SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-6821-95T1
SHEILA R. FINEBERG,
Plaintiff/Respondent,
v.
M. ALAN FINEBERG,
Defendant/Appellant.
Submitted November 12, 1997 - Decided March 6, 1998
Before Judges Pressler, Conley and Carchman.
On appeal from the Superior Court of New Jersey,
Chancery Division, Family Part, Monmouth County.
Gary E. Fox, attorney for appellant.
Jacobowitz, Grabelle, Defino, McGoughran & Latimer,
attorneys for respondent (Timothy F. McGoughran, on the
brief).
The opinion of the court was delivered by
CARCHMAN, J.S.C. (temporarily assigned).
This case again demonstrates the frustration encountered by the judges assigned to the Family Part, the matrimonial bar and the litigants themselves who are confronted with a litigant who manipulates the "system" in a manner designed to avoid bringing to an end a matrimonial dispute which has been pending for years and is finally ripe for disposition. Here, we have a defendant who "does not believe" that he received notice of the final hearing in his dissolution matter, who vigorously and
successfully opposed the appointment of a guardian ad litem to
protect his interests because of his questionable competency and
then, within days of issuance of the notice of trial of the
dissolution case, voluntarily hospitalized himself claiming
mental disorder.See footnote 1 Defendant here appeals from the denial of his
motion to vacate the judgment of divorce which dissolved the
bonds of matrimony and granted alimony, reduced the pendente lite
support arrears to judgment, continued a Domestic Violence Final
Restraining order, reduced a pendente lite arrearage for medical
insurance to judgment, required maintenance of a life insurance
policy, awarded counsel fees and permitted plaintiff to resume
her maiden name. Defendant does not challenge that part of the
judgment that dissolved the marriage or permitted plaintiff's
resumption of her maiden name but limits his appeal to the
financial issues resolved by the judgment. The judgment did not
deal with equitable distribution since defendant had previously
filed a petition for Chapter 11 protection, and the issue of
equitable distribution was left to the Bankruptcy Court.See footnote 2
Defendant failed to appear at the final hearing, asserting
that he never received notice of the trial date and that, in any
event, he was hospitalized, albeit as a result of his voluntary
admission. Thereafter, his application to set aside the judgment
was denied as was his motion for reconsideration. We conclude
that he failed to establish a basis for relief under R. 4:50-1(a)
or (f) and, accordingly, we affirm.
To fully appreciate the nature of defendant's conduct
regarding the final hearing, we must briefly review some of the
background surrounding this matter. The parties were married on
August 13, 1961. Four children, all of whom are emancipated,
were born of the marriage.See footnote 3 Plaintiff, sixty-one, resides in
the marital home in Colt's Neck and is unemployed; defendant,
sixty-eight, last residing at the McIntosh Inn in East Brunswick,
is in the commercial real estate business.
Plaintiff filed a complaint for divorce in 1993. The road
leading from the filing of the complaint to the final hearing was
long and arduous. From the filing of the complaint until the
final judgment was entered, at least fourteen orders were entered
against defendant including the issuance of three bench warrants
and our denial of defendant's request for interim relief. Orders
were necessary to protect against defendant's dissipation of
assets as well as to compel defendant to provide discovery and
pay support. In addition, plaintiff sought protection from
defendant under the Prevention of Domestic Violence Act of 1991,
N.J.S.A. 2C:25-17 to -33. During the pendency of the action,
defendant filed a petition for Chapter 11 protection under the
Bankruptcy Act, and the Bankruptcy Court granted a vacation of
the automatic stay to allow the matrimonial proceeding to move
forward on all issues except equitable distribution. Finally, by
order of February 10, 1994 and in response to defendant's failure
to comply with her prior orders, Judge Cuff, then sitting in the
Family Part, struck defendant's pleadings and limited his
participation at the final hearing to cross-examination of
witnesses.
