County of Bergen v. Port of New York Authority
County of Bergen v. Port of New York Authority
Dissenting Opinion
(dissenting). Our old judicial system was enmeshed in technicalities and its judges freely disposed of cases on procedural grounds which had no relation to justice or the merits of the controversy between the parties. Those who in 1948 originally implemented our new judicial system were fully aware of this and they quickly fixed, as one of their high goals, the elimination of the “archaic procedural requirements which had so often frustrated just and expeditious determinations on the ultimate merits.” See Tumarkin v. Friedman, 17 N. J. Super. 20, 21 (App. Div. 1951), certification denied 9 N. J. 287 (1952); Ciocca v. Hacker, 4 N. J. Super. 28, 33 (App. Div. 1949). They zealously set about their task and in 1951 Professor Schnitzer was able to record that “almost every reported case was decided upon the merits.” See Schniizer, “Civil Practice and Procedure” 6 Rutgers L. Rev. 351 (1951). In 1955 Chief Justice Vanderbilt, while summarily rejecting an objection to the standing of the County of Bergen and its county judges to review an order of the Department of Civil Service, noted that it was “discouraging to have such technicalities of procedure solemnly argued when this court has uniformly sought for seven years under the new Constitution to dispose of every case before it on the substantive merits of the controversy.” See Vanderwart v. Department of Civil Service, 19 N. J. 341, 347 (1955). It seems safe to say that if he were here now he would be greatly saddened to observe that not only are such technicalities of procedure
The controversy between the County of Bergen and the Port of New York Authority involves important legal issues which should, in the public interest, be determined justly and expeditiously; indeed it is difficult to understand why a public body such as the Port of New York Authority, instead of extending its efforts towards obtaining an early determination on the merits, has chosen to seek to avoid it on procedural grounds. Apparently the Port of New York Authority is constructing a building in the Borough of Moonaehie, County of Bergen, which it has leased for 20 years to a private corporation for the manufacture of metal windows and doors and is claiming that under L. 1947, c. 43, § 5 (N. J. S. A. 32:1-35.5) it is not required to pay taxes or assessments on the leased property. The county contends (1) that the Port of New York Authority has no legal power to make the aforementioned lease and (2) that if L. 1947, c. 43, § 5 purports to grant a tax exemption on the leased property it is unconstitutional and void. The county might well have instituted a proceeding in lieu of prerogative writ (B. B. 4:88) instead of a proceeding under the Uniform Declaratory Judgments Act (N. J. S. 2A : 16-50 et seq.) but this should be of no present concern for the substance of the controversy remains the same regardless of the form of the action. Cf. Carls v. Civil Service Commission of N. J., 17 N. J. 215, 220 (1955), where the court noted that “refusal to determine the ultimate merits because the appellants mistakenly proceeded by petition for declaratory judgment under Buie 3:81-10 would be unjust and would do violence to the very purposes underlying our new judicial system.” While the county might well have joined the Borough of Moonaehie as a party defendant, this likewise should be of no present concern, for while failure to join the borough might warrant a suitable order of joinder in the Law Division, it would not justify dismissal of the county’s action. Cf. R. R. 4:34. And the doctrine of
The majority evidently takes the position that the action was properly dismissed because the county does not have sufficient standing or interest in the controversy. But, as Justice Proctor’s dissenting opinion points out, and as indeed appears from a discerning reading of the majority opinion itself, the county is in no realistic sense an interloper or stranger but on the contrary is seeking to protect the legitimate interests of itself and its people who are “naturally and properly represented by the County.” See Vanderwart v. Department of Civil Service, supra, 19 N. J., at page 348; Nolan v. Fitzpatrick, supra, 9 N. J., at page 484; cf. Driscoll v. Burlington-Bristol Bridge Co., 8 N. J. 433, 474 (1952), certiorari denied 344 U. S. 838, 73 S. Ct. 25, 97 L. Ed. 652 (1952), rehearing denied 344 U. S. 888, 73 S. Ct. 181, 97 L. Ed. 687 (1952); Abbott v. Beth Israel Cemetery Ass’n of Woodbridge, 13 N. J. 528, 541 (1953).
