LENORE N. ZANGRILLI VS. JASON D. ZANGRILLI (FM-16-1553-11, PASSAIC COUNTY AND STATEWIDE) ( 2018 )


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  •                                 NOT FOR PUBLICATION WITHOUT THE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-3815-17T2
    LENORE N. ZANGRILLI,
    Plaintiff-Respondent,
    v.
    JASON D. ZANGRILLI,
    Defendant-Appellant.
    _______________________
    Argued October 11, 2018 – Decided November 9, 2018
    Before Judges Koblitz, Currier and Mayer.
    On appeal from Superior Court of New Jersey,
    Chancery Division, Family Part, Passaic County,
    Docket No. FM-16-1553-11.
    Elizabeth D. Burke argued the cause for appellant
    (Ziegler, Zemsky & Resnick, attorneys; Steven M.
    Resnick and Ruth Kim, on the briefs).
    Tiffany K. Ornedo argued the cause for respondent
    (Northeast New Jersey Legal Services, attorneys;
    Tiffany K. Ornedo, of counsel and on the brief).
    PER CURIAM
    Defendant Jason D. Zangrilli appeals from the March 16, 2018 order
    denying his application to modify alimony based on changed circumstances as
    well as the April 13, 2018 order setting his child support based on the income
    imputed to him in the property settlement agreement (PSA).
    The parties were married on August 28, 1994 and had three children:
    two girls born in 1999 and 2003; and a boy born in 2005.             During the
    marriage, defendant was employed as a creative director of marketing in New
    York City, earning between $157,000 and $285,000 annually. In December
    2011, defendant was involuntarily terminated from his position. He continued
    to work on a freelance basis, and also operated his own consulting business.
    Plaintiff did not work throughout the marriage until she obtained employment
    in 2012 as a client services representative, earning $44,000 annually.
    The parties divorced on January 3, 2013, and the judgment of divorce
    incorporated the terms of a PSA. For purposes of calculating alimony and
    child support, the PSA imputed an income of $40,000 to plaintiff, and
    $150,000 to defendant. The PSA provides:
    [I]n the event that the [defendant] secures employment
    earning an actual gross income of less than $150,000
    per year, the [defendant]’s alimony obligation shall
    not decrease and a gross income of $150,000 shall be
    imputed to the [defendant] for the purposes of
    calculating alimony. However, in the event that the
    A-3815-17T2
    2
    [defendant] secures employment earning an annual
    gross income exceeding $150,000 per year, the
    [defendant]’s alimony obligation shall be modified.
    The parties further agreed to provide each other with monthly status reports
    describing job search efforts.
    Defendant agreed to pay plaintiff limited duration alimony (LDA) for a
    period of fifteen years.   He agreed to pay $544.87 per week in 2013 and
    $705.12 per week for the remainder of the fifteen-year term. He agreed to pay
    child support throughout 2013 in the amount of $314 weekly, and starting in
    2014 until emancipation in the amount of $338 weekly.
    The parties agreed that a substantial change in circumstances would
    permit either party to seek modification of alimony provisions pursuant to
    Lepis v. Lepis, 
    83 N.J. 139
    , 151 (1980). The PSA provided:
    The parties acknowledge that they understand that a
    substantial change of circumstances would permit
    either party to make an application to a Court of
    competent jurisdiction to modify the alimony
    provisions set forth in this agreement. Neither party
    has waived his or her right to seek a modification of
    alimony as provided for under the case of Lepis.
    On October 3, 2013, defendant was found in violation of litigant's rights
    for his failure to pay alimony and child support, his outstanding obligations
    amounting to $19,393.89, as well as for his failure to provide proof of income
    A-3815-17T2
    3
    and employment pursuant to the PSA. Defendant was also ordered to pay
    counsel fees. Defendant sought modification of his support obligations based
    on his reduced income as well as a reduction in child support based upon the
    emancipation of his oldest child.
