IN THE MATTER OF LYNDSAY V. RUOTOLO ACTING UNION COUNTY PROSECUTOR

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                                                     SUPERIOR COURT OF NEW JERSEY
                                                     APPELLATE DIVISION
                                                     DOCKET NO. A-1607-20
                                                                A-2037-20

IN THE MATTER OF
LYNDSAY V. RUOTOLO,
ACTING UNION COUNTY
PROSECUTOR.
_______________________

                Argued March 30, 2022 – Decided April 18, 2022

                Before Judges Messano, Accurso, and Marczyk.

                On appeal from the New Jersey Department of Law and
                Public Safety, Office of the Attorney General.

                Moshood Muftau, Deputy County Counsel, argued the
                cause for appellant Lyndsay V. Ruotolo (Bruce H.
                Bergen, Union County Counsel, attorney; Steven H.
                Merman, Assistant County Counsel, and Miah Hagood,
                admitted pursuant to Rule 1:21-3(b), on the briefs).

                Austin W.B. Hilton, Deputy Attorney General, argued
                the cause for respondent Office of Attorney General
                (Matthew J. Platkin, Acting Attorney General, attorney;
                Jane C. Schuster, Assistant Attorney General, of
                counsel; Austin W.B. Hilton, on the brief).

PER CURIAM
      We consolidate these two appeals, argued back-to-back, for the purpose

of issuing a single opinion. Both cases involve the same issue – specifically,

whether the Office of the Attorney General, New Jersey Department of Law and

Public Safety (OAG) is required to defend and indemnify Lyndsay Ruotolo in

her capacity as the Acting Union County Prosecutor in two underlying cases

alleging violations of the New Jersey Law Against Discrimination (LAD),

 N.J.S.A. 10:5-1, the Conscientious Employee Protection Act (CEPA),  N.J.S.A.

34:19-1, and other related employment claims. The OAG denied Ruotolo's

requests for representation, determining the claims in the respective complaints

concerned alleged personnel decisions by Ruotolo, which involved her

administrative functions for which the State is not obligated to defend and

indemnify, thus leaving the obligation to Union County. We affirm.

                                       I.

      We review the OAG's administrative determination in accordance with a

deferential standard of review. An appellate court affords a "strong presumption

of reasonableness" to an administrative agency's exercise of its statutorily

delegated responsibilities. City of Newark v. Nat. Res. Council, Dep't of Envtl.

Prot.,  82 N.J. 530, 539 (1980). The reviewing court "should not reverse the

Attorney General's determination unless it is arbitrary, capricious or


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                                       2
unreasonable or it is not supported by substantial credible evidence in the record

as a whole."    Prado v. State,  186 N.J. 413, 427 (2006).         "The burden of

demonstrating that the agency's action was arbitrary, capricious or unreasonable

rests upon the [party] challenging the administrative action." In re J.S.,  431 N.J.

Super. 321, 329 (App. Div. 2013) (internal quotation marks omitted).

      To determine whether an agency decision "is arbitrary, capricious or

unreasonable," an appellate court must determine:

            (1) whether the agency's action violates express or
            implied legislative policies, that is, did the agency
            follow the law; (2) whether the record contains
            substantial evidence to support the findings on which
            the agency based its action; and (3) whether in applying
            the legislative policies to the facts, the agency clearly
            erred in reaching a conclusion that could not reasonably
            have been made on a showing of the relevant factors.

            [In re Stallworth,  208 N.J. 182, 194 (2011) (quoting In
            re Carter,  191 N.J. 474, 482-83 (2007)).]

      Although an appellate court defers to an administrative agency's findings

of fact, see Mazza v. Bd. of Trs., Police & Firemen's Ret. Sys.,  143 N.J. 22, 25

(1995), it is not "bound by [an] agency's interpretation of a statute or its

determination of a strictly legal issue." Norfolk S. Ry. Co. v. Intermodal Props.,

LLC,  215 N.J. 142, 165 (2013) (internal quotation marks omitted). Thus, to the




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extent that the OAG's determination constitutes a legal conclusion, we review it

de novo.

                                      II.

      Lyndsay Ruotolo was appointed by the Attorney General to serve as a

Special Attorney General/Acting Prosecutor of Union County, pursuant to

 N.J.S.A. 52:17B-106. Ruotolo argues the OAG should be required to defend

and indemnify her because, as the Acting Prosecutor, she was still an employee

of the OAG. Ruotolo argues the OAG erred in relying on Wright v. State,  169 N.J. 422, 435-57 (2001), and DeLisa v. Bergen County,  326 N.J. Super. 32, 39-

41 (App. Div. 1999). Ruotolo further contends the OAG failed to consider that

even in her capacity as Acting Prosecutor, she was an employee of the State

under  N.J.S.A. 59:10-1 and  N.J.S.A. 59:10A-1.

      The OAG counters that under Wright and its progeny, the State has no

duty to defend and indemnify a county prosecutor when they are sued for

carrying out administrative, as opposed to classic, law enforcement, functions.

That is, while the State is obligated to defend and indemnify prosecutors for

their alleged misconduct involving the investigation and enforcement of

criminal laws, the County is ultimately responsible for defending prosecutors

against claims involving his or her conduct with respect to personnel decisions.


