Adkins v. Sogliuzzo
| Decision Date | 03 April 2014 |
| Docket Number | Civil Action No. 09-1123 (SDW) |
| Parties | JANE ADKINS, ET AL., Plaintiffs, v. JOHN B. SOGLIUZZO, ET AL., Defendants. |
| Court | U.S. District Court — District of New Jersey |
NOT FOR PUBLICATION
This Court held trial for approximately five days during a two week period, commencing January 21, 2014, in this matter regarding plaintiff Jane Adkins ("Jane Adkins" or "Plaintiff") and defendants John B. Sogliuzzo ("Sogliuzzo") and his wife Gaye Torrance ("Torrance").1
This Court has jurisdiction to hear this matter pursuant to 28 U.S.C. § 1332. Based on the testimony and evidence presented at trial, this opinion constitutes this Court's findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52(a).
As this matter has been addressed several times by this Court over five years of motion practice and oral argument, this Court will briefly provide its finding of facts and writes primarily for the parties. This Court makes the following findings:
Plaintiff is the sister of defendant Sogliuzzo, an attorney, and the sister-in-law of his wife Torrance (collectively with Sogliuzzo "Defendants"). Plaintiff and Sogliuzzo are the children of Jane P. Sogliuzzo ("Jane S."). Jane S. and Mary T. Grimley ("Grimley") were first cousins. Plaintiff and Sogliuzzo are referred to as the nephew and niece of Grimley. Both Jane S. and Grimley are deceased.
Grimley was predeceased by her husband and child. Jane S. was predeceased by her husband, Walter Sogliuzzo (who died in 1999) and one of her three children, W. Gerald Sogliuzzo (who died in 2003). Jane S. and Grimley were survived by Plaintiff and Sogliuzzo, both of whom are beneficiaries to their estates. Following the death of Walter Sogliuzzo, his remaining son, Defendant Sogliuzzo, took over the management of his mother's financial affairs.
Jane S. lived at 1228 Bloomfield Street in Hoboken, New Jersey (the "Hoboken House"). In 2002, Grimley fell in her home on Garden Street in Hoboken and her health declined. Grimley fell on the floor of her kitchen and remained unable to move there for at least two days until she was discovered. Following this incident, there was concern about Grimley's ability to live on her own, so Grimley moved into an apartment in the Hoboken House.
Jane Adkins, Charlie Adkins (husband of Jane Adkins), Sogliuzzo, and Torrance discovered cash in various parts of Grimley's home while cleaning it out during her move to the Hoboken House. Approximately $70,000 in cash was recovered from Grimley's apartment upon her relocation. Sogliuzzo and Plaintiff. told Grimley that cash was found in her home andSogliuzzo said he would deposit it in Grimley's bank account at Haven Savings Bank ("Haven" or "Haven Bank").
Once Grimley moved into the Hoboken House, Sogliuzzo managed Grimley's banking, as well as his mother Jane S.'s finances. Sogliuzzo arranged with Haven to be appointed power of attorney with respect to Grimley's accounts. Paula Ianna ("Ianna"), Sogliuzzo's secretary notarized the power of attorney giving Sogliuzzo authorization for Grimley's accounts, but she never actually witnessed Grimley sign the power of attorney. Sogliuzzo, who is an attorney, was named as Executor for the estates of both Jane S. and Grimley.
During the period of 2004 to 2006, $321,040.05 in bonds was redeemed from Grimley's account. Some funds were deposited into a bank account that Torrance shared with her husband Sogliuzzo during that time period. Some of the deposits were in checks made out to Torrance, of which Torrance claimed not to be aware. Torrance recalls receiving a check for $20,000 from Grimley dated February 25, 2005, which Torrance indicates was for her children's tuition.
On October 16, 2006, Grimley died at 91 years old. Plaintiff received a distribution from Grimley's Estate from Sogliuzzo, for an amount that Plaintiff believed was significantly less than that which she was entitled to receive.
Jane S. maintained a checking account and various savings accounts at Hudson United Bank and TD Banknorth (which are predecessors-in-interest of TD Bank) and investment accounts with Deutsche Bank Alex Brown.
Jane S.'s health declined over the years, and on February 29, 2008, Jane S. died at 93 years old.
On March 4, 2008, Plaintiff discussed their mother's estate with Sogliuzzo, who communicated to her that the only assets were about $14,000 in bank accounts and the Hoboken House. When Plaintiff inquired about their mother's investment accounts, Sogliuzzo told her that they were to be paid to him upon the death of their mother.
On March 13, 2008, Jane S.'s will was probated by Sogliuzzo. That morning, Plaintiff told Sogliuzzo via email that she had concerns and asked him not to probate the will until they had a chance to speak. At the time Jane S.'s will was probated, the main asset in the estate was the Hoboken House. On April 2, 2008, Sogliuzzo and Plaintiff met at Union Station in Washington, D.C. At the April 2, 2008 meeting, Plaintiff asked Sogliuzzo about irregularities she and her husband discovered concerning the accounts and estates of Jane S. After an unpleasant discussion, they parted ways with the issues unresolved.