From the inception of the divorce proceeding, defendant, at
various times, was represented by counsel and, at various other
times, represented himself. In October 1994, he retained the law
offices of Teich, Groh and Frost to represent his interests in
the matrimonial case as they had been representing his interests
in the bankruptcy matter. Plaintiff had previously moved for
relief to reduce support arrears to judgment, to hold defendant
in contempt, to incarcerate defendant and for counsel fees. In
addition, plaintiff had moved for the appointment of a guardian
ad litem since defendant, who has a history of depression pre-dating the divorce proceeding, had previously checked himself
into a hospital claiming various emotional problems. Apparently,
defendant appeared in November for the hearing on motions
including the application for the appointment of the guardian ad
litem.See footnote 4 On November 18, 1994, the Family Part judge signed an
order a) compelling defendant to continue to pay support and
arrears to plaintiff; b) entering a judgment for arrears in favor
of plaintiff and against defendant for $39,000; c) holding
defendant in contempt of court for "failure to abide by the order
of the court as to pendente lite support;" d) issuing a bench
warrant for defendant's incarceration "on November 29, 1994,
subject to a FederbushSee footnote 5 hearing if he fails to pay the judgment
amount in this order prior to that time;" and other relief not
germane to the issues here. Defendant filed opposition to the
application for a guardian ad litem and that application was
denied. A separate order memorializing the denial of the
guardian application also denied counsel fees "subject to the
November 29, 1994 hearing." The November 29, 1994 hearing was
continued at defendant's attorney's request to December 14, 1994.
On that date, defendant's attorney appeared, defendant failed to
appear and a bench warrant was issued for defendant's arrest,
subject to his release upon payment of $76,250, the amount the
judge determined to be the full amount of the arrearage. In
addition, defense counsel, with "all parties having been served,"
was granted leave to withdraw as counsel.
According to the affidavit filed by defense counsel in
support of her motion to withdraw as counsel, defendant was
personally notified of the December 14, 1994 hearing and
appointments were scheduled to prepare for the hearing.
Defendant failed to keep the appointments or advise counsel of
his whereabouts. Subsequent to that hearing, counsel received a
trial notice scheduling the matter for January 18, 1995. Counsel
later certified that she forwarded a letter enclosing the trial
notice and a copy of the order relieving counsel to defendant at
the address that he had supplied to counsel. The letter was sent
to defendant on December 15, 1995 by both regular and certified
mail. The regular mail was never returned and the certified mail
was returned as "refused."
Curiously, defendant's certification in support of his
motion to vacate the default judgment does not unequivocally deny
receipt of notice of the trial date. Defendant states: "I do not
believe that I ever received notice of the trial date for January
19, 1995." (emphasis added) He states that he was hospitalized
at various times from October 1994 through March 1995,
specifically from November 3, 1994 to November 5, 1994 for an
alleged suicide attempt by a drug overdose; from November 7, 1994
to November 21, 1994 for psychological problems; from December
28, 1994 to March 5, 1995 and again from March 14, 1995 to April
21, 1995 for depression and diabetes. All of these were
voluntary admissions. Likewise he asserts that he has been "in a
severe depression and was operating in an aberrant fashion from
probably sometime on or about the onset of these divorce
proceedings, sometime in 1993." This certification was filed on
November 28, 1995 in support of his motion to vacate the
judgment. It is inconsistent, however, with an important earlier
filing.
One year earlier on November 17, 1994 in opposition to the
appointment of a guardian at litem, defendant certified:
4. Additionally, I have been ill with a foot
infection and been laid up in the hospital
for approximately the last month and was only
recently released. Due to my deteriorating
health, I feel that the Court must reexamine
my $1,250.00 per week alimony obligation. I
simply cannot afford to pay alimony in this
amount and wonder if I can afford to pay
alimony at all.
5. Since being released from the Raritan Bay
Medical Center, Old Bridge Division, I
subsequently admitted myself into another
hospital for depression. My understanding is
that many hospital patients become depressed
from being around ill people all the time
and, additionally, many medications have been
known to cause depression.
Additionally, in support of his opposition to the motion,
defendant submitted the certification of Anthony G. Bariglio, a
business associate of defendant. That certification stated:
1. I am business associate of the Defendant
in the above captioned matter and am fully
familiar with the facts set forth in this
Certification.
2. Over the past few months I have had
numerous conversations with the defendant in
regard to certain business transactions. I
have found him at all times to be abreast of
the situation and to exercise sound business
judgment.
