IN THE MATTER OF THE ESTATE OF MILDRED SUESSER(311916, HUDSON COUNTY AND STATEWIDE) ( 2017 )


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  •                        NOT FOR PUBLICATION WITHOUT THE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-0098-16T2
    IN THE MATTER OF THE ESTATE
    OF MILDRED SUESSER, deceased.
    _____________________________
    Submitted October 18, 2017 – Decided November 29, 2017
    Before Judges Currier and Geiger.
    On appeal from Superior Court of New Jersey,
    Chancery Division, Hudson County, Docket No.
    311916.
    Mariniello & Mariniello, PC, attorneys for
    appellants Linda Bickhardt and Anna Sheftall
    (Joseph R. Mariniello, on the brief).
    Levine DeSantis, LLC, attorneys for respondent
    Sandra Pine (Steven D. Grossman and Peter
    Nichols, on the brief).
    PER CURIAM
    Linda Bickhardt and Anna Sheftall appeal from that portion
    of a July 29, 2016 order declaring a July 22, 2013 deed to be
    valid.1     Appellants contended the deed was fatally defective and
    the product of undue influence.             Despite these contentions, the
    trial court declared the deed valid.              After a careful review of
    1
    The parties do not appeal the remaining aspects of the order.
    the record and applicable principles of law, we vacate the trial
    court's determination that the deed was valid and remand for
    further proceedings.
    I.
    Following the death of her husband, decedent Mildred Suesser
    was the fee simple owner of a condominium unit (the Apartment 2)
    located in West New York, New Jersey. On January 5, 2012, decedent
    executed a deed prepared by attorney Maria I. Lewie conveying her
    ownership interest in the Apartment to herself and Sandra Pine as
    tenants in common.     Approximately one and one-half years later,
    Lewie prepared a "correction deed" (the 2013 Deed) for the purpose
    of conveying the Apartment to decedent and Pine as joint tenants
    with a right of survivorship.    Although the 2013 Deed would have
    affected Pine's undivided one-half interest in the property, it
    identified decedent as the sole grantor.        However, when it was
    executed on July 22, 2013, it was signed by both decedent and
    Sandra Pine. On the same day they executed the deed, both decedent
    and Pine executed a seller's residency certification/exemption
    form.   They also executed identical affidavits of consideration.
    The seller's residency certification/exemption form listed both
    2
    Because the parties refer to        the   condominium   unit   as   the
    Apartment, we will do likewise.
    2                               A-0098-16T2
    decedent and Pine as the sellers.         Similarly, the affidavit of
    consideration signed by Pine identified her as a grantor.
    On January 28, 2016, Hudson County Protective Services filed
    a guardianship application to adjudicate the mental capacity of
    decedent, who they alleged was a vulnerable adult. The application
    sought the appointment of a limited guardian to manage her affairs.
    On March 7, 2016, letters of temporary guardianship pendente lite
    were issued.      Unfortunately, decedent died on March 22, 2016,
    during the pendency of that action.
    Decedent left a June 13, 2014 Will (the Will).             The Will
    names Linda Bickhardt and Anna Sheftall as co-executors of the
    estate.   The Will devises and bequeaths one-third of the residuary
    estate    to   decedent's   niece,   Evelyn   Beauregard,   one-third    to
    decedent's niece, Sandra Pine, and one-third to the United States
    Holocaust Memorial Museum.
    The Will also contains an in terrorem clause, otherwise known
    as a no-contest clause, which provides that if any beneficiary
    contests the probate or validity of the Will, "then all benefits
    provided for such beneficiary shall be revoked and such benefits
    shall pass" to the remaining residuary beneficiaries in proportion
    to their respective shares.
    3                            A-0098-16T2
    Beauregard served as decedent's caregiver for many years,
    residing with her in the Apartment.       Beauregard continued to live
    there after decedent's death.
    On March 29, 2016, Pine filed a caveat against the Will.             On
    May 18, 2016, Pine filed a three-count verified complaint seeking
    appointment of a temporary administrator (count one), a judgment
    declaring the Deed valid, creating a joint tenancy with a right
    of survivorship (count two), and removal of Beauregard from the
    Apartment (count three).      On June 3, 2016, the court issued an
    order to show cause why judgment should not be entered: (1)
    appointing a temporary administrator for the Estate; (2) declaring
    the Deed valid and enforceable; (3) declaring that upon decedent's
    death on March 22, 2016, ownership of the Apartment transferred
    by operation of law from decedent and Pine to Pine as the surviving
    joint tenant; (4) declaring that Pine has sole individual title
    to the Apartment; (5) granting Pine possession of the Apartment;
    and   (6)   ordering   Beauregard   to   vacate   the   Apartment     unit.
