JANET YIJUAN FOU VS. KEVIN KERVENG TUNG, PC (L-6259-12, MIDDLESEX COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided August 25, 2021·No. A-4690-18·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-4690-18

JANET YIJUAN FOU, Plaintiff-Respondent,

v.

KEVIN KERVENG TUNG, PC, and KEVIN TUNG, ESQ.,

Defendants-Appellants.

Submitted February 3, 2021 – Decided August 25, 2021 Before Judges Ostrer, Accurso, and Vernoia.

On appeal from the Superior Court of New Jersey, Law Division, Middlesex County, Docket No. L-6259-12.

Lewis Brisbois Bisgaard & Smith, LLP, attorneys for appellant Kevin Kerveng Tung, PC (James M. Strauss, on the brief).

Kevin Tung, Esq., appellant pro se.

Pashman Stein Walder Hayden, PC, attorneys for respondent (James A. Plaisted and Michael J. Zoller, on the brief).

PER CURIAM Following a jury trial and verdict in this legal malpractice case, the court entered a January 11, 2019 final judgment against defendants Kevin Kerveng Tung, P.C. (Tung, P.C.) and Kevin Tung, Esq. (Tung) imposing joint and several liability for $1,547,063.31 in damages ($500,000), attorney 's fees ($702,000), prejudgment interest on the jury's damages award ($65,250), and prejudgment interest on the award for attorney's fees and costs ($279,813.31). Defendants appeal from the final judgment; a June 25, 2018 order denying their motion for judgment notwithstanding the verdict or a new trial; a May 22, 2019 order denying their motion for reconsideration of the court's January 28, 2019 order striking paragraph four of a December 27, 2018 order relating to purported double recovery; and various evidentiary rulings made by the trial court. Based on our review of the record and the arguments of counsel in light of the applicable legal principles, we affirm in part, vacate in part, and remand for further proceedings.

I.

The legal malpractice claim against defendants arises out of Tung, P.C.'s and Tung's representation of plaintiff Janet Yijuan Fou in a matrimonial case

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against plaintiff's former husband, Joe Fou (Fou).1 Based on the malpractice trial record, we first summarize the facts pertinent to the matrimonial matter and then detail the facts concerning the malpractice case. Tung's Representation of Plaintiff in the Matrimonial Action Married in 1975, plaintiff and Fou discussed dissolving their marriage in 2007. On September 22, 2007, they signed an agreement written in Chinese expressing their intention to divorce and providing that plaintiff would receive approximately $400,000, representing one-half of the marital assets, and $10,000 annually in support payments. 2 Shortly thereafter, plaintiff discovered what she described as a draft will on Fou's computer showing the family had personal and business assets totaling more than $2,200,000. Around the same time, plaintiff found encrypted computer records that she later learned in 2013 described family business assets valued at $2,200,000. In November 2007, plaintiff and Fou signed another agreement written in Chinese stating plaintiff had received $400,000 and other

1 Tung was employed by Tung, P.C. during his representation of plaintiff in the matrimonial action. The record shows that subsequent to the entry of the final judgment in this matter, Tung, P.C. filed for bankruptcy and has advised it is currently a debtor in possession. 2 English translations of plaintiff's and Fou's putative agreements, which were written in Chinese, were admitted in evidence at trial.

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property, and providing that the assets of the family business would be "counted separately."

In 2009, Fou contacted Tung at Tung, P.C., and arranged a meeting to discuss the filing of an action for an uncontested divorce. On February 15, 2009, plaintiff and Fou met with Tung. They brought a tax return reflecting Fou's income, and a typewritten page that included biographical information. During the meeting, Tung did not inquire about Fou's business or Fou's and plaintiff's assets. It was decided Tung would represent plaintiff in the divorce matter; Fou would be the named defendant in the case; and Fou would appear as a self- represented litigant in the matter.

Plaintiff and Fou brought two new agreements written in Chinese to the February 15, 2009 meeting with Tung. One of the agreements, labeled "Divorce Agreement," provided that Fou would pay plaintiff one-third of his salary as alimony in four installments each year, and plaintiff and Fou would share the tuition expenses of their younger son and maintain the marital home until their older son married. The Divorce Agreement further stated plaintiff and Fou had completed the division of family assets but agreed the "real property and company assets [were] to be accounted for separately." According to plaintiff, she and Fou signed three copies of the Divorce Agreement in Tung's presence,

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Tung notarized their signatures, and she, Fou, and Tung each retained a copy of the agreement. Plaintiff testified Tung retained a copy of the agreement because he was to translate it into English and incorporate its terms into the divorce property settlement agreement.

During the February 15, 2009 meeting, plaintiff and Fou also signed a second agreement, labeled "Supplemental Divorce Agreement," but they did not show the agreement to Tung or give him a copy. The agreement, which was written in Chinese, provided that upon the "close of business" of the family's company, "G&E," plaintiff would receive one-half of the business's assets. The agreement also provided that plaintiff would assist in the ongoing operation of the business, and Fou would pay $20,000 into plaintiff's and Fou's medical expense fund.

Less than two weeks later, on February 27, 2009, plaintiff and Fou again met with Tung. At the meeting, Fou presented Tung with a putative retainer agreement for Tung's representation of plaintiff in the divorce proceeding. Tung later testified he was unaware of New Jersey Court Rule 5:3-5 that required he have a retainer agreement with plaintiff as his client in the divorce case. The agreement Fou presented states Tung "acts as the attorney" for plaintiff, but the agreement did not define or limit the scope of his representation of her. Tung

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testified he was retained solely to act as a scrivener of the terms for the uncontested divorce, preparing the documents necessary to reflect the agreement plaintiff and Fou had reached on their own. Plaintiff testified at the malpractice trial that Tung never advised her of any limitations on his representation of her in the matrimonial action.

During the meeting, Tung presented plaintiff and Fou with various documents, written in English, that he and another employee at Tung, P.C. prepared, including a proposed summons and complaint for divorce, a case information statement (CIS), and a property settlement agreement (PSA). Tung reviewed the documents in plaintiff's and Fou's presence. The CIS listed gross family assets of $234,688 and a prior year's joint income of $77,536.

Plaintiff and Fou signed the PSA, which stated they made a full disclosure of all assets and income to each other. The PSA further stated that, beginning in January 2009, Fou would pay one-third of his annual salary as alimony to plaintiff; each party was responsible for his or her own debts; plaintiff and Fou would maintain the marital home until their older son married; and plaintiff and Fou would retain all other assets in their possession with "no further equitable distribution." The PSA was consistent with the Divorce Agreement plaintiff and Fou signed on February 15, 2009, and gave to Tung, except the PSA did not

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make a provision separately addressing plaintiff's and Fou's real property and company assets, and the PSA precluded further equitable distribution of their assets.

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JANET YIJUAN FOU VS. KEVIN KERVENG TUNG, PC (L-6259-12, MIDDLESEX COUNTY AND STATEWIDE), (N.J. Ct. App. 2021).

JANET YIJUAN FOU VS. KEVIN KERVENG TUNG, PC (L-6259-12, MIDDLESEX COUNTY AND STATEWIDE) (JANET YIJUAN FOU VS. KEVIN KERVENG TUNG, PC (L-6259-12, MIDDLESEX COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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