In re the Estate of Pavese

195 Misc. 2d 1, 752 N.Y.S.2d 198, 2002 N.Y. Misc. LEXIS 1540
CourtNew York Surrogate's Court
DecidedMay 30, 2002
StatusPublished
Cited by3 cases

This text of 195 Misc. 2d 1 (In re the Estate of Pavese) is published on Counsel Stack Legal Research, covering New York Surrogate's Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Estate of Pavese, 195 Misc. 2d 1, 752 N.Y.S.2d 198, 2002 N.Y. Misc. LEXIS 1540 (N.Y. Super. Ct. 2002).

Opinion

OPINION OF THE COURT

John B. Riordan, S.

A wise title company lawyer recently said that “death may be final, but divorce goes on for eternity” (Bagwell, Tenancy in the Entirety, NYLJ, Sept. 12, 2001, at 5, col 2). While Michael Pavese has gone to his final resting place before his divorce action was completed, he more than anyone might appreciate the irony that his death has not ended the problems of his marriage but eternally exacerbated them. Michael Pavese was a retired attorney who had worked many years as an editor of matrimonial law publications for West Publishing and was a contributor to the Law Revision Commission.

The issue now before this court is whether or not the stipulations or agreements he entered into with his spouse, Barbara Pavese, during their divorce action are valid and enforceable or did they “die” with Michael Pavese? Specifically, Barbara Pavese has petitioned for a determination that the stipulations or agreements made in the divorce action be declared void and [3]*3ineffective and that they be vacated, that all the funds held in certain United States Treasury accounts be released immediately to her as a joint tenant with right of survivorship or, alternatively, that at least half these funds be released to her immediately.

Factual Background

Barbara and Michael Pavese were married on April 5, 1981. On or about May 31, 2001 Michael Pavese moved out of the then marital home in Lloyd Harbor, Suffolk County, New York. He took up residence with Peter Pavese, his brother, in Massapequa, Nassau County, New York.

By a summons and complaint dated June 1, 2001, Michael Pavese commenced an action for divorce against Barbara Pavese. The action was assigned to the Honorable Justice Donald Blydenburgh, Supreme Court, Suffolk County, New York. In that action, the parties executed and entered into three stipulations dated June 18, 2001, August 2, 2001 and August 7, 2001. At the time of the separation on May 31, 2001, Michael and Barbara Pavese had over $10,000,000 in a United States Treasury direct account invested in various United States Treasury bills. The ownership of the account was denominated “Michael Pavese and Barbara Pavese with Right of Survivorship.” On June 18, 2001 in a written stipulation so ordered by Justice Blydenburgh, the parties agreed, inter alia, that $1,500,000 of their marital assets should be released to each of them, not to be subject to the claim of the other and representing a partial distribution of the marital assets. On August 2, 2001, Justice Blydenburgh so ordered another stipulation which again, inter alia, provided for the distribution of another $1,000,000 of the marital assets to each of the parties after payment to Michael Pavese of certain sums for his half share of the marital residence. In a further stipulation of settlement, acknowledged by the parties on August 7, 2001 and so ordered by the court on August 8, 2001, the parties agreed again, inter alia, to a further distribution of marital assets from the Treasury direct account of the sums of $1,750,000 to each immediately.

On August 12, 2001 Michael Pavese passed away. He was then residing with his brother, Peter Pavese, who thereafter offered his will for probate in this court. The petitioner herein, Barbara Pavese, has filed objections to the offered will and discovery has commenced in the probate proceeding moving toward a trial. In the interim, preliminary letters testamentary were issued to Peter Pavese on November 30, 2001.

[4]*4From the account statements attached as exhibit A to this petition, the August 3, 2001 balance was $8,570,000 and pursuant to the September 9, 2001 statement, $3,000,000 was redeemed on August 31, 2001 leaving a balance of $5,570,000. It appears, however, that none of the funds have been distributed to decedent, his estate representatives, or Barbara Pavese except for some earned interest. Pursuant to the orders of this court, that account remains under restraint until the validity of the stipulations in the divorce action are determined in order to protect the estate’s claim, if any, to these funds.

Procedural History of the Case

Following his death, an order to show cause was brought in this court by Peter Pavese, as the designated executor in Michael Pavese’s offered will and as coresiduary beneficiary. He was joined by his sister, Catherine Diana, the other coresiduary beneficiary. The order sought to restrain Barbara Pavese and her agents from disposing of any assets in her name, the name of Michael Pavese, or in their joint names. In a decision dated November 9, 2001, this court continued the temporary restraining order issued with the signing of that order to show cause on September 25, 2001 until the determination of that application for a preliminary injunction. Basically, the temporary restraining order has prevented Barbara Pavese from asserting any control over the treasury bond account, and from selling the house in Lloyd Harbor or the decedent’s Jaguar unless the funds were placed in escrow. While the order to show cause was pending, Barbara Pavese moved before Justice Blydenburgh for an order vacating all the stipulations in the divorce action on the grounds that the action had abated due to Michael Pavese’s death. This court found that the application for a preliminary injunction against these assets was premature, until the Supreme Court determined the validity of the stipulations entered in that court and so ordered by it. On December 31, 2001, the Supreme Court, considering this court’s decision, denied defendant Barbara Pavese’s motion on the grounds that the divorce action and all ancillary actions abate as the marital relationship no longer existed. The court found that determination of the validity of the stipulations was ancillary to the divorce action and the court could not make such an adjudication. The Supreme Court stated that the proper procedure for the defendant, Barbara Pavese, was to institute a plenary action to vacate the stipulations in that court or the Surrogate’s Court. Thereafter, in denying an ex parte order to [5]*5show cause by Barbara Pavese made in the pending probate proceeding, this court agreed with the Supreme Court that the relief she sought had to be made by the institution of a plenary action in the Supreme Court or by institution of a separate proceeding in this court. She has evidently chosen to bring this proceeding supported by her verified petition for the relief she now seeks.

This Court’s Jurisdiction

The estate has argued that Barbara Pavese cannot seek to set aside these stipulations by a mere application on motion because there is binding authority that a party cannot proceed to set aside a separation agreement except by commencing a plenary action (Deppe v Deppe, 287 AD2d 480). The estate asserts that the institution of a plenary action requires not only a plaintiff/petitioner but also a defendant/respondent to be named in the caption, that a plenary action may not be commenced by an order to show cause and that a complaint/petition must state a cause of action containing factual and legal grounds on which she seeks to have this court vacate three signed, notarized, and acknowledged contractual agreements. The estate submits that the defective caption and petition violates the CPLR and the State and Federal Constitutions because it fails to give due notice and an opportunity to be heard to any named defendant/respondent, and fails to set forth any factual and legal basis for the Surrogate’s Court to vacate these contractual agreements.

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Bluebook (online)
195 Misc. 2d 1, 752 N.Y.S.2d 198, 2002 N.Y. Misc. LEXIS 1540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-pavese-nysurct-2002.