N.M. VS. J.M. (FM-14-0150-15, MORRIS COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided April 29, 2019·No. A-2131-17T2·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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-2131-17T2

N.M., Plaintiff-Respondent,

v. J.M.,

Defendant-Appellant.

Submitted March 11, 2019 – Decided April 29, 2019 Before Judges Messano and Gooden Brown.

On appeal from Superior Court of New Jersey, Chancery Division, Family Part, Morris County, Docket No. FM-14-0150-15.

Einhorn, Harris, Ascher, Barbarito & Frost, PC, attorneys for appellant (Bonnie C. Frost, of counsel and on the briefs; Kristi L. Terranova, on the brief).

Laufer, Dalena, Jensen & Bradley, LLC, attorneys for respondent (James C. Jensen, of counsel; Gregory D. R.

Behringer, on the brief).

PER CURIAM

In this matrimonial matter, defendant (ex-husband) appeals from a December 11, 2017 Family Part order, entering a final judgment of divorce (FJOD). The FJOD incorporated the parties' marital settlement agreement (MSA), addressing issues related to the dissolution of the marriage, and two arbitration orders, dated April 11 and July 26, 2017, pertaining principally to alimony. On October 23, 2017, the trial court entered an order, denying defendant's motion to modify the July 26 arbitration award and granting plaintiff's (ex-wife's) motion to confirm both arbitration awards.

On appeal, defendant raises the following points for our consideration:

POINT I

THE ARBITRATOR'S REFUSAL TO CONSIDER MATERIAL EVIDENCE, MISCONDUCT[,] AND VIOLATION OF THE PARTIES' ARBITRATION AGREEMENT REQUIRES THIS COURT TO VACATE THE ARBITRATION AWARD PURSUANT TO N.J.S.A. 2A:23B-4([A]), N.J.S.A.

2A:23B-15, [AND] N.J.S.A. 2A:23B-23([A]) (2)-(3)[.]

POINT II

THE TRIAL COURT ERRED WHEN IT DENIED DEFENDANT'S REQUEST TO VACATE THE ARBITRATION AWARD DUE TO THE ARBITRATOR'S VIOLATIONS OF N.J.S.A. 2A:23B-

23([A]) AND ARBITRATOR'S FAILURE TO ABIDE BY THE TERMS OF THE PARTIES' ARBITRATION AGREEMENT[.]

A-2131-17T2

We disagree and affirm.

I.

The parties married in 1990. Two children were born of the marriage, a boy born June 1996 and a girl born November 1999. In 2013, the parties separated, and, in 2014, plaintiff filed a complaint for divorce. Following mediation, on January 17, 2017, the parties entered into a MSA addressing equitable distribution, child support, custody, and parenting time. Under the MSA, the parties agreed to submit defendant's obligation to pay alimony "to binding arbitration" before a retired judge (the arbitrator).

On the same date, the parties executed an arbitration agreement in which they acknowledged that "their respective rights [were] limited by th[e] [a]greement" and "the New Jersey Uniform Arbitration Act, N.J.S.A. 2A:23B-1 [to -32]." They specifically agreed that "the [a]rbitrator shall have sole and exclusive jurisdiction to determine all matters" pertaining to "the amount of alimony, the term of alimony[,] or the frequency of alimony." 1 Further, "[t]he

1 In the agreement, "[t]he parties acknowledge[d] that the [a]rbitrator ha[d] previously acted as mediator" but waived "their right[] to confidentiality" and "to object to the . . . [a]rbitrator . . . act[ing] in a dual role." See Minkowitz v. Israeli, 433 N.J. Super. 111, 142 (App. Div. 2013) (holding that "absent the parties' agreement, an arbitrator . . . may not assume the role of mediator and, thereafter, resume the role of arbitrator").

A-2131-17T2

[a]rbitrator shall issue an award" pursuant to "the substantive law of the State of New Jersey" and "based upon a separate written decision setting forth findings of fact and conclusions of law." They agreed that "[t]he parties may request in writing to have the [a]rbitrator correct, modify[,] or clarify the award pursuant to N.J.S.A. 2A:23B-20[,] and may seek reconsideration based upon the legal grounds set forth in [Rule] 4:49-2."

However,

[t]he parties . . . agreed that there will be no right of appeal from the [a]rbitrator's award, but that either party may subsequently apply to the Superior Court of New Jersey[,] Chancery Division, Morris County, Family Part, or such other [c]ourt having competent jurisdiction, to seek a modification of any alimony award based upon a change in circumstances.

Further, upon expiration of the times provided in the agreement "to seek correction, modification[,] or vacature[,] . . . either party may move for confirmation of the award," and "[t]he confirmed award shall be incorporated in an [o]rder of the [c]ourt and shall be binding on the parties." Additionally, the parties agreed to forego making any "stenographic record" of the testimony at

A-2131-17T2

the arbitration proceedings, and "acknowledge[d] that each of them . . . entered into th[e] [a]greement freely, voluntarily[,] and knowingly."2 On April 11, 2017, following three days of testimony, the arbitrator issued an award, requiring defendant to pay plaintiff $15,000 per month i n open durational alimony, "beginning upon the entry of the [FJOD]," which "[a]limony shall terminate" upon plaintiff's "remarriage" or "cohabitation" or the "death of either party." In addition, the arbitrator ordered defendant to pay to plaintiff "the sum of $10,000 per month" as "a savings component," "retroactive to September 30, 2014," and to "continue for so long as alimony shall be paid." Accompanying the arbitrator's award was a fifteen-page decision, detailing the arbitrator's findings of fact and conclusions of law. 3 In the decision, initially, the arbitrator noted that plaintiff, then forty-six years old, and defendant, then forty-eight years old, had a twenty-three year

2 The parties and their respective counsel also executed a consent order, filed with the Family Part, memorializing the agreement to arbitrate "without the right of an appeal." The order stated that the Family Part "[did] not retain jurisdiction, except to enter the [FJOD] and . . . for any post-arbitration decision based upon a change of circumstances to modify alimony" or "to confirm any arbitration awar[d]." 3 The award and decision also addressed other miscellaneous items, specifically health insurance coverage and college contributions for the parties' unemancipated daughter, payment of outstanding medical expenses for both children, and a furniture adjustment.

A-2131-17T2

marriage. Recounting the parties' testimony regarding their work experience and income, the arbitrator found that defendant and his brother "took over" their father's business, which "continued to operate at the present time[,]" while plaintiff "was a stay[-]at[-]home mother by agreement" and did not work despite having "an associate[] degree in fashion and marketing" in addition to "a cosmetology license [that] ha[d] long since expired." Since the separation, plaintiff had "returned to work part[-]time[,] working sixteen . . . hours per week" and earning approximately $300 net monthly. Although defendant wanted to impute to plaintiff earnings of "$35,000 per year . . . for alimony purposes[,]" the arbitrator noted that plaintiff did "not believe that she would be able to earn that much money." In addition, plaintiff "[felt] that she should not [have to seek a full-time job] until her daughter [who lived with her] graduate[d] from high school."

The arbitrator's review of the parties' federal income tax returns, from 2011 to 2014, showed that defendant earned a "base salary" of approximately "$460,000 per year plus additional income from investments," totaling $1.9 million in 2012, 4 $1.1 million in 2013, and $1.6 million in 2014. In the years

4 In 2012, defendant's salary was $260,000.

A-2131-17T2

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