IN THE MATTER OF THE ESTATE OF AUGUSTIN NGWE MANDENG (CP-0192-2006, ESSEX COUNTY AND STATEWIDE) ( 2022 )


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  •                              NOT FOR PUBLICATION WITHOUT THE
    APPROVAL OF THE APPELLATE DIVISION
    This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the
    internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.
    SUPERIOR COURT OF NEW JERSEY
    APPELLATE DIVISION
    DOCKET NO. A-2898-19
    IN THE MATTER OF THE
    ESTATE OF AUGUSTIN
    NGWE MANDENG.
    Argued January 27, 2022 – Decided February 4, 2022
    Before Judges Alvarez, Haas, and Mawla.
    On appeal from the Superior Court of New Jersey,
    Chancery Division, Essex County, Docket No. CP-
    0192-2006.
    Anthony Scordo argued the cause for appellant
    Tebeyene Mamo (Lento Law Group, attorneys;
    Anthony Scordo, on the brief).
    Jeffrey T. Kampf argued the cause for respondent
    Estate of Augustin Ngwe Mandeng (Javerbaum
    Wurgaft Hicks Kahn Wikstrom & Sinins, attorneys;
    Jeffrey T. Kampf, of counsel and on the brief).
    PER CURIAM
    Plaintiff Tebeyene Mamo appeals from a February 26, 2020 order
    dismissing her claims against defendant, the estate of Augustin Ngwe Mandeng
    and its administratrix Elizabeth Mandeng, with prejudice. We affirm.
    We set forth the factual and procedural history in two prior appeals. In re
    Est. of Mandeng (Mandeng I), No. A-2143-07 (App. Div. Feb. 24, 2009) and
    Mamo v. Est. of Mandeng (Mandeng II), No. A-2577-13 (App. Div. Apr. 16,
    2015). Augustin1 was formerly employed at the United Nations (UN). Mandeng
    I, slip op. at 3. Plaintiff alleged she was his legal wife; however, Augustin was
    legally married to Elizabeth at the time he purportedly married plaintiff. Id. at
    3-6. After Augustin's death, Elizabeth was paid widow's benefits from his UN
    pension. Id. at 5.
    In Mandeng I we affirmed the Probate Part's declaration that Elizabeth,
    not plaintiff, was Augustin's lawful surviving spouse.      Id. at 9. However,
    plaintiff was not foreclosed from pursuing equitable relief in the Family Part on
    grounds of implied contract. Id. at 12 n.1. In due course, plaintiff filed a
    palimony complaint, which was dismissed because the Family Part judge was
    persuaded any judgment entered would be an advisory opinion because the
    estate lacked sufficient assets to satisfy the judgment. Mandeng II, slip op. at
    8-9. In Mandeng II, we vacated and remanded the order and directed the judge
    to hear the matter on the merits. Id. at 14.
    1
    We utilize Augustin and Elizabeth's first names because they share a common
    surname. We intend no disrespect.
    A-2898-19
    2
    Ultimately, the Family Part judge found plaintiff was entitled to palimony
    and granted her a judgment totaling $238,220.59. Plaintiff served the judgment
    on the UN Joint Staff Pension Fund and requested satisfaction of the judgment
    by having the fund recognize her as the surviving spouse, thereby directing the
    pension funds to her.     The fund denied the request, noting Elizabeth was
    independently entitled to the benefit as Augustin's widow. The fund cited
    Article 34 of its regulations:
    A widow's benefit shall . . . be payable to the surviving
    female spouse of a participant who was entitled to a
    retirement . . . at the date of his death, . . . if he was
    separated prior to his death, she was married to him at
    the date of separation and remained married to him until
    his death.
    Plaintiff filed a second complaint and order to show cause in the Probate
    Part seeking an accounting from the estate; removing Elizabeth as
    administratrix; holding Elizabeth personally liable for "defalcations from the
    [e]state . . . for breach of her fiduciary duties as administratrix", and ordering
    the estate to satisfy the palimony judgment and pay counsel fees. The parties
    entered a consent order in lieu of a subpoena for discovery from the fund.
