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Vol. 4 No. 80 – APRIL 26, 1996 STATE COURT CASES DEBTOR/CREDITOR 15-2-8707 Kenvil Mortgage Co., Inc. v. Cranberry Builders, Inc., App. Div. (9 pp.) Wrongful failure to discharge mortgage liens supported award of punitive damages even where there were no compensatory damages. ENVIRONMENT – INSURANCE 17-2-8708 Metex Corp. v. Federal Ins. Co., et al., App. Div (28 pp)(Opinion on reconsideration of earlier opinion, DDS 17-2-8262, March 22, 1996, which has been recalled) Comprehensive general liability policies afford insurance coverage for the costs of cleaning up environmental contamination even absent a legal demand or directive from the NJDEP for the cleanup or a claim by a third party. Case is remanded to determine umbrella or excess liability insurance coverage. [Approved for publication] EVIDENCE – COLLATERAL ESTOPPEL 19-2-8709 Maxwell B. Scheuerer, Jr., et al v. Robert F. Carley, et al., App. Div. (6 pp.) Disorderly person conviction for careless driving is not admissible in civil negligence action arising out of same accident. PHYSICIAN/PATIENT 29-2-8710 Dino Guadagno v. Mauro A. Tucci, M.D., et al, App. Div. (6 pp.) Defendants cannot complain on appeal that the verdict is defective as to allocation of causation among the physicians relating to the effect of the passage of time between plaintiff’s first visit to one physician and the later consultations and surgery with the other physicians because defendants did not raise that objection to the charge or the jury interrogatories. PUBLIC EMPLOYEES 33-2-8711 James P. Kokkalis v. State Operated School District of the City of Newark, App. Div. (4 pp.) Public employer entitled to serve preliminary notice of disciplinary action six months after immediate suspension where the employee was suspended with pay for the entire period before the notice was served. FEDERAL COURT CASES CIVIL PROCEDURE 7-7-8712 The Industry Network System, Inc. v. Armstrong World Industries, Inc., U.S.Dist.Ct. (15 pp.) Where plaintiff tried case on breach of contract claim and jury found breach but awarded no damages, election of remedies doctrine foreclosed plaintiff from seeking the inconsistent remedy of rescission after trial . [Filed April 18, 1996] ENVIRONMENT 17-7-8713 Borough of Sayreville, et al v. Union Carbide Corp., et al, U.S.Dist.Ct (34 pp.) 1. A PRP under CERCLA is restricted to bringing a contribution claim under section 113(f) and cannot also pursue a cost recovery action under section 107(a). 2. A plaintiff who lacks standing to bring an action for natural resource damages recovery also lacks standing to bring an action for declaratory judgment regarding liability for future natural resource damages recovery. [Filed for publication April 10, 1996] TAXATION – ESTATES 35-7-8714 Estate of Esther D. Reddert v. United States, U.S. Dist. Ct. (27 pp.) Testamentary trust which provided for remainder interest to be paid to certain enumerated 501(c)(3) charities but did not meet tests for either charitable remainder annuity trust, charitable remainder unitrust or a pooled income fund required application of the pre-1984 Amendment Rule for reformation because testator executed a will and died before July 17, 1984. [Filed April 10, 1996 for publication] BANKRUPTCY 42-6-8715 In re Geriatrics Nursing Home, Inc., Bankruptcy Ct. (15 pp.) Creditor’s motion to recover legal fees and costs incurred in connection with its formulation of a reorganization plan which, while not accepted, caused the debtor’s revised plan to provide significantly better terms for the creditors, is denied because creditor acted primarily in its own interest and only incidentally conferred a benefit upon the estate. [Filed April 19, 1996]] A Daily Reporter of N.J. Court Decisions

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