Horon Holding Corp. v. McKenzie

775 A.2d 111, 341 N.J. Super. 117
CourtNew Jersey Superior Court Appellate Division
DecidedJune 6, 2001
StatusPublished
Cited by13 cases

This text of 775 A.2d 111 (Horon Holding Corp. v. McKenzie) 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
Horon Holding Corp. v. McKenzie, 775 A.2d 111, 341 N.J. Super. 117 (N.J. Ct. App. 2001).

Opinion

775 A.2d 111 (2001)

HORON HOLDING CORP., Plaintiff-Respondent,
v.
Barbara McKENZIE, Kenneth McKenzie, Defendants-Respondents, and
Jolie Conversion Corp., and Jolie Conversion Limited Partnership, Defendants,
Edward McKenzie, Intervenor-Appellant.

Superior Court of New Jersey, Appellate Division.

Argued May 9, 2001.
Decided June 6, 2001.

*113 Jonathan D. Clemente, Morristown, for intervenor-appellant (Clemente, Mueller & Tobia, attorneys; Mr. Clemente and Patrick D. Tobia, of counsel; Caroline L. Feeney and Eileen D. Pontaoe, on the brief).

Mark S. Winter for respondent Horon Holding Corp. (Shain, Schaffer & Raffanello, attorneys; Gary L. Maher, on the brief).

No other respondents filed briefs.

Before Judges WALLACE, JR., CARCHMAN and PARRILLO.

*112 The opinion of the court was delivered by CARCHMAN, J.A.D.

In this post-judgment collection matter, movant Edward P. McKenzie, a member of the bars of New Jersey, New York and South Carolina (movant), but neither a party nor attorney in the underlying action, appeals from an order denying his motion to quash a post-judgment discovery subpoena (subpoena). Plaintiff Horon Holding Corporation,[1] the judgment creditor, sought to compel movant to answer questions concerning the whereabouts of his brother and sister-in-law, the judgment-debtors, defendants Kenneth and Barbara McKenzie (defendants; Kenneth; Barbara) in order to facilitate the enforcement of plaintiff's multi-million dollar judgments against them.

Movant contends that the motion judge erred in denying his motion to quash and in ordering him to answer such questions because he has previously represented defendants in other matters in both New York and New Jersey, any information they may have conveyed to him concerning their addresses is protected by the attorney-client privilege, and: (1) plaintiff failed to demonstrate the propriety of and need for movant's deposition under the standard set forth in Kerr v. Able Sanitary and Environmental Services, Inc., 295 N.J.Super. 147, 158-59, 684 A.2d 961 (App.Div.1996); and (2) the order compels movant to violate the privilege and the attorney ethics rules and laws of New Jersey, New York, and South Carolina.

We disagree and conclude that the attorney-client privilege does not apply under these circumstances because defendants' flight from enforcement of the judgments and movant's cooperation in withholding their whereabouts to that end constitutes a fraud upon the court under Fellerman v. Bradley, 99 N.J. 493, 493 A.2d 1239 (1985), that movant's disclosure of that information does not breach his client confidentiality obligations under the Rules of Professional Conduct, and that New York and South Carolina law need not be considered.

*114 These are the integrated facts and procedural background of this appeal. Movant has represented defendants in various unspecified real estate transactions in both New York and New Jersey. On August 19, 1998, judgment on a promissory note was entered against Kenneth in favor of plaintiff in the amount of $4,376,734.87. On July 28, 1999, judgment on a related fraudulent conveyances claim was entered against both defendants in favor of plaintiff in the amount of $1,543,524.72. Although a restraining order was also entered to preclude their further transfers or conveyances of any assets, defendants, along with their assets, effectively vanished after the trial. Defendants' location has not been established, and a warrant has been issued for Barbara's arrest.

