Rachel Kranz v. Steven Schuss, M.D. , 447 N.J. Super. 168 ( 2016 )


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  •                 NOT FOR PUBLICATION WITHOUT THE
    APPROVAL OF THE APPELLATE DIVISION
    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-4918-13T1
    RACHEL KRANZ, a minor by
    her Guardian ad Litem,
    SHELLY KRANZ and JONATHAN                APPROVED FOR PUBLICATION
    KRANZ, Individually,                         August 31, 2016
    Plaintiffs-Appellants,                APPELLATE DIVISION
    v.
    STEVEN SCHUSS, M.D., and
    TEANECK PEDIATRICS, P.A.,
    Defendants-Respondents.
    __________________________________________________
    Argued October 26, 2015 – Decided August 31, 2016
    Before   Judges      Messano,     Simonelli     and
    Carroll.
    On appeal from the Superior Court of New
    Jersey, Law Division, Bergen County, Docket
    No. L-2066-12.
    Michael B. Zerres argued the cause for
    appellants (Blume, Donnelly, Fried, Forte,
    Zerres & Molinari, P.C., attorneys; Mr.
    Zerres and Robin A. Donato, on the briefs).
    Thomas J. Pyle, Jr., argued the cause for
    respondents (Post, Polak, Goodsell, MacNeill
    & Strauchler, P.A., attorneys; Jay Scott
    MacNeill, of counsel; Mr. Pyle, on the
    brief).
    The opinion of the court was delivered by
    MESSANO, P.J.A.D.
    "The Comparative Negligence Act and the Joint Tortfeasors
    Contribution   Law    comprise       the    statutory       framework   for    the
    allocation of fault when multiple parties are alleged to have
    contributed to the plaintiff's harm."              Town of Kearny v. Brandt,
    
    214 N.J. 76
    , 96 (2013).            In Young v. Latta, 
    123 N.J. 584
    , 586
    (1991), the Court held that, "in every case in which there are
    multiple   defendants,        whether       or    not   a     cross-claim      for
    contribution   has    been    filed,"       a    non-settling    tortfeasor      is
    entitled to a credit reducing any judgment by the degree of
    fault allocated by the jury to a settling tortfeasor.                   The Court
    cited extensively to its seminal case of Judson v. Peoples Bank
    & Trust Company of Westfield, 
    17 N.J. 67
    , 92-94 (1954), aff'd on
    reconsideration, 
    25 N.J. 17
    , 34 (1957), and Judson's historical
    analysis of the Joint Tortfeasors Contribution Law (the JTCL),
    N.J.S.A.   2A:53A-1   to     -5.     
    Id. at 590-91.
         Justice    Clifford
    wrote:
    Judson . . .       provides two principles
    important to our implementation of the
    [JTCL]: that a settling tortfeasor shall
    have no further liability to any party
    beyond that provided in the terms of
    settlement,   and    that   a    non-settling
    defendant's right to a credit reflecting the
    settler's fair share of the amount of the
    verdict—regardless of the actual settlement
    —represents the judicial implementation of
    the statutory right to contribution.
    [Id. at 591 (emphasis added).]
    2                                A-4918-13T1
    After Judson, the "Court [] held that a non-settling defendant
    does not get an increased credit if a settling tortfeasor pays
    more than his or her pro rata share of the liability."                       
    Ibid. (citing Theobald v.
    Angelos, 
    44 N.J. 228
    (1965)).
    The subsequent passage of the Comparative Negligence Act
    (CNA), N.J.S.A. 2A:15-5.1 to -5.8, did not "sap[] the vitality
    of those principles."         
    Id. at 592.
            "Pursuant to the [CNA], the
    finder    of    fact   must   make   an       allocation   of   causative    fault
    between settling and non-settling defendants so that the court
    can calculate the amount of the credit due [to] the non-settler
    even     though    the   non-settler          cannot   pursue    a   claim    for
    contribution against the settler."                 
    Ibid. As Judge Pressler
    explained nearly two decades ago,
    the effect of the [CNA] was to replace the
    former   pro   rata   liability   of   joint
    tortfeasors under the [JTCL], . . . with the
    obligation of each tortfeasor to pay damages
    in accordance with its own adjudicated
    percentage of fault.   A necessary corollary
    of this scheme is to deny to comparative-
    negligence joint tortfeasors a reduction of
    their liability based on a plaintiff's
    pretrial settlement with a defendant who is
    never found to be liable at all.       Thus,
    under the comparative-negligence scheme, a
    plaintiff is entitled to retain the proceeds
    of the pretrial settlement as well as the
    full jury verdict as allocated among all
    other defendants.