    Bickhardt and Sheftall filed an answer and counterclaim.                 The
    answer did not assert undue influence as an affirmative defense.
    On May 27, 2016, Bickhardt and Sheftall filed a verified
    complaint for probate of the Will in solemn form, appointing them
    co-executors of the Estate, and setting aside the caveat filed by
    Pine.   On June 3, 2016, the trial court issued an order to show
    4                               A-0098-16T2
    cause why judgment should not be entered: (1) probating the Will
    dated June 13, 2014; (2) issuing letters testamentary to Bickhardt
    and Sheftall as co-executors; (3) setting aside the caveat filed
    by Pine; and (4) in the alternative, appointing Bickhardt and
    Sheftall as temporary co-administrators, to serve without bond.
    Pine filed an answer and separate defenses on July 18, 2016.
    During         the        probate    proceeding,         appellants         filed
    certifications       of    Sheftall,     Bickhardt,     Gary   M.     Lachman,      the
    attorney who drafted the Will, and Alexander L. Locatelli, an
    attorney who witnessed the execution of the Will.                     None of these
    certifications addressed the issue of alleged undue influence
    relating to the 2013 Deed.
    Both    orders       to    show   cause   stated   that    the    court     would
    entertain argument, but not testimony, on the return date, unless
    the parties were advised to the contrary before the hearing.                        The
    parties were not advised prior to the hearing that the court would
    hear testimony that day.
    Appellants relied, in part, on the pleadings and reports
    filed   in    the     guardianship       action.        The    certification          of
    psychologist Peter Economou, Ph.D, opined that decedent suffered
    from "significant functional impairment and lack[ed] the cognitive
    functioning to make decisions."                His findings were based on an
    evaluation performed on January 6, 2016.                We note, however, that
    5                                    A-0098-16T2
    decedent's Will, which appellants sought to probate, was executed
    on June 13, 2014, more than ten months after the deed was executed.
    Notably, while Pine is a beneficiary of the Will, appellants do
    not allege that the Will was the product of undue influence.
    Appellants contend the correction deed came about after Pine,
    not decedent, contacted Lewie and informed her that decedent, who
    was by that time residing in an assisted living facility, wanted
    to change title to the Apartment from tenants in common to joint
    tenants with the right of survivorship.
    Pine filed two certifications authored by Lewie, the attorney
    who drafted both deeds, in support of her claim that the 2013 deed
    was valid.   In her certifications, Lewie described her actions and
    encounters with decedent.     In particular, she related the facts
    surrounding the preparation and execution of the 2013 Deed in
    considerable chronological detail.
    The opposing orders to show cause were heard by the trial
    court on July 29, 2016.     Appellants did not have the opportunity
    to conduct any discovery.    When asked by the judge whether there
    was an intent to take testimony, even if not that day, counsel for
    Bickhardt and Sheftall answered, "there was not intent for me to
    have testimony taken . . . ."     When later asked by the judge if
    he intended to take testimony from the two witnesses who were in
    the courtroom, counsel again answered in the negative.    The judge
    6                         A-0098-16T2
    subsequently asked counsel, "you want me to decide the case based
    on the papers and your arguments today, is that accurate[?]"
    Counsel answered, "That's correct, that's what I'm seeking."
    Later during oral argument, however, counsel stated:          "I
    don't think that issue can be settled at this point in time without
    a factual plenary hearing." When confronted by the judge regarding
    this statement in light of what he stated earlier, counsel stated:
    No, I – I'm telling you that I think your
    resolving today may be a determination that
    there is more information that you need
    regarding the deeds prior to you making a
    decision. That's all I'm saying to you, I'm
    not saying the Court can't decide.
    And the point of the matter is there's a
    legal question. Why didn't – if they were all
    there, why didn't Mrs. Pine and Ms. Susser
    simply sign as grantors and grantees, and then
    there would be no question that title could
    have been transferred.    You can't give what
    you don't have in real estate. In fact, you
    can't do that in life. But that's my argument
    here.
    Appellants contend on appeal that any indication to the trial
    court that it could render a decision without hearing testimony
    was limited to their affirmative claims.   They now argue that they
    did not waive their right to discovery and a plenary hearing
    regarding their claim that the 2013 deed was the product of undue
    influence.
