Opinion
DOCKET NO. A-0029-13T1
10-21-2014
LIEN TIMES, L.L.C., Plaintiff-Respondent, v. ANDREW RADER and SHARON RADER, his wife, Defendants-Appellants, and EQUIFIRST CORORATION; MARIO A. AGALIOTIS, DDS; FORD MOTOR CREDIT COMPANY LLC; MIDLAND FUNDING LLC; HORIZON BLUE CROSS BLUE SHIELD OF NEW JERSEY, a/k/a HORIZON HEALTHCARE SERVICES, INC.; STATE OF NEW JERSEY; UNITED STATES OF AMERICA, Defendants.
Andrew Rader and Sharon Rader, appellants pro se. Pellegrino & Feldstein, L.L.C., attorneys for respondent (Michael G. Pellegrino, on the brief).
NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION Before Judges Sabatino and Simonelli. On appeal from the Superior Court of New Jersey, Chancery Division, Morris County, Docket No. F-4296-11. Andrew Rader and Sharon Rader, appellants pro se. Pellegrino & Feldstein, L.L.C., attorneys for respondent (Michael G. Pellegrino, on the brief). PER CURIAM
Defendants Andrew and Sharon Rader appeal the trial court's July 18, 2013 order directing the Morris County Sheriff to amend the name of the successful bidder at a tax foreclosure auction held on February 21, 2013. Defendants also contest the trial court's rejection of their various claims of fraud and conspiracy in connection with the foreclosure and sheriff's sale.
As set forth in this court's prior unpublished opinion sustaining the propriety of the tax foreclosure itself, defendants were the owners of certain residential property located in Randolph Township. Lien Times, LLC v. Rader, No. A-0042-12 (App. Div. Oct. 25, 2013). Because defendants failed to pay property taxes due and owing for the premises, the Township issued a Certificate of Sale for unpaid municipal tax liens. Id., slip op. at 2. The Certificate of Sale was duly sold to plaintiff Lien Times, LLC. Ibid. Defendants objected to that transaction, and contended that plaintiff lacked standing to obtain a final judgment of foreclosure. Ibid. The trial court rejected that claim of lack of standing and entered final judgment in favor of plaintiff. Ibid. We affirmed the judgment, finding no merit in defendants' claims of lack of standing. Id., slip op. at 2-3.
While defendants' first appeal was pending, the subject property was auctioned at a sheriff's sale on February 21, 2013. The winning bid was $302,000, and that bidder deposited the specified amount of $65,000 to secure the bid. Pursuant to what is represented to be a common practice at sheriff's sales, the successful bidder had not yet formed the legal entity, "38 Bonnell Lane, LLC," that would take title to the property, so as to avoid unnecessary expense if the bid turned out to be unsuccessful.
On or about the date of the auction, defendant Andrew Rader incorporated "38 Bonnell Lane, LLC," in what the trial court recognized was an attempt to frustrate the sale of the property to the successful bidder. It is undisputed that defendants did not present the winning bid at the sheriff's sale or pay the $65,000 deposit. The circumstances were brought to the attention of the trial court, which granted an application, on notice to defendants, to reform the name of the winning bidder from "38 Bonnell Lane, LLC" to "38 Bonnell Randolph, LLC," the latter being a new entity formed by the successful bidder in March 2013 following the sheriff's sale. Defendants failed to appear at the oral argument before the trial court.
On appeal, defendants contend that the conduct of the successful bidder was fraudulent and illegal; that they had been victimized by a "money laundering scheme"; that the winning bidder had no right to place a bid under the name of an LLC that was yet to be formed; and other assorted contentions.
We affirm the trial court's decision for the reasons stated on the record at the July 18, 2013 proceeding. The remedy of reformation fashioned by the trial court in these circumstances was equitable and well within the court's authority and discretion. U.S. Bank Nat'l Ass'n v. Guillaume, 209 N.J. 449, 476 (2012) (noting our courts' powers to fashion and issue equitable remedies) (citing Brenner v. Berkowitz, 134 N.J. 488, 514 (1993)). It is clear from the sequence of events that, as the trial judge found, defendants created an LLC with the same name as that anticipated by the winning bidders in order to frustrate the sale of their residential property. Defendants' arguments of fraud, illegality, and the like are unsupported by competent evidence and are clearly without merit. R. 2:11-3(e)(1)(E).
Affirmed. I hereby certify that the foregoing is a true copy of the original on file in my office.
CLERK OF THE APPELLATE DIVISION