During the summer of 2008, Sogliuzzo gave up his position as Executor of the estate and Plaintiff was appointed Executrix. Also, per Plaintiff's request, Sogliuzzo ceased to be the Executor of the Grimley Estate.
Starting in 2008, Plaintiff reported experiencing anxiety attacks and frequent seizures. Plaintiff began keeping record of her seizures in June 2008. Plaintiff's prior medical history included migraines, and in 2003, she had been diagnosed with a brain tumor. On December 31, 2003, Plaintiff had surgery to remove the tumor, and after the surgery, Plaintiff experienced seizures and numbness. However, Plaintiff saw an increase in the frequency of her seizures as of 2008.
On September 23, 2008, Plaintiff sued Sogliuzzo for undue influence in the Superior Court of New Jersey, Chancery Division, Probate Part, Hudson County (the "State Court Case").In the State Court Case, Plaintiff alleged that Sogliuzzo exerted undue influence over the creation and management of an account Jane S. maintained at Deutsche Bank Alex Brown.
In September 2008, Plaintiff, as Executrix, filed suit against Sogliuzzo in New Jersey Chancery Court with claims including undue influence over their mother, Jane Sogliuzzo. On March 13, 2009, Plaintiff filed the initial complaint in this matter.10 Subsequently, Plaintiff amended her complaint twice, filing the Third Amended Complaint on January 13, 2012 ("Complaint" or "Compl.").
On July 24, 2009, after Sogliuzzo invoked his Fifth Amendment rights in the State Court Case, the Honorable Thomas P. Olivieri, then Presiding Judge, Superior Court, Hudson County ("Judge Olivieri"), struck Sogliuzzo's answer based upon his unresponsiveness, and default was entered against Sogliuzzo.
On February 6, 2012, following proof hearings on various dates throughout 2011 and 2012, Judge Olivieri found that Sogliuzzo had exerted undue influence over Jane S. Based upon that finding, on February 23, 2012, Judge Olivieri issued a Final Judgment in favor of the Estate of Jane S. and against Sogliuzzo in the amount of $520,414 ("Judge Olivieri Order"). (See Olivieri Order dated Feb. 23, 2012.) Notably, that Final Judgment included the following components: $224,436 related to transfers and accrued interest from Jane S.'s Alex Brown account; $216,313 related to "checks made payable to John Sogliuzzo or his law practice or the Pingry School" and accrued interest thereon; and $61,150 regarding transfers and accrued interest from "unaccounted for withdrawals from the savings accounts" of Jane S. (Id.) Judge Olivieri also awarded nearly $200,000 in legal fees and costs to various law firms. Appeals fromJudge Olivieri's February 23, 2012 Final Judgment were filed by both Sogliuzzo and Jane S.'s Estate. This judgment was affirmed on appeal.
A similar action was filed against Sogliuzzo related to Grimley's Estate in the Superior Court of New Jersey, Chancery Division, Probate Part, Hudson County ("Grimley State Court Case"), but that matter has been stayed pending resolution of this case. (Judge Velazquez Order dated Sept. 3, 2012.)
Plaintiff's Complaint filed in this Court, included thirty-six counts based upon New Jersey statutory and common law causes of action against at least six separate named defendants.11 During this litigation, this Court issued several letter orders and opinions, the latest opinion being filed September 30, 2013, resolving motions for summary judgment. (Dkt. No. 285.) Several of the counts and financial defendants were addressed in this Court's opinion dated September 30, 2013, and Plaintiff settled with the remaining financial defendants prior to trial.
The remaining Defendants and the separate claims regarding the estates of Jane S. and Grimley will be discussed below. As several claims were previously dismissed or addressed, at the time of trial only the following claims remained: Breach of Fiduciary Duty - Mary T. Grimley (Count One); Breach of Fiduciary Duty - Mary T. Grimley's Estate (Count Two); Negligence of John B. Sogliuzzo Causing Harm to Jane E. Adkins as to Mary T. Grimley and the Estate of Mary T. Grimley (Count Four); Malicious Misrepresentation Causing Harm (CountSix); Intentional Infliction of Emotional Distress by John B. Sogliuzzo Against Jane E. Adkins (Count Seven); Aiding the Commission of a Tort - L. Gaye Torrance (Count Fourteen); Conspiracy to Commit Tort L. Gaye Torrance and John B. Sogliuzzo (Count Fifteen); Conversion Against John B. Sogliuzzo (Count Seventeen); Fraudulent Concealment By Fiduciary John Sogliuzzo (Intervivos Transfers) (Count Nineteen); Fraudulent Concealment Against John B. Sogliuzzo as Fiduciary of Jane P. Sogliuzzo (Count Twenty); Intentional Fraud as to John Sogliuzzo (Count Twenty-One);...
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