B.M. was incapacitated since birth. E.M. and plaintiff L.M. are her siblings. L.M. lived with B.M. for twenty-seven (27) years. and she provided for B.M.’s care,
After her mother’s death, B.M. was declared mentally incompetent. L.M. was the appointed guardian of B.M.’s person, and E.M. was the appointed guardian of B.M.’s property. The two guardians established a practice through which L.M. would pay for B.M.’s daily expenses and submit a monthly request to E.M. for reimbursement from B.M.’s accounts by check. E.M. also paid some of B.M.’s recurring bills directly from her accounts.
Although L.M. was reimbursed by E.M. for all of the expenses she paid on behalf of B.M., a number of the reimbursement checks were rejected for insufficient funds. L.M. was also notified that E.M. had not paid some of B.M.’s medical bills, including her health insurance premiums, which caused her coverage to lapse. E.M. also never filed an accounting during his guardianship of B.M., although required by law to do so.
As a result of B.M.’s financial improprieties, L.M. filed a verified complaint and order to show cause in the Chancery Division seeking the removal of E.M. as guardian of B.M.’s property. After a plenary hearing, the court removed E.M. as the guardian of B.M.’s property and appointed L.M. as guardian of B.M.’s property.
Having gained access to B.M.’s bank records, which had been withheld by E.M. during the first proceeding, L.M. discovered that E.M. misappropriated $99,815.47 from B.M.’s accounts during his guardianship. As a result, L.M. filed a second verified complaint and order to show cause in the Chancery Division alleging that E.M. misappropriated B.M.’s funds.
The matter was tried. After trial, the trial court entered a judgment finding E.M. “committed acts of malfeasance and misfeasance during the course of his [g]uardianship of the property of [B.M.]” and had caused a loss to B.M. of $121,000 through misappropriation of her funds for his personal use. The court ordered E.M. to repay that sum to B.M. through L.M. In addition, L.M. submitted a request on behalf of B.M. for an award of $52,438.68 in attorney’s fees and costs. The court granted the fee application. E.M. appealed.
After reviewing E.M.’s arguments in light of the record and applicable legal principles, the New Jersey Appellate Division concluded that the record contained substantial, credible evidence supporting the trial court’s findings. E.M. admitted he violated his fiduciary duties by repeatedly withdrawing B.M.’s funds to finance his addiction. The appeals court affirmed the lower court’s finding that E.M. misappropriated $121,000.
However, the appellate court vacated the award of attorney’s fees and costs to B.M. and remanded for a new determination of her application The appeals court found that record contained no findings of fact or conclusions of law supporting the trial court’s award of attorney’s fees and costs to B.M.
Thus, the appeals court affirmed the trial court’s judgment in all respects except the award of attorney’s fees and costs to B.M. The fee award was vacated and remanded back to the trial court for a new determination of B.M.’s application for attorney’s fees and costs.
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