Creditor’s claim against estate discussed and rejected In the Matter of ...

In the Matter of the Estate of Forgett
Creditor’s claim against estate discussed and rejected In the Matter of the Estate of Forgett A-0443-17T4
Estate creditor appealed the approval of executors' final accounting and the dismissal of her exceptions. Decedent business owner died in 2002. Creditor worked for one of the businesses and filed a workers' compensation claim against employer after falling in a parking lot owned by decedent individually. She amended her complaint to include estate and obtained a $230,000 judgment against estate in 2005. Co-executor sought advice from court concerning executor son's offer to purchase decedent's company for nominal value and assume debt owed to bank. Creditor was served with notice, did not challenge the proposed stock purchase agreement and Chancery Court approved it. In 2011, creditor sued co-executors for damages and alleged diversion of estate assets. She asserted the stock purchase agreement was a fraudulent conveyance and her judgment had priority over other creditors. She dismissed the complaint but Chancery Court ordered estate to file a verified complaint for judgment of insolvency and instructions. Creditor filed exceptions which Chancery Court dismissed. Estate's final accounting asserted creditor was not a judgment creditor since her judgment was obtained after decedent's death. Chancery judge agreed creditor was a general judgment lien creditor. Court agreed creditor had no judgment against decedent and no lien on his property prior to his death, was general claimant of the estate and not entitled to any priority.
Source https://www.law.com/njlawjournal/almI...
Ken Vercammen is a past author for NJ Law Journal.
We recommend you subscribe to NJ Law Journal https://store.law.com/registration/de...