ROSALYND SMITH VS. PATERSON BOARD OF EDUCATION (L-1742-15, PASSAIC 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  •                                 NOT FOR PUBLICATION WITHOUT THE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-2194-18T3
    ROSALYND SMITH,
    Plaintiff-Appellant,
    v.
    PATERSON BOARD
    OF EDUCATION and
    VIRGINIA GALIZIA,
    Defendants-Respondents.
    ___________________________
    Submitted May 26, 2020 – Decided July 22, 2020
    Before Judges Sumners and Natali.
    On appeal from the Superior Court of New Jersey, Law
    Division, Passaic County, Docket No. L-1742-15.
    Rosalynd Smith, appellant pro se.
    Schenck, Price, Smith & King, LLP, attorneys for
    respondent (John D. McCarthy, of counsel and on the
    brief).
    PER CURIAM
    Plaintiff Rosalynd Smith was employed as a non-tenured teacher with
    defendant Paterson Board of Education (the Board) for the 2012-2013 school
    year.    She was supervised by defendant Virginia Galizia, the Alexander
    Hamilton Academy Principal. Following the Board's decision not to renew her
    non-tenured teaching contract for the 2013-2014 school year, Smith filed a Law
    Division complaint alleging violation of the New Jersey Law Against
    Discrimination, N.J.S.A. 10:5-1 to -42, and the New Jersey Civil Rights Act,
    N.J.S.A. 10:6-1 to -2, and other causes of action.
    As a result of settlement discussions on the cusp of trial, the trial judge
    was advised by the parties' counsel that a settlement agreement was reached.
    Smith, however, claimed she did not agree to the settlement.            The judge
    subsequently granted the Board's motion to enforce the settlement. Eighteen
    months later, Smith moved to vacate the order enforcing the settlement. A
    different judge denied the motion. For the reasons that follow, we reject Smith's
    appeal of that order.
    I
    The parties and their counsel reported for trial of Smith's claims on May
    15, 2017. In an effort to resolve the matter, the trial judge engaged the parties
    in settlement negotiations, which included the judge having separate in chamber
    A-2194-18T3
    2
    conferences with Board counsel, and with Smith and her counsel, Gina Mendola
    Longarzo. After a few hours of negotiations, Board counsel advised the judge
    a settlement had been reached subject to the Board's approval at its meeting on
    May 17. According to the settlement terms, the Board could resolve the matter
    by paying Smith $45,000 without her return to employment, or in the alternative,
    pay her $10,000 and return her to employment. The settlement terms were not
    placed on the record.
    On the morning of May 18, Board counsel advised Mendola Longarzo the
    Board agreed to the settlement option of $45,000. Thus, as the judge had
    directed on May 15, Smith and Board counsel personally appeared before the
    judge that afternoon with Mendola Longarzo appearing by telephone because of
    a scheduling conflict. Board counsel informed the judge the Board agreed to
    settle the matter by paying Smith $45,000. Smith, however, stated she did not
    agree to settling her complaint. After the judge conferenced with Smith and
    Mendola Longarzo in chambers, the proceedings resumed on the record with the
    judge stating Mendola Longarzo was allowed to withdraw as counsel and the
    Board should file a motion to enforce the settlement agreement given Smith's
    position that an agreement was not reached.
    A-2194-18T3
    3
    The Board promptly complied with the judge's directive by moving to
    enforce the settlement agreement, which Smith, representing herself, opposed.
    At the May 23 hearing on the Board's motion, Mendola Longarzo, who was
    subpoenaed by the Board, testified Smith agreed to the settlement terms on May
    15 subject to the Board's action at its meeting two nights later to accept one of
    the two settlement options. The judge was informed the Board agreed to the
    option to pay Smith $45,000 and not have her return to work. At the conclusion
    of the hearing, the judge placed her decision on the record granting the Board's
    motion based on her determination the parties reached a binding settlement
    agreement. The judge confirmed her decision in an order entered that day.
    Smith did not appeal the order.
    A month later, Board counsel mailed Smith a written settlement agreement
    and release for her execution. Smith responded by email two weeks later stating
    she would not sign the documents.
    On August 10, to satisfy its payment obligation to Smith, the Board filed
    a motion to deposit the $45,000 settlement payment with the court.            On
    September 1, the judge granted the motion.1
    1
    For reasons that are not revealed in the record, it took until January 26, 2018
    for the Board to deposit the settlement funds with the court.
