PHOENIX PINELANDS CORPORATION, ETC. VS. HARRY DAVIDOFF (C-000246-11, OCEAN COUNTY AND STATEWIDE)

NOT FOR PUBLICATION WITHOUT THE

APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY

APPELLATE DIVISION

DOCKET NO. A-2823-16

PHOENIX PINELANDS

CORPORATION, a New

Jersey Corporation,

APPROVED FOR PUBLICATION

Plaintiff-Respondent, April 29, 2021

APPELLATE DIVISION

v.

HARRY DAVIDOFF, also known

as Frederic Vail, GIDEON

CRANMER, JAMES NALE,

Administrator of the Estate of

Gideon Cranmer, JAMES BODINE

and CORNELIA C. BODINE, his

wife, JOB CORLIS and ELIZA

CORLIS, his wife, JAMES

BODINE, CORNELIA BODINE,

JOHN HOLMES and EMMOR R.

WILLS, Administrator of the

Estate of JAMES BODINE,

CORNELIA COLLINS HOLMES,

ANNIE HOLMES BODINE,

JOSEPH PREDMORE, ADELE

PREDMORE, MARGUERITE

NEWTON, PREDMORE COX,

CHARLES ROY COX, ELLIE

BODINE COX, ELLA M.

CLAYTON, EDGAR LESLIE

BODINE, ALMA BODINE

BAKER, ALMA BODINE

BAKER ESTATE IN TRUST

f/b/o Four Children of

CHARLOTTE FIELDER

WADE, ARTHUR BAKER,

CHARLOTTE FIELDER

WADE, BENJAMIN WADE,

ELLIE BODINE, JOSEPH

RODGERS NEWTON, ISABEL

KINSELL, JESSUP GARRON,

LEON V. GARRON, EDWARD

C. JESSUP, MARGUERITE

NEWTON, SAMUEL NEWTON,

HELEN NEWTON, NANCY

JOURDAN, DONALD MUSSER,

NICHOLAS NEWTON, ASHTON

BODINE, HATTIE E. SURRAN,

FLORENCE NEWTON McCALL,

RACHEL NEWTON, THEODORE

L. CHRISTOPHER, CORNELIA

BODINE, HAROLD BODINE,

JOHN R. BRINKERHOFF, ISAIAH

ADAMS and MARY M. ADAMS,

his wife, WILLIAM A. SHEPARD,

NATHAN HALL, WILLIAM A.

SHEPARD and CAROLINE M.

SHEPARD, his wife, HENRY

SHAW, CENTRAL TRUST and

TITLE COMPANY by George H.

Deller and H.M. Shaw, President,

MEYER BEYER and MATHILDA

BEYER, BERMAN HERRMAN

and LEON KOLMER, SOFIE

HERRMAN, LOUISA KOLMER,

GEORGE ORLOV, VERA ORLOV,

LYDIA ORLOV, VICTOR ORLOV,

MARTHA ORLOV, JENNIE

ORLOV, DAISY ORLOV,

RAYMOND ORLOV a/k/a

RAYMOND LOVE, ELIZABETH

ORLOV, MARIE ORLOV, SAM

GAINES, ISAIAH ADAMS,

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2

MEYER BEYER, ISADORE

MILKENSTEIN and ROSA

MILKENSTEIN, WOLF

HERSKOWITZ, SAMUEL SHELL,

LOUISA SCHELL, SAMUEL N.

SCHELL, SAMUEL R. SCHELL,

ANNA SCHELL, WILLIAM M.

SCHELL, MARJORIE SCHELL,

WILLIAM R. SCHELL, DENISE

SCHELL, MARIANNE SCHELL

KID, EILEEN SCHELL

BENKOVIC, CHRISTOPHER

SCHELL, JACQUELINE SCHELL

GALLO, WILLIAM SCHELL,

MICHAEL SCHELL, JOSHUA

W. CORLIS, LYDIA A.

CRANMER, HARVEY CORLIS,

ELLIS CRANMER, ANNA K.

ACKER and JAMES R. ACKER,

h/w, CHARLES RUSSELL,

HELEN HORN LINDGREN,

EDITH WARREN KUEPPERS

and ROBERT KUEPPERS, her

husband, WARREN STEVENS,

BARBARA R. STEVENS, h/w,

J&M LAND COMPANY,

CHARLES DeSORTE, VIOLET

DeSORTE, his wife, BARNEGAT

RIFLE AND PISTOL CLUB, INC.,

CONTINENTAL SEARCHERS,

INC., ESTATE OF WOLF

HERSKOWITZ, WILLIAM

GIBBS, trustee, SAMUEL

HALPERN and PAULINA

HALPERN, his wife, ANNIE

SAPERSTEIN and HARRIS

SAPERSTEIN, her husband,

HYMAN ROSENSOHN,

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BERTHA BOEHM,

BURLINGTON CONCRETE CO.,

MOUNT LAUREL CONCRETE

COMPANY, their heirs, devisees

and personal representatives,

and his, their or any of their

successors in right, title and

interest, unknown claimants,

and their heirs, devisees and

personal representatives, and his,

their, or any other successors in

right, title and interest, and

FIRST AMERICAN TITLE

INSURANCE COMPANY,

Defendants,

and

STATE OF NEW JERSEY,

DEPARTMENT OF

ENVIRONMENTAL

PROTECTION,

Defendant-Appellant.

Argued January 30, 2019 - Decided April 29, 2021

Before Judges Accurso, Vernoia and Moynihan.

On appeal from the Superior Court of New Jersey,

Chancery Division, Ocean County, Docket No.

C-000246-11.

Jennifer L. Moriarty argued the cause for appellant

(Gurbir S. Grewal, Attorney General, attorney;

Melissa H. Raksa, Assistant Attorney General, of

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4

counsel; Joan M. Scatton and Jennifer L. Moriarty,

Deputy Attorneys General, on the briefs).

Michael R. O'Donnell argued the cause for respondent

(Riker Danzig Scherer Hyland & Perretti LLP,

attorneys; Michael R. O'Donnell, of counsel and on

the brief; Jorge A. Sanchez, on the brief).

The opinion of the court was delivered by

ACCURSO, J.A.D.

The State of New Jersey, Department of Environmental Protection,

appeals from a final judgment in this quia timet and ejectment action divesting

it of its title to seven parcels of land in the Preservation Area of the Pinelands

National Reserve, consisting of over 250 acres, and granting title to those

properties to an adjoining landowner, plaintiff Phoenix Pinelands Corporation,

operator of a grandfathered sand and gravel mine. Desirous of expanding its

mining operation and believing the State would be "a reluctant seller," Phoenix

made no attempt to purchase the State's lands. Instead, Phoenix mounted a

surreptitious two-decade-long quest to undermine and cloud the State's title to

the properties and establish its own competing chains of title. Phoenix spent

over $1 million hiring searchers, surveyors, genealogists and lawyers to

exploit potential defects in the State's titles that, regrettably, are not

uncommon in land titles in the Pinelands. It tracked down putative heirs and

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purchased their fractional interests, sometimes for sums approximating actual

value, by way of omnibus quitclaim deeds it drafted for the purpose.

Then, in an effort to establish a presumption of peaceable possession of

the State's lands, the statutory prerequisite to a quiet title action, N.J.S.A.

2A:62-2, Phoenix, without notice to the State, presented the tax assessor for

Little Egg Harbor Township with its newly drawn deeds and chains of title for

the State's properties and asked to be allowed to pay taxes on them. Little Egg

Harbor, also without notice to the State, and while continuing to accept the

State's PILOT (payment in lieu of taxes) fees for the properties, redrew its tax

map at Phoenix's behest, erasing the State's parcels and replacing them with a

single lot and block designation listing Phoenix as the assessed owner.

Phoenix then instituted this action in the Chancery Division seeking equitable

relief in the form of the voiding of the State's recorded deeds.

Critically, Phoenix held no interest whatsoever in any of the State's

seven properties when it began its quest to undermine the State's record title

and divest it of ownership of all seven parcels. Those actions, which Phoenix

readily owns, are anathema to the principles undergirding New Jersey's land

title laws and brand it a "title raider," one "who seeks technical flaws in title in

order to upset existing equities and clearly vested rights," Palamarg Realty Co.

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v. Rehac, 159 N.J. Super. 287, 297 (App. Div. 1978), vacated on other

grounds, 80 N.J. 446, 453 (1979), and in whose "activities" our courts "find no

social value or contribution," O & Y Old Bridge Dev. Corp. v. Cont'l

Searchers, Inc., 120 N.J. 454, 458 (1990) (citing Bron v. Weintraub, 42 N.J.

87, 95 (1964)).

Phoenix's nefarious actions permit it no relief in a court of equity. And

allowing this judgment to stand risks destabilizing marketable titles in the

Pinelands and does not "best support and maintain the integrity of the

recording system," Palamarg, 80 N.J. at 453. Phoenix also did not succeed in

establishing its title to six of the seven parcels "free from all reasonable

doubt," Shotwell v. Shotwell, 24 N.J. Eq. 378, 387 (Ch. 1874). We therefore

reverse the judgment and remand for reinstatement of title to all seven

properties in the State, imposing a constructive trust on the "title" Phoenix

acquired in one of the State's parcels to which the State is equitably entitled on

payment of the sum Phoenix expended in acquiring it, plus simple interest.

For ease of reference, we offer a guide to our opinion. We begin our

discussion with a brief description of the Pinelands and the federal and State

efforts to protect and preserve it, leading to the State's purchase of these seven

parcels. We next detail Phoenix's efforts to locate and exploit defects in the

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State's titles, Phoenix's purchase of competing interests, and its successful

effort to have the Little Egg Harbor tax map redrawn to erase the State's

parcels and consolidate the lots under one lot and block listing itself as the

assessed owner.

We then recap the history of the litigation, specifically addressing the

2013 order by which the first judge to handle the matter granted the State's

motion to dismiss Phoenix's claim for quiet title but denied the State's motion

to dismiss Phoenix's quia timet claim,1 and summarizing the second judge's

two opinions vesting title to all seven properties in Phoenix. We next outline

1

"[T]he ancient bill quia timet, to remove a cloud from a title, in which the

complainant sets forth his own title and the defendant's title, and starts out

affirmatively with the burden of proof upon him to demolish the defendant's

title or claim" is distinguished from a statutory action to quiet title

in which the object of the bill is to compel the

defendant to take the affirmative, to bring a suit at law

or in equity, to set forth any demand of any kind

which he sees fit to set forth, and to give the

complainant the benefit of a decree relieving the land

of which he holds peaceable possession from all

claims of the defendant, or establishing those claims

and rendering them definite so as to inform the

complainant precisely what their character and extent

in fact are.

[Fittichauer v. Metro. Fire Proofing Co., 70 N.J. Eq.

429, 436 (Ch. 1905).]

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the parties' arguments on appeal. Finally, we address the law and apply it to

the facts, which are now largely undisputed.

The Pinelands and the State's Purchase of the Properties

Congress established the 1,000,000-acre Pinelands National Reserve in

the National Parks and Recreation Act of 1978, Pub. L. No. 95-625, 92 Stat.

3492 (codified at 16 U.S.C. § 471i), making the Pinelands the first natural

resource to be protected under the "national reserve" program. See Gardner v.

N.J. Pinelands Comm'n, 125 N.J. 193, 198-99 (1991). "A 'wilderness' of pine-

oak forests and wild and scenic rivers, the Pinelands harbors a 'wide variety of

rare, threatened and endangered plant and animal species.'" Id. at 199 (quoting

S. Energy and Env't Comm. Statement to S. 3091 (L. 1979, c. 111) (June 28,

1979) and John McPhee, The Pine Barrens 4-5 (1981)). It also "overlies the

vast, seventeen-trillion gallon Cohansey aquifer, 'one of the largest virtually

untapped sources of pure water in the world.'" Ibid. (quoting S. Energy and

Env't Comm. Statement to S. 3091).

Declaring the protection and preservation of the Pinelands to be in the

national interest, Congress in 1978 authorized federal funding to assist New

Jersey in the development of a comprehensive plan for its management and for

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the acquisition of lands within the Pinelands National Reserve having "critical

ecological values which are in immediate danger of being adversely affected or

destroyed." 16 U.S.C. §§ 471i(b)(1) to (b)(3), (h)(1)(A). New Jersey enacted

the Pinelands Protection Act, N.J.S.A. 13:18A-1 to -58, the following year,

creating the Pinelands Commission to implement the law and assume primary

responsibility for planning in the Pinelands, N.J.S.A. 13:18A-4.

In that Act, the Legislature singled out "a certain portion of the

pinelands" it determined to be "especially vulnerable to the environmental

degradation of surface and ground waters . . . occasioned by . . . improper

development or use," which degradation "would result in a severe adverse

impact upon the entire pinelands area." N.J.S.A. 13:18A-2. It established this

"Preservation Area" within the Pinelands National Reserve with the goal of

preserving "an extensive and contiguous area of land in its natural state,

thereby ensuring the continuation of a pinelands environment which contains

the unique and significant ecological and other resources representative of the

pinelands area." N.J.S.A. 13:18A-9(c)(1); see also Uncle v. N.J. Pinelands

Comm'n, 275 N.J. Super. 82, 84 (App. Div. 1994). In addition to determining

the Preservation Area should be subject to "more stringent restrictions on the

development and use of land," the Legislature also identified it as the area

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where the State should concentrate "public acquisition of land or interests

therein." N.J.S.A. 13:18A-2.

In its 1980 Comprehensive Management Plan, the Pinelands

Commission determined the State needed to acquire roughly 97,000 acres

throughout the Pinelands in order to meet the Act's goals, complementing the

240,000 acres of conservation land the State already owned. New Jersey

Pinelands Commission, New Jersey Pinelands: Comprehensive Management

Plan 217, 251 (Nov. 1980). The State's acquisition of land in the Pinelands is

managed cooperatively between the Commission and the Department of

Environmental Protection, with the Commission planning acquisition projects

for which the Department acts as the acquisition agency. Id. at 214; see also

N.J.S.A. 13:18A-4.

Acting on the Commission's recommendation, the Department in 1986

authorized State funds, including restricted bond funds, and federal monies for

acquisition of 8,400 acres of ecologically significant land in connection with

the "East Plains — Stafford Forge" project, including lands located in the

Preservation Area within Little Egg Harbor Township. The seven parcels at

issue here were all purchased by the State as part of that effort.

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After identifying the block and lot designations of the properties it was

interested in purchasing in the project area on municipal tax maps, the

Department used the tax rolls to identify the owners of the land and sent them

letters advising of the State's interest in acquiring their land for preservation in

the Stafford Forge project. Interested landowners were invited to public

meetings for information on the project and the steps necessary for the State to

purchase qualifying properties.

The Department contracted with third-party surveyors, title companies

and appraisers to review each parcel. The Department relied on the title

companies to perform the searches and assure the State it was acquiring good

title. It further engaged a surveyor to survey each parcel, and a surveyor's

description was included in each deed.

For each parcel identified, the State obtained two independent appraisals

of fair market value "as an entire taking." Department policy in the

Preservation Area was to have the appraisals reflect pre-Pinelands-regulation

land values, thereby disregarding any reduction in value occasioned by State

and federal regulation. See New Jersey Pinelands Commission, New Jersey

Pinelands: Comprehensive Management Plan: A Progress Report on the First

Three Years of Implementation IV-2 (Dec. 1983). The two appraisals were

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then evaluated by a review appraiser in the Department of Transportation's

Division of Right of Way and Access Management, who certified to the value

on the basis of the appraisals. The Department would offer to buy the parcel at

the certified fair market value.