    7                          A-0098-16T2
    They further claim the submissions from the guardianship
    action and the facts surrounding the preparation of the 2013 deed
    established       a     confidential        relationship    and       suspicious
    circumstances.        In that regard, their attorney stated:
    Your Honor, this – when [Mr. Grossman] says
    there's no evidence of undue influence, that
    bespeaks a[n] ignorance of the past file you
    had before you. There's no question that both
    [Beauregard] and Pine were in a position of
    il – influence, and were in a position of
    trustworthiness.
    And ther[e]'s no question, according to
    Mr. Joya, that there was in some way a
    vulnerable adult who was pushed and pulled by
    both these parties.
    After hearing lengthy oral argument the judge took the matter
    under advisement and issued a July 29, 2016 order.            The order: (1)
    removed the caveat filed by Pine; (2) admitted the Will to probate;
    (3) issued letters Testamentary to Bickhardt and Sheftall as co-
    executors; (4) declared that no bond shall be required; (5) denied
    appointment of a temporary administrator; and (6) declared the
    2013   Deed    valid,    creating   a   joint    tenancy   with   a    right    of
    survivorship.
    With regard to the conclusion that the deed was valid, the
    trial court found that
    the Deed is facially valid pursuant to the
    statutory requirements of N.J.S.A. 46:4-1 et
    seq., and that the intention of the parties
    appears clear from the face of the Deed, see
    8                                A-0098-16T2
    Boylan v. Borough of Point Pleasant Beach, 
    410 N.J. Super. 564
    , 569 (App. Div. 2009), and
    finally,    that   the   extrinsic    evidence
    surrounding the Deed resolves any and all
    ambiguities as to the intent of the parties,
    see [i]bid. . . .
    This appeal followed.
    On September 22, 2016, the judge issued a supplemental written
    opinion setting forth her findings of fact and legal analysis.
    With regard to her ruling that the 2013 Deed was valid, the judge
    stated:
    The requirements for a short form deed are
    enumerated in N.J.S.A. 46:4-1 et seq.      The
    2013 Deed meet those requirements. However,
    the Deed contains an error, because both
    Decedent and []Pine should have been listed
    as grantors.      After the 2012 Deed was
    executed, Decedent and [] Pine owned the
    Apartment as tenants in common. Therefore,
    Decedent alone could not have conveyed a joint
    tenancy with a right of survivorship to
    herself and [] Pine.
    In determining the meaning of a deed, the
    prime consideration is the intent of the
    parties.   See e.g., Normanoch Association,
    Inc. v. Baldasanno, 
    40 N.J. 113
    , 125 (1963);
    Hagaman v. Board of Ed., 117 N.J. Super, 446,
    451 (App. Div. 1971). Courts must examine the
    language of the deed as a whole, including
    surrounding circumstances, when determining
    the intent of the parties.         Hammett v.
    Rosensohn, 
    26 N.J. 415
    , 423 (1958); Boylan v.
    Borough of Pt. Pleasant Beach, 
    410 N.J. Super. 564
    , 569 (App. Div. 2009).
    This Court finds that the Deed is facially
    valid pursuant to the statutory requirements
    of N.J.S.A. 46:4-1 et seq., and that the
    9                           A-0098-16T2
    intention of the parties appears clear from
    the face of the Deed, see Boylan v. Borough
    of Point Pleasant Beach, 
    410 N.J. Super., 564
    ,
    569 (App. Div. 2009), and finally, that the
    extrinsic evidence surrounding the Deed
    resolves any and all ambiguities as to the
    intent of the parties, see Ibid.. The weight
    of the evidence suggests that Decedent and []
    Pine intended to create a joint tenancy with
    right of survivorship in the Apartment. The
    language on the face of the Deed and the
    supporting documents suggest that this was the
    desired tenancy. Further, the Certification
    of [] Lewie, the scrivener of the Deed, avers
    that this was Decedent's intention and she
    fully comprehended the legal ramifications of
    such a Deed (that title to the Apartment would
    pass to [] Pine upon Decedent's death by
    operation of law).
    Accordingly, the Court finds that that 2013
    Deed was valid to create a joint tenancy with
    right of survivorship to Decedent and [] Pine.
    As such, the Apartment now belongs fully to
    [] Pine.
    Appellants raise the following issues on appeal: (1) the
    trial court erred in finding the 2013 deed valid making Pine the
    sole owner of the Apartment; and (2) the trial court erred by
    failing   to   conduct   a   plenary    hearing   on   the   issue   of   undue
    influence.
    II.
