Burke v. Sea Point Realtors

947 A.2d 686, 400 N.J. Super. 398
CourtNew Jersey Superior Court Appellate Division
DecidedMay 30, 2008
DocketA-5652-06T1
StatusPublished

This text of 947 A.2d 686 (Burke v. Sea Point Realtors) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burke v. Sea Point Realtors, 947 A.2d 686, 400 N.J. Super. 398 (N.J. Ct. App. 2008).

Opinion

947 A.2d 686 (2008)
400 N.J. Super. 398

Joseph BURKE and Timothy Burke, Plaintiffs-Appellants, and
Nancy Burke, Plaintiff,
v.
SEA POINT REALTORS, Thomas Meyer, Patricia Meyer and Dzintars Abelite (both individually and in his capacity as Guardian of Alfreds Nikmanis, an incapacitated person), Defendants-Respondents.

Docket No. A-5652-06T1

Superior Court of New Jersey, Appellate Division.

Submitted March 31, 2008.
Decided May 30, 2008.

*687 Joseph Burke and Timothy Burke, appellants pro se.

Orlovsky, Grasso, Bolger, Mensching & Daley, Toms River, for respondents Sea Point Realtors, Thomas Meyer and Patricia Meyer (John J. Mensching, on the brief).

Mulvaney, Coronato & Brady, Toms River, for respondent Dzintars Abelite (both individually and in his capacity as Guardian of Alfred Nikmanis, an incapacitated person) (Terry F. Brady, on the brief).

Before Judges COLLESTER, C.S. FISHER and C.L. MINIMAN.

The opinion of the court was delivered by

FISHER, J.A.D.

This case was triggered by a guardian's decision to retain defendant Sea Point Realty to market real property owned by the guardian's ward. Without notice to plaintiffs or other disappointed offerors, the guardian obtained the Probate judge's approval of a conveyance to defendants Thomas and Patricia Meyer without clearly revealing that the Meyers were the principals of Sea Point. Based on this and defendants' alleged attempts to discourage buyers during the marketing process, plaintiffs filed this action for damages. We conclude that plaintiffs' claims were not precluded by the proceedings in the guardianship action and, with one exception, reverse the summary judgment entered in defendants' favor.

I

A. The Proceedings in The Probate Part

Alfreds Nikmanis was the owner of real property in Brick Township. In light of his deteriorating physical and mental condition, his friend of many years, defendant Dzintars Abelite commenced an action, pursuant to N.J.S.A. 3B:13-1 to -31 and R. 4:86-1 to -6, for a declaration that Nikmanis was incapacitated and unable to manage his affairs. On May 19, 2005, a judgment was entered that appointed *688 Abelite as the guardian of Nikmanis's person and property.

Abelite (the guardian) thereafter concluded that it was in Nikmanis's best interests to sell the Brick Township property and engaged Sea Point as his listing agent. Sea Point received a number of offers, and the guardian thereafter filed an action in the Probate Part, pursuant to R. 4:94-1 to -7, seeking approval to sell the property to the Meyers.

In his verified complaint, the guardian alleged that the property was purchased by Nikmanis in 1999 for $113,000 and was unencumbered. He asserted that the Meyers' offer was the highest and urged its approval. As more fully explored later, the guardian's papers did not make clear the existence of a relationship between the Meyers and Sea Point. And, because of the limited class of persons given notice of the application, the application went unopposed and was apparently not further scrutinized by the Probate judge, who granted the guardian's application without explanation.[1]

B. The Proceedings in the Law Division

Upon learning of the Probate judge's determination, plaintiffs commenced this Law Division action — against the guardian, the Meyers and Sea Point — seeking damages based upon what they claim, among other things, was a fraudulent scheme to discourage buyers and to make the property available to the Meyers at the lowest possible price. Plaintiffs asserted: that the guardian's submission to the Probate judge was inadequate and failed to disclose the Meyers-Sea Point relationship; that the guardian's failure to give notice to them and the other disappointed offerors of the probate proceedings precluded deeper scrutiny of the guardian's submission; and that the Meyers, in their role as listing agent, discouraged potential purchasers by indicating that the property had many problems as a way of keeping down the amount of any bids received.

By way of separate motions, all defendants obtained summary judgment. The Law Division judge essentially based his rulings on the fact that plaintiffs never entered into an enforceable contract with the guardian, and that plaintiffs had no standing to be heard in the Probate Part, or, stated another way, that the Probate judge's approval of the sale of the property to the Meyers was conclusive.

II

There is no dispute that the Meyers were then and are now the principals of Sea Point. There is also no dispute that Sea Point was retained by the guardian to be the listing agent on this property. In examining these facts in the light required by the Brill[2] standard, we are satisfied that it would have been of great interest to the Probate judge at the time she considered the guardian's sale of the property to the Meyers to know that the Meyers were the principals of Sea Point. By entering into a listing agreement with the guardian, Sea Point and its representatives entered into a fiduciary relationship that required the "exercise [of] fidelity, good faith and primary devotion to the interests of [their] principal." Exit A Plus Realty v. Zuniga, 395 N.J.Super. 655, 664, 930 A.2d 491 (App.Div.2007) (quoting Ellsworth *689 Dobbs, Inc. v. Johnson, 50 N.J. 528, 553, 236 A.2d 843 (1967)).

Rule 4:94-3 authorizes a Probate judge to permit a sale of an incapacitated person's property if "the court is satisfied that the best interests of the ward would thereby be substantially promoted." In her role of protector of the interests of the incapacitated person in this instance, it no doubt would have been important to the Probate judge to know that the principals of the listing agent were the proposed purchasers. Although we may assume that relationship alone might not have been cause to completely disqualify the Meyers as purchasers — an issue we need not decide — the situation certainly warranted further scrutiny. A fair reading of the record before the Probate judge indicates that the guardian failed to adequately disclose this information to the Probate judge and strongly suggests that the Probate judge ruled on the application without knowledge of the Meyers-Sea Point relationship.

In applying to the Probate judge for approval of the sale, the guardian claimed that he spoke with "several realtors" and then "listed the property for sale." His complaint did not mention that Sea Point was the listing agent or that the Meyers were the principals of Sea Point. The guardian's moving certification similarly failed to adequately reveal the relationship between the Meyers and Sea Point. Following his description of the parties, the property, and his reasons for selling, the guardian only set forth the following in his certification regarding the offers received and the reason why he believed it advantageous to sell to the Meyers:

After speaking with several realtors, and with Alfreds himself, I listed the property for sale, and I received several offers. The proposed contracts are attached as Exhibit B. They show offers of $236,000, $235,500, $210,000, $241,900 (subject to a $218,000 mortgage contingency), & $200,000. Based upon all of the offers, I believe that the offer of $236,000 from Thomas & Patricia Meyer was the most advantageous, and I ask the Court to approve this contract. I note that Patricia Meyer is a realtor, and she is the proposed buyer as well.

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Bluebook (online)
947 A.2d 686, 400 N.J. Super. 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burke-v-sea-point-realtors-njsuperctappdiv-2008.