Landmark ruling rejects County's attempt to avoid paying relocation benefits after campground residents were displaced for $7.45 million open-space purchase.
A Superior Court judge has handed Ocean County a potentially costly defeat in the long-running Surf & Stream Campground litigation, ruling that the County is legally liable to provide relocation assistance to at least one displaced resident — a decision that could ultimately expose the County to millions of dollars in damages.
Following oral argument held on Friday, Superior Court Judge Anthony Merlino granted partial summary judgment in favor of plaintiff Katelynn Ludlam, holding that she is entitled to judgment on liability under the New Jersey Relocation Assistance Act. The Court simultaneously denied Ocean County's request to dismiss her claim. The ruling resolves liability, leaving only the amount of damages and benefits to be determined.
At the heart of the lawsuit was a novel legal argument advanced by Ocean County.
In 2022, the County agreed to purchase the Surf & Stream Campground in Manchester Township for approximately $7.45 million as open space. But rather than take title with residents still living there, the purchase contract required the private owner to first remove all residents and trailers before closing. The County did not acquire the property until after the campground had been emptied.
The County then argued that because the landlord filed the eviction actions - and not the County - it had no obligation to provide relocation benefits.
In essence, the County claimed:
> "We're not evicting anyone. The owner is. We'll simply buy the property after it's vacant."
The lawsuit contends that this was nothing more than an attempt to sidestep New Jersey's Relocation Assistance Act, which is designed to protect residents displaced by government acquisitions. According to the complaint, the campground owner explicitly informed tenants they had to leave because Ocean County had authorized the purchase for open-space preservation, and later filed eviction actions based upon that sale.
The displaced residents turned to well-known Ocean County attorney and former State Assemblyman Kevin Starkey, who quickly became the public face of the legal battle.
Starkey initially sought emergency court intervention to halt the evictions while the relocation issues were resolved. Although the court declined to stop the removals, the judge directed that the legal questions surrounding relocation assistance be addressed through the Department of Community Affairs.
The litigation did not stop there.
Starkey ultimately filed a sweeping lawsuit on behalf of dozens of former residents, alleging that Ocean County violated the Relocation Assistance Act by refusing to provide mandatory relocation notices, advisory services, moving expenses, replacement housing assistance, and rental assistance after purchasing the campground. The Fifth Amended Complaint alleges many residents became homeless or were forced into inferior housing after being displaced.
One of the major turning points came when the Department of Community Affairs considered the County's legal theory.
The County argued that relocation benefits apply only when property is acquired through eminent domain.
The Department disagreed.
According to the motion papers, the DCA ruled that the Relocation Assistance Act does not require the use of eminent domain before relocation assistance becomes mandatory. It further concluded that Ocean County could not avoid its statutory obligations simply by requiring the private campground owner to remove tenants before the sale closed.
Judge Merlino's summary judgment ruling now adopts that conclusion - at least with respect to plaintiff Katelynn Ludlam - holding Ocean County liable under the Relocation Assistance Act.
The significance of the ruling extends far beyond one plaintiff.
The Fifth Amended Complaint names scores of former campground residents who claim they were displaced by the County's acquisition.
During the earlier emergency proceedings, the original Chancery judge warned that if relocation assistance were ultimately required, Ocean County's financial exposure could be staggering. Based upon relocation payments made by neighboring Monmouth County in similar acquisitions, the judge estimated the total cost could reach millions of dollars for the approximately 100 displaced households.
Judge Merlino's ruling does not establish damages for every plaintiff. But by deciding liability in favor of the first resident, it creates what may become the roadmap for the remaining claims.
If additional plaintiffs obtain similar rulings, Ocean County's decision to characterize the landlord as the party "doing the evictions" may ultimately prove to be a very expensive strategy.
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