This Is My Final Offer, Except When It's Not

This is my final offer!!!  Don't you just love the ultimatum, the line in the sand, the threat of Armageddon if capitulation is not immediately at hand?  I sure do.  Is it because I love to go to trial?  Don't get me wrong, I enjoy trial but that is not the reason. 

 

Seldom does it mean that a reasonable counter proposal won't be considered it it doesn't materially alter the terms being discussed.  Usually it means that your are getting pretty close to a settlement so that the proclamation can alert you and your client that now may be the time to do a deal.  In a recent case that I just settled, almost comically, each side probably sent 5 "final offers." 

 

And why is a final offer seldom a final offer?  Because 99% of all cases settle.  Because the system is geared to promote settlement.  Because before you go to trial, you will go likely go to custody and parenting time mediation, an Early Settlement Panel (ESP), mandatory economic mediation (sometimes several sessions), and an Intensive Settlement Conference (ISC) with the judge, or many.  Often, your first trial date is not a real trial date, but rather another day to bring the parties (and perhaps experts too) in to try and cajole or finesse and strong arm a settlement.  Even on your real trial date, perhaps before and often during the breaks of a trial, the judge will encourage settlement and/or the circumstances of how the trial is going may encourage settlement. 

 

So keep giving us your "final offers."  Sometimes, our client will accept them.  Other times, we will make a counter offer and await your next final offer until one day, the case will be settled or tried to conclusion.

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Eric Solotoff is the editor of the New Jersey Family Legal Blog and the Co-Chair of the Family Law Practice Group of Fox Rothschild LLP. Certified by the Supreme Court of New Jersey as a Matrimonial Lawyer and a Fellow of the American Academy of Matrimonial Attorneys, Eric practices in Fox Rothschild's Roseland, New Jersey office though he practices throughout New Jersey. You can reach Eric at (973)994-7501, or esolotoff@foxrothschild.com.

 

Want Your Day In Court? Think Twice.

Divorce filings seem to be at an all-time high and, to no surprise, the trial courts are feeling the pressure.  Documents filed with the court can get lost in the shuffle.  Although motions should be addressed within 24 days from the initial filing date, it can take months until the court actually makes a decision.  By then, the issues grow stale or even worse, they grow more complicated. Emotions blaze as time passes.  Many would argue that having your "day in court" is becoming somewhat of an illusion.   With this in mind, attorneys must be more creative and diligent in addressing issues in a case before they arise.  Leaving it to the court can make it worse, especially if the judge does not follow proper procedures in providing their decision and the judgment/order of the court.  If the court does it wrong, you may get your day in court - TWICE!

An example of this was discussed in the recently published Appellate Division case of Ducey v. Ducey, which I was involved in on the appellate level.  In Ducey, the parties engaged in a 14-day trial that involved three forensic experts.  Seven (7) months after the trial was over, the court issued a Judgment of Divorce that simply set forth the court's rulings.   A detailed decision was not attached to the Judgment.  Rather, the cover letter that enclosed the Judgment advised the attorneys that the "underlying decision would be sent shortly."  Three months later, the trial court issued a written opinion, but it didn't match the Judgment.  In fact, it wasn't even close.  For example, the weekly child support award was increased by 33%, the alimony amount was increased by 35%, the time period to pay alimony was lengthened, and the trial court's value of the husband's business was increased by more than 142%! 

On appeal, the argument was simple - it just didn't make sense.  The Appellate Division agreed and warned trial courts not to make light of entering final judgments without providing simultaneous, well-reasoned decisions to support those judgments.  To do otherwise deviates "from the fundamental due process at the expense of litigants," who are then forced to comply with court orders without knowing why the court entered the order in the first place. In addition, the judge's letter with the opinion directed that the attorneys put the "usual provisions" in the the amended judgment that the court directed to be filed.  As the Appellate Division noted, justifying reversal for this reason as well, is that there are no usual provisions.

Today, the Duceys have been separated for almost 6 years.   Within the next year, their divorce trial will start all over again, from scratch.  What do we learn from this?  As attorneys and litigants, we can't assume that "our day in court" will be the end-all-be-all.  In this case, they will have their day in court twice - not because the trial court erred on the merits - because the Appellate Division did not address the merits of the appeal.  Rather, there will be a new trial simply because the judge erred on the procedure in rendering a decision. 

SEEKING A SUPPORT MODIFICATION? FILE THAT CASE INFORMATION STATEMENT OR ELSE.

As we have blogged before, perhaps the most critical document in the New Jersey family law landscape is the Case Information Statement.  A document designed to provide the court, parties and legal counsel with a complete economic picture - income, expenses, assets and liabilities - the CIS, which is signed by the party under oath, can be used to address several issues including, but not limited to, alimony, child support and equitable distribution. 

Rule 5:5-2(a) requires the filing of a CIS in "all contested family actions, except summary actions" where there exists any issue as to custody, support, alimony or equitable distribution.  The rule also provides that a CIS may otherwise be required by Court Order or on motion of the court or other party. 

For the more specific purpose of this blog entry, Rule 5:5-4(a) provides that, when filing a motion in the family part for "the entry or modification of an order or judgment for alimony or child support based on changed circumstances", the motion must be accompanied by a copy of the prior filed CIS/statement(s) upon which support was originally determined and now sought to be modified, and a newly updated CIS.  This subsection of 5:5-4 concludes by providing that if the party seeking the modification establishes a "substantial change in circumstances", the court will then order the other party to file a copy of a current CIS.

