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Defense Digest

Reconsidering Reconsideration

Defense Digest, Vol. 27, No. 5, December 2021

December 1, 2021

by Walter F. Kawalec III

Key Points:

  • The standards applicable to reconsideration vary depending on whether it is a motion from an interlocutory order or a final order.
  • Reconsideration of final orders is a much harder standard, whereas reconsideration of interlocutory orders only requires consideration of the court’s “sound discretion” and the “interest of justice.”
  • Parties who want to seek interlocutory appeal after requesting reconsideration should take special care to file a timely motion for reconsideration so as not to miss the time limit for petition for interlocutory appeal.

Let us take a moment to reconsider reconsideration. In a recent case before the New Jersey Appellate Division, Lawson v. Dewar, 256 A.3d 388 (N.J. Super. App. Div. 2021), the court took the opportunity to clarify the different standards that apply to reconsideration.

In Lawson, the plaintiff filed suit against a municipality and a number of police officers, alleging the officers used excessive force when arresting him. After a case management conference, the plaintiff moved for an additional extension of discovery, the right to take certain depositions, reconsideration of an order barring a witness from testifying after the witness failed to appear for a subpoenaed deposition, leave to file an amended complaint, and for the defendant to turn over all use-of-force reports.

On May 14, 2020, the court denied most of the relief sought, and the plaintiff filed a motion for reconsideration. While the reconsideration motion was pending, the venue of the case was changed from Somerset to Middlesex County. The parties argued the reconsideration motion, and the Middlesex County judge denied it. The plaintiff filed a petition for leave to appeal, which the Appellate Division granted. 

On appeal, the Appellate Division first set out the legal principles that the Middlesex County judge invoked, including the coordinate-jurisdiction rule, which cautions against reversing the decisions of coequal members of the judiciary, and the law-of-the-case doctrine, that cautions against reconsidering decisions that have already been determined in the case. It also noted that the Middlesex County judge found that the reconsideration motion presented no new facts; that the plaintiff failed to show that the Somerset County judge acted in an arbitrary, capricious or unreasonable manner; that the initial decision was not based on a palpably incorrect or irrational basis; and that the previous judge did not fail to appreciate the significance of probative, competent evidence.

The Appellate Division then took the opportunity to clarify the rules that apply to the two general species of reconsideration: reconsideration of an interlocutory order and reconsideration of a final order or judgment. The New Jersey Rules of Court and case law treat each differently, but they are often confused.

The court noted that the principles the Middlesex County judge discussed apply to a motion for reconsideration from a final order. In that situation, Rule 4:49-2 applies, and a party must file within 20 days. Further, the standard that the Middlesex Court described—usually credited to the case of Cummings v. Bahr, 685 A.2d 60 (N.J. Super. App. Div. 1996)—applies. In motions for reconsideration after a final order, a party must demonstrate that the judge who issued the order sought to be reconsidered decided it in an arbitrary, capricious or unreasonable manner; that the decision was based on a palpably incorrect or irrational basis; or that the judge failed to appreciate the significance of probative, competent evidence.

However, on motions for reconsideration of interlocutory orders, by contrast, the same standard does not apply. Rule 4:42-2 governs reconsideration of interlocutory orders and provides a far more liberal approach. Until a final order is issued, the “interest of justice” and the judge’s “sound discretion” guide reconsideration of an interlocutory order. Moreover, there is no time limit to reconsider interlocutory orders.

Additionally, the Appellate Division restated that neither the coordinate-jurisdiction rule nor law-of-the-case doctrine apply to interlocutory reconsideration motions and should correct errors made by other judges when justice requires.

The Lawson court, however, did not address an important consideration regarding reconsideration. While there is no time limit to petition for reconsideration of an interlocutory order, if a party wants to seek an immediate appeal of an interlocutory order, a 20-day time limit applies. A motion for reconsideration tolls that time limit, but only if the reconsideration motion is filed within 20 days. Therefore, while there is no time limit for filing a reconsideration motion on an interlocutory order, a party wishing to file a motion for interlocutory appeal after filing for reconsideration must file the reconsideration motion within 20 days or they may be out of time to seek interlocutory appeal.

