JUST PUPS LLC VS. BOROUGH OF EMERSON (L-5052-16, BERGEN COUNTY AND STATEWIDE) ( 2019 )


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  •                                 NOT FOR PUBLICATION WITHOUT THE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-3375-16T4
    JUST PUPS LLC,
    Plaintiff-Appellant,
    v.
    BOROUGH OF EMERSON and
    JANE DIETSCHE, Clerk of the
    Borough of Emerson,
    Defendants-Respondents.
    ____________________________
    Argued November 28, 2018 – Decided January 7, 2019
    Before Judges Koblitz, Currier and Mayer.
    On appeal from Superior Court of New Jersey, Law
    Division, Bergen County, Docket No. L-5052-16.
    Anthony X. Arturi argued the cause for appellant.
    John A. Stone argued the cause for respondent
    (DeCotiis, FitzPatrick, Cole & Giblin, LLP, attorneys;
    John A. Stone, of counsel and on the brief).
    PER CURIAM
    Plaintiff pet shop Just Pups LLC appeals from the court's February 1, 2017
    order granting defendants Borough of Emerson (Borough) and Jane Dietsche's
    motion for partial summary judgment. We affirm substantially for the reasons
    articulated in Judge Lisa Perez Friscia's twenty-six-page written opinion.
    Each year from 2009 to 2016, the Borough issued plaintiff a kennel
    license. Following a hearing on July 12, 2016, the council voted unanimously
    to deny plaintiff's application for a pet shop license. Plaintiff filed a complaint
    in lieu of prerogative writs pursuant to Rule 4:69. After the court dismissed the
    complaint, plaintiff appealed.
    Plaintiff argues (1) the court erred in its interpretation of N.J.S.A. 4:19-
    15.8(a) and (d) by finding the statute allows the municipal clerk discretion to
    grant or deny an application for a pet shop license and (2) the Borough acted
    illegally in conducting a hearing on plaintiff's application. A review of the
    record and analysis of N.J.S.A. 4:19-15.8 demonstrates the statute affords the
    Borough discretion to conduct a hearing and determine whether an application
    for a pet shop license should be denied.
    In August 2009, plaintiff was issued a certificate of occupancy for retail
    puppy sales, supplies, toys, and accessories, and has operated a pet shop since
    then. Each year from 2009 to 2016, the Borough issued plaintiff a license to
    A-3375-16T4
    2
    operate a kennel pursuant to Emerson, N.J., Code § 140-7 (2016),
    https://www.ecode360.com/11485938.1          In May 2016, the Borough advised
    plaintiff its kennel license was set to expire, and if plaintiff was "interested in
    seeking a new license for the period of July 1, 2016 through June 30, 2017, [to]
    kindly complete the attached application and required information . . . ."
    At the end of June 2016, plaintiff filed an application for a pet shop license
    with the Borough pursuant to N.J.S.A. 4:19-15.8. The Borough wrote plaintiff
    that the mayor and council would hold a hearing to determine whether to grant
    or deny the application.2 The letter informed plaintiff that, at the hearing,
    plaintiff would "be provided the opportunity to give oral or written testimony,
    offer expert testimony, and . . . be represented by an attorney." Plaintiff then
    filed a complaint in lieu of prerogative writs against defendants, alleging the
    Borough was required to issue a pet shop license upon plaintiff's application but
    failed to do so.
    1
    A kennel is defined as "[t]he conducting of the business of harboring, raising
    or otherwise dealing in and with dogs, and any person harboring more than five
    dogs shall be presumed to conduct a kennel." § 140-1. Plaintiff maintains that
    it does not qualify as a kennel, although it was licensed as such for several years.
    2
    Plaintiff's statement of material facts emphasizes the fact that the Borough has
    no ordinance regulating pet shops, only an ordinance regulating kennels, which
    should not apply to plaintiff. The Borough, however, is authorized to regulate
    pet shop licensing, and did so here, pursuant to N.J.S.A. 4:19-15.8.