When dealing with problems of standing and other procedural matters, the pervading judicial attitude perhaps plays a more important part than the formal court rules. See Meszaros v. Gransamer, 23 N. J. 179, 189 (1957). Since the inception of our new system and until today the judicial attitude has been a very wholesome one, resulting in the rejection of many attacks on the standing of plaintiffs who sought to obtain determinations as to the legality of the conduct of public officials and public agencies. Thus in Haines v. Burlington County Bridge Commission, 1 N. J. Super. 163 (App. Div. 1949) the court entertained proceedings which attacked the acquisition by the Burlington County Bridge Commission of toll bridges across the Dela
When dealing with proceedings by plaintiffs other than taxpayers, our courts have displayed comparable liberality in rejecting attacks on their standing, particularly where the public interest coincided with the desire of the plaintiffs to obtain just and expeditious determinations on the merits. Thus in New Jersey State Bar Ass’n v. Northern New Jersey Mortgage Associates, 22 N. J. 184 (1956), it was held that the State Bar Association had standing to obtain a determination as to whether the conduct of the defendants constituted the unlawful practice of the law; in Greenspan v. Division of Alcoholic Beverage Control, 12 N. J. 456 (1953), it was held that a dealers association had standing to attack an allegedly illegal issuance of a liquor license; in Jersey City v. Hague, 18 N. J. 584 (1955), it was held that the City of Jersey City had standing to bring proceedings against former city officials who allegedly had extorted moneys from city employees; in Driscoll v. Burlington-Bristol Bridge Co., supra, it was held that the Governor and Attorney General had standing to attack the acquisition of bridges by the Burlington County Bridge Commission; in Abbott v. Beth
Law should be based on reason and I know of no sound reason which would in any wise justify precluding the county from obtaining determinations on the legal issues it has sought to raise. The majority suggests that sustaining the county’s standing to sue would “invite confusion” but this is difficult to follow in view of the acknowledged right of an individual taxpayer to maintain the action. The majority also suggests that there would be “a diversion of public funds from the purposes for which they were entrusted.” The county’s action was instituted through its regularly engaged county counsel and so far as appears there would be no substantial expenditure of county funds; furthermore in no fair or just sense could it be said that the county’s maintenance of a proceeding challenging the legality of the Port of New York Authority’s conduct within the county was not in fulfillment of the county’s public functions; on the contrary its action was in faithful discharge of its responsibilities and truly advanced the public interest. See Elizabeth Federal Savings & Loan Ass’n v. Howell, 24 N. J. 488 (1957) where the court, in sustaining the
“ ‘The courts, in holding, as they sometimes do, that someone like a competitor or a consumer has no standing, have lost sight of the overriding need in our system—to make sure that someone shall in fact be able to secure review of administrative action. It is only if this need is satisfied that the principle of administrative legality can truly be enforced. It is in the interest of the community as a whole that illegal agency action be not left untouched. It is for the judiciary to vindicate this interest by ensuring that there are no unnecessary obstacles in the path of those seeking to challenge the legality of administrative action. To construe the standing requirement as our courts sometimes do is to place an unnecessary obstruction on the road of justice.’ ” 24 N. J., at page 502.
See Frank v. Clover Leaf Park Cemetery Ass’n, 29 N. J. 193, 209 (1959).
In Al Walker, Inc. v. Borough of Stanhope, 23 N. J. 657 (1957), the court recently pointed out that in our State, perhaps' more than any other, legal proceedings have been made available as safeguards against “wrongful official action.” There an attack on a municipal ordinance regulating house-trailers was brought by a plaintiff who was neither a taxpayer nor citizen of the municipality but was a dealer in house-trailers with a place of business in another municipality. In rejecting an objection to the plaintiff’s standing the court cited the Haines doctrine and its liberality in sustaining the standing of a plaintiff, particularly where such approach coincides with the public interest in having an early and dispositive judicial determination of the legality of legislative or administrative action; in concluding its opinion the court made the following comments which bear repetition here:
“We are satisfied that, under the particular circumstances presented in the instant matter, the plaintiff may fairly be deemed to have a sufficient standing to maintain its action. There has been real and substantial interference with its business and the serious legal questions it has raised should, in the interest of the public as*322 well as the plaintiff, be passed upon without undue delay. We are not disturbed by the Borough’s spectre that continued logical liberalization of the standing requirement might bring a flood of litigation which would tax our judicial facilities and unduly burden our governmental subdivisions. Justice Holmes long ago pointed out that experience rather than logic is the life of the law—there should be little doubt as to this court’s capacity to deal fairly and effectively with the suggested eventuality. In the meantime, justice would appear to dictate that the plaintiff be afforded an opportunity to be heard on the merits of the claim it has been diligently seeking to assert since the institution of its action in the Law Division.” 23 N. J., at page 666
I would reverse and remand the cause for further proceedings in the Law Division.