    . . . .
    3                             A-4918-13T1
    [U]nless    the   settling   defendant's
    percentage of liability is adjudicated at
    trial, there is simply no right in the
    adjudicated tortfeasors to a reduction of
    their own separately-allocated responsibility
    for the verdict.
    [Johnson v. Am. Homestead Mortg. Corp., 
    306 N.J. Super. 429
    , 436-37 (App. Div. 1997).]
    In this appeal, we are called upon to consider whether the
    motion judge correctly decided that defendants were entitled to
    a pro tanto credit for the amount plaintiffs obtained by way of
    an   out-of-state    settlement    with      tortfeasors    who   were    never
    defendants in this litigation and could not have been sued in
    the courts of this State because New Jersey lacked personal
    jurisdiction.       The   issue   is   one     of   first   impression.      We
    conclude that the principles outlined above apply and therefore
    reverse.
    I.
    The record is undisputed.             Rachel Kranz was born in New
    York in December 2003 and came under the medical care of a
    series of doctors in New York.             In January 2005, Rachel and her
    family moved to New Jersey, where she began receiving pediatric
    care from defendant, Steven Schuss, M.D., and his affiliated
    practice group, Teaneck Pediatrics (collectively, defendants).1
    1
    To avoid confusion, we sometimes use the first names of the
    plaintiffs. We intend no disrespect by this informality.
    4                             A-4918-13T1
    At   Rachel's      medical      check-up       in    January        2006,     Dr.      Schuss
    suspected that she suffered from left hip dysplasia.                                     These
    suspicions were confirmed, and Rachel underwent open reduction
    surgery and a second follow-up surgery to correct the condition.
    On   July    30,    2007,     with   her        mother     Shelley         acting      as
    guardian    ad    litem    (GAL),    Rachel         commenced       suit    in    New     York
    alleging medical malpractice against the hospital of her birth
    and several doctors (the New York defendants) who had attended
    to   her   prior    to    the   family's       move      to   New    Jersey,        claiming
    damages resulting from the failure to diagnose the dysplasia.
    On April 7, 2011, the New York court entered an order approving
    a structured settlement in the amount of $2 million (the New
    York settlement).
    On March 12, 2012, once again with her mother acting as
    GAL, and now joined by her father, Jonathan, as a plaintiff on
    his own behalf, Rachel filed a complaint in New Jersey alleging
    medical    negligence      by   defendants          in   their      failure      to    timely
    diagnose and treat Rachel's dysplasia.                    It suffices to say that
    plaintiffs' experts opined that defendants' failure to diagnose
    the dysplasia earlier was a breach of the professional standard
    of care and likely increased the probability that Rachel would
    require open reduction surgery to address her condition and that
    she would likely develop arthritis in later life.                           At least one
    5                                          A-4918-13T1
    of   plaintiffs'        experts       opined     in   his    report     that     certain
    findings,     in    particular        the   asymmetry       of    Rachel's     gait    and
    rotation of her hips, most likely would have been present at the
    age of six months, i.e., before she came under defendants' care.
    Defendants'        experts,     to    the   contrary,       essentially        concluded
    there was no breach of professional standards because Rachel's
    dysplasia was not clinically detectable until age two, and Dr.
    Schuss      properly      and     timely        diagnosed        the   condition       and
    recommended further treatment as appropriate.
    After discovery ended in December 2013, defendants sought
    an order providing them with a credit of $2 million against any
    judgment returned in plaintiffs' favor.                     Plaintiffs opposed the
    motion and cross-moved for an order barring defendants from 1)
    serving any new expert reports, and 2) referring to, or offering
    evidence of, the New York settlement at trial.
    Acknowledging that "[t]he case law in New Jersey doesn't
    seem to give [] any clear definitive answer as to what to do in
    a    case   like     we   have       here,"      defense     counsel     argued       that
    plaintiffs were seeking damages for "the exact same harm" as in
    the New York litigation.              Plaintiffs' counsel also acknowledged
    the unique procedural circumstances.
