WATERFORD TOWNSHIP CIVIC AND EVENTS ASSOCIATION, et al. v. WATERFORD TOWNSHIP MUNICIPAL INVETSIGATION COMMITTEE

 

NOT FOR PUBLICATION WITHOUT THE

APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY

APPELLATE DIVISION

DOCKET NO. A-5928-03T55928-03T5

WATERFORD TOWNSHIP CIVIC AND

EVENTS ASSOCIATION, DENNIS

LAMAGNA, RICHARD E. MC MAHON,

DAVID DEMSEY, ELIZABETH DEMSEY,

PHIL F. COMISKY, JOYCE HOSKO,

LAURELLE CUMMINGS, RICHARD

YEATMAN, SR., MARIA YEATMAN,

BETH STODDART, ANDREA HIGNUTT,

ELIZABETH "LIBBY" HARTY, PAUL

GRUBB, DAVID SANDS, LOUISE SANDS,

SUSAN SEYBOLD and DORTHIA

SEWTER,

Plaintiffs-Respondents/

Cross-Appellants,

v.

WATERFORD TOWNSHIP MUNICIPAL

INVESTIGATION COMMITTEE,

Defendant-Appellant/

Cross-Respondent.

______________________________________________________

 

Argued November 16, 2005 - Decided

Before Judges Stern, Grall and Lihotz.

On appeal from the Superior Court of New

Jersey, Law Division, Camden County,

Docket No. L-511-04.

George J. Botcheos argued the cause for

appellant/cross-respondent.

Richard E. McMahon argued the cause for

respondents/cross-appellants.

PER CURIAM

Defendant, Waterford Township Investigation Committee, and plaintiff Waterford Township Civic and Events Association cross appeal from a judgment entered on May 17, 2004, based on Judge Orlando's formal opinion of April 6, 2004, which quashed subpoenas issued by defendant and limits the investigation which can be conducted with respect to business records of plaintiff and its members with the exception of insurance documents. The issue, as stated by Judge Orlando, "is whether a municipal investigation committee formed pursuant to N.J.S.A. 40:48-25 may examine the activities and affairs of a non-profit organization," and, if so, "the scope of the examination." The Township Committee asserted that the investigation of plaintiff Civic Association, comprised of schools, churches and other associations and citizens, was within its jurisdiction because events occur on public property and plaintiff uses Township resources.

Judge Orlando concluded that "[t]here can be no doubt that the Waterford Township Committee has jurisdiction over public lands" and "[t]herefore, the investigating committee may examine the activities of the Civic Association which take place on public property," including "how groups are selected by the Civic Association to participate in the events sponsored by the Civic Association on Township owned property."

Judge Orlando also permitted subpoenas to issue as they relate to "insurance coverage obtained by the Civic Association and other entities who will be using the public lands . . . [and] whether the Township's tax identification number is being used by the Civic Association" to save the payment of sales taxes.

Defendant argues that "there are sufficient areas of interdependence between Waterford Township and Waterford Township Civic and Events Association to justify the Township Committee's decision to investigate the activities of the Waterford Township Civic and Events Association," "the power of the Township Committee to compel testimony is inherent to its legislative power to investigate," and "the Township Committee has not acted in bad faith." Plaintiffs contend that the investigation committee authority is limited to matters "within its jurisdiction," N.J.S.A. 40:48-25, and cannot, in any event, investigate "a private association." Plaintiff seeks a judgment that defendant does not have "the power or jurisdiction to investigate the plaintiff in this action."

At oral argument before us, counsel agreed that since judgment was entered in this case, the Township passed resolutions regarding sponsorship of "Waterford Days" and has itself exclusively sponsored that event in the years 2004 and 2005. It is, therefore, unclear if the municipality wants to pursue the investigation and, if so, to what degree. The issue was to be pursued at the December 2005 meeting of the Township Council.

We remand for reconsideration by Judge Orlando in light of the desire, if any, of the Township Investigation Committee (which we are told is the Township Council) to pursue the matter. Any subpoena must be related to the Township's legitimate concern about the expenditure of public funds and public liability, and be reasonably limited in scope and time.

 
Remanded for further proceedings consistent with this opinion. No costs.

(continued)

(continued)

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A-5928-03T5

 

January 6, 2006