    An attorney representing plaintiff vis-à-vis the fund, served the consent
    order on the fund, and according to the record requested "'an audit of the residual
    A-2898-19
    3
    [settlement]'[2] . . . including the 'date of the complete depletion of the residual
    benefit.'" The fund denied the request for discovery noting it "enjoy[ed] the
    same privileges and immunities as the [UN], and [was] not subject to the
    jurisdiction of [the Probate Part]." Notwithstanding its sovereign immunity, the
    fund explained that pursuant to its regulations, "a residual settlement is payable
    'if, upon the death of a participant . . . the total amount of the benefits paid to
    and on account of the participant is less than the participant's own
    contributions.'" It further explained that, upon retirement, Augustin elected to
    receive one-third of his pension benefit early in a lump sum, Elizabeth was being
    paid a widow's benefit, and no further funds or pension benefits remained
    payable.
    The trial judge held a hearing, at which the parties stipulated the evidence
    into the record. Plaintiff argued all the funds paid to Elizabeth belonged to the
    estate and should be used to satisfy the palimony judgment. Plaintiff asse rted
    Elizabeth never established an estate account and instead deposited the funds
    into her personal account violating her role as administratrix; therefore,
    Elizabeth was personally liable to satisfy the palimony judgment.
    2
    The residual benefit is separate from the widow's benefit and governed by
    Article 38 of the fund's regulations.
    A-2898-19
    4
    The judge made oral findings and recounted the history of the case and
    the evidence.       He concluded the evidence showed funds paid to Elizabeth
    constituted "a widow's benefit and these benefits were not payable [to the estate]
    as a residual benefit or residual settlement . . . [because] the residual settlement
    is only payable if upon the death of a participant, the total amount of benefits
    paid is less than the participant's contribution[s]." The judge noted Augustin
    contributed over $191,000 and received a lump sum payout of $399,000.
    Further, he concluded the funds paid to Elizabeth belonged to her because
    [t]he [UN] widow's benefit unlike the residual
    settlement . . . is specifically not payable to a . . .
    beneficiary designated by the participant but to the
    participant's surviving female spouse and clearly in the
    probate court, in the appellate court[,] and in the [UN]
    administrative agency hearing and decisions the widow
    here was determined to be [Elizabeth.]
    The judge also rejected plaintiff's claims on grounds of comity, noting the UN
    "as a foreign state, has [its] own set of rules and regulations with respect to the
    benefits that will be paid to its employees and designates how those benefits will
    be paid . . . . "
    Plaintiff cited Vasconi v. Guardian Life Insurance Co., 
    124 N.J. 338
    (1991), and argued the judge could fashion an equitable remedy by requiring
    Elizabeth to return the funds she received to the estate to satisfy the judgment.
    A-2898-19
    5
    However, the judge found Vasconi distinguishable, noting the case involved a
    divorce proceeding in which a deceased spouse's estate sought to recover life
    insurance proceeds improperly paid to the former spouse where the parties had
    entered a property settlement agreement and relinquished all claims to each
    other's property.    The judge noted here, Augustin and Elizabeth were not
    divorced, had no agreement relinquishing their claims, and Augustin had no
    power to change the beneficiary designation on his pension because "[t]he only
    power he had to make that change was to effectively and legally divorce
    [Elizabeth,] which he never did."
    The judge concluded Elizabeth "has properly been receiving payments
    pursuant to the [fund's] ruling and finding and application of the rules and
    regulations in the UN." He entered an order dismissing plaintiff's complaint.
    Plaintiff raises the following points on appeal:
    I.  THE LOWER COURT ABUSED ITS
    DISCRETION     AND    ABDICATED    ITS
    RESPONSIBILITIES BY REFUSING PLAINTIFF
    EQUITABLE RELIEF IN THE FORM OF A
    SURCHARGE AGAINST THE ADMINISTRATRIX
    AT LEAST IN THE AMOUNT OF PLAINTIFF'S
    PALIMONY     JUDGMENT   AGAINST   THE
    DECEDENT'S ESTATE.
    A.   The evolving public policy of this state, as
    implemented by statute and common law, is to
    honor the intent of the decedent with respect to
    A-2898-19
    6
    the distribution of non-probate assets, including
    employer pension plans. As such, a court of
    equity's duty is to ascertain that intent where the
    formalities of designating beneficiaries may not
    have been followed to the letter. This duty was
    not fulfilled here.
