a whole and in
light of the surrounding circumstances").
As already noted, plaintiffs contend their recreational easement is "a
discrete separate easement of recreational use in the private beach." Thus,
they argue to us that what the State has taken from them is their "separate
recreational easement right to exclude members of the public from the
[Association's] private beach," meaning their loss is "the right to recreation on
a private beach restricted to members of the Association." The DEP
acknowledges it has included public access and use in its perpetual storm
damage reduction easements, as we found N.J.S.A. 12:3-64 permitted it to do
in North Beach 1003, 451 N.J. Super. at 239, but contends plaintiffs have
A-3240-20
13
overstated their alleged loss as they "never had the right to exclude anyone"
from the Association's beach. The DEP argues the Association "always
maintained the right to offer access to the beach lot to the general public" and
the public "always had a right to access a portion of the beach lot" through the
public trust doctrine. Judge Lynch Ford agreed with the DEP. So do we.
There is no dispute that plaintiffs are each an owner of a dominant
tenement with an easement appurtenant in the beach lot. See Rosen, 411 N.J.
Super. at 450 ("An easement appurtenant is created when the owner of one
parcel of property (the servient estate) grants rights regarding that property to
the owner of an adjacent property (the dominant estate)."). The Declaration of
Covenants and Restrictions expressly provides "the Owners of the [twenty-
two] Lots and their assigns, tenants, successors, employees, grantees, guests,
invitees, servants and agents shall have a perpetual, non-exclusive easement
for recreational purposes in, upon and across the Beach."4
4
Plaintiffs contend the words following the portion we quoted, that "[n]othing
herein contained is intended, nor shall it be construed, held or taken as a
dedication hereof, or as creating any rights in or for the benefit of the general
public," "assures the public is excluded." We disagree the language supports
plaintiffs' position that their recreation easements are exclusive to them, and
the Association is thus precluded from permitting non-members of the
Association to use its beach lot. That the recreation easements do not create a
right in the general public to beach access does not restrict the Association
from granting the public access to its property.
A-3240-20
14
Plaintiffs contend their easements restrict the Association from
permitting anyone other than members of the Association to use the
Association's "private beach." As our Supreme Court has explained, "[t]he
problem of declaring the correlative rights and duties of the owners of the
servient and dominant estates arising from an easement is one of construction,"
Hammett v. Rosensohn, 26 N.J. 415, 423 (1958), with the primary rule being
"that the intent of the conveyor is normally determined by the language of the
conveyance read as an entirety and in the light of the surrounding
circumstances," ibid.
A review of the language of the easement makes plain that plaintiffs'
easements in the beach lot are "non-exclusive." Plaintiffs read that language to
mean their easements in the beach lot are exclusive in common with the
owners of the other lots. But if that were the intent, the drafter could have
written more directly that "the Owners of the Lots and their assigns, . . .
successors, . . . grantees, . . . shall have a perpetual, non-exclusive easement
for recreational purposes in, upon and across the Beach." See, e.g., Levinson
v. Costello, 74 N.J. Super. 539, 543 (App. Div. 1962) (interpreting a shared
easement included in lot owners' deeds by words "together with right of
reasonable use of the beach front by property owners and occupants only of the
Marlin Beach development").
A-3240-20
15
Because we accord the words of the Declaration of Covenants and
Restrictions their ordinary meaning, Citizens Voices Ass'n v. Collings Lakes
Civic Ass'n, 396 N.J. Super. 432, 443 (App. Div. 2007), we cannot agree with
plaintiffs that use of the beach lot "was exclusive to the members of the
Association" and their easements precluded the Association from permitting
anyone other than the members of the Association to use the beach. See
Hyland v. Fonda, 44 N.J. Super. 180, 189 (App. Div. 1957) (noting "the
servient tenement will not be burdened to a greater extent than was
contemplated or intended at the time of the creation of the easement and the
use of the easement must not unreasonably interfere with the use and
enjoyment of the servient estate" (quoting Lidgerwood Ests., Inc. v. Pub. Serv.
Elec. & Gas Co., 113 N.J. Eq. 403, 407 (Ch. 1933))).
That conclusion, however, does not end the inquiry. In the context of an
express easement, our courts recognize the "'universally accepted principle' . . .
that 'the landowner may not, without the consent of the easement holder,
unreasonably interfere with the latter's rights or change the character of the
easement so as to make the use thereof significantly more difficult or
burdensome.'" Kline v. Bernardsville Ass'n, Inc., 267 N.J. Super. 473, 478
(App. Div. 1993) (quoting Tide-Water Pipe Co. v. Blair Holding Co., 42 N.J.
