THE VILLAGE APARTMENTS VS. DAVID MACALL (LT-008654-19, CAMDEN COUNTY AND STATEWIDE) ( 2020 )


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  •                                 NOT FOR PUBLICATION WITHOUT THE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-1724-19T3
    THE VILLAGE APARTMENTS,
    Plaintiff-Respondent,
    v.
    DAVID MACALL,
    Defendant-Appellant.
    _____________________________
    Argued September 21, 2020 – Decided December 30, 2020
    Before Judges Mayer and Susswein.
    On appeal from the Superior Court of New Jersey, Law
    Division, Camden County, Docket No. LT-008654-19.
    David Macall, appellant, argued the cause pro se.
    David A. Capozzi argued the cause for respondent.
    PER CURIAM
    This appeal arises from a residential landlord-tenant dispute over whether
    plaintiff, Village Apartments, properly raised its tenant's rent by $35 per month.
    The tenant in question, defendant David Macall, appeals from an order1 granting
    judgment of possession in favor of the landlord for nonpayment of rent pursuant
    to N.J.S.A. 2A:18-61.1(f). Macall remitted the unpaid rent the same day and
    retained possession of the apartment. After carefully considering the record in
    light of the applicable legal principles and arguments of the parties, we remand
    this matter to the trial court to determine whether Village Apartments properly
    effectuated service of the notice to quit. In all other respects, we affirm the trial
    court's order.
    I.
    We presume the parties are familiar with the circumstances leading to this
    appeal. We therefore only briefly recount those facts relevant to the issues
    before us. Macall has been a residential tenant since March 2006. In each of
    the three years preceding this litigation, Village Apartments sent Macall notices
    of rent increases. Specifically, in December 2016, Village Apartments sent
    Macall a document captioned "Notice to Quit and Offer of New Tenancy." That
    notice provided that "Effective 03/01/2017 and extending through 02/28/2018
    1
    Notwithstanding that the order was signed and dated November 25, 2019, the
    record indicates that the trial court issued its decision on the date of trial,
    November 14, 2019.
    A-1724-19T3
    2
    the new rental amount shall be in the amount of $1090.00 per month." Macall
    signed and returned the December 2016 notice.
    In December 2017, Village Apartments sent Macall an almost identical
    document also captioned "Notice to Quit and Offer of New Tenancy." This
    second notice provided that, "Effective 03/01/2018 and extending through
    02/28/2019 the new rental amount shall be in the amount of $1120.00 per
    month." That represented a 2.75 % increase in rent. This time, Macall did not
    execute the December 2017 document. However, he remained in possession of
    the property and paid the increased rent.
    On December 13, 2018, Village Apartments sent Macall another nearly
    identical document, this time captioned "Lease Renewal 03/01/2019 –
    02/29/2020."2    This third document in the series of annual notices lies at the
    heart of the present dispute. Using the same language as in the previous two
    notices, the December 2018 document stated, "Your present lease expires on
    2
    As we discuss in Section II, infra, Macall for the first time on appeal disputes
    the method by which plaintiff sent him the December 2018 document. So far as
    we can tell, Macall maintains that this document was made available to him only
    through his use of an internet application. Although it is not disputed that Macall
    read the document and decided not to pay the rent increase, neither Macall's
    brief nor the record before us explain how he was alerted that the December
    2018 document had been issued or what steps were needed for him to access and
    read it.
    A-1724-19T3
    3
    02/28/2019. Effective 03/01/2019 and extending through 02/29/2020 the new
    rental amount shall be in the amount of $1155.00 per month." That represented
    a 3.13% rate increase. Additionally, like the notices sent in 2016 and 2017, the
    December 2018 document stated: "Please note that your lease renews
    AUTOMATICALLY for the renewal terms above, unless written notice to
    vacate is received at the Leasing Office by: 12/31/2018."
    Macall did not sign and return the December 2018 notice. This time, he
    remained in possession of the property but did not pay the increased rent.
    Rather, he continued to pay monthly rent at the rate fixed in the December 2017
    notice. That prompted Village Apartments to initiate a summary dispossess
    action based on non-payment of rent. The sole remedy sought in the complaint
    was possession of the property.