3. Additionally, I also visited with the
Defendant in the hospital on one occasion so
that we could discuss our business dealings
face to face. Again, I found Defendant to
exercise sound business judgment.
4. Over all, I have found Defendant to be capable and fit for the government of himself and his property and, therefore, do not feel
that Defendant is in need of a guardian ad
litem.
Defendant, on the one hand, successfully resisted an application
for the appointment of a guardian ad litem based on his mental
acuity and ability to govern his affairs, while shortly
thereafter he certified as to his inability to cope with the
rigors of litigation.
The dissolution trial was held on January 19, 1995.See footnote 6
Defendant failed to appear. After presentation of plaintiff's
case, the trial judge made findings and awarded alimony, reduced
the accumulated arrearage to judgment, continued the Domestic
Violence restraining order, ordered the maintenance of life
insurance for the benefit of plaintiff, awarded counsel fees and
allowed plaintiff to resume her maiden name.See footnote 7 The judgment was
entered on February 2, 1995.
Defendant thereafter moved to vacate the judgment pursuant
to R. 4:50-1(a) and (f).See footnote 8 The motion judge denied defendant's
application and noted that, while defendant suffered from a
diagnosed bi-polar disorder, he was capable of managing his
affairs and attending to matters of significance. That
conclusion was well supported by the record before the court.
Clearly, defendant had been hospitalized during various periods
during the pendency of the matrimonial proceeding and during
periods when he was due in court for hearings and motions. What
is striking about the records presented is that each admission
was voluntary and any suggestions of illness, or even suicide,
beyond his diagnosed bi-polar disorder, were based on self-serving statements which never formed the basis of a diagnosis
other than depression. What is further striking about the record
is that the critical absences from court proceedings occurred
only in the matrimonial action at a time when defendant is at
risk and not in other proceedings such as the bankruptcy
proceedings where defendant appeared and fully participated in
those proceedings.
We do not deprecate the medical difficulties defendant may
be suffering; however, the motion judge concluded that the
records before him did not support a view that defendant was
incapable of participating in the matrimonial proceeding. We
agree with that conclusion and again reiterate defendant's strong
opposition to the appointment of a guardian ad litem, a procedure
that would have tested the very issue defendant now complains of.
At the time of the guardian ad litem application, defendant had
already been hospitalized for depression, suffered the same
"suicidal ideations" and the same bi-polar disorder. But his
treating physician opined that while he has been hospitalized for
depression "his prognosis is good provided that he remain in
therapy and continue on medication." Despite all of the
preexisting medical conditions, defendant vigorously opposed the
application.
Defendant was hospitalized at the time the final hearing
took place, as he had voluntarily admitted himself. He was not
hospitalized at the time the trial notice was issued and
forwarded to him at the McIntosh Inn in mid-December 1994.See footnote 9
Moreover, no explanation is set forth as to why defendant did not
appear at the December 14, 1994 hearing other than the fact that
it is consistent with his pattern of avoidance. Again, the
critical inquiry is less whether defendant appeared at the
January 19, 1995 hearing and his whereabouts that day, as opposed
to whether he had notice of the hearing.
Defendant moved for relief from the judgment pursuant to R.
4:50-1(a) and (f). The rule provides:
On motion, with briefs, and upon such terms
as are just, the court may relieve a party .
. . from a final judgment or order for the
following reasons: (a) mistake, inadvertence,
surprise, or excusable neglect; . . . or (f)
any other reason justifying relief from the
operation of the judgment or order.
The motion judge rejected defendant's application for relief
and later the motion for reconsideration. The motion judge
commented:
There's an obligation on behalf of a litigant
to keep the system apprised of his
whereabouts. Every indication that's been
provided to me is that at the time of the
representation of Ms. Wittenborn to her
client and in compliance with the Court's
earlier -- of Judge D'Amico's order to notice
on the trial date, that she did it. And
there was nothing to indicate at all on the
record that was before Judge D'Amico that
adequacy of notice had not been achieved.
And that's what I look at. Was the
notice adequate under the circumstances? I
cannot, without an incompetency finding,
excuse the responsibility of Mr. Fineberg to
keep the system aware of his whereabouts. I
will not vacate the determination that was
made by [me] back in January.