Opinion of the Court
The opinion of the court was delivered by
The County of Bergen appeals from a judgment determining that its complaint fails to set forth a claim for relief. We certified the appeal on our motion before the Appellate Division acted upon it.
Defendant, The Port of New York Authority, is a body corporate and politic created by a compact between the States of New Jersey and New York (R. S. 32:1-4) with the consent of the Congress of the United States. (42 Stat. 174). It is an agency of both states to further their common interests within the jurisdiction committed to it. Port of New York Authority v. Weehawken Tp., 27 N. J. Super. 328, 333 (Ch. Div. 1953), reversed for reasons not here pertinent, 14 N. J. 570, 575 (1954).
The complaint alleges the Port Authority is authorized by Chapter 81 of the Laws of 1949 (N. J. S. A. 32 :1-35.18 et seq.) to acquire real property for the air terminal known as Teterboro Airport in the Boroughs of Teterboro, Moonachie and Carlstadt in the County of Bergen; that pursuant to said statute and in accordance with Chapter 43 of the Laws of 1947 (N. J. S. A. 32:1-35.1 et seq.) the Port Authority acquired for the Teterboro Airport a plot described as Block 92 on the official assessment map of the Borough of Moonachie; that the Port Authority constructed an industrial building on said plot and leased it to defendant Jersey Screen and Storm Window Company, Inc. for a term of 20 years at an annual rental of $110,390 for the manufacture of metal windows and doors. This lease, the complaint charges, is unrelated to any air terminal purpose, and unless it is judicially declared that the Port Authority is without power to erect and lease buildings for
The pivotal question is whether the county has an interest sufficient to support this action. The Uniform Declaratory Judgments Act is designed “to settle and afford relief from uncertainty and insecurity with respect to rights, status and other legal relations.” N. J. S. 2A: 16-51. A person (including a municipal corporation) “whose rights, status or other legal relations are affected by a statute * * * may have determined any question of construction or validity arising under the * * * statute * * * and obtain a declaration of rights, status or other legal relations thereunder.” N. J. S. 2A :16-53. This enumeration, N. J. S. 2A: 16-52 provides, does not exhaust the broad authority in the act “to declare rights, status and other legal relations.” In essence, a plaintiff must have an interest in the subject matter in order to maintain a declaratory judgment action. This requirement reflects the wholesome general rule that litigation shall not be maintained by strangers to a controversy. Cf. New Jersey Turnpike Authority v. Parsons, 3 N. J. 235, 240 (1959); New Jersey Bankers Ass'n v. Van Riper, 1 N. J. 193, 196 (1948). The trial court could find no interest in the county either in its own right or as a representative of others. We agree.
The complaint refers to the subject of exemption from taxation. It does not however seek to compel an assessment or to obtain an adjudication that the specific property leased by the Port Authority to the co-defendant is taxable. The prayer is that the statute be declared unconstitutional if it purports to grant exemption in the general circumstances alleged in the complaint and thus the issue is but obliquely suggested. Defendants deny the county is at all interested since its budgetary needs must be met by assessments by the taxing districts and its revenue does not depend upon the amount of taxable ratables. The county concedes this is true but argues that in determining the amount of its budget it cannot realistically ignore the total tax rate and hence is concerned with the amount of the ratables because of the impact thereof upon the dollar rate. It further points out that its borrowing capacity is hinged to the amount of ratables. R. S. 40 .T-14 and 82; 40:2-38 and 49. In either aspect, the county’s interest is indirect and rather remote. The same observation perhaps could be made with respect to a municipality’s interest in the subject of exemption, but, as defendants point out, the Legislature placed the official responsibility in the municipality rather than in the county. It is the assessor of the municipality who makes the assessment. N. J. S. A. 54 :A-12 and 23. Appeals are authorized to be prosecuted only by taxpayers and taxing districts. N. J. S. A. 54:3-21. Omitted property may be added by the county board on its own motion or upon the complaint of the collector of taxes, any taxpayer, or the taxing district or its governing body. N. J. S. A. 54:L-63.13. The county thus is not among those legislatively determined to be parties in interest.
