Lobatto v. Lobatto

109 A.D.2d 697, 487 N.Y.S.2d 326, 1985 N.Y. App. Div. LEXIS 47184
Appellate Division of the Supreme Court of the State of New York·Decided March 28, 1985·Published·Cited by 6 cases

Opinion

— Order, Supreme Court, New [698]*698York County (Hortense Gabel, J.), entered July 18,1984, granting plaintiff wife $3,105 for unpaid medical expenses, granting plaintiff exclusive use of the parties’ Vermont summer home during August 1984 and alternate months thereafter, directing defendant to make available an automobile for plaintiff’s exclusive use during the period in which she is using the Vermont home, denying defendant’s request for a protective order with respect to interrogatories, and awarding plaintiff $750 counsel fees on the motion, unanimously modified, on the law, the facts and in the exercise of discretion, by partially granting a protective order only to the extent of striking interrogatories numbered 2, 6, 7 (c), 33 (b), 53, 64-65 and 71, and otherwise affirmed as subsequently modified on reargument, without costs.

Order, Supreme Court, New York County (Hortense Gabel, J.), entered October 2, 1984, on reargument, awarding plaintiff an additional $15,000 as interim counsel fees, unanimously affirmed, without costs.

The parties were married in 1962. There are no issue of the marriage, each party having two emancipated children from prior marriages. Primarily at issue on this appeal is the propriety of lengthy interrogatories served by plaintiff. There are 73 interrogatories, broken down into 315 subdivided questions, some of which themselves call for multiple answers. Some of these interrogatories are boilerplate questions which, with any degree of responsible formulation, should have been eliminated by plaintiff’s attorney. For example, interrogatory number 2 seeks detailed data on children born or adopted during the marriage. The fact that there are no issue of this marriage is conceded in the pleadings. Such irrelevancies may render an éntire set of interrogatories burdensome and oppressive. The appropriate remedy is not judicial pruning, but vacatur of the interrogatories in their entirety (see, e.g., Brandon v Chefetz, 101 AD2d 786; Metzger v Brockman, 92 AD2d 499, 500).

Unfortunately, however, lengthy and detailed interrogatories may be necessitated by the complexity of the case at hand or the unwillingness of a party to furnish plainly requisite information. Here, both factors are at work. The casé has been here previously. It was then clearly established that the husband earned approximately $125,000 per year and had assets of at least $2.5 million and that the wife had neither independent income nor assets of her own (102 AD2d 728). Defendant has placed his entire financial and property holdings in issue by asserting that plaintiff has absolutely no entitlement to any of these holdings. Specifically, defendant owned three real estate properties when he entered into the marriage with plaintiff, two [699]*699of which he still retains. During the marriage of 22 years’ duration, he acquired 12 additional properties. Defendant insists that all of these acquisitions were generated from his own assets. Thus, the 12 new properties, which appreciated in value during the course of the marriage from $500,000 to $3.2 million, should, according to defendant, be considered separate property of his rather than marital property for the purpose of equitable distribution.

Defendant furnished a list of his 14 properties and the percentage he owns of each. Plaintiff seeks a net worth statement that gives the date of acquisition, cost, fair market value, and the existence, date and amount of any lien on each of these properties, in accordance with 22 NYCRR 117.2. She sought such data through interrogatories — acquisition date, cost, financing, rental income, expenses, etc. — and a demand for copies of deeds, closing statements and appraisals. Defendant responded that all these properties currently held were either purchased prior to the marriage or resulted from refinancing of properties owned prior to the marriage.

Domestic Relations Law § 236 (B) (4) provides for compulsory financial disclosure in matrimonial proceedings where support is in issue, without any showing of special circumstances for such disclosure. In the interest of an orderly trial of the issue of equitable distribution, the statute requires broad disclosure in the form of a “searching exploration of [the parties’] assets and financial dealings, including their interests in business entities, at the time of and during the marriage.” (Rubin v Rubin, 87 AD2d 587.)

The purpose of such a probe is to allow a determination as to what constitutes marital property, to distinguish it from separate property, uncover hidden assets of the marriage, and generally gather any information bearing on the issue of equitable distribution. “The entire financial history of the marriage must be open for inspection by both parties. It is simply no longer true that the current financial status of the parties is all that counts.” (Roussos v Roussos, 106 Misc 2d 583, 585.)

This broad discovery device in matrimonial actions, without the requirement of any showing of special circumstances, is a fairly recent development in New York law. Since 1975, with the enactment of Domestic Relations Law former § 250, the requirement of a showing of special circumstances was eliminated as a prerequisite to compulsory disclosure in matrimonial actions where financial support is in issue. As a result, this is now an area ripe for discovery under CPLR 3101, which may be directed not just to property held at the commencement of the [700]*700action, but also to holdings and financial resources of a party going back over a considerable period of time. It is plain that in complicated equitable distribution cases the use of interrogatories as an initial discovery device is often the best and most realistic tool for full and expeditious financial disclosure. In Kaye v Kaye (102 AD2d 682), the court held that a proper assessment of the “entire financial history of the marriage is open for examination by either party” (p 691) and might very well require an examination of financial conditions “during the period just prior to and during the marriage” (p 690; see also, in general, 3A Weinstein-Korn-Miller, NY Civ Prac ¶ 3101.19).

It cannot be denied that this is a lengthy set of interrogatories. But this is also a lengthy and difficult case (cf. Woodmere Academy v Steinberg, 51 AD2d 514), made so by defendant’s position that all of his assets amassed over the course of this more than 20-year marriage are separate property belonging solely to him. Only by a detailed tracing of the sources of these assets and their increase in value can such a position be sustained. Defendant asserts he is prepared to demonstrate that his 12 acquired properties all sprung from assets separately held prior to the marriage. The only way plaintiff can challenge that assertion is to have evidence of the financial sources of these assets. For example, when defendant learned of an impending real estate cooperative conversion, he obtained a leasehold interest in an apartment in the building at an insider price. He put the apartment in the names of his daughter and her husband. Plaintiff has a right to know the financial background of this investment and the result of the transaction.

The fact that plaintiff also seeks to depose defendant should not preclude defendant’s response to interrogatories. In a case of such complexity, plaintiff is entitled to sufficient information, through interrogatories, to provide a basis for a meaningful and fruitful deposition. (See, Comstock & Co. v City of New York, 80 AD2d 805, 807; cf. Cunningham v Hagedorn,

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Lobatto v. Lobatto, 109 A.D.2d 697, 487 N.Y.S.2d 326, 1985 N.Y. App. Div. LEXIS 47184 (N.Y. Ct. App. 1985).

109 A.D.2d 697 (Lobatto v. Lobatto) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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