Through depositions of several retired State employees who were

involved in this process on behalf of the Department and the Attorney

General's office, the parties established the Department was aware the

Pinelands is a "very complicated area" in which to search title. In addition to

the properties being mostly uninhabited, all of the properties at issue here were

originally located in Burlington County prior to an 1891 adjustment in county

boundary lines, which thereafter placed the properties in Ocean County. 2

Accordingly, the proper venue for recording deeds and other land title

documents for these seven parcels changed from Burlington County to Ocean

County in that year. Reference to the municipal tax map block and lot

designations offers searchers only limited assistance because many

municipalities in the Pinelands did not have tax maps until well into the

2

L. 1891, c. 138, p. 538-40 (an act to annex the township of Little Egg

Harbor, in the county of Burlington, to the county of Ocean); see also John P.

Snyder, The Story of New Jersey's Civil Boundaries 1608 – 1968, 19, 44

(1969).

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twentieth century. Little Egg Harbor did not create its own municipal tax map

until 1959.

Further, and perhaps most significant, the original warrants from which

these properties derived contained thousands of acres which overlapped county

lines, and the older deeds often contain vague, inaccurate, or incomplete

property descriptions, often with multiple exceptions. The remoteness of the

area and its limited development — attributes which make it unique and

spurred the State and federal governments to take steps to preserve it intact for

future generations — also resulted in relatively few land transactions since the

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first severances from the Proprietors,3 and thus few opportunities to address

and resolve problems created by the descriptions in those initial surveys.4

As an example, our former colleague, Judge Wells, while sitting in

chancery, described the Isaiah Adams tract, the genesis of four of the seven

3

"New Jersey was a proprietary colony from the time of its capture from the

Dutch as part of New Amsterdam by the forces of Charles II in the early fall of

1666 until the proprietors surrendered all governmental prerogatives to the

crown in 1702." Graham v. Edison, 35 N.J. 537, 540 (1961). In 1664, before

the Dutch surrendered, "Charles II formally granted the whole territory to his

brother, James, Duke of York, with full powers of government and complete

ownership of the land." Ibid. James shortly thereafter "conveyed that portion

which is now New Jersey . . . to Lord John Berkeley and Sir George Carteret,

their heirs and assigns forever, as sole proprietors." Id. at 540-41. "Lord

Berkeley sold his interest in the granted lands in 1674, and New Jersey was

divided into the provinces of East Jersey and West Jersey, the boundary

between the two being established by the famous Quintipartite Deed of July 1,

1676." Jackman v. Bodine, 43 N.J. 453, 481 (1964) (Haneman, J. concurring).

Justice Haneman went on to explain that even after the provinces were united

in 1702, "sharp contrasts" remained. Id. at 482 (quoting McCormick, New

Jersey from Colony to State, 1609-1789 56-57 (1964)). The population of

West Jersey with its widely dispersed farms was smaller and less

heterogeneous than that of the more compactly settled towns of East Jersey.

Ibid. East Jersey was also "much more seriously divided by internal quarrels,

arising out of the peculiar complexities of the dispute between the early

townsmen, with their quit rent obligations, and the proprietors. There was no

comparable source of contention in West Jersey." Ibid. (quoting McCormick,

at 56-57).

4

For background on the proprietors' use of warrants and surveys for the

purpose of "severing" title, see Normanoch Ass'n v. Baldasanno, 40 N.J. 113,

120-22 (1963); Gen. Proprietors of E. Div. of N.J. v. Force's Executors, 72

N.J. Eq. 56, 62-66 (Ch. 1896).

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properties at issue here, as encompassing "8,525.80 acres in a 23-course

description which expressly excluded 26 surveyed exceptions returned to

others leaving a net acreage of 4,662.89" when it was surveyed by the

Proprietors of West Jersey in 1859. Hyland v. Kirkman, 204 N.J. Super. 345,

353 (Ch. Div. 1985). When Adams' successor-in-title conveyed the same land

over thirty years later in four transactions ranging in size from 1,750 to 2,797.7

acres, he ignored the exceptions. Ibid. As Judge Wells explained, whereas

workable protractions of the descriptions give some

idea as to where the parcels are in relation to one

another and to the outbound description of the return

to Isaiah Adams[,] it is impossible to locate, with any

accuracy, where the tracts are on the ground or the

exact extent to which each is affected by one or more

of the 26 exceptions. 5

[Ibid.]

During the course of discovery, the State produced its acquisition files

for each of the seven properties at issue and offered former employees

involved in the transactions for deposition. Those individuals, however, could

only offer general information about the process by which the State went about

5

Illustrating that point, Phoenix relied on an historic "mapping error" in

locating the easterly line of the Adams tract, first discovered by its surveyor in

the course of preparing Phoenix's lot consolidation subsuming the State's

properties, in attacking the State's title to Properties IV and V.

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acquiring lands for preservation in the Pinelands. They had very little memory

of the actual real estate transactions, all of which had taken place twenty-five

to thirty years before.

The State's purchases of the seven properties at issue, which it funded

through a seventy-five percent federal contribution, see 16 U.S.C. §§

471i(b)(3) and (h)(1), and twenty-five percent State funds through the New

Jersey Green Acres Bond Fund Act of 1983, L. 1983, c. 354, and holds in trust

for the benefit of the public, are summarized here. For each property, the State

produced its appraisal, title report, survey report and deed description. All the

purchases were by bargain and sale deed with covenants against grantor's acts

and title insurance was in place for all but Property I, for which Department

records reflect a title commitment but not a title policy. 6

6

Chicago Title insured the State's title to Properties II, III and IV. The

company defended the State's title to those lands in this action for two years

before electing to pay the policy limits on all three policies, thereby ending its

obligation to further defend the State. First American Title Insuranc e

Company insured the State's title to Properties V, VI and VII in 1994 when it

acquired those parcels. The company subsequently insured Phoenix's title to

all seven of the Properties. First American was a defendant in the proceedings

in the trial court. The State settled its claims against First American for the

full amount of its policies. The court bifurcated Phoenix's damage claims

against First American, and Phoenix voluntarily dismissed those claims

without prejudice after prevailing at trial. First American, which is

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Properties I, II and III all spring from an 1835 conveyance from the

Proprietors of West Jersey to Gideon Cranmer. 7 Properties IV, V, VI and VII

trace their origin to the 1859 Isaiah Adams tract.

Property I (Block 2, Lot 11)

The State purchased Property I, Block 2, Lot 11, a slightly over fifty-

five-and-a-half-acre parcel, part of a larger wooded tract, from Continental

Searchers, Inc. by deed recorded on September 26, 1989, for $75,451. 8 As

representing Phoenix pursuant to a reservation of rights, is not a party to this

appeal.

7

Although Phoenix and its experts refer to Properties I, II and III as the

"Bodine tract," and thus we sometimes do as well, the parcels are not

contiguous. These properties were all part of a 152.63-acre tract of land

conveyed to Gideon Cranmer by the Council of Proprietors of West New

Jersey in 1835. Although recorded in the West Jersey Proprietors' "Return

Book," the deed is not found in the records of any County Clerk's office.

Instead, it is a part of the West Jersey Deeds collection maintained in the State

Archives. Properties I, II and III are not contiguous because at the time the

Council made its conveyance to Cranmer, it had already granted land to

William Watson in 1808, which the conveyance to Cranmer overlapped. The

conveyance to Cranmer was made subject to the lands previously conveyed to

Watson. That seventy-three-acre overlap, sometimes referred to as the Watson

exception, dissected the Cranmer tract, separating the easterly portion, which

became Properties II and III (Block 4, Lot 8 and Block 4, Lot 8A), from the

westerly portion, which eventually became Property I (Block 2, Lot 11) and

reduced the net acreage to Cranmer to 79.47 acres.

8

This purchase price was for the entire eighty-acre tract, which also included

Lot 10 conveyed by the same deed. Phoenix's surveyor contends Property I

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with Properties II and III, the State traces its title to Property I through an

unbroken line back to the West Jersey Proprietors' 1835 deed to Cranmer.

Following Cranmer's death, James Bodine acquired the Cranmer tract at

an Orphan's Court sale in 1860. Bodine and his wife, Cornelia, conveyed the

tract to Job Corlis, a local farmer, several months later. Following Corlis'

death, his heirs, who were still living in the area, conveyed the tract to

Frederick Vail in 1914.9 Vail died in 1941. He was listed as the assessed

owner when Pyramid Investment and Herbert L. Pickell acquired a series of

tax sale certificates for unpaid taxes on the property in 1965 and 1966. The

property was assessed to Pyramid and Pickell until entry of final judgment in a

tax sale foreclosure in 1978, vesting title in Elizabeth Anne Merring and

American National Bank and Trust, co-executors of Pickell's estate.

In 1979, Merring and American National conveyed the property to Betty

Simon, Trustee UDT of Richard Simon. Simon conveyed the property, along

(Block 2, Lot 11) encompasses only approximately fourteen acres. Another

deed purporting to convey the same property states it consists of slightly over

twenty-six acres, more or less. The tax bill to Phoenix puts it at slightly over

twenty-four acres. We take the acreage figure in the text from the State's 1989

purchase offer and deed, without any determination as to which figure is

accurate.

9

Vail was apparently a pseudonym used by Harry Davidoff, a New York

resident who speculated in Pinelands properties.

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with Lot 10, as well as additional lands, to Continental Searchers in 1988, the

entity from which the State obtained title in 1989.

Property II (Block 4, Lot 8)

The State purchased Property II, Block 4, Lot 8, a nearly forty-two-acre

tract, from Barnegat Rifle and Pistol Club, Inc. by deed recorded on April 9,

1990, for $68,000. As with Properties I and III, the State traces its title to

Property II in an unbroken line through Vail, Corlis and Bodine back to the

West Jersey Proprietors' 1835 conveyance to Cranmer.

Vail was listed as the assessed owner of Property II in 1963 when

Lincoln Oil Corporation acquired a tax sale certificate for unpaid taxes on the

property that it assigned to Warren W. Stevens in 1967, who subsequently

filed a complaint to foreclose the certificate. Stevens acquired title to the

property, along with four other lots in Little Egg Harbor, upon entry of final

judgment in the tax sale foreclosure in 1969. Property II was conveyed three

more times before the State acquired it from the Barnegat Rifle and Pistol Club

in 1990.

Property III (Block 4, Lot 8A)

The State purchased Property III, Block 4, Lot 8A, an almost three-acre

parcel, from Edith Warren Kueppers and Robert Kueppers, husband and wife,

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by deed recorded on May 8, 1990, for $11,525. As with Properties I and II,

the State traces its title to Property III in an unbroken line through Vail, Corlis

and Bodine back to the West Jersey Proprietors' 1835 deed to Cranmer.

Vail conveyed Property III to Charles Russell in 1915. Russell

conveyed the property to Helen Horn Lindgren in 1935, who conveyed it to

Edith Warren Kueppers in 1955. Kueppers and her husband Robert conveyed

the property to the State in 1990.

Property IV (Block 3, Lot 18)

The State purchased Property IV, Block 3, Lot 18, an approximately

seven-and-a-half-acre parcel, from the Estate of Herbert L. Pickell by deed

recorded on March 24, 1994, for $34,745.10 As with Properties V, VI and VII,

the State traces its title to Property IV to the 1859 grant from the West Jersey

Proprietors to Isaiah Adams.

Adams conveyed the entire 4,662.89-acre tract (8,525.80 acres less

exceptions) to William Shepard in 1860, who conveyed it to Nathan H. Hall.

Hall conveyed the entire tract back to Shepard in 1893. Shepard conveyed the

entire tract to Henry Shaw, president of Central Trust & Title Co., who

10

This sum also includes the price paid for an almost sixteen-acre tract known

as Block 5, Lot 2 conveyed by the same deed.

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conveyed it several days later to his company. In September 1893, Central

Trust & Title conveyed a 6/10ths interest in the entire 4,662.89 tract to Meyer

Beyer by deed recorded in Ocean County. The following year Central Trust &

Title, without mention of its prior conveyance to Beyer, conveyed "the easterly

2,797.74 acres of a tract of 4,662.89 returned to Isaiah Adams" to Beyer in a

deed recorded in Burlington County over a year later in 1895. The State, like

Phoenix, traces its title to Properties IV, V, VI and VII to the Meyer Beyer

deed, which notably contains no metes and bounds description.

Meyer and Mathilda Beyer conveyed a fifty-acre tract, described by

metes and bounds with reference to the Adams tract, to Sam and Paulina

Halpern by deed recorded in Ocean County on June 18, 1894. This

conveyance was one of several the Beyers made of lots, each one thirty chains

wide, running down the easterly line of the Beyer tract. The parties refer to

these several lots as "the corridor lots" from their appearance on a map.

Two months after acquiring the property from the Beyers, the Halperns

conveyed it to Annie and Harris Saperstein. The Sapersteins conveyed the

property to Hyman Rosensohn in 1896 by deed recorded in Ocean County.

Rosensohn subsequently conveyed twenty-six acres to Bertha Boehm in 1897

by deed with a metes and bounds description, recorded in Burlington County

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that same year. That deed was recorded in Ocean County in November 1970.

Boehm's interest in Property IV, which was described in a 1976 tax sale

complaint as "being 7.71 acres, more or less, known as Lot 18, Block 3, as

shown on Little Egg Harbor Tax Map, Sheet #2," was foreclosed by way of a

1978 tax sale judgment in favor of Elizabeth Anne Merring and American

National Bank and Trust, co-executors of the Estate of Herbert L. Pickell. The

State acquired the property from Pickell's estate in 1994.

The surveyor who appeared for the State at trial, Barry Jones, testified

the State's survey and description from the 1994 deed from Pickell contained

"an error in the beginning call coordinate values." Although the deed recites

that it begins "at the northerly corner of Lot 18, Block 3," the coordinates did

not match the call. Jones testified that plotting Lot 18 "in accordance with the

deed for Lot 19, as the two parcels abut each other, and then go abut the

county line," made clear the coordinates for the beginning call were incorrect.

Allowing the call to control the point of beginning made "the bearings and

distances match going around and up the county boundary line with . . . this

survey by the same surveyor [of] the adjoining lot" 19. Making the adjustment

and overlaying the Little Egg Harbor tax map on an aerial photograph of the

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area, using three roads to "get it in the right place on the face of the earth,"

made clear it coincided with the location of Block 3, Lot 18 on the tax map.

Property V (Block 3, Lot 19)

Property V, Block 3, Lot 19, consists of less than one-half acre. It is

located directly across Cervetto Road to the west of Block 4, Lot 13 (Property

VII). It is one of the three tracts the State purchased by deed from Continental

Searchers and the Estate of Wolf Herskowitz, recorded on July 8, 1994, for

$95,388. As with Properties IV, VI and VII, the State traces its title to

Property V through Meyer Beyer to the 1859 Adams grant.

The State's title expert, Joseph Grabas, asserted that Property V was

created as a result of an error in the Little Egg Harbor tax map, which placed

the easterly line of Block 3, Lot 19 west of its actual location, thereby creating

a small triangular lot on the west side of Cervetto Road. Grabas claimed

Property V is actually part of the 150-acre tract that includes Block 4, Lot 13

(Property VII). Phoenix's title expert at trial, Erwin Apell, agreed.11

11

Apell issued a report in this case agreeing that Property V "was intended to

represent the western edge of the Milkenstein tract (Block 4, Lot 13) [Property

VII]." He asserted that because "[t]he Milkenstein tract devolved as an entire

tract[,] . . . the owner of the Milkenstein tract would own both Block 4, Lot 13

[Property VII] and Block 3, Lot 19 [Property V]."

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24

Meyer and Mathilda Beyer conveyed a 150-acre tract (50 chains x 30

chains), described by metes and bounds coinciding with the boundaries of

Block 4, Lot 13 (Property V) and Block 3, Lot 19 (Property VII) to Isadore

Milkenstein by way of deed recorded in Burlington County in 1894 and in

Ocean County in 1971. Milkenstein conveyed the same tract to Wolf

Herskowitz two months later by deed recorded in Burlington County in 1900

and in Ocean County in 1971 on the same date as the Beyer deed.

