Imo the Estate of Adrian J. Folcher, Jr. (074590)

135 A.3d 128, 224 N.J. 496, 2016 N.J. LEXIS 330
CourtSupreme Court of New Jersey
DecidedApril 26, 2016
DocketA-3-14
StatusPublished
Cited by34 cases

This text of 135 A.3d 128 (Imo the Estate of Adrian J. Folcher, Jr. (074590)) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Imo the Estate of Adrian J. Folcher, Jr. (074590), 135 A.3d 128, 224 N.J. 496, 2016 N.J. LEXIS 330 (N.J. 2016).

Opinions

Justice LaVECCHIA

delivered the opinion of the Court.

In In re Niles Trust, 176 N.J. 282, 298-99, 823 A.2d 1 (2003), this Court created a narrow exception to the American Rule and allowed attorneys’ fees to be assessed against an executor or a trustee who “commits the pernicious tort of undue influence.”

This appeal centers on challenges to several documents and disbursements that were purportedly executed by Adrian Foleher [499]*499in the closing days of his life. Petitioner Bernice Tambascia-Folcher, Folcher’s wife and a beneficiary in a “confidential relationship” with her aged and vulnerable husband, used that relationship to commit a pattern of fraud, forgery, and undue influence near the end of his life. After the conclusion of a lengthy estate contest, the trial court invoked that relationship, coupled with its finding of undue influence, to shift the Estate’s counsel fees to Bernice.

We, however, decline to expand the Niles exception to a person who does not owe a fiduciary responsibility to the Estate and its beneficiaries, no matter how repugnant the conduct. Because that confidential relationship endowed Bernice with an obligation to only her husband, and not the Estate, a fee award was not the proper vehicle to do equity. The trial court had other, unused means at its disposal for that. We remand to the trial court to vacate the fee award and to allow the court to consider other equitable relief that was foregone because fee-shifting mistakenly became an integral part of the court’s equitable remedy.

I.

This case focuses on a series of acts taken by petitioner that expanded her beneficial interest in her husband Adrian Folcher’s estate. Our summary of those events reflects the facts as found by the trial court, except where direct reference otherwise is made to the record.1

Folcher and his first wife had three children: Mary Lee, Thomas, and Patricia. Following the death of his first wife in mid-2002, Folcher married Bernice that same year. Folcher and Bernice had been living together in her Cherry Hill home since [500]*500approximately 1992, although Folcher remained married in name to his first wife. Bernice had two children from a prior marriage.

A post-marital agreement between Folcher and Bernice provided that their incomes would remain separate, that they would share expenses associated with Bernice’s Cherry Hill home, and that any real estate they owned jointly would be held in trust for the benefit of the surviving spouse until his or her death.

With the assistance of his attorney, Folcher executed a will in November 2003, (November 2003 Will), naming Mary Lee executor. In conjunction with that will’s execution, Folcher and Bernice wrote a letter to the attorney expressing their wishes about distribution of personal property; specifically, Folcher’s boat, pickup truck, and car were to be bequeathed to his children.

In January 2006, Folcher had his attorney revise his will (January 2006 Will). Mary Lee remained the executor, but Folcher’s revised will directed that any property not distributed by an attached memorandum, which specifically bequeathed certain items of personal property including the earlier mentioned boat and motor vehicles, would pass to Bernice.

In March 2007, Folcher had his attorney draft a deed for Bernice’s Cherry Hill home in which Bernice transferred the home to him and Bernice as “tenants in common,” and not as “joint tenants with the right of survivorship” (March 2007 Deed).2 Thus, upon his death, Folcher’s one-half interest in the home would pass to his estate, not to Bernice. Folcher believed that he had materially contributed to the Cherry Hill home while he resided there and wanted his interest in the home protected for his children’s benefit. The deed was executed and recorded in Camden [501]*501County on September 7, 2007. Shortly thereafter, Folcher’s health rapidly deteriorated.

In mid-September 2007, suffering from metastasized kidney cancer, Folcher was temporarily hospitalized. He was discharged to return home on September 22, 2007, knowing that further treatment, other than hospice care, was of no use. He was prescribed a combination of potent pain medications whose administration Bernice controlled and dispensed with enough randomness that the trial court found it difficult to discern whether Folcher was under- or over-medicated at times during the end of his life. He was wheelchair-confined, needed oxygen support, suffered from bed sores, and generally relied on Bernice for his basic daily care. During the final week of his life, his sister Rita Coghlan noted that he seemed tired and had trouble breathing and speaking. His condition was confirmed by the testimony of Dr. Mark Testa, whom the trial judge found credible.

Based on the testimony of Mary Lee, the trial court found that on Friday, September 28, Folcher told Mary Lee, by phone, that Bernice would not allow her to visit, and he further stated, “I can’t fight [Bernice] anymore. It’s too late for that.” Bernice admitted that she told Folcher’s family not to visit him on September 29, because she said she wanted private time with him. Yet she later told Mary Lee’s husband that he could bring the grandchildren for a visit during the afternoon of Saturday, September 29 to watch a baseball game.

During those two pivotal days — September 28 and 29, 2007 — a number of actions were taken in relation to Folcher’s estate. On September 28, Folcher purportedly executed two codicils to his January 2006 Will. Codicil # 1 stated, “I affirm my last will and testament dated January 19, 2006, to be my wishes. I want my wife Bernice [Tambascia-JFolcher to have all personal property and all items in our home.” Codicil # 2 was a copy of Codicil # 1 with the above whited-out and replaced by the following handwritten statement: “I want my spouse Bernice Tambascia[-Folcher], to have all personal acets./property [and] all items in our home.” [502]*502According to Bernice’s testimony explaining the two codicils, Foleher directed the preparation of Codicil # 1 on September 28, and then she prepared Codicil # 2 on the same day after Foleher rejected the first as not properly expressing his wishes.

On the morning of September 29, Bernice and her daughter, Desiree, moved Foleher into a car and drove him to a local branch of Wachovia Bank in Maple Shade. According to Bernice, the following transpired: Bernice requested that a bank employee, who also was a notary, exit the bank building, go to Foleher seated in the car in the bank parking lot, and notarize documents that Foleher would sign in the car. Bernice testified that the employee, Mileva Boncic, came outside and notarized a document. Desiree testified that the witnesses to the signing remained inside the bank and observed Foleher sign the document while watching through the bank’s window and that the witnesses’ signatures were affixed when the document was taken inside the bank. The document that purportedly was notarized in this fashion was a new deed to the Cherry Hill home (September 2007 Deed).

The trial court found that the September 2007 Deed was drafted by Bernice using the March 2007 Deed as a template. The September 2007 Deed made Foleher and Bernice owners as “joint tenants with the right of survivorship,” instead of “tenants in common” as the March 2007 Deed provided.

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Bluebook (online)
135 A.3d 128, 224 N.J. 496, 2016 N.J. LEXIS 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/imo-the-estate-of-adrian-j-folcher-jr-074590-nj-2016.