DED or Alive: Is the Exceptional Circumstance Standard Still Applicable in Civil Discovery Extension Motions Post New Appellate Opinion?

There are two standards for extending discovery in civil cases in New Jersey. The “good cause” standard is utilized when an application for a discovery extension is filed and heard before the end of the discovery period but prior to the assignment of an arbitration or trial date, according to R. 4:24-1 (c). Alternatively, the “exceptional circumstance” standard applies when an arbitration or trial date is set, according to R. 4:24-1 (c). But what standard applies when a motion to extend discovery is filed before the discovery end date expires but an arbitration or trial date has already been set? The Appellate Division in Hollywood Café Diner, Inc. v. Jaffee, 473 N.J. Super. 210 (Super. Ct. App. Div. 2022) held that the standard is good cause.

In Hollywood Café Diner, the Court sent the parties a notice that a trial date had been set a month before the initial discovery end date. Subsequently, all parties consented to extend the discovery end date 60 days from its initial end date according to R. 4:24-1 (c). During the 60-day extension, the defendants moved to extend discovery for “good cause” as they were still asserting deficiencies in discovery. The trial judge denied the motion and stated that the arbitration and trial date were already set and no exceptional circumstances existed. Subsequently, the  motion for reconsideration of the discovery end date extension was denied. Since discovery was not extended and there were significant discovery deficiencies including the absence of an expert liability report, the defendants were granted summary judgment.

On appeal, the Appellate Division found that courts that set arbitration and trial dates and do not strictly follow R. 4:36-2 to allow parties to move to extend discovery in the 60-day period could render the “good cause” standard meaningless. As such, the Appellate Court held “when the court chooses to send out arbitration and trial notices during the discovery period, judges evaluating a timely motion to extend discovery may not utilize the ‘exceptional circumstances’ standard, but rather the judge ‘shall enter an order extending discovery’ upon a showing of ‘good cause.’”

The decision does not define the discovery period any differently then the Court Rules. As the opinion currently stands, as long as the discovery period has not expired, the “good cause” standard is applicable regardless of any set arbitration or trial date. Judges may be wary to grant extensions under the “good cause” standard in cases where the arbitration or trial date has been set and the case is outside the initial discovery allotment of the designated track assignment. Until the Appellate Division provides more specificity to how the “good cause” standard is applicable when an arbitration or trial date has been set, the standard is still arguably applicable. Lastly, the Appellate Division determined that its opinion followed the Best Practices rules, citing Judge Pressler regarding the 2000 Rule amendments. Report of the Conference of Civil Presiding Judges on Standardization and Best Practices, 156 N.J.L.J. 80, 82 (April 5, 1999); Hollywood Café Diner, Inc. v. Jaffee, 473 N.J. Super. 210,220.

As a result, the Hollywood Café Diner decision has expanded the use of the “good cause” standard during discovery extension motions. According to the Appellate Division, the Best Practices rules allow for the use of the least stringent standard despite any set arbitration or trial date. The applicability of the “exceptional circumstances” standard has been left uncertain with the lack of definition surrounding the new use of the “good cause” standard. However, diligent practitioners should account for the more stringent standard where applicable.

If you have questions about the application of the good cause standard or the exceptional circumstance standard to your litigation proceeding, please contact Thomas Shivers and Joseph V. Leone or call us at 732-545-4717.