IN THE MATTER OF THE ESTATE OF JAMES J. GILLETTE (P-257014, MIDDLESEX COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided May 22, 2020·No. A-3739-18T4·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3739-18T4

IN THE MATTER OF THE ESTATE OF JAMES J. GILLETTE,

Deceased.

Argued telephonically May 11, 2020 – Decided May 22, 2020

Before Judges Geiger and Natali.

On appeal from the Superior Court of New Jersey, Middlesex County, Chancery Division, Docket No. P-

257014.

Abraham Borenstein argued the cause for appellant Chae Sun Pak (Borenstein, McConnell & Calpin, PC, attorneys; Abraham Borenstein and Bradley M. Arlen, on the briefs).

Joseph B. Fiorenzo argued the cause for respondents Lori Ann Gillette, individually and in her capacity as Executrix, Laura Koscinski and James J. Gillette, Jr.

(Sills, Cummis & Gross, PC, attorneys; Joseph B.

Fiorenzo, of counsel and on the brief; David Phillips and Kyle Vellutato, on the brief).

PER CURIAM

Plaintiff Chae Sun Pak appeals from an October 29, 2018 Probate Part order dismissing her complaint with prejudice and a March 20, 2019 order denying her motion for reconsideration. We affirm.

I.

We glean the following facts from the motion record. Prior to their marriage in November 2013, plaintiff and James J. Gillette (decedent) executed a prenuptial agreement (the Agreement) on August 29, 2013. Both parties were represented by independent counsel during the negotiation and execution of the Agreement.

The Agreement notes the following. The marital residence was owned by plaintiff and decedent as joint tenants with a right of survivorship and would automatically pass to the surviving joint tenant upon the death of the other. In addition, plaintiff and decedent each owned fifty percent of Pak Enterprises, Inc., a New Jersey corporation formed to own and operate a commercial building in Sayreville. Decedent agreed "to give and bequeath" his stock ownership interest in the corporation to plaintiff, whether or not she survived him as his spouse, unless she filed for divorce.

Decedent jointly owned a cooperative apartment in Manhattan (NY co-

op) with Janet Pak, plaintiff's daughter. Decedent agreed to transfer his A-3739-18T4

ownership in the NY co-op to plaintiff upon execution of the Agreement. In 2003, decedent loaned $500,000 to plaintiff to assist her in the acquisition of a dry-cleaning business in Brooklyn. Decedent agreed to forgive, release, and discharge the indebtedness and any interest due thereon upon execution of the Agreement.

Plaintiff was the beneficiary of the James J. Gillette Revocable Trust, whose sole asset was a $500,000 death benefit under decedent's retirement plan. Plaintiff agreed to release all rights to any interest in decedent's retirement plan and the James J. Gillette Revocable Trust.

The Agreement also notes plaintiff and decedent each owned separate property. In Article V of the Agreement, plaintiff waived the right to any interest she may acquire in decedent's separate property, including any right to take an elective share in decedent's estate:

[Plaintiff] hereby waives and releases any and all rights and claims of every kind, nature and description that [plaintiff] may acquire as [decedent's] surviving spouse in [decedent's] Separate Property (as defined in the Recitals), including (but not by way of limitation)

any and all rights in intestacy, and any and all rights of election to take against [decedent's] Last Will and Testament, under the laws of the State of New Jersey and any future amendments thereto.

Furthermore, [plaintiff] understands it is of utmost importance to [decedent] that this waiver

A-3739-18T4

specifically apply to interests in GILLETTE ENTERPRISES, INC., CENTRAL JERSEY CONTRACTORS, INC. and GILLETTE TOWERS, INC. which are now owned by [decedent], his said three (3) children, his grandchildren or any trusts for their benefit.

[(Emphasis added).]

Similarly, in Article IV, decedent waived any interest in plaintiff's separate property that he may acquire as a surviving spouse.

In Article VI, the parties mutually waived the right to equitable distribution in all separate property of the other party, including any property owned prior to the marriage. The waiver included any income derived therefrom and any capital appreciation accrued during the marriage. Finally, the parties mutually waived any past, present, or future claim for spousal support, alimony, and any claim for counsel fees upon termination of the marriage.

Attached as Exhibits "A" and "B" to the Agreement are "financial statements" identifying the assets and liabilities of decedent and plaintiff, respectively, as of December 31, 2012. Decedent's financial statement lists the value of fixed return investments (checking account, money market fund, life insurance cash value, and loans receivable), a variable-return investment (retirement plan), and personal assets (market value of Gillette Enterprises, Inc.; book value of Central Jersey Contractors, Inc.; Pak Industries/Best Cleaners A-3739-18T4

promissory note; Sayreville residence; Kissimmee, Florida residential unit (Florida Property); NY co-op; other personal assets; and estimated cash value of 50% interest in life insurance). It also listed the mortgage on the NY co-op as a liability. In addition, Article X indicates the parties—and their respective counsel—reviewed the financial statements prior to signing the agreement on August 26, 2013.

Decedent passed away on April 21, 2017. His will was admitted to probate and letters testamentary issued to his daughter, Lori Ann Gillette, on May 5, 2017. On May 11, 2017, a notice of probate was served upon all interested parties under the will, including plaintiff.

On September 18, 2017, plaintiff's counsel sent written notice to counsel for the Executrix stating that "[plaintiff] intends to enforce her elective share of the estate as [d]ecedent's surviving spouse." Plaintiff took no further action until July 12, 2018, when she filed a seven-count complaint that named Lori Ann Gillette, individually and as Executrix; Laura Koscinski, decedent's daughter; and James J. Gillette, Jr., decedent's son, as defendants and heirs-at-law of decedent's estate.

The complaint asserted claims for: dissolution of the Agreement (count one); an elective share against decedent's estate (count two);

A-3739-18T4

equitable/promissory estoppel against decedent's daughter-in-law, Chrissy Gillette (count three); equitable distribution of the sale proceeds of the Florida Property (count four); appointing plaintiff as ancillary executor of decedent's estate in the New York to probate decedent's joint ownership interest in the NYC co-op (count five); unjust enrichment (counts six and seven); and fraud (count seven). Plaintiff does not challenge the dismissal of counts three and five.

As to counts one and two, plaintiff alleged the Agreement is a product of fraud and is unconscionable because: "(1) [she] was not provided full and fair disclosure of the earnings, property and financial dealings and obligations of [d]ecedent; and (2) [she] did not have, or reasonably could not have had, an adequate knowledge of the property of financial obligations of [decedent]."

As to count four, plaintiff claimed she was entitled to the sale proceeds of the Florida property because she and "decedent intended for [it] to be a martial vacation home" and it "was solely in [d]ecedent's name for convenience only."

As to counts six and seven, plaintiff alleged "approximately $350,000 was transferred from Pak Enterprises, Inc. to Central Jersey Contracting" and spent on a new development known as Gillette Towers, LLC. It further alleged decedent and the Executrix engaged in improper transfer of funds and hiding investments, checks, and cash.

A-3739-18T4

The Middlesex County Surrogate issued an Order to Show Cause (OTSC)

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IN THE MATTER OF THE ESTATE OF JAMES J. GILLETTE (P-257014, MIDDLESEX COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

IN THE MATTER OF THE ESTATE OF JAMES J. GILLETTE (P-257014, MIDDLESEX COUNTY AND STATEWIDE) (IN THE MATTER OF THE ESTATE OF JAMES J. GILLETTE (P-257014, MIDDLESEX COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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