Blau v. Blau

3 A.D.3d 167, 773 N.Y.S.2d 337, 2004 N.Y. App. Div. LEXIS 915

This text of 3 A.D.3d 167 (Blau v. Blau) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blau v. Blau, 3 A.D.3d 167, 773 N.Y.S.2d 337, 2004 N.Y. App. Div. LEXIS 915 (N.Y. Ct. App. 2004).

Opinions

OPINION OF THE COURT

Sullivan, J.

Defendant husband appeals from an award of temporary child support and the confirmation of a referee’s report finding that defendant has constructive possession of certain documents in the actual possession of his father and sister and the father’s accountant and bookkeeper and recommending that defendant be directed to produce such documents. We are all in agreement that the temporary child support award should be modified; the only issue that divides us is whether defendant can be deemed in constructive possession of the subject documents.

To put the issues in proper perspective, a little background is in order. The marriage was of short duration—27 months. Married on January 16, 1999, the parties were in marriage counseling by April 2000. At the time of the marriage, the husband was completing his dissertation. Throughout the marriage the wife worked as an administrative director of research at Lenox Hill Hospital. There is one child of the marriage, a daughter born November 5, 1999.

The husband’s father is a multimillionaire who funded various companies into which were placed various investment portfolios and by which, until the commencement of this action, the husband was employed. The wife asserts that defendant’s 2001 income, including various tax-free perquisites, was in excess of $200,000. In addition, the husband’s father allegedly funded a trust for his grandchildren, including the parties’ daughter, from which she annually receives at least $50,000.

In December 2000, according to the husband, the wife told him that she wanted a separation and that he should leave the marital residence, an apartment owned by the husband’s parents, which they had allowed him to use while he finished his dissertation. According to the wife, the husband left of his own accord. At the time the husband was interviewing for a teaching position, which he ultimately obtained, at Sacred Heart [169]*169University in Fairfield, Connecticut. He now leases an apartment in nearby Bridgeport, Connecticut.

When the wife refused to vacate the apartment after the husband’s departure, his parents commenced a holdover proceeding against both of them. As part of a September 2001 settlement of that proceeding, the parents agreed to allow the wife to live, rent free, in the apartment until June 2002. In the interim, in May 2001, the wife commenced this action against the husband, seeking a separation, naming his parents as parties to the action as well, and simultaneously sought pendente lite relief. The husband answered and interposed a counterclaim for divorce. As part of the previously noted September 2001 stipulation, the wife voluntarily discontinued her action against the parents.

Both parties served notices for depositions and document production. The husband produced documents relating to his current employment as requested and, on October 10, 2000, was deposed. Although successfully resisting enforcement of a commission seeking discovery, his father, a Connecticut resident, through his own counsel, voluntarily produced documents sought by the wife, including two trust agreements in which the husband or the child is a beneficiary.

In an effort purportedly to make her case as to the husband’s child support obligations, the wife has issued nine subpoenas to third parties: the Harvard Club, the husband’s therapist, the Albert Ellis Institute (two), where the husband interned, Good-stein Management, People’s Bank, MBNA America, Fourth Federal Savings Bank and Chase Platinum Visa. The husband also provided authorizations to obtain documents from Sacred Heart University, the Union Institute (where he did his graduate work), Southport Racquet Club, Sallie Mae (student loans), People’s Bank and MBNA.

On March 7, 2002, Supreme Court referred to a special referee the outstanding issues regarding the wife’s additional discovery demands as to the husband’s father, his father’s company, Bayberry IV Associates, LLC, his sister, and his father’s accountant and bookkeeper, all residents or domiciliaries of Connecticut. On May 17, 2002 the referee issued an order stating, “As [the husband’s] parents are non-parties and reside outside the jurisdiction of New York, coupled with the fact the [husband] (regardless of motive) is no longer a trustee of GST [Generation-Skipping Trust] Trust, and that the Trustee of the GST Trust has a legal and separate and fiduciary duty to [170]*170beneficiaries of the trust, I am constrained to deny the application.” The referee also stated, “[T]he mere fact that [the husband] is related to one of the Trustees (father), was once employed by his father’s firm, and that at [the] time of such employment the [husband] occupied offices where GST Trust documents are located, does not constitute possession, control or custody.”

Approximately four months later, on September 27, 2002, after a Connecticut court refused to enforce the commissions issued by the referee upon the husband’s father and others seeking discovery as to any assets managed by the husband or held for his benefit or in which he had a legal or beneficial interest, the same special referee, in contradiction of his earlier order and without a hearing, did a complete turnaround and held that the husband “has constructive possession, custody and control of the documents requested by the plaintiff” and directed that the husband produce them. Specifically, the commissions had sought documents with regard to any trust of which the husband or the parties’ daughter was or is currently a beneficiary as well as canceled checks and bills for legal fees paid by the husband’s father or by any business in which his father had an interest regarding both the eviction proceeding and the instant action. The wife also requested documents from the father with regard to gifts, loans, vacation payments, expenses for the New York apartment, cooperative housing expenses and gift tax returns with respect to gifts made to the husband from January 1999 to date. Similar commissions were issued as to the husband’s sister, as well as his father’s accountant and his bookkeeper.

In directing production of the documents, the referee placed great weight upon the eviction proceeding that the husband’s parents had brought against the parties, without any explanation as to how this circumstance justifies a finding that the husband had “constructive possession, custody and control” of the father’s documents. The referee also cited the father’s payment of the husband’s legal fees in this action, payments which, the husband claims, represent loans.

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Cite This Page — Counsel Stack

Bluebook (online)
3 A.D.3d 167, 773 N.Y.S.2d 337, 2004 N.Y. App. Div. LEXIS 915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blau-v-blau-nyappdiv-2004.