Franklin Castanos v. Emad Ghaly
CourtNew Jersey Superior Court Appellate Division
Date FiledOctober 20, 2026
DocketA-4035-24
StatusUnpublished
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Full Opinion
NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the
internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-4035-24
FRANKLIN CASTANOS and
SOLANGE PLASENCIA,
Plaintiffs-Respondents,
v.
EMAD GHALY,
Defendant-Appellant,
and
EIG REAL ESTATE
MANAGEMENT, LLC,
Defendant.
____________________________
Submitted September 28, 2026 – Decided October 20, 2026
Before Judges Perez Friscia and Torregrossa-O'Connor.
On appeal from the Superior Court of New Jersey, Law
Division, Hudson County, Docket No. L-1434-20.
Emad Ghaly, self-represented appellant.
Respondents have not filed a brief.
PER CURIAM
Defendant Emad Ghaly, self-represented, appeals from the January 17,
2025 trial court final judgment entered in favor of plaintiffs Franklin Castanos
and Solange Plasencia pursuant to Rule 4:43-2(b).1 Following our review of the
record, Ghaly's arguments, and the applicable law, we vacate the final judgment
and remand for further proceedings consistent with this opinion.
I.
We begin by noting that in challenging the final judgment, Ghaly asserts
in his notice of appeal that default was also improperly entered by the court in
October 2023. However, Ghaly has not appealed from the court's order entering
default pursuant to Rule 2:4-1(a), nor has he provided in his appendix that order,
the transcript, or the related order denying his motion to vacate default. 2
Additionally, Ghaly has not provided all of the documents relevant to his appeal
from the final judgment, including plaintiffs' motion exhibits in support of the
1
Codefendant EIG Real Estate Management ("EIG") is not participating in this
appeal. The court had entered default judgment against EIG having found it "is
a limited liability corporation and require[d] counsel as per R[ule] 1:21-1(c)."
2
"The record on appeal shall consist of all papers on file in the court . . . below."
R. 2:5-4(a); see also R. 2:6-1(a)(1)(I) (explaining the appellant's appendix shall
include "such other parts of the record, . . . as are essential to the proper
consideration of the issues").
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final judgment amount for the sum certain. "We are not 'obliged to attempt the
review of an issue when the relevant portions of the record are not included. '"
State v. D.F.W., 468 N.J. Super. 422, 447 (App. Div. 2021) (quoting Cmty.
Hosp. Grp., Inc. v. Blume Goldfaden Berkowitz Donnelly Fried & Forte, P.C. ,
381 N.J. Super. 119, 127 (App. Div. 2005)). Nevertheless, recognizing Ghaly
is self-represented,3 we have endeavored to fairly discern the procedural history
and his arguments.
Plaintiffs entered a residential lease for a single-family home in Bayonne.4
EIG owned the property, and Ghaly was a member of EIG. In renting the home,
plaintiffs paid the first month's rent and a security deposit. After issues with the
home's condition arose, plaintiffs vacated the premises.
Plaintiffs thereafter filed an action in the Law Division. In October 2023,
the parties had a trial date and Ghaly failed to appear. The court ordered Ghaly's
answer stricken and entered default based on his non-appearance. Ghaly later
3
Generally, a self-represented litigant is not entitled to greater rights than a
litigant represented by counsel. Ridge at Back Brook, LLC v. Klenert, 437 N.J.
Super. 90, 99 (App. Div. 2014). Self-represented litigants are held to the same
standards for compliance with our Court Rules. See Rubin v. Rubin, 188 N.J.
Super. 155, 159 (App. Div. 1982).
4
Ghaly has not provided a copy of the lease on appeal. It is therefore unclear
if both defendants signed the lease.
A-4035-24
3
moved to vacate the default, which the court denied in November 2023. Ghaly
moved for reconsideration, which the court also denied. As plaintiffs failed to
timely move for default judgment for a sum certain or for a proof hearing
pursuant to Rule 4:23-2(b), plaintiffs' action was dismissed for lack of
prosecution. Thereafter, plaintiffs moved to reinstate their case, which the court
granted in October 2024.
The parties appeared for a proof hearing on November 18, 2024. Shortly
before the hearing, Ghaly had moved to dismiss plaintiffs' complaint for failure
to state a claim pursuant to Rule 4:6-2(e).