Little Egg Harbor records show Meyer Beyer as the assessed owner of

Property V and Property VII until 1969, likely the result of the Milkenstein

and Herskowitz deeds being originally recorded in Burlington instead of Ocean

County. In 1969, Robert Kaufman, trustee of the K&D Land Trust, obtained

two deeds from the heirs of Meyer Beyer in an apparent effort to acquire

whatever interest remained vested in Beyer as a result of the 1893 deed

transferring 6/10ths of the entire 4,662.89 tract to him, and the assessed owner

changed to Robert Kaufman/K&D Land Trust.

In July 1983, Continental Searchers obtained a final Chancery Division

judgment by consent against the Estate of Wolf Herskowitz vesting title in

Continental Searchers of an undivided fifty percent interest in Property V

(Block 3, Lot 19) and Property VII (Block 4, Lot 13), which was recorded in

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Ocean County. In 1993, Continental Searchers and the Estate of Wolf

Herskowitz obtained a quitclaim deed from Robert Kaufman, individually and

as trustee of K&D Land Trust, conveying their interests in the same lands

described in the 1894 Milkenstein to Herskowitz deed, "known and

designated" on the Little Egg Harbor tax map as "Lot 19 in Block 3 [Property

V] and Lots 11 [Property VI] and 13 [Property VII] in Block 4." In 1994, the

State took title to Property V by way of deed from Continental Searchers and

the Estate of Herskowitz.

Property VI (Block 4, Lot 11)

Property VI, Block 4, Lot 11, is part of the land the State purchased from

Continental Searchers and the Estate of Wolf Herskowitz by deed recorded

July 8, 1994, consisting of a little over sixty-six acres. As with Properties IV,

V and VII, the State traces its title to Property VI through Meyer Beyer to the

1859 Isaiah Adams grant. Property VI, however, does not appear to have been

a part of the lands conveyed from Milkenstein to Herskowitz in 1894,

notwithstanding the specific reference to Block 4, Lot 11 in the 1993 quitclaim

deed from Kaufman and K&D Land Trust to Continental Searchers and the

Estate of Herskowitz and its explicit conveyance to the State by Continental

Searchers and the Herskowitz Estate in 1994. The State defended its title to

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Property VI on the basis that Continental Searchers was the assessed owner,

and a reasonable search at the time the State purchased the parcel would not

have revealed Phoenix's chain of title to this tract; in other words, that it was a

bona fide purchaser for value without notice of Phoenix's chain of title.

Property VII (Block 4, Lot 13)

Property VII, Block 4, Lot 13, also part of the land the State purchased

from Continental Searchers and the Estate of Wolf Herskowitz by deed

recorded July 8, 1994, consists of almost fifty-three acres. As with Properties

IV, V and VI, the State traces its title to Property VII through Meyer Beyer to

the 1859 Adams grant. It is the same chain of title the State asserts to Property

V (Block 3, Lot 19).

Phoenix's Efforts to Locate and Exploit Defects in the State's Titles

Phoenix acquired the sand and gravel mine adjacent to the State's

properties out of the bankruptcy of its former owner, Herbert Pickell, in 1993.

David C. Denise, president of Phoenix, testified at deposition that when

Phoenix purchased the mine, the former owner, Pinelands Materials &

Supplies, Inc., formerly known as Mt. Holly Concrete, was mining land to

which it lacked clear title. In the mid to late 1990s, Phoenix began efforts "to

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27

clear up the titles to . . . surrounding properties" and acquire an additional one

or two thousand acres to expand the mine.

Denise approached General Land, a subsidiary of First American, the

title insurer for three of the State's properties, about insuring the titles Phoenix

hoped to acquire in order to expand its sand mine. Denise testified at

deposition the only way General Land would consider writing the title

insurance was if "they would have their fellow Gene, Mr. Sharkey, do the

searching." Denise claimed Gene Sharkey, a searcher of many years'

experience, was paid by both General Land and Phoenix to search the entire

Isaiah Adams tract including its "26 or something exceptions and . . . multiple

chains of title through wild deeds and tax foreclosures." Denise explained that

the Adams tract was the "subject of a very large case that the State prosecuted,

Hyland v. Kirkman," and that the principal part of Sharkey's work, which took

"years and years," was directed to "trying to establish the paramount chains of

various parcels that the Adams tract was either divided into or the exceptions

to."

To that end, Phoenix employed Sharkey, as well as other title searchers

and surveyors in a two-decade long quest to research the title to "[a]ll 8,000

acres" of the Isaiah Adams tract as well as the tract the West Jersey Proprietors

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conveyed to Gideon Cranmer in an effort Denise characterized as one to

ascertain "[p]aramount title for adjacent lands." Asked at deposition as to

whether anyone considered contacting the record owners of the properties

Phoenix was interested in acquiring, those owners currently in title, Denise

claimed Sharkey wasn't interested in the current record owners. According to

Denise, Mr. Sharkey believed "that it was his job to cut through all that as he

believed everybody was directed by Hyland v. Kirkman and get to the

paramount owner and acquire title through the paramount."

Accordingly, instead of starting with the record owners and searching

backward for sixty years, as is customary, see Palamarg, 80 N.J. at 460,

Phoenix's searchers began their searches with the original grants to Gideon

Cranmer and Isaiah Adams from the West Jersey Proprietors and attempted to

trace the titles forward. Thus, in its quest to acquire lands adjacent to its mine,

Phoenix ignored the current record owners of those properties, especially the

State of New Jersey, which it surmised would be "a reluctant seller."12

12

Phoenix's surmise was likely correct. The State's lands in the Preservation

Area are subject to restrictions on use and alienability. See N.J.S.A. 13:8A-

13(b); N.J.S.A. 13:8A-48; N.J.S.A. 13:8C-35(a). In addition, the agreement

providing the State with the federal grant money used to purchase these

properties, included in the State's appendix, requires approval by the

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When Phoenix's searchers established what they deemed was "the

paramount title" to any parcel Phoenix was interested in acquiring, Phoenix

would turn the information over to a self-trained genealogist, Jordan

Auslander,13 who performed a search for descendants of the former record

owner in an attempt to identify any living descendants from whom Phoenix

could acquire the property. Counsel for Phoenix would then contact those

individuals and offer to buy their interests. With the exception of families

already involved in prior title disputes over lands in the Pinelands, none of the

individuals he contacted was aware they possessed any putative interest in the

lands at issue.

Once counsel for Phoenix contacted the identified heirs and negotiated

the purchase of their interests, he drafted quitclaim deeds in favor of Denise.

These deeds contained both the Little Egg Harbor tax map reference to the lot

and block Phoenix was purporting to purchase as well as a description of the

property copied from the original grants from the Proprietors or old deeds that

Department of the Interior for any changes in use or management of properties

acquired with the funds, including any changes in ownership.

13

Counsel for Phoenix advised the trial court in 2015 that its genealogist was

under investigation in New York relating to his procurement, in connection

with this case, "of death certificates from the New York City Board of Health

by representing that he was a relative of the deceased, when he was not."

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could be traced thereto, "together with all of the right, title and interest of the

grantor herein in and to any lands situate in the Counties of Ocean or

Burlington to which the grantor may have an interest or claim by virtue of

being one of the next of kin and heirs at law" to the ancestor in Phoenix's

"paramount title." So, for example, the nine deeds Phoenix's counsel prepared

to permit Denise to acquire what Phoenix asserted was "paramount title" to

Properties I (Block 2, Lot 11), II (Block 4, Lot 8) and III (Block 4, Lot 8A)

contained both a block and lot designation referencing the Little Egg Harbor

tax map (although not to the same lot and block as Properties I, II and III)14

and a description beginning "at a pine tree marked with four blazes and four

crosses standing south eighty-five degrees west twenty chains and eighty-five

links from a stone in the west side of the road on the top of the first hill going

from the Joshua Warren place to Tuckerton."

Phoenix's genealogist initially performed only a strict descendance

search for potential heirs. Phoenix did not ask its genealogist to search the

14

The tax map reference in the deeds to Denise from the Bodine heirs is to

Block 3, Lot 15 and Block 4, Lot 10 in Little Egg Harbor and to "part of Block

115, Lot 26" in Bass River. Phoenix contends each deed also conveys

Properties I, II and III as a result of the representation that the deed conveys

the same lands as described in the 1861 deed from Corlis to Bodine and any

lands the grantor owns in Ocean County by virtue of being one of Bodine's

"heirs-at-law."

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probate records of any of the descendants he identified until after it instituted

this action. Phoenix also admits its genealogist initially misidentified the

descendants of Samuel Schell, a former record owner in Phoenix's chain of

title to Property VII (Block 4, Lot 13), causing it to obtain quitclaim deeds

from individuals having no interest in that parcel. Thus, Phoenix necessarily

concedes it induced the tax assessor to list Denise as the assessed owner of

Property VII (Block 4, Lot 13) and filed suit to quiet title to that parcel without

any colorable claim of ownership.

Phoenix continued its efforts to acquire quitclaim deeds from

descendants of record owners its searchers deemed held "paramount title" to

the State's seven Properties well after it instituted this suit, supplying

additional deeds from purported heirs up until the time of trial. As Denise

explained his and Sharkey's strategy, "[t]he paramount chain ruled. [Sharkey]

was first to cross the post in New Jersey. You had the paramount chain and

you were the first to file, you own the property."

Phoenix claims title to the seven Properties at issue by way of the

following deeds to Denise, which Denise subsequently transferred to Phoenix

by way of warranty deed and largely consolidated with its sand and gravel

mine.

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Property I (Block 2, Lot 11); Property II (Block 4, Lot 8); and Property

III (Block 4, Lot 8A)

Phoenix claims to have obtained title to Properties I through III in 1999

and 2000 for $23,500 through a series of nine quitclaim deeds, representing

66.67 percent of the outstanding interests, from purported heirs or legatees of

James Bodine, who died in 1874.15 Whereas the State traces its title to these

three properties to a deed from Bodine and his wife to a local farmer, Job

Corlis, in 1860, Phoenix relies on a deed purporting to transfer the same

property for the same price from Corlis and his wife, Eliza, back to Bodine

some six months later. That Corlis to Bodine deed, however, was not recorded

until 1875, a year after Bodine's death some fourteen years later, when it was

recorded in Burlington County.

Bodine died without a will. The detailed inventory of his insolvent

estate filed by his administrators does not list the property from Corlis as an

asset of the estate, even though the deed had been recorded only months

before, presumably by those same administrators. Besides a room-by-room

accounting of Bodine's 10 room house, as well as his barns and outbuildings,

15

Denise paid Ellie Eichbaum's widower $7,500 for her interest and her

brother, Benjamin Cox, $5,000 for his. He paid the remaining Bodine heirs

between $1,000 and $2,000 each for their interests.

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businesses, partnerships and interests in boats, the inventory included

seventeen other parcels of lands and was later amended to add two additional

parcels. The property is also not included in the subsequent inventory of

Bodine's wife's estate and was never conveyed by any of his immediate heirs.

Moreover, there are no further conveyances of that property for nearly

one hundred years until 1972, when C. Roy Cox, a purported heir, conveyed

the property to his children Benjamin S. Cox and Ellie Eichbaum. The

property was never assessed to Bodine or any of his heirs after the deed to

Corlis. Instead, the State's title expert asserted the Little Egg Harbor tax

records from 1895, the earliest available, were consistent with the State's chain

of title to Properties I, II and III.

The Corlis to Bodine deed does not appear within the State's chain of

title, and there is no dispute that it was not in the State's possession when it

negotiated the purchase of Properties I, II and III from the record owners. In

the State's file produced in discovery, however, is a letter from Ellie Eichbaum

to Jerry Stout, one of the individuals responsible for acquiring Pinelands

properties for preservation on behalf of the State. The letter is dated

December 6, 1988, several months before the State purchased Property I, and

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34

references the "Stafford Forge WMA Project, Block 3, Lot 15, Little Egg

Harbor Township."

In the letter, Eichbaum referred to Stout's "letter of November 29 and

your recent telephone call." She expressed an interest in selling Block 3, Lot

15, not in issue in this case, "which we have paid taxes on all these years since

1974, to the state."16 Eichbaum also, however, enclosed other correspondence

referencing a title search (not included with the correspondence) she had

obtained "which proved to that (sic) we, as heirs to James Bodine, would have

a legitimate claim to about 100 acres of property in the above area." Eichbaum

wrote to Stout that "[i]f this will help you in your legal acquisition of this

property for the state we will be glad to cooperate."

The attached correspondence, dated almost fifteen years earlier, between

Eichbaum and her former lawyer and Eichbaum and the former township

attorney for Little Egg Harbor, referred to a title search that showed "James

Bodine was the last holder of a deed" to about one hundred acres scattered

across several lots in blocks 2, 3, 4 and 7 and specifically referenced her

16

Eichbaum, the assessed owner of Block 3, Lot 15, was presumably

responding to a letter from the State expressing its interest in acquiring Lot 15

for preservation as part of the Stafford Forge project, which parcel the State

did not ultimately acquire for reasons unexplained in the record.

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35

claims to Block 2, Lot 11 (Property I); Block 4, Lot 8 (Property II); and Block

4, Lot 8A (Property III). Eichbaum did not assert any claim to those properties

in her letter to Stout. Instead, she noted she and her family had abandoned that

quest when their lawyer "just would not move further" in pressing their claim

with the Township in 1974.

When deposed, Stout, then retired, testified he only vaguely recalled the

letter and could not recall what, if anything, he did in response. Asked what

he would have done, Stout testified he thought "we would have worked with

the title company for them to do additional research to ensure that we were

buying the land . . . from the correct owner." Asked whether he recalled

having the title company do further research, Stout could only say he vaguely

remembered the issue and could not "recall what happened."

Property IV (Block 3, Lot 18) and Property V (Block 3, Lot 19)

Phoenix filed this action claiming to have obtained title to Properties IV

and V, Block 3, Lots 18 and 19, as part of a larger purchase of land in Little

Egg Harbor in Ocean County and Bass River in Burlington County from

Robert Kaufman, both individually and as trustee of K&D Land Trust.

Kaufman traced his title to Lots 18 and 19 to a tax foreclosure in Burlington

County. Phoenix recorded quitclaim deeds ostensibly vesting title in Denise to

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Properties IV and V, conveyed the properties to Phoenix, consolidated

Properties IV and V with Phoenix's sand mine, induced the Little Egg Harbor

tax assessor to erase the State's parcels on the Township's tax map and sued to

void the State's title to Properties IV and V, all on the basis of that chain of

title through Kaufman.

After the State's title expert issued his report in discovery, however,

opining that Kaufman could not have acquired title to property in Little Egg

Harbor by foreclosing tax sale certificates issued by Bass River, Phoenix

claimed a different basis for its ownership of those properties. Relying on the

mapping error discovered in 2003 by its surveyor, John Schweppenheiser,

Phoenix next claimed it acquired Lots 18 and 19 from the heirs of George

Kudra, who took title in trust in 1974 by deed from Burlington Company

Investment Corporation. Because the mapping error is significant, we address

it here.

As already noted, the deed into Meyer Beyer conveying the easterly

2,798 acres of the original Isaiah Adams tract lacked any metes and bounds

description. As Judge Wells noted in Hyland, when Henry Shaw, president of

Central Trust & Title, carved up the Adams tract into four separate parcels and

sold them, including the one to Beyer, he ignored all twenty-six exceptions,

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making it "impossible to locate, with any accuracy, where the tracts are on the

ground." 204 N.J. Super. at 353. Adding to the problem, Judge Wells

observed, was that "while the record title to [the other three parcels] remained

essentially stable subject to tax liens and the exceptions, Meyer Beyer's

grantees multiplied like rabbits creating a title nightmare." Id. at 353-54.

