Mccann v. The George W. Newman Irrevocable Trust

458 F.3d 281 (3rd Cir. 2006)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

George W. Newman established and funded the George W. Newman Irrevocable Trust to acquire and hold property in Secaucus, New Jersey. Newman named as trustees Patricia Theryoung, Marc Joseph, and the National Community Bank, which was later acquired by the Bank of New York. Newman's development company, Allied Junction Corporation, was to develop the property acquired by the trust into a commercial and transportation center. Newman hired P as President, Chief Executive Officer, and Director of Operations of Allied Junction Corporation, which later became Secaucus Connection, L.L.C. A dispute arose over P's compensation. Theryoung and the Bank of New York, as trustees, agreed to settle the dispute by granting P an equity interest in the development project. Joseph, the third trustee, filed an action in state court to enjoin the other two trustees from entering the proposed agreement. P died in February 2002. On December 23, 2004, P's estate filed an action in federal court in New Jersey against D and its trustees, seeking to enforce the proposed agreement. Subject matter jurisdiction was based on diversity. P had changed his domicile from New Jersey to New Hampshire prior to his death. Ds filed a motion to dismiss for lack of subject matter jurisdiction under Fed. R. Civ.P. 12(b)(1), contending diversity of citizenship was lacking because all parties were domiciled in New Jersey. P had lived in New Jersey for over 3 decades. In 2000 P sold the house and moved their furniture and personal belongings to New Hampshire. P's wife became a full-time resident of New Hampshire, but P rented an apartment in Springfield, New Jersey, and continued to live and work in New Jersey during the week. He spent weekends in New Hampshire. P stopped commuting to New Jersey in November 2001, when he stopped receiving a salary from Secaucus Connection, L.L.C. During the three months between November 2001 and his death in February 2002, he traveled to New Jersey four times to attend meetings regarding the development project. He did not use his New Jersey apartment after January, but he did not cancel or break the lease or sublet the apartment. P voted in the New Jersey general election on November 6, 2001. He registered to vote in New Hampshire at the end of November, but never actually voted there prior to his death. On July 30, 1999, he obtained a New Hampshire driver's license, but he maintained a New Jersey license, which he renewed after receiving the New Hampshire license. When his wife became a full-time New Hampshire resident, Ps registered and insured all of their personal vehicles in New Hampshire. P had use of a company car in New Jersey. P transferred his personal bank accounts to New Hampshire but maintained a brokerage account in excess of $2.6 million in New Jersey. Federal income tax returns represented he was a New Jersey resident. His 2001 federal income tax return, prepared by his wife and filed after his death, represented he was a New Hampshire resident. The wife's application for continued health insurance coverage after P's death represented he was a New Jersey resident. P's funeral was held in New Jersey, but he was buried in New Hampshire. The District Court dismissed P's complaint for lack of subject matter jurisdiction. The court held that P had to demonstrate by clear and convincing evidence that he 1) took up residence in New Hampshire, and 2) intended to remain there.' P failed that burden of proof. P appealed.