In this appeal, the court was asked to address whether the Rules of Court permit a trial court to sua sponte reverse its order denying reconsideration of a final order granting summary judgment pursuant to Rule 4:49-2.
Plaintiff filed a complaint pursuant to the Conscientious Employee Protection Act (CEPA), N.J.S.A. 34:19-1 to -14, alleging defendant retaliated against him after he reported alleged violations of state and federal law. At the summary judgment stage, the issue before the trial court was whether plaintiff met the definition of "employee" for purposes of CEPA.
The court granted defendant's motion for summary judgment and denied plaintiff's subsequent motion for reconsideration. Fifteen days later it augmented its order, filing an additional order and statement of reasons reiterating the denial of plaintiff's motion for reconsideration. Five days later the trial court reversed itself, issuing a sua sponte order pursuant to Rule 4:49-2 and Rule 1:1-2(a) vacating both the summary judgment order in favor of defendant and the supplemental denial of reconsideration order. Without notifying the parties and giving them an opportunity to be heard, it reinstated plaintiff's complaint.
The court reversed. Although acknowledging and encouraging a court's ability to self-correct in appropriate circumstances, it balanced the trial court's earnest attempt at self-correction with the parties'—and the court's—need for finality. Rule 4:49-2 permits reconsideration of final orders or judgments only within twenty days of their entry to promote principles of finality, and prohibits reconsideration of a final order denying reconsideration, whether on the motion of the court or a party.
In doing so, the court reasoned that if multiple motions for reconsideration of final orders were permitted by the court, any party could continually file Rule 4:49-2 motions challenging the previous denial, leaving final judgments uncertain and open to revision far beyond the twenty-day time limit prescribed in Rule 4:49-2. Once a trial court enters an order of final judgment, parties are entitled to rely upon that finality, subject to the rules governing reconsideration and appeal.