Besides creating the "corridor lots" along the eastern boundary of his

tract, Meyer Beyer divided what remained to the west of those lots into two

large parcels, conveying the northern 1,200 acres to Adolf Guttman and the

southern 1,000 acres to Anna B. Fischer. In the course of surveying the

outbound boundaries of Phoenix's consolidated Lot 9.01 subsuming the State's

parcels, Schweppenheiser concluded the easterly line of Adams was located

further east than historically believed and as reflected on the Little Egg Harbor

tax map.

Using the work of three previous surveyors of different parts of the

Adams tract and the Watson exception thereto, and after engaging in a "certain

amount of engineering," Schweppenheiser located what he believed to be the

common easterly line of the Fischer and Guttman tracts, determining it was

collinear with the western boundary of the corridor lots and parallel to the

eastern line of Adams. By establishing the western boundary of the corridor

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38

lots with reference to the eleventh course of Adams, Schweppenheiser claimed

he was able to conclude the easterly line of the Guttman and Fischer tracts was

thirty chains (1,980 feet) west of the easterly line of Adams, thereby placing

that line east of where it was understood to lie historically.

That mapping error is significant for the parties' competing claims of

title to Property IV (Block 3, Lot 18) and, to a lesser extent, Property V (Block

3, Lot 19).17 The State traces its title to Property IV through a tax foreclosure

judgment in favor of Pickell's estate through Bertha Boehm and ultimately to

Meyer and Mathilda Beyer's conveyance of a "corridor lot" to Sam and Paulina

Halpern. Schweppenheiser contended that Lot 18, Block 3 was not in the

Meyer Beyer corridor but instead was located within the Fischer tract. 18

Although continuing to rely on the tax foreclosure judgment in its chain of title

to Property IV, the State concedes it does not trace its title to Fischer.

17

It is less significant for Property V (Block 3, Lot 19), notwithstanding the

mapping error affects it as well, as both experts agreed that Property V is

properly understood to be a part of Property VII (Block 4, Lot 13).

18

If generally accepted, this alleged mapping error could have ramifications

for other land titles in the area, as it places more of the Fischer tract in Little

Egg Harbor and Ocean County, instead of in Bass River and Burlington

County than previously understood.

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The State argued, however, that Phoenix could not establish its title to

Properties IV or V based on the mapping error, even though it traces its title to

those parcels to Fischer. Phoenix's title expert, Apell, traced Phoenix's title to

Properties IV and V from Fischer to Phoenix through George Kudra and

Kupire Corporation.19 Phoenix now contends it acquired Lots 18 and 19 from

the heirs of George Kudra. It claims it acquired Kudra's interest through a

2005 settlement agreement between Denise and Phoenix on one side and

Kupire, Kudra and Kudra's wife and six children on the other, resolving a quiet

title action involving property other than Properties IV and V, and quitclaim

deeds from two of the five surviving Kudra children executed in July 2016 on

the eve of trial, which it took after becoming concerned the settlement

agreement and its deed from Kupire were not sufficient to transfer Properties

IV and V to Phoenix.

19

As noted, Apell initially claimed Phoenix's title to Properties IV and V

arose out of a tax foreclosure conducted in Bass River. Just prior to his

deposition in 2014, over two-and-a-half years after Phoenix filed its complaint

in this action, Apell produced a hand-written chain of title tracing Phoenix's

title to those parcels through Kudra. The State subsequently moved in limine

to exclude at trial documents purporting to support the Kudra chain because

Apell had not identified it as supporting Phoenix's claim of title to Properties

IV and V in either of his two previously served expert reports. The court

denied the motion and instead permitted the State limited discovery as to the

basis of the claim.

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At trial, the State's title expert, Grabas, opined that Phoenix could not

establish title to Lots 18 and 19 through Kudra. He asserted Phoenix's

inability to produce the trust instrument through which Kudra took title "as a

trustee according to a deed of trust given on even date herewith" in the 1974

deed from Burlington Company Investment Corporation created "a hole" in

Phoenix's title that Phoenix could not fill by quitclaim deeds from Kudra's

children.

Phoenix's expert agreed that Phoenix's inability to locate the trust

instrument referenced in the deed meant there was "a hole" in Phoenix's title to

Lots 18 and 19 created by Kudra having taken title in 1974 "as a trustee." He

also agreed Kudra could not delegate his fiduciary powers as trustee, nor could

they pass to Kudra's children through intestacy. Phoenix's expert also

acknowledged there was no record of anyone having gone to court to have a

successor trustee appointed. He nevertheless opined that Phoenix's title was

sound, analogizing to defunct corporations, "you then do the next best thing,

and that is to get the heirs of the last trustee or the heirs of the last board

officer to convey."

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Property VI (Block 4, Lot 11)

Phoenix claims to have obtained title to Property VI (Block 4, Lot 11)

through George Orlov, who took title to the property in 1908 pursuant to a

deed recorded in Burlington County "correspond[ing] roughly to Block 4, Lot

11" on the tax map of Little Egg Harbor, before it was altered at Phoenix's

request. The Orlov deed, however, purports to transfer approximately one

hundred acres in the Township of Bass River. The deed does not mention land

in Little Egg Harbor and does not appear in the Ocean County land records,

being recorded only in Burlington County. Further, neither Orlov nor any of

his heirs appear as assessed owners of Property VI in the Ocean County tax

records going back to 1895, those records being consistent with the State's

chain of title out of Continental Searchers. The State's title expert opined

Phoenix's chain of title was unsupported in the Ocean County land records

prior to 1994 when the State acquired its deed from the record owners.

In a supplemental report, Phoenix's title expert stated that "[u]pon

further research," the 1894 deed from Beyer to Kolmer and Herrman, from

which Orlov's title allegedly derived, was recorded on July 6, 1971 in Ocean

County. Apell, noting that Little Egg Harbor became part of Ocean County

eighty years prior in 1891, asserted that fact

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together with the fact that the Adams tract traces to

deeds recorded in Burlington County, . . . further

demonstrates that one must search titles in both

Burlington and Ocean Counties back to the Board of

Proprietors in order to conduct a reasonable search in

connection with the properties at issue in this matter.

Phoenix tasked its genealogist with developing a "family tree" for

George Orlov, which the genealogist deemed complete through Orlov's seven

children and "reasonably believed to be complete" through Orlov's ten

grandchildren. The genealogist identified twelve living heirs of George Orlov.

Counsel for Phoenix arranged for Denise to take quitclaim deeds from ten of

them in 2000 and 2001.20 Phoenix received the last of the deeds it took from

Orlov's living heirs in 2012, after filing this suit. Phoenix represents in its

brief it paid the Orlov heirs $65,943 for 97.5 percent of the Orlov interests in

Property VI.

Property VII (Block 4, Lot 13)

Phoenix and the State both trace their title to Property VII, Block 4, Lot

13, to the same 1894 deed from Isadore Milkenstein to Wolf Herskowitz

20

Phoenix initially offered the Orlov heirs $18,000 for the approximately

eighty acres it believed they owned. In a letter from a representative of the

family to counsel for Phoenix, the family rejected that offer. Writing that they

did "not want to sound ungrateful, for if it were not for your client, we would

never have even found out about the Orlove [sic] property," they stated they

would not sell for less than $1,000 an acre.

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conveying a 150-acre rectangular tract, part of which lies in Bass River in

Burlington County and part in Block 4, Lot 13 of Little Egg Harbor. The deed

was initially recorded in Burlington County in 1900. It was not recorded in

Ocean County until 1971. Phoenix claims its title to Block 4, Lot 13 derives

from a deed Herskowitz gave to Samuel Schell in 1908. Although that deed

states no fewer than four times that Herskowitz is conveying only ten acres to

Schell, the description in the deed is the same one as in the deed into

Herskowitz, which conveyed all 150 acres.

Based on the work of its genealogist, Phoenix initially obtained

quitclaim deeds from two individuals eventually determined not to be heirs of

the Samuel Schell of the 1908 deed. Phoenix thereafter obtained quitclaim

deeds after the litigation was filed from two individuals it contends are the

correct Schell heirs at a total cost of $20,000 for their 75.73 percent interest.21

Although Gene Sharkey, who performed Phoenix's title searches and

who died before trial, had opined that Schell received only ten acres from

Herskowitz, and that the State had title to the remaining 140 acres, the expert

21

Although these deeds purport to convey "the same premises conveyed by

Wolf Herskowitz to Samuel Schell by Deed . . . recorded on February 28,

1910," the quitclaim deeds differ significantly from the 1910 Schell deed by

omitting the statement repeated four times in that deed that it only conveyed

ten acres.

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who testified for Phoenix at trial, Erwin Apell, opined that the references to

conveying only ten acres had "very little significance" because "it doesn't

indicate where the ten acres is." Apell testified "under the rules of

construction . . . if there are two types of descriptions, one being a metes and

bounds and the other being an approximate acreage, that the metes and bounds

would control."

The State's title expert opined the language of the deed from Herskowitz

to Schell conveying "a tract of ten acres" coupled with the description in the

deed which begins by referring to "[a]ll ten acres of the 150 acres of land,

situated, lying and being in the Township of Bass River, in the County of

Burlington" make clear Herskowitz conveyed ten acres to Schell in Bass River,

not 150 acres in Little Egg Harbor. The State's expert opined Herskowitz's

ten-acre conveyance to Schell is corroborated by the deed Herskowitz gave to

his brother-in-law, Abraham Perlman, two years later conveying the same

described 150 acres as security for a loan, but explicitly "excepting ten acres

of said parcel or tract of land heretofore sold and conveyed by the parties of

the first part to Sam Schelies." The same exception is included when Perlman

conveyed the property back to Herskowitz the following year. Based on an

examination of all four deeds, the State's expert opined that Phoenix possessed

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no title to Block 4, Lot 13, and, at best, has an interest in an undescribed ten-

acre tract in Bass River.

Phoenix's Efforts to Establish Peaceable Possession of the State's Properties

Neither Denise, Phoenix, nor any of the individuals from whom they

obtained quitclaim deeds was ever in possession of any of the seven State

Properties at issue here. In an attempt to establish the peaceable possession

necessary for a quiet title action, see N.J.S.A. 2A:62-2, counsel for Phoenix

surreptitiously, without any notice whatsoever to the State, approached the tax

assessor for Little Egg Harbor with its purported "paramount" chains of title to

the State's properties, asking that Denise be listed as the owner. Because we

find the request from counsel so extraordinary, we reprint the letter in full.

Martin J. Conroy, Esq.

c/o Phoenix Companies

777 Alexander Road

Princeton, New Jersey 08540

Telephone 908-468-xxxx

Facsimile 609-734-xxxx

April 10, 2001

Mr. Joseph Sorrentino

Tax Assessor

Township of Little Egg Harbor

7 Gifford Road

Little Egg Harbor, NJ 08087

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RE: Block 4, Lot 11

Block 2, Lot 11

Block 3, Lots 11 and 12

Block 4, Lots 8 and 8A

Block 7, Lot 6

Dear Mr. Sorrentino:

Enclosed are various recorded Deeds pursuant to

which Mr. David Denise has acquired the interests of

most of the heirs of Gorge Orlov in property that

includes Block 4, Lot 11 [Property VI] on the Little

Egg Tax Map. Also enclosed is the 1908 Deed from

Herrman and Kolmer to George Orlov that follows an

unbroken chain of title from the original Isaiah Adams

severance from the Board of Proprietors. Our title

searchers have advised that this land was never

conveyed by George Orlov and that record title

remained in George Orlov. Enclosed is a copy of our

searcher's report.

We recognize that the State of New Jersey

Department of Environmental Protection claims title

to this property by virtue of a Deed from Continental

Searchers, Inc. (believed to be affiliated with J&M

Land) and the Estate of Wolf Herskovitz. That Deed

purports to convey Block 4, Lot 11 [Property VI],

Block 4, Lot 13 [Property VII], and Block 3, Lot 19

[Property V] on the Little Egg Tax Map. We have

plotted the description in the 1894 Milkenstein to

Herskovitz Deed. This Deed would be the basis of

any title the State may have. It describes by metes and

bounds Block 4, Lot 13 [Property VII] and Block 3,

Lot 19 [Property V]. Block 4, Lot 11 [Property VI] is

not within the description. Enclosed is our title

searcher's plotting of the Milkenstein/Herskovitz

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Deed. The State's ownership claim is inferior to that

of Mr. Denise.

Enclosed is a copy of our title searcher's report

on the above matter. Based on this, we request that

Mr. Denise be listed as the owner and be assessed for

the taxes on Block 4, Lot 11 [Property VI].

You may also recall that last year Mr. Denise

obtained title from the heirs of James Bodine. We

have recently done additional plotting and title work

in connection with Mr. Denise's holdings. It now

appears that Mr. Bodine, at the time of his death,

owned of record not only the triangular shaped piece

described in these Deeds (GG240, corresponding to

Block 4, Lot 10 and Block 3, Lot 15), but also the

property separately described and known as GG286

containing a net of approximately 79 acres. The lots

included within that description are Block 2, Lot 11

[Property I], Block 3, Lots 11, 12, and 14, Block 4,

Lots 8 and 8A [Properties II and III], and Block 7, Lot

6. Enclosed is the paramount title report. To make

sure of our conclusions, we examined the title claims

of the DEP with respect to these properties. Our

searcher again concluded that these were inferior

chains of title. We have enclosed these reports with

respect to Lots 8 and 8A; similar reports were

produced for the smaller lots.

Based on this, we request that Mr. Denise be

listed as the owner and assessed for taxes on Block 2,

Lot 11 [Property I], Block 3, Lots 11, and 12, Block 4,

Lots 8 and 8A [Properties II and III], and Block 7, Lot

6 on the Little Egg Harbor Tax Map.

Should you have any questions or need any

further information, please do not hesitate to call.

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Very truly yours,

/s/

Martin J. Conroy

MJC:cad

Enc.

cc: Mr. David D. Denise (w/o enc.)

That letter was not copied to the State. The only person copied was

Denise. Pursuant to Phoenix's request, first in 2001 and again in 2005, in

another letter not copied to the State, the Little Egg Harbor tax assessor

changed the assessed owner of each of the State's seven Properties to Denise

on the Township's assessment list and removed the legend "exempt – NJDEP"

from each of the State's Properties on the Little Egg Harbor tax map based on

Phoenix's claim that the State's title to those Properties was "inferior" to that

Denise had recently acquired by way of quitclaim deeds from distant heirs of

former record title owners.22

22

Phoenix did not seek to have itself listed as the assessed owner of Property

VII (Block 4, Lot 13) until 2005, after its 2003 lot consolidation. Although the

testimony on this point is not perfectly clear, it appears as if the assessor added

Denise as an owner of that parcel instead of removing the State, based on

Conroy's assertion that "[a]lthough a solid legal argument exists that the Deed

from Herskowitz to Schell conveyed legal title to the entire 150-acre tract

described in the metes and bounds, the issue is not entirely free from doubt

because of the inconsistent reference to 10 acres contained in the Deed."

Based on Conroy's assertion "that the Schell deed must be given some effect

and that Mr. Denise has an ownership interest in at least a proportion of Block

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After Denise conveyed the quitclaim interests he had acquired in the

State's Properties to Phoenix by warranty deed, Phoenix executed the

penultimate step in its scheme to annex the State's lands. In a deed from

Phoenix to Phoenix, Phoenix consolidated its purported title to five of the

State's seven Properties with its sand and gravel mine and applied to the tax

assessor for a new block and lot designation encompassing 675 acres,

including 130 acres belonging to the State.23 In 2005, Little Egg Harbor issued

a revised tax map erasing the State's parcels and consolidating five of the

seven with Phoenix's sand mine into new Block 3, Lot 9.01, assessed to

Phoenix.

The State deposed the surveyor, John Schweppenheiser, who prepared

the boundary survey for the consolidated parcel relying on information

supplied by Phoenix. Although undertaking no title research himself,

4, Lot 13 [Property VII]," and Conroy's request that Denise accordingly "be

assessed as the owner of Block 4, Lot 13," the assessor permitted Denise to

pay taxes on the entire parcel.