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                                       4
                                        III.

      Our Supreme Court in Wright determined that county prosecutors occupy

a "hybrid" role, serving both the county and the State, and clarified when the

State must defend and indemnify county prosecutors.  169 N.J. at 455-56. The

Court noted:

              [b]ecause of their hybrid status, we need not regard as
              determinative, whether the county prosecutors . . . have
              been considered "State employees" within the meaning
              of the defense and indemnification provisions, N.J.S.A.
              59:10-1 and  N.J.S.A. 59:10A-1. Instead, we focus on
              whether the function that the county prosecutors . . .
              were performing during the alleged wrongdoing is a
              function that traditionally has been understood to be a
              state function and subject to state supervision in its
              execution.

              [Id. at 454.]

In short, the Wright Court rejected the same argument advanced by Ruotolo that

defense and indemnification decisions are controlled by  N.J.S.A. 59:10- -1 and

 N.J.S.A. 59:10A-1.        The Court ultimately determined that when county

prosecutors are involved in an investigation and enforcement of the State's

criminal laws, the State is obligated to pay for their defense and indemnification.

Id. at 455.

      Significantly, the Wright Court relied on Coleman v. Kaye,  87 F.3d 1491

(3d Cir. 1996), to distinguish between a prosecutor's law enforcement activities

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                                         5
and administrative functions. Distinguishing the "dual or hybrid" status of

prosecutors, the Wright Court noted:

            It is well established that when county prosecutors
            execute their sworn duties to enforce the law by making
            use of all the tools lawfully available to combat crime,
            they act as agents of the state. On the other hand, when
            county prosecutors are called upon to perform
            administrative tasks unrelated to their strictly
            prosecutorial functions, such as the decision whether to
            promote an investigator, the county prosecutor, in
            effect, acts on behalf of the county that is the situs of
            his or her office.

            [Wright,  169 N.J. at 451 (quoting Coleman,  87 F. 3d at
            1499).]

      In DeLisa, the court addressed the same issue presently before this court.

There, the county prosecutor was being sued for an alleged retaliatory discharge

of an employee under CEPA.  326 N.J. Super. at 35. Significantly, the county

prosecutor was also a deputy attorney general appointed to serve as the Bergen

County Prosecutor, just as Ruotolo was assigned to the Union County

Prosecutor's Office here. Id. at 39-40. The DeLisa court recognized the hybrid

or dual status of the prosecutor and noted he was serving "two masters" in his

capacity as a county prosecutor. Id. at 40. Because the county prosecutor was

being sued under CEPA, he was not acting in his capacity as a law enforcement




                                                                          A-1607-20
                                       6
officer for the purposes of that litigation.    Rather, he was acting in his

administrative role. Accordingly, we determined:

            [I]n these circumstances, where a deputy attorney
            general was performing a dual function for the benefit
            of two governmental entities, the county cannot obtain
            reimbursement for the cost of defending a claim
            relating to his administrative conduct. We so hold,
            given the action was based upon a personnel decision
            of the acting county prosecutor, especially where the
            record reflects no endeavor by the county to have the
            state provide representation or consent to retention of
            outside counsel . . . under a "reservation of rights"
            approach.

            [Id. at 40-41.]

      Ruotolo attempts to distinguish DeLisa because she sought defense and

indemnification by directly requesting representation from the OAG. Ruotolo

focuses on the language in DeLisa, where we stated the OAG need not provide

a defense and indemnification, "given the action was based upon a personnel

decision of the acting county prosecutor, especially where the record reflects no

endeavor by the county to have the state provide representation . . . ." Ibid.

(emphasis added). Ruotolo essentially argues this language limits our holding

in DeLisa to those cases where a county fails to timely request representation

directly from the State. We are not persuaded by this argument. Judge Stern's

comment regarding the county’s failure to request representation from the State


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                                       7
or permission to retain outside counsel, is dicta. We were simply providing a

further reason—not the dispositive reason—why the State was not required, in

that case, to defend and indemnify the prosecutor. Both our court in DeLisa and

the Supreme Court in Wright clearly held that when a county prosecutor

(regardless of whether he or she is a deputy attorney general) acts in an

administrative capacity with regard to employment-related issues, the State is

not required to defend and indemnify the county. That is, the determinative

factor hinges on the administrative or law enforcement function of the

prosecutor that is at issue in a particular case, not the manner in which

representation is sought from the OAG.

      Finally, while Wright was decided before DeLisa, our Supreme Court has

recently cited favorably to DeLisa. In Gramiccioni v. Department of Law &

Public Safety, the Court specifically referenced DeLisa and noted: "Thus, cases

[such as DeLisa] in which courts correctly have found that the state did not need

to indemnify and defend prosecutors have involved . . . internal operations of a

prosecutor's office."  243 N.J. 293, 313 (2020). The Supreme Court has in no

way indicated that our courts should consider the manner in which a county

prosecutor seeks representation from the OAG as determining whether the OAG

must defend and indemnify a county prosecutor.


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                                       8
     Accordingly, for the reasons set forth above, the OAG is not required to

defend or indemnify Ruotolo.

     Affirmed.




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