Bringing us to the Appellate Division's newly unreported decision in Livingstone v. Daniel, wherein the Court found that the trial judge did not properly state a basis for his decision to modify child support after he terminated alimony following a plenary hearing.  As part of the alimony termination decision, the trial court directed the parties to submit their last 3 pay stubs, medical insurance information, and work related child care expenses for a child support calculation to be made.  After such information was submitted, the trial court issued a new order, without further briefing or oral argument, increasing child support based on the parties' gross weekly incomes, mom's net annual work-related child care expense, and the children's health insurance premiums.  Importantly, the Appellate Division found that the trial court's reliance on pay stubs in lieu of Case Information Statements was improper, since there was the full financial picture for both parties was lacking.  As a result, the trial court was directed to conduct further proceedings upon review of the parties' CISs.

Interestingly, the court also remanded as to whether dad was required to contribute to the children's private school expense, even though the parties' settlement agreement only referenced such contributions in relation to college.  The alimony termination was deemed a change in circumstances meriting new review on this issue, to which the trial court failed to perform the proper analysis/consideration of several factors in deciding that the settlement agreement controlled.  In addition to determining whether a child support modification was warranted based on CISs to be filed, the trial court, thus, was also required to consider private school contributions.

The scenario in Livingstone only serves to reiterate just how important filing that CIS for several reasons, as it is the complete financial picture that is critical to rendering a proper determination on issues of support, education contributions, and the like.

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Robert Epstein is a contributor to the New Jersey Family Legal Blog and a member of Fox Rothschild's Family Law Practice Group. Robert practices throughout New Jersey in all areas of family law and family law litigation. You can reach Robert at (973)994-7526, or repstein@foxrothschild.com.

Appellate Division Finds that Putting GPS in Spouse's Car was Not an Invasion of Privacy

As technology progresses, the use of it rears its head during divorce cases.  One such form of technology is the use of a GPS in a spouses vehicle.  In a reported (precedential) opinion decided on July 7, 2011, in the case of Villanova vs. Innovative Investigations, the Appellate Division affirmed a trial court's granting of summary judgment, effectively dismissing a husband's invasion of privacy claim.

In this case, the wife , in the midst of divorce proceedings, hired a private investigator to follow her husband.  The private investigator later suggested that the wife put a GPS device in the family vehicle driven by the husband and she did.  She later used the findings in the divorce case.  During the divorce case, the husband amended his divorce pleading to seek invasion of privacy damages against the wife.  He also tried to add the defendant's in this case, the private investigator as a defendant in the divorce case but the court would not allow that.  The husband ultimately abandoned his tort claim against the wife in their settlement but reserved his rights to pursue his claim against the private investigator.

The invasion of privacy claim in the case against the private investigator was ultimately dismissed because the court found that there is no expectation of privacy driving over public roads. 

The court noted that:

There is no liability under this tort theory "for observing [a plaintiff] or even taking his [or her] photograph while he [or she] is walking on a public highway, since he [or she] is not then in seclusion, and his [or her] appearance is public and open to the public eye." Restatement (Second) of Torts §652B comment c (1977). "A person traveling in an automobile on public thoroughfares has no reasonable expectation of privacy in his [or her] movements from one place to another." United States v. Knotts, 460 U.S. 276, 281, 103 S. Ct. 1081, 1085, 75 L. Ed. 2d 55, 62 (1983).

The result may have been different if the husband could have proven that he was tracked to a private or secluded location that was out of public view and in which he had a legitimate expectation of privacy but the husband could not prove that that had occurred.  In an unusual piece of writing for an appellate opinion, the court provided a hypothetical to illustrate the point. as follows:

The fact that such an eventuality could have occurred is not sufficient to establish a cause of action for the tort of invasion of privacy.

A simple illustration is helpful to our analysis. Suppose Mrs. Villanova placed the device in her husband's vehicle at 2:00 p.m. while the vehicle was parked in the driveway of the family home; then, at 2:30 p.m., plaintiff drove on public streets to a local convenience store, purchased a newspaper, and returned home in a matter of minutes; and then, at 3:00 p.m., either Mrs. Villanova had a change of heart and removed the device without her husband ever knowing about it, or, alternatively, he discovered the device and removed it himself. We do not think a tort of invasion of privacy would have been committed. Although the events here intermittently covered
about forty days, what happened was legally no different.

Now, should people going through a divorce take this as a green light to start placing GPS devices in their spouse's vehicle.  Perhaps not.  There have been some that have argued and some judges have found that that conduct would amount to domestic violence - perhaps harassment or stalking.  Of course, that begs the question of how the alleged victim could demonstrate the requisite fear or be alarmed, if the did not know of the placement of the GPS and similarly, how it would be stalking if the person did not know that the GPS was recording their movements.  

I have no doubt that there will be more to come on this.

Though NY Will Have Same-Sex Marriage, Governor Christie Says NJ Will Not

As we blogged yesterday, NY passed a law allowing same-sex marriage and divorce.  While I am sure that many were hopeful in NJ, Governor Christie swiftly dashed those hopes on Meet the Press today. In an AP story, found in the NY Post, Governor Christie said that he would not sign a bill allowing gay marriage.  This is even though many feel that the New Jersey Civil Union law is not the equivalent to marriage, as we have previously noted. 