23

Phoenix's 2003 lot consolidation did not include Properties I (Block 2, Lot

11) or VII (Block 4, Lot 13). The consolidation deeds also do not reference

Property V, although Phoenix's pleadings aver that both Properties IV (Block

3, Lot 18) and V (Block 3, Lot 19) are part of consolidated Block 3, Lot 9.01.

The parties agree that Phoenix's consolidated Lot 9.01 includes 130 acres of

land titled in the State.

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Schweppenheiser testified "[t]here was not a chain of title that we were aware

of that would validate [the State's] properties, so we kind of surveyed the

boundary around them." Schweppenheiser acknowledged he saw the tax map

listing the properties as owned by the Department of Environmental Protection

but claimed he was not concerned because Phoenix had advised him it was

"buying all those properties."

The State also deposed the Little Egg Harbor tax assessor, who testified

he changed the township's tax records without any idea of whether the title

information was accurate. He simply accepted the representation of Phoenix's

counsel. Phoenix now admits, as it must, that it approached the tax assessor to

change the assessed ownership of Properties IV (Block 3, Lot 18), V (Block 3,

Lot 19) and VII (Block 4, Lot 13) without any color of title at all, having based

its claim of ownership of Block 3, Lots 18 and 19 on tax certificates issued by

Bass River and of Block 4, Lot 13 on quitclaim deeds from the wrong Schells.

The tax assessor further testified at deposition that he had been

discussing the changes with Phoenix's counsel for over a year before he finally

made them, and that the two talked about the properties "becoming taxable."

When asked why he didn't notify the State of those discussions or of the

Township relisting the State's properties under other ownership, the tax

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assessor testified that Phoenix's counsel indicated he was notifying the State.

The tax assessor also confirmed he was aware the State would not receive any

notice of the changes from the township because of its "tax-exempt owner

status."

At his own deposition, counsel for Phoenix testified he never notified

the State of the changes he sought to the Little Egg Harbor tax map on behalf

of Denise and Phoenix. Denise at his deposition likewise testified he never

made any attempt to contact the State about his interest in the State's

properties. Asked why, he testified, "I don't know." It takes no imagination to

guess the reason why Denise, Phoenix and their counsel chose not to advise

the State that Denise and Phoenix had the State's properties erased from Little

Egg Harbor's tax map. It wasn't enough to establish competing chains of title

and work the changes to the tax map; to quiet the title Phoenix also needed to

demonstrate that it or Denise had paid the taxes on the State's parcels for five

years. See N.J.S.A. 2A:62-2.

The State only learned of the changes Phoenix had worked to the tax

rolls and map of Little Egg Harbor when a resident of Warren Grove wrote to

the Department's Green Acres Program in mid-2008 about "the newly created

Lot 9.01 within tax map Block 3 of the Little Egg Harbor tax map." The

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resident explained that "the Cedar Bridge Branch of the East Branch of the

Wading [a.k.a. Oswego] River. . . . a locator reference for several properties

belonging to the late Job and Eliza Corliss [sic]," was being "enlarged to create

a huge artificial lake." 24 He wrote that his "further investigations into the

impact [of] this channel alteration . . . as it applies to [his] property or title

rights suggest the existence of title conflicts with the newly created Lot 9.01

within Block 3 of the Little Egg Harbor tax map."

Specifically, the resident wrote:

It appears as though one of those title conflicts

is 2 lots having the NJDEP as its owner. My

investigations of the public record suggest that these

lands situated within the newly created Block 3, Lot

9.01 were known as Block 4, Lots 8 and 8.01

[Properties II and III] on the previous [Little Egg

Harbor] tax maps. Examination of aerial photographs

circa 1960 indicated the location of the aqua stream

channel, which is suitable for graphical plotting of

various parcel locations that makes me believe that the

Phoenix Pinelands Corporation has entered into these

lands for purposes of obtaining title rights by adverse

possession. Further investigation suggests that these

lands were acquired in Fee Simple Absolute by the

NJDEP under the criteria of the Pinelands Green

24

Denise testified at deposition that Phoenix had substantially expanded this

waterway, which he named "Lake Wilber," by dredge mining sand. Denise

testified he acquired interests in the State's Properties because it makes it

"much easier to expand our Lake Wilber, it's adjacent." When asked why it

was easier, Denise replied, "Because it's a dredging operation, dredge keeps

digging. . . . [m]ineral's defined and it's adjacent, so it's desirable."

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Acres Acquisition Program within the National

Pinelands Reserve. In addition, further searching of

the public record does not disclose any conveyance

from the Department of Environmental Protection to

the Phoenix Pinelands Corporation.

....

Another of my concerns is what other

titleholders land may be forgotten about because of

their title rights have been abandoned in the public

record by this tax lot consolidation. One of those

titleholders may be me. I may be a victim of this

recent recording of this "breaking of the record"

boundary description. Is this an attempt to hide real

property interest by breaking the chain of title record?

Could this result in the lot consolidator acquiring land

titles by the Doctrine of Adverse Possession? Thus,

he avoids the problems of the unwilling seller and

related compensation.

The resident enclosed copies of both the old and new tax maps and expressed

the hope "that this open and host[ile] act will not necessitate the filing of an

action of Ejectment with the Superior Court of New Jersey to [quiet] the

adverse possession by the Phoenix Pinelands Corporation and restore historical

title interest to those lands being possessed."

Following an investigation into the allegations of the letter, the State

wrote to the individual responsible for maintaining the tax map in Little Egg

Harbor, copying ten individuals, including the mayor of Little Egg Harbor,

Phoenix, its surveyor, the administrator of the Green Acres program, and the

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Attorney General's Office, about the errors in the tax maps resulting from the

township having "consolidated lots" so as "to eliminate lots previously

indicated as State-owned" based on a survey and deed description "in a

'Corrective Deed of Consolidation' recorded in Ocean County . . . from

Phoenix Pinelands Corporation to itself."

Specifically, the State noted Little Egg Harbor had consolidated the

following State lands into Block 3, Lot 9.01:

Former Block 4, Lot 8 [Property II] (41.682 acres

acquired by the State by deed from the Barnegat Rifle

and Pistol Club, Inc. on March 27, 1990 recorded in

DB 4826, PG 768);

Former Block 4, Lot 8.01 or 8A [Property III] (2.955

acres acquired by the State by deed from Edith Warren

Kueppers and Robert Kueppers, Husband and Wife on

April 23, 1990 recorded in DB 4832, PG 931);

Former Block 3, Lot 18 [Property IV] (6.630 acres

acquired by the State by deed from Estate of Herbert

L. Pickell et als on January 14, 1994 recorded in DB

5147, PG 456);

Former Block 3, Lot 19 [Property V] (0.0439 acre)

and Block 4, Lot 11 [Property VI] (65.829 acres, both

lots acquired by the State by deed from Continental

Searchers et als on July 1, 1984 recorded in DB 5178,

PG 776); and

Block 4, two separate parts of Lot 14 (both portions

combined contain an estimated 25 acres although the

new tax map suggests only 7.17 acres – the entire lot

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was 317.57 acres and is now 311.40 acres on the tax

map – the entire lot 14 was acquired by the State by

deed from David Friedman et als on January 2, 1990

recorded in DB 4809, PG 343).

The writer noted he had plotted the description contained in the

consolidated Phoenix deed and "confirmed that it creates a substantial deed

overlap and creates a cloud on title of more than 100 acres of State-owned

lands." Requesting "that you put the State-owned lots back on the tax map,"

the State noted it had continuously made PILOT payments since acquiring the

Properties, that there was "no valid reason for the lots to have been

consolidated," and that it would "have hoped that the Township" would have

consulted the Department "before taking such action." The State also noted it

would be notifying its title insurers of the claim by Phoenix. 25 Phoenix's

counsel responded, disputing "that the State of New Jersey has title to any of

the properties," and asking that no changes be made to the Little Egg Harbor

25

The State represents it spent the next two years "corresponding" with its

title insurers, one of which, First American, had insured Phoenix's competing

titles, while the companies researched the State's titles. When Phoenix

instituted this action in 2011, Chicago Title Insurance Company, insurer of

three of the State's titles, initially represented the State alongside the Attorney

General, but eventually elected to pay the policies, citing its in-house counsel's

conflict of interest.

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tax map until Phoenix has had the opportunity to present its title documents for

review. This litigation followed.

The Litigation

Phoenix filed a two-count complaint for quiet title and quia timet in the

Chancery Division.26 The State answered and filed a counterclaim against

Phoenix for quiet title. After initial expert reports were exchanged but before

the conclusion of discovery, the State moved for summary judgment

dismissing Phoenix's complaint based on Phoenix's secretive and inequitable

conduct in clouding the State's title. Phoenix cross-moved for partial summary

judgment declaring it the owner of Property VI (Block 4, Lot 11). Judge

Buczynski granted the State's motion, in part, and denied Phoenix's cross-

motion.

Judge Buczynski began his decision by noting that neither the

Legislature nor "the chancellors who have ruled in the past could have quite

contemplated the evolution of a case" like this one. He noted that "[q]uiet title

26

Although Phoenix named over 100 defendants in its complaint, the State

was the only defendant to answer, other than First American. Phoenix

voluntarily dismissed certain defendants, and final judgment by default was

entered against all defendants failing to appear, after trial.

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actions are intended to clear title when there's a cloud on title for the person in

possession." They are not intended "to create title out of whole cloth or

shortcut rigorous requirements of the law in making determinations as to

actual ownership."

The judge rejected Phoenix's contention it had established the requisite

peaceable possession to permit it to quiet title against the State,

notwithstanding its deeds and proof of tax payments. See N.J.S.A. 2A:62-2.

He found Phoenix could not establish actual possession of the State's lands by

its limited activity of cutting fire lanes or erecting signs on the property. He

also rejected Phoenix's claim that it was entitled to a presumption of peaceable

possession by its payment of the real estate taxes on the parcels for five years.

Noting the "extensive research" Phoenix undertook to acquire its competing

titles, Judge Buczynski added that Phoenix "caused the Little Egg Harbor

Township tax assessor to change the [tax map]. They went on and did certain

activity on the property." The judge found Phoenix's acts did not demonstrate

"peaceable possession of the property" but instead acts "adverse to somebody

who is in peaceable possession of the property."

Although finding the State was entitled to a presumption of peaceable

possession of its Properties, Judge Buczynski nevertheless determined the

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State could not maintain a quiet title action against Phoenix, because Phoenix's

action, including its quia timet claim, which the judge determined could go

forward, was already pending when the State asserted its counterclaim. See

N.J.S.A. 2A:62-1 (permitting any person in peaceable possession of lands

whose title is denied or disputed to maintain an action in the superior court to

settle the title "when no action is pending to enforce or test the validity of such

title"). The judge accordingly dismissed the State's counterclaim to quiet title,

notwithstanding Phoenix had not moved for such relief. Although concluding

that neither party could pursue a quiet title action, Judge Buczynski found both

could pursue their quia timet claims and could amend their pleadings to add a

statutory claim for ejectment, N.J.S.A. 2A:35-1, which would be adjudicated

in the General Equity action. See Perlstein v. Pearce, 12 N.J. 198, 201 (1953)

(holding suit in chancery to quiet title by one not in possession should not have

been dismissed but retained to determine ejectment claim); Boardwalk Props.,

Inc. v. BPHC Acquisition, Inc., 253 N.J. Super. 515, 526 (App. Div. 1991)

(noting "[t]he jurisdiction of the Chancery Division to adjudicate all

controversies brought before it and render both legal and equitable remedies ").

Judge Buczynski denied Phoenix's motion for partial summary judgment

on Property VI. The judge found he could not make a determination as to title

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based on the information provided on the motion, but would require expert

testimony, concluding "to the extent . . . plaintiff is arguing . . . that they have

paramount title to any" property, that "remained a question of fact" for

ultimate determination.

Finally, Judge Buczynski "recognize[d] a very valid argument raised by

the [State]" in response to Phoenix's quia timet claim, which could also be

raised in defense of ejectment, "that, in fact, [Phoenix] may have been heir

hunting." Recounting the efforts Phoenix undertook to first research the title

to Property VI, finding a 1908 deed into George Orlov, ascertaining and then

locating his living heirs, and eventually acquiring "nine different deeds," Judge

Buczynski explained

[t]he reason why the court puts those details on the

record is because it is important to make the record

clear to the extent to which the plaintiff went in

attempting to obtain title essentially out from under

the claim of the State of New Jersey who had claimed

title for several years prior to [Denise and Phoenix]

acquiring these deeds.

The judge also acknowledged Phoenix's argument that its "actions in acquiring

the deeds [was] not heir hunting," and "that their heir hunting is nonetheless

not prohibited anyway" because "if someone doesn’t own title to a specific

piece of property at all, [someone else] can still attempt to obtain clear title to

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that particular property." Judge Buczynski determined he would address those

arguments in the context of further proceedings.

Following Judge Buczynski's retirement, a different judge heard the

parties' cross-motions for summary judgment at the conclusion of discovery.

Phoenix first argued the State could not be considered a bona fide purchaser

for value because of its awareness of certain deeds through which Phoenix

traced its title as a result of the State's involvement in prior quiet title actions

in the Pinelands and was, at the very least, under a duty to make inquiry as to

Eichbaum's claim before purchasing the three parcels making up the Bodine

tract. Phoenix further argued that as the State could not trace its title to any of

the seven Properties to the Council of Proprietors, and Phoenix could, it was

entitled to summary judgment on its ejectment claim.

The State both opposed Phoenix's motion and argued its own entitlement

to summary judgment. As to Phoenix's motion, the State argued Phoenix had

failed to prove its title free from all reasonable doubt and thus was not entitled

to eject the State from its lands. The State pointed out specific errors in

Phoenix's genealogical research. It also noted Phoenix had not advised its

genealogist it was seeking to acquire title based on his research, resulting in

the genealogist undertaking only a straight descendancy search, ignoring wills

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and probate records through which title may have been directed. The State

argued it was thus reasonable to suspect that Phoenix had not acquired the

interests of all persons through which it claimed title. The State further argued

there were material facts in dispute, and that the court needed to hear from the

parties' title experts as they held different opinions as to what constituted a

reasonable title search and what it would have disclosed of deeds in Phoenix's

chain of title to Property VI when the State purchased it.

As to its own motion, the State argued it was entitled to summary

judgment dismissing Phoenix's claims because the facts of Phoenix's "heir

hunting are irrefutable and the law is clear." The State contended "public

policy favors maintaining the integrity and stability of the recording system,"

and Phoenix's actions undermine that system. The State claimed it acted

reasonably in identifying the record owners of the seven parcels and relying on

its title searchers in acquiring their interests. The State argued it could not

reasonably anticipate being subjected — thirty years later — to the

"unconscionable efforts of a third-party interloper whose interest is not in

protecting the interests, if any, the [State] may have legitimately missed but

rather in furthering its own pecuniary gain." Pointing to the many years and

vast amount of money Phoenix spent surreptitiously "searching for defects to

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exploit," all the while aware of the State's record ownership and without notice

to the State of those efforts or of the changes Phoenix worked to the municipal

tax map to erase the State's preserved parcels and annex these environmentally

sensitive lands to Phoenix's sand mine, the State argued Phoenix's actions were

unconscionable and "destabilizing, as they leave record owners vulnerable to

unpredictable attacks on their title."

