Zev D. Nijensohn v. Michael J. Ring, Esq. & Highland Realty Trust, LLC

2022 VT 16
CourtSupreme Court of Vermont
DecidedApril 8, 2022
Docket2021-159
StatusPublished
Cited by1 cases

This text of 2022 VT 16 (Zev D. Nijensohn v. Michael J. Ring, Esq. & Highland Realty Trust, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zev D. Nijensohn v. Michael J. Ring, Esq. & Highland Realty Trust, LLC, 2022 VT 16 (Vt. 2022).

Opinion

NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: JUD.Reporter@vermont.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2022 VT 16

No. 2021-159

Zev D. Nijensohn Supreme Court

On Appeal from v. Superior Court, Lamoille Unit, Civil Division

Michael J. Ring, Esq. & Highland Realty Trust, LLC December Term, 2021

Mary Miles Teachout, J.

Russell D. Barr and Chandler W. Matson of Barr Law Group, Stowe, for Plaintiff-Appellant.

William F. Grigas of Stackpole & French Law Offices, Stowe, for Defendant-Appellee Ring.

Christopher D. Roy of Downs Rachlin Martin PLLC, Burlington, for Defendant-Appellee Highland Realty Trust LLC.

PRESENT: Reiber, C.J., Eaton, Carroll and Cohen, JJ., and Howard, Supr. J. (Ret.), Specially Assigned

¶ 1. REIBER, C.J. This appeal involves a dispute over the sale of real property in

Vermont arising out of an ongoing divorce proceeding in Massachusetts. In dividing the divorcing

parties’ assets, the Massachusetts court ordered a special master to sell the Vermont property.

After the sale, plaintiff filed an action in the civil division of Vermont superior court to rescind the

sale and quiet title to the property. Applying the doctrine of comity, the civil division dismissed

his action, deferring to the ongoing proceeding in Massachusetts. Plaintiff appeals, arguing that

the civil division should not have dismissed his suit on comity grounds because the Massachusetts

court lacked jurisdiction to order the special master to sell the property. We conclude that the civil

division acted within its discretion and affirm. ¶ 2. We begin by recounting the procedural history of the Massachusetts divorce

proceeding and related actions filed in Vermont. In 2017, plaintiff’s wife filed for divorce in

Massachusetts. The couple owned a second home in Stowe, Vermont. In 2018, the Massachusetts

Probate and Family Court appointed a special master, Attorney Michael Ring, and authorized him

to “perform all acts necessary to facilitate the listing and sale” of the property. The Massachusetts

court ordered each party to fully cooperate with the sale process suggested by Attorney Ring.

¶ 3. After the divorce trial, in February 2019, the Massachusetts family court ordered

Attorney Ring to “immediately engage the services of a real estate agent of his choosing in

Vermont” to list the property for sale. This order gave Attorney Ring the power to sign

agreements, set the listing price, negotiate, accept offers, and sign the purchase and sale agreement.

The order also required the parties to “fully and promptly cooperate” with Attorney Ring.

¶ 4. In August 2019, the Massachusetts family court issued a divorce decree nisi that

required the “previously ordered sale process” for the property to “continue until the real estate is

sold” and ordered the parties to continue cooperating with Attorney Ring to facilitate the sale.

Subsequently, plaintiff appealed several of the court’s rulings, including the divorce decree.

¶ 5. In the interim, Attorney Ring filed a petition in the family division of Vermont

superior court, asking the court to domesticate the orders of the Massachusetts family court and

recognize his authority to sell the property. Plaintiff filed a motion to dismiss, explaining that his

Massachusetts appeal meant that the orders were not final and therefore not entitled to recognition

in Vermont under the Full Faith and Credit Clause of the U.S. Constitution. See U.S. Const., art.

IV, § 1 (“Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial

Proceedings of every other State.”). The family division agreed and dismissed the petition in

January 2020.

¶ 6. Back in Massachusetts, plaintiff filed a motion in the Massachusetts Appeals Court

to stay the sale of the property pending appeal. The court denied the motion in May 2020,

2 concluding that plaintiff had failed to show irreparable harm and that his likelihood of success on

the merits, as well as the potential harm to his wife, weighed against granting the motion.

¶ 7. Shortly thereafter, the Massachusetts family court issued a contempt order against

plaintiff. The order stated that the appeals court’s denial of plaintiff’s motion for a stay “provides

an opportunity for Attorney Ring to again seek certification of this authority to convey the parties’

real estate in Vermont, all as had been previously ordered by this Court.” The order further stated

that if the parties failed to sign the sale documents, “Attorney Ring has full authority to effect

conveyance to a bona fide third-party purchaser of the parties’ Vermont real estate.”

¶ 8. In September 2020, Attorney Ring entered into an agreement with a buyer,

Highland Realty Trust LLC, to purchase the Stowe property. As part of the sale, the parties agreed

to hold back $100,000 in escrow, half of which was to be released upon a final, non-appealable

divorce decree, or all released upon the delivery of a deed signed by both plaintiff and his wife.

Without this deed, the remaining $50,000 was to be used “to reimburse the buyer for any actual

costs incurred and attorney’s fees to defend any action by the seller(s).” The agreement also

provided that the transaction was “subject to and conditioned upon the issuance by the Lamoille

Superior Court of the entry of a decree for incorporating a foreign judgment.” Attorney Ring asked

the divorcing parties to agree to the sale and sign the deed. Plaintiff’s wife agreed to sell the

property, but plaintiff did not respond. Despite plaintiff’s unwillingness to cooperate, Highland

Realty accepted a deed from Attorney Ring along with an affidavit attesting to his authority from

the Massachusetts family court.

¶ 9. In January 2021, plaintiff filed the instant action in the civil division of Vermont

superior court against Attorney Ring and Highland Realty. He alleged that Attorney Ring lacked

authority to sell the property to Highland Realty and asked the court to rescind the contract, quiet

title, and hold Attorney Ring in contempt for failure to follow the Vermont family division’s order

3 dismissing Attorney Ring’s petition for domestication. Defendants moved to dismiss the

complaint. .

¶ 10. The civil division held a hearing in March 2021. Counsel for Attorney Ring argued

that the court should dismiss the case because the property was marital property within

Massachusetts’s jurisdiction and thus Vermont courts lack subject matter jurisdiction. In addition,

counsel for Highland Realty argued that the Vermont court should defer to the Massachusetts

proceeding as a matter of comity. Plaintiff’s counsel maintained that Vermont courts have

jurisdiction over real property located within the state and that Attorney Ring should not have sold

the property until his appeal in Massachusetts was resolved and a final order could be domesticated

in Vermont recognizing his authority. When the civil division asked plaintiff’s counsel why he

did not bring this action in Massachusetts, he explained that the sale was a Vermont transaction

involving Vermont property and that he didn’t believe that “going to Massachusetts to try to

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