In re Jones

305 A.3d 525

477 N.J.Super. 203

In the MATTER OF the ESTATE OF Michael D. JONES, Deceased.

DOCKET NO. A-2944-21

Superior Court of New Jersey, Appellate Division.

Submitted September 13, 2023

Decided November 14, 2023

On appeal from the Superior Court of New Jersey, Chancery Division, Camden County, Docket No. P-000005-20.

Lynn M. Castillo, LLC, attorneys for appellant Jeanine Jones (Kevin Diduch, on the brief).

The Whelihan Law Firm LLC, attorneys for respondent Shontell A. Jones (Thomas A. Whelihan, on the brief).

Before Judges Haas, Gooden Brown and Natali.

The opinion of the Court was delivered by

GOODEN BROWN, J.A.D.

₂₀₇In this probate dispute, defendant Jeanine Jones appeals from an April 23, 2021 order granting partial summary judgment and dismissing her creditor’s claim against the estate of her deceased ex-husband, Michael Jones. The creditor’s claim arose from a 2017 ₂₀₈divorce settlement agreement (DSA) between Jeanine and Michael.¹ Jeanine also appeals from an August 3, 2021 order denying her motion for reconsideration. For the reasons that follow, we reverse and remand.²

I.

We glean these facts from the motion record. Jeanine and Michael were married in 1990, separated in 2016, and divorced in 2018. During their eighteen-month period of separation, Jeanine and Michael attempted to reconcile in accordance with certain stipulations. In her deposition, Jeanine testified that the stipulations included the parties attending couples counseling and Michael making payments to her as recompense for his financial shortcomings as a husband during the marriage. Although Michael made three payments to Jeanine between June and August 2017, totaling $12,000, the parties never attended counseling and the reconciliation ultimately failed.

The couple divorced by entry of a January 17, 2018 final judgment of divorce (JOD), which incorporated a DSA executed on October 19, 2017. According to the DSA, Michael agreed to pay Jeanine the sum of $200,000 according to the following payment schedule:

(a) Thursday, October 19, 2017, [Michael] will deliver a personal check to [Jeanine in the amount of] $4,500[ ] upon receipt of th[e] notarized [DSA].

(b) Tuesday, November 20, 2017, [Michael] has agreed to deliver a second check to [Jeanine] in the amount of $45,-500[].

₂₀₉(c) The remaining balance of $150,-000[] shall be delivered to [Jeanine] over the next three years beginning 2018. Each payment shall be in the amount of $50,000[ ], payable by the end of each year ending December 2020.

As to equitable distribution, the DSA provided that "[u]pon full execution of th[e DSA], [Michael] shall … have sole possession (title) of the [m]arital [r]esidence. However, should [Michael] sell the [m]arital [r]esidence prior to December 31, 2020, he must pay the balance remaining of the $200,000[ ], in full." If Michael predeceased Jeanine, the DSA stated that "the proceeds from [Michael’s] estate will compensate [Jeanine] for the remainder of the $200,000[ ] in the event there is an unpaid balance." If the couple reconciled after the divorce, Jeanine would not be obligated to "return any, settlement agreement monies paid by [Michael]."

Under the DSA, "[a]ny marital asset not listed … belong[ed] to the party who ha[d] it … in their possession" at the time of the DSA’s execution. The DSA also granted each party "exclusive use, possession, and ownership of all items titled in [their respective name] solely including cash on hand, [and] cash in banks." Specifically, as to the couple’s respective retirement and bank accounts, the DSA provided that each party would retain "exclusive use, possession, and ownership of any 401k, IRA, or other retirement account listed in [his or her] name" and each party would forever relinquish any right he or she may have to the other’s accounts, except that Jeanine’s interest was permanently relinquished only if Michael "ha[d] fulfilled his financial obligation[s] by December 31, 2020." The DSA similarly stated that each party would retain "exclusive use, possession, and ownership and shall be the sole owner of any bank account listed in [his or her] name, including, but not limited to, checking accounts, savings accounts, or money market accounts," but Michael’s promise was again conditioned on whether he "ha[d] fulfilled his financial obligation by December 31, 2020."

The DSA further specified that "[e]ach party, except as otherwise provided in th[e a]greement, release[d] the other from all claims, liabilities, debts, obligations, actions, and causes of action of every kind, whether known or unknown" (the release provision). ₂₁₀Additionally, the DSA provided that by executing the agreement, Jeanine "w[ould] not waive, release[ ], [or] relinquish[] any actual or potential right, claim, or cause of action against [Michael], including but not limited to asserting a claim against … [Michael’s] estate … except as otherwise provided in th[e DSA] or arising hereunder" (the waiver provision). Jeanine would waive "any and all rights to inherit part of [Michael’s estate] at his death, only if [Michael] ha[d] fulfilled his financial obligation on or by December 31, 2020." Finally, the parties agreed that the DSA "constitute[d] the entire contract of the parties" and "supersede[d] any prior understandings of agreements between them."

