Schmalz Vs Jackson (Terence Wall Conduct)
Schmalz Vs Jackson (Terence Wall Conduct)
Schmalz Vs Jackson (Terence Wall Conduct)
Plaintiff Kevin Schmalz, having an address of 22 Sycamore Drive, Little Egg Harbor, New
Jersey (hereinafter “Plaintiff”), by way Complaint against Defendants Township of Jackson and
New Jersey.
2. Mayor Michael Reina (“Reina”), at times relevant herein, is a New Jersey resident
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Defendant Township in the position of Building Sub-Code Official and/or Acting Construction
9. Defendants John and Jane Does (1-10) are fictitious persons who are not
specifically named Defendants, who are unknown to Plaintiff at this time, but who may be
identified during discovery in this matter and who are responsible to Plaintiff for the claims set
forth herein, including the harassment and retaliatory actions taken against Plaintiff in response
Township in the position of Plumbing Inspector. In or about 2005, Plaintiff also became the Sub-
Code Official.
11. Plaintiff performed his duties as Plumbing Inspector and Sub-Code Official at or
12. Plaintiff was also employed in a part time position as Plumbing Inspector and Sub-
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Code Official for Plumsted Township (“Plumsted”), while at the same time he was employed in
13. Prior to taking the position with Plumsted, Plaintiff informed Defendant
Township that he had been offered the part time position with Plumsted to make sure they had
14. The Township informed Plaintiff that it did not have any issues with Plaintiff
accepting the part-time position with Plumsted as the part-time hours required by Plumsted did
16. At no time during his employment with the Township and Plumsted was there
any conflict that impacted Plaintiff’s ability to perform the required duties and responsibilities of
either position.
17. Moreover, at no time prior to Plaintiff engaging in any of the protected activity
specifically set forth herein did anyone at the Defendant Township criticize Plaintiff or claim that
Plaintiff was doing anything wrong in connection with his part time employment at Plumsted.
18. In or about 2019, the Township issued a major site approval to a Developer,
Cardinale Enterprises, to develop approximately 300 acres of vacant land into a sports and
19. The reported $500 million Adventure Crossing project (the “Project”) is located
between Interstate 195 and Six Flags Great Adventure, and was planned to consist of a 120,000
square foot sports dome, two (2) hotels, eight (8) outdoor sports fields, a 100,000 square foot
recreational building with a trampoline park, indoor go-kart racing, a venue for video game
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competitions, a 7-11 convenience store and restaurants, including a Popeyes restaurant and Taco
Bell.
20. At the beginning of the Project, Plaintiff and other Building Officials were
instructed by the Township officials, including Mayor Reina and Business Administrator Wall, to
prioritize and expedite all inspections, reviews and approvals of plans and permits for the Project.
21. The Project was a top priority for Township officials, including Mayor Reina and
22. As the Project ensued, Plaintiff and other Building Officials were harassed and
even threatened with termination of employment if they did not approve certain applications,
plan reviews and permits for the Project without question and in some instances, in clear
23. In or about February 2021, Mr. O’Connor was hired by Defendant Township to
24. Shortly thereafter, Mr. O’Connor received directives from Defendant Township
to prioritize and expedite plan reviews and the issuance of permits for the Project, which
eventually included instances when the issuance of permits was not warranted and in violation
of the UCC.
25. The Township, including Mayor Reina and Mr. Wall, regularly took orders and
directive from the Developer, including directives that were not compliant with the UCC or other
laws, and attempted to direct and coerce officials within the Building Department to act
unlawfully.
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reduce construction permit fees for the Developer on structure types that were being built at the
27. Building officials would regularly object and refuse to participate in requests
from the Developer, general contractors and Township officials that they believed to be unlawful.
28. For example, in one meeting, the Developer offered to hire its own private
inspectors to issue CO’s or TCO’s so that it no longer had to go through the Township’s Building
Department.
29. In another meeting, the Developer offered to provide the Township a “hold
harmless” letter that it explained could allow the Developer and general contractor to build
without appropriate permits or open with appropriate CO’s or TCO’s but that the Township could
hold the Developer responsible for any liability that arose from the Project.
30. As time went on, Plaintiff and other Building Officials learned that construction
had taken place with the Project without first obtaining the appropriate permits.
