Collura v. Collura

18 Misc. 3d 373
Nassau County District Court·Decided December 10, 2007·Published

Opinion

OPINION OF THE COURT

Edmund D. Dane, J.

[374]*374In this small claims matter the plaintiff, Cynthia Collura, commenced this action against her father, Ronald Collura, Sr., to recover the sum of $4,000 plus interest. The plaintiffs cause of action derives from the defendant’s alleged violation of an infant compromise order executed by Honorable Joseph Saladino of the Supreme Court of Nassau County on October 8, 1992. The defendant filed a counterclaim for $5,000 based upon his daughter’s alleged failure to repay a college tuition loan.

On August 22, 2007 a nonjury trial was held. The plaintiff testified on her own behalf. The defendant presented the testimony of himself, as well as the testimony of his wife. Based upon a preponderance of the credible evidence adduced at the trial, the court makes the following findings of fact and conclusions of law.

Findings of Fact

In 1992, the plaintiffs father commenced a personal injury action on behalf of his minor daughter in the Nassau County Supreme Court. The underlying action resulted from injuries sustained by Cynthia Collura from a bicycle accident. The action was settled by way of an infant compromise order dated November 16, 1992 (see plaintiffs exhibit 1 marked into evidence). Pursuant to the court’s order, the action was settled for the total sum of $6,000. Of that amount $4,000 was to be deposited into the State Bank of Long Island located at 2 Lincoln Avenue, Rockville Centre, New York. The funds were to be held jointly by the defendant (plaintiffs father) and a bank officer for the plaintiffs benefit.

The infant compromise order states, in pertinent part, the following language:

“ORDERED, that the balance of the said settlement to wit:
“The sum of FOUR THOUSAND ($4,000.00) DOLLARS, the balance after attorneys fees shall be paid by the respondent to the parent jointly with an officer of the State Bank of Long Island, located at 2 Lincoln Ave Rockville Centre NY to be deposited in a highest interest bearing account including term deposits in the name of the parent to the credit of the said infant, subject to the further order of this Court, and it is further,
“ORDERED, on presentment of proper proof to the depository that the infant has attained the age of 18 [375]*375years, the depository shall pay upon demand all monies held in the account to the herein named infant, and it is further . . .
“ORDERED, that upon full compliance with the terms of this Order, the parent be and is hereby authorized and empowered to execute and deliver a General Release on behalf of the infant, and to deliver any other instrument necessary to effectuate the settlement herein.”

The language of the court’s order clearly established that the funds were to remain on deposit until the plaintiff attained the age of 18 years old. At trial, the plaintiff testified that it was her desire to have the funds remain on deposit with the State Bank of Long Island until she became engaged to be married. However, upon her engagement approximately IV2 to 2 years ago, she learned that the funds had not been deposited in the State Bank of Long Island. Rather, her father had deposited the funds at Long Island Savings Bank (now Astoria Bank) in contravention of the infant compromise order (see plaintiffs exhibit 2 [letter from State Bank of Long Island]). The plaintiff further testified that during this period her relationship with her father “fell apart.”

At trial it was conceded by the defendant that he did not deposit the funds with the State Bank of Long Island as required by the infant compromise order. Rather, the funds were deposited at Long Island Savings Bank. Thereafter, the funds were withdrawn by the defendant and used to pay a portion of his daughter’s first semester at SUNY Stony Brook. The remainder of the plaintiffs college expenses were paid by the defendant and his wife by taking a home equity loan.

In support of the defendant’s counterclaim for the sum of $5,000, the defendant testified that he entered into an agreement with his daughter whereby she agreed to repay her college loan after graduation and upon her becoming employed. The defendant testified that his daughter agreed to repay the sum of $50 per week, which, to date has not been paid. The defendant further testified that his daughter “knew what we were spending her money on and that if she objected, she should not have waited so long to ask for her money.”

The court also heard testimony from the plaintiff with regard to the purported loan. The plaintiff testified that, despite her father’s claims, she had no agreement with him to repay her college tuition.

[376]*376The court further heard the testimony of the defendant’s wife (plaintiff’s mother). Mrs. Collura testified that while her husband may have told his daughter the money was a loan, she did not. Mrs. Collura also testified that while she may have hoped the money was to be repaid, she “didn’t expect it.” Lastly, Mrs. Collura, in glancing at her husband, stated that “we did the best we could.”

Conclusions of Law

Small claims actions in the District Court of Nassau County are to be conducted in an informal