Michael made the scheduled payments in accordance with the DSA through December 2018, amounting to $100,000. On November 1, 2019, Michael delivered a check to Jeanine in the amount of $10,000, which, according to the check’s memo line, was intended to be the first of two pay- ments for that year. However, on November 9, 2019, Michael was admitted to the hospital and underwent emergency surgery to treat a perforated gastric ulcer. The surgery was unsuccessful, and on November 14, 2019, Michael was placed into palliative care.

On the same day, November 14, 2019, Michael executed a Banking Power of Attorney (the POA) appointing Jeanine as attorney-in-fact, which Jeanine used to withdraw $17,000 from Michael’s PNC bank account later that day. Among other things, the POA authorized Jeanine "to draw, sign and deliver checks or drafts; to withdraw by check, order, draft, wire transfer or otherwise any funds or property … deposited with or left in the custody of PNC Bank," and "to do everything necessary in exercising these powers." In her deposition testimony, Jeanine acknowledged that there were no witnesses to Michael’s signature on the POA other than Jeanine, and a notary at PNC bank apparently notarized Jeanine’s signature, but not Michael’s.

Michael died intestate two days later on November 16, 2019, at fifty-nine years of age, having paid only $110,000 of the $200,000 sum owed under the DSA. According to her deposition testimony, ₂₁₁after Michael’s death, Jeanine took it upon herself to organize Michael’s funeral, pay his outstanding bills, and maintain the marital home "to [give] the appearance that someone was there and that it was secure" while it remained vacant. To that end, Jeanine paid approximately $1,000 to cover the costs of the church service and funeral programs.³ She also paid the home’s gas, electric, and internet bills until June 2020, all of which were "still in her name." In addition, she paid for lawn service, security system installation and maintenance, homeowners’ insurance, garbage pickup, storage of Michael’s vehicles, and the home’s property taxes, all of which totaled $8,820.85. Lastly, Jeanine paid $2,532.86 to cover Michael’s medical expenses.

At her deposition, Jeanine testified that she had withdrawn the $17,000 from Michael’s PNC bank account to "take care of [Michael’s] household [expenses]," but the expenses were ultimately "paid with checks" or "electronic payments" that were drawn directly from her own checking account. Jeanine acknowledged that during that time, she went to Michael’s house periodically, but she denied moving into the house or removing any items from the home. Nonetheless, Jeanine admitted redeeming a number of U.S. Series EE Bonds that designated ,her as the pay-on-death, (POD) beneficiary, and acknowledged that the bonds were stored in the office of Michael’s home. Jeanine received $77,864.40 from redeeming the bonds.

On February 14, 2020, plaintiff Shontell Jones, Michael’s daughter from a previous relationship, filed an amended complaint and order to show cause seeking, among other things, appointment as the administrator of Michael’s estate; a full accounting from Jeanine of all financial transactions involving Michael’s accounts at the time of his death; a full accounting of all items Jeanine removed from Michael’s home; and an order directing Jeanine to ₂₁₂vacate Michael’s house, pay the estate rent from the date she took possession, and reimburse the estate for all utility costs attributable to her occupancy. Jeanine filed a pleading designated as an "[a]nswer, [s]ep- arate [d]efenses, and [c]ounterclaim," seeking her DSA entitlements.⁴

In a June 12, 2020 order, plaintiff was appointed administrator of Michael’s estate. The June 12 order also granted plaintiffs request for a full accounting from Jeanine, and directed Jeanine to vacate Michael’s home and pay the estate rent and utility costs for her occupancy.⁵ Pursuant to the June 12 order, the matter was "converted to a plenary proceeding" and a hearing was scheduled to address Jeanine’s entitlements under the DSA.

On August 10, 2020, Jeanine filed a creditor’s claim against the estate, wherein she claimed that the estate owed her: $100,000 pursuant to the DSA; $19,833.20 as reimbursement for "medical bills, funeral costs and household bills and real estate taxes paid by [her] from [her] personal funds" on the estate’s behalf; and "[a]ny portion" of Michael’s Department of Health and Human Services Office of Inspector General pension benefits "as determined by [the United States Office of Personnel Management]." In support of her claims, Jeanine submitted an Excel spreadsheet that sh...