    Addressing the judge's concern of a potential "windfall,"
    particularly       in   light    of    plaintiffs'      application       to    bar   any
    6                                   A-4918-13T1
    further defense expert reports or any mention of the New York
    settlement,      plaintiffs'        counsel     stated,        "I    don't      know     that
    there's any way to truly avoid a windfall . . . .                                    However,
    there [are] public policy decisions in New Jersey saying that
    where it really truly is unavoidable like it is here, it should
    inure [to] the injured party."                 Counsel also acknowledged that,
    separate from any apportionment between the New York defendants
    and    these     defendants,        the   jury     might        need      to     apportion
    responsibility      for     the   ultimate      consequence          of   any    delay      in
    diagnosing       Rachel's     injury.          See,   e.g.,         Flood       v.     Aluri-
    Vallabhaneni,       431      N.J.     Super.      365,     372-79         (App.         Div.)
    (explaining the burden of proof and apportionment in failure to
    diagnose medical malpractice cases), certif. denied, 
    216 N.J. 14
    (2013).
    Recognizing the lack of any precedent squarely on point and
    without an extensive statement of reasons, the judge concluded
    on "general principles of equity . . . that it would be a
    windfall to the plaintiff[s]" if a $2 million credit was not
    applied to any verdict in their favor.                     The judge entered the
    February 28, 2014 order under review that provided defendants
    with    a   $2     million     credit     "based      upon          the   plaintiffs[']
    previously       pending    and     now   resolved       New    York      State       action
    involving the same claims of negligence and compensating the
    7                                         A-4918-13T1
    plaintiff for the same injuries that are at issue in the instant
    litigation."      The order further stated that $2 million dollars
    would be deducted from any verdict "rendered by a jury against
    [d]efendants," who "shall only be responsible for the remainder
    of the verdict after the credit is applied . . . ."2
    The parties thereafter appeared before the Civil Division
    presiding      judge,    and     plaintiffs       voluntarily      dismissed     their
    complaint pursuant to an agreement placed on the record, which
    we   have   reviewed.          Despite   the          voluntary   dismissal    of   the
    complaint, we conclude that the February 28, 2014 interlocutory
    order is reviewable as of right.                 See Janicky v. Point Bay Fuel,
    Inc., 
    410 N.J. Super. 203
    , 207 (App. Div. 2009) (explaining that
    even a consent judgment may be appealable as of right if an
    "economic stake" hinges on resolution of the appeal).
    II.
    Because the appeal presents a purely legal issue, we review
    de novo the judge's decision to give defendants a pro tanto
    credit   for    the     amount   of   the       New    York   settlement.      
    Brandt, supra
    , 214 N.J. at 96.
    For purposes of the JTCL, "'joint tortfeasors' means two or
    more persons jointly or severally liable in tort for the same
    2
    The judge did not address the cross-motion and no separate
    order was entered.
    8                                 A-4918-13T1
    injury to person or property, whether or not judgment has been
    recovered against all or some of them."            N.J.S.A. 2A:53A-1.
    Where injury or damage is suffered by any
    person as a result of the wrongful act,
    neglect or default of joint tortfeasors, and
    the person so suffering injury or damage
    recovers a money judgment or judgments for
    such injury or damage against one or more of
    the joint tortfeasors, either in one action
    or in separate actions, and any one of the
    joint tortfeasors pays such judgment in
    whole or in part, he shall be entitled to
    recover contribution from the other joint
    tortfeasor or joint tortfeasors for the
    excess so paid over his pro rata share
    . . . .
    [N.J.S.A. 2A:53A-3 (emphasis added).]
    The right to contribution flows from "'joint liability and not
    joint, common or concurrent negligence.'"               Cherry Hill Manor
    Assocs. v. Faugno, 
    182 N.J. 64
    , 72 (2004) (quoting Farren v.
    N.J. Tpk. Auth., 
    31 N.J. Super. 356
    , 362 (App. Div. 1954)).
    "'When   one   defendant    settles,       the   remaining   codefendant   or
    codefendants are chargeable with the total verdict less that
    attributable   to   the    settling    defendant's     percentage   share.'"
    Cockerline v. Menendez, 
    411 N.J. Super. 596
    , 618 (App. Div.)
    (quoting Cartel Capital Corp. v. Fireco of N.J., 
    81 N.J. 548
    ,
    569 (1980)), certif. denied, 
    201 N.J. 499
    (2010).
