The opinion of the court was delivered by
SUMNERS, Jr., J.A.D.
In this tort action, plaintiff Guelin Ramirez appeals from a Law Division order granting summary judgment to defendants 205 Liberty, LLC (205 Liberty), Pereira Electrical Contracting, Inc. (Pereira Electric), David Pereira, and Manuel Pereira. For the reasons that follow, we reverse.
We derive the following facts from evidence submitted by the parties in support of, and in opposition to, the summary judgment motion, viewed in the light most favorable to plaintiff, the non-moving party.
Plaintiff was employed as an electrician for Pereira Electric, which is solely owned by brothers David and Manuel.
On July 18, 2009, while in the course of his employment with Pereira Electric, plaintiff had installed phone wires on the second floor at the company's office, when he proceeded to walk down the stairs to the first floor. Unbeknownst to plaintiff, the staircase was temporarily installed; the structure collapsed, causing him to fall approximately fifteen feet. As a result, plaintiff suffered serious injury.
The staircase was temporarily installed on a weekend approximately a week before the accident by Manuel and George Miller, who was not an employee of either Pereira Electric or 205 Liberty. During his deposition, David testified that Miller did not perform any work on behalf of Pereira Electric, but was working as a friend to Manuel and him. Manuel and Miller temporarily tacked the staircase in place with a few nails in the wood framing to hold it in position until sheetrock was installed. There were no signs or warnings posted to indicate the stairs should not be used. On the Monday after the temporary staircase was installed, Manuel told "whoever was in the office" that day not to use the stairs. However, Manuel admits that he did not know if plaintiff ever received the warning.
In accordance with the property's triple net lease agreement, Pereira Electric was obligated to pay all real estate taxes, property insurance, maintenance, and renovation work. Specifically, Article III of the lease details Pereira Electric's duties as lessee for alterations, improvements, and fixtures. Section 3.01 provides: "It is contemplated that Lessee shall alter, improve, remodel, and reconstruct the Leased Premises and install fixtures and equipment therein all at Lessee's sole cost and expense and in a manner reasonably acceptable to Lessor for the purpose of meeting Lessee's needs." Pereira Electric also had the right to make property improvements as set forth in Section 3.02, which states: "Lessor shall have the right from time to time during the term or any extended term of this Lease to construct in or on the Leased Premises such buildings, improvements, equipment, fixtures, or other facilities as Lessor deems necessary or convenient for Lessor's purposes."
Following the accident, plaintiff filed a workers' compensation claim against Pereira Electric, which was settled. Thereafter, he filed a personal injury action against 205 Liberty, Pereira Electric, and the Pereira brothers, alleging that he was seriously injured as a result of the dangerous condition they created by installing a temporary staircase without preventing the use thereof or posting warning signs.
At the conclusion of discovery, all defendants filed a motion for summary judgment. The Pereira brothers and Pereira Electric argued that the staircase renovation was a property improvement by Manuel, acting on behalf of Pereira Electric as a tenant. Pereira Electric maintained that as plaintiff's employer, it could not be liable in a civil action for plaintiff's work-related injuries based upon the immunities afforded by workers' compensation law. In turn, 205 Liberty contended that it could not be held liable for plaintiff's injuries as it was not involved in the renovation work; the work was being done by Pereira Electric as 205 Liberty's tenant in accordance with the lease agreement.
Plaintiff opposed the motion. As to 205 Liberty, plaintiff argued that the court should not accept Manuel's self-serving certification that he and Miller were doing the renovation work solely on behalf of Pereira Electric. Moreover, plaintiff argued under
Following oral argument, the motion court issued a bench decision granting summary judgment to all defendants. Although the parties argued the merits of applying
This appeal followed.
Before us, plaintiff contends that summary judgment should not have been granted as to 205 Liberty, as landlord, and to David and Manuel, individually, as principals of 205 Liberty, for creating a dangerous condition by installing a temporary staircase without preventing the use thereof or posting warning signs. Plaintiff argues that the motion court misapplied the summary judgment motion standard and controlling case law. Specifically, plaintiff argues that there was a genuine issue of material fact regarding whether Manuel and David were acting as landlords or tenants in doing the renovation work that caused the plaintiff's injury, which should not have been decided on a motion for summary judgment. Plaintiff asserts that the court erred in its application of
Defendants argue that the court's application of
We begin with a review of the well-established applicable legal principles. We review a ruling on a motion for summary judgment de novo, applying the same standard governing the trial court.
We review issues of law de novo and accord no deference to the trial judge's legal conclusions.
Applying these standards, we conclude that summary judgment was improvidently granted. The motion court incorrectly found that there was no genuine dispute that Manuel and Miller installed the staircase on behalf of Pereira Electric. The court also erred in concluding that, based upon the triple net lease agreement, 205 Liberty did not have any potential liability for the staircase installation.
We initially address the main issue in this case — whether the record clearly supports a finding as to what entity was performing the stairway renovation work. The trial court determined that 205 Liberty could not be held liable based upon Manuel's certification that he and Miller were acting solely on behalf of Pereira Electric. Although there is no direct proof contradicting the certification, there are sufficient facts in the record which warrant the determination of this issue by a factfinder at trial.
We begin with the understanding that either entity had the right to install the new stairway. As Section 3.01 provided, it was contemplated that lessee Pereira Electric "shall . . . improve. . . and reconstruct the Leased Premises . . . at Lessee's sole cost and expense and in a manner reasonably acceptable to Lessor for the purpose of meeting Lessee's needs." Section 3.02 stated that the lessor 205 Liberty had the "right from time to time during the term or any extended term of this Lease to construct in or on the Leased Premises such . . . improvements . . . as Lessor deems necessary or convenient for Lessor's purposes." The only proof to support defendants' position that the work was being done by Pereira Electric was Manuel's self-serving statement that, despite being a principal for both Pereira Electric and 205 Liberty, the renovation work was being performed by Pereira Electric. However, "[i]t is ordinarily improper to grant summary judgment when a party's state of mind, intent, motive or credibility is in issue."
During oral argument and prior to issuing its bench decision, the motion court noted that when the stairs were being worked on, Manuel "was working as a tenant and not as a [landlord]." Thus, the state of mind, knowledge and intent of the parties is at issue. This is not just in regard to whether the decisions made prior to the accident were formulated either by the parties as landlords or as tenants, but with regard to statements made in depositions after the accident. The fact that the Pereira brothers are the principals and sole owners of both Pereira Electric and 205 Liberty further compounds the difficulty in determining which entity was installing the staircase. In addition, whether the work was being done by Pereira Electric or 205 Liberty is furthered clouded by the absence of any invoices, financial records, or documentation indicating which entity covered the cost of the materials and compensation for the work performed. One of the business entities should have records of the renovation expenses for income tax purposes.
Since both entities had the right to improve the property, either party could have installed the new staircase. Based upon the record, the question as to which entity was performing the renovation work should have remained for a factfinder to determine at trial.
We also part company with the motion court's finding that 205 Liberty does not have any potential liability to plaintiff as a result of the triple net lease agreement. Even if Pereira Electric installed the new stairway, 205 Liberty is also potentially liable under the lease agreement. As we recognized in
Here, the lease agreement provides that any improvement by Pereira Electric must be performed "in a manner reasonably acceptable to [205 Liberty] for the purpose of meeting [Pereira Electric's] needs." Granted, 205 Liberty's obligation to make sure that the property's improvements are reasonably acceptable is not as clearly defined as the landlord's role in
Reversed and remanded for trial.