    A-3375-16T4
    3
    The Borough held a hearing on plaintiff's application on July 12, 2016.
    Plaintiff objected to the hearing, arguing no ordinance authorized the Borough
    to conduct a hearing on plaintiff's license application. The Borough responded
    it was conducting the hearing pursuant to N.J.S.A. 4:19-15.8(d). At the hearing,
    plaintiff's counsel introduced evidence and cross-examined witnesses.
    The Borough's animal control officer, Carol A. Taylor, testified that
    plaintiff "regularly puts [the puppies] in an unsafe and cruel situation[]"; and a
    registered environmental health specialist, Darlene Mandeville, testified about
    various defects in the condition of plaintiff's pet shop. Members of the public
    testified at the hearing about the poor condition and health of the puppies sold
    by plaintiff, both in Emerson and in its Paramus location. At the conclusion of
    the hearing, the council voted unanimously to deny plaintiff's application for a
    pet shop license.
    Following the hearing, plaintiff amended its complaint in lieu of
    prerogative writs. In a well-reasoned written decision, Judge Friscia granted
    defendants' motion for partial summary judgment. In granting defendants'
    motion, Judge Friscia first found "[a]ccording to the plain language of the
    statutory scheme under review, . . . the Borough is vested with the decision
    A-3375-16T4
    4
    whether or not to issue a license under N.J.S.A. 4:19-15.8." Judge Friscia
    reasoned:
    Reading the statute as a whole, the municipal discretion
    to decline a license and the issues of review in
    contemplation of license issuance are clearly
    established. The Borough has authority to deny or
    revoke a license, pursuant to N.J.S.A. 4:19-15.8(c), for
    a pet shop's "failure . . . to comply with the rules and
    regulations of the state department or local health
    authority." New Jersey courts have found that "the
    power to grant licenses connotes the power of denial for
    good cause, in keeping with and to subserve the
    declared legislative ends." Librizzi v. Plunkett, 
    126 N.J.L. 17
    , 23 (1940). The municipality is the governing
    body authorized to license pet shops within its borders,
    not the clerk. Therefore, reading subsection (a) and (d)
    in harmony in consideration of the statutory purposes
    and liberal construction in the favor of the municipality,
    the Borough was within its statutory rights to hold a
    hearing to consider and deny Just Pups' license. The
    legislative purpose in requiring licenses for pet shops is
    the health, welfare and safety of animals and people.
    Additionally, the court finds the hearing appropriately
    provided plaintiff with the right to call witnesses,
    introduce evidence and cross-examine witnesses.
    Plaintiff also had been provided the opportunity to have
    an independent health officer review the store and its
    history, who could have been provided to testify, but
    chose not to.
    Judge Friscia also found "the governing body relied on standards as set
    forth in the statute and that the evidence relied on was permissive."         She
    reasoned:
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    [T]he Borough appropriately considered evidence from
    a qualified animal control officer and an environmental
    health specialist, who each had direct interaction and
    oversight of the Just Pups' business operations and
    handling of dogs. Each testified to multiple issues
    regarding health code deficiencies and extensive
    oversight issues. The court finds that the testimony of
    witnesses presented at the Borough hearing, which Just
    Pups' counsel had an opportunity to cross-examine,
    presented valid reasons to conclude that issuing a
    license to Just Pups violated . . . the purpose of N.J.S.A.
    4:19-15.8. The governing body's decision to decline to
    issue the license, to safeguard the health of animals and
    the people who interact with those animals, was
    substantiated by the record. Therefore the court finds
    that plaintiff has failed to overcome the presumption of
    validity afforded to the Borough's action and plaintiff
    has failed to demonstrate that the denial of Just Pups'
    license was arbitrary, capricious or unreasonable.
    The parties entered a stipulation of dismissal of the remaining counts of
    the amended complaint and counterclaim without prejudice, thus rendering
    Judge Friscia's order final. "[A] dismissal without prejudice of either an issue
    or a party . . . with the contemplation of commencement of a subsequent action
    and entered for the purpose of rendering an otherwise interlocutory order
    appealable will preclude the finality and hence the appealability of that order."