I read yesterday that New York does not have residency requirements to marry, so one wonders whether New Jersey residents will cross the river to get married, and then, once married, will New Jersey Courts divorce them.  Since the New Jersey divorce statute applies to the dissolution of civil unions, it seems plausible.  Stay tuned. 

TEMPORARY REMOVAL DURING A REMOVAL LITIGATION - TACTICAL ADVANTAGE OR COMMON SENSE?

A New Jersey trial court recently held in the published (precedential) decision of McKinley v. Naters that it was appropriate under a given set of circumstances to allow for the pre-trial, temporary removal of a child to another state for what it described as “extended vacation purposes” to provide the child with a “reasonable opportunity . . . to experience living in the proposed new state prior to trial.”  When I read the court’s conclusion, which is briefly laid out on the first page of the Opinion, my first thought was the seeming tactical advantage that would inure to the parent seeking removal.   After a full review of the court’s conclusions and rationale, however, it seems that the interests of both parties were properly balanced so as not to provide leverage to one party over the other.    

The facts are relatively straightforward for a removal scenario.  The parties divorced in 2002 and the settlement agreement provided for shared residential custody of the child.  In May 2010, Mom filed a motion seeking to permanently relocate to Florida with the child.  She claimed that she and her present spouse sought to relocate there for employment reasons, the child would have greater educational opportunities in Florida, and he would “enjoy life” more in Florida than in New Jersey.  Dad opposed Mom’s motion and sought residential custody of the child.

A plenary hearing was scheduled to occur in August 2010 and, in the interim, the parties could attempt to mediate and conduct discovery.  A psychological expert was appointed by the court to perform a custody evaluation.  In June, Mom filed a motion seeking the court’s permission to “temporarily remove” the child from New Jersey to Florida for 4 weeks for “extended vacation” purposes, and so the child could obtain a “feel” for the new neighborhood in Florida.  Dad opposed the request.  Not surprisingly, each party claimed that the other’s position was nothing more than an effort to obtain an advantage in the litigation.

The court granted Mom’s request, but modified the time from 4 weeks to 2 weeks, also providing Dad with two weeks of such “extended vacation” in New Jersey.  The child’s age in this case – 15 years old – was of great import to the court in its decision, as well as the child’s capacity to reason.  The court found that, under every possible legal analysis in removal applications (including the Baures factors, factors for a change of custody analysis under N.J.S.A. 9:2-4, and N.J.S.A. 9:2-2), the child’s expressed preference was relevant to the court’s decision.   The court noted that none of the laws or cases cited prevent a child’s temporary removal from the jurisdiction for “legitimate purposes, particularly under court order.” 

As a result, the court found that its crafted resolution provided the child with a sensible, “reasonable opportunity” to experience life in both states under the care of each party prior to trial, rather than base any expressed preference on nothing more than speculation.  Since the child was 15, the court determined that he could inform the court of his preference during an “in camera” (in chambers) interview with the trial judge pursuant to Rule 5:8-6 of New Jersey’s Rules of Court.   The court also found its decision appropriate because it would not interfere with the child’s present schooling; Mom had no history of violating court orders or otherwise demonstrating a flight risk; and, by its resolution, Dad was provided with an “equitable opportunity” for the child to take an “extended vacation” in New Jersey as well during the pre-trial phase. 

Thus, the court’s decision was clearly fact-specific.  Had the situation involved a younger child, for instance, the court might have ruled differently.

Another Decision from the Appellate Division on the Consequences of Cohabitation on Alimony

As a follow up to my blog post of last week, this week the Appellate Division came down with yet another cohabitation decision. The case of Pizzuti v. Proctor was decided on March 31, 2011. In Pizzuti, the wife appealed from a decision wherein the trial court terminated her former husband’s alimony obligation of $100 per week on a finding of changed circumstances based on the wife’s cohabitation with an unrelated male.

At the trial level the husband submitted a myriad of proofs that the wife was cohabitating in support of his obligation to terminate alimony. His efforts were for naught however, because the fact that she was cohabitating went completely uncontested. Indeed, in response to the husband’s allegations, the wife stated as follows: "I will spare the Court the trouble of scheduling a plenary hearing because I admit that I do cohabitate with Mr. Argenzio at his home, located [in] Ramsey, New Jersey and have been since 1999." However, as I stated in my previous blog, proof of cohabitation is only half the battle. The next inquiry is whether, by virtue of the cohabitation, the wife was economically dependant on her new paramour. In New Jersey, the fact of economic dependence is presumed upon a showing of cohabitation, and it is incumbent the cohabitating spouse to prove otherwise.

To that end, the following facts were adduced at trial in support of the husband’s contentions: the former wife had increased her earnings of approximately $13,900 at the time of the divorce in 1998 to earning approximately $30,000 working part-time; she was receiving $900 per month of pension income from one of her former husband’s defined benefit funds; she admitted to $1,400 per month, attributable to Mr. Argenzio, which she alleged it would have cost her to rent an apartment in Ramsey. The former husband also established that his former spouse lived in two locations with Mr. Argenzio, a home in Ramsey, which is assessed at $472,800, and a condominium in Hollywood, Florida, purchased for $460,000, which has no mortgage, which they jointly owned. In addition, the husband showed that they have several jointly-titled bank accounts, that alimony checks were deposited on occasion in Mr. Argenzio's account, and they had at least one joint brokerage account. The husband also pointed out that the wife took a vacation in Italy in 2004; a cruise to Hawaii in April 2005; a vacation in the Caribbean in Spring 2006; a vacation in Napa, California; a trip to Aruba in 2007; and a vacation in New England in 2008.

