In Re Estate of Vnencak

942 A.2d 121, 398 N.J. Super. 464
CourtNew Jersey Superior Court Appellate Division
DecidedFebruary 29, 2008
StatusPublished

This text of 942 A.2d 121 (In Re Estate of Vnencak) 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
In Re Estate of Vnencak, 942 A.2d 121, 398 N.J. Super. 464 (N.J. Ct. App. 2008).

Opinion

942 A.2d 121 (2008)
398 N.J. Super. 464

In the Matter of the ESTATE OF Mary Margaret VNENCAK, Deceased.

Superior Court of New Jersey, Appellate Division.

Submitted December 17, 2007.
Decided February 29, 2008.

*122 Trautmann and Associates, L.L.C., Rockaway, attorneys for appellant/cross-respondent the Estate of Mary Margaret Vnencak, and Daniel Vnencak, Administrator (Gregg D. Trautmann, on the brief).

Cohn Lifland Pearlman Herrmann & Knopf, L.L.P., Cherry Hill, attorneys for respondent/cross-appellant Andrew Vnencak (Charles R. Cohen, on the brief).

Before Judges PARRILLO and GRAVES.

PER CURIAM.

Daniel Vnencak (Daniel), Administrator C.T.A. of the Estate of Mary Margaret Vnencak (Estate) appeals from an order dated February 14, 2007, which enforced a Settlement Agreement and Mutual General Release (Settlement Agreement) and required the Estate to pay counsel fees and costs to Daniel's brother, Andrew Vnencak (Andrew), in the amount of $20,000. In his cross-appeal, Andrew contends the court "misused its discretion" when it awarded him counsel fees and costs in the amount of $20,000, instead of "the full $24,336.34 to which he is entitled." After considering these contentions in light of the record and the applicable law, we affirm.

For the sake of clarity some background information is in order. We begin by recounting the relationship of the members of the family whose affairs are involved in this appeal. Mary Margaret Vnencak (Mary), now deceased, was the mother of Thomas Vnencak (Thomas). Thomas has two sons, Daniel and Andrew, both adults. Joseph Runyans (Runyans), also an adult, is the grandson of Mary, nephew of Thomas, and cousin of Daniel and Andrew. Finally, Daniel Vnencak has a son, Jonathan Vnencak (Jonathan), who is a minor and beneficiary under Mary's will of half the cash assets of her Estate.[1]

Prior to her death, Mary's son Thomas was her power of attorney, and in that capacity, Thomas initiated prosecution of a claim on Mary's behalf against her grandson, Runyans, for the theft of approximately $400,000, which Mary had held in certificates of deposit. Mary died on March 11, 2000, and pursuant to her Last Will and Testament, dated November 6, 1998, Andrew was appointed Executor of *123 her Estate. As Executor, Andrew, through attorneys H. Neil Broder (Broder) and Gary N. Marks, continued to pursue the Estate's claims against Joseph Runyans. On November 28, 2000, Andrew and Runyans entered into a settlement agreement (Runyans Settlement) whereby Runyans received $200,000 and the Estate received $190,000, with any remaining balance left in the certificates of deposit being "divided equally between Runyans and the Estate."

On March 15, 2001, Broder issued two checks, each for $97,132.06, from his attorney trust account, to Thomas and Andrew, representing the funds recovered from the Runyans Settlement. Following the advice of Broder, neither Andrew nor Thomas turned these funds over to the Estate. Instead, they kept the money for personal use.[2] On October 1, 2001, Daniel commenced an action on behalf of his son Jonathan, against Andrew, alleging the funds Andrew received from the Runyans Settlement were cash assets of the Estate.

While Daniel's lawsuit against Andrew was pending, Broder filed a lawsuit against the Estate and Andrew for attorney's fees in the amount of approximately $5,000 (Broder Fee Suit). On June 4, 2004, Andrew and the Estate, represented by Charles R. Cohen (Cohen), answered Broder's complaint and counterclaimed for negligence and breach of contract in relation to the Runyans Settlement. Also, on June 11, 2004, Andrew, individually and as Executor of the Estate, commenced an action against his father, Thomas (Thomas Vnencak Suit), to recover the $97,132.06 Thomas received from the Runyans Settlement.

On June 14, 2004, Andrew resolved the lawsuit Daniel had filed against him by entering into the Settlement Agreement that is the subject of this appeal. Pursuant to paragraph four of the Settlement Agreement, Andrew resigned as Executor of the Estate and agreed, subject to approval by the court, that Daniel would serve as Administrator C.T.A. of the Estate. In addition, the Settlement Agreement provided that Andrew was to pay to the Estate the total sum of $260,000, allocated as follows:

[1]A. $97,132.06 representing the return of funds distributed to Thomas Vnencak by H. Neil Broder, Esq. from the [Runyans Settlement] . . . ;
[1]B. $97,132.06 representing the return of funds distributed to [Andrew] by H. Neil Broder, Esq. from the settlement of the Runyans Suit; and
[1]C. $65,735.88 representing fees and costs incurred by [Daniel in pursuing the Estate's claim against Andrew].
[(Emphasis added).]

In paragraph five of the Settlement Agreement, Daniel, "as anticipated Administrator C.T.A. of the Estate of Mary Margaret Vnencak" agreed:

[5]B. To use his best efforts to diligently pursue and collect on all claims of the Estate (i) against H. Neil Broder, Esq., set forth in the Broder Fee Suit, (ii) against Thomas J. Vnencak as set forth in the Thomas Vnencak Suit and (iii) against Gary Marks, Esq.;
[5]C. To promptly indemnify [Andrew] for that portion of his payment as set forth in Paragraphs 1A and 1C above, on a dollar-for-dollar basis, as is attributable to the *124 funds recovered by the Estate in the action prosecuted in the name of the Estate against Thomas Vnencak in the Thomas Vnencak Suit; and
[5]D. To promptly indemnify [Andrew] for that portion of his payment as set forth in Paragraphs 1C above, on a dollar-for-dollar basis, as is attributable to the funds recovered by the Estate in the action(s) prosecuted in the name of the Estate against H. Neil Broder, Esq., . . . [and] against Gary Marks, Esq.
[(Emphasis added).]

Furthermore, paragraph twenty of the Settlement Agreement required the parties to "fully cooperate with each other in any manner with regard to the further administration of the Estate, the further prosecution of the . . . Broder Fee Suit, Thomas Vnencak Suit, [and] any action against Gary Marks."

In accordance with paragraph ten of the Settlement Agreement, the parties were to "pay their own attorney's fees and costs related to the prosecution and defense of this matter." But paragraph fifteen provided as follows:

LEGAL FEES ON DEFAULT: Should any Party default on any obligation he may have agreed to hereunder necessitating the non-defaulting Party's seeking judicial intervention to enforce his rights under this Agreement, and the action seeking, judicial intervention is found to be meritorious by a court of competent jurisdiction, then and in that event, the defaulting Party agrees to pay the reasonable attorney's fees and costs associated with such action 20 days after the end of time to file an appeal from such finding.

On June 21, 2004, Judge Cramp signed a consent order, which dismissed all claims against Andrew, individually and as personal representative of the Estate, and implemented the provisions of the Settlement Agreement. On June 23, 2004, Greg D. Trautmann (Trautmann), Daniel's attorney, was substituted for Cohen as counsel for the Estate in the Broder Fee Suit.

On July 14 and December 22, 2004, the Estate, now represented by Daniel and Trautmann, amended the counterclaim against Broder, which was originally filed by Andrew and Cohen.

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Bluebook (online)
942 A.2d 121, 398 N.J. Super. 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-vnencak-njsuperctappdiv-2008.