    Pressler & Verniero, Current N.J. Court Rules, cmt. 2.2.4 on R. 2:2-3 (2019);
    see also Grow Co. v. Chokshi, 
    403 N.J. Super. 443
    , 460-61 (App. Div. 2008)
    (quoting CPC Intern., Inc. v. Hartford Acc. & Indem. Co., 
    316 N.J. Super. 351
    ,
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    6
    366 (App. Div. 1998)) (noting that "the dismissal of claims without prejudice
    must not become a device 'to foist jurisdiction upon this court' over what is, in
    reality, an interlocutory order"); Silviera-Francisco v. Bd. of Educ. of City of
    Elizabeth, 
    224 N.J. 126
    , 143 (2016) (noting that "the Appellate Division has
    repeatedly admonished parties for attempting to disguise an interlocutory order
    . . . as final for purposes of pursuing an appeal as of right").
    The stipulation agreement provides for reinstatement of plaintiff's
    remaining claims "if [Judge Friscia's] February 1, 2017 [o]rder . . . is vacated or
    reversed on appeal . . . ."     Because we affirm Judge's Friscia's order, the
    stipulation agreement will not have the effect of reinstating plaintiff's claims.
    Nonetheless, because only partial summary judgment was granted, the
    subsequent stipulation agreement could be viewed as an attempt "to disguise an
    interlocutory order" as a final order. The issues have been fully briefed and we
    choose to resolve the matter while reiterating disapproval for such stipulation
    agreements.
    When evaluating whether summary judgment was proper, we conduct a
    de novo review, applying the same standard as the trial court. Templo Fuente
    de Vida Corp. v. Nat'l Union Fire Ins. Co. of Pittsburgh, Pa., 
    224 N.J. 189
    , 199
    (2016). Summary judgment must be granted "if the pleadings, depositions,
    A-3375-16T4
    7
    answers to interrogatories and admissions on file, together with the affidavits, if
    any, show that there is no genuine issue as to any material fact challenged and
    that the moving party is entitled to a judgment or order as a matter of law." R.
    4:46-2(c).3
    Judge Friscia correctly found N.J.S.A. 4:19-15.8 affords the Borough
    discretion to conduct a hearing and determine whether an application for a pet
    shop license should be granted.       Moreover, the Borough's hearing process
    properly afforded plaintiff due process.
    Our primary purpose in construing a statute is to "identify and implement
    the legislative intent." Smith v. Millville Rescue Squad, 
    225 N.J. 373
    , 389
    (2016). Thus, when interpreting a statute, we must first consider the plain
    language of the statute, which is "the best indicator of that intent." 
    Ibid.
     (quoting
    DiProspero v. Penn, 
    183 N.J. 477
    , 492 (2005)).
    In doing so, we should "ascribe to the statutory words their ordinary
    meaning and significance, and read them in context with related provisions so
    3
    Rule 4:69-2 addresses motions for summary judgment where a complaint in
    lieu of prerogative writs has been filed. The Rule provides that a motion for
    summary judgment may be filed "at any time after the filing of the complaint,
    by motion supported by affidavit and with briefs . . . ." R. 4:69-2. See also 388
    Rt. 22 Readington Realty Holdings, LLC v. Twp. of Readington, 
    221 N.J. 318
    ,
    338-39 (2015).
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    8
    as to give sense to the legislation as a whole." DiProspero, 
    183 N.J. at 492
    (citation omitted); see also Tumpson v. Farina, 
    218 N.J. 450
    , 467 (2014)
    (quoting Wilson v. City of Jersey City, 
    209 N.J. 558
    , 572 (2012)) (reasoning
    "[e]ach statutory provision must be viewed not in isolation but 'in relation to
    other constituent parts so that a sensible meaning may be given to the whole of
    the legislative scheme'"); N.J.S.A. 1:1-1 (in interpreting statutes, "words and
    phrases shall be read and construed with their context, and shall, unless
    inconsistent with the manifest intent of the [L]egislature[,] . . . be given t heir
    generally accepted meaning, according to the approved usage of the language").
