In re Baby M, 109 N.J. 396, 537 A.2d 1227 (N.J. 1988)
In re Baby M is the seminal American case on traditional surrogacy. Decided by the New Jersey Supreme Court in 1988, it confronted, for the first time at a state supreme court level, a privately negotiated surrogacy agreement in which a woman agreed to be artificially inseminated with the intended father's sperm, carry the child to birth, and then surrender the child in exchange for money and a promise to terminate her parental rights so the father's wife could adopt.
Are paid traditional surrogacy contracts that require a birth mother to surrender her child and terminate her parental rights enforceable under New Jersey law, and, if not, how should custody be determined between the child's two legal parents?
Private agreements cannot terminate or transfer parental rights in contravention of New Jersey's adoption and parentage statutes. Consideration paid to a birth parent in connection with the surrender of a child or consent to adoption is prohibited as against public policy. A mother's pre-birth or immediate post-birth consent to surrender a child is not binding absent statutory compliance with safeguards designed to ensure voluntariness and judicial oversight. When custody is contested between two legal parents, courts apply the best-interests-of-the-child standard without presumption in favor of either parent and without enforcing unlawful contractual terms.
The surrogacy contract was void and unenforceable as against New Jersey statutes and public policy; the termination of Mary Beth Whitehead's parental rights and the adoption by Elizabeth Stern were reversed. Applying the best-interests standard, the Court nevertheless awarded custody to the biological father, William Stern, and recognized Whitehead's status as the child's legal mother with visitation rights.
Baby M is the foundational case distinguishing family-law limits on private ordering from contract enforcement in the surrogacy context. It teaches that paid traditional surrogacy agreements are unenforceable where they contravene adoption statutes and public policy, and that parental rights cannot be signed away by contract. At the same time, it clarifies that custody between two legal parents turns on the child's best interests, not on enforcing an invalid agreement. The decision catalyzed legislative responses nationwide, including statutes that later authorize and regulate gestational (non-genetic) surrogacy while continuing to bar baby-selling and pre-birth surrenders.