JOHN HOWELL v. GREENWICH TOWNSHIP MAYOR and COUNCIL

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                      APPROVAL OF THE APPELLATE DIVISION
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                                        SUPERIOR COURT OF NEW JERSEY
                                        APPELLATE DIVISION
                                        DOCKET NO. A-4889-15T4

JOHN HOWELL,

              Plaintiff-Appellant,

v.

GREENWICH TOWNSHIP MAYOR and
COUNCIL, and GREENWICH TOWNSHIP
MUNICIPAL CLERK,

          Defendants-Respondents.
__________________________________

              Argued November 16, 2017 – Decided December 6, 2017

              Before Judges Simonelli and Haas.

              On appeal from Superior Court of New Jersey,
              Law Division, Warren County, Docket No. L-
              0051-16.

              George T.       Daggett    argued    the    cause    for
              appellant.

              James M. McCreedy argued the cause for
              respondents (Wiley Malehorn Sirota & Raynes,
              attorneys; Mr. McCreedy, of counsel and on the
              brief; Carolyn C. Duff, on the brief).

PER CURIAM

        Plaintiff John Howell appeals from the Law Division's June

7,     2016   order    dismissing       his   complaint    against     defendants
Greenwich   Township   Mayor   and   Council,   and   Greenwich   Township

Municipal Clerk.    We affirm.

     Plaintiff worked for Greenwich Township from January 20, 1988

until he retired over twenty-seven years later on April 30, 2015.

During his employment, plaintiff was a member of a union that

negotiated a collective bargaining agreement (Agreement) with the

Township covering the period between January 1, 2013 and December

31, 2015.     This Agreement applied to plaintiff and similarly-

situated employees and, as stated in its preamble, "represent[ed]

the final understanding on all the bargainable issues between the

Township and the [u]nion."

     In pertinent part, the Agreement stated: "The Township agrees

to furnish Medical and Dental Insurance to its present employees

and their eligible dependents."      (Emphasis added).     Nothing in the

Agreement provided that retired employees, like plaintiff, were

entitled to health insurance upon retirement.         The Agreement also

stated:

            This Agreement represents and incorporates the
            complete   and    final   understanding    and
            settlement by the parties of all bargainable
            issues which were or could have been the
            subject of negotiations. During the term of
            this Agreement, neither party will be required
            to negotiate with respect to any such matter
            whether or not covered by this Agreement, and
            whether or not within the knowledge or
            contemplation of either or both of the parties


                                     2                             A-4889-15T4
              at the time they negotiated or signed this
              Agreement.

              This Agreement shall not be modified in whole
              or in part by the parties, except by
              instrument in writing only executed by both
              parties.

       When plaintiff retired, the Township canceled his health

insurance.       Plaintiff    subsequently    filed     a    complaint   against

defendants, and asserted he was entitled to health insurance as a

retiree based upon the following statement that was included in

the Greenwich Township Personnel Policies and Procedures Manual

(Manual)1:

              (Employees who retire with twenty-five years
              of service to the Township may continue to
              receive paid health insurance coverage.
              Employees receiving retiree health benefits
              must notify the Municipal Clerk in writing,
              with proof of enrollment, when they become
              eligible for Medicare Parts A and B. For more
              information, consult the Municipal Clerk.)

At the same time the Township adopted the Manual, it also adopted

an    Employee   Handbook    (Handbook),    which   contained      a   provision

identical to that quoted above.

       "[E]mployee manuals, . . . depending on the surrounding

circumstances, have been held to give rise to an enforceable

obligation on the part of an employer."         Troy v. Rutgers, 
168 N.J.
 354,    365   (2001).   However,    an     employer's       "general   personnel


1
     The Township adopted the Manual on April 15, 2010.

                                     3                                   A-4889-15T4
practices embodied in a policy manual do not automatically become

legally binding terms and conditions of employment."        Ware v.

