THERESA C. GRABOWSKI VS. ANNETTE ARNOLD (L-4603-15, CAMDEN COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided June 16, 2020·No. A-5886-17T2·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court."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-5886-17T2

THERESA C. GRABOWSKI,

Plaintiff-Appellant/

Cross-Respondent,

v.

ANNETTE ARNOLD, a/k/a ANNETTE DENNERY, her Estate, Beneficiaries, and/or Successors in Interest, BERNADETTE MAURICE, a/k/a BERNADETTE DENNIS, and ANN MARIE McCORMICK,

Defendants-Respondents,

and EDWARD J. MAURICE,

Defendant-Respondent/ Cross-Appellant.

Argued January 9, 2020 – Decided June 16, 2020 Before Judges Nugent and DeAlmeida.

On appeal from the Superior Court of New Jersey,

Law Division, Camden County, Docket No. L-4603-15.

Andrew Todd Cupit argued the cause for appellant/cross-respondent.

Matthew R. Litt argued the cause for respondent/crossappellant (Posternock Apell PC, attorneys; Matthew R.

Litt, on the briefs).

Frank Guaracini, III argued the cause for respondent Ann Marie McCormick (Blaney & Karavan, PC, attorneys; Frank Guaracini, III, of counsel and on the brief).

PER CURIAM Plaintiff, Theresa C. Grabowski, is a New Jersey attorney. Years after representing a client whose stepmother had guaranteed payment of plaintiff's fees, plaintiff filed a fraud action against, among others, two of the stepmother- guarantor's other adult children, to whom the mother had transferred her interest in a house in a seaside community. The trial court dismissed the amended complaint as to one of the transferees for failure to state a claim upon which relief could be granted and dismissed the amended complaint as to the other on summary judgment. Plaintiff appeals from those orders, as well as another order denying her various requests for relief, including recusal of the trial judge. One of the defendant-transferees cross-appeals from the denial of his motion seeking

A-5886-17T2

frivolous pleading sanctions for plaintiff's motion to reinstate the complaint against him.

Because plaintiff's amended complaint did not state a cognizable cause of action against the transferees of the seaside property, and because plaintiff failed to present evidence on the summary judgment record from which a factfinder could have inferred that either transferee was responsible under any liability theory for plaintiff's fee, we affirm. We find no merit in plaintiff's challenge to the order denying her other relief. On the cross-appeal, because the trial court's findings of fact and conclusions of law are inadequate, we remand for further consideration.

I.

Plaintiff commenced this action by filing a complaint in December 2015, seeking to recover legal fees for services rendered to defendant Bernadette Maurice in 2008. The complaint named her and her stepmother, defendant Annette Arnold, who guaranteed payment of her fees. Arnold died in February 2016. Two months later, on April 20, 2016, plaintiff filed an amended complaint, which named all four defendants.

Plaintiff's amended complaint begins with a section that contains the following factual assertions. Plaintiff provided legal services to defendant

A-5886-17T2

Bernadette Maurice (the "client") during 2008. Plaintiff represented the client based on the client's stepmother ("Arnold" or "mother") guaranteeing verbally and in writing that she would pay plaintiff's fees. According to the amended complaint, the mother once "even pledged that plaintiff would be paid from the proceeds of the sale of a home that she had an ownership interest in at the shore—only to later advise plaintiff that she had transferred that interest to her brother for no consideration. At that time, [the mother] again renewed her promise to pay plaintiff."

In August 2009, plaintiff sent to the client and her mother letters stating there was a past due balance of $10,518.01, she intended to file a lawsuit, but the client and mother had the option to arbitrate the fee dispute if they so elected. In response, the mother telephoned plaintiff, acknowledged receiving the fee arbitration notice, "and reiterated her prior multiple promises to pay plaintiff's bills for legal services rendered" on the client's behalf. The mother made additional payments through December 2009. More than five years later, in September 2014, plaintiff made another written demand for payment of her outstanding bill.

More than a year after sending this second demand, plaintiff filed her initial December 2015 complaint against the client and her mother. The mother

A-5886-17T2

died two months later, and two months after her death plaintiff filed the amended complaint.

The amended complaint contains six "counts." The first four counts allege causes of action for breach of contract, common law fraud, unjust enrichment, and an account stated. The fifth count alleges a cause of action for fraudulent conveyance. The sixth count is a claim for punitive damages.

Plaintiff represented the client in 2008, as previously noted. The amended complaint's fifth count alleges that on July 7, 2008, the mother owned a fifty percent interest in real estate in Avalon. That same day, she represented to plaintiff that her brother owned the other fifty percent interest in the property, the property had a fair market value of almost $800,000, and the property was listed for sale. The mother further represented "that the proceeds of the aforesaid sale would be used to satisfy any and all obligations due to plaintiff as a result of the services provided by plaintiff[.]"

The fifth count additionally alleges that on or about January 28, 2010, the mother transferred for one dollar her fifty percent interest in the Avalon property to two of her other children, defendants Ann Marie McCormick and Edward J. Maurice. More than two years later, on May 30, 2012, the Avalon property was

A-5886-17T2

sold to a third party for $550,000, resulting in gross proceeds of $137,500 each to defendants McCormick and Maurice.

Plaintiff also asserts in the amended complaint's fifth count that by excluding the client when she transferred her interest in the Avalon property, the mother evidenced her intent "to have such property not be used to satisfy the obligations to plaintiff, despite the specific representations of [the mother] to the contrary." The fifth count asserts the Avalon property's transfer was made for nominal consideration rather than fair market value and was intended to defraud the mother's creditors, particularly plaintiff. The count further asserts the Avalon property's transfer resulted in the unjust enrichment of defendants McCormick and Maurice, who were both active participants and complicit in the fraud perpetrated by their mother.

Plaintiff did not allege that when the mother transferred her interest in the Avalon property, she was insolvent or became insolvent as a result of the transfer. Rather, plaintiff asserted that when the mother sold the property, she represented she "still could and would pay all amounts due plaintiff." The amended complaint does not refer to the Uniform Fraudulent Transfer Act ("UFTA"), N.J.S.A. 25:2-20 to -34.

A-5886-17T2

Following the filing of the amended complaint, the parties filed a series of motions. First, defendant Edward Maurice filed a motion pursuant to Rule 4:6-2(e) to dismiss the amended complaint for failure to state a claim upon which relief can be granted. Although plaintiff had not referenced the UFTA in her complaint, Maurice based his motion on the UFTA's statute of limitation and the amended complaint's failure to plead with specificity the elements of fraud.

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THERESA C. GRABOWSKI VS. ANNETTE ARNOLD (L-4603-15, CAMDEN COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

THERESA C. GRABOWSKI VS. ANNETTE ARNOLD (L-4603-15, CAMDEN COUNTY AND STATEWIDE) (THERESA C. GRABOWSKI VS. ANNETTE ARNOLD (L-4603-15, CAMDEN COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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