On appeal from the Superior Court of New Jersey, Law Division, Bergen County.
King, Gruccio and Brochin. The opinion of the court was delivered by Brochin, J.A.D.
The opinion of the court was delivered by
Defendants Joseph Scugoza and Haulaway, Inc. were engaged in the waste disposal industry. In a 42-count indictment, they were charged with 35 counts of fourth degree falsifying records in violation of N.J.S.A. 2C:21-4a, three counts of third degree theft by deception in violation of N.J.S.A. 2C:20-4, and one count of fourth degree theft by deception in violation of N.J.S.A. 2C:20-4; defendant Scugoza was also charged with one count of second degree racketeering in violation of N.J.S.A. 2C:41-2c, one count of conspiracy to commit racketeering in violation of N.J.S.A. 2C:41-2d and N.J.S.A. 2C:2-6, and one count of third degree misconduct by a corporate official in violation of N.J.S.A. 2C:21-9c.
Pursuant to a plea agreement, Haulaway, Inc. pleaded guilty to one count of third degree theft by deception and Scugoza pleaded guilty to one count of third degree misconduct by a corporate officer and one count of fourth degree falsifying records. The defendants also agreed to pay $100,000 as a forfeiture. The State agreed to dismiss all other counts against these defendants and all counts against other co-defendants who were charged in the same indictment. This plea agreement was conditioned on the execution of a settlement agreement between Haulaway, Inc., and the Board of Public Utilities, and upon the named co-defendant's agreeing not to engage in the solid waste disposal or recycling industries in New Jersey. The settlement agreement with the Board of Public Utilities also bars defendant Scugoza from engaging in the solid waste disposal business in New Jersey.
The plea agreements were executed and defendants pleaded guilty on October 18, 1990. The settlement agreement between Haulaway, Inc. and the Board of Public Utilities was executed
in June 1991. There was also a related federal conviction and a civil settlement with the federal government involving payment of a large amount of money.
On February 14, 1991, defendants moved for an order that their guilty pleas "not be evidential in any civil proceeding." See R. 3:9-2. The State objected, contending that it should retain the right to use the defendants' criminal convictions as part of the basis for debarring them from future participation in the highly regulated solid waste disposal industry. The Law Division orally granted the defendants' motion on July 1, 1991, and entered an order in accordance with its ruling on July 5, 1991.
The State has appealed. It argues that the defendants have not shown "good cause," as required by R. 3:9-2, for the entry of the no-civil-use order. We agree and therefore vacate the order of July 5, 1991.
Defendants concede that although they discussed a no-civil-use order with the Attorney General's Office, the State never agreed to such an order and its entry never became condition of their ...