Cruz v. McAneney

31 A.D.3d 54, 816 N.Y.S.2d 486
Appellate Division of the Supreme Court of the State of New York·Decided May 2, 2006·Published·Cited by 54 cases

Opinion

OPINION OF THE COURT

Florio, J.P.

We are called upon to decide as a matter of first impression whether or not the confluence of the equitable doctrines of constructive trust and unjust enrichment, together with what we perceive to be the intent of New York and federal legislation enacted to compensate the victims and survivors of the September 11, 2001, terrorist attacks, requires that we affirm the denial of this motion to dismiss the complaint for failure to state a cause of action. We find that they do.

Viewed in the light most favorable to the plaintiff, as we must, in the context of this motion to dismiss for failure to state a cause of action under CPLR 3211 (a) (7) (see Rovello v Klein, 304 AD2d 638 [2003]), the following are the relevant facts:

Patricia McAneney (hereinafter Patricia) died intestate on September 11, 2001, as a result of the terrorist attacks on the World Trade Center. Patricia’s brother, the defendant James E McAneney, as her personal representative, filed a claim on her behalf with the September 11th Victim Compensation Fund of 2001 (hereinafter the Fund). While the claim was pending, the plaintiff, Margaret Cruz, submitted a statement of financial interest with the Fund, stating that she was entitled to all or part of any award because she was Patricia’s loving, domestic partner for more than 15 years. At that time, the Fund’s Special Master allegedly told the plaintiff that an award had already been approved in the sum of $278,087.42. This amount allegedly reflected Patricia’s pain and suffering, as well as the economic loss of Patricia’s survivors analogous to the amount awarded in a traditional wrongful death suit.

On March 10, 2003, the Special Master allegedly explained to the plaintiff that the approved award of the sum of $278,087.42 [56]*56had been calculated as if Patricia were single and lived in a one-person household. However, the Special Master also expressed a willingness to recalculate the economic loss portion of the award and increase it by the sum of $253,454, to a total sum of $531,541.42, to account for the reality of the plaintiffs domestic partnership with Patricia. Allegedly, the Fund was willing to distribute the full award to the defendant, as personal representative for Patricia, provided he agreed in writing to distribute the increased portion ($253,454) to the plaintiff. However, the Fund was unwilling to mandate that the defendant, as personal representative, distribute the full award of the sum of $531,541.42 to the plaintiff as Patricia’s sole survivor and beneficiary.

Additionally, some representatives of the Fund allegedly told the plaintiff that the Fund would not distribute the increased portion of the award to the defendant absent a settlement agreement regarding distribution of the increased portion to her. The parties then attempted to settle this matter. Unfortunately, they were unable to do so.

With negotiations at an impasse, representatives of the Fund allegedly informed the plaintiff on May 23, 2003, that it was in the process of distributing the award to the defendant, but assured her that only the smaller, original award of the sum of $278,087.42 would go to the defendant if a settlement could not be reached. While the plaintiff requested that the Fund mandate that the defendant distribute the increased portion of the award to her, the Fund refused to assist her.

Allegedly, the plaintiff continued her attempts to negotiate with the defendant, but he would not make any decision regarding a settlement before June 23, 2003, when his newly retained litigation counsel would be available for consultation. In the interim, on or about June 12, 2003, the Fund informed the plaintiff that it would soon distribute the larger award of the sum of $531,541.42, despite the absence of a settlement agreement. The alleged rationale for distributing the larger award under these circumstances was that the plaintiff could litigate the dispute in state court.

Ultimately, the defendant, as Patricia’s personal representative, received an award of the sum of $531,541.42 from the Fund. He refused further negotiations with the plaintiff and declined to distribute any portion of the award to her. Instead, he distributed the entire award to himself, on the ground that he was Patricia’s only surviving blood relative. The plaintiff, [57]*57therefore, commenced the instant action to compel the defendant to disburse all or part of the award to her.

The complaint asserts three causes of action based on the factual allegations stated above. The first cause of action alleges, inter alia, that the plaintiff is entitled, as the surviving domestic partner of the decedent, to the full award or a portion of the award, and the defendant, as the personal representative of the decedent, is under a fiduciary duty to distribute same to her.

Alternatively, in the second and third causes.of action, the plaintiff asserts claims under the equitable theories of constructive trust and unjust enrichment. Under these theories, the plaintiff alleges that she is entitled to at least the sum of $253,454 because the Fund intended that this portion be distributed to her. Since this amount was added on to the original award to account for the reality of her domestic partnership with Patricia, the plaintiff alleges that the defendant has an equitable duty to convey, at least, this amount to her.

The defendant moved to dismiss the complaint in its entirety alleging, inter alia, that it failed to state a cause of action. The Supreme Court, inter alia, in effect, denied the motion. The defendant appeals, and we affirm.

The Fund was created by the federal government as title IV of the Air Transportation Safety and System Stabilization Act (49 USC § 40101, as added by Pub L 107-42, 115 US Stat 230 [2001] [hereinafter the Act]). The Fund’s purpose is “to provide compensation to any individual (or relatives of a deceased individual) who was physically injured or killed as a result of the terrorist-related aircraft crashes of September 11, 2001” (Act § 403 [49 USC § 40101]). Thereunder, a personal representative may file a claim with the Fund on behalf of a deceased victim of the terrorist attacks (see Act § 405 [c] [2] [C]; § 406 [a] [49 USC § 40101]; 28 CFR 104.2 [a] [1], [3]).

A special master, appointed by the United States Attorney General, administers the Fund (see Act § 404 [a] [49 USC § 40101]). The special master’s tasks include determining the eligibility of claimants and the amount of compensation to be awarded (see Act § 404 [a]; § 405 [a] [2]; [b] [49 USC § 40101]). Once the special master makes a determination regarding amount and eligibility, the special master authorizes payment of the full award to the claimant, who must be the personal representative in cases of deceased victims (see Act § 405 [c] [2] [C]; § 406 [a] [49 USC § 40101]; 28 CFR 104.2 [a] [1], [3]). Under [58]*58the Act, the personal representative has the duty to “distribute the award in a manner consistent with the law of the decedent’s domicile or any applicable rulings made by a court of competent jurisdiction” (28 CFR 104.52

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Cruz v. McAneney, 31 A.D.3d 54, 816 N.Y.S.2d 486 (N.Y. Ct. App. 2006).

31 A.D.3d 54 (Cruz v. McAneney) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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