In granting the husband’s application, the trial judge stated as follows:

…the key really is the marital standard. And I thought about granting a plenary hearing. And I had to look to see whether I felt that the defendant had made a strong enough case so that with some of the disputes of fact that are clearly in the record, are they sufficient to require a plenary hearing. And I think the answer is no.

There was, you know, with the amount of money that she's making herself, plus the pension, plus the other bank accounts, plus the credit from Mr. Argenzio, those things together I think certainly show that she is able to live at the marital standard without the alimony. So even though it was not an easy decision to come to, I did review the record on both sides and I am going to grant the application of Mr. Proctor to terminate his alimony obligation.

The Appellate Division agreed, ostensibly for the same reasons as expressed by the trial court. The Appellate Division seemingly found most compelling the fact that the wife and her paramour had developed a “marriage type” relationship, along with the economic dependence that typically accompanies it. Moreover, the Court found that the former wife’s marital lifestyle could be satisfied without the alimony - thereby obviating the need for payments from the former husband. By way of commentary on the issue, the court remarked that the trial judge was actually charitable to the wife in indicating that her present standard of living “satisfied” the prior lifestyle when the former appears to have surpassed the latter with the two residences that she now uses. The Appellate Division therefore affirmed the decision of the trial court terminating the former husband’s alimony obligations.

Can a landlord-tenant relationship terminate an alimony obligation based upon cohabitation?

It seems as though a wave of cohabitation cases has recently swept across the Appellate Division in New Jersey. And for good reason. While well-settled is the concept that a supported spouse’s cohabitation typically will constitute a change of circumstances sufficient to justify end of a supporting spouse’s alimony obligation, the nuances of the law can be quite involved. This can been seen from the Appellate Division’s February decision in the case of Wonderlin v. Wonderlin, on which Sandra Fava blogged. That holding came down to evidence of the times and frequency that an unrelated male came and went from a former wife’s home, which, the Appellate Division ruled, entitled a former husband to discovery on the issue of whether the wife was cohabitating.

While the comings and goings of an unrelated male can be one indicia of cohabitation, in the case of Okoshi-Wilson v. Wilson, the Appellate Division examined a different source to prove cohabitation: the wife’s earnings as compared to her expenditures. There, the husband moved for a termination of his alimony obligation on the basis of the wife’s cohabitation with an unrelated male.

It seemed, based on the proofs submitted, that the husband had always earned a significantly greater salary than the wife, with the wife only earning about $47,000 in 2008 after her alimony of $22,500 per year was considered, as compared to the husband’s $164,164 the year prior. Despite this fact, the wife was apparently living in a posh, three-bedroom Upper East Side apartment, which she clearly was unable to afford on her salary alone. As it turned out, also a tenant of the same apartment was an unrelated male by the name of Steven Macy. This revelation led to the husband’s application for a termination of his alimony obligations. During the hearing at the trial level, Okoshi admitted that she had been able to maintain her New York City residence, because she was Macy’s tenant, allegedly paying him only $135 per week in rent and household work such as watering the plants, purchasing food, and collecting the mail. She further testified that Macy and his daughter only stay at the apartment about five times per month. Okoshi had documents to support some of her assertions — a lease signed by her and Macy and receipts for rent she paid in cash. She denied any romantic involvement with Macy and said he does not support her in any way.

A review of Okoshi’s American Express statements told a different story, however. They showed that she charged $25,436.90 in 2008, an amount approximately equivalent to her total wages. Wilson suggested that the goods and services Okoshi acquired reflected a lifestyle inconsistent with her income and were indicative of the fact that she was receiving additional support from Macy. Specifically, the charges include: $2659.32 for airline tickets; expenditures indicative of travel to Las Vegas, including a stay at the Bellagio hotel; over $3000 in charges for a skin care and nutrition company; $320 spent at the Coach Store; and purchases from Whole Foods and Trader Joe's.

 

The trial judge did not believe Okoshi's testimony about her living arrangements, and he found she had concealed her address from Wilson to defeat his efforts to establish her cohabitation. In addition, the judge drew a negative inference based on Okoshi's failure to call Macy and her daughter to testify. Based on the spending patterns reflected on Okoshi's American Express bill, which the judge found to be inconsistent with that of a single mother forced to rent a bedroom in a New York City apartment, the judge concluded that Okoshi had "found alternate and substantial additional sources of income and/or support" and no longer required alimony. Okoshi appealed, stating that the finding of her cohabitation with Macy was unsupported by the record.

 

The Appellate Division began its analysis by examining the definition of cohabitation in the context of an alimony termination case. Namely, the Court stated:

 

Cohabitation is "a domestic relationship whereby two unmarried adults live as husband and wife." It is a "close and enduring" relationship that "requires more than a common residence, although that is an important factor." It is an "intimate relationship in which the couple has undertaken duties and privileges that are commonly associated with marriage"; these include, but are not limited to "living together, intertwined finances such as joint bank accounts, sharing living expenses and household chores, and recognition of the relationship in the couple's social and family circle." Cohabitation is more than a "mere romantic, casual or social relationship" but has "stability, permanency and mutual interdependence."

