
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comFirm Insights
Author: Daniel T. McKillop
Date: February 7, 2019
Partner
201-896-7115 dmckillop@sh-law.comUnder the equitable doctrine of judicial estoppel, parties are precluded from taking a position in a case that is contrary to a position it has taken in earlier legal proceedings. As explained by the Appellate Division in Cummings v. Bahr, 295 N.J. Super. 374, 387 (App. Div. 1996), “If a court has based a final decision, even in part, on a party’s assertion, that same party is thereafter precluded from asserting a contradictory position.”
In Terranova et al. v. General Electric Pension Trust et al., the Appellate Division of the New Jersey Superior Court held that the doctrine of judicial estoppel precluded the owners of a gas station from seeking contribution costs under the New Jersey Spill Compensation and Control Act (Spill Act) from certain defendants because the owners had already obtained a court order holding other parties responsible for the contamination at issue.
In Terranova, Matthew P. Terranova, Karen L. Terranova and New Land Holdings, LLC (“Plaintiffs”), owners of a commercial property long used as a gas station, alleged that former owner-operators General Electric Pension Trust and Atlantic Richfield Company, Amerco Real Estate Company, and Charles Boris, Jr., Carol Boris and Edward Wilgucki (collectively, the “Defendants”) were liable under the Spill Act for contribution toward the cost of clean-up and removal of hazardous substances.
However, Plaintiffs had previously leased the property to Keith Friedman and Michael Puccio, who operated a gas station there from 1981 until 2008. In May 2010, Plaintiffs amended an action filed against Puccio and Friedman related to an escrow agreement, adding claims alleging Puccio’s and Friedman’s environmental contamination of the property, including one for contribution under the Spill Act. The case went to arbitration, and based on conclusions of Plaintiffs’ expert reports, Plaintiffs were awarded $45,000 for expended remediation costs in 2012. Friedman and Puccio were also required to take over the remediation process. Friedman and Puccio failed to fulfill this obligation. Plaintiffs subsequently conducted further studies at the site and concluded that “soil and groundwater contamination . . . associated with the gasoline storage and handling” began on the property “on or before 1963 and continued until… 2000.” On November 10, 2015, the plaintiffs filed the present action against the Defendants based on these new conclusions. During discovery the Defendants became aware of Plaintiffs’ initial litigation against Puccio and Friedman and filed motions for summary judgment, citing judicial estoppel. The court agreed, finding that judicial estoppel prohibits a party from maintaining conflicting positions at different points in litigation and barred Plaintiffs’ Spill Act claims.
Plaintiffs appealed, but the Appellate Division affirmed the trial court’s grant of summary judgment to the Defendants. “Judicial estoppel is a defense to Spill Act claims for contribution and its application was proper under the material circumstances of this case which we now review in the light most favorable to plaintiffs,” the panel held.
In reaching its decision, the appeals court rejected the Plaintiffs’ argument that judicial estoppel is not a recognized defense to Spill Act claims. “Adhering to the [Supreme] Court’s logic, judicial estoppel is not a defense subject to any overriding legislation and, as such, it may be maintained against a Spill Act claim,” the court wrote. “The doctrine is an equitable principle… designed to “prevent litigants from playing fast and loose with the courts,” the appeals court further explained, citing the Third Circuit’s decision in Ryan Operations v. Santiam-Midwest Lumber.
The court went on to conclude that that judicial estoppel precluded the Plaintiffs’ Spill Act claims. “The decision to disregard the possibility that other dischargers — from whom Plaintiffs now seek contribution — were responsible under the Spill Act and pursue only Puccio and Friedman is the type of inconsistent practice necessitating application of the judicial estoppel doctrine,” the appeals court held.
The Appellate Division’s decision makes clear the need for contaminated property owners to identify all potentially responsible parties prior to pursuing any remediation claim under the New Jersey Spill Act. If not, they may be precluded for later seeking contribution from additional parties, even though they may have indeed been responsible for the contamination.
If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!