31. Additionally, items were being installed beyond the scope of submitted site
32. For example, construction of a dome began without first obtaining the
necessary permits, including the permits required for the underground electrical work.
33. Another example was the construction of a warehouse starting without the
34. As work progressed, Mr. O’Connor met regularly with the Township’s
35. During these meetings, the Developer and Township officials would complain
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that the Building Department was not issuing permits when they wanted them to.
36. Mr. O’Connor responded that the Building Department must follow the law and
the only reason why permits would not be issued was because they could not be issued in
37. Mr. O’Connor further repeatedly explained the permitting process as required
38. Mr. O’Connor informed Plaintiff of these meetings and that they were under
increased pressure from the Developer and Township to issue permits in violation of the UCC and
he was threatened that he, Plaintiff and others in the Building Department would be terminated
39. Plaintiff was harassed and threatened by certain Township officials concerning
his refusal to issue permits for the Project that did not comply with the UCC.
40. For example, in or about 2022, Plaintiff was discussing with Mr. Wall the fact
that the Township was hiring new employees at higher salaries than existing Township
41. During the meeting, in response to Plaintiff’s complaints, Mr. Wall stated, “guys
Department objecting and refusing to participate in unlawful conduct concerning issuing permits
43. Plaintiff responded with something along the lines of, “I guess you expect us to
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44. Mr. Wall became unhinged by Plaintiff’s response and began mischaracterizing
45. Mr. Wall further expressly threatened Plaintiff with termination and that he
would do everything in his power to take away his licenses so that he could never be employed
46. Plaintiff told Mr. Wall to stop twisting his words and confirmed that he always
47. Mr. Wall became increasingly agitated and started yelling at Plaintiff.
48. Mr. Wall eventually slammed his books and left the meeting without resolving
the salary discrepancies amongst new and existing employees within the Building Department.
49. Mr. Wall’s harassment and refusal to pay existing employees within the Building
Department at appropriate rates was in further retaliation for Plaintiff and other Building
Department employees’ complaints and refusal to participate in unlawful conduct under the UCC
50. On or about December 6, 2021, the general contractor for Taco Bell emailed
Mr. O’Connor asking what documentation was outstanding for a Certificate of Occupancy (“CO”)
51. The next day, Mr. O’Connor informed the general contractor that they needed
to resolve an issue with the fire hydrant layout and inspections, which Mr. O’Connor had been
52. Mr. O’Connor also informed the general contractor that he was still required to
address all issues, complete inspections, pay state mandated Council of Affordable Housing
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53. Mr. O’Connor also informed the general contractor would likely only receive a
Temporary Certificate of Occupancy (“TCO”) with conditions, due to issues with the parking lot
lights.
54. On or about December 20, 2021, Township officials, including Mr. Wall,
pressured the Building Department to issue Taco Bell a TCO so it could open despite its several
55. Around the same time, representatives from the Office of Regulatory Affairs
(“ORA”) visited the Building Department office and the Project site.
56. Because Mr. O’Connor was on vacation, Plaintiff was Acting Construction
57. The ORA representatives asked to review the permit files for Taco Bell and
Popeyes.
58. While the ORA representatives were in the Building Department office, the
general contractor for Taco Bell entered the Building Department office and demanded a TCO be
59. Plaintiff responded to the general contractor that a TCO could not be issued
because there was outstanding required documentation, including approvals from the Ocean
60. The general contractor became increasingly belligerent and began arguing with
Plaintiff.
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done for him to issue the TCO, the developer threatened Plaintiff that if he was not issued the
present during the confrontation and overheard the general contractor’s statements to Plaintiff.
63. After the general contractor left the office, one of the ORA representatives
confirmed they overheard the conversation and warned Plaintiff that they would hold Plaintiff
64. Specifically, the Regulatory Affairs representative warned Plaintiff, “If you issue
65. The following day, Mr. Wall confronted Plaintiff in the door of the Zoning Office,
and pressured Plaintiff to issue the TCO, asking Plaintiff “is there a way we get around this?”
66. Plaintiff responded no and explained to Mr. Wall that the general contractor did
not provide the required documentation and therefore he legally could not issue the permit.
69. For example, on or about June 7, 2021, the Popeyes’ developer asked Plaintiff
70. Plaintiff complied and inspected the Popeyes’ plumbing and approved the slab
71. On or about June 14, 2021, the Popeyes’ developer emailed Plaintiff and asked
him to move up the rough plumbing inspection that was scheduled for August 4, 2021.