At any rate, if despite the lack of legislative authorization the county could be found to have a status to litigate an exemption, we are satisfied the present action is not the appropriate vehicle. As we have already said, we are not at all sure the complaint has that objective. The county did not join the Borough of Moonachie despite the obvious fact that it would be a necessary party to a suit for a declaration upon that matter. N. J. S. 2A :16-56. Although, if we misconceive the nature of the interest the county here asserts, this difficulty could be met by adding the borough as a party, still we see no reason to by-pass the administrative process devised by the Legislature to deal with the taxation of property. Central Railroad Co. v. Neeld, 26 N. J. 172 (1958), certiorari denied 357 U. 8. 928, 78 S. Ct. 1373, 2 L. Ed. 2d 1371 (1958). The borough has assessed the property, and hence the issue is now in the appropriate forum for findings of fact and initial determination.
Hext the county cites R. S. 40:23-5 which empowers its board of freeholders to “appropriate such sums as it shall deem necessary for the purpose of advertising in newspapers, magazines or otherwise, either within or without the
Actually the complaint does not allege the Port Authority has done anything to impair those advantages and attractions. The sole allegation is that the Port Authority may use its governmental franchises “to engage in private enterprises in direct competition with private capital and privately owned property and circumventing the tax laws of this State, thereby causing great loss and detriment to the County of Bergen and to the municipalities and inhabitants thereof and to the owners of property located therein.” It is not charged the lease to the co-defendant is at a rental below
Hence we cannot find any charge of actual or threatened hurt to any property or political interest held by or entrusted by law to the county. What the complaint really seeks to do is to vindicate the general public interest upon an allegation that another agency of government, the Port Authority, is exceeding its statutory powers. A taxpayer concededly may sue to that end as the representative of the public. The county claims that it may represent the public’s representative, that is, the taxpayer, and thus assume the role of defender of the general public interest. We think it may not.
The county cites Driscoll v. Burlington-Bristol Bridge Co., 8 N. J. 433, 474 (1952), certiorari denied 344 U. S. 838, 73 S. Ct. 25, 97 L. Ed. 652 (1952) for the proposition that the members of the board of freeholders stand in a fiduciary relationship to the people whom they serve and as “fiduciaries and trustees of the public weal they are under an inescapable obligation to serve the public with the highest fidelity.” But Driscoll did not suggest the board is trustee of the total public weal. Rather its fiduciary obligation relates to the portion of the public authority committed to it and the properties and funds it receives for its assigned role. Ear from suggesting the county thereby becomes the champion of any and all public interests, the opinion points out that the Governor and Attorney General are the official vindicators of the public right (at page 476 of 8 N. J.). See also Public Service Coordinated Transport v. State, 5 N. J. 196, 208 (1950).
To express it in other terms, each governmental entity is parens patriae within the orbit of its own political responsibility. Thus it has been held that the United States, rather than the State, represents the citizens in their relations to the Eederal Government. State of Georgia v. Pennsylvania
The county has not been • expressly constituted the guardian of its citizens in their relations with the bi-state agency. Nor is that authority implicit in the nature of a county. Historically the county was solely a subdivision of the State constituted to administer state power and authority. It differed from a municipality in that, whereas a municipality was created upon the request or with the consent of the inhabitants to act both as a body politic on behalf of the State and also as a representative of the inhabitants for their local convenience in its so-called corporate or proprietary capacity, the county on the other hand was created by the State without regard to local wishes and solely to serve as a body politic. 14 Am. Jur., Counties, §§ 3-4, pp. 185-187; Sacramento County v. Chambers, 33 Cal. App. 142, 164 P. 613, 614 (Dist. Ct. App. 1917); Cook County v. City of Chicago, 311 Ill. 234, 142 N. E. 512, 513, 31 A. L. R.