At the hearing, the court noted plaintiffs had initiated the action in April
2020, and the matter was pending for over four years. It highlighted there had
also been "motion practice, dismissals, [a] default[ entered,]" and "attempts to
vacate default." Regarding the default entered against Ghaly, the court noted
"that the answering pleading of . . . [Ghaly] [wa]s stricken and default [wa]s
entered" for his failure to appear for trial. The court explained that EIG
remained in default as an attorney and had not filed an appearance on behalf of
the LLC. See R. 1:21-1(c).
Further, the court noted that after default was entered in October 2023,
Ghaly moved to vacate the default, which the court denied without prejudice
A-4035-24
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based on deficiencies. Ghaly argued the matter was previously consolidated
with a Special Civil Part action he had initiated and he had filed a counterclaim
in this Law Division action. The court explained that the default entered against
Ghaly applied to his affirmative claims as well. Plaintiffs' attorney explained
that Ghaly failed to appear for trial, there was never a request to adjourn the
trial, and plaintiffs had prepared to proceed to trial. Regarding Ghaly's assertion
that he sought an adjournment, plaintiffs' attorney represented there was no
request received. After reviewing eCourts 5 and discussing the procedural
history with staff, the court found there was "no record of any request of an
adjournment for the [October 4, 2023] trial date."
When the court began the proof hearing, Ghaly requested an adjournment
to retain an attorney. The court granted his request and plaintiffs ' attorney
inquired if the matter could proceed by "a motion for judgment on the papers
[for a sum certain] rather than" a "proof[] hearing," explaining his client now
resided in Pennsylvania. The court advised that the parties' motions would be
heard on December 20, 2024. Afterwards, Ghaly apparently filed a motion to
vacate the default entered against him.
5
eCourts is a web-based application that allows attorneys to electronically file
documents with the courts and provides attorneys and the public with access to
case information. See https://www.njcourts.gov/attorneys/ecourts.html.
A-4035-24
5
On January 17, 2025, the parties appeared before the court for a virtual
motion hearing. The court explained it had provided Ghaly a second
adjournment after the listed December 2024 date because he alleged a medical
issue and represented he was hiring an attorney. Ghaly advised the court he had
an accident and was "[un]able to get" representation. Further, Ghaly alleged
that default was entered only against EIG and not him "personal[ly.]" The court
denied his motion to vacate default, finding there was neither proof Ghaly had
asked for an adjournment of the October 2023 trial date nor evidence "show[ing]
a viable excuse" for his nonappearance. The court thereafter permitted plaintiffs
to proceed on their motion for a final judgment for a sum certain against
defendants.
During argument, plaintiffs' attorney represented that the lease "was
signed between the parties." He argued plaintiffs sustained financial losses from
having to vacate the home due to uninhabitable conditions and that they were
"seeking double damage on the security deposit and treble damage under the "
New Jersey Consumer Fraud Act ("CFA"), N.J.S.A. 56:8-1 to -228. Plaintiffs'
attorney asserted plaintiffs were owed the $4,050 security deposit, first month's
rent of $2,700, and $1,000 in attorney's fees. "[A] group of handwritten
receipts," totaling $1,430, were referenced by plaintiffs' attorney, who argued
A-4035-24
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they reflected plaintiffs' "cash payments" spent "in order to clean the property
and make it in move-in condition." Additionally, plaintiffs claimed damages for
furniture purchased on a "layaway type of plan," in the amounts of $2,681.89,
$2,222.30, $2,828.66, $2,456.20, and $2,434.63, but they did not provide legible
receipts. The court heard no testimony regarding any amounts claimed.
Plaintiffs' attorney asserted plaintiffs had total damages in the amount of
$17,753.68, which did not include the amount of $8,100 for doubling the
security deposit of $4,050, but consisted of the first month's rent of $2,700,
attorney's fees of $1,000 for the frivolous eviction Ghaly filed, the furniture
costs of $12,623.68, and the cleaning costs of $1,430. However, plaintiffs'
attorney acknowledged plaintiffs' "certification" "d[id] not tabulate" the
amounts. Additionally, because plaintiffs had not submitted the furniture
receipts, the court ordered plaintiffs' attorney to "email" the receipts not
provided.6
Regarding plaintiffs' damages pursuant to the CFA, plaintiffs' attorney
argued Ghaly was responsible for the amounts because he was "a licensed real
estate" salesperson in New Jersey and a "highly seasoned landlord" who
6
It is unclear from the record if plaintiffs' attorney later forwarded the receipts
for furniture on eCourts and if the court and Ghaly received them.
A-4035-24
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personally made fraudulent claims and misrepresentations to plaintiffs, which
were recounted in Castanos' certification.