    In December 2011, defendant was involuntarily terminated from his
    position. He said he was unable to secure work in advertising due to the
    changing landscape of the job market, that his position had been largely
    outsourced by robotics, and that he is "aged out of the advertising industry" at
    47 years old. Defendant obtained employment as a truck driver in October
    2017 in part because the job did not require expensive training and offered
    more stability than the advertising industry. Defendant detailed his financial
    situation and his efforts to find employment. He also retained an expert who
    prepared a vocational evaluation and earning capacity assessment. Defendant
    presented proof of job applications sent between January and June 2017,
    resumes, and networking efforts.     He certified he had sent over 600 job
    applications between December 2011 and June 2017, and that he had also been
    operating a consulting business in an effort to meet his support obligations.
    He had attended seminars and continuing educational opportunities in his field
    before changing careers.    He had changed careers to obtain more reliable
    A-3815-17T2
    4
    employment.     Defendant's anticipated income as a truck driver, which is
    determined by mile at a rate of forty-two cents per mile, is between $54,600
    and $65,520, and he requested that the court impute an income to him of
    $60,000 for purposes of recalculating his support obligations.   Defendant also
    provided his tax returns from 2012 to 2016 and certified that he had filed for
    bankruptcy. He had liquidated his savings and began living with his aunt; he
    had $556.13 in his checking account and $16,500 in credit card debt.
    Defendant had depleted his retirement accounts, savings accounts, life
    insurance and stock holdings in order to meet his support obligations.
    Defendant provided the following chart in his application, demonstrating
    his fluctuation in salary:
    2012: $31,651 (includes unemployment)
    2013: $75,835 (includes unemployment)
    2014: $151,247
    2015: $148,065
    2016: $37,088
    2017: $18,420
    Defendant's vocational assessment expert opined that defendant:
    has made a successful transition from his prior
    occupation to an unrelated occupation . . . [which] was
    necessitated by his lack of work and earnings in his
    prior occupation as a Creative Art Director, due in
    large measure to technological changes in the
    advertising industry and the limited number of
    opportunities presently and projected for the future in
    A-3815-17T2
    5
    this field. Although his current occupation is lower
    paying than his prior creative work, it is steadier work
    with ample opportunity for sustained employment and
    wage growth over time.
    The expert recommended that defendant continue working as a truck driver.
    The motion court issued an order denying defendant's request to reduce
    his alimony obligations based on substantial change of circumstances, and
    denying a plenary hearing. The court determined that defendant had not made
    a prima facie showing of changed circumstances under Lepis, 
    83 N.J. at 151
    ,
    noting that:
    the court acknowledges that the [d]efendant made
    efforts in applying to jobs as evidenced by the proofs
    of applications he submitted. However, this court
    holds that the proofs are not enough. Defendant is not
    impaired, and seeks the change in alimony on his
    inability to secure employment with pay similar to the
    pay he had prior to divorce . . . . Defendant's limited
    proofs only show a consistent job search for the period
    of January to June 2017. There are no proofs of a job
    search from the time that [d]efendant's purported
    financial troubles began, nor has [d]efendant provided
    proofs of a continued job search until the time of
    filing. Furthermore, [d]efendant has not shown a
    meaningful effort to improve their status. While
    [d]efendant has shown [his] application efforts, there
    are no other efforts taken that would improve
    [d]efendant's chances and ability to find work or
    substantially similar work. Lastly, while the [c]ourt
    acknowledges [d]efendant's application efforts within
    the area of a "creative director" position, there were no
    proofs submitted beyond these applications that
    A-3815-17T2
    6
    [d]efendant applied for similar work arising out of the
    same experience or skill set.
    The motion court did, however, grant defendant's request to reduce his
    child support obligation based on the emancipation of the eldest child,
    establishing the support on an annual income of $65,000.        After plaintiff's
    counsel brought this anomaly to the court's attention, the court issued an April
    13, 2018 order amending defendant's child support obligation to reflect the
    imputed income of $150,000.
    A motion to modify alimony "rests upon its own particular footing and
    the appellate court must give due recognition to the wide discretion which our
    law rightly affords to the trial judges who deal with these matters." Donnelly
    v. Donnelly, 
    405 N.J. Super. 117
    , 127 (App. Div. 2009) (quoting Larbig v.