 

Based on the above legal backdrop, despite the overwhelming evidence of economic interdependence that the husband portrayed at the trial level, the Appellate Division concluded the trial judge did not address the nature of the relationship between Okoshi and Macy under the above standards. Rather, the judge simply found that their relationship was not that of a tenant and landlord. Accordingly, the Appellate Division remanded the case for further proceedings to determine the nature of the relationship between Okoshi and Macy.

 

Thus, while a spouse’s earnings in comparison to their expenses is certainly relevant to the issue of cohabitation, it is but one piece of this very complicated and nuanced puzzle.

Parenting Time via Skype - Virtual Visitation Is Here

With the advancements in technology, one of the buzz words we have begun hearing about "virtual visitation."   In fact, recently, Julie Ganz, an associate in our Chester County, Pennsylvania office did a piece on our Pennsylvania Family Law Blog on "virtual visitation" and how it is being approved for use in a number of states.  Clearly, with cameras on computers, video chatting, Skype, Face Time on Apple products and the like, the quality of parenting time that a non-custodial parent can have with their children is improved.  Put another way, it seems that being able to actually see children, while not in person, and to have them see their parent, is still better then a phone call, email or text.

At least one court in New Jersey has followed the trend.  Specifically, in Margueron v. Baik an unreported Appellate Division opinion decided on March 21. 2011, a trial court's Order requiring the mother to cooperate with establishing a SKYPE account to enable the father to see and communicate with his child by way of the internet. was upheld.  The facts in the opinion are scant but what is known is that the father was returning to France.  The order also provided that father  have extended parenting time with the child in August each year, one additional week each year, and extended time at Christmas in alternate years. The Appellate Division held that "The judge crafted a schedule that allows communication between father and child that accounts for the geographical distance between them." 

While in this case, the issue was one of distance, the question remains as to whether distance should be a prerequisite to using the new technology, or whether it should be used in every case, no matter the distance.  A complaint, if not painfully sad lament from many non-custodial parents is that they used to get to see their children every day but now they can go days without "seeing" them.  While "virtual visitation" will unlikely ever be a replacement for the real thing, if available, why not use it?  We shall see what the court's do with this going forward.

Appellate Division Upholds the Definition of Maternity in the Age of Reproductive Technology

Typically, when people think of a parentage a dispute, it is the father’s paternity which is at issue. However, with emerging science that paradigm is shifting. Specifically, with assisted reproductive technology on the rise, interesting questions crop up regarding the both of the child’s legal parents. This is because when a surrogate is used, hospital and state birth record procedures mandate that the surrogate’s name is put on the original birth record as the child’s mother simply because she gave birth. If the surrogate is married, her husband’s name is also normally put on the original birth record as the father. Therefore, the surrogate must cooperate in the establishment of parentage as to the intended parents in some sort of legal proceeding, either before or after birth, depending on the state.

This new facet of the law was explored in New Jersey in the Appellate Division’s approved for publication opinion of In the Matter of the Parentage of a Child by T.J.S. and A.L.S., ___ N.J. Super. ___ (App. Div. Feb. 23, 2011). There, the Appellate Division whether the New Jersey Parentage Act (Parentage Act), N.J.S.A. 9:17-38 to -59, recognizes an infertile wife as the legal mother of her husband's biological child, born to a surrogate, and, if not, whether the statutory omission violates equal protection by treating women differently than similarly-situated infertile men, whose paternity is presumed under New Jersey law when their wives give birth during the marriage. The Appellate Division held that the Parentage Act did not apply to maternity under the circumstances presented by this case and the differing treatment of infertile husbands and wives was not a constitutional violation.

The plaintiffs in this case, T.J.S., the biological father, and A.L.S., his wife were infertile as A.L.S. was unable to carry a child to term. As a result, the husband and wife resorted to reproductive technology to assist them in having a child. They opted to have a child with the help of a surrogate. This involved arranging for the in vitro fertilization (IVF) of an ovum furnished by an anonymous donor using the sperm of T.J.S. The result was two human embryos which were implanted into a surrogate, A.F., who was to carry the child to term. The embryos were biologically related to the donor of the ovum and to T.J.S., but not to the wife or the surrogate.

Before the birth, the husband and wife sought to be declared the child’s father and mother under the Parentage Act, and requested a “pre-birth order” that required their names to be listed on the child’s birth certificate as the child’s parents. The husband and wife specifically rejected adoption because it would extend the process, during which time the child’s legal status would be in limbo. The trial court ordered that the birth certificate that was to be placed on file for the child was to reflect T.J.S. as the father and A.L.S. as the mother, on the condition that that the surrogate, A.F., surrender her rights to the child 72 hours after giving birth. The child, T.D.S., was born on July 7, 2009. Three days later, the surrogate relinquished all parental rights to the child.

Shortly after the child’s birth, the State Registrar learned about the order of the trial court and filed a motion in the trial court to vacate the listing of A.L.S. as the mother on the child’s birth certificate. The trial court granted that motion.

The husband and wife appealed. They argued that because the Parentage Act, presumptively conferred paternity upon a husband where the child was born to the wife during marriage, or automatically under the law, where the wife is artificially inseminated using the sperm of a donor, it should be read in a gender neutral fashion so as to apply to the infertile wife as well. They further argued that if the statute is not construed as such, it would be unconstitutional on its face because infertile married men and women are treated differently under the law.

