A New Jersey couple scored a win in federal court, where a judge ruled they can move forward with key parts of their lawsuit accusing Ocean County prosecutors of malicious prosecution and defamation.
Salvatore and Jane Mattiaccio, owners of Level and Square Construction in Point Pleasant, allege that now-retired Assistant Ocean County Prosecutor William Scharfenberg used his position to pursue criminal investigations against them while operating a competing construction company, Beacon Homes of N.J.
On July 8, U.S. District Judge Georgette Castner issued a ruling in the case, dismissing many of the couple’s claims on immunity and procedural grounds.
The judge has ruled that several of those named in the lawsuit will remain in the case, while others have been dismissed.
The court allowed claims to proceed against four individuals affiliated with the
Ocean County Prosecutor’s Office,
as well as Beacon Homes of NJ.
However, the judge dismissed all claims against three other individuals and the Ocean County Prosecutor’s Office itself.
The ruling narrows the scope of the litigation but ensures that key allegations will continue to be litigated in federal court.
However, she allowed their allegations of malicious prosecution and defamation—stemming from a 2018 arrest—to proceed against Scharfenberg and several other defendants.
The Mattiaccios claim that Scharfenberg operated Beacon Homes from within the prosecutor’s office while employed as a prosecutor.
They also allege he failed to obtain required approvals for outside employment.
They also allege that his business interests motivated a series of criminal investigations and prosecutions against them, including
charges stemming from a contract dispute with a customer in 2018
. That case was later dismissed.
The judge dismissed all claims against the Ocean County Prosecutor’s Office and its employees in their official capacities, ruling that those claims were barred by sovereign immunity—a legal doctrine that protects state agencies and officials from being sued for damages in federal court.
Claims related to two other investigations were dismissed due to the plaintiffs’ failure to comply with notice requirements under the New Jersey Tort Claims Act, which requires anyone planning to sue a public entity or employee for damages to first file a formal notice of claim within 90 days of the incident.
However, the judge allowed the Mattiaccios to move forward with claims that Scharfenberg and others acted with malice in prosecuting them and defamed their business.
However, the suit will proceed against the prosecutors in their individual capacities, meaning the lawsuit treats them as personally responsible rather than as officials acting on behalf of the state.
The case is pending in the U.S. District Court for the District of New Jersey.
Attorneys representing the Mattiaccios did not immediately respond to a request for comment.
A spokesperson for the Ocean County Prosecutor’s Office also declined to comment.
Additionally, attorneys for the individual defendants, including Scharfenberg, speaking through the New Jersey Office of the Attorney General, declined to provide a statement.
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