    B.     The lower court reversibly erred by relying
    solely on the lack of a divorce decree in
    ascertaining decedent's intent thereby (1)
    violating the law of the case doctrine completely
    ignoring the factual findings and legal judgment
    of the same-level Family [Part], and (2) ignoring
    other facts presented by plaintiff including
    decedent's designation of plaintiff as recipient of
    a residual settlement, later claimed by the [f]und
    [to] have been exhausted prior to decedent's
    death.
    C.     Extraordinary      circumstances      existed
    requiring the lower court to grant equitable relief
    to plaintiff, given the lack of fairness and lack of
    reviewability of the [f]und or the UN Appeals
    Tribunals' proclamations, which are (a) not
    subject to federal or state oversight, and (b) not
    entitled to international comity considerations.
    D.    The proper remedy rendered below should
    have been a surcharge by the [e]state against the
    defendant [a]dministratrix in the amount of the
    palimony judgment.
    Findings of fact by a judge sitting without a jury will not be disturbed on
    appeal unless "they are so manifestly unsupported by or inconsistent with the
    competent, relevant and reasonably credible evidence as to offend the interests
    A-2898-19
    7
    of justice[.]" Seidman v. Clifton Sav. Bank, 
    205 N.J. 150
    , 169 (2011) (alteration
    in original) (quoting In re Tr. Created by Agreement Dated Dec. 20, 1961, ex
    rel. Johnson, 
    194 N.J. 276
    , 284 (2008)). The judge's findings are binding on
    appeal if "supported by adequate, substantial, credible evidence." 
    Ibid.
     (quoting
    Cesare v. Cesare, 
    154 N.J. 394
    , 411-12 (1998)). However, an appellate court
    owes no deference to a trial judge's "interpretation of the law and the legal
    consequences that flow from established facts." Manalapan Realty, L.P. v. Twp.
    Comm. of Manalapan, 
    140 N.J. 366
    , 378 (1995).
    Having considered plaintiff's arguments pursuant to these principles, we
    affirm substantially for the reasons expressed by the trial judge. We add the
    following comments to further address plaintiff's claims that the judge should
    have crafted an equitable remedy, and that he improperly relied on comity and
    deferred to the fund's rules rather than satisfy the palimony judgment from the
    pension.
    "In the event that a court finds unjust enrichment, it may impose a
    constructive trust." Thieme v. Aucoin-Thieme, 
    227 N.J. 269
    , 288 (2016). The
    court must find "that there was some wrongful act, usually, though not limited
    to, fraud, mistake, undue influence, or breach of a confidential relationship,
    A-2898-19
    8
    which has resulted in a transfer of property." 
    Id. at 288-89
     (quoting D'Ippolito
    v. Castoro, 
    51 N.J. 584
    , 589 (1968)).
    In Seavey v. Long, the decedent participated in the Police and Fireman's
    Retirement System (PFRS). 
    303 N.J. Super. 153
    , 155 (App. Div. 1997). He had
    been supporting the plaintiff, his former spouse, pursuant to the terms of the
    parties' divorce agreement. 
    Ibid.
     He later remarried, and after his death, the
    trial court imposed a constructive trust on defendant's widow's benefit paid by
    PFRS to continue satisfying the decedent's obligations to the plaintiff because
    she was disabled and "needy." Id. at 155-57.
    We reversed and held as follows:
    While a court of equity is indeed empowered to
    achieve substantial justice between the parties and to be
    innovative in effecting this result, there is an additional
    principle that "equity follows the law," although this
    maxim is not slavishly followed. . . . [T]hat doctrine
    must yield if extraordinary circumstances or
    "countervailing equities" call for relief. . . . Because
    contractual and property rights of the parties are not to
    be infringed upon without an appropriate basis in either
    law or equity, we must examine whether defendant's
    pension benefits were correctly taken from her by the
    trial judge.
    [Id. at 156 (citations and internal quotations omitted).]
    We concluded the trial judge had taken the defendant's property by
    "impos[ing] an obligation on [her] to share her statutory widow's benefits and
    A-2898-19
    9
    to support the first wife" where defendant was not the wrongdoer. Id. at 157.