The Appellate Division began by examining the history of the statute. While noting that the presumption, that a man is the father of a child born to his wife, extends to a husband who consents to his wife being inseminated with donor sperm under the supervision of a licensed physician, the Court noted that the same presumption is specifically not extended to a wife whose husband, while married, fathers a child with another woman. However, this mother-child relationship can be established with relative ease through adoption. Thus, the Appellate Division concluded, that the plain language of the Act, only provides for a declaration of maternity as to the biologically or gestationally-related female and requires adoption to render A.L.S. the mother of T.D.S.

Because the Court concluded that Parentage Act could not be interpreted in a gender neutral manner, the Appellate Division turned to the question of whether a gender-based classification for infertile married women and infertile married men was unconstitutional. After expounding upon New Jersey’s equal-protection jurisprudence, the Appellate Division concluded that the gender-based classification was not unconstitutional because it was only applied to married husbands as the purpose was to address scenarios where there is a strong likelihood that the man is the biological father of a child. Indeed, the legislature’s intent behind the enactment of the statute was to establish paternity “to facilitate the flow of benefits from the father to the child" – i.e. to ensure that the man would not be able to evade his financial obligations to a child born during the marriage. Moreover, the Court reasoned that the language of the statute makes clear that A.L.S. cannot be the presumptive legal mother of the child born to the surrogate simply because she is not the biological mother of the child. Rather, the child is biologically related to T.J.S. and the anonymous ovum donor. A presumption of motherhood under these circumstances would therefore be contrary to the Legislature’s intent behind the enactment of the statute.

In so concluding the Court re-examined the seminal New Jersey case of In re Baby M, 109 N.J. 396 (1988). There, the Supreme Court specifically declined to extend the statute’s applicability to the circumstance at hand:

The Parentage Act's silence . . . with respect to surrogacy, rather than supporting, defeats any contention that surrogacy should receive treatment parallel to the sperm donor artificial insemination situation. In the latter case the statute expressly transfers parental rights from the biological father, i.e., the sperm donor, to the mother's husband. . . . Our Legislature could not possibly have intended any other arrangement to have the consequence of transferring parental rights without legislative authorization when it had concluded that legislation was necessary to accomplish that result in the sperm donor artificial insemination context.

Finding the reasoning of the Supreme Court to be sound, the Appellate Division thus found that because the statute already withstood judicial scrutiny in the face of an equal protection challenge, and because the lack of Legislature response to the issues raised by the Supreme Court’s decision in In re Baby M, the plaintiffs’ argument that the Parentage Act should be re-drafted to address their specific situation was rejected. The Court further reasoned:

…paternity attaches to the infertile husband because of the sperm donor's lack of temporal, physical, and emotional investment in the child's creation. This stands in sharp contrast to the surrogate mother whose parental rights are deemed worthy of protection and thus stand in the way of the infertile wife's claim to automatic motherhood.

While the Appellate Division did not “deny the intrinsic societal worth, emotional
appeal, and compelling logic of granting A.L.S. parenthood to the child, T.D.S., provided the gestational carrier's rights are protected during the statutory seventy-two hour ‘window’ period,” it noted that the fact remains that “the means chosen by the Legislature to create that status in this instance remains adoption, rather than by operation of the Parentage Act.” The Court further remained satisfied that the that the complained of disparate treatment is not grounded in societal notions of parenthood, but rather in the innate reproductive and biological differences between men and women, necessitating in the case of an infertile wife, the introduction of a birth mother whom the law cloaks with superior protection. Thus, given the State's valid interest in identifying the father more easily when the child is born during the marriage for child support purposes, and its equally sound interest in requiring more than a shared intent before legally changing the parental relationship between parent and child, the Court concluded that the distinctions drawn by the Legislature in the Parentage Act are constitutional.
 

More on when a settlement is a Settlement

A recent case in which one party sought to enforce a purported settlement demonstrates the difficulties that arise when there is no signed agreement. In the unreported ( non-precedential) case of Galdo v. Hagarty, the parties were both represented by counsel during a dispute about the payment of child support and college expenses for one of their children. The father had filed an appeal of an order which required him to pay a percentage of college expenses and the mother filed an application for enforcement of the order. Thereafter, the parties agreed to explore a settlement and proceeded to negotiate through their counsel. Over a course of months the attorneys exchanged correspondence as well as emails. The mother received copies of many of the communications. 

Subsequently, the mother’s attorney faxed to the father’s attorney a proposed settlement. Father’s attorney then emailed a revised agreement  the next day. Twelve minutes later, mother’s attorney sent an email agreeing to the proposal and asking that Father’s attorney confirm that there was a settlement. Approximately an hour later, Father’s attorney sent a confirming email.    Father then took no further action on the appeal and it was later dismissed. Father then made an application to terminate child support for one of the children, which was not opposed by the mother.

 

Several months later,  the mother made an application to vacate the order terminating the child support, and enforcing the college expenses order which was the subject of the earlier appeal and settlement. She argued that there had been no settlement agreement that was reached. The father replied that there was in fact a settlement which was evidenced by the communications between the lawyers as well as the conduct of the parties after those communications. The father made a cross application for enforcement of the settlement agreement. The trial judge denied the father’s application for enforcement of a settlement and enforced the earlier order which required the father to pay a percentage of the college expenses.