The motion to vacate a judgment under either R. 4:50-1(a) or
(f) "should be granted sparingly, and is addressed to the sound
discretion of the trial court, whose determination will be left
undisturbed unless it results from a clear abuse of discretion.
Housing Authority of Town of Morristown v. Little,
135 N.J. 274,
283-84 (1984)." Pressler, Current N.J. Court Rules, comment 1 on
R. 4:50 (1998). An application to vacate a default judgment is
"viewed with great liberality, and every reasonable ground for
indulgence is tolerated to the end that a just result is
reached." Marder v. Realty Construction Co.,
84 N.J. Super. 313,
319 (App. Div.), aff'd,
43 N.J. 508 (1964). Nevertheless, a
default judgment will not be disturbed unless the failure to
answer or otherwise appear and defend was excusable under the
circumstances. Id. at 318.
Defendant argues that his alleged impaired competency at the
time of his attorney's attempt to notify him of the trial date
and his hospitalization during the trial entitle him to relief
under R. 4:50-1. Plaintiff counters that defendant's successful
argument in opposition to the appointment of a guardian ad litem
should act as an estoppel for his application to raise his
alleged mental incompetency as an excuse for relief under R.
4:50-1.
When plaintiff made an application to have a guardian ad
litem appointed on behalf of defendant, he filed certifications
in opposition to the application. In support of that defense,
defendant supplied the court with certifications sworn to by
himself, his business associate and his treating psychiatrist.
These certifications were filed to attest to defendant's
abilities and to his fitness "for the government of himself and
his property." However, on the motion and again on appeal,
defendant argues that his state of mind resulted in his
hospitalization which precluded him from attending to the
litigation and was thus excusable neglect under R. 4:50-1(a) or
(f). Defendant agreed to a voluntary commitment at Monmouth
Medical Center and was there continuously from January 5 to March
5, 1995.See footnote 10 It was during this time that the divorce hearing
occurred and judgment was entered by default against defendant.
We again observe that there is nothing in the record which
warrants a finding of incompetency, and the motion judge so
concluded. Moreover, the position taken by defendant on the
motion for reconsideration as to his competency is inconsistent
with the position he successfully advocated in November 1994. He
is, indeed, precluded from asserting these inconsistent positions
by the doctrine of judicial estoppel.
Judicial estoppel operates to bar a party from asserting a
position contrary to and inconsistent with one previously
asserted. Cummings v. Bahr,
295 N.J. Super. 374, 385 (App. Div.
1996); Levin v. Robinson, Wayne & LaSala,
246 N.J. Super. 167,
180 (Law Div. 1990) (observing that "[a] party will not be
permitted to play fast and loose with the courts nor to assume a
position in one court entirely different or inconsistent with
that taken by him in another court or proceeding with reference
to the same subject matter."). That principle applies here.
Defendant's position asserting a deficiency in his competency
contradicts his earlier position. We fully recognize that one's
mental condition is fluid and may be constantly changing, yet a
careful review of the defendant's medical records demonstrates a
consistency of condition rather than a marked change of condition
or competency.
Defendant relies on Bergen-Eastern Corp. v. Koss,
178 N.J.
Super. 42 (App. Div. 1981). Such reliance is misplaced. That
case involved a seventy-year old widow with a history of
continuing, serious psychiatric problems with several
hospitalizations for mental illness who received notice of a tax
sale but did not understand or appreciate the significance of the
proceeding. Here, we are dealing with a sophisticated
businessman who is involved in multi-million dollar transactions,
who, according to the record, is maintaining or defending at
least fifteen active lawsuits (some of which involve defendant
acting pro se), who has previously violated the orders of the
Family Part in this litigation and who provides no meaningful
explanation as to why he did not respond to numerous notices and
hearings previously held.
Defendant suggests that courts should "bend over backwards"
to achieve substantial justice where defaults are entered against
the infirm. See, e.g., Novack v. Chait,
241 N.J. Super. 614, 623
(App. Div. 1990). While we will bend over backwards in
appropriate cases, we will not "break," especially where the
conduct of a litigant warrants a different result. Defendant's
conduct in this litigation and at the time of the December 14,
1994 hearing and the notice of the trial date does not warrant
our intervention under R. 4:50-1. That rule requires that courts
be indulgent of litigants who deserve such indulgences.