    A-2194-18T3
    4
    On November 18, 2018, some eighteen months after the May 23, 2017
    order enforcing the settlement agreement, Smith filed a motion to vacate the
    order    under   Rule   4:21A,     essentially   attacking   Mendola   Longarzo's
    representation in claiming she did not agree to the alleged settlement terms. The
    Board opposed. Neither party requested oral argument.
    On December 10, 2018, a different judge entered an order denying Smith's
    motion and directing her to sign a release so the $45,000 settlement funds could
    be turned over to her. In his statement of reasons accompanying the order, the
    judge noted the motion was denied because Smith failed to file a timely motion
    to reconsider the May 23, 2017 order under Rule 1:7-4(b) within twenty days of
    the order; failed to file with this court a timely appeal of the May 23, 2017 order
    under Rule 2:4-1 within forty-five days; and failed to file with the trial court a
    timely motion to vacate an order under Rule 4:50-2 (mistakenly cited as Rule
    4:5-2). Putting aside these procedural deficiencies, the judge addressed the
    merits of Smith's contentions.        The judge determined "in reviewing the
    settlement conferences and agreement . . . occurring in May 2017," Smith "was
    fully and duly represented by" Mendola Longarzo, who was authorized to settle
    her claims for $45,000, which the Board accepted.
    Before us, Smith argues:
    A-2194-18T3
    5
    POINT I
    THE TRIAL COURT ERRED IN DENYING
    PLAINTIFF’S   MOTION    TO   VACATE
    SETTLEMENT AGREEMENT, BECAUSE THE
    SETTLEMENT WAS ASCERTAINED THROUGH
    UNETHICAL PRACTICES AND BREACHING OF
    CLIENT ATTORNEY MORALS.
    POINT II
    THE TRIAL COURT ERRED IN DENYING
    PLAINTIFF’S    MOTION    TO     VACATE
    SETTLEMENT      AGREEMENT,     BECAUSE
    PLAINTIFF SHOULD BE ALLOWED TO FREELY
    EXPRESS ONE’S OWN WISHES AND DESIRE TO
    NOT ACCEPT PROPOSED SETTLEMENT. AN
    OPPORTUNITY      TO    PRESENT     ALL
    FACTS/ARGUMENTS BEFORE A JURY DURING A
    TRIAL PROCEEDING SHOULD BE ONE’S
    CHOICE.
    POINT III
    THE SETTLEMENT AGREEMENT WAS FALSLY
    SOLIC[I]TED AND ABOLISHED PLAINTIFF’S
    RIGHTS TO REFUSE ALTHOUGH PLAINTIFF
    CLEARLY STATED THAT SHE WAS NOT
    WILLING TO ACCEPT SUCH A MINUSCULE
    AMOUNT.
    POINT IV
    EVEN IF PLAINTIFF’S DESIRE TO MOVE
    FORWARD WITH A TRIAL APPEARED TO BE A
    FLUKE, THIS COURT SHOULD ADOPT THE
    "EQUAL AND FREE RIGHTS OPPORTUNITY"
    DOCTRINE    SO  PLAINTIFF   CAN    BE
    A-2194-18T3
    6
    COMPENSATED FOR HER LOSSES ONCE TRIAL
    HAS BEEN CONDUCTED AND CONCLUDED.
    (Not raised below)
    II
    We first address the procedural grounds upon which the judge denied
    Smith's motion to vacate the May 23, 2017 order. Given Smith's improper
    citation of the Rule 4:21A, which addresses settlements reached through court-
    mandated arbitration, the judge considered the motion under Rule 4:50-2 and
    found it untimely.
    Rule 4:50-1(a)-(e) authorizes a court to relieve a party from a final
    judgment or order for reasons such as: mistake or inadvertence; certain newly
    discovered evidence; fraud; the judgment or order is void; or the judgment or
    order has been satisfied. Subsection (f) of Rule 4:50-1 provides a catch-all
    provision authorizing a court to relieve a party from a judgment or order for
    "any other reason justifying relief from the operation of the judgment or order."
    The essence of subsection (f) is to achieve equity and justice in exceptional
    situations that cannot be easily categorized. DEG, LLC v. Twp. of Fairfield,
    
    198 N.J. 242
    , 269-70 (2009) (citing Court Inv. Co. v. Perillo, 
    48 N.J. 334
    , 341
    (1966)).
    A-2194-18T3
    7
    Rule 4:50-2 requires a motion for relief under Rule 4:50-1 to be filed
    within a "reasonable time."    However, where the relief sought is based on
    reasons set forth in Rule 4:50-1(a) ("mistake, inadvertence, surprise, or
    excusable neglect"), (b) ("newly discovered evidence") or (c) ("fraud"), the
    motion must be filed within one year of entry of the judgment.