Plaintiffs maintained Ghaly misrepresented the condition of the home and
that they could sublet "the basement" to assist in paying the rent. Plaintiffs
"subsequently learned . . . from the City of Bayonne['s] . . . [z]oning [o]ffice[r]"
that subletting was not permitted. They asserted that when the lease began,
residents were living in the home. Upon moving in, plaintiffs found the place
infested with cockroaches, repairs were not completed, and no parking was
available. Based on their ascertainable losses of $17,753.68, plaintiffs argued
for treble damages of $53,261.04. Plaintiffs' attorney also posited the court
should add $8,100 for double the amount of the security deposit, resulting in a
total final judgment amount of $61,361.04. Plaintiffs additionally requested to
submit a certification of services for an amount of attorney's fees incurred.
The court advised Ghaly that he was in default regarding "[t]he question
of liability" but could provide "specific objections to [plaintiffs' claimed]
amounts." Ghaly admitted signing the lease "agreement with . . . [plaintiffs]"
but argued plaintiffs suffered no losses as an "inspect[ion of] the property"
occurred "with . . . [plaintiffs] three times." He explained plaintiffs were also
provided a garage and a vacant driveway with the rental home. When Ghaly
A-4035-24
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began to address the basement, the court stopped him as his arguments were
addressing liability issues. The court then found Ghaly was "not prepared to . . .
oppose the calculation of the amount of damages" and "mut[ed]" him for "not
cooperating."
The court issued an order accompanied by an oral statement that "the
matter [was] ending" there and the amount of the final judgment entered was
$61,361.04. The court further ordered plaintiffs would receive "reasonable
attorney's fees . . . in an amount to be determined upon the submission of a
certification of services."
Defendants thereafter retained an attorney, who filed an appearance, and
moved for reconsideration and to vacate the final judgment. Defendants'
attorney acknowledged this matter had a tortured history and that default was
entered against Ghaly because he never contacted the court for a trial
adjournment or had done so too late. Regarding the final judgment, defendants'
attorney argued the court should vacate the "$61,000 judgment" awarded in the
interest of justice because there was only an "$8,000 deficiency" alleged. He
further contended that the judgment entered against defendants "just . . . [did
not] make any sense" and "should [not] have been entered directly against . . .
Ghaly" as the "pleading itself d[id not] talk about piercing the corporate veil."
A-4035-24
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As to the requested damages, defendants' attorney stated that the complaint
provided for compensatory damages of $19,000, but there was "never really any
elucidation of those damages." Plaintiffs' attorney countered that individual
liability against Ghaly was supported under the CFA, it was too late to vacate
the judgment, and defendants' conduct "was clearly sanctionable."
After oral argument, the court found the parties had been provided the
"opportunity to present proofs and evidence, and . . . [Ghaly] had the opportunity
to object to any proofs." It also questioned Ghaly's demeanor at the prior
appearance. While Ghaly has not provided us with a copy of the court's order,
the record indicates the court denied defendants' motion.
On appeal, Ghaly contends the court's final judgment should be vacated
because: plaintiffs improperly named him individually when the property was
rented to plaintiffs by EIG; and default resulted from an unavoidable court
conflict and not Ghaly's willful non-appearance.
II.
Where a defendant has defaulted, a final judgment may be entered either
by the clerk of the court upon the plaintiff's demonstration of a sum certain or
by the court after a motion is filed. R. 4:43-2(a) and (b). The court, "on its own
motion or at the request of a party on notice to the defaulting defendant . . . ,
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may conduct such proof hearings . . . as it deems appropriate." R. 4:43-2(b).
When a trial court holds a Rule 4:43-2(b) proof hearing, we defer to the trial
court's factual findings. See Romero v. Gold Star Distrib., LLC, 468 N.J. Super.
274, 302 (App. Div. 2021). We review a trial court's legal determinations de
novo. See EnviroFinance Grp. LLC v. Env't Barrier Co., 440 N.J. Super. 325,
343-44 (App. Div. 2015).
In the context of a proof hearing, "trial courts have been directed to view
a plaintiff's proofs 'indulgently' . . . and the general practice of our courts has
been to require only a prima facie case." Heimbach v. Mueller, 229 N.J. Super.
