Law Offices of Gary S. Park, Pc v. Sung H. Jang - Appeal of Sanctions Denial
Summary
The New Jersey Superior Court Appellate Division affirmed a lower court's decision denying a motion for sanctions against a plaintiff. The case involves a dispute between a law firm and a former associate who left to start her own practice, leading to allegations of breach of fiduciary duty and tortious interference.
What changed
The New Jersey Superior Court Appellate Division has affirmed a lower court's denial of a motion for sanctions in the case of Law Offices of Gary S. Park, Pc v. Sung H. Jang. The appeal stems from a dispute initiated by Law Offices of Gary S. Park, PC, against Sung H. Jang and SJ Law, alleging breach of fiduciary duty, tortious interference, fraud, and other claims after Jang left the firm to establish her own practice. The appellate court's decision upholds the trial court's order, indicating no sanctions will be imposed on the plaintiff in this instance.
This non-precedential opinion is binding only on the parties involved and serves as a reminder of the limited use of such opinions in other cases per R. 1:36-3. While this specific ruling does not impose new obligations or penalties on legal professionals broadly, it underscores the importance of proper procedure and evidence when seeking sanctions. Legal professionals involved in similar disputes should review the case details to understand the appellate court's reasoning in affirming the denial of sanctions, particularly concerning the initial complaint and subsequent filings.
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March 11, 2026 Get Citation Alerts Download PDF Add Note
Law Offices of Gary S. Park, Pc v. Sung H. Jang
New Jersey Superior Court Appellate Division
- Citations: None known
- Docket Number: A-2254-24
Precedential Status: Non-Precedential
Combined Opinion
NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the
internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-2254-24
LAW OFFICES OF GARY
S. PARK, PC,
Plaintiff-Respondent,
v.
SUNG H. JANG and
SJ LAW,
Defendants-Appellants.
Submitted January 14, 2026 – Decided March 11, 2026
Before Judges Currier and Jablonski.
On appeal from the Superior Court of New Jersey,
Law Division, Bergen County, Docket No. L-3241-24.
SJ Law and Law Offices of Matthew Jeon, PC,
attorneys for appellant (Sung H. Jang and Matthew
Jeon, on the briefs).
Albert H. Wunsch, III, attorney for respondent (Albert
H. Wunsch, III, of counsel and on the brief; Jeffrey
Zajac, on the brief).
PER CURIAM
Defendants Sung H. Jang and SJ Law appeal from the Law Division's
February 14, 2025, order denying a motion for sanctions against plaintiff. We
affirm.
I.
Sung H. Jang was an associate at plaintiff's law firm and later became its
managing attorney. In July 2020, Jang left the firm to establish her own
practice. Following her departure, twenty-two clients transferred their
representation to defendant's new firm.
In July 2021, plaintiff sued defendants alleging breach of fiduciary duty
and duty of loyalty, and tortious interference with client contracts.
Specifically, plaintiff alleged Jang engaged in improper conduct before her
departure from the firm, including soliciting clients and diverting business in
which plaintiff had invested significant effort and resources. Plaintiff also
accused Jang of removing and copying confidential materials and making
misleading representations to clients about the firm's status, its reputation, and
the progress of their cases. Plaintiff contended Jang used firm resources to
represent clients without authorization and bound plaintiff to external vendors
without consent.
A-2254-24
2
In August 2021, Jang moved to dismiss the complaint under Rule 4:6-
2(e). The trial court denied the motion in September 2021, and we denied
defendant's request for leave to appeal. In November 2021, plaintiff amended
its complaint and added claims for fraud and deceit, quantum meruit, and
unjust enrichment. In January 2022, defendants again moved to dismiss the
complaint. Plaintiff did not oppose the application. The trial court granted the
motion and dismissed the complaint with prejudice. Plaintiff did not pursue
the matter further.
In June 2024, plaintiff filed a new complaint alleging breach of contract,
conversion, unjust enrichment, and breach of the covenant of good faith and
fair dealing. It also sought punitive damages. In August 2024, defendants
served plaintiff with a notice of frivolous litigation under Rule 1:4-8 and
referenced the prior dismissal with prejudice and requesting withdrawal of the
new complaint. Plaintiff did not withdraw the 2024 complaint within the
twenty-eight-day "safe harbor" period established under Rule 1:4-8. In
September 2024, defendants moved to dismiss the complaint. A different
motion judge granted the application and concluded the claims were barred by
res judicata and the entire controversy doctrine.
A-2254-24
3
In January 2025, defendants moved for counsel fees under N.J.S.A.
2A:15-59.1. In February 2025, the court denied the request concluding
plaintiff did not file the 2024 complaint in bad faith:
[T]he [c]ourt cannot conclude that [ ] plaintiff
displayed the "requisite bad faith or knowledge of lack
of well-groundedness" in pursuing his claim. Iannone
[v. McHale], 245 N.J. Super. [17,] 31 [(App. Div.