We are not concerned with the status of a municipality or other unit of local government to protect its public property such as roads or public parks, State by State Highway Com’r. v. Cooper, 24 N. J. 261, 275 (1957), certiorari denied 355 U. S. 829, 78 S. Ct. 41, 2 L. Ed. 2d 42 (1957); or to recover profits or illegal gains extorted by its agents, Jersey City v. Hague, 18 N. J. 584 (1955); or to enforce for the benefit of its citizens the obligations of public utilities arising out of contracts made with the municipality or under its ordinances granting a franchise, City of Bridgeton v. The Bridgeton and Millville Traction Co., 62 N. J. L. 592, 601 (Sup. Ct. 1899); Boonton v. Boonton Water Co., 69 N. J. Eq. 23, 24 (Ch. 1904), affirmed Mayor, etc., Town of Boonton v. United Water Supply Co., 70 N. J. Eq. 692 (E. & A. 1906); or to appropriate moneys to address the Legislature or to publicize its position on proposals for constitutional changes affecting its revenue or political powers,
We know of no decision in our State which supports the county’s claim to the role it here assumes. Nor can we find significant support elsewhere. On the contrary, the out-of-state cases we have already cited go the other way. So it has been held that a municipality may not attack the actions of other state agencies solely on the thesis that it represents its citizen taxpayers. State ex rel. City of Sheboygan v. County Board of Supervisors, 194 Wis. 456, 216 N. W. 144 (Sup. Ct. 1927); City of Appleton v. Bachman, 197 Wis. 4, 220 N. W. 393 (Sup. Ct. 1928); City of Racine v. Levitan, State Treas., 196 Wis. 604, 220 N. W. 398, 221 N. W. 109 (Sup. Ct. 1928). In City of Appleton the city advanced an argument much resembling the theme of the county here in asserting handicaps indirectly ensuing from the actions of the Port Authority. The Wisconsin court concluded (at page 398 of 220 N. W.) that “While the city has many powers, duties, and functions, it is not made the guardian of its citizens in their relations with the state and county.” And in City of Racine, the Wisconsin court characterized a spate of litigation parens patriae as “a curious development” and held (at page 399 of 220 N. W.) “It is no part of the business of a city to censor and supervise the activities of its creator, the state.” See also City of Georgetown v. The Alexandria Canal Co., 12 Pet. 91, 99, 9 L. Ed. 1012, 1016 (1838); State ex rel. Chilton County v. Butler, 225 Ala. 191, 142 So. 531 (Sup. Ct. 1932); Park v. Modern Woodmen of America, 181 Ill. 214, 54 N. E. 932, 938 (Sup. Ct. 1899); City of Chelsea v. Treasurer and Receiver General, 237 Mass. 422, 130 N. E. 397 (Sup. Jud. Ct. 1921); County of Wayne v. Michigan Public Service Comm., 343 Mich. 144, 72 N. W. 2d 109 (Sup. Ct. 1955).
It is difficult to foresee all eventualities. It may be that situations will arise in which despite the absence of an intru
The judgment is accordingly affirmed.
Dissenting Opinion
(dissenting). I must dissent, as it is my belief that the County of Bergen has a sufficient interest to maintain the present action.
All the assessed property in Bergen County contributes to the support of the county government. If the use of tax-exempt Port Authority property for private rental is unlawful, then the removal of that property from the assessment rolls unlawfully reduces the amount of property liable for contribution, and distributes the burden of contribution unfairly throughout the county.
It is obvious that Bergen County’s annual budget is determined with regard to the amount of property liable for contribution. Surely a board of freeholders, sensitive to its duties and the welfare of the county’s inhabitants, cuts its budgetary cloth to the pattern fixed by the property available for taxation. Therefore, it seems to me unrealistic for the majority to assert that the county’s interest in protecting the assessment rolls from unlawful reduction'- is “indirect and rather remote.” It is conceded that any taxpayer in Bergen County, with his minute economic stake in the present controversy, would have standing to sue. Why, then, should the county, whose stake is cumulative of every taxpayer, and whose ability to distribute the cost of litigation is,similarly.cumulative, not .have the same standing?
For affirmance—Chief Justice Weintraub, and Justices Burling, Prancis, Hall and Sohettino—5.
For reversal—Justices Jacobs and Proctor—2.
Reference
- Full Case Name
- County of Bergen, Plaintiff-Appellant, v. Port of New York Authority and Jersey Screen and Storm Window Company, Inc., Defendants-Respondents
- Cited By
- 57 cases
- Status
- Published