Prudential Ins. Co., 
220 N.J. Super. 135, 144 (App. Div. 1987),

certif. denied, 
113 N.J. 335 (1988).   Indeed, if an employer

          does not want the manual to be capable of being
          construed by [a] court as a binding contract,
          there are simple ways to attain that goal.
          All that need be done is the inclusion in a
          very prominent position of an appropriate
          statement that there is no promise of any kind
          by the employer contained in the manual; that
          regardless of what the manual says or
          provides, the employer promises nothing and
          remains free to change wages and all other
          working conditions without having to consult
          anyone and without anyone's agreement; and
          that the employer continues to have the
          absolute power to fire anyone with or without
          good cause.

          [Woolley v. Hoffman-La Roche, Inc., 
99 N.J.
          284, 309, modified on other grounds, 
101 N.J.
          10 (1985).]

     The Manual relied upon by plaintiff in his complaint contained

just such a conspicuous disclaimer on the first substantive page

of the document.   This disclaimer stated:

          The Personnel Policies and Procedures Manual
          adopted by the Township Committee is intended
          to provide guidelines covering public service
          by Township employees and is not a contract.
          This manual contains many, but not necessarily
          all of the rules, regulations, and conditions
          of employment for Township personnel.      The
          provisions of this manual may be amended and
          supplemented from time to time without notice
          and at the sole discretion of the Township.


                                4                           A-4889-15T4
             [(Emphasis added).]

      The Handbook contained a similar, prominent disclaimer.                       The

first substantive page of the Handbook stated:

             Neither this handbook nor any other Township
             document, confers any contractual right,
             either express or implied, to remain in the
             Township's employ. Nor does it guarantee any
             fixed terms and conditions of your employment.
             The provisions of this Employee Handbook may
             be amended and supplemented from time to time
             without notice and at the sole discretion of
             the Township Committee.

On the second substantive page, the Handbook stated in capital

letters    and   bold   type:    "NEITHER           THIS    MANUAL    NOR   ANY   OTHER

GUIDELINES, POLICIES OR PRACTICES CREATE AN EMPLOYMENT CONTRACT.

THE TOWNSHIP OF GREENWICH HAS THE RIGHT, WITH OR WITHOUT NOTICE,

IN   AN   INDIVIDUAL    CASE    OR   GENERALLY,            TO   CHANGE   ANY   OF   ITS

GUIDELINES, POLICIES, PRACTICES, WORKING CONDITIONS OR BENEFITS

AT ANY TIME."

      Based upon the clear language of the Agreement that only

provided health insurance for present employees, and the equally

clear     disclaimers   included     in       the    Manual     and   the   Handbook,

defendants moved to dismiss plaintiff's complaint under Rule 4:6-

2(e) for failure to state a claim.             Following oral argument, Judge

John H. Pursel rendered a thorough written opinion, granting

defendants' motion and dismissing the complaint.



                                          5                                    A-4889-15T4
     Applying the precedents discussed above, Judge Pursel found

that, as a member of the union, plaintiff was bound by the terms

of the Agreement, which "does not provide for health insurance

benefits for retired employees of the Township of Greenwich."

Because both the Manual and the Handbook "included prominent and

effective   disclosures   stating   that     [they]    did   not   create    a

contract[,]" the judge rejected plaintiff's contention that he was

entitled to health insurance under either of these documents. This

appeal followed.

     On appeal, plaintiff argues that the judge erred in granting

defendants' motion to dismiss and in finding that the Agreement

was "the controlling document."         We disagree.

     In reviewing a Rule 4:6-2(e) dismissal, we employ the same

standard as that applied by the trial court.            Donato v. Moldow,


374 N.J. Super. 475, 483 (App. Div. 2005).              We "search[] the

complaint in depth and with liberality to ascertain whether the

fundament of a cause of action may be gleaned even from an obscure

statement of claim[.]"    Printing Mart-Morristown v. Sharp Elecs.

Corp., 
116 N.J. 739, 746 (1989) (citation omitted).

     "[W]hen the facts surrounding the content and placement of a

disclaimer are themselves clear and uncontroverted, . . . the

effectiveness of a disclaimer can be resolved by the court as a

question of law."   Wade v. Kessler Inst., 
172 N.J. 327, 339 (2002)

                                    6                                A-4889-15T4
(alteration in original) (quoting Nicosia v. Wakefern Food Corp.,


136 N.J. 401, 412 (1994)).       We "assume the facts as asserted by

plaintiff are true[,]" and we give the plaintiff "the benefit of

all inferences that may be drawn[.]"           Banco Popular N. Am. v.