1990)]. The filing of the [2024] complaint that
included a cause of action for breach of contract does
not support [d]efendant's position that i[t] was filed in
bad faith or with a purpose to harass. Simply because
the [2024] complaint was dismissed on the basis of the
entire controversy doctrine and res judicata, without
more, does not suffice to establish [the] losing party's
bad faith.
Defendants appealed and claimed the trial court incorrectly denied their
request for sanctions because plaintiff's refiling was objectively unreasonable
and was pursued in bad faith. We disagree.
II.
We review a determination regarding an award or denial of sanctions
under an abuse of discretion standard. United Hearts, L.L.C. v. Zahabian, 407
N.J. Super. 379, 390 (App. Div. 2009); In re. Est. of Ehrlich, 427 N.J. Super.
64, 76 (App. Div. 2012). A motion court misapplies its discretion if it decides
a matter "'without a rational explanation, inexplicably departed from
established policies, or rested on an impermissible basis.'" Flagg v. Essex
A-2254-24
4
Cnty. Prosecutor, 171 N.J. 561, 571 (2002) (quoting Achacoso-Sanchez v.
Immigr. & Naturalization Serv., 779 F.2d 1260, 1265 (7 th Cir. 1985)).
Rule 1:4-8 authorizes sanctions against attorneys and self-represented
parties for frivolous litigation. The Rule supplements N.J.S.A. 2A:15-59.1,
which permits the trial court to award to a prevailing party in a civil action "all
reasonable litigation costs and reasonable attorney fees, if the judge find at any
time during the proceedings or upon judgment that a complaint, counterclaim,
crossclaim or defense or the non[-]prevailing person was frivolous." N.J.S.A.
2A:15-59.1(a)(1).
"'[T]he term frivolous should be given a restrictive interpretation' to
avoid limiting access to the court system." First Atl. Fed. Credit Union v.
Perez, 391 N.J. Super. 419, 433 (App. Div. 2007) (quoting McKeown Brand v.
Trump Castle Hotel & Casino, 132 N.J. 546, 561-62 (1993)) (internal
quotation marks omitted). To find a pleading was frivolous, a motion court
must conclude the filing was made "in bad faith solely for the purpose of
harassment, delay or malicious injury," N.J.S.A. 2A:15-59.1(b)(1) or "[t]he
non[-]prevailing party knew, or should have known" the filing "was without
any reasonable basis in law or equity," N.J.S.A. 2A:15-59.1(b)(2). Similarly,
"'[f]or purposes of imposing sanctions under Rule 1:4-8, an assertion is
A-2254-24
5
deemed frivolous when no rational argument can be advanced in its support, or
it is not supported by any credible evidence, or it is completely untenable.'"
Bove v. AkPharma, Inc., 460 N.J. Super. 123, 148 (App. Div. 2019) (quoting
United Hearts, 407 N.J. Super. at 389) (internal quotations omitted).
"Sanctions are not to be issued lightly; they are reserved for particular
instances where a party's pleading is found to be 'completely untenable,' or
where 'no rational argument can be advanced in its support.'" McDaniel v.
Man Wai Lee, 419 N.J. Super. 482, 499 (App. Div. 2011) (quoting United
Hearts, 407 N.J. Super. at 389); see also Bove 460 N.J. Super. at 148 (noting
sanctions under Rule 1:4-8 and N.J.S.A. 2A:15-59.1 are awarded only in
exceptional cases). Simply because "some of the allegations made at the
outset of litigation [that] later prove [ ] to be unfounded do[] not render [the
complaint] frivolous." Ibid. (second alteration in the original) (quoting
Iannone, 245 N.J. Super. at 32).
"When the [non-prevailing party's] conduct bespeaks an honest attempt
to press a perceived though ill-founded and perhaps misguided, claim, he or
she should not be found to have acted in bad faith." Bove, 460 N.J. Super. at
151 (alteration in original) (quoting Belfer v. Merling, 322 N.J. Super. 124,
144-45 (App. Div. 1999)); see also First Atl. Fed. Credit Union, 391 N.J.
A-2254-24
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Super. at 432 ("Where a party has reasonable and good faith belief in the merit
of the cause, attorney's fees will not be awarded."); K.D. v. Bozarth, 313 N.J.
Super. 561, 574-75 (App. Div. 1998) (declining to award attorney's fees as
sanctions under Rule 1:4-8 where there was no showing the attorney acted in
bad faith).
In its written statement of reasons supporting the denial of defendants'
application, the court observed the 2024 complaint included new causes of
action and, specifically, a breach of contract claim. Although the complaint
was dismissed, the motion judge ultimately concluded plaintiff did not act in
bad faith in bringing these allegations. In view of the principles governing
adjudication of sanctions requests and mindful of our discretionary standard of
review, we discern no reason to overturn the court's conclusion that sanctions
were not warranted.
Affirmed.
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