The new judge dismissed the State's heir hunting claims out of hand,

characterizing them as a "contention that [the State] is entitled to a specific or

some kind of special status for public policy reasons." The judge found "to

apply such a rule would permit a presumption in favor of the State, . . . prior to

determination of title," which is "not supported by law." Indeed, the court

found "the Constitution provides protections against that very thing,"

referencing "the due process and taking clauses." 27

27

While it is true "[t]he New Jersey Constitution provides protections against

governmental takings of private property without just compensation,

coextensive with the Takings Clause of the Fifth Amendment of the United

States Constitution," Klumpp v. Borough of Avalon, 202 N.J. 390, 405 (2010),

the State compensated the sellers from whom it purchased these Properties

based on appraisals reflecting pre-Pinelands regulation land values. As the

State has not engaged in either a physical or regulatory taking here, see ibid.,

and whatever "title" Phoenix can prove it acquired in the State's lands are

impressed with a constructive trust, there has been no constitutional taking of

these Properties. Takings doctrine simply has no applicability to this matter.

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The judge dismissed the State's "attempts to impute Phoenix's motives as

somehow sinister for seeking only pecuniary gain." Although noting the

"slightly different context," the judge quoted the Supreme Court's opinion in

Simon v. Rando, a tax sale foreclosure case, where the Court stated it was "'not

eager to impose a set of morals on the marketplace. Ordinarily, we are content

to let experienced commercial parties fend for themselves . . . .' In pursuing

their self-interests to maximize their profits, the parties make possible the

achievement of socially desirable objectives." 189 N.J. 339, 344 (2007)

(quoting Simon v. Cronecker, 189 N.J. 304, 330 (2007)).

Citing Bron, the judge found "[m]ore to the point[,] heir hunters are

generally defined as interlopers seeking to dispossess householders," "[a]nd

not someone with a bona fide interest in the property," as in Walter v. Sands,

191 N.J. Super. 362, 368 (App. Div. 1983). Because Phoenix was an adjoining

property owner, the judge found Phoenix had "a bona fide interest," in

becoming the owner of the State's preserved lands, and thus concluded its

conduct "cannot be characterized as exploitive," (quoting Walter, 191 N.J.

Super. at 368). The judge concluded the State's "heir hunting allegations . . .

Phoenix's argument in its brief urging the contrary is without sufficient merit

to warrant discussion in a written opinion. See R. 2:11-3(e)(1)(E).

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are without merit in this case and are not dispositive." Instead, he determined

"this matter is about who owns paramount title."

In addition to rejecting the State's heir hunting claims, the judge also

granted Phoenix summary judgment on Properties I (Block 2, Lot 11), II

(Block 4, Lot 8), III (Block 4, Lot 8A), and VI (Block 4, Lot 11), rejecting the

State's claim it was a bona fide purchaser for value without notice. As to

Properties I through III (Block 2, Lot 11 and Block 4, Lots 8 and 8A), the

judge noted there was no dispute that Bodine conveyed the property to Corlis

in 1860. The dispute was over the validity of a deed from Corlis back to

Bodine the following year, that was not recorded until after Bodine's death

fourteen years later.

The judge rejected the State's title expert's opinion that Bodine's failure

to record the deed during his life and its omission from the meticulous

inventory of his insolvent estate, which included his homestead and 18 other

properties to be sold by the appointed administrators, presumably the same

individuals who found and recorded the deed from Corlis after Bodine's death,

rendered the validity of the deed questionable. The judge found those

circumstances cast no doubt on Phoenix's recorded deed, instead agreeing with

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Phoenix that in the absence of any proof of forgery,28 the deed's

acknowledgment and recording rendered it presumptively valid. The judge

further found that the 1861 Corlis to Bodine deed recorded in Burlington

County in 1875 "would have been discoverable through a reasonable search,"

and thus that Phoenix's "chain of title through Bodine is superior."

As to Property VI (Block 4, Lot 11), the judge rejected the opinion of the

State's title expert that a reasonable search would not have revealed Phoenix's

chain of title when the State purchased that parcel in 1994. The judge instead

found that notwithstanding the 1908 Orlov deed on which Phoenix relied refers

to the property being in Bass River, Burlington County and was not recorded

in Ocean County, "the metes and bounds describes the Little Egg Harbor tract"

and "explains why the reasonable search tracing the origins title should have

included both [Burlington and Ocean] Counties, particularly in light of the

28

As to the judge's comments regarding forgery, Phoenix apparently did not

obtain the original signed deed from Corlis to Bodine from either Benjamin

Cox or any of the other Bodine descendants from whom it took quitclaim

deeds for their fractional interests, as it is not part of the record. The recorded

deed, although in long hand, is, of course, only a copy, almost certainly copied

from the original by a scrivener in the county clerk's office. See 3 Patton and

Palomar on Land Titles § 700 (Joyce Palomar ed., 3d ed. 2020). There is thus

no ability today, 140 years later, for anyone to judge whether the signatures are

genuine, and thus muster proof of forgery.

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DEP's prior experiences."29 The judge dismissed as immaterial the State's

claim that Phoenix was not in possession of deeds from all the Orlov heirs

when it instituted the action, and rejected its objection to the lack of probate

records as "mere speculation" insufficient to defeat summary judgment.

The judge declared Phoenix to be "the owner of fee simple title" to

Properties I (Block 2, Lot 11), II (Block 4, Lot 8), III (Block 4, Lot 8A), and

VI (Block 4, Lot 11), voided the State's deeds, ejected it from the premises and

denied the State's motion to stay the judgment.

We granted the State's motion for leave to appeal the stay order and

summarily reversed. We remanded the matter to the trial court to promptly

issue a stay, thereby "preserving the status quo with respect to this

environmentally sensitive Pinelands property, pending the conclusion of the

trial court litigation." Although concluding "that the underlying litigation

appear[ed] to present a significant legal issue," we nevertheless denied leave to

29

The judge was presumably referring to the Department of Environmental

Protection and the Attorney General's role in bringing Hyland v. Kirkman,

which the State instituted to "rectify a massive fraud upon the courts and land

recordation system of the State," involving land titles in the Pinelands. 157

N.J. Super. 565, 570 (Ch. Div. 1978). Judge Buczynski had previously struck

requests for admissions by Phoenix directed at Hyland, finding the State's legal

opinions as to whether "something was a wild deed" in that case irrelevant to

the matter at hand because those are "legal conclusions that are in the province

of the court."

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appeal the summary judgment, noting that "novel issues are best decided on

the basis of a complete factual record."

Following a three-day trial to determine, in the judge's words,

"paramount claims in competing chains of title," at which Phoenix's

genealogist, title expert and surveyor testified, along with the State's title

expert, surveyor and one fact witness, a Kudra heir who testified on behalf of

the State,30 the judge entered judgment for Phoenix on the remaining

properties. As to Properties IV and V (Block 3, Lots 18 and 19), the judge

rejected the State's claim that Phoenix's inability to locate the trust pursuant to

which Kudra took title from Burlington County Investment Corporation as

trustee was fatal to its claim to legal title to those parcels.

The judge accepted the testimony of Phoenix's title expert that the

"failure to locate trusts pertaining to deeds was not an uncommon issue. And

30

Ireen Kudra-Miller testified she believed her father was the George Kudra

in the 1974 deed from Burlington Company Investment Corp., based on the

office address listed in the deed. She had no information about the trust

referenced in that deed, however. Asked about the quitclaim deeds she and her

sister gave to Phoenix, she testified they initially refused Phoenix's demands in

2015 to sign those deeds because they "had no idea what it was about," or

"where the property was located, what block and lot number they were

referring to," and that it had been "over 40 years ago that these things were

done by [their] father." Kudra-Miller testified she and her sister finally agreed

to sign the deeds only after Phoenix's litigation counsel threatened to sue them,

and only after they received an indemnification agreement from Phoenix.

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that under those circumstances, it was common, in order to obtain title, that

one would generally obtain deeds from the trustee's heirs, which is what

Phoenix did." The judge pronounced himself

satisfied that as a trustee, Kudra's heirs were

beneficiaries of title and it had passed to them. That

is, it was appropriate for Phoenix to obtain title from

the heirs of Kudra as a trustee to the property under

the circumstances as testified to by [plaintiff's title

expert] Apell, and the [c]ourt is in agreement, that

would be the appropriate course, and that is consistent

with Zabriskie v. Morris & Essex R.R. Co., 33 N.J.

Eq. 22, 27 (Ch. 1880).

Phoenix having obtained quitclaim deeds from the Kudra heirs, the court ruled

Phoenix "holds legal title to Lots 18 and 19."

The judge also found that Lots 18 and 19 "do not plot within the

foundation deeds in the [State's] title." He concluded that Bertha Boehm, the

State's predecessor in title to Lot 18 "never owned Lot 18," notwithstanding

her deed, because the deed description does "not describe Lot 18." The judge

also rejected the State's contention that Lot 19 was a part of the Milkenstein

tract, as Phoenix's title expert also maintained in his initial report, instead

concluding that Lots 18 and 19 are both located further west, outside the

Meyer Beyer corridor, and were part of the Fischer tract based on the mapping

error discovered by Schweppenheiser. Because the deed to Fischer predated

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the deed to Milkenstein, the judge concluded "the subsequent conveyance . . .

to Milkenstein as to Lot 19 . . . is therefore a nullity."

The judge declared himself "satisfied that Lots 18 and 19 are in Ocean

County and were encompassed in the Kudra deed as trustee," that they were

conveyed to Phoenix as part of the Kudra settlement agreement and

consolidated into Lot 9.01. The judge concluded "[a]s a result of the

settlement and the subsequent execution of deeds by the heirs of Kudra," that

Phoenix had equitable title to Lots 18 and 19, which "is sufficient to award

judgment [in] ejectment and quia timet action, as well as legal title consistent

with Zabriskie."

As to Property VII (Block 4, Lot 13), the judge found that although

Herskowitz's "probable intent" was to convey only ten acres to Schell in the

1910 deed, as stated therein, those ten acres were not specifically described

and cannot be plotted. The judge instead found that Herskowitz's inclusion of

a description of the entire 150 acres he had acquired from Milkenstein fourteen

years before in an 1894 deed made that metes and bounds description

controlling, based on the testimony of Phoenix's title expert Apell that when

"there is a conflict between the recital and the operational portion of the deed,

the specifics of the operational section controls."

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The judge declined to consider the deed from Herskowitz to Perlman two

years later conveying the same described 150 acres "excepting ten acres of said

parcel . . . heretofore sold and conveyed . . . to Sam Schelies" as further proof

that Herskowitz had not conveyed the entire 150-acre parcel to Schell, because

it "was not an actual conveyance" but only security for a loan. Specifically,

the judge found "[t]he fact that the Perlman deed was a security interest may

have some bearing on the value of the language of the deed." The judge

observed that "had the Perlman deed actually been a conveyance for property,

it's likely that the issue would have been resolved at the time and I think more

weight could be given to the language." The judge further found the ambiguity

in the deed "should be held against Herskowitz," and "creates an obligation of

the subsequent grantees to address the conflict manifest in the deed." Having

failed to do so, the judge found "the chain of title created by the conveyance

and reconveyance of the Perlman deed is inferior to the Schell deed."

The judge thus found that Herskowitz effectively conveyed the entire

150 acres described in the metes and bounds description to Schell,

notwithstanding "his probable intent to convey only ten acres." He also found

the deed, recorded in 1910 in Burlington County, almost twenty years after

Little Egg Harbor was made part of Ocean County, "was sufficient to provide

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notice of all subsequent grantees," and that "[t]o disregard the Schell deed

would [be] to work an injustice on the system." Although Phoenix could

locate no record of any further conveyance of any part of the 150 acres from

Schell, nor the record of his death nor any will, and Phoenix's genealogist

initially identified other individuals as heirs of Schell, the judge pronounced

himself satisfied "that Phoenix sufficiently proved chain of title through the

Schell heirs."

The judge also concluded the State's chain of title as to Property VII

"lacked sufficient probable evidence." The judge was not satisfied the State

had presented "sufficient proof" that "its grantors were, in fact, descendants of

the heirs of Herskowitz." The judge noted the evidence presented by the State

"relied on surnames and the recitals in the deeds." Although conceding such

would be "sufficient in many cases, this is not sufficient in the case given over

63 years of a gap between conveyances out of Wolf Herskowitz, who was, at

best, a remote grantor." The judge concluded "[t]his failure of proof is also

sufficient to call into question [the State's] chain of title."

The judge accordingly entered final judgment in Phoenix's favor as to

Properties IV (Block 3, Lot 18), V (Block 3, Lot 19) and VII (Block 4, Lot

13), declaring Phoenix the owner of fee simple title to those parcels, voided

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the State's deeds and ejected it from the premises. The judge thereafter entered

default judgment as to those defendants in the caption who failed to appear in

the action and dismissed without prejudice Phoenix's claims against its title

insurer, thereby rendering the matter ripe for appeal. The parties entered into a

consent order staying the judgment pending a final decision by this court or the

Supreme Court. This appeal followed.

The Parties' Arguments on Appeal

On appeal, the State renews the arguments it made to the trial court that

Phoenix's campaign to undermine the State's recorded deeds to these

"ecologically rare and irreplaceable lands" by exploiting defects in its chains

of title discovered by going back to the original grants from the Council of

Proprietors and searching forward, ignoring assessed owners and decades-old

tax sale judgments and instead taking omnibus quitclaim deeds from the living

heirs of long-dead record owners, surreptitiously wiping the State off the

municipal tax map in the process, constitutes heir hunting, exceeds all bounds

of reasonable commercial practice and is void as against public policy under

well-established law. Phoenix counters that as the trial court found, the State

"advocates for a 'policy' that its public objectives relieve it of proving that it

purchased the properties from the true owners."

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The State responds by asserting the trial court accepted Phoenix's

mischaracterization of the State's argument. It claims it is not seeking "some

kind of special status for public policy reasons," as the trial court found, "but

instead asks the court to examine whether Phoenix's attempt to usurp [the

State's] title is permissible given past precedent and potential future

consequences." Phoenix counters, arguing the prohibition against heir hunting

"only applies in the context of tax foreclosures where a third-party investor

buys an interest in the property after the foreclosure is filed for nominal

consideration."

Although we agree that Phoenix's actions here do not fit neatly into the

category of heir hunting, because it did not deceive the heirs from whom it

took quitclaim deeds and paid them, in most instances, more than nominal

consideration, we have no hesitation in holding its conduct was

unconscionable and clearly violated public policy, thereby barring it from any

remedy in a court of equity. See Bron, 42 N.J. at 95.

Our Analysis

We begin our analysis by noting our agreement with Judge Buczynski's

assessment that neither the Legislature nor "the chancellors who have ruled in

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the past could have quite contemplated the evolution of a case" like this one.

Phoenix's assault on the State's title here is nothing short of extraordinary.

Fully aware of the State's properly recorded deeds and not having any interest

of its own in any of the State's seven parcels, Denise and Phoenix spent the

better part of two decades and over $1 million to undermine the State's titles

based on the theory of its searcher, Gene Sharkey, "that it was his job to cut

through" the established record titles "as he believed everybody was directed

by Hyland v. Kirkman and get to the paramount owner and acquire title

through the paramount."

After "years and years" of searching "[a]ll 8,000 acres" of the Isaiah

Adams tract including its "26 or something exceptions" as well as the still

earlier Cranmer tract, under the banner that "[t]he paramount chain ruled,"

Denise claimed Sharkey "was first to cross the post in New Jersey." As Denise

explained Sharkey's philosophy: "You had the paramount chain and you were

the first to file, you own the property."

Sharkey died before he could be deposed in this case. Neither of the title

experts who appeared for the parties did any searching of these titles. Both

merely reviewed the work Sharkey performed, undertaking only isolated

research tasks in advance of trial. Accordingly, there is nothing in the record

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detailing Sharkey's laborious efforts and no way to learn what deeds and other

muniments of title he reviewed, or rejected, in determining what he claimed to

be "the paramount chain" to each of these parcels. It is, however, obvious that

his was not the "reasonable search" contemplated by the recording act. See

Palamarg, 80 N.J. at 456 (explaining the recording statutes have been

"consistently interpreted to mean" a "subsequent purchaser will be bound only

by those instruments which can be discovered by a 'reasonable' search of the

particular chain of title"); Glorieux v. Lighthipe, 88 N.J.L. 199, 203 (E. & A.