    After a hearing, the trial court concluded that the December 2018
    document was a valid notice to quit and created a new tenancy at the increased
    rent amount. The court reasoned that by holding over, Macall had created a new
    tenancy and therefore was obligated either to pay the increased rent or vacate
    the premises. The court thereupon granted judgment of possession to Village
    Apartments for nonpayment of rent pursuant to N.J.SA. 2A:18-61.1(f). That
    same day, in order to prevent issuance of a warrant of eviction, Macall paid the
    A-1724-19T3
    4
    arrearages outstanding for seven months based on the $35 per month rent
    increase. He continues to occupy the leased premises.
    II.
    We first address Macall's contention that Village Apartments did not
    properly serve the notice to quit. Macall claims that he was provided access to
    this notice only through "an unsecure internet app," and that Village Apartments
    failed to serve the notice in accordance with N.J.S.A. 2A:18-61.2, which
    requires service either in person, upon a household family member, or through
    regular and certified mail. 3 Village Apartments failed to respond substantively
    to this point on appeal, arguing only that Macall waived this argument by failing
    to raise it to the trial court, and that we should decline to consider it. Although
    Macall did not raise this matter at trial, the issue of defective service speaks
    directly to the jurisdiction of the trial court. See Nieder v. Royal Indem. Ins.
    Co., 
    62 N.J. 229
    , 234 (1973) (holding an appellate court may decline to address
    an issue not raised to the trial court "unless the questions so raised on appeal go
    to the jurisdiction of the trial court[.]") (quoting Reynolds Offset Co., Inc. v.
    3
    N.J.S.A. 2A:18-61.2 provides in pertinent part that notice, "shall be served
    either personally upon the tenant or lessee or such person in possession by giving
    him a copy thereof, or by leaving a copy thereof at his usual place of abode with
    some member of his family above the age of 14 years, or by certified mail; if
    the certified letter is not claimed, notice shall be sent by regular mail."
    A-1724-19T3
    5
    Summer, 
    58 N.J. Super. 542
    , 548 (App. Div. 1959)). We therefore address
    Macall's claim that the notice to quit was not properly served.
    The Anti-Eviction Act, N.J.S.A. 2A:18-61.1 to -61.12, "reflects a public
    policy barring dispossess actions except upon strict compliance with the notice
    and procedural requirements of the Act." 224 Jefferson St. Condo. Ass'n v.
    Paige, 
    346 N.J. Super. 379
    , 383 (App. Div. 2002). This strict or "punctilious
    compliance" applies to all provisions in the Act, even in instances where the
    landlord acts in good faith or the tenant suffers no appreciable prejudice. 
    Ibid.
    (citing Weise v. Dover Gen. Hosp., 
    257 N.J. Super. 499
    , 504 (App. Div. 1992)).
    Accordingly, we have recognized that "the statute leaves no latitude for a
    judicial construction which excuses failure to give the specified notice." Vander
    Sterre Bros. Constr. v. Keating, 
    284 N.J. Super. 433
    , 438 (App. Div. 1995).
    "Absent strict compliance with the requirements of the Act, a court is without
    jurisdiction to entertain a summary dispossession action." 
    Id. at 440
     (quoting
    Bayside Condos., Inc. v. Mahoney, 
    254 N.J. Super. 323
    , 325 (App. Div. 1992)).
    Because the issue of proper service of the notice to quit was raised for the
    first time on appeal, the trial court made no findings on the matter. Macall's
    argument that service of the notice to quit was delivered only through some form
    of internet application is neither supported by corroborating evidence on record
    A-1724-19T3
    6
    nor denied by Village Apartments in its responsive brief. Given the scant
    evidence on record addressing the issue, we decline to exercise our original
    factfinding authority. See Allstate Ins. Co. v. Fisher, 
    408 N.J. Super. 289
    , 301
    (App. Div. 2009) (holding that "our 'original factfinding authority must be
    exercised only with great frugality and in none but a clear case free of doubt.'" )
    (quoting Tomaino v. Burman, 
    364 N.J. Super. 224
    , 234–35 (App. Div. 2003)).
