Baby M Decision and Validity of Surrogacy Contracts Revisited

In 1988, the New Jersey Supreme Court ruled that a surrogacy contract was invalid based upon the circumstances of that case.  The Court found that such agreements are in direct conflict with existing statutes and in conflict with New Jersey public policy.  In the Baby M case, would-be parents entered into a contract with a women who agreed to supply the egg for in vitro fertilization, to implantation of the embryo and to carry the fetus to birth at which point the would-be parents would adopt the baby.  However, the surrogate mother changed her mind after the birth of the child and would not agree to the adoption.   The Baby M decision made it clear that New Jersey courts disfavor surrogacy agreements especially those involving monetary exchange. 

The Baby M case involved a surrogacy agreement by a surrogate who was also the biological donor of the egg.  Since the 1988 Baby M decision, the question of whether or not surrogacy agreements are invalid regardless of whether or not the surrogate mother has biological relations to the child has never been answered.  However, recently, on December 23, 2009, a trial Court in Hudson County entered a decision in the A.G.R. v. D.R.H. and S.H. case finding that surrogacy agreements in New Jersey are invalid regardless of the biological relationship of the surrogate mother.

The A.G.R. decision arose out of a 2005 agreement between the surrogate mother and her brother, D.R.H. D.R.H. and defendant S.H. obtained a same sex marriage in the State of California and thereafter registered as domestic partners in the State of New Jersey. In or about 2005, D.R.H. and A.G.R. entered into a contract whereby S.H. would provide the sperm which would be used to fertilize the eggs donated by an unknown woman. The parties furtehr agreed that once fertilization occurred the fertilize embryos would then be implanted into A.G.R. who would carry the fetus to birth. As a result of the in vitro procedure, A.G.R. delivered twin girls.

Although the Court's decision does not provide specifics, after the twins were born, there was a dispute as to A.G.R.'s ongoing involvement with the twins resulting in litigation among the parties.

D.R.H. argued that since A.G.R. did not provide the biological material for the embryos, the surrogacy agreement should be held valid. The Court however pointed out that the Baby M decision only comments on the infants genetic make-up once and the vast majority of the decision supported invalidity of surrogacy agreements in New Jersey.

Notably, there is a split among jurisdictions. Some states honor gestational surrogacy while others, like New Jersey, do not.
 

THE SUPREME COURT HEARING ARGUMENTS ON CRESPO TODAY

Previously we have blogged on the Crespo case.  In this case, the trial court determined that the Prevention of Domestic VIolence Act was unconstitutional. The Appellate Division reversed this decision in June finding the statute constitutional.

The Supreme Court will be hearing oral argument on the issue today.  As a result, the final say on this issue will be coming soon.  Stay tuned. 

JON & KATE - ARBITRATE!

Last week news broke the Jon and Kate Gossellin, stars of the Lifetime television program “Jon and Kate Plus Eight,” were divorced in Pennsylvania. Judge Arthur Tilson entered an Order making it official.  To read previous blog entries on this celebrity divorce click here.

While many news articles reported that the couple used an arbitrator, few actually differentiated or explained the roll of the arbitrator. Sometimes divorcing couples use an arbitrator to decide issues in a divorce rather than go to the Court. While in New Jersey only a Judge can enter an Order actually divorcing a couple – hence dissolving the marriage, an arbitrator can decide almost any other issue, including alimony, child support, equitable distribution, college expenses, graduate school costs, medical expenses, counsel fees and tax-related issues. (The only caveat is that both parties must agree that the arbitrator has the authority to decide the issue.)

 

In NJ when it comes to custody and parenting time arbitration, there are specific requirements for this process that our Supreme Court has set forth in the Fawzy v. Fawzy matter. To read prior blog entries on this case and arbitration, click here or here.

Divorcing couples will often use an arbitrator in lieu of the Courts because it tends to be quicker and more efficient. Arbitration also provides the parties with the freedom to choose the person who will be deciding their case; can eliminate the necessity of multiple court appearances; and can address sensitive issues, such as unreported income – which couples would not want to make public.

Once a couple decides to use an arbitrator, the arbitrator acts similarly to a judge, deciding the issues of the case. The arbitrator will conduct a hearing (or trial) to decide the key issues and issue a decision. Once the arbitrator issues a decision the couple will go back to Court where a judge will enter the arbitrator’s decision and enter an Order divorcing the couple.

Arbitration can be expensive as you must pay the arbitrator, who is either an attorney or retired judge for his or her time. If arbitration is a consideration for you, its important that you factor in the cost of this process. Just as with anything, there are pros and cons to utilizing an arbitrator.