    The CNA, in turn, requires the fact finder to determine
    "[t]he extent, in the form of a percentage, of each party's
    negligence or fault.       The percentage of negligence or fault of
    9                            A-4918-13T1
    each    party    shall   be    based     on     100%   and      the   total    of    all
    percentages of negligence or fault of all the parties to a suit
    shall    be    100%."     N.J.S.A.       2A:15-5.2(a)(2)         (emphasis     added).
    "[T]he statutes' objectives are best served when the factfinder
    evaluates      the   fault    of   all   potentially      responsible       parties."
    
    Brandt, supra
    , 214 N.J. at 102.                 Simply put, "[t]he law favors
    apportionment even where the apportionment proofs are imprecise,
    allowing only for rough apportionment by the trier of fact."
    Boryszewski v. Burke, 
    380 N.J. Super. 361
    , 384 (App. Div. 2005),
    certif. denied, 
    186 N.J. 242
    (2006).
    Plaintiffs argue that the motion judge accorded defendants
    a "windfall," because given the statutory scheme, there is no
    legal authority for a pro tanto credit equal to the amount of
    the    New    York   settlement.         They   note     that    if   the     New   York
    defendants      were    parties     to   the     suit,    defendants        would    not
    receive a credit for the full settlement amount, but rather
    would be entitled to a credit based only upon an allocation of
    fault to the New York defendants.3
    3
    Plaintiffs also contend that their cross-motion to bar any
    further discovery and bar defendants from introducing any
    evidence of the New York settlement should have been granted.
    As a result, defendants, who have not produced any proof of the
    New York defendants' liability, are not entitled to any
    allocation of fault or resulting credit.    We deal with these
    issues later in this opinion.
    10                                   A-4918-13T1
    Defendants     argue       the    collateral         source     rule,     N.J.S.A.
    2A:15-97,    and    general      notions        of    public    policy      support    the
    judge's decision.         We disagree.
    The "primary effect" of the collateral source rule "was to
    eliminate double recovery to plaintiffs."                       Perreira v. Rediger,
    
    169 N.J. 399
    , 409 (2001).              However, by its terms, the collateral
    source rule does not apply when a plaintiff receives benefits
    for injuries caused by a joint tortfeasor.                     N.J.S.A. 2A:15-97.
    Defendants     argue       the    New     York    defendants     could     not    be
    "joint tortfeasors" because they "were not, and could never have
    been . . . parties to the New Jersey action."                          We discuss the
    significance    of       that   below.        However,         defendants     urged    the
    motion judge to grant them a pro tanto credit precisely because
    plaintiffs were seeking damages for "the exact same harm" as
    alleged in the New York litigation.                      The judge accepted this
    argument,    because       his      order       provided       that    the     New    York
    litigation     "involv[ed]        the     same        claims     of   negligence       and
    compensat[ed] the plaintiff for the same injuries that are at
    issue in the instant litigation."                    Although defendants deny any
    negligence, it would appear from the record before us that the
    New   York     defendants         and     defendants           are    not     successive
    tortfeasors,       but     rather       joint        tortfeasors,      whose     alleged
    11                                   A-4918-13T1
    collective     negligence          delayed     the   diagnosis      of        Rachel's
    dysplasia.4
    We     also     reject        defendants'   public        policy       arguments.
    Defendants argue that under New York law, they would be entitled
    to a pro tanto credit for the settlement plaintiffs reached with
    the New York defendants.             See Williams v. Niske, 
    81 N.Y.2d 437
    ,
    440 (1993) (explaining New York's General Obligations Law § 15-
    108(a)).     Defendants contend that permitting a pro tanto credit
    discourages forum shopping, such as occurred here.                      However, the
    statutory     interplay       we    described    above    is    evidence       of   New
    Jersey's    public    policy,       and   granting   defendants         a   pro   tanto
    credit is contrary to that policy.
    We     must     address,        nevertheless,       defendants'          implicit
    argument that apportionment under N.J.S.A. 2A:15-5.2(a)(2) is
    inappropriate because the New York defendants could not have
    been joined in the same suit.              In other words, they could never
    4
    As noted, one of plaintiffs' experts opined in his report that
    certain symptoms of Rachel's dysplasia were observable before
    defendants began their care.    The record does not include the
    expert reports from the New York litigation; however, the
    "verified   bill  of   particulars"  from   that  suit   includes
    allegations that the New York defendants, among other things,
    failed to "timely recognize the presence of left hip dysplasia."