1915) ("A purchaser may well be held bound to examine or neglect at his peril,

the record of the conveyances under which he claims, but it would impose an

intolerable burden to compel him to examine all conveyances made by every

one in his chain of title.").

Armed with what Sharkey deemed the "paramount" title for each of the

State's parcels, Denise and Phoenix deployed their self-trained genealogist to

hunt down the heirs. Only those families who had been involved in prior title

disputes in the Pinelands, the Eichbaum and Cox clan and the Kudras, had any

idea they may have inherited an interest in these lands. In negotiating the

purchase of those interests, Phoenix's lawyer testified at deposition he couldn't

recall whether he mentioned to any of the heirs that the titles to these lands

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were then in the State, which had purchased them with federal and State funds

for the purpose of preserving them intact for future generations.

Omnibus quitclaim deeds in hand, Denise and Phoenix recorded them in

derogation of the State's record title. Then in the most astonishing move, they

presented the tax assessor of Little Egg Harbor with their new deeds and

searches, without any notice to the State, and asked that the tax bills be sent to

them.

The tax assessor, without any idea of whether the deeds were valid but

knowing the properties would "becom[e] taxable," made Denise the assessed

owner of each of the State's seven Properties on the Township's assessment list

and removed the legend "exempt – NJDEP" from each of the parcels on the

Little Egg Harbor tax map. Indeed, because Denise at that time staked his title

to Properties IV and V on tax sale certificates issued by Bass River and had

taken quitclaim deeds to Property VII from the wrong heirs, he had himself

made the assessed owner of three of the State's seven Properties with no

colorable claim of title at all.

Phoenix then took its final steps to annex the State's lands, without filing

a complaint in any court and without any notice to the State whatsoever.

Telling its surveyor, Schweppenheiser, to ignore the interior borders of the

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State's parcels because it was "buying all those properties," Phoenix had him

survey the outbound boundaries of the State's seven Properties and create a

new survey map showing all but two of them as simply part of the same parcel

as Phoenix's sand mine. Consolidating the State's parcels with its own in a

deed designed for the purpose and armed with Schweppenheiser's new survey,

Phoenix applied to Little Egg Harbor for a new lot and block designation. In

2005, Little Egg Harbor revised its tax map to erase the State's separate

parcels, incorporating them into a new Block 3, Lot 9.01, assessed to Phoenix.

When the State deposed Schweppenheiser, it asked whether he would

"have needed to denote that there was a potential discrepancy of ownership

with some of those lots," had Phoenix advised him it had acquired hostile

interests in the State's parcels without the State's knowledge and was surveying

the outbound for a lot consolidation in anticipation of a quiet title action

against the State. Although posed as a hypothetical, Phoenix does not dispute

the question was an accurate reflection of the true state of affairs when it

engaged Schweppenheiser to prepare the new survey. Schweppenheiser's

answer: "The way you put it, it would sound like fraud, I probably wouldn't do

the survey under those conditions."

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There is, of course, a very good reason such a scheme "would sound like

fraud." As the State's expert surveyor, Barry Jones, testified in explaining why

he also would not have performed the survey under those conditions, "You

can't combine lands that are owned by two different entities. It has to be the

same common owner . . . to combine them."

Although long quoted, the equitable maxim that "[a] suitor in equity

must come into court with clean hands," A. Hollander & Son, Inc. v. Imperial

Fur Blending Corp., 2 N.J. 235, 246 (1949), is no quaint artifact of an earlier

time. It remains "a self-imposed ordinance that closes the doors of a court of

equity to one tainted with inequitableness or bad faith relative to the matter in

which he seeks relief." Precision Instrument Mfg. Co. v. Auto. Maint. Mach.

Co., 324 U.S. 806, 814 (1945); Borough of Princeton v. Bd. of Chosen

Freeholders of Mercer, 169 N.J. 135, 158 (2001).

"[W]hile 'equity does not demand that its suitors shall have led

blameless lives,' . . . it does require that they shall have acted fairly and

without fraud or deceit as to the controversy in issue." Precision Instrument,

324 U.S. at 814-15 (quoting Loughran v. Loughran, 292 U.S. 216, 229 (1934)).

The misconduct justifying invocation of the doctrine need not be punishable as

a crime or such as would "justify legal proceedings of any character. Any

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willful act concerning the cause of action which rightfully can be said to

transgress equitable standards of conduct is sufficient cause for the invocation

of the maxim by the chancellor," id. at 815, or an appellate court, Trautwein v.

Bozzo, 39 N.J. Super. 267, 268 (App. Div. 1956).

The maxim is based on public policy, Rasmussen v. Nielsen, 142 N.J.

Eq. 657, 661 (E. & A. 1948), and assumes greater significance when the

litigation concerns the public interest. "For if an equity court properly uses the

maxim to withhold its assistance in such a case it not only prevents a

wrongdoer from enjoying the fruits of his transgression but averts an injury to

the public." Precision Instrument, 324 U.S. at 815. Here, the paramount

public interest, even more than the protection of these ecologically sensitive

lands, the preservation of which long ago was declared a national priority, is

the stability of New Jersey's recording system.

The State argues Phoenix's "heir hunting" undermines that stability and

is against public policy. Phoenix denies it was heir hunting. It claims it was

simply "an adjacent owner of property looking to acquire more property for its

business." Phoenix further claims "[t]he prohibition against heir-hunting is not

some catch-all public policy doctrine" and "was never intended to protect 'a

competing claimant,' such as the [State], that seeks to divest the true owners of

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their title and constitutional rights." Phoenix claims it is the party upholding

the recording system by insisting that property be acquired from "the true

owners." We reject Phoenix's claims as without merit.

Chief Justice Weintraub attempted to capture the essence of public

policy, "the ultimate source of justice," in Bron. 42 N.J. at 93. Quoting an

Ohio Supreme Court opinion, Pittsburgh, Cincinnati, Chicago & St. Louis Ry. Co.

v. Kinney, 115 N.E. 505, 506 (Ohio 1916), he emphasized

[i]n substance, it may be said to be the community

common sense and common conscience, extended and

applied throughout the state to matters of public

morals, public health, public safety, public welfare,

and the like. It is that general and well-settled public

opinion relating to man's plain, palpable duty to his

fellow men, having due regard to all the circumstances

of each particular relation and situation.

Sometimes such public policy is declared by

Constitution; sometimes by statute; sometimes by

judicial decision. More often, however, it abides only

in the customs and conventions of the people — in

their clear consciousness and conviction of what is

naturally and inherently just and right between man

and man.

Critically, the Chief Justice underscored that when a party's course of conduct

is "shocking to the average man's conception of justice, such course of conduct

must be held to be obviously contrary to public policy, even though such

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policy has never been so written in the bond, whether it be Constitution,

statute, or decree of court." Ibid.

Few of our citizens, even those having read Hyland v. Kirkman, would

likely believe their neighbor, who had the time and resources to search the land

titles forward from Berkeley and Carteret, could turn them out of their home

by procuring quitclaim deeds from the far-flung descendants of someone who

held record title to the property a hundred years ago and inveigling the local

tax assessor to redraw the tax map to erase the lot they lawfully purchased on

the claim the neighbor, who wished to expand his own backyard, had acquired

the property from "the true owners." We think most citizens of this State

would aptly view such possibility as ludicrous because so shockingly "not

right." Yet that is essentially what Denise and Phoenix did here in creating

their consolidated Lot 9.01 annexing the State's land to enlarge its sand and

gravel mine.

Because there is no marketable title statute 31 in New Jersey to protect a

record owner from the exploitation of old title defects in her chain by an

31

Marketable title acts, which exist in about twenty states, operate to

invalidate latent title claims that have not been raised in a specified limitations

period, typically thirty or forty years. See, e.g., Unif. Simplification of Land

Transfers Act §§ 3-301 to 3-309 (1976), 14 U.L.A. 343, 385-92 (2005). "The

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adjacent owner such as Phoenix looking to annex its neighbor's land, the

tactics Phoenix employed here could be directed against any landowner

anywhere in the State. 32 It is worth noting the lands here involved marketable

titles deemed insurable by reputable title insurers. Although the State was

represented by one of its title insurers at the outset of the litigation, that

company eventually withdrew, discharging its obligation to defend the State's

title by paying it the face amount of the policies. Title insurance could thus

prove cold comfort to a landowner faced with an assault on its title of the type

Phoenix unleashed. Title insurers could decide the better business decision

would be to pay the policies than incur the costs of experts and lengthy

litigation. And landowners lacking the State's resources could hardly be

purpose is to permit reliance upon the record chain where it is completely

linked for the statutory period and, thus to render harmless defects which may

exist prior to its commencement." Hyland, 204 N.J. Super. at 366. By making

very old claims based on record title unenforceable, these statutes "contribute

toward elimination of some undeserving claims and reduce some of the

avoidable risks — such as stale claims resulting in windfalls — involved with

land records." Charles Szypszak, Real Estate Records, The Captive Public,

and Opportunities For The Public Good, 43 Gonz. L. Rev. 5, 24 (2007).

32

The risks, of course, are much greater in a remote area such as the Pinelands

where the lands are largely undeveloped, making it more difficult to rely on

obvious possession to thwart such attacks. See McGrath v. Norcross, 70 N.J.

Eq. 364, 371 (Ch. 1905) (noting actual possession of the land by another will

defeat the presumption of possession in the plaintiff in a statutory ejectment or

possession of lands action).

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expected to endure the costs of this sort of litigation if their insurers elect not

to defend.

The point is that the threat to the stability of the recording system posed

by Phoenix's actions is real, not imagined, and not limited to land titles in the

Pinelands. The State engaged reputable title companies to insure good title to

each of the seven parcels and had each surveyed before purchasing. All the

purchases were by bargain and sale deed with covenants against grantor's acts

and title insurance was in place for all but Property I, for which Department

records reflect a title commitment but not a title policy. The State recorded its

deeds promptly after purchase. Yet none of those things deterred Phoenix or

spared the State from having its holdings wiped off the face of the municipal

tax map and having to defend this challenge to its title based on hundred-year-

old deeds and an alleged historic mapping error.

New Jersey courts have long deplored the machinations of heir hunters

and title raiders, who seek "technical flaws in title in order to upset existing

equities and clearly vested rights." Palamarg, 159 N.J. Super. at 297. The

Supreme Court has deemed their "activities" to be of "no social value or

contribution" as they serve "only to further their own interests rather than the

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interests already on hand." O & Y, 120 N.J. at 458 (quoting Bron, 42 N.J. at

95).

The first reference to heir hunting in New Jersey was by Judge Jayne,

who described it as a "racket" in which unscrupulous agents reviewed probate

records for the purpose of "assisting" non-resident heirs in obtaining their

inheritances. Carey v. Thieme, 2 N.J. Super. 458, 464-65 (Ch. Div. 1949).

After the beneficiaries were advised of the efforts expended in the

investigation "and of their good fortune of which they would not have

otherwise learned. . . . [a]ppropriate powers of attorney were solicited to

enable the kind and gracious agent to collect" the heirs' share of the estate,

from which a stipulated fee, usually calculated on a percentage basis, would be

deducted for the services rendered. Id. at 465. Noting there was no "reported

decision in our State relative to the pursuit generally known as 'heir-hunting,'"

and careful to explain he was "not at present concerned with all patterns" of

such enterprise, "but only with the model of it exhibited" before him, Judge

Jayne declared the practice "inimical to the public policy of protecting

beneficiaries of estates from imposition and unnecessary expense." Id. at 466-

67.

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Our Supreme Court extended the concept of heir hunting beyond probate

proceedings in Bron. There, Woodbridge sold certain vacant lands for unpaid

taxes "and itself was the buyer" at the tax sale. Bron, 42 N.J. at 88. The

township then foreclosed the tax sale certificates, but unknowingly omitted the

last record owner when a searcher missed conveyances in the chain vesting

title in one Weintraub. Ibid. Twelve years later, Woodbridge sold the

property to a developer who built ten homes on the land. When one of those

homes was resold several years later, a title search revealed the failure to

foreclose Weintraub's interest. Id. at 89.

Woodbridge initiated a second tax foreclosure, N.J.S.A. 54:5-86.2, and

served notice by publication on Weintraub's unknown heirs to correct the

defect. Ibid. A third party, Hudson Trading Corporation, saw the published

notice, located Weintraub's two sisters in California, and wrote to them about

the property in a manner the Court deemed "palpably deceptive," and so

acquired their interests for $400. Id. at 90-91. Hudson then conveyed a

quarter interest to another third party, Frank Altomare, and the two redeemed

"[a]t the eleventh hour." Id. at 89.

In a subsequent quiet title action by the homeowners, consolidated with

Hudson and Altomare's suit for possession and mesne profits, the trial court

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ordered the homeowners to pay Hudson $19,555.11 to purchase the property

on which their houses stood, that being the value of the land without

improvements, plus mesne profits of $2,856.91. Ibid. We affirmed, declaring

that Hudson and Altomare having "seized upon the opportunity to make a

profit is not inherently inequitable merely because they may have known that

appellants lived on the land." Bron v. Weintraub, 79 N.J. Super. 106, 112

(App. Div. 1963). The Supreme Court reversed our opinion on public policy

grounds. Bron, 42 N.J. at 96.

Writing for the Court, Chief Justice Weintraub made clear

no one disputes the right of the holders of existing

interests to convey them to third persons if they wish.

What is challenged is the legality of the intrusion into

the scene by third persons who seek only to further

their own interests rather than the interests already on

hand.

[Id. at 95.]

Acknowledging there was no precedent precisely on point, beyond "the

established hostility toward so-called 'heir-hunting'" expressed in Carey v.

Thieme, the Court had "no doubt the common conscience condemns the

conduct of Hudson and Altomare as an undue interference with the rights of

the householders." Id. at 96.

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The Court held that Hudson and Altomare having acquired the interest of

the Weintraub heirs "under 'circumstances which render it unconscientious for

the holder of the legal title to retain and enjoy the beneficial interest, equity

impresses a constructive trust on the property thus acquired in favor of the one

who is truly and equitably entitled to the same.'" Id. at 96 (quoting 4 Pomeroy,

Equity Jurisprudence § 1053 at 119 (5th ed. 1941)). The Court accordingly

ordered the heir hunters to convey the interest to the householders upon their

payment of $400, the same sum the heir hunters paid to acquire it, with simple

interest. Id. at 95-96.

Although Bron involved tax certificates, Phoenix is incorrect that the

public policy against heir hunting is limited to that context. Bron was a quiet

title action, not a tax foreclosure. Further, as already noted, Bron extended the

"established hostility toward so-called 'heir-hunting'" discussed in Carey v.

Thieme to quiet title actions and tax sales. Bron, 42 N.J. at 95; see also

Wattles v. Plotts, 120 N.J. 444, 445-46 (1990). Moreover, the Court has since

applied the policy in a quiet title case quite similar to this one to thwart "an

attempt by an heir hunter, . . . Continental Searchers, Inc. (Continental), to

upset title to property . . . owned by . . . O & Y Old Bridge Development Corp.

(O & Y)." O & Y, 120 N.J. at 455.

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O & Y acquired the property at issue in that case, an approximately

forty-four-acre parcel in Old Bridge, in four separate conveyances as part of a

much larger 2,600-acre tract it purchased for development. In the course of

searching title on a nearby property, Continental learned of a defect in O & Y's

title, specifically, an heir omitted from a quiet title proceeding conducted over

twenty-five years before. Id. at 457. "Sensing an opportunity, it offered to

'clear up the title' for O & Y." Ibid. Although O & Y had accepted a similar

offer from Continental on an earlier occasion when Continental had uncovered

another outstanding interest in the 2,600-acre tract, this time O & Y refused to

pay. Continental located the heir, acquiring his interest via a quitclaim deed in

exchange for $300 and the promise of an additional $2,700 in the event

Continental was successful in obtaining title. Ibid.