*Walt is a shareholder in our Mount Laurel, New Jersey, office and is a member of our Appellate Advocacy and Post-Trial Practice Group. He can be reached at 856.414.6024 or wfkawalec@mdwcg.com.

 

Defense Digest, Vol. 27, No. 5, December 2021 is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2021 Marshall Dennehey Warner Coleman & Goggin. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

Commonwealth Court Reaffirms the Constitutionality of Act 111's IRE Provisions

In this case, the claimant sustained a work injury of January 6, 1994, which was acknowledged by Notice of Compensation Payable (NCP). After the claimant’s receipt of 104 weeks of temporary total disability benefits, the employer filed a Request for an Impairment Rating Examination (IRE). The IRE was performed in May 2023 and the IRE physician found that the claimant had a 5% whole person impairment, under the AMA Guides. The employer filed a Petition based on the IRE results, and the Petition was granted by the WCJ. During litigation, the claimant argued that the IRE provisions of Act 111 (Section 306(a.3) of the Act) were not applicable to her injury, since it predated June 24, 1996, the date Act 57 went into effect, and that the IRE provisions were unconstitutional. The Workers’ Compensation Judge (WCJ)) granted the Petition and the Board affirmed. On appeal to the Commonwealth Court, the claimant argued that Act 111 violated the nondelegation doctrine and that its retroactive application to the claimant’s injury was unconstitutional. The court rejected the arguments on the basis that they had already found the same arguments without merit in multiple, prior cases. The court also addressed an argument made by the claimant that Act 111 was procedurally defective under the Pennsylvania Constitution because it was only considered on two days in each House after having undergone amendments and reassignments. The court noted that the Pennsylvania Constitution requires every bill to be considered on three different days in each House. The claimant maintained that, according to the legislative history, the bill did not receive three separate days of consideration from each House when it was assigned a new bill number. The court pointed out, however, that the bill number, H.B. 1840 remained constant and was considered on three occasions by the House. Further, the court concluded that minor amendments to the bill were germane to its original subject, which was to modify the Act’s IRE process, in accordance with Protz II.

Thought Leadership

The Tolling Trap: Filing Alone Will Not Toll the Statute Without Good-Faith Service

The Eastern District of Pennsylvania recently reinforced a critical limitation on bad faith claims, holding that a timely filing alone will not preserve a cause of action absent a good-faith effort to serve the original process. The plaintiff had presented a claim for underinsured motorist benefits to his auto insurer. The insurer evaluated the claim and determined that the plaintiff’s accident-related damages did not exceed the bodily injury liability insurance limits of the at-fault driver and denied his claim. Among other claims, the plaintiff sought to present a claim for insurance bad faith under 42 Pa. C.S.A. § 8371, to which a two year statute of limitation applies. He first filed a praecipe for writ of summons before the expiration of the statute of limitation. However, the plaintiff did not attempt to serve the praecipe or writ until after the statute of limitations had expired. Additionally, the service failed as the plaintiff had mailed the original process to an incorrect address. Despite receipt of the Postal Service’s failure to deliver the original process, the plaintiff did not attempt to re-serve the writ. Two months later, the plaintiff filed a complaint and then successfully served that complaint. The insurer sought to dismiss the plaintiff’s bad faith claim as time-barred by the statute of limitations. The district court agreed. Though the plaintiff had filed a praecipe for a writ of summons prior to the expiration of the statute of limitations, the statute is only tolled if there is a good faith effort to serve that original process. In this case, the court determined that the plaintiff had failed to perform a “good faith effort to serve the original process”. Additionally, though the filing and service of a complaint can serve as alternative original process when the lawsuit is commenced by the filing of a praecipe for a writ of summons, the plaintiff filed his complaint after the statute of limitations had expired. The plaintiff’s bad faith claim was therefore determined to be barred by the statute of limitations and dismissed by the court, with prejudice. A key takeaway for the defense is not to assume that the statute of limitations has been successfully tolled by a plaintiff merely because a praecipe for a writ of summons or complaint has been filed prior to the expiration of the statute. A filed complaint or writ is only part of the equation. The defense should carefully review the docket and filings to confirm that the plaintiff also performed the requisite good faith effort to serve that original process. A thorough review of the docket may reveal that the plaintiff failed to make the good-faith service efforts necessary to toll the statute of limitations.