591, 604 (1964)). The American Law Institute restates the principle positively
A-3240-20
16
to say "[e]xcept as limited by the terms of the servitude . . . the holder of the
servient estate is entitled to make any use of the servient estate that does not
unreasonably interfere with enjoyment of the servitude." Restatement (Third)
of Prop.: Servitudes Β§ 4.9 (Am. Law Inst. 2000).
Thus, even though plaintiffs are incorrect that their easements made the
beach lot "exclusive to the members of the Association," we must still consider
whether allowing public access to the beach after completion of the Army
Corps project unreasonably interfered with plaintiffs' rights or changed the
character of plaintiffs' easements. See Kline, 267 N.J. Super. at 478.
Illustration 10 to Β§ 4.9 of the Restatement is instructive.
O, the developer of a 10-lot subdivision near a lake,
retained title to Blackacre, a lot fronting on the lake
which included a beach. O granted an appurtenant
easement for use of Blackacre for recreational
purposes in the deeds conveying each of the 10 lots in
the subdivision. Twenty years later, a successor in
title to Blackacre granted an easement to the owner of
Whiteacre, property outside the subdivision, for
recreational purposes. Whiteacre is used as a
campground and draws hundreds of visitors during the
summer. In the absence of other facts or
circumstances, the owner of Blackacre was not
entitled to create the additional easement rights
because the likely increased use will unreasonably
interfere with enjoyment of the previously created
easements.
[Restatement (Third) of Prop.: Servitudes Β§ 4.9 cmt. e,
illus. 10 (Am. Law Inst. 2000).]
A-3240-20
17
The Reporter's Note indicates the facts in Illustration 10 were drawn
from Leabo v. Leninski, 438 A.2d 1153 (Conn. 1981). The plaintiffs in Leabo
were owners in a small subdivision consisting of six lots "and a small piece of
rocky shore, known as the 'Second Piece' located" on a beach road running
along Long Island Sound. Id. at 1154. The deeds to each of the lots contained
an easement appurtenant permitting the owner "the right to use in common
with others, for the purpose of bathing only, the beach located easterly of the
Second Piece." Ibid. The beach east of the Second Piece was small,
consisting of only 1,300 square feet, and not part of the subdivision, but
instead a part of a two-and-a-quarter-acre parcel improved with four cottages
located southeast of the development. Ibid. The deed to that parcel "referred
to the beach as 'Second Piece' and included the following language: '[s]aid
Second Piece is subject to rights of others of use, as of record in said Land
Records will appear.'" Ibid.
When the defendant Leninski purchased the two-and-a-quarter-acre
parcel sixteen years later, he obtained a permit to renovate one of the cottages.
Ibid. After Leninski "had incurred much expense in improvements," id. at
1154-55, the local zoning authorities revoked his permit and ordered him "to
restore the cottage to its original condition," id. at 1155. Leninski responded
by painting "the cottage red, white and blue simulating the American flag and
A-3240-20
18
posted large signs announcing the opening of the beach for public use." Ibid.
After Leninski beat back an application by the zoning authorities for a
temporary injunction closing the beach to the public, Zoning Comm'n of
Sachem's Head Ass'n v. Leninski, 376 A.2d 771, 773 (Conn. C.P. 1976), he
bought the private road separating his property from the plaintiffs' subdivision
and took steps to widen it to accommodate parking for the 2,000 bikes and 200
cars he anticipated would be necessary for members of the public using the
beach. Leabo, 438 A.2d at 1155-56.
Faced with those facts, the Connecticut Supreme Court had no hesitation
in concluding that "[c]onsidering the limited size of the beach," Leninski's
opening it to the public in the manner he did recklessly disregarded the
plaintiffs' easement rights. Id. at 1156-57. Relying in part on our opinion in
Levinson v. Costello, 74 N.J. Super. 539, the Connecticut Supreme Court
reasoned "[a] beach easement is more than a mere right of access; it involves
the more sensitive rights of recreational use, enjoyment and pleasure implied
in the reasonable use of the easement." Leabo, 438 A.2d at 1156. Central to
that court's holding that Leninski had violated the plaintiffs' rights was the
history of the use of the easement, namely that prior to his acquisition of the
servient tenement, "only the owners of the lots in the subdivision and their
guests used the beach; that the beach was not open to the public, and that the
A-3240-20
19
defendant's predecessors in title did not object to such limited use." Id. at
1155.