    Larbig, 
    384 N.J. Super. 17
    , 21 (App. Div. 2006)). Our review of the trial
    court's discretionary determination regarding defendant’s support obligations
    "is limited to whether the court made findings inconsistent with the evidence
    or unsupported by the record, or erred as a matter of law." Reese v. Weis, 
    430 N.J. Super. 552
    , 572 (App. Div. 2013) (quoting Cesare v. Cesare, 
    154 N.J. 394
    , 411 (1998)); see also Storey v. Storey, 
    373 N.J. Super. 464
    , 479 (App.
    Div. 2004). We are, however, less deferential to a determination without a
    hearing, especially when material facts are at issue. N.J. Div. of Youth &
    A-3815-17T2
    7
    Family Services v. G.M., 
    198 N.J. 382
     , 396 (2009) ("when no hearing takes
    place, no evidence is admitted, and no findings of fact are made . . . appellate
    courts need not afford deference to the conclusions of the trial court.").
    A "trial court’s interpretation of the law and the legal consequences that
    flow from established facts are not entitled to any special deference."
    Manalapan Realty, L.P. v. Twp. Comm. of Manalapan, 
    140 N.J. 366
    , 378
    (1995).   We review a motion court's interpretation of the law de novo.
    Occhifinto v. Olivo Constr. Co. LLC, 
    221 N.J. 443
    , 453 (2015) (citing State ex
    rel. A.B., 
    219 N.J. 542
    , 554-55 (2014)).
    Courts retain the power to modify support orders entered where there is
    prima facie evidence of a change in circumstances even where there is a
    property settlement agreement, as such settlement agreements should be
    enforced only "to the extent they are just and equitable." Innes v. Innes, 
    117 N.J. 496
    , 518 (1990) (quoting Schlemm v. Schlemm, 
    31 N.J. 557
    , 581-82
    (1960)). In determining whether a downward modification is appropriate, the
    court may consider the supporting spouse's income and assets.           Miller v.
    Miller, 
    160 N.J. 408
    , 422 (1999). A hearing is necessary "to resolve a genuine
    issue of material fact . . . ." Adler v. Adler, 
    229 N.J. Super. 496
    , 500 (App.
    Div. 1988).
    A-3815-17T2
    8
    The Lepis standard for modification is two-fold: (1) the party moving for
    modification bears the burden of making a prima facie showing of changed
    circumstances; and (2) if a prima facie showing has been made and a genuine
    dispute exists as to a material issue of fact, the court should then order
    discovery and a plenary hearing to determine whether the obligor has the
    ability to pay. Lepis, 
    83 N.J. at 157-59
    . A decrease in the supporting spouse’s
    income may constitute a changed circumstance warranting modification of
    support obligations. 
    Id. at 151
    .
    Defendant demonstrated a prima facie case of a significant good-faith
    reduction of income, to justify a plenary hearing, from the imputed $150,000
    as an advertising art director to the claimed actual income of $60,000 working
    as a truck driver.    He also demonstrated that his assets were completely
    dissipated. Whether defendant made sufficient efforts to obtain employment in
    advertising, or another higher-paying field, may be fleshed out at a plenary
    hearing after discovery is exchanged.
    As part of the plenary hearing the court may, if it sees fit, also determine
    the intent of the parties in entering into a PSA that seems to preclude a
    reduction of support based on a reduction of income in one paragraph, while
    describing the parties' agreed-upon right to seek modification of alimony based
    A-3815-17T2
    9
    on a "significant change of circumstances."        In the unlikely event a Lepis
    waiver was intended, see Morris v. Morris, 
    263 N.J. Super. 237
    , 239-40 (App.
    Div. 1993), the court need not determine whether a sufficient change in
    circumstances exists to modify support. See also Ordukaya v. Brown, 
    357 N.J. Super. 231
    , 236 (App. Div. 2003) ("plaintiff waived any claim for support and
    agreed to an 'anti-Lepis' provision precluding any claim for change in
    circumstances supporting a claim for alimony.").
    Reversed and remanded for a plenary hearing.            We do not retain
    jurisdiction.
    Reversed.
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    10