Mortgage Bankers Ass'n of N.J. v. New Jersey Real Estate Comm'n

In Mortgage Bankers Ass'n of N.J. v. New Jersey Real Estate Comm'n, 102 N.J. 176, 506 A.2d 733 (1986), the Supreme Court found the record before the Real Estate Commission was "insufficient to reflect either the diverse and complex economic factors pertinent to the issue or the overlapping regulatory interests of the Commission and the Department of Banking." Id. at 179, 506 A.2d 733. The Court reversed and remanded to both the Real Estate Commission and the Department of Banking to conduct joint hearings "in order to produce a record sufficiently comprehensive to afford a proper basis for both agency action and judicial review." Id. at 179, 506 A.2d 733. The Supreme Court stated the reason for its mandate in this perceived conflict between agencies: Accordingly, in order to recognize the independent regulatory interest of the Commissioner of Banking, we remand this matter to both the Commissioner of Banking and the Real Estate Commission to hold joint hearings, which shall be conducted by an administrative law judge assigned by the Director of the Office of Administrative Law. N.J.S.A. 52:14B-10(c); N.J.S.A. 52:14F-5(n), (o). See City of Hackensack v. Winner, 8182 N.J. 1, 36-37, 410 A.2d 1146 (1980). To the extent that the hearings are adjudicative and involve the interpretation of N.J.S.A. 45:15-17(i), the Real Estate Commission shall be deemed to have the predominant interest. N.J.A.C. 1:1-14.5 now N.J.A.C. 1:1-17.5. To the extent that the hearings involve rulemaking, N.J.S.A. 52:14B-4, the administrative law judge shall make recommendations to each agency regarding the adoption of appropriate regulations. N.J.S.A. 52:14B-4(g). We have previously recognized the need for administrative agencies to use hybrid proceedings, characterized by both the adjudicative and rulemaking functions, in the discharge of their statutory responsibilities. Id. at 192, 506 A.2d 733.