We agree with the Connecticut Supreme Court that a beach easement is
more than a right of access and "involves the more sensitive rights of
recreational use, enjoyment and pleasure implied in the reasonable use of the
easement." Id. at 1156. We also agree that an understanding of the extent of
such an easement requires consideration of the words of the grant, the
condition of the servient tenement and the history of the use. 5 Id. at 1155.
Assessment of those factors in this case distinguishes this matter from Leabo.
5
The Leabo court, while acknowledging Connecticut's public trust doctrine,
as well as "the broader implications of public access to beaches" and state
policy encouraging "public access to the waters of Long Island Sound,"
determined the doctrine was not implicated because the case did "not involve
public access to the wet sand area but to the privately owned dry sand area
above the mean high water line." 438 A.2d at 1156. The Connecticut
Supreme Court has since made clear that state's public trust doctrine "applies
both to privately and publicly owned shorefront property," Leydon v. Town of
Greenwich, 777 A.2d 552, 564 n.17 (Conn. 2001), but it does not appear to
extend to "reasonable access to the sea" or use of the dry sand "reasonably
necessary for enjoyment of the ocean" by the public, "subject to an
accommodation of the interests of the owner" in the case of privately owned
land as in New Jersey, Matthews v. Bay Head Improvement Ass'n, 95 N.J. 306,
324-25 (1984). Given the robust development of the public trust doctrine in
our courts, id. at 316-25 (tracing the development of the State's public trust
doctrine), and the important "statewide policy of encouraging . . . greater
access to ocean beaches for recreational purposes," consonant with
environmental concerns, reflected in both statute and regulation, see Lusardi v.
Curtis Point Prop. Owners Ass'n, 86 N.J. 217, 227-28 (1981) (identifying
A-3240-20
20
In addition to the words of the grant making clear the easement here is
not exclusive to members of the Association, its history is different from the
private use in Leabo. In 2002, the State, as well as intervenors Citizens' Right
to Access Beaches, American Littoral Society and the New York/New Jersey
Baykeeper, sued the Association contending it was preventing members of the
public from accessing areas of the beach to which they had right of access
under the public trust doctrine. The public trust plaintiffs and the Association
settled that suit in 2005, with the Association agreeing it would not interfere
with members of the public using the beach lot eastward of a line parallel to
the west property line located nine feet seaward of the landward-most portion
of a then-existing outfall structure, or with members of the public traversing
around the rear of the outfall structure. 6 While the plaintiffs agreed no other
portions of the beach lot would "be burdened by the public access area," the
Association reserved in that settlement agreement its "right to operate its
property commercially . . . and to limit access to the property upon the
____________________
expressions of the policy), consideration of any beach easement in New Jersey
must also be undertaken against that backdrop.
6
The outfall structure, which included a concrete block pump station on the
beach lot, was removed as part of the Army Corps project.
A-3240-20
21
payment of a reasonable fee that shall not be so onerous as to constitute an
unreasonable interference with public trust rights." 7
Plaintiffs contend there's nothing in the record suggesting the
Association ever sold beach badges to the public and even assuming it has
such right and "chose to do so, such circumstances do not create any right in
the public." We agree the Association's reservation in the public trust
litigation of the right to open the beach to the public through the sale of beach
badges did not create any right in the public to use the non-public-access
portion of the Association's beach. But it obviously further erodes plaintiffs'
claim that their "non-exclusive" recreation easements gave them "the right to
exclude the public" from the Association's beach.
Not only did the Association settle litigation with the State and public
trust plaintiffs by giving the public more access to the dry sand beach, which
plaintiffs claim was restricted to the exclusive use of the twenty-two lot
owners, see Matthews, 95 N.J. at 326 (holding members of the public must be
allowed "use of privately-owned dry sand areas as reasonably necessary" to
vindicate their rights under the public trust doctrine), it expressly asserted its
reserved right to operate the beach commercially by selling beach badges to
7
The settlement agreement was signed on behalf of the Association by one of
the seven plaintiffs in this suit.