Thought Leadership

Florida Supreme Court Rules Florida Statute §627.70152 Does not Apply Retroactively

In a decision that resolves years of appellate uncertainty and confirms that insurers and insureds alike can rely on the legal framework in place when a policy is issued, the Supreme Court of Florida last week found that Florida Statute §627.70152, which involves an insured’s requirement to provide an insurer with pre-suit notice before filing a suit, cannot be applied retroactively. In Universal Property & Casualty Insurance Company v. Hughes, the Court was presented with the issue of whether the statutory pre-suit notice requirement applied retroactively and whether it would apply to a breach of contract of an insurance policy that was issued before the statute went into effect. Before the Court was an appeal from a homeowner, Ms. Hughes, who sued her insurance carrier, Universal Property & Casualty Insurance Company (Universal) for breach of contract under an insurance policy that was in effect from April 24, 2019 through April 24, 2020. During the policy period, Ms. Hughes suffered a loss and, on May 29, 2019, made a claim for water damage. The carrier investigated the loss and issued payment; Ms. Hughes disputed the payment, finding the amount insufficient for repairs. On July 1, 2021, Florida Statute §627.70152 went into effect, which required insureds to provide notice of intent to initiate litigation against the carrier prior to filing a lawsuit; if an insured filed the lawsuit without complying with §627.70152, a court must dismiss the case without prejudice. On August 4, 2021, Ms. Hughes filed her lawsuit against Universal for breach of contract. Universal moved to dismiss based on her failure to comply with §627.70152. Ms. Hughes contended the notice requirement could not be applied retroactively. The trial court disagreed and dismissed the lawsuit without prejudice, and Ms. Hughes appealed. During the appeal, the Fourth District Court of Appeal, in Cole v. Universal Property & Casualty, 363 So. 3d 1089 (Fla. 4th DCA 2023), ruled that Florida Statute §627.70152 did apply retroactively to policies issued before the effective date of §627.70152. However, the Sixth District Court agreed with Ms. Hughes and overturned the trial court’s ruling, finding the statute could not retroactively apply to policies issued prior to the statute effective date. Thereafter, the other district courts weighed in, with the Third District Court agreeing with the Fourth District Court, and the First, Second and Fifth District Courts agreeing with the Sixth District Court. In resolving the conflict amongst the district courts, the Supreme Court advised “as a general rule, ‘the statute in effect at the time an insurance contract is executed governs substantive issues arising in connection with that contract.’ Hassen v. State Farm Mut. Auto. Ins. Co., 674 So. 2d 106, 108 (Fla. 1996). The Court applied the two-step test when deciding whether a statute has retroactive application: “First, the Court must ascertain whether the Legislature intended for the statute to apply retroactively. Second, if such an intent is clearly expressed, the Court must determine whether retroactive application would violate any constitutional principles.” Menendez v. Progressive Exp. Ins. Co., 35 So. 3d 873, 877 (Fla. 2010). In analyzing the Legislature’s intent, the Court must determine whether the Legislature has manifested a clear command for retroactivity in the statutory text.  In review of the statutory text, the Court found nothing in the language of the statute to indicate that the phrase “all suits” was serving another purpose of expanding its reach to suits based on policies that both predate and postdate the enactment of the statute. Buis v. Universal Prop. & Cas. Ins. Co., 394 So. 3d 738, 741 (Fla. 2d DCA 2024). Further, the Court noted the statute has an effective date, which has long been considered to be evidence against retroactive application of a statute. The Court concluded that, on its face, no provision of §627.70152 speaks to application of the statute to insurance policies issued before the statute’s effective date and therefore, the Legislature did not clearly command retroactivity of the statute to include insurance policies issued prior to the enactment of the statute. The Court briefly reviewed Universal’s argument that the presuit notice requirement was procedural, not substantive, and therefore should be applied retroactively; however, the Court agreed with the Sixth District Court’s finding that, in its entirety, §627.70152 transformed an insured’s ability to sue an insurance company under a property insurance policy and an insurer’s obligations to respond to and pay insurance claims, thus making the requirement a substantive change. The Court thereby upheld the decision of the Sixth District and disapproved the decision of the Fourth District in Cole.