Civil Reservations: An Important Tool for N.J. Courts and Criminal Defendants

Plea bargains are an important element of the criminal justice system in New Jersey and across the U.S. The American Bar Association reports that approximately 98% of criminal convictions in the U.S. come from guilty pleas rather than from trials. Plea bargains help our justice system function efficiently by reducing the need for criminal trials and the administrative resources they require.

However, criminal defendants who know they may or will also face civil claims for their conduct are much less likely to accept a plea bargain. Plea bargains qualify as statements of a party opponent, which are admissible as evidence in a New Jersey civil trial under N.J.R.E. 803(b)(1). Thus, a defendant’s criminal plea could come back to haunt them in a later civil trial regarding the same conduct that led to criminal charges.

Civil reservations address this concern, serving as a useful tool that can facilitate plea bargains while alleviating the concerns a defendant may have about entering a plea.

Criminal defendants can negotiate a civil reservation into their plea bargain, which prevents their plea from being used against them in a civil proceeding. This is important because, as the New Jersey Supreme Court explained in Maida v. Kuskin, 110 A.3d 867 (2015), “absent a properly entered civil reservation, a person who enters a guilty plea . . . may be confronted with the factual basis for it in a civil action arising from the same occurrence . . . .” Of course, if a defendant is found guilty but doesn’t admit any wrongdoing, there’s no statement that can be used against them in civil cases under N.J.R.E. 803(b)(1) because they never actually admitted their guilt.

The relevant court rules for civil reservations

Civil reservations are outlined in New Jersey’s Municipal Court Rule 7:6-2(a)(1). That Rule states, in part, that “[o]n the request of the defendant, the court may, at the time of the acceptance of a guilty plea, order that the plea shall not be evidential in any civil proceeding.”

Similarly, Superior Court Rule 3:9-2 states that “[f]or good cause shown the court may, in accepting a plea of guilty, order that such plea not be evidential in any civil proceeding.”

There is a major difference between these two rules. The Municipal Court’s rule presumes good cause, placing the burden of proving otherwise upon an objector. In contrast, the Superior Court’s rule places the burden of proving good cause upon the defendant and requires they show good cause for the civil reservation to issue.

This is likely because of the cases each court hears. The Superior Court is one of general jurisdiction, but the Municipal Court hears criminal cases involving petty offenses like traffic violations, DUIs, and disorderly conduct. The drafters’ intent when writing the civil reservation rules was likely to facilitate the plea bargaining process for defendants facing petty offenses that frequently involve additional civil claims.

New Jersey has a powerful incentive to facilitate rapid resolution and plea bargaining for these relatively minor offenses. For the more serious criminal matters that are before the Superior Court, the state is likely balancing other interests that favor more thorough adjudication and a higher standard defendants must meet to secure a civil reservation.

The “ins and outs” of civil reservations

A civil reservation must be made in open court and made contemporaneously with a court accepting the defendant’s guilty plea. Defendants should remember that any testimony they give before securing a civil reservation will not be protected by it.

As I mentioned above, a court may evaluate “good cause” when determining whether to grant a civil reservation. The Appellate Division has made clear what good cause looks like.

First, good cause exists when, as the Appellate Division held in State v. Haulaway, Inc., 608 A.2d 964 (1992), the reservation “is necessary to remove an obstacle to a defendant’s pleading guilty to a criminal charge.” In other words, the defendant would plead guilty but for the ramifications of the guilty plea in subsequent civil cases.

More recently, the Appellate Division held in State v. Tsilimidos, 837 A.2d 373 (2003), that good cause can also be shown “where the civil consequences of a plea may wreak devastating financial havoc on a defendant.” For example, in State v. McIntyre-Caulfield, 187 A.3d 171 (N.J. App. Div. 2018), the court held that a civil lawsuit after the defendant’s guilty plea could wreak financial havoc where their insurance company disclaimed coverage in the related civil matter.

Notably, crime victims have a limited role to play in civil reservations. Under N.J. Rev. Stat. § 52:4B-36(o), victims can consult with a prosecutor before plea negotiations are complete. They also have the right to have a prosecutor advise a court on the victim’s position regarding the plea agreement. However, these rights of a victim do not alter or limit the authority or discretion of the prosecutor to enter into any plea agreement they deem appropriate.

In some circumstances, victims may appeal a trial court’s granting of a civil reservation. In State v. Lavrik, 275 A.3d 929 (2022), the Appellate Division held that where a civil reservation was not a condition of a plea agreement, a victim had standing to appeal the reservation.

In that case, the victim asserted in a single point heading in a court filing that the trial court erroneously granted a civil reservation. The prosecutor in the case argued the defendant failed to establish good cause, particularly proof of the potential for financial devastation. The court noted that section 52:4B-36(o) would have prevented the victim from being able to contest the trial court’s entry of the order allowing the civil reservation if it were a condition of the plea agreement because it would have interfered with the prosecutor’s discretion concerning plea agreements.

A useful tool for criminal defendants that criminal and civil attorneys should be mindful of

Civil reservations are crucial for the efficient functioning of New Jersey courts. Particularly with petty offenses that frequently come with related civil actions, civil reservations allow courts to efficiently manage their criminal dockets when a guilty plea is in the parties’ best interests but for a criminal defendant’s potential attendant civil liability.

Criminal and civil attorneys should familiarize themselves with the statutes, case law, and common practices regarding civil reservations. It could very well be malpractice for a criminal defense attorney not to seek a civil reservation for their client. In most cases, courts will grant civil reservations as part of a plea bargain, though it only benefits the defendant to have a civil reservation on the record. Particularly in Municipal Court where the burden of proof falls upon objectors, there is no reason for a criminal defense attorney to not seek a civil reservation if there is any risk of attendant liability in a civil action.

When the action shifts from a criminal case to a related civil case, regardless of which side of the latter an attorney is on, if there’s a question about a civil reservation, the attorney should request the certified disposition from the Municipal Court or Superior Court. This will help them determine whether the civil reservation was granted so they know how to proceed in the civil case.

Joseph A. Lombardi is an attorney at Lombardi & Lombardi, P.A., a leading New Jersey personal injury, workers’ compensation, and employment law firm effectively representing the legal needs of its clients since 1975. He can be reached at JosephL@lombardiandlombardi.com.