Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

NJ Court Rules Application Mistake Can Justify Denial of Professional License

Author: Scarinci Hollenbeck, LLC

Date: October 13, 2014

Key Contacts

Back

Professionals who apply for licenses in New Jersey may want to triple check their applications.

The Appellate Division recently held that even an unintentional mistake could constitute misrepresentation in violation of the Uniform Enforcement Act (UAE) and justify denial of the application. The case, In the Matter of the Application of Y.L., involved a massage therapist who failed to list a prostitution arrest on her application. However, the statute also applies to hairstylists, accountants, architects, pharmacists, electricians, dentists, plumbers, real estate appraisers, veterinarians and a number of other professions that require a professional license.

The Facts of the Case

In 2013, the Board of Massage and Bodywork Therapy (“Board”) issued a Final Order of Denial of Certification/License with regard to a massage therapy license application filed by plaintiff Y.L. The Board found that Y.L. engaged in misrepresentation on her sworn application, in violation of the UAE. The statute allows professional licensing boards to deny the license of an applicant who has “engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise or false pretense.”

In both the application and the accompanying authorization for a background check submitted in 2012, Y.L. swore that she had never been arrested for any crime or offense. She signed an affidavit stating: “[a]ll information provided in connection with this application is true to the best of my knowledge and belief. I understand that any omissions, inaccuracies or failure to make full disclosure may be deemed sufficient to deny licensure[.]”

The Board discovered that Y.L. had been arrested for prostitution in a massage therapy establishment in 2004, although the charge was later dismissed. Y.L. wrote the Board a letter explaining that she had not read the application questions carefully and mistakenly neglected to acknowledge the arrest. She indicated that “English is not my primary language,” denied having engaged in prostitution, and claimed that she had no intent to deceive the Board.

The Board nonetheless failed to approve her application. In her subsequent appeal, Y.L. argued that because the word “misrepresentation” is surrounded by words that require an intent to deceive, such as “dishonesty, fraud [and] deception[,]” similar intent should be required for any misrepresentation.

The Court’s Decision

The appeals court rejected Y.L.’s argument that the Board must find she had the intent to deceive, and affirmed the Board’s denial, which required Y.L. to wait two years before reapplying for a license. As highlighted in the opinion, New Jersey courts have traditionally held that misrepresentation, in the form of “[a]n incorrect statement, negligently made and justifiably relied upon,” can be the basis for recovery of damages for economic loss or injury sustained as a consequence of that reliance.

In reaching its decision, the Appellate Division further noted that it previously found that the Director of the New Jersey Division of Medical Assistance and Health Services did not err in denying a pharmacy’s application to participate in the State’s Medicaid program due to its unintentional failure to disclose the criminal record of one of its employees in Twp. Pharmacy v. Div. of Med. Assistance & Health Servs., 432 N.J. Super. 273, 274-75 (2013).

Ruling otherwise, the panel held, would also lead to an unworkable situation. “[A] testimonial hearing would likely be required in every instance where the applicant alleged the failure was not intentional,” the court stated.

If you have questions about this case or would like to discuss licensing issues impacting your business, please contact me or the Scarinci Hollenbeck attorney with whom you work. 

Check out our previous posts on some of the decisions regarding decisions made by the Appellate Division:

  • Businesses Should Review Arbitration Clauses in Light of Recent NJ Supreme Court Decision
  • Appellate Division Rules BPU Did Not Have Exclusive Primary Jurisdiction Over Negligence Claims
  • Appellate Division Issues Key NJ Unemployment Law Decision
  • NJ Appellate Court Rules Parties May Use Imprecise Wording To Exercise A Right Under An Insurance Policy To Reject An Arbitration Award

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Are Stay Interviews the Key to Retaining Top Talent? post image

Are Stay Interviews the Key to Retaining Top Talent?

Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]

Author: Angela A. Turiano

Link to post with title - "Are Stay Interviews the Key to Retaining Top Talent?"
Why Secured Transactions Are Important post image

Why Secured Transactions Are Important

Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]

Author: Dan Brecher

Link to post with title - "Why Secured Transactions Are Important"
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications post image

Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications

Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]

Author: Dan Brecher

Link to post with title - "Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications"
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors post image

Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors

The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]

Author: Dan Brecher

Link to post with title - "Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors"
Corporate Consolidation and Antitrust Issues in Mergers post image

Corporate Consolidation and Antitrust Issues in Mergers

Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]

Author: Dan Brecher

Link to post with title - "Corporate Consolidation and Antitrust Issues in Mergers"
What is Business Law and Why Is it Important? post image

What is Business Law and Why Is it Important?

Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]

Author: Dan Brecher

Link to post with title - "What is Business Law and Why Is it Important?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

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!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!