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72. Plaintiff complied, and Popeyes’ rough plumbing was approved on or about July
16, 2021.
73. On or about December 28, 2021, and with issues still outstanding, Popeyes’
74. Mr. Wall emailed Mr. O’Connor, asking him to expedite the TCO.
75. While Plaintiff was on site at Popeyes, he witnessed employees present in the
76. It appeared that based upon the people inside the restaurant and cars lining up
at the drive through that the restaurant had opened without being issued a TCO.
77. Plaintiff called Mr. O’Connor and told him he had seen people in the restaurant
78. It was later determined that the premises were occupied for staff training and
the cars waiting in the drive through lane, like Plaintiff, believed they were open.
79. Mr. Wall became irate and threatened that individuals in the Building
80. Mr. Wall sent an email wanting to know who was making false accusations
against Popeyes and promised the general contractor he would get to the bottom of it.
81. Pressure continued to escalate from the Township to the Building Department
82. According to Mr. O’Connor, the Developer was pressuring the Township in
closed meetings to not delay the construction of the Project because of issues relating to permits.
83. In or about late December 2021, Mr. O’Connor called an emergency meeting
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84. In the meeting, Mr. O’Connor said that he had just come out of a meeting with
Mr. Wall and Mayor Reina and was threatened that if the Building Department did not start
approving the Developer’s permits, the entire Building Department staff would be terminated.
85. Consistent with Mr. Wall and Mayor Reina’s threats of termination, the
Township posted job openings for Plaintiff’s job, as well as the electrical, building, and fire Sub-
Code/Inspectors and a Technical Assistant to Construction Official shortly after the meeting.
86. As work progressed on the Project throughout 2022, many inspections were not
scheduled by the developers and work was performed on the Project without updates or permits.
87. The Building Department was increasingly harassed by Township officials and
88. Upon information and belief, Mr. O’Connor left his employment because of the
harassment, retaliation and other unlawful conduct directed at him in connection with the
Project.
89. Plaintiff’s health began to significantly suffer because of the harassment and
90. Plaintiff sought medical treatment for worsening anxiety due to the pressures
the Township placed on him at work, including the threatening of his termination of employment
issuance of permits.
91. As a result of the unlawful conduct and hostile work environment being
directed at him at work, Plaintiff and other Building Officials decided to retain an attorney to
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92. By letter sent to the Township on their behalf on February 18, 2022, Plaintiff’s
Counsel set forth the factual basis for Plaintiff’s claims against the Township, including by
describing the unlawful business activities being undertaken by the Township in connection with
the Project, the protected activity undertaken by Plaintiff opposing and refusing to participate in
93. Plaintiff’s Counsel further demanded that the Township stop taking any further
…At the beginning of the project, Mr. Schmalz, Mr. O’Connor and
Mr. Rudolph were put on notice by Mayor Michael Reina and
Business Administrator Terrance Wall that the project took priority
over all other projects, applications, and permits -- with the
expectation that any applications, plan reviews, and permits would
be expedited. However, Mayor Reina and Mr. Wall not only
wanted the project’s applications, plan reviews, and permits to be
expedited but that they wanted these items to be approved
without question or the building department would be disciplined.
For example, Mayor Reina and Mr. Wall stated to Mr. O’Connor
that he along with the entire building department would be
terminated or replaced if the project’s applications, plans reviews,
and permits were not approved. These threats of termination
continued as the project was progressing and issues with the
project arose…
…
The latest example of this reckless disregard of Jackson’s own
codes, rules and regulations relates to the opening of the Taco Bell
and Popeye’s Chicken restaurants. Mr. Cardinale’s office pushed
to get temporary certificates of occupancy for these restaurants.
However, Jackson’s Building was unable to issue the TCOs because
required documentation in accordance with the New Jersey UCC
regulations was not issued.
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Mayor Reina’s and Mr. Wall’s actions against Mr. Schmalz, Mr.
O’Connor, Mr. Rudolph and the rest of the building department
amount to retaliation, harassment and actions which rise to the
level of causing a hostile work environment under New Jersey
Conscientious Employee Protection Act…
95. Despite receiving the February 18, 2022 letter, the Township continued to
pressure Plaintiff and others to unlawfully issue permits, and harass and retaliate against Plaintiff
96. In or about May 2022, Mr. Wyer was appointed Acting Construction Official for
Defendant Township.