A-3240-20
22
the public. Thus, this matter is different from the facts in Leabo because, in
addition to the vastly larger size of the Association's beach, the terms of the
grant of the non-exclusive easement and the history of the settlement of the
public trust litigation establish plaintiffs' easement rights were already subject
to the public's negotiated right of access pursuant to the public trust doctrine
and the Association's reserved right to provide public access to the beach lot
prior to the DEP's condemnation. 8
Accordingly, we cannot find the State's partial taking, including public
access and use in the expanded beach lot, changed the character of plaintiffs'
non-exclusive recreation easements by depriving them of "the right to
recreation on a private beach restricted to members of the Association."
Plaintiffs' recreation easements did not provide them the right to a private
beach. While plaintiffs are free to argue in the condemnation action that they
are entitled to severance damages because the State's partial taking reduced the
8
We acknowledge, of course, that the Association is controlled by its
members and holds title to the beach lot for their benefit. See Trs. of
Llewellyn Park v. W. Orange Twp., 224 N.J. Super. 342, 346 (App. Div.
1988). Thus, prior to the condemnation it could have elected, for example, not
to allow public access, beyond that agreed in 2005, to its dry sand beach, by a
vote of the members in accordance with its by-laws. But that fact does not
change the Association's right to use of its property, the servient tenement,
based on the terms of the recreation easement and its reservation of the right to
operate the beach commercially in the 2005 settlement of the public trust
litigation.
A-3240-20
23
value of their homes by impairing their appurtenant easements in the
Association's beach lot, they may not mislead the jury as to the extent of those
easements prior to the taking.
We are accordingly satisfied Judge Lynch Ford was correct to find
plaintiffs' claims for severance damages flowing from the State's storm damage
reduction easement are intertwined with the Association's just compensation
claim for the same taking, that plaintiffs were already pursuing their claims in
the DEP's condemnation action against the Association, and thus the entire
controversy doctrine barred plaintiffs' separate inverse condemnation claims.
See Dimitrakopoulos, 237 N.J. at 108 (noting "[t]he entire controversy
doctrine 'embodies the principle that the adjudication of a legal controversy
should occur in one litigation in only one court'" (quoting Cogdell ex rel.
Cogdell v. Hosp. Ctr. at Orange, 116 N.J. 7, 15 (1989))). In addition to
plaintiffs' and the Association's claims being "aspects of a single larger
controversy" based on their interrelated facts, id. at 109 (quoting DiTrolio v.
Antiles, 142 N.J. 253, 271 (1995)), plaintiffs were provided the right to
participate in the condemnation proceeding in 2016, they've actively
participated in the case since October 2019, and they did not file their inverse
condemnation claims until October 2020. Given those facts, we have no
hesitation holding joinder is mandated. See DiTrolio, 142 N.J. at 271.
A-3240-20
24
As to the extent of plaintiffs' recreation easements, we are also satisfied
Judge Lynch Ford was correct to reject plaintiffs' claim that their recreational
easements provided them the right to exclude non-Association members from
the Association's beach lot. Neither the express wording of the recreation
easement in the Association's Declaration of Covenants and Restrictions nor
the settlement agreement in the public trust litigation supports that claim.
Accordingly, the jury in this case should be charged in accordance with
Borough of Harvey Cedars v. Karan to determine just compensation to
plaintiffs by calculating the fair market value of their properties with their
non-exclusive recreation easements immediately before the taking and the fair
market value of plaintiffs' properties with those same non-exclusive recreation
easements after the Army Corps completed construction of the dune and
elevated beach area on the Association's beach lot and the public was allowed
access as provided in the State's storm damage reduction easement. 214 N.J.
384, 417-18 (2013) (explaining the "before and after rule"). Critically, the
"before" values must take into account that plaintiffs' easement rights were
already subject to the public's right of access pursuant to the public trust
doctrine and the Association's right to operate its beach commercially by
selling beach badges to the public.
A-3240-20
25
The jury must be permitted to consider whether allowing public access
to the Association's beach lot as part of the DEP's storm damage reduction
easement affected the fair market value of plaintiffs' homes. In performing
that task, the jury should consider any quantifiable benefits affecting value as
well as quantifiable detriments, considering all relevant factors based on the
evidence adduced at trial. See id. at 416-18. See also State v. 1 Howe St. Bay
Head, 463 N.J. Super. 312, 345 (App. Div. 2020) (determining "it was
reasonable for the appraisers to conclude the properties would be more
valuable after the condemnation because the Project overall would enhance
shore protection for the entire area"); State by Comm'r of Transp. v. Silver, 92
N.J. 507