    Because we are reversing and requiring the re-opening of
    discovery, we hasten to add that our conclusion that the New
    York defendants and defendants are joint tortfeasors is based
    solely upon the record before us, and we do not foreclose a
    contrary conclusion if further discovery proves otherwise.
    12                                  A-4918-13T1
    have been parties.            See 
    ibid. (emphasis added) (the
    fact finder
    must determine the "extent, in the form of a percentage, of each
    party's negligence or fault").
    We   start   by    recognizing      that    our    courts        have     permitted
    apportionment          of    fault    by    the     factfinder        in     a    variety      of
    circumstances, even though a joint tortfeasor is no longer a
    party in the suit.              For example, as already noted, in 
    Young, supra
    , 123 N.J. at 596, the Court held that, even in the absence
    of    a    specifically-pled         cross    claim    for       contribution,          a   non-
    settling tortfeasor was entitled to a credit based upon the
    allocation of fault to the settling defendant who was no longer
    in the litigation.             In Brodsky v. Grinnell Haulers, Inc., 
    181 N.J. 102
    ,   116    (2004),      the    Court    similarly        held       that   a   non-
    settling tortfeasor was entitled to have any award reduced by
    the       percentage    of    fault    attributable         to    a    joint       tortfeasor
    dismissed from the litigation due to a discharge in bankruptcy.
    In 
    Brandt, supra
    , 214 N.J. at 103-04, the Court held that the
    non-settling defendants were entitled to have the jury allocate
    fault as to the defendants dismissed from the litigation because
    of the statute of repose.                  N.J.S.A. 2A:14-1.1(a).                And, in Burt
    v. West Jersey Health Systems, 
    339 N.J. Super. 296
    , 307-08 (App.
    Div. 2001), we held that the plaintiff's recovery should be
    reduced by the percentage of fault allocated to those defendants
    13                                        A-4918-13T1
    dismissed from the litigation because the plaintiff failed to
    comply with the Affidavit of Merit Statute, N.J.S.A. 2A:53A-26
    to -29.
    In some cases, however, the joint tortfeasor's absence from
    the suit at its inception has barred a defendant's right to
    apportionment.         See, e.g., Ramos v. Browning Ferris Indus. of S.
    Jersey,       Inc.,     
    103 N.J. 177
    ,        184     (1986)     (no    right        to
    apportionment against an employer immune from liability under
    the Workers' Compensation Act); Bencivenga v. J.J.A.M.M., Inc.,
    258    N.J.     Super.        399,       406-07        (App.    Div.)     (no     right       to
    apportionment         against        a     fictitiously-named             defendant          not
    identified or served prior to trial), certif. denied, 
    130 N.J. 598
    (1992); but see 
    Cockerline, supra
    , 411 N.J. Super. at 617-19
    (concluding       that,         based       upon         public     policy        concerns,
    apportionment         was   appropriate           as    against    fictitious          phantom
    drivers who allegedly caused the accident).                             Apportionment was
    not permitted in Ramos and Bencivenga because "as a matter of
    law, [the] defendant[s] could not under any circumstances be []
    joint tortfeasor[s] under [the JTCL]."                         
    Brandt, supra
    , 214 N.J.
    at 102 (citing 
    Brodsky, supra
    , 181 N.J. at 115).
    In this case, the New York defendants were never parties to
    this suit, nor could they have been, because it is undisputed
    that    New     Jersey        lacked      personal           jurisdiction       over      them.
    14                                        A-4918-13T1
    Plaintiffs, however, argue that the circumstances are "almost-
    identical" to the facts presented in Carter v. University of
    Medicine and Dentistry of New Jersey, 
    854 F. Supp. 310
    (D.N.J.
    1994).
    In     Carter,       plaintiffs       filed    two   separate       but    concurrent
    actions.     
    Id. at 311.
             One, filed in the Superior Court for the
    District    of    Columbia,        alleged      the   failure     on    the    part    of   a
    Washington, D.C., doctor to diagnosis and treat their infant
    son's congenital brain condition while under the doctor's care,
    i.e., after he was seven months of age.                        
    Id. at 311-12.