Gandi, 
184 N.J. 161, 166 (2005) (quoting Velantzas v. Colgate-

Palmolive Co., 
109 N.J. 189, 192 (1988)).           A motion to dismiss

"may not be denied based on the possibility that discovery may

establish the requisite claim; rather, the legal requisites for

plaintiff's claim must be apparent from the complaint itself."

Edwards v. Prudential Prop. & Cas. Co., 
357 N.J. Super. 196, 202

(App. Div.), certif. denied, 
176 N.J. 278 (2003).

     We have considered plaintiff's contentions in light of the

record and applicable legal principles and conclude they are

without    sufficient   merit   to   warrant   discussion    in   a   written

opinion.    R. 2:11-3(e)(1)(E).      We are satisfied that Judge Pursel

properly dismissed plaintiff's complaint, and affirm substantially

for the reasons expressed in his written opinion.           However, we add

the following brief comments.

     The Manual that plaintiff primarily relied upon in support

of his claim that he was entitled to health insurance after his

retirement plainly stated that it was not a contract, and could

be changed by the Township at any time.        Thus, the judge correctly

ruled that this prominent disclaimer prevented the Manual from

                                      7                               A-4889-15T4
creating an implied contract between plaintiff and the Township

on this or any other issue.           Woolley, supra, 
99 N.J. at 309; Ware,

supra, 
220 N.J. Super. at 144.

       On the other hand, the Agreement that plaintiff's union

negotiated with the Township clearly stated that it "represent[ed]

the final understanding on all the bargainable issues between the

Township" and the union employees.            The Agreement just as clearly

provided that the Township had agreed to provide medical and dental

insurance to its present employees.                  Nothing in the Agreement

extended this benefit to retirees such as plaintiff.                 Under these

circumstances, the judge properly concluded that the Agreement

controlled    over    the     statements     contained   in   the    Manual   and,

therefore, plaintiff did not have a cognizable claim for health

insurance.

       Contrary to plaintiff's contention, the judge's consideration

of the Manual, the Agreement, and the Handbook did not require him

to treat the motion to dismiss as a motion for summary judgment.

It is well established that "a court may consider documents

specifically referenced in the complaint 'without converting the

motion into one for summary judgment.'"               Myska v. N.J. Mfrs. Ins.

Co.,   
440 N.J.    Super.    458,    482   (App.    Div.   2015)   (quoting    E.

Dickerson & Son, Inc. v. Ernst & Young, LLP, 
361 N.J. Super. 362,

365 n.1 (App. Div. 2003), aff’d, 
179 N.J. 500 (2004)), appeal

                                         8                                A-4889-15T4
dismissed, 
224 N.J. 523 (2016).       Moreover, even if the judge had

treated defendants' motion as one for summary judgment, the final

result would have been the same because defendants were clearly

entitled to a judgment in their favor as a matter of law for the

reasons discussed above.

     Finally, the judge did not err by considering defendants'

motion prior to the close of the discovery period.           A party

alleging that the court should not consider a dispositive motion

because discovery is not complete must demonstrate that "there is

a likelihood that further discovery would supply . . . necessary

information" to establish a missing element in the case.             J.

Josephson, Inc. v. Crum & Forster Ins. Co., 
293 N.J. Super. 170,

204 (App. Div. 1996).      The party must also show, with some

specificity, the nature of the discovery sought and its materiality

to the issues at hand.   In re Ocean County Comm'r of Registration,


379 N.J. Super. 461, 479 (App. Div. 2005).

     Plaintiff did not meet that burden here.     As discussed above,

the terms of the Agreement are clear, as are the conspicuous

disclaimers contained in the Manual and the Handbook.         Because

plaintiff's complaint stated no viable claim for relief, further

discovery was not warranted.

     Affirmed.



                                  9                           A-4889-15T4


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