97. The Township placed Mr. Wyer in the position to increase the pressure,
harassment and retaliation of Building Township officials to issue permits for the Project,
regardless of whether they complied with the UCC and other relevant law.
98. Upon his hire, Mr. Wyer began harassing and retaliating against Plaintiff for
99. In retaliation for his complaints, and refusal to participate in what he reasonably
believed to be unlawful business activities, the Township continued to retaliate against Plaintiff,
100. On or about July 19, 2022, the Township instructed outside counsel to submit
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an Open Public Records Act (“OPRA”) request to Plumsted for Plaintiff’s payroll records for the
101. The Township had no legitimate reason or basis to believe Plaintiff had
102. The Township’s OPRA request was a fishing expedition to intimidate Plaintiff
103. All documents and/or other evidence obtained from Plumsted by the Township
104. On or about September 13, 2022, during an inspection, Plaintiff discovered that
one of the Project’s buildings was being used contrary to its permitted and approved use, without
105. Specifically, Plaintiff discovered that a building approved for maintenance use
107. Mr. Rudolph reported the violation to Mr. Wyer and Mr. Wilton, including in
writing.
108. Mr. Rudolph stated in his email to Mr. Wyer and Mr. Wilton, “as I have
mentioned to you previously,” and then listed several UCC violations occurring at the Project site.
109. Mr. Rudolph instructed that a Notice of Violation (“NOV”) be issued and stated,
110. Mr. Wyer refused to issue the NOV contrary to the Township’s legal obligations
to do so.
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111. Thereafter, Mr. Rudolph and Plaintiff were in contact with Scott Borsos, a
representative of the New Jersey Department of Community Affairs (“NJDCA”) regarding their
114. On or about September 29, 2022, Mr. Wyer approached Plaintiff in the Building
Department office and demanded that Plaintiff sign off on the maintenance building that was
115. Plaintiff indicated to Mr. Wyer that two issues prevented him from signing off,
namely a required update to delete a backflow device, and the building was in violation of the
approved use.
116. Mr. Wyer disregarded Plaintiff and repeated his directive to sign off on the CO.
117. Plaintiff told him he could not do so because of the issues that were present.
119. Plaintiff said the batting cages needed to be removed and the building needed
to be returned to its approved use in order for the Township to issue a CO.
120. Again, Mr. Wyer insisted Plaintiff sign off despite knowing of the violation.
122. The next day, Mr. Wyer confronted Plaintiff and told him that the batting cages
had been removed and that he needed for Plaintiff to sign off on the CO.
123. Plaintiff stated he would need to personally verify the batting cages were
removed.
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124. Mr. Wyer said that Plaintiff did not have to do that since Mr. Wyer had done it
already.
125. Plaintiff responded that he would need to personally see as the licensed official
on the permit.
126. Plaintiff visited the site with the Fire Subcode Official.
127. Upon returning to the office, after having verified that the building had been
returned to its approved use, Plaintiff signed off on the permit for the CO for the approved use
of a maintenance building.
128. Plaintiff sent Mr. Wyer a letter dated September 29, which reads, in relevant
part:
Once the outstanding violations are abated and verified, I will revisit
issuing a Certificate of Occupancy for the plumbing.
129. The following day, Mr. Wyer confronted Plaintiff about the letter and
complaints and specifically threatened him that he was “not going to have a job much longer.”
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130. Plaintiff emailed Ms. Horta informing her of the retaliatory and threatening
132. In fact, neither Ms. Horta, nor anyone else from the Township, took any action
to investigate Plaintiff’s protected complaints, including the written complaints he made to both
Regulatory Affairs regarding Mr. Wyer’s refusal to follow the UCC and issue a NOV against the
unlawful conduct on the part of the Township, Ms. Horta joined Mr. Wyer and the Township to
135. On or about October 5, 2022, Plaintiff was called into a meeting with Ms. Horta
136. In the meeting, Plaintiff was issued a formal written discipline that included a
137. In the written disciplinary notice setting forth the reasons for the adverse
employment action, the Township admitted that the reason for taking the adverse action was
138. The written notice further warns Plaintiff that further discipline up to
139. During the meeting, Ms. Horta accused Plaintiff of arguing with Mr. Wyer on or
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about September 29, 2022, regarding the illegal building use and Plaintiff’s refusal to sign off on
140. Ms. Horta further admitted to Plaintiff that the basis for the insubordination
charge was because “there’s things that [Wyer] would ask you to do that you wouldn’t do.”
