Julius v. Julius

727 A.2d 79, 320 N.J. Super. 297, 1999 N.J. Super. LEXIS 129
CourtNew Jersey Superior Court Appellate Division
DecidedApril 15, 1999
StatusPublished
Cited by6 cases

This text of 727 A.2d 79 (Julius v. Julius) 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
Julius v. Julius, 727 A.2d 79, 320 N.J. Super. 297, 1999 N.J. Super. LEXIS 129 (N.J. Ct. App. 1999).

Opinion

The opinion of the court was delivered by

LANDAU, J.A.D.

This appeal arises in the aftermath of a final judgment of divorce entered in an action commenced in the Chancery Division, Family Part by plaintiff Carole A. Julius (plaintiff) against defendant-third party plaintiff-appellant Robert J. Julius (defendant). Defendant does not contest the divorce judgment nor the property settlement agreement incorporated therein. He challenges the court’s award of fees to defendant/third-party respondent Anne W. Elwell, Esq., named by the court as his guardian ad litem during the divorce proceedings; the necessity for such appointment; and the dismissal of his third-party complaint against her. Defendant also seeks her nunc pro tunc discharge, and nunc pro tunc discharge of the custodial receiver and adjunct receiver appointed [299]*299pendente lite by the court to preserve and protect defendant’s foundry business, a closely held corporation, during the litigation at a time when defendant’s ability personally to do so was in serious question.

History of the Case

A year and a half after inception of this litigation, at a point where defendant had gone through major expenditures for some nine attorneys (not counting others who had been interviewed and rejected), and faced with yet another request for relief of counsel, the initial trial judge in this matter found that defendant was sufficiently “confused” to “warrant a psychological evaluation” as to his “mental and emotional circumstances”. The judge directed that defendant submit to a psychiatric evaluation by Dr. Allwyn Levine, who would advise the judge whether a guardian ad litem should be appointed on defendant’s behalf. The judge stated that if necessary, she would appoint Elwell, who happened to be present in the courtroom on another matter, as defendant’s guardian ad litem. The judge expressed concern that defendant’s

depletion of what may arguably be marital liquidity and marital funds in order to secure the services of very competent attorneys in this matter over the year-and-a-half, is a wasteful effort, even the attorneys would agree. And we just can’t permit it to go on any further, but I do want the benefit of Dr. Levine’s report before I impose on [defendant] ... [a guardian ad litem who] would be doing the decision making and negotiating and, in fact, securing the services of counsel.

The judge told defendant that if he failed to make an appointment with Dr. Levine by December 20, 1995, she would appoint a guardian ad litem to act on his behalf. An order was entered on December 20, 1995 after defendant appeared in court pro se. Although not finding defendant in contempt, the order indicated that “Mr. Julius ... seems to be suffering from some confusion as to what is expected of him in this matter and how to proceed----”

On December 29, 1995, based upon plaintiffs counsel’s representations that defendant had not complied with the December 20 order, the trial judge entered an order appointing Elwell as [300]*300guardian ad litem for defendant. Defendant did not attempt to appeal from this decision.

Thereafter, on January 12, 1996, defendant, accompanied by Kenneth Kirgin, a family friend, met with the psychiatrist. Dr. Levine concluded in his report that:

although [defendant] does not suffer from a mental condition sufficiently to render him incompetent in the sense of requiring hospitalization or not being able to cooperate with his attorney, there are significant issues which make the appointment of a guardian ad litem needed in this case.

Dr. Levine indicated that defendant was “suffering from an unspecified [sic] psychiatric problem which, in [his] opinion, renders [defendant] unable to proceed with the current divorce litigation”. Additionally, the doctor wrote that Kirgin had informed him that defendant was not “doing anything effective with the business [the foundry] and that day-to-day management is delegated ... to the vice-president, Theresa [Natoli]”.

On January 31, 1996, the judge ordered payment to Elwell of a $5,000 fee, and also a $5,000 retainer for an attorney to be selected by Elwell for Julius.

Thereafter, by letter dated February 14, 1996, Elwell informed defendant that she had selected Robert Penza, one of defendant’s former attorneys, to represent him in this action. Elwell alleged that she had chosen Penza because defendant had spoken highly of him at a December 15, 1995 hearing, and because he was an experienced matrimonial attorney who was already familiar with the case. When defendant objected to the appointment, Elwell agreed to consider any attorney selected by defendant. Thereafter, approximately fifteen attorneys contacted Elwell on defendant’s behalf and “expressed their belief that they had [defendant’s] confidence and would be able to represent him.” Because defendant did not sign a retainer agreement with any of those attorneys, Penza remained as defendant’s appointed attorney. Elwell also stated that she had “offered to have Mr. Penza’s representation reviewed by an attorney of [defendant’s] choice but explained that [she] could not relinquish [her] role and saw no reason to substitute anyone for Mr. Penza”.

[301]*301On April 3, 1996, plaintiff sought an order to show cause with temporary restraints. In support of that application, plaintiff set forth by certification that defendant had inherited fi"om his father a majority ownership interest in the foundry, and after expending over $600,000 in attorneys fees in a protracted contest over his father’s estate, had become the sole owner. She stated that defendant had “psychological and emotional problems” and that after they separated in 1990, defendant had lived in cheap motels or in the foundry. According to plaintiffs papers, defendant’s behavior had grown “more bizarre and more threatening”. She stated that during the week of March 25,1996, defendant “barricaded” himself in the foundry and refused to allow employees to enter, essentially shutting it down. She complained that defendant had “little, if any ability, to run the business due to his mental infirmities and the bizarre behavior that he exhibits regularly”. She requested that the judge appoint as a receiver, Theresa Natoli, the vice president and general manager of the foundry and “a long time trusted employee,” who, according to plaintiff, had “essentially” run the foundry since the death of defendant’s father in 1991.

Plaintiff also asserted that defendant was not capable of “handling his financial affairs”. For example, she said that defendant had failed to file a 1994 tax return even though it had been prepared. She further requested that the receiver continue to pay all of her household expenses, as defendant had previously done.

On April 3, 1996, the trial judge signed an order to show cause providing temporary restraints and relief, including the appointment of Natoli as receiver for the foundry. The order temporarily enjoined defendant from entering the foundry and relieved him of all administrative and management responsibilities. Defendant apparently appeared in court after the order had been signed. The return date of the order to show cause was set for May 10, 1996.

On April 4, 1996, Elwell informed Natoli by letter that she had been appointed as receiver. Elwell also wrote that “[sjince [defen[302]

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Bluebook (online)
727 A.2d 79, 320 N.J. Super. 297, 1999 N.J. Super. LEXIS 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/julius-v-julius-njsuperctappdiv-1999.