              The
    parents filed a second suit in federal district court in New
    Jersey     making       similar      claims       against      New      Jersey    medical
    providers for the period of time before the family moved to
    Maryland, while their son was under their care, i.e., from birth
    to the age of six and one-half months.                            
    Ibid. Plaintiffs settled with
    the Washington, D.C., physician, and the New Jersey
    defendants       moved     in    limine    to     have   the     jury      apportion    the
    "causative        fault         between    the        settling       and      nonsettling
    defendants."       
    Id. at 312.
           The plaintiffs sought to preclude the
    defendants       from    asserting        the     Washington,     D.C.,       doctor    was
    negligent    or     that    his    negligence         contributed       to    their   son's
    condition.       
    Id. at 311.
    15                                   A-4918-13T1
    Examining at length the JTCL, the CNA and precedent we
    cited above, the judge rejected the plaintiffs' argument that
    apportionment was improper because the settling doctor was "not
    technically a party to this lawsuit and hence cannot be a joint
    tortfeasor within the meaning of the relevant statutes."                  
    Id. at 314.
       The judge concluded that the "splitting of the action for
    purely jurisdictional purposes does not vitiate [the Washington,
    D.C., doctor's] status as a settling defendant insofar as this
    action is concerned."        
    Id. at 315.
           The judge said the claims
    against   all   the   defendants      were    "identical   and   inextricably
    interwoven," explaining:
    [D]istilled to its purest essence, the New
    Jersey    action   concerns     the    alleged
    misdiagnosis   of  the   infant    plaintiff's
    hydrocephalic condition from birth to [six
    and one-half] months of age, while the
    Washington action was predicated on a simple
    extension of that purported misdiagnosis
    from seven to eighteen months.    Thus, given
    the fact that the Washington, D.C. lawsuit
    is distinguishable from the present action
    only by jurisdictional happenstance, it
    logically (and equitably) follows that the
    jury in this case should be entitled to
    consider the relative fault of the settling
    Washington, D.C. physician.
    [Ibid.]
    Defendants'    attempts   to     distinguish    Carter      are    wholly
    without   merit.      They   note   the      Washington,   D.C.,    settlement
    agreement specifically permitted a reduction in damages in the
    16                                A-4918-13T1
    New Jersey litigation by the percentage of liability attributed
    to the settling doctor, that certain experts were the same in
    both    cases   and    the     suits    were      pending     at    the    same    time.
    However, the JTCL and the CNA permit the non-settling tortfeasor
    a reduction of damages without regard to whether it is expressly
    permitted by a settlement agreement.                  There is nothing in this
    record to demonstrate defendants are unable to obtain the name
    of plaintiffs' experts in the New York action and depose them,
    thereby      establishing      their    status       as   joint     tortfeasors       and
    obtaining the benefit of apportionment under the JTCL and the
    CNA.     Although this case was not prosecuted concurrently with
    the New York case, as a minor, Rachel's cause of action did not
    have to be commenced in New Jersey until two years after she
    turned    eighteen     years    of     age,      N.J.S.A.    2A:14-2.5        We   might
    conclude      the     lack     of    concurrent       litigation          mattered    if
    defendants were in fact prejudiced by the delay in prosecuting
    the    New   Jersey    suit,    but    we     fail   to     see    any    prejudice   to
    defendants' contribution rights.                 See, e.g., Mettinger v. Globe
    Slicing Mach. Co., 
    153 N.J. 371
    , 387 (1998) (a defendant's claim
    5
    We assume the claim was not for medical malpractice resulting
    in "injuries sustained at birth," which has a different
    limitations period. N.J.S.A. 2A:14-2(b).
    17                                 A-4918-13T1
    for contribution does not accrue until the plaintiff recovers a
    judgement against it).6
    The lack of actual prejudice is compelling.                 In Yousef v.
    General Dynamics Corp., 
    205 N.J. 543
    , 548 (2011), the Court
    considered whether a suit brought in New Jersey by New Jersey
    residents injured while on a business trip in South Africa due
    to the alleged negligence of the defendant corporation and its
    employee-driver,      a     resident   of    Florida,   should     be     dismissed
    under the doctrine of forum non conveniens.                      The defendants
    argued that the suit should have been brought in South Africa.
    
    Id. at 551.