Defendant's conduct is beyond that point. Defendant's assertions
that he thought he was represented and that he had left the
McIntosh Inn and moved elsewhere are hollow. As we noted
earlier, defendant supplied the McIntosh Inn as his address;
defendant allegedly failed to check his mail and correspondence;
defendant's attorney supplied notice to him at the address that
he provided; and, defendant failed to communicate with his
attorney even after a hearing on a motion which threatened his
incarceration. Defendant had an obligation to keep the court and
counsel aware of his whereabouts, cf. In re Nackson,
221 N.J.
Super. 187, 198 (App. Div. 1987), aff'd,
114 N.J. 527 (1989),
citing Commonwealth v. Maguigan,
511 A.2d 1327 (Pa. 1986)
("[defendant] obligated himself to keep the court informed of his
whereabouts and to make himself available at the direction of the
court."). Neither plaintiff nor the court need be burdened with
his failings.
We are always concerned that the entry of a default judgment
deprives a litigant of an opportunity to argue the merits of
their case in court, see, Hatsfield v. Fantini,
149 N.J. 611, 618
(1997), but the right to present one's case carries with it the
commensurate obligation to cooperate with the court, counsel and
other litigants. Defendant's conduct regarding notice of the
trial date and failure to appear was not aberrational; it was
consistent with his past conduct. There are too many orders for
enforcement, too many bench warrants and too little cooperation
to excuse defendant for his latest default.
Defendant further contends that a plenary hearing was
required to test the bona fides of his contentions regarding
vacating the judgment. We disagree. All of the relevant
material was supplied to the motion judge both at the time of the
original application and the motion for reconsideration. The
plenary hearing would adduce no further facts or information.
See, e.g., Harrington v. Harrington,
281 N.J. Super. 39, 47 (App.
Div.), certif. denied,
142 N.J. 455 (1995) (noting that "not
every factual dispute that arises in the context of matrimonial
proceeding triggers the need for a plenary hearing."). We
conclude further that a proper consideration of the relevant
facts presented could lead to no other conclusion than that
reached by the motion judge. Cf. Brill v. Guardian Life Ins.
Co.,
142 N.J. 520, 540 (1995).
Defendant also challenges the award of counsel fees to
plaintiff and complains of certain comments made by the motion
judge. We have carefully considered the record and conclude that
defendant's arguments are without merit. R. 2:11-3(e)(1)(E).
Affirmed.
Footnote: 1We cannot overlook defense counsel's repetitive mischaracterization of the record when he refers to defendant's "numerous suicide attempts," and "his attempts to commit suicide on three separate occasions" between October 1994 and March 1995. The record does not support these factual assertions. Footnote: 2We have been advised by defendant's attorney that the bankruptcy court has decided the issue of equitable distribution. Footnote: 3The oldest child was plaintiff's child from a former marriage but was later adopted by defendant. Footnote: 4A transcript of this hearing was not provided on this appeal. Footnote: 5Federbush v. Federbush, 5 N.J. Super. 107 (App. Div. 1949). Footnote: 6Even though the case was scheduled for January 18, it was not reached on that date; however, it was called and defendant was paged. He did not appear on either January 18 to January 19. Footnote: 7The financial awards were essentially consistent with the prior pendente lite awards. Footnote: 8The motion to vacate was filed in November 1995, returnable on January 6, 1996. No explanation is given as to why defendant waited 10 months to file this motion. Footnote: 9A letter submitted to the court on defendant's motion for reconsideration from the McIntosh Inn indicates that the McIntosh Inn was storing records of defendant since November 1994. It does not confirm that defendant did not return to the McIntosh Inn after November 1994. More significantly, whether defendant did or did not return to the McIntosh Inn is not the issue; he used the McIntosh Inn as his address and contact point and gave the address to his attorney and others as his residence. Footnote: 10Defendant was transferred to Monmouth from Bayshore, which he had voluntarily entered on December 28, 1994. He indicates that he continued his voluntary commitment because of a threat of an involuntary commitment. However, whether he would have been so committed was never tested.