In its decision in which it reversed the trial court for failure to hold an evidentiary hearing, the Appellate Division discussed what types of communications between counsel can give rise to a settlement. There does not always need to be a comprehensive signed agreement to constitute a settlement, and in fact there are circumstances in which oral negotiations can evolve into a settlement. In this case, the primary question was whether mother’s attorney had the authority to bind her. Mother said he did not. The court noted that there was no question that she understood that their communications were made with the intent to resolve their matter and moreover, that she was aware of and understood that her attorney was communicating with father’s attorney. The court also noted that stipulations that are made by attorneys when acting within their scope of authority are enforceable against clients.

 

This case emphasizes the importance of clear attorney client communication and the need to take extreme care when in settlement negotiations. While email communications have certainly made life easier in many respects, it is critical for lawyers and their client to have a clear understanding of what is acceptable to the client for purposes of settlement and to obtain clear authority prior to representing that a settlement has been reached. Clients have an obligation to make sure that they clearly confer their position to the attorney. Similarly, attorneys have to make sure that they are communicating only what their clients have authorized.

READ AARON WEEM'S POST ON SOCIAL MEDIA EVIDENCE

Aaron Weems is an attorney in our Warrington (Bucks County), Pennsylvania office and editor of the firm's Pennsylvania Family Law Blog wrote an excellent post entitled  Social Media Evidence.  We have blogged about the use of evidence from social networking sites on this blog in the recent past.  We have also noted news stories on this topic.

Aaron's topical posts discusses how evidence from social media sites turns up in family court.  We have used posts on Facebook, MySpace, LinkedIn and other places, as well as emails, text messages for different purposes in our case. 

People must remember that what they put on the internet may be there forever.  People must also be careful about the types of things that they put in emails and texts, where the detachment may allow people to be more bold in their statements.  Moreover, as was a problem in a recent case, while the client did not have a Facebook account, his girlfriend did and she did not hesitate to post the details about her relationship.  Needless to say, that enraged his wife and made her disbelieve many things that he said. 

CAN MY LAWYER AGREE TO A SETTLEMENT ON MY BEHALF? MAYBE!

A question that sometimes arises is whether an attorney can agree to a settlement on behalf of their client.  In an unreported (non-precedential) Appellate Division opinion released on April 13, 2010  in the case of Sweeney v. Sweeney, the court answered that question with a resounding maybe.

In this case, the wife alleged that on the night before trial, the parties' attorneys had "intense" settlement negotiations that lead to a resolution of all issues except for a section of the agreement entitled "General Mutual Releases."  On the following day, the husband appeared without his lawyer and disputed that there was a settlement.  The divorce was put through on that day but not the settlement.  Rather, the wife filed a motion for enforcement of the agreement reached between counsel.  Despite the fact that there were conflicting certifications, her motion was granted. 

The Appellate Division reversed the matter for a plenary hearing to determine whether the husband actually vested his attorney with the authority to bind him to a settlement.  Citing the general from the reported decision of Amatuzzo v. Kozmiuk, governing the scope of an attorney's authority to bind his or
her client to a settlement agreement, the Appellate Division noted:

The general rule is that unless an attorney is specifically authorized by the client to settle a case, the consent of the client is necessary. Negotiations of an attorney are not binding on the client unless the client has expressly authorized the settlement or the client's voluntary act has placed the attorney in a situation wherein a person of ordinary prudence would be justified in presuming that the attorney had authority to enter into a settlement, not just negotiations, on behalf of the client.  Thus, in private litigation, where the client by words or conduct communicated to the adverse attorney, engenders a reasonable
belief that the attorney possesses authority to conclude a settlement, the settlement may be enforced. However, the attorney's words or acts alone are insufficient to cloak the attorney with apparent authority.

So just because you think your case is settled does not mean it is really settled. 

EQUITABLE DISTRIBUTION - IT DEPENDS

There is no such thing as a normal or typical divorce, every case is different. Sometimes a case I expect to be difficult ends up being easy, while other straightforward cases can sometimes become quite challenging. Equitable distribution is no exception. Different clients have different assets (and debts) to divide – homes, retirement accounts, IRAs, 401(k), Keogh plans, businesses, vacation homes, time shares, art, jewelry, yachts, trusts, and the list can go on and on.   The starting premise is that assets that were owned prior to the marriage are not subject to equitable distribution. However, if that asset is commingled with marital assets it can lose that identity and be subject to equitable distribution. Obviously, this standard can create disagreements with both parties attempting to exclude their assets, but include their former spouse’s assets. 

Recently in an unpublished Appellate Division decision, Mekhail v. Mekhail, App. Div. decided February 2, 2010, the Appellate Decision reviewed a judgment involving equitable distribution and alimony issued following a trial. In Mekhail, plaintiff-wife sued defendant-husband for divorce on October 9, 2007.  The case was tried and judgment was entered on November 21, 2008.  Defendant appealed, arguing that the trial judge erred by: (1) failing to make adequate findings of fact respecting alimony; (2) arbitrarily awarding plaintiff 25% of defendant's retirement account; and (3) directing that each party remain responsible for their own credit card debt.  At trial, plaintiff sought to exclude an IRA account with a $15,000 balance, a retirement account with an $18,000 balance, and a Vanguard account with a $36,000 balance. Plaintiff alleged that these accounts were premarital and not subject to equitable distribution. Meanwhile, defendant had a 401(k) account with a $50,000 balance. Because sufficient evidence was presented to the trial court about the plaintiff’s accounts being premarital, they were not subject to equitable distribution. Yet, the trial judge ordered defendant to give 25% of his 401(k) to plaintiff as part of equitable distribution. Of their joint assets, defendant received about $137,500 and plaintiff received about $112,000.  Given the facts, the Appellate Division did not find the trial judge decision arbitrary and affirmed the decision and equitable distribution. 