141. Ms. Horta then began falsely accusing Plaintiff of being out of the office for long
periods of time.
142. Ms. Horta’s false accusations that Plaintiff was out of the office for long periods
143. Plaintiff explained that his job entails site work, which often requires him to be
out of the office for extended periods, and it had been that way for the entire time he had worked
at the Township.
144. Ms. Horta responded that Plaintiff would be made to clock in and out going
forward.
145. Ms. Horta further threatened Plaintiff that the Township was investigating him
146. Ms. Horta accused Plaintiff of falsifying his time sheets to state that he was
working for Jackson Township and Plumsted Township at the same time because Plaintiff was
punching out of work for Jackson Township at 3:00 p.m. and punching into work for Plumsted
147. Plaintiff responded that he is on the clock for Plumsted Township starting at
148. Plaintiff explained that Plumsted Township paid him for his travel to the
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149. Plaintiff also explained that Plumsted Township was aware that his workday for
150. Plaintiff then handed Ms. Horta a letter that he obtained directly from Plumsted
Township that expressly refuted Ms. Horta’s accusation that Plaintiff had done anything wrong
in connection with his employment with Plumsted Township by clocking into work at 3:01 p.m.
151. Ms. Horta questioned Plaintiff about what made him get the letter.
152. Plaintiff told Ms. Horta that he had been told that his work for Plumsted would
be made an issue.
153. Despite Plaintiff’s explanation of his work schedule and agreement with
Plumsted Township, Ms. Horta continued to harass Plaintiff, stating “you are here and then
154. Plaintiff again explained that he began work for Plumsted at 3:01 p.m., after he
155. Ms. Horta insisted that Ms. Wyer needed to be made aware of Plaintiff’s
156. Plaintiff stated that he did not work for the Township after 3:00 p.m.
157. Ms. Horta continued to insist, “3:00 and 3:00” despite Plaintiff’s repeated
158. Ms. Horta then stated, “We just have to look into this going forward. When you
need to leave except for your lunch one hour, please tell [Wyer] or Rich where you are going.”
159. Plaintiff stated that he would let them know in writing every day.
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160. Ms. Horta asked why he could not tell them verbally.
161. Plaintiff stated that he felt that he could not trust them.
162. Ms. Horta responded that she was not making false accusations, and it was “a
163. Ms. Horta then asked Plaintiff, “why are you still working here?... If you don’t
164. Plaintiff responded that he had always been happy at his job, and it had only
been in the past year or two that he was being asked to do things that were illegal and that he
refused to do.
167. Ms. Horta asked Plaintiff if he had ever brought this up to herself or Mr. Wall.
169. Plaintiff also stated that he had filed a complaint with the ORA against Mr. Wyer
for attempting to coerce him into signing off on the illegal building use.
170. Ms. Horta confirmed to Plaintiff that she was aware of his ORA complaint.
171. Ms. Horta then attempted to coerce Plaintiff into recanting his statement that
the building had been used illegally and without the proper permits.
173. As the meeting continued, Ms. Horta continued interrupting and challenging
Plaintiff when he tried to explain what was happening within the Township and why Plaintiff
could not perform illegal tasks, telling Plaintiff that he had a “problem with authority.”
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174. When the meeting ended, Plaintiff was suspended without pay for one (1)
week.
175. The following week, on or about October 12, 2022, Plaintiff continued to seek
176. When Plaintiff returned to work following his suspension, Ms. Horta began
177. Upon seeing Plaintiff place papers in the office recycling bin, Ms. Horta told
Plaintiff that he was not allowed to throw any papers out anymore.
178. Ms. Horta then removed the recycling bin from the office and began to search
179. Plaintiff began experiencing chest pains and heightened anxiety because of the
180. Plaintiff was treated in the Emergency Room and was ordered him to stay out
of work.
181. As a result of the foregoing, Plaintiff was unable to continue medically to work
at the Township and/or was constructively discharged on or about October 31, 2022.
