Yes, NJT stopped using the east end of the former Greenwood Lake Branch of the Erie (east of Walnut Street in Montclair) when the line was connected to the former Lackawanna Montclair Branch at Bay Street Montclair. This was accomplished around 10 years ago, so it has been more than a few years since passenger service ended. The out of use portion of the line was not abandoned, but was returned to Norfolk Southern ownership via an agreement with Conrail (not sure of the details.
Of course, NS didn't really want this double track railroad through one of the highest property tax areas in NJ, especially since the line only recived a few carloads of freight a week. Thus, the signals and one track were taken out of service, with the reamining track downgraded to running track status. Since there was not freight on the line over the WR (Passaic River) and DB (Hackensack River) draw bridges, both of them were removed from service; NJT was not willing to spend the money to rebuild these badly deteriorated bridges, so NS certainly was not. So, that brings us to the present day, where the line east of DB in the Meadowland is used to store cars, and the line east of Walnut Street is used for local freight - although I'm not sure if that even occurs today.
More pictures of the line:
http://www.rrpicturearchives.n...Thumbs.aspx?id=52246