P. T. & L. Const. Co. v. Commissioner, Dept. of Transp.

• Decision Date: 08 February 1971
• Citation: 57 N.J. 439,273 A.2d 353
• Parties: P.T. & L. CONSTRUCTION CO., Inc., a corporation of the State of New Jersey, Plaintiff-Appellant, v. COMMISSIONER, DEPARTMENT OF TRANSPORTATION, State of New Jersey, Defendant-Respondent.
• Court: New Jersey Supreme Court

Page 439

57 N.J. 439

273 A.2d 353

P.T. & L. CONSTRUCTION CO., Inc., a corporation of the State of New Jersey, Plaintiff-Appellant, v. COMMISSIONER, DEPARTMENT OF TRANSPORTATION, State of New Jersey, Defendant-Respondent.

Supreme Court of New Jersey.

Argued Jan. 12, 1971.

Decided Feb. 8, 1971.

Theodore W. Geiser, Newark, for appellant (Hughes, McElroy, Connell, Foley & Geiser, Newark, attorneys).

Stephen Skillman, Asst. Atty. Gen., for respondent Commissioner, Dept. of Transp. (George F. Kugler, Jr., Atty. Gen., attorney; Alfred L. Nardelli, on the brief).

PER CURIAM:

Plaintiff sued to recover money withheld by the state for damages caused by its alleged delay in the completion of a job under contract with the state. Before trial, the court dismissed the complaint on the state's defense of sovereign immunity. We certified plaintiff's appeal before argument in the Appellate Division. This Court reversed, 55 N.J. 341, 262 A.2d 195 (1970), holding that a state may be sued on a contract even though satisfaction of a favorable judgment depends wholly upon the willingness of the legislature to accept the judgment and to provide for payment. The case was then remanded for a trial on the merits.

After remand and prior to trial, the legislature enacted L.1970, c. 98 which reads:

1. Except for actions founded upon the constitution of this State or the United States or an express provision of the statutory laws of this State, no action shall be instituted or continued against the State or any department or other agency thereof for the recovery of money damages, whether based on contract or tort, where the cause of action accrues prior to July 1, 1971.

The Attorney General moved before the trial court for a judgment of dismissal on the strength of the above described act. The court granted the Attorney General's motion and dismissed plaintiff's action.

After argument here, the Attorney General, who had prepared the said statute, advised by letter that the legislative purpose of the act was It was not our intention in proposing this legislation, however, to preclude a party such as P, T & L from bringing a claim against the state. In fact, it was specifically contemplated that from June 15, 1970 through July 1, 1971 such a claim would be brought before the Subcommittee on Claims. P.L. 98 was designed, in short, to be interim legislation to give both the executive and legislative branches of government the opportunity to study the problems resulting from...