    Ibid. We review a
    court's determination of a Rule 4:50-1 motion under an abuse
    of discretion standard. U.S. Bank Nat'l Ass'n v. Guillaume, 
    209 N.J. 449
    , 467
    (2012). There is "an abuse of discretion when a decision is 'made without a
    rational explanation, inexplicably departed from established policies, or res ted
    on an impermissible basis.'"
    Ibid. (quoting Iliadis v.
    Wal-Mart Stores, Inc., 
    191 N.J. 88
    , 123 (2007)).
    Applying these principles, we conclude the judge did not abuse his
    discretion in denying Smith's motion. The judge properly ruled Smith's motion
    to vacate the May 23, 2017 order was untimely because it was made eighteen
    months after it was entered. Although it is not clear if Smith's motion fits the
    criteria under Rule 4:50-1(a), which must be filed within a one-year time limit,
    her motion is still untimely even under the reasonable time limits of Rule 4:50-
    2. Smith has not presented any reason to conclude otherwise. In fact, neither
    A-2194-18T3
    8
    her motion to vacate nor her appellate brief explain why it took her so long to
    file the motion to vacate.
    Like the judge, we also address the merits of Smith's appeal. Our state
    has a strong public policy in favor of settlements.       Brundage v. Estate of
    Carambio, 
    195 N.J. 575
    , 601, (2008). Essentially, a settlement agreement is a
    contract. See Nolan v. Lee Ho, 
    120 N.J. 465
    , 472 (1990) (citing Pascarella v.
    Bruck, 
    190 N.J. Super. 118
    , 124 (App. Div. 1983). "As a general rule, courts
    should enforce contracts as the parties intended." Pacifico v. Pacifico, 
    190 N.J. 258
    , 266 (2007) (citations omitted).        "[P]arties may orally, by informal
    memorandum, or by both agree upon all the essential terms of a contract and
    effectively bind themselves thereon, if that is their intention, even though they
    contemplate the execution later of a formal document to memorialize their
    undertaking." Comerata v. Chaumont, Inc., 
    52 N.J. Super. 299
    , 305 (App. Div.
    1958). It is well settled that "[a] contract arises from offer and acceptance, and
    must be sufficiently definite 'that the performance to be rendered by each party
    can be ascertained with reasonable certainty.'" Weichert Co. Realtors v. Ryan,
    
    128 N.J. 427
    , 435 (1992) (quoting Borough of W. Caldwell v. Borough of
    Caldwell, 
    26 N.J. 9
    , 24-25 (1958)). If the parties agree on the essential terms
    and agree to be bound by those terms, they have created an enforceable contract.
    A-2194-18T3
    9
    Ibid. Nevertheless, "a demonstration
    of 'fraud or other compelling
    circumstances,'" can invalidate a settlement agreement. Pascarella v. Bruck, 
    190 N.J. Super. 118
    , 125 (App. Div. 1983) (quoting Honeywell v. Bubb, 130 N.J.
    Super. 130, 136 (App. Div. 1974)).
    We find no fault with the December 10, 2018 order denying Smith's
    motion to vacate the May 23, 2017 order enforcing the settlement agreement
    between her and the Board. The first judge, faced with disputed material facts
    as to whether a settlement was reached, conducted a hearing. See Eaton v. Grau,
    
    368 N.J. Super. 215
    , 222 (App. Div. 2004) (holding a plenary hearing should be
    held on a motion to enforce a settlement agreement "where the evidence shows
    the existence of a genuine issue of material fact") (citation omitted).     She
    determined the parties – through their counsel – had agreed the Board could
    settle Smith's claims by deciding at its May 17 meeting to pay her $45,000 or to
    pay her $10,000 and reinstate her. Since the Board approved the $45,000
    payment option, the agreement was held to be consummated. In reviewing the
    record, the second judge properly decided not to disturb the May 23 order
    because there was credible evidence to support enforcement of the settlement
    agreement. See Griepenburg v. Twp. of Ocean, 
    220 N.J. 239
    , 254 (2015)
    (recognizing appellate review "give[s] deference to the trial [judge] that heard
    A-2194-18T3
    10
    the witnesses, sifted the competing evidence, and made reasoned conclusions" )
    (citing Rova Farms Resort, Inc. v. Inv'rs Ins. Co., 
    65 N.J. 474
    , 483-84 (1974)).
    Having carefully considered Smith's arguments, we find they have no
    merit to warrant discussion in this opinion. R. 2:11-3(e)(2).
    Affirmed.
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    11