On March 3, 2000, plaintiff's attorney served a subpoena on movant pursuant to R. 4:59-1(e), commanding his appearance on March 22 with "[a]ll documents in [movant's] possession or in the possession of [his] firm which contain any information regarding any temporary or permanent residence, business or mailing address of Kenneth or Barbara McKenzie at any time subsequent to December 1, 1997." Movant moved to quash the subpoena alleging, in essence, that plaintiff was needlessly harassing him in light of the parties' postjudgment settlement negotiations and movant's prior attorney-client relationship with defendants.

Movant's certification stated, in relevant part:

I consider any and all information I have about Kenneth and/or Barbara McKenzie to be protected by the attorney/client privilege. Any information that I may have received at any time from either Kenneth or Barbara McKenzie has been expressed to me by them in their capacity as clients in conjunction with seeking and receiving legal advice from me as their attorney, with the express expectation that all such information remain confidential.
... As an attorney I am subject to the ethical rules and laws of New York, New Jersey and South Carolina. Additionally, I am subject to the American Bar Association Rules. In each instance ethical rules and laws prohibit me from disclosing client confidences.

According to plaintiff, the Florida address Kenneth provided in response to an information subpoena served at the May 1999 fraudulent conveyances trial belonged to a resort hotel where Kenneth no longer resided. Both before and after the trial, plaintiff employed a variety of measures to determine defendants' true address and the scope of their assets in order to enforce the judgments. These efforts included commissioning four separate asset and location searches by three private investigations firms, serving subpoenas on various financial institutions, performing title searches, consulting with postal employees, submitting numerous postal forwarding information requests, mailing numerous letters by regular and certified mail, analyzing the return notations, searching the internet for names, prior addresses, and telephone numbers, and deposing defendants' accountant. Despite their scope, those efforts were met with limited success. Although "some leads and potential addresses" had developed, along with information concerning an offshore trust maintained for Barbara's benefit, plaintiff was still uncertain of defendants' true address and had not yet discovered assets sufficient to satisfy the judgments. Plaintiff also noted that the litigation had not settled, and that plaintiff "ha[d] not agreed to forbear collection pending settlement negotiations."

*115 On May 12, 2000, Judge Moser denied movant's motion to quash and ordered movant's compliance, stating:

All right. I think it is clear from the record in this case that the plaintiff has been diligent in trying to collect this judgment, and has made considerable efforts in attempting to collect the judgment. And I think one of the things that is obviously needed, from the plaintiff's point of view, is the location of the defendant Kenneth McKenzie. There's a clear need for that information, and clearly, clearly Kenneth McKenzie has been avoiding divulging his location really throughout this matter. It was clear through the trial of the case that the assets were offshore. It was clear from the jury's verdict that he fraudulently transferred the properties that were here, and I am satisfied that [plaintiff] has sought this information, and at the present time it is not available from any other source.
Certainly, there is an attorney/client privilege which would attach to certain information that ... Edward McKenzie has, in the event that he has retained that information through representation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jill Devito v. 151 Route 72, LLC
New Jersey Superior Court App Division, 2024
Janelle Brugaletta v. Calixto Garcia, D.O.
153 A.3d 959 (New Jersey Superior Court App Division, 2017)
C.A. v. Bentolila
51 A.3d 119 (New Jersey Superior Court App Division, 2012)
Memory Bowl v. North Pointe Insurance
280 F.R.D. 181 (D. New Jersey, 2012)
Too Much Media, LLC v. Hale
993 A.2d 845 (New Jersey Superior Court App Division, 2010)
In Re Grand Jury Subpoena Issued to Galasso
913 A.2d 78 (New Jersey Superior Court App Division, 2006)
State v. Ray
859 A.2d 738 (New Jersey Superior Court App Division, 2004)
Seacoast Builders Corp. v. Rutgers
818 A.2d 455 (New Jersey Superior Court App Division, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
775 A.2d 111, 341 N.J. Super. 117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/horon-holding-corp-v-mckenzie-njsuperctappdiv-2001.