Cruz v. McAneney

Margaret Cruz (plaintiff) sued James P. McAneney (defendant) to recover compensation McAneney received from the September 11 Victim Compensation Fund (fund) on behalf of McAneney’s deceased sister, Patricia McAneney (Patricia). Patricia and Cruz had been domestic partners for 15 years when Patricia died intestate in the September 11, 2001 terrorist attacks on New York City. After Patricia’s death, McAneney filed a claim for compensation from the fund, which Congress established via the Air Transportation Safety and System Stabilization Act to compensate families of victims who were injured or killed on September 11. While McAneney’s claim was pending, Cruz filed a statement of financial interest with the fund as Patricia’s domestic partner. Cruz was informed by the special master who administered the fund that an award amount had already been calculated based on Patricia as a single person. In light of the new information that Patricia had been one-half of a cohabitating couple, the special master recalculated the claim and nearly doubled the award amount. However, the special master initially refused to distribute the amount until Cruz and McAneney reached an agreement about dividing the funds. Negotiations were unsuccessful, and ultimately the special master distributed the entire award to McAneney as Patricia’s personal representative. McAneney distributed the entire amount to himself, and Cruz sued to compel McAneney to disburse all or part of the award to her on the grounds of breach of fiduciary duty, constructive trust, and unjust enrichment. McAneney moved to dismiss the complaint for failure to state a cause of action, but the trial court denied the motion, and McAneney appealed.