182. After Plaintiff’s separation of your employment, upon information and belief,
the batting cages were re-installed and re-commenced the illegal use without proper permits.
183. As a result of the harassing and discriminatory conduct, Plaintiff has suffered
economic damages, physical injury, emotional distress and continues to experience ongoing
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FIRST COUNT
184. Plaintiff repeats and realleges each of the prior allegations of the within Complaint
and refusal to participate in unlawful activities or directives is protected under the New Jersey
186. Plaintiff reasonably believed Defendants’ conduct was in violation of laws, rules
and/or regulations; criminal; and/or incompatible with a clear mandate of public policy, including
187. The adverse treatment of Plaintiff set forth herein, including the constant
harassment, constant threats, the malicious interference into his employment with Plumsted, his
condition, and other unlawful conduct by the Township set forth herein, was in retaliation for
Plaintiff’s complaints, disclosures and/or objections, refusal to participate and for retaining
counsel.
188. Defendants’ conduct was in violation of CEPA, N.J.S.A. §34:19-1, et. seq.
189. Defendants engaged in, participated in, condoned, ratified, perpetuated and/or
190. Defendants’ conduct and actions were malicious and/or undertaken with a
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WHEREFORE, Plaintiff demands judgment against Defendants, jointly and severally, for
harm suffered as a result of the violations of CEPA, N.J.S.A. 34:19-1, et seq., as follows:
C. Compensatory damages;
D. Consequential damages;
E. Punitive damages;
G. Any and all attorney’s fees, expenses and/or costs, including, but not limited to,
court costs, expert fees and all attorney’s fees incurred by Plaintiff in the
law); and
H. Such other relief as may be available and which the Court deems just and
equitable.
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attorneys whether or not there are any insurance agreements or policies under which any person
or firm carrying on an insurance business may be liable to satisfy part or all the judgment which
may be entered in this action or indemnify or reimburse for payments made to satisfy the
judgment and provide Plaintiff’s attorneys with true copies of those insurance agreements or
policies, including but not limited to, any and all declaration sheets. This demand shall include
and cover not only primary insurance coverage, but also any excess, catastrophic and umbrella
policies.
CERTIFICATION
Pursuant to R. 4:5-1, it is hereby stated to the best of my knowledge and belief that the
matter in controversy is not the subject of any other action pending or contemplated in any other
Court or of a pending arbitration proceeding. Further, Plaintiff is unaware of any non-party who
should be joined in the action pursuant to R. 4:28 or who is subject to joinder pursuant to R. 4:29-
1(b) because of potential liability to any party on the basis of the same transactional facts. I
further certify that confidential personal identifiers have been redacted from documents now
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submitted to the Court, and will be redacted from all documents submitted in the future in
JURY DEMAND
Pursuant to Rule 4:25-4, CHRISTOPHER J. EIBELER, Esq. is designated as trial counsel for
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PM Pg 1 of 1 Trans
TransID:
ID:LCV20232978892
LCV20232978892
Case Caption: SCHMALZ KEVIN VS TOWNSHIP OF Case Type: WHISTLEBLOWER / CONSCIENTIOUS EMPLOYEE
JACKSON PROTECTION ACT (CEPA)
Case Initiation Date: 09/29/2023 Document Type: Complaint with Jury Demand
Attorney Name: CHRISTOPHER J EIBELER Jury Demand: YES - 6 JURORS
Firm Name: SMITH EIBELER LLC Is this a professional malpractice case? NO
Address: 101 CRAWFORDS CORNER RD STE 1-126 Related cases pending: NO
HOLMDEL NJ 07733 If yes, list docket numbers:
Phone: 7324441300 Do you anticipate adding any parties (arising out of same
Name of Party: PLAINTIFF : SCHMALZ, KEVIN transaction or occurrence)? NO
Name of Defendant’s Primary Insurance Company Does this case involve claims related to COVID-19? NO
(if known): Unknown
Are sexual abuse claims alleged by: KEVIN SCHMALZ? NO
Please check off each applicable category: Putative Class Action? NO Title 59? NO Consumer Fraud? NO
I certify that confidential personal identifiers have been redacted from documents now submitted to the
court, and will be redacted from all documents submitted in the future in accordance with Rule 1:38-7(b)