    There was "no authority for the court to accomplish this end. The court cannot
    merely designate the pension as subject of a constructive trust and provide for
    the first wife." Id. at 157-58. We reached the same conclusion in a different
    context, rejecting the imposition of an equitable remedy against a veteran's
    disability pension to satisfy his obligations to a former spouse because federal
    law preempted the States from treating the pension as marital property. Fattore
    v. Fattore, 
    458 N.J. Super. 75
    , 84-86 (App. Div. 2019).
    Here, the record is devoid of wrongdoing by Elizabeth as administratrix
    to justify the imposition of a constructive trust. Therefore, plaintiff's ability to
    satisfy the judgment was limited to claims made against Augustin's estate, which
    no longer had assets. Elizabeth's widow's benefits were not an asset of the estate,
    but rather her separate property as Augustin's legal spouse. For these reasons,
    the trial judge did not err in declining to employ an equitable remedy because
    doing so would usurp Elizabeth's lawful rights.
    International comity "is neither a matter of absolute obligation on the one
    hand, nor of mere courtesy and good will upon the other." O.N.E. Shipping,
    Ltd. v. Flota Mercante Grancolombiana, S.A., 
    830 F.2d 449
    , 451 n.3 (2d Cir.
    1987) (quoting Hilton v. Guyot, 
    159 U.S. 113
    , 163-64 (1895)). Rather, it is "the
    A-2898-19
    10
    recognition which one nation allows within its territory to the legislative,
    executive or judicial acts of another nation, having due regard both to
    international duty and convenience, and to the rights of its own citizens or of
    other persons falling under the protection of its laws." Gen. Elec. Co. v. Deutz
    AG, 
    270 F.3d 144
    , 160 (3d Cir. 2001) (quoting Hilton, 
    159 U.S. at 164
    ).
    In Shamsee v. Shamsee, the Supreme Court of New York, Appellate
    Division, denied a wife's claim to sequester funds from her husband's UN
    pension to satisfy a state court judgment and reversed the trial court's ruling
    holding UN officials in contempt for failing to comply with its sequestration
    orders. 
    428 N.Y.S.2d 33
    , 36 (N.Y. App. Div. 1980). The appellate court stated:
    [T]he pension fund is an organ of the [UN], subject to
    regulation by the General Assembly, and . . . its assets,
    although held separately from other [UN] property, are
    the property of that international organization. The
    funds which [the wife] seeks to sequester, therefore, are
    impervious to legal process under both section 2 of the
    convention [3] and section 288a of title 22 of the United
    States Code (the International Organizations
    Immunities Act).
    3
    The Convention on Privileges and Immunities of the United Nations, Art. II,
    §2, Feb. 13, 1946, 21 U. S. T. 1422, T. I. A. S. No. 6900, establishes the UN's
    immunity from legal process, and states: "The [UN] shall make provisions for
    appropriate modes of settlement of: (a) Disputes arising out of contracts or other
    disputes of a private law character to which the [UN] is a party. . . ." This treaty
    was acceded to by the United States on April 29, 1970. See Shamsee, 428
    N.Y.S.2d at 35.
    A-2898-19
    11
    [Ibid.]
    The federal statute cited in Shamsee reads as follows:
    International organizations, their property and their
    assets, wherever located, and by whomsoever held,
    shall enjoy the same immunity from suit and every form
    of judicial process as is enjoyed by foreign
    governments, except to the extent that such
    organizations may expressly waive their immunity for
    the purpose of any proceedings or by the terms of any
    contract.
    [22 U.S.C. § 288a(b).]
    Immunity issues aside, the UN enjoys foreign sovereign status. For these
    reasons, the trial judge did not err by applying the doctrine of comity and
    upholding the fund's decision to deny plaintiff the widow's benefit or attachment
    of the benefit to satisfy the palimony award.
    Moreover, a thorough review of the judge's findings reveals his ruling was
    also based on an independent review of the fund's provisions. The judge's
    conclusions that, pursuant to the fund's rules, there were no remaining funds
    available for payment of the residual settlement to plaintiff and she did not
    qualify as a widow are unassailable. Finally, to the extent we have not addressed
    an argument raised by plaintiff, it is because it lacks sufficient merit to warrant
    discussion in a written opinion. R. 2:11-3(e)(1)(E).
    Affirmed.
    A-2898-19
    12