    N.J.S.A. 4:19-15.8 provides, in pertinent part,
    a. Any person who keeps or operates or proposes to
    establish a kennel, a pet shop, a shelter, or a pound shall
    apply to the clerk . . . in the municipality where such
    establishment is located, for a license entitling him to
    keep or operate such establishment.
    ....
    c. The license for a pet shop shall be subject to review
    by the municipality, upon recommendation by the
    Department of Health or the local health authority for
    failure by the pet shop to comply with the rules and
    regulations of the State department or local health
    authority governing pet shops or if the pet shop meets
    the criteria for recommended suspension or revocation
    . . . after the owner of the pet shop has been afforded a
    hearing . . . .
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    d. The municipality may issue a license for a pet shop
    that permits the pet shop to sell pet supplies for all types
    of animals, including cats and dogs, and sell animals
    other than cats and dogs but restricts the pet shop from
    selling cats or dogs, or both.
    [(emphasis added).]
    As Judge Friscia correctly found, pursuant to N.J.S.A. 4:19-15.8, the
    Borough was vested with the discretion to grant or deny plaintiff's application
    for a pet shop license. Plaintiff relies on N.J.S.A. 4:19-15.2, 15.3(a), 15.4, and
    15.5, which apply only to licensing of the actual animal, not the licensing of a
    pet shop. As such, plaintiff's argument regarding the "overall pet licensing
    scheme of N.J.S.A. 4:19-15" is unpersuasive.
    The plain language of N.J.S.A. 4:19-15.8 read in the context of the
    statute's manifest purpose establishes that the licensing of a pet shop is
    permissive, not mandatory. Subsection (a) sets forth the requirements that an
    applicant shall fulfill in order to submit a complete application for a pet shop
    license.   While subsection (a) does not delineate how the application will be
    reviewed, subsection (d) establishes the permissive nature of a pet shop license.
    Subsection (d) provides, "[t]he municipality may issue a license for a pet shop
    that . . . restricts the pet shop from selling cats or dogs, or both." N.J.S.A. 4:19-
    15.8(d). Plaintiff argues that this subsection should be narrowly construed to
    A-3375-16T4
    10
    mean only that the Borough may "limit what pets can be sold" after granting a
    pet shop license.    Under the plain wording of N.J.S.A. 4:19-15.8 (d), the
    Borough could have restricted a pet shop license to prevent the sale of dogs, thus
    eliminating the business of Just Pups. To read the statute to require that the
    Borough restrict the license rather than deny the license is nonsensical. N.J.S.A.
    4:19-15.8 affords the Borough the discretion whether to grant or deny plaintiff's
    application for a pet shop license.
    Plaintiff also argues the hearing process set forth in the statute pertains
    only to license revocation, not license application, and, therefore, was
    improperly applied to plaintiff's application for a pet shop license. Pursuant to
    N.J.S.A. 4:19-15.8(c), a pet shop license is "subject to review by the
    municipality, upon recommendation by the Department of Health or the local
    health authority" for violations of State or local regulations "after the owner of
    the pet shop has been afforded a hearing . . . ."
    Using plaintiff's logic, the Borough would have to grant and then begin
    revocation proceedings pursuant to subsection (c) for every unwarranted pet
    shop license. This would also allow an establishment whose pet shop license
    had previously been revoked to reapply and obtain a license without review by
    the municipality.
    A-3375-16T4
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    Such a process is unreasonable and inefficient and would undercut the
    legislative purpose to protect the health, welfare, and safety of animals and
    people. The Borough acted well within its discretion in holding a hearing to
    review plaintiff's application for a pet shop license, and subsequently deny the
    license.
    Affirmed.
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