 

 Mekhail is an excellent example of how various assets can be subject (or not be subject) to equitable distribution. That is why when people ask about equitable distribution, the only thing I can really say is – “it depends.”

CHANGE OF RESIDENTIAL CUSTODY- WHAT DOES IT TAKE?

When to seek change of residential custody can be a difficult and costly decision to make. Obviously, when the safety and well-being of a child is in question, efforts must be made by the non-residential parent to seek custody (even if temporary) of the child. In a recent unpublished decision, Gorski v. Young, Appellate Division, Docket No.: A-2707-08T3m, decided January 8, 2010, the Appellate Division affirmed the decision of the trial court, when it decided if a ten-year old boy was in danger with his mother who had residential custody. In this case, Gregory Young filed a motion for a change of residential custody of the parties’ ten-year old son, Brian (fictitious name). Gregory alleged that Brian’s mother, Angel Gorski, was too mentally unstable, which resulted in Brian receiving “tardies” from school and culminated in an alleged suicide attempt by Angel – a fact Angel denied. Gregory’s motion was denied without a plenary hearing.

Gregory appealed and the Appellate Division remanded with an Order for the trial court to conduct a plenary hearing. At the hearing, Gregory presented witnesses and the judge ordered a mental health assessment of the parties and Brian. The assessment was admitted into evidence over Angel’s objections because she did not have an opportunity to cross examine the expert. The trial court judge ruled that notwithstanding the “tardies” and alleged shortcomings of Angel, there was neither a danger to Brian, nor a change of circumstance warranting change of residential custody. Gregory appealed a second time. On appeal the Appellate Division ruled that because of the expertise of family law judges they would not second guess the findings and judge’s sound discretion. The Appellate Division also noted that although harmless error, the parties should have had the opportunity to cross examine the expert’s mental health assessment.  

This case exemplifies the tough decisions parents have to make when seeking custody. Unfortunately, even when parties think they are acting in the child’s best interest, a court may see it differently.   That is why it is imperative for an attorney to advise their clients of all the potential outcomes when they go to court for custody issues. Any parent facing this decision must examine it from all aspects and ensure they are utilizing an attorney with knowledge and experience in this area.  

SUPREME COURT DECISION IN KAY V. KAY EXPECTED TO BE RELEASED ON 1/6/10

Previously, I blogged on the Appellate Division's reported (precedential) decision in Kay v. Kay.  The New Jersey Supreme Court granted Certification and the New Jersey Judiciary web site advises that the decision will be released on January 6, 2010.  

To reiterate what this case is about, the Appellate Division held that when the estate of a spouse who died while an action for divorce is pending presents a claim for equitable relief related to marital property, the court may not refuse to consider the equities arising from the facts of that case solely on the ground that the estate may not assert equitable claims against the marital estate sounding in constructive trust, resulting trust, quasicontract or unjust enrichment. In that case, the husband died basically penniless and the wife had assets in excess of $650,000 at the time.
 

Check back soon for a post on the Supreme Court's decision.

DOMESTIC VIOLENCE AND NEW LAW ENFORCEMENT PROCEDURES

 

When there is an act of domestic violence there is usually (and hopefully) a police report detailing the alleged incident. But what happens when the police officer is the perpetrator of the domestic violence? Well, New Jersey has just issued a new model police department policy for handling domestic violence incidents that involve law enforcement officers. The new policy would apply to all municipal police departments, as well as state and county law enforcement agencies.

According to long-standing New Jersey Attorney General Directives, if a law enforcement officer is found to have committed an act of domestic violence, that officer will have their weapons seized. (Directives 2000-3 and 2000-4). The new model policy is designed to ensure that police departments have in place clear guidelines when investigating domestic violence complaints involving their own officers. The new policy attempts to ensure a thorough fact-finding process that is fair to both domestic violence victims and the accused officers by incorporating the involvement of police chiefs and county prosecutors. The new policy also attempts to prevent any perceived intimidation or bias during investigations.

 

Law enforcement officers have a reputation of protecting one another, no doubt a result of working a dangerous job where they depend on one another for their safety. This type of camaraderie can no doubt foster a public perception that law enforcement officers would be biased during the course of an investigation of one of their own.

The model policy not only addresses remedial steps, but also preventative steps that law enforcement agencies can take to detect and prevent domestic violence, including: background investigations for new employees that would screen out candidates with histories of domestic violence or sexual assault; psychological examinations of all candidates for law enforcement positions and regular annual training on domestic violence issues and the impact of domestic violence within police departments; and supervisors would be trained on how to recognize early warning signs of domestic violence behavior such as excessive or increased use of force on the job, deteriorating work performance, or alcohol/drug abuse.

The new model policy also details incident response protocols, reporting and documentation protocols and recommends that any allegations of domestic violence offenses by high-ranking law enforcement officers - police chiefs or police directors -- be referred to prosecutor’s offices for oversight. While these responses are helpful to law enforcement officers, the new model policy is important if an attorney is involved in the representation of a party where one of the parties is a law enforcement officer. The integrity of a police report at trial or a hearing will be measured by the testimony of the police officer and the protocols that were taken during the investigation. If protocols were followed, under this new policy the police report could be given greater weight and bolster the testimony. If protocols were not followed, the police report and testimony could be found less credible.