Posted by: Patricia Salkin | October 12, 2010

NJ Court Finds Planning Board Member’s Resignation Avoided Determination of Unethical Conduct

This case involved four distinct pieces of litigation; however, a settlement was reached between interested parties with the exception of Tinton’s third-party complaint against Abrams and Saymark Realtors. Abrams was a member of the Planning Board, Board of Adjustment and also the Environmental Commission in Tinton.  At this time he was also a real estate broker and a principal of Saymark Realtors.  The complaint alleged that Abrams as a public official, and a developer, who was his client, “acted in concert to form a corrupt enterprise to use Abram’s public positions for a private end in violation of” various statutes and the common law principles of ethical conduct.

The court denied Tinton’s motion for summary judgment and granted Abrams’ motion as the evidence was not sufficient to find any unethical conduct, and Tinton could not establish damages.

The court concluded that when Abrams was occupying both roles, as the developer’s consultant and a public official, his public official position did not concern matters relating to the client. When such a matter did arise creating a conflict, he recused himself, and where there was a vote regarding his client’s interests, Abrams resigned from his public position.

Furthermore, for an award of damages to be granted to a municipality for unethical conduct, the municipality must make a showing that the unethical conduct directly led to financial losses. As Tinton could not demonstrate such losses, their damages claim likewise failed.

Newman-Steele v. the Mayor and Town Council of Tinton Falls, 2010 N.J. Super. Unpub. LEXIS 2009 (N.J. Super. Ct. App. Div. Aug. 17, 2010),

The opinion can be accessed at: http://lawlibrary.rutgers.edu/courts/appellate/a1812-08.opn.html


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