    Accordingly, we are constrained to remand this case to the trial court to make
    findings and determine whether the notice to quit was properly served in
    accordance with N.J.S.A. 2A:18-61.2
    III.
    Although we remand to the trial court to determine the issue of compliance
    with the statutory service requirement, in the interest of according finality to this
    appeal, we nonetheless address Macall's other contentions to the extent that they
    merit discussion.
    Macall contends the trial court erred by inferring that Macall entered an
    implied agreement to waive the protective requirements of the Anti-Eviction
    Act.   Macall's argument misconstrues the governing case law.            In Harry's
    Village, Inc. v. Egg Harbor Twp., 
    89 N.J. 576
     (1982), our Supreme Court held
    that "[w]hen a landlord gives a proper notice to quit and a notice of rent increase,
    A-1724-19T3
    7
    a tenant, by holding over, creates a new tenancy at the increased rental." 
    Id.
     at
    583 (citing Stamboulos v. McKee, 
    134 N.J. Super. 567
    , 571 (App. Div. 1975)).
    In the case before us, the trial court properly determined that Macall remained
    in possession of the property after receiving a valid notice to quit, thereby
    consenting to the rental increase.
    Macall next contends that a three-month notice period is required for a
    notice to quit. 4 We disagree. The law requires a one-month notice period in
    these circumstances. See Harrison Assocs. v. Rent Leveling Bd. of Franklin
    Twp., Somerset Cnty., 
    215 N.J. Super. 1
    , 3, 6-7 (App. Div. 1986) (holding the
    one-month notice requirement for a notice to quit prescribed in N.J.S.A. 2A:18-
    61.2(e) also applies to a notice of rental increase under N.J.S.A. 2A:18-61.1(f)).
    Even if we applied a three-month notice period, Macall cannot prevail as he
    received notice of the rental increase in December 2018. Village Apartments
    4
    Macall appears to rely on N.J.S.A. 2A:18-56, which is not part of the Anti-
    Eviction Act and does not apply to the circumstances presented in this case.
    That statute reads in relevant part, "No judgment for possession in cases
    specified in [N.J.S.A. 2A:18-53(a)] shall be ordered unless: (a) [t]he tenancy, if
    a tenancy at will or from year to year, has been terminated by the giving of
    [three] months' notice to quit . . . ." N.J.S.A. 2A:18-56. However, N.J.S.A.
    2A:18-53 explains that this statutory framework applies "[e]xcept for residential
    lessees and tenants included in section [two] of this act," which refers to the
    Anti-Eviction Act at N.J.S.A. 2A:18-61.1.
    A-1724-19T3
    8
    did not initiate the summary dispossess action until ten months later in October
    2019.
    Macall also claims the December 2018 document was not a valid notice
    to quit. We agree with the trial court's determination that the substance of the
    document met all legal requirements.          The notice stated the reason for
    termination (the end of the lease period), indicated the parties were in a landlord -
    tenant relationship, stated the premises were to be vacated by a certain date, and
    informed Macall that his right to possession would terminate on that date. See
    Harry's Village, 
    89 N.J. at 585
    . We therefore see no reason to disturb the trial
    court's conclusion that the December 2018 document was a valid notice to quit,
    notwithstanding it was not captioned as such.
    We next address Macall's contention that the trial court erred by denying
    his motion to remove the case to the Law Division. Macall argues this case
    presents important legal issues. He also alleges that Village Apartments brought
    the summary disposition action against him as "retaliation for [his] assertion of
    legal rights in connection with the most recent renewal." Macall contends this
    entitles him to a jury trial. There is no evidence in the record, however, to
    support Macall's retaliation claim.
    A-1724-19T3
    9
    We believe this matter was properly heard in the Special Civil Part.
    N.J.S.A. 2A:18-60 provides:
    At any time before an action for the removal of a tenant
    comes on for trial, either the landlord or person in
    possession may apply to the Superior Court, which
    may, if it deems it of sufficient importance, order the
    cause transferred from the Special Civil Part to the Law
    Division.