    We normally defer to the factual findings of a trial judge.
    The scope of an appellate court's review of a
    trial court's fact-finding is a limited one.
    Trial court findings are ordinarily not
    disturbed   unless   "they  are   so   wholly
    unsupportable as to result in a denial of
    10                             A-0098-16T2
    justice," and are upheld wherever they are
    "supported by adequate, substantial and
    credible evidence."
    [Meshinsky v. Nichols Yacht Sales, Inc., 
    110 N.J. 464
    , 475 (1988) (quoting Rova Farms
    Resort v. Investors Ins. Co., 
    65 N.J. 474
    ,
    483-84 (1974)).]
    See also In re Trust Created by Agreement Dated Dec. 20, 1961, ex
    rel. Johnson, 
    194 N.J. 276
    , 284 (2008).
    "A trial court's interpretation of the law and the legal
    consequences that flow from established facts are not entitled to
    any special deference."     Manalapan Realty, L.P. v. Twp. Comm., 
    140 N.J. 366
    , 378 (1995). "On appeal, a trial judge's statutory
    interpretation is reviewed de novo."        In re Estate of Fisher, 
    443 N.J. Super. 180
    , 190 (App. Div. 2015) (citation omitted), certif.
    denied, 
    224 N.J. 528
     (2016).
    III.
    We first address appellants' claim that the trial court erred
    by deciding this matter without conducting a plenary hearing.
    Appellants correctly point out that both orders to show cause
    stated   that   "[t]he   [c]ourt   will   entertain   argument,   but   not
    testimony, on the return date of the Order to Show Cause, unless
    the [c]ourt and parties are advised to the contrary before the
    return date."    The parties were not advised before the return date
    that the court would entertain testimony.
    11                             A-0098-16T2
    Appellants contend that the colloquy with the court regarding
    whether there was an intent to take testimony related only to
    appellants' claims to probate the Will, issue letters testamentary
    to them, and set aside the caveat filed by Pine.
    While counsel seemingly agreed that the trial court could
    decide the legal issue of the validity of the 2013 Deed without
    taking testimony, appellants argue that counsel's statement was
    not a waiver of the right to a plenary hearing with regard to the
    issue of undue influence.      They point out that counsel later
    advised the court:   "I don't think that issue can be settled at
    this point in time without a factual plenary hearing."
    Given the language in the orders to show cause and what may
    have been no more than innocent miscommunication, we decline to
    hold that appellants waived the right to conduct discovery or a
    plenary hearing on the issue of undue influence.
    We next address appellant's claim that the 2013 Deed was the
    product of undue influence by Pine.       Pine argues there is no
    evidence of undue influence.    Appellants claim the circumstances
    under which the 2013 Deed was drafted raise questions as to whose
    intent was really reflected in the deed, decedent's or Pine's.
    Appellants maintain there are significant factual issues
    regarding whether decedent was the victim of undue influence,
    obligating the court to hear oral testimony and consider other
    12                         A-0098-16T2
    evidence, rather than deciding the issue exclusively on the written
    submissions.   They point to the confidential relationship between
    decedent and Pine, who was her niece.      They also emphasize the
    fact that Lewie represented both decedent and Pine with regard to
    the 2013 Deed transaction.    Based on the confidential relationship
    and the alleged suspicious circumstances, appellants contend that
    they satisfied their burden of proof which Pine failed to rebut.
    The law of undue influence is well settled.        A decedent’s
    bequest may be overturned if it is proven to be the product of
    undue influence.   Haynes v. First Nat'l State Bank, 
    87 N.J. 163
    ,
    176 (1981).    “Undue influence” has been defined as a "mental,
    moral or physical exertion" that destroys the "free agency of a
    testator by preventing the testator from following the dictates
    of his own mind and will and accepting instead the domination and
    influence of another."    
    Ibid.
     (citations omitted).   However, "not
    all influence is 'undue' influence."     In re Livingston's Will, 
    5 N.J. 65
    , 73 (1950).
    The first element necessary to raise a presumption of undue
    influence is a “confidential relationship” between the decedent
    and the beneficiary.     Haynes, 
    supra,
     
    87 N.J. at 176
    .   The second
    element necessary to raise a presumption of undue influence is the
    presence of “suspicious circumstances.”    
    Ibid.
       When both elements
    are present, a presumption of undue influence arises, shifting the
    13                           A-0098-16T2
    burden of proof to the proponent of the instrument, who must,
    under     normal    circumstances,        overcome      the    presumption           by    a
    preponderance of the evidence.            
