In Re Trust Created by Agreement Dated December 20, 1961

765 A.2d 746, 166 N.J. 340, 2001 N.J. LEXIS 34
CourtSupreme Court of New Jersey
DecidedFebruary 15, 2001
StatusPublished
Cited by27 cases

This text of 765 A.2d 746 (In Re Trust Created by Agreement Dated December 20, 1961) 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
In Re Trust Created by Agreement Dated December 20, 1961, 765 A.2d 746, 166 N.J. 340, 2001 N.J. LEXIS 34 (N.J. 2001).

Opinion

The opinion of the Court was delivered by

VERNIERO, J.

This appeal involves a dispute among the offspring of J. Seward Johnson (Seward Sr.), son of the founder of the Johnson & Johnson corporation. It is one of many such disputes involving trusts or trust property that have arisen within the Johnson family over the past three decades. See Hill v. Estate of Richards, 142 N.J. 639, 667 A.2d 695 (1995); Wiedenmayer v. Johnson, 106 N.J.Super. 161, 254 A.2d 534 (App.Div.), aff'd sub nom. Wiedenmayer v. Villanueva, 55 N.J. 81, 259 A.2d 465 (1969).

Seward Sr.’s son, John Seward Johnson, Jr. (Seward Jr.), divorced his first wife in 1965. During the divorce proceeding, Seward Jr. acknowledged in writing that he was the father of Jenia Anne Josephine Johnson (Jenia). That acknowledgment is consistent with Jenia’s birth and baptismal certificates, each of which identifies the child’s father as Seward Jr. At the conclusion of the proceeding, the trial court found as fact that Seward Jr. was Jenia’s father and entered judgment accordingly.

Some thirty-five years after entry of that judgment, we are called on to determine whether Jenia’s parentage may be collaterally attacked by third parties seeking to defeat her existing status *345 as an eligible beneficiary under a trust established by Seward Sr. in 1961. The trial court foreclosed the third-party challenge, concluding that the prior adjudication of Seward Jr.’s paternity applied to the present administration of the trust. The Appellate Division disagreed, remanding the matter for further proceedings. We now reverse.

I.

The complete history of this case is extensive. We recite only those facts that are pertinent to this appeal. Seward Jr. married Barbara Eisenfuhr in Virginia City, Nevada, on September 16, 1956. Two years later, Seward Jr. adopted Barbara’s son, Bruce Alexander, who was born of a previous marriage. On January 11, 1961, Mrs. Johnson gave birth to Jenia in Princeton, New Jersey. Seward Jr. is listed as Jenia’s father on her birth certificate, as well as on a May 20, 1961, baptismal certificate. (The parties variously refer to Jenia as Jenny Anne or Jennie Anne Josephine Johnson, Rookie Johnson, and Jeniah Johnson. We refer to her as Jenia, the first name listed on her birth certificate.)

On December 20, 1961, Seward Sr. created an irrevocable charitable trust (the 1961 trust), naming four of his six children and eleven grandchildren as the trust’s measuring lives. In a trust instrument, a “measuring life” refers to the lives of individuals named by a grantor whose death as a group would terminate the trust. The 1961 trust expressly names Jenia for that purpose.

The trust was funded with 4,600 shares of Johnson & Johnson common stock. The trust directs the trustees to pay all net trust income to “educational, religious, or charitable organizations” until the earlier of January 10, 1997, or the deaths of Seward Sr.’s four named children and eleven named grandchildren. Thereafter, the trust authorizes the trustees, in their “absolute and uncontrolled discretion,” to distribute the trust’s proceeds to Seward Sr.’s four children, Mary Lea Johnson Ryan, Elaine Johnson Wold, Seward Jr., and Diana Melville Johnson Stokes, “their spouses, and their *346 issue, or any one or more of them[.]” The trial court summarized the trust’s distribution provisions as follows:

All of the net income from the 1961 Trust has been paid to charitable organizations since its creation on December [20], 1961. On January 10, 1997, the mandatory charitable phase of the Trust will conclude. Thereafter, the Trustees are authorized, in their absolute and uncontrolled discretion ... whenever they deem it to be for his or her best interests ..., to pay any and all of the income and corpus of the Trust “to and among the Grantor’s four children ..., their spouses, and their issue, or any one or more of them____” The Trust provides for its termination “upon the death of the last to survive of the Grantor’s ... four children ... and the Grantor’s eleven [named] grandchildren ...” and for the distribution of any remaining property, to .the Grantor’s children and their issue based upon a formula of survivors at a generational level.

As defined in the 1961 trust, “issue” includes “an adopted child and children[.]” Under the trust, Jenia would be considered the issue of Seward Jr. for purposes of distribution unless her parentage was successfully contested. Because several of the persons named as measuring lives are still living, the mandatory charitable phase of the trust concluded on January 10, 1997. According to the Appellate Division, the value of the trust is estimated at $350,000,000.

Seward Jr. filed a complaint for divorce in 1962, asserting as grounds his wife’s alleged cruelty (which included allegations of desertion) and adultery. To prove the adultery claim, Seward Jr. sought and obtained an order from the Chancery Division directing that Jenia and the parties submit to blood tests in advance of trial. The Appellate Division reversed that directive, concluding that it was premature. In an opinion written by Judge Conford, the court stated that

an infant, as ward of the court acting as parens patriae, is entitled to its discretionary protection from the threats in respect of its legitimacy and property rights involved in the taking of blood grouping tests in these circumstances unless and until no alternative is left to such action in the performance of the court’s paramount objective to ascertain the truth in order to do justice in deciding the controversy between the parties hereto.

The panel remanded the matter, directing that the trial court consider other evidence of Mrs. Johnson’s alleged adultery prior to considering Seward Jr.’s blood-test application.

*347 Thereafter, Seward Jr. admitted that he was Jenia’s father and signed a document entitled “ACKNOWLEDGMENT OF PATERNITY.” That acknowledgment states in relevant part: “TO WHOM IT MAY CONCERN: The Undersigned, JOHN SEWARD JOHNSON, JR____ hereby unequivocally acknowledges paternity of Jennie Anne Josephine Johnson ... born of Barbara E. Johnson at Princeton, New Jersey, on January 11, 1961.” The document was signed, witnessed, and notarized on March 3, 1965.

The trial court granted the divorce on the ground of Mrs. Johnson’s desertion. The court also made several findings of fact, including “[t]hat Jennie Anne Josephine Johnson was duly born of the marriage.” Additionally, the judgment nisi entered at the conclusion of the proceedings provides that “the paternity of [Seward Jr.] as the father of the infant, Jennie Anne Josephine Johnson, born January 11, 1961, is hereby adjudicated.” (A judgment nisi is an interim decree that ripens into a final judgment unless challenged.. Black’s Law Dictionary 944 (5th ed.1979).) Because neither Seward Jr.

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765 A.2d 746, 166 N.J. 340, 2001 N.J. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-trust-created-by-agreement-dated-december-20-1961-nj-2001.