    Furthermore,
    In general, a motion for transfer should be granted
    whenever the procedural limitations of a summary
    action (other than the unavailability of a jury trial)
    would significantly prejudice substantial interests
    either of the litigants or of the judicial system itself,
    and, because of the particular facts and circumstances
    of a specific case, those prejudicial effects would
    outweigh the prejudice that would result from any delay
    caused by the transfer.
    [Twp. of Bloomfield v. Rosanna's Figure Salon, Inc.,
    
    253 N.J. Super. 551
    , 563 (App. Div. 1992).]
    An application to transfer a tenancy proceeding is within the discretion of
    the trial court. Master Auto Parts, Inc. v. M. & M. Shoes, Inc., 
    105 N.J. Super. 49
    , 53 (App. Div. 1969) (citing Carteret Properties v. Variety Donuts, Inc., 
    49 N.J. Super. 116
    , 130 (1967)). In Twp. of Bloomfield, we identified five factors
    to channel the exercise of that discretion. 
    253 N.J. Super. at
    562–63. Of those
    five factors, only one is applicable here: "[t]he complexity of the issues
    A-1724-19T3
    10
    presented, where discovery or other pretrial procedures are necessary or
    appropriate[.]" 
    Id. at 562
    .5
    In Lopez v. Medina, the Law Division addressed the transfer of a summary
    dispossess action from landlord-tenant court. 
    262 N.J. Super. 112
     (Law Div.
    1992). In that case, the landlord alleged non-payment of rent and failure to
    surrender the premises after a notice terminating the tenancy. Id. at 115. The
    court concluded that "summary dispossess actions are simple, and failure to
    transfer them to and consolidate them in the Law Division will not prejudice the
    parties nor produce an unjust result." Id. at 122. In reaching that conclusion,
    the court aptly recognized, "[s]ummary dispossess actions in the Special Civil
    5
    The remaining factors are:
    "[t]he presence of multiple actions for possession
    arising out of the same transaction or series of
    transactions, such as where the dispossesses are based
    upon a concerted action by the tenants involved; [t]he
    appropriateness of class relief; [t]he need for
    uniformity of result, such as where separate
    proceedings are simultaneously pending in both the
    Superior Court and the County District Court arising
    from the same transaction or set of facts, and [t]he
    necessity of joining additional parties or claims in order
    to reach a final result."
    [Id. at 562-63 (citing Morrocco v. Felton, 
    112 N.J. Super. 226
    , 235–36 (Law Div. 1992)).]
    A-1724-19T3
    11
    Part are statutory proceedings intended to accord landlords an expeditious,
    inexpensive, uncomplicated and effective means of repossessing leased
    premises, thereby avoiding delays inherent in common law ejectment actions."
    
    Ibid.
    In the case before us, as in Lopez, the substantive issues are not complex
    and do not require pretrial discovery. By any objective measure, this case is a
    routine action for non-payment of rent brought under N.J.S.A. 2A:18-61.1(f). It
    is entirely appropriate that such disputes be heard by judges with experience and
    expertise in resolving landlord-tenant controversies. Transferring such matters
    to the Law Division could deny a landlord duly owed rent and possession of the
    premises for a prolonged period. Macall, moreover, has suffered no prejudice
    by having this dispute heard in the Special Civil Part. See Twp. of Bloomfield,
    
    253 N.J. Super. at 563
     (explicitly recognizing that "unavailability of a jury trial"
    is not a procedural limitation that would significantly prejudice the substantial
    interests of a litigant).
    IV.
    In sum, we affirm the trial court's determinations as to all of the issues
    that were raised at trial, and remand only for the trial court to determine whether
    the notice to quit was properly served in accordance with N.J.S.A. 2A:18-61.2.
    A-1724-19T3
    12
    We leave to the discretion of the trial court whether to require submission of
    certifications, affidavits, or other documents, or convene an evidentiary hearing
    to resolve factual disputes. If the trial court determines that the notice to quit
    was not properly served, it shall dismiss the complaint for summary
    dispossession without prejudice. As noted, in all other respects, we affirm the
    order granting judgment of possession to Village Apartments for nonpayment of
    rent.
    Affirmed in part and remanded for proceedings consistent with this
    opinion. We do not retain jurisdiction.
    A-1724-19T3
    13