    Id. at 177-78
     (citations omitted).
    “In respect of an inter vivos gift, a presumption of undue
    influence    arises       when    the    contestant     proves       that    the     donee
    dominated    the     will    of    the     donor,     or     when    a    confidential
    relationship       exists   between      donor    and      donee[.]"        Pascale       v.
    Pascale, 
    113 N.J. 20
    , 30 (1988) (citations omitted).
    A confidential relationship has also been described as one
    where "the relations between the parties are of such a character
    of trust and confidence as to render it reasonably certain that
    the one party occupied a dominant position over the other and that
    consequently       they    did    not    deal    on   terms    and       conditions       of
    equality."    Estate of Ostlund v. Ostlund, 
    391 N.J. Super. 390
    , 402
    (App. Div. 2007) (citation omitted).
    In    order    to    raise    a    presumption     of    undue       influence,       a
    confidential relationship and suspicious circumstances must be
    present, but the suspicious circumstances need only be "slight."
    In re Estate of Stockdale, 
    196 N.J. 275
    , 303 (2008); Haynes, 
    supra,
    87 N.J. at 176
    .       Once the presumption of undue influence arises,
    “both the burden of proof . . . and the burden of going forward
    with proof, shift to proponent and are identical and coincident."
    14                                       A-0098-16T2
    In re Week’s Estate, 
    29 N.J. Super. 533
    , 539 (App. Div. 1954);
    accord, Haynes, 
    supra,
     
    87 N.J. at 177-79
    .
    Evidence of undue influence varies from case to case, with
    the relationship of the parties being a significant factor.                       See,
    e.g., Albright v. Burns, 
    206 N.J. Super. 625
    , 635 (App. Div. 1986)
    (describing how, based on a nephew and uncle's relationship, a
    confidential relationship may be presumed).                  Here, Pine was the
    decedent's niece.        A fiduciary relationship may arise between aunt
    and niece by reason of their closeness, family relationship, or
    entrustment.        See 
    ibid.
    Appellants' argument on the return date of the order to show
    cause regarding the issue of undue influence was minimal.                         They
    contend, however, that the record before the trial court, which
    included the guardianship pleadings and reports, was sufficient
    to demonstrate the confidential relationship between decedent and
    her niece, as well as suspicious circumstances surrounding the
    preparation and execution of the 2013 Deed.
    We fully recognize that the court might have thought that
    appellants did not seek to undertake discovery, submit briefing,
    or   produce       testimony    on   the   issue    of    undue   influence     given
    counsel's comments during oral argument.                  However, we decline to
    deprive litigants of their day in court based on what seems to
    have   been    a    misunderstanding       caused    by    counsel's   failure       to
    15                                 A-0098-16T2
    effectively communicate their request for discovery and a plenary
    hearing.
    In her supplemental opinion, the judge recounts the opposing
    contentions of the parties regarding whether the 2013 Deed was the
    product of undue influence.       However, the order and supplemental
    opinion do not reflect whether the judge made an independent
    decision   based   upon    an   analysis    of   those    contentions,    the
    underlying facts, and the applicable law.         Moreover, we are unable
    to determine whether the judge correctly declared the 2013 Deed
    valid because the judge failed to make any findings of fact
    supporting her determination or otherwise sufficiently expressing
    her reasoning as to whether the deed was the product of undue
    influence.   In that regard, the judge did not indicate whether she
    concluded that appellants failed to adequately plead, prosecute,
    or prove their claim of undue influence.                 Nor did the judge
    indicate   whether   a    confidential     relationship     and   suspicious
    circumstances existed.      Consequently, she also did not indicate
    whether the burden of proof shifted.
    We cannot determine on this record whether the undue influence
    claim was even considered, let alone whether it was denied for
    procedural or substantive reasons.         We are, therefore, constrained
    to vacate the portion of the order declaring the 2013 Deed valid
    and remand for further proceedings consistent with this opinion.
    16                               A-0098-16T2
    In light of our ruling, we need not reach the issue whether
    the 2013 Deed was invalid because it did not identify Pine as a
    grantor.   Even if otherwise legally sufficient, the deed is not
    valid if it was the product of undue influence.
    On remand the trial court is directed to conduct a case
    management conference within thirty days to address any need for
    additional discovery and a testimonial hearing.     The judge will
    make the subsequent determination whether the 2013 Deed was the
    product of undue influence.
    Vacated and remanded.     We do not retain jurisdiction.
    17                             A-0098-16T2