    Although the facts involving the accident were disputed,
    the    front-seat    passenger    of   the    car   said   that    a    stop     sign
    regulating    the     unilluminated         intersection   where        the     crash
    occurred     was    bent,     making   it     difficult    to     see.          
    Ibid. Defendants also obtained
        information      from    a     South       African
    witness corroborating the condition of the sign and stating that
    the intersection was the site of frequent accidents.                          
    Id. at 552.
       Additionally, there were provisions of South African law
    that mostly favored the defendants and would have the likely
    result of limiting any award of damages.             
    Id. at 553.
    6
    Defendants have not, for example, claimed that they would be
    unable to obtain contribution in a subsequent federal diversity
    action.
    18                                  A-4918-13T1
    We   affirmed      the   trial      court's    decision      denying    the
    defendants'   motion   to    dismiss.      
    Id. at 555-56.
        The     Court
    conducted an exhaustive review of the equitable considerations
    that underpin the doctrine of forum non conveniens, and noting
    "[a]t least presumptively, a plaintiff is entitled to his choice
    of forum," the Court concluded that the "defendants failed to
    carry their burden of demonstrating that New Jersey                  [was] a
    'demonstrably inappropriate' forum."         
    Id. at 567.
    Addressing specifically the defendants' argument that they
    were prejudiced by the lack of ability to implead the South
    African municipality as a third-party defendant, the Court said:
    Because   the   South     African    municipality
    cannot be impleaded as a party, New Jersey's
    [CNA], which only applies to "parties," does
    not permit allocation of fault between
    defendants and the non-party municipality.
    See     N.J.S.A.      2A:15-5.2(a)(2)        ("The
    percentage of negligence or fault of each
    party shall be based on 100% and the total
    of all percentages of negligence or fault of
    all the parties to a suit shall be 100%."
    (emphasis added)). Assuming that defendants
    have taken steps necessary to preserve their
    rights against the municipality under South
    African law, and assuming that there is
    adequate evidence to support a claim of
    municipal liability going to the jury, the
    trial court may consider -- as a matter of
    equity -- allowing the jury to consider
    apportioning fault between defendants and
    the   municipality.        In   this    way,   the
    disadvantage to defendants in trying this
    case   in   New    Jersey     will   be    greatly
    diminished    if,    in    the     event    of   a
    determination     of    liability,     they    can
    19                               A-4918-13T1
    apportion damages in a way consistent with
    the [CNA].
    [Id. at 570-71.]
    Although the federal district court's decision in Carter is
    not    controlling,     we   believe     its    reasoning,    tempered      by    the
    Court's dicta in Yousef, is persuasive.                    Defendants' "all-or-
    nothing" defense may undercut their ability to prove that the
    New    York    defendants    were   in   fact    negligent,       thereby   denying
    defendants, at the least, the benefit of apportionment.                          That
    strategic decision, however, is not prejudice that inexorably
    results from application of the JTCL and the CNA to the unique
    circumstances of this case.
    We are convinced that equity is not achieved by providing
    defendants with a pro tanto credit in this litigation for the
    amount of the New York settlement.              That result is an undeserved
    windfall for defendants, and it finds no support in relevant
    case law.       The equitable result is to permit defendants to have
    any judgment that plaintiffs may secure against them reduced by
    the    amount     of   fault   a    jury      attributes     to    the   New     York
    defendants.        We are therefore compelled to reverse the order
    under review.
    Finally, plaintiffs claim that their cross-motion should
    have    been    granted,     discovery     should   have     been    closed,      and
    defendants should have been barred from furnishing any further
    20                                 A-4918-13T1
    expert reports or introducing evidence regarding the New York
    settlement.      The natural consequence of plaintiffs' argument is
    that defendants are not entitled to any credit, because they
    proffered no evidence establishing that the settling defendants
    were negligent, and, hence, no basis for a jury to apportion
    fault.
    In    light       of   our   decision     which     completely   upends     the
    posture   of    the    litigation,    we     conclude    the   result   urged    by
    plaintiffs is unfair.            We therefore direct the Law Division to
    reinstate      the    complaint,     re-open    the     discovery    period     and
    provide the parties with a reasonable amount of additional time
    to conduct discovery and serve additional reports, anticipating
    the likelihood of discovery that might necessarily cross state
    lines.
    Reversed and remanded.           We do not retain jurisdiction.
    21                               A-4918-13T1