Continental and O & Y filed cross-complaints to quiet title to the

property. Relying on Bron, the Chancery Division determined Continental

lacked any protectible interest in the property, and thus entered final judgment

declaring "Continental had no interest in the property and that O & Y's title

was good." Id. at 456-57. We affirmed, finding "no valid distinction between

Bron and [O & Y] based upon the fact that the property in question is

undeveloped land rather than residential housing." Id. at 458. We also

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rejected Continental's argument, the same one made by Phoenix and accepted

by the trial court here, distinguishing Bron on the basis that O & Y was not "a

single homeowner" as the householders in that case. Ibid.

The Supreme Court, although noting the quiet title judgment obtained by

O & Y's predecessor in title would arguably be invulnerable to Continental's

attack twenty-six years later, did not decide the case on that basis as neither we

nor the trial court had addressed the issue. Id. at 457-58. Instead, the Court

reiterated its holding in Bron that our courts "find no social value or

contribution in the 'activities' of heir hunters or title raiders who 'seek only to

further their own interests rather than the interests already on hand.'" Id. at

458 (quoting Bron, 42 N.J. at 95).

Acknowledging that O & Y's predecessor's lawyer may have erred in

omitting to foreclose all interests in the prior quiet title action twenty-six years

before, the Court repeated what it said in Bron, that "'decent men must sense

only revulsion in this traffic in the misfortune of others.'" Ibid. (quoting Bron,

42 N.J. at 95). Although affirming our decision in favor of the record-title

owner O & Y, the Court modified the judgment to impose a constructive trust

on Continental's interest, on the basis that "[t]he most Continental can claim

under the Bron principles is the return of its meager investment in exchange

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for the 'title' it holds." Id. at 459. The Court accordingly held that "[a]ssuming

that the 1958 judgment did not extinguish the interest now asserted by

Continental, O & Y is equitably entitled to that interest on payment of $300

[the sum it paid the heir] plus simple interest." Ibid.

In addition to erroneously claiming the prohibition against heir hunting

is limited to tax sale proceedings, Phoenix also claims the Bron principles are

not controlling here because it paid the heirs more than nominal consideration

for their interests and acted to acquire the properties for the purpose of

expanding its sand and gravel operation, not to extort the State into purchasing

the interests. We reject both arguments.

Although the reported heir hunter cases have often, although not always,

see Wattles,33 120 N.J. at 447-48, involved nominal consideration paid to the

33

In Wattles, the plaintiff, Gordon Wattles, instituted an action to foreclose a

tax-sale certificate on a six-acre parcel of vacant land adjacent to land his

family owned in Hunterdon County. 120 N.J. at 446. After entry of default

against "unknown owners," but before final judgment, "an heir hunter,

National Asset Recovery (National), discovered out-of-state heirs of the last

record owner, Edward Plotts." Ibid. National struck a deal with the Plotts

heirs that if they "were successful in upsetting the tax foreclosure and in

obtaining title, National could sell the property and divide the net profits with

the heirs, after reimbursing itself for its expenses." Ibid.

The trial court permitted the heirs to redeem, and we affirmed, rejecting

Wattles argument that Bron barred National's claim. Acknowledging Plotts'

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missing heirs, and the issue of nominal consideration has very great

significance in the tax sale cases, it is not the issue on which the quiet title

cases, such as Bron and O & Y, have turned. The reason for that is the public

policy concerns in tax foreclosure proceedings and quiet title matters, although

related, are distinct.

The tax sale cases actually present competing public policy

considerations. On the one hand is the need to encourage tax sale foreclosures

in order to assist municipalities in their efforts to collect delinquent real

property taxes. Varsolona v. Breen Cap. Servs. Corp., 180 N.J. 605, 618

right to redeem under the tax sale law, we "saw 'no reason why the heir of such

an owner should be barred from his or her right of redemption simply because

their right to redeem was brought to their attention by an heir hunter and they

entered into a generous agreement with the heir hunter . . . .'" Id. at 449

(quoting our opinion at 230 N.J. Super. 254, 260 (App. Div. 1989)).

The Supreme Court agreed the heirs could redeem, but imposed a

constructive trust in favor of Wattles on National's interest in accordance with

Bron. Ibid. Acknowledging that the Plotts heirs stood to gain much more than

the nominal sum paid to the Weintraub heirs in Bron, given that the property

on which Wattles held the tax sale certificate had been assessed at $162,000,

the Court determined that neither that fact nor "the intervening equities, such

as were presented by the homeowners in Bron, should make a difference." Id.

at 453. Instead, it reasoned that "[f]or all practical purposes, National [was] in

the same posture as the heir hunters in Bron. It has insinuated itself into the

scene for the sole purpose of furthering its own pecuniary interests." Ibid.

Characterizing the case as simply "present[ing] a variation on the Bron theme,"

the Court determined imposition of a constructive trust on National's interest

in favor of Wattles was the appropriate remedy. Id. at 445-46.

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(2004). On the other is the need "to protect property owners from the

devastating consequences of foreclosure." Cronecker, 189 N.J. at 315. The

tax sale law, post Bron,34 accommodates both concerns by barring third-party

investors from redeeming a tax sale certificate "at the eleventh hour" by paying

the desperate owner "nominal consideration." N.J.S.A. 54:5-89.1. Allowing

third parties to meddle in tax foreclosures in that way would discourage

investors from buying tax sale certificates with no corresponding benefit to the

landowner. See Wattles, 120 N.J. at 451.

The Court, however, has declined to permit tax sale certificate buyers to

invoke the hostility our courts have shown to "heir hunters" and

34

As Justice Pollock explained in Wattles, the Legislature amended the tax

sales law immediately after Bron to permit the owner of a single-family

residence whose title derives from a defective tax foreclosure, such as the

householders in Bron, to obtain the outstanding interest of a previously-

unknown owner and thus avoid the interference of intermeddlers of the likes of

Hudson and Altomare. N.J.S.A. 54:5-104.100 to -104.103; Wattles, 120 N.J.

at 450. A subsequent amendment to N.J.S.A. 54:5-89.1, preventing a third

party from intervening in a tax foreclosure or redeeming the certificate if that

person acquired her interest in the property after the filing of a foreclosure

complaint for a nominal consideration, was made three years later in response

to an unpublished decision of this court attempting to limit Bron to its facts.

Wattles, 120 N.J. at 450; Walter, 191 N.J. Super. at 369 (explaining same). As

the Wattles Court held, nothing in that amended "statute, however, undercuts

Bron." 120 N.J. at 452.

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"intermeddlers" by treating all third-party investors as such. 35 Cronecker, 189

N.J. at 326-28. Third-party investors in tax sale proceedings who provide real

value to property owners facing foreclosure assist "property owners in

desperate need of financial assistance" without unduly interfering with the

expected returns of those commercial investors who buy tax sale certificates.

Id. at 328.

The Court in Cronecker recognized that investors in tax sales, whether

they be the buyer of the certificate or the intervenor attempting to purchase the

property or finance its redemption, are simply "commercial competitors," who,

looking out for their own self-interests in order to maximize their profits,

happen to "make possible the achievement of socially desirable objectives."

Id. at 330. So long as these investors "comply with the dictates of the Tax Sale

Law," the Court has declared itself "loath to intervene in the self-regulating

35

Indeed the Court in Cronecker limited Wattles, "[t]o the extent [it] suggests

a violation of public policy when a third-party investor offers more than

nominal consideration for the property interest of an owner facing [tax]

foreclosure," while still holding an investor who contracts with a defendant to

purchase the property and redeem the tax certificate without prior court

approval will not be permitted to profit from the transaction, regardless of the

sum offered the owner. Cronecker, 189 N.J. at 328, 338. That clarification

does not limit the vitality of Wattles in this case, which does not involve a tax

foreclosure but instead a scheme by a stranger to the title to purchase hostile

interests in his neighbor's property in order to wrest the title from him and

annex his lands.

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forces of the marketplace, particularly when competition will result in

protecting a property owner's interest from forfeiture." Ibid. The Court in

Cronecker accordingly refused to apply the Bron principles to bar intervention

by third-party investors providing the property owner more than nominal value

as permitted by statute, specifically N.J.S.A. 54:5-89.1. Ibid.; see also Rando,

189 N.J. at 344; FWDSL & Assocs., LP v. Berezansky, 452 N.J. Super. 408,

410 (App. Div. 2017).

This case, of course, is not a tax sale proceeding, and the heirs from

whom Phoenix acquired quitclaim deeds were not desperate property owners

facing tax foreclosure. Most, like the Orlov heirs, had no idea their remote

ancestor had ever held title to one of the State's seven Properties. Although

Phoenix casts itself and the State as "competing claimants," nothing could be

further from the truth. The State was not competing with Phoenix to obtain

title to these Properties as the buyers of tax sale certificates compete with

third-party investors. The State owned these Properties; it already had title.

Like the householders in Bron and the developer in O & Y, the State

purchased these seven Properties "in the bona fide belief that title was good,"

Bron, 42 N.J. at 90, and like them was forced to defend a challenge to its title,

not by the heirs of some former record owner, but by an interloper who

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acquired the heirs' interests in the hope of attacking the record owner's title by

capitalizing on a defect in the record owner's chain. The Bron Court

condemned that conduct "as an undue interference with the rights of the

householders." Id. at 96. As Chief Justice Weintraub explained, "no one

disputes the right of the holders of existing interests to convey them to third

persons if they wish." Id. at 95. "What is challenged is the legality of the

intrusion into the scene by third persons who seek only to further their own

interests rather than the interests already on hand." Ibid.

The "interests already on hand" in this context are those of the fee owner

who purchased the land believing its title was good and that of the heirs of the

former record owner whose interest has resulted in the alleged defect in the

current record owner's chain of title. Those heirs, who often are not aware of

the property and sometimes are not even aware of the ancestor, are obviously

not similarly situated to "a property owner who has not redeemed a tax

certificate by the time a foreclosure action has commenced" and is thus likely

"vulnerable to the manipulation of overbearing speculators." Cronecker, 189

N.J. at 320; see also Wattles, 120 N.J. at 446-47.

Likewise, the record title holders are not similarly situated to the

"commercial investors," who purchase tax sale certificates in the general

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pursuit of "large profits upon small investments and who may fairly be treated

as acting at their peril." Id. at 330 (quoting Dvorkin v. Twp. of Dover, 29 N.J.

303, 324 (1959) (Jacob, J., dissenting)).

The public policy at issue in quiet title cases such as Bron and O & Y is

the avoidance of undue interference with the rights of the record title holders,

that is, the householders in Bron and the developer in O & Y, by strangers to

the title. There is no competing public policy interest of encouraging tax sales

at stake, no statute barring third persons from acquiring the interests of owners

facing foreclosure for nominal consideration, and no "self-regulating forces of

the marketplace," ibid., with which our courts are loath to interfere as exist in

tax foreclosures. Thus, that Phoenix may have paid some of the heirs more

than nominal value for their interests does not bear on the central issue of

whether it unduly interfered with the rights of the State as a record title holder.

There is no disputing that Phoenix, a stranger to the title having no

interest of its own in any of these seven Properties, sought out "technical

flaws" in the State's title "in order to upset existing equities and clearly vested

rights." Palamarg, 159 N.J. Super. at 297. Like the heir hunters in Bron

and O & Y, Phoenix sought to capitalize on alleged defects in the State's

record chain of title in order to interfere with the State's ownership for the

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purpose of furthering Phoenix's own ends, namely to acquire the land adjacent

to its sand mine, which it knew the State would not sell. Only unlike the heir

hunters in those cases, who acted opportunistically, Phoenix planned its assault

on the State's title, surreptitiously working to have itself substituted as the

assessed owner of the State's lands on the municipal tax rolls and to have the

State's holdings subsumed into its own on the tax map.

Because Phoenix researched the State's titles, ignored its recorded deeds

and surreptitiously acquired hostile interests from the heirs of long-dead record

owners for its own purpose of undermining the State's title, thereby interfering

with the State's vested rights to these seven Properties, its conduct is aptly

characterized as heir hunting or title raiding, without regard to the amounts it

paid the heirs to acquire those interests. We accordingly reject its argument

that the Bron principles are not controlling here because it paid the heirs more

than nominal consideration for their interests. Cf. Cronecker, 189 N.J. at 328

(noting that the interest acquired by a third-party investor after the filing of a

tax foreclosure complaint who fails to intervene in the action could be

impressed with a constructive trust without regard to whether he paid more

than nominal value for the interest); Wattles, 120 N.J. at 454-55 (imposing a

constructive trust on heir hunter's right to fifty percent net profits under

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contract with heirs entered into after the filing of a tax foreclosure complaint

without intervention in the cause under N.J.S.A. 54:5-89.1).

We also find it of no moment that Phoenix acquired those interests for

the purpose of expanding its sand and gravel operation instead of for

opportunistic resale to the owner as the heir hunters in Bron and O & Y. The

salient point is that Phoenix, like the heir hunters in those cases, interfered

with the rights of the record title owner for its own pecuniary interests,

ignoring "the interests already on hand." See Bron, 42 N.J. at 95. Whether

that pecuniary interest is secured by re-selling the property to the highest

bidder or sand mining is to us beside the point. That Phoenix sought to annex

the State's lands instead of selling them back to the State for a profit might

make it more aptly characterized as a title raider than an heir hunter but is

otherwise irrelevant to the inquiry. The effect on the record title holder by the

"undue interference" with its rights in either instance is the same.36

36

We also reject, as without merit, Phoenix's claim that the State seeks to

"effectively endorse a policy that divests heirs of their right to sell their own

property." As Chief Justice Weintraub made clear in Bron, "no one disputes

the right of the holders of existing interests to convey them to third persons if

they wish." 42 N.J. at 95. The issue "is the legality of the intrusion into the

scene by third persons" looking to further their own interests and not that of

the heirs or the record title owners. Ibid.; see also FWDSL & Assocs., 452

N.J. Super. at 413 n.4 (cautioning courts in tax sale matters not to be "swayed

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Likewise, we reject the trial court's finding that because Phoenix owned

property near the State's parcels it had "a bona fide interest," in becoming the

owner of the State's preserved lands, and thus its conduct "cannot be

characterized as exploitive," (quoting Walter, 191 N.J. Super. at 368). As

already noted, Phoenix's conduct in surreptitiously acquiring hostile interests

in the State's lands and convincing the tax assessor to drop the State from the

tax rolls, erase its parcels from the municipal tax map and redraw the map to

reflect Phoenix's annexation of the State's lands cannot fairly be characterized

as anything but exploitive. Further, Walter, another tax foreclosure case, is

inapposite and provides no support for Phoenix's conduct or the trial court's

findings.

In Walter, the plaintiff purchased a tax sale certificate on lot 21 in Egg

Harbor. 191 N.J. Super. at 365. Egg Harbor subsequently auctioned a

certificate for adjoining lot 22. Both lots were owned by the same person, who

had ceased paying the property taxes. The plaintiff bid at the sale for the

certificate on lot 22 but was outbid by Simon. Simon attempted to purchase

or distracted" by a litigant's "attempt to seize the moral high ground" by

professing concern "about the municipality's collection of taxes or the prope rty

owner's right to freely convey title" because "in reality, the contestants'

interests in those matters are secondary at best to what they are truly after").

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the plaintiff's certificate on lot 21, but he refused to sell. Shortly before the

plaintiff filed suit to foreclose the certificate on lot 21, Simon located, in

Switzerland, an heir of the record owner of the lots and paid him $100 for his

1.25 percent interest. Ibid.

The trial court permitted Simon to intervene but denied her the right to

redeem the plaintiff's certificate because she paid only "nominal consideration

for the

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