17, 20 (App. Div. 1988); Kolczycki v. City of East Orange, 317 N.J. Super. 505,
514 (App. Div. 1999). "A successful plaintiff in any default judgment can be
required to furnish some proof on the merits of the issues to show entitlement to
the relief demanded." Slowinski v. Valley Nat'l Bank, 264 N.J. Super. 172, 183
(App. Div. 1993). Generally, a plaintiff is required "to furnish proof on the issue
of damages as well as liability." Johnson v. Johnson, 92 N.J. Super. 457, 464
(App. Div. 1966). However, "a judge might properly not require a plaintiff to
prove liability in a case where the defaulting defendant exclusively controls key
evidence." Morales v. Santiago, 217 N.J. Super. 496, 505 (App. Div. 1987).
A-4035-24
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A plaintiff is entitled to "all of the damages" that can be "prove[n] by
competent, relevant evidence." Heimbach, 229 N.J. Super. at 28. We review
"on appeal . . . whether there is substantial evidence in the record to support the
trial court's factual findings and legal conclusions of law." Romero, 468 N.J.
Super. at 302. Furthermore, the court's "[f]actual findings must establish the
entitlement to relief." EnviroFinance Grp., 440 N.J. Super. at 343.
III.
Ghaly argues the court erred in entering the final judgment against him as
plaintiffs leased the Bayonne property from EIG, which is a limited liability
company. He asserts that a "limited liability company is a separate legal entity,"
"members are generally not personally liable for [its] obligations," and the
record does not "reflect findings justifying [his] personal liability." Further,
Ghaly contends the final judgment should be vacated because the court should
not have entered default against him in October 2023 as he had a "scheduling
conflict that prevented [his] appearance" at trial.7
7
We decline to address Ghaly's arguments that the court improperly entered
default against him in 2023. As we previously noted, he did not appeal the
court's order entering default nor has he provided us with the order and
transcript.
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At the proof hearing, plaintiffs attempted to establish a sum certain
without testifying. Plaintiffs' attorney represented the amounts plaintiffs
incurred and referenced motion exhibits. Problematically, plaintiffs ' attorney
conceded during the hearing that plaintiffs' proofs did not have the total amounts
"tabulate[d]" and certain receipts were not submitted. After a review of the
hearing transcript, we cannot fairly discern what evidence the court relied upon
to determine the final judgment amount because no factual findings were made.
Specifically, plaintiffs' attorney argued on plaintiffs' CFA claim that the
court should award damages in the amount of $17,753.68, based on multiple
alleged losses, and the amount should be trebled. Plaintiffs' attorney then
represented the security deposit should also be doubled. Again, plaintiffs did
not testify as to the amounts, and support for some of the amounts was notably
not submitted prior to the hearing. Precluding our meaningful review, the court's
only final judgment finding was that it was "entering judgment in th[e] matter
in the amount of $61,361.04."
We have held "that 'an articulation of reasons is essential to the fair
resolution of a case.'" Raspantini v. Arocho, 364 N.J. Super. 528, 532 (App.
Div. 2003) (quoting Schwarz v. Schwarz, 328 N.J. Super. 275, 282 (App. Div.
2000)). Further, "appellate review is impeded when a trial court fails to 'state
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its factual findings and conclusions of law on the record as required by Rule 1:7-
4(a).'" Parke Bank v. Voorhees Diner Corp., 480 N.J. Super. 254, 266 (App.
Div. 2024) (quoting Lakhani v. Patel, 479 N.J. Super. 291, 297-98 (App. Div.
2024)). A "trial [court] is required to 'state clearly its factual findings and
correlate them with the relevant legal conclusions.'" Gnall v. Gnall, 222 N.J.
414, 428 (2015) (quoting Curtis v. Finneran, 83 N.J. 563, 570 (1980)).
For these reasons, we are constrained to vacate the court's final judgment
amount entered and to remand this matter for additional findings as to Ghaly's
liability and the amount of damages awarded to plaintiffs. The court shall
address the amount of final judgment and what proofs were timely provided by
plaintiffs, permitting further argument. It is well established that when "the
record is unclear as to . . . the trial court['s]" findings in entering final judgment
as to liability and damages, a remand is appropriate. Romero, 468 N.J. Super.
at 304.
Finally, we are mindful that because default was entered against Ghaly,
the court had the discretion to determine the sufficiency of plaintiffs' prima facie
showing of liability. Nevertheless, the court was required to provide its
conclusions on Ghaly's liability. In sum, on remand, the court is directed to
provide sufficient findings as to plaintiffs' requested damages, citing the
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evidence relied on in reaching the final judgment amount, and its conclusions of
law.
Vacated and remanded for further proceedings consistent with this
opinion. We do not retain jurisdiction.
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