Skulski v. Nolan

Decision Date17 July 1975
Citation343 A.2d 721,68 N.J. 179
PartiesANTHONY SKULSKI, THEODORE PROCTOR, MICHAEL J. PRESTIA, FRANK J. MOORE, EDWARD T. BADGER, EDNA M. O'NEILL, RAFFAELA MIGLIOCCIO, MICHAEL BONELLI, JAMES DeFELIPPO, FLORENCE KISLER, AND ALMA E. BURKE, PLAINTIFFS-APPELLANTS, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. HELEN WISNIEWSKI, JOHN H. FITZHENRY, JAMES P. CLARK, ADRIAN BRIED, JOSEPH CAPPUCCIO, ELIZABETH DWYER, MARGUERITE CLEMONS, THOMAS J. NATALE, JOHN REIDY, EDWIN M. REILLY, ELIZABETH SHARP, FRANK ESPOSITO, ELIZABETH CIRILLO, THEODORE WRONSKI, ANNA J. ANDREWS, PLAINTIFFS-APPELLANTS, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. JOSEPH GALANO, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. FRANK STEARNS, NICHOLAS FIORE, WILLIAM WHITE, IRVING BARKAN, AND VINCENT L. BODSON, PLAINTIFFS-APPELLANTS, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. DENNIS J. MURRAY, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. GEORGE L. HILLIARD, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. WILLIAM FLAHERTY, NICHOLAS GRABLER AND JOHN FENNELLY, PLAINTIFFS-APPELLANTS, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. FRANCIS L. BOYLE, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. VERONICA TUOHY, ANTHONY MARCHIANO, LAWRENCE KELLY, AND SOLOMON KAMINSKY, PLAINTIFFS-APPELLANTS, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. ROBERT BRADLEY, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. FRANCES CLOUD, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. WILLIAM MacPHAIL AND JOHN GROCHOWSKI, PLAINTIFFS-APPELLANTS, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. MICHAEL G. CARRIG, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. ANDREW GROGAN, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. MARY KAPP, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION DEFENDANT-RESPONDENT. MARGARET RYAN, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. FLOYD SMITH, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. JOHN E. ANNITTO, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. MORRIS CHESLER, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. GERTRUDE CRONIN, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. JOSEPH DeLONG, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. SAM DiNARDO, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT. WILLIAM STEINMETZ, PLAINTIFF-APPELLANT, v. JOSEPH M. NOLAN, RECEIVER OF THE HUDSON COUNTY EMPLOYEES' PENSION COMMISSION, DEFENDANT-RESPONDENT.
CourtNew Jersey Supreme Court
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Mr. James E. Flynn and Mr. Gerald D. Miller argued the cause on behalf of all appellants. (Mr. James E. Flynn, attorney for appellants Frances Cloud, Helen Wisniewski, John Fitzhenry, James Clark, Adrian Bried, Joseph Cappuccio, Elizabeth Dwyer, Marguerite Clemons, Thomas Natale, John Reidy, Edwin Reilly, Elizabeth Sharp, Frank Esposito, Elizabeth Cirillo, Theodore Wronski, Anna J. Andrews). (Messrs. Miller, Hochman, Meyerson & Miller, attorneys for appellants Frank J. Stearns, Nicholas Fiore, William White, Irving Barkam and Vincent L. Bodson).

Mr. Brett S. Dankoff argued the cause for appellant Robert Bradley (Messrs. Chasan, Leyner, Holland and Tarrant, attorneys).

Mr. George J. Kaplan argued the cause for appellant Michael G. Carrigg (Edward J. Lynch, attorney).

Mr. Lawrence P. Brady, Jr. argued the cause for appellant Joseph DeLong, (Messrs. Doyle & Brady, attorneys).

Mr. James F. Ryan argued the cause for appellants Veronica Tuohy, Anthony Marchiano, Lawrence Kelly and Solomon Kaminsky.

Mr. Brian Boyle argued the cause for appellant Francis L. Boyle.

Mr. Jay Scott MacNeill argued the cause for respondent Joseph M. Nolan (Messrs. Nolan, Lynes, Bell & Moore, attorneys).

Mr. Walter S. Cramer appeared for appellant Andrew Grogan.

Mr. John M. Strichek appeared for appellant Dennis J. Murray.

Mr. Howard B. Cubberly appeared for appellant Floyd Smith.

Mr. Seymour Margulies appeared for appellants John Annitto and Morris Chesler (Messrs. Brigadier & Margulies, attorneys).

Mr. J. Leonard Hornstein appeared for appellant Mary Kapp (Messrs. Hornstein & Hornstein, attorneys.)

Mr. Timothy K. Madden, Director, Hudson County Legal Services Corporation filed a brief on behalf of appellants Anthony Skulski, Theodore Proctor, Michael J. Prestia, Frank J. Moore, Edward T. Badger, Edna M. O'Neill, Rafaela Migliaccio, Florence Kisler, Alma Burke, Michael Bonnelli, and James De Fellippo.

Mr. Nicholas H. Politan filed a letter in lieu of brief on behalf of appellant Joseph Galano (Messrs. Checki and Politan, attorneys).

Mr. Robert A. Elkins filed a letter in lieu of brief on behalf of appellant Gertrude Cronin (Messrs. Elkins & Elkins, attorneys).

Mr. Joseph T. Ryan filed a brief on behalf of Margaret Ryan (Messrs. Lamb, Hutchinson, Thompson & Chappell, attorneys).

Mr. Charles H. Landesman filed a brief on behalf of appellants William MacPhail and John Grochowski (Messrs. Law, Froelich & Landesman, attorneys).

Mr. Michael F. Reilly filed a brief on behalf of appellant George Hilliard.

Mr. John P. Doran filed a brief on behalf of appellants William Flaherty, Nicholas Grabler and John Fennelly.

Appellant Sam DiNardo did not file a brief.

Appellant William Steinmetz did not file a brief.

The opinion of the Court was delivered by PASHMAN, J.

This is a series of consolidated cases consisting of 23 appeals involving 57 individuals whose previously granted disability pensions were discontinued by a court-appointed receiver for the Hudson County Pension Commission. The trial court reinstated most of the pensions but the Appellate Division reversed in all but one case which is not included in these appeals. We granted the pensioners' petitions for certification, 67 N.J. 72-76 (1975), to establish guidelines governing the termination of disability pensions, and to consider the applicability of our decision in Ruvoldt v. Nolan, 63 N.J. 171 (1973) to the present dispute. We have concluded that the Appellate Division must be reversed and the appeals remanded to the trial court for disposition in accordance with the principles we set forth today.

The pension disputes which are the subject of the present appeals had their genesis in a 1971 grand jury investigation of the operation of the Hudson County Pension Commission. The investigation ultimately led to the indictment and conviction of the five members of the Commission for criminal activity in connection with their official duties. See State v. Deegan, 126 N.J. Super. 475, 480 (App. Div. 1974), certif. den. 65 N.J. 283, 284 (1974).1 Prior to the trial, however, the Attorney General instituted a civil action in the Superior Court, Chancery Division, seeking, among other things, the appointment of a receiver on the grounds of alleged mismanagement and fraud on the part of the Commission. See Ruvoldt v. Nolan, 63 N.J. 171, 173 (1973). By order dated March 1, 1972, the Chancery Division appointed defendant as receiver, vested with all the functions, powers and duties of the commission.

Although he continued pensions granted for age and service, the receiver suspended payment of disability pensions. Notices of suspension were distributed to all affected pensioners together with forms requesting medical and other pertinent information. After reviewing the material submitted, the receiver continued in effect the suspensions of over 200. Prior to formal termination, however, hearings were held by court-appointed hearing examiners. The receiver made an independent review of the findings of the examiners before ultimately terminating approximately 205 disability pensions. Those who desired reconsideration were also afforded a rehearing before a hearing examiner and further review by the receiver.

The pensioners sought review in the Superior Court, Chancery Division, to determine the validity of the pension terminations. Based upon the record compiled by the receiver and additional testimony presented in support of the claims of various pensioners, the trial court rendered judgment against five of the pensioners,2 expressly relying on the decision in Ruvoldt, but reversed the receiver in all the other cases, thus reinstating the pensions. The court also denied the receiver's counterclaim for return of pension funds in all cases.

In reaching his decision, the trial judge rejected the receiver's contention that the...

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    ...it is clear that in this case the manifest intent of the Legislature cannot otherwise be satisfied. See Skulski v. Nolan, 68 N.J. 179, 202, 343 A.2d 721 (1975); Rothman v. Rothman, 65 N.J. 219, 224, 320 A.2d 496 (1974); see also City of Plainfield v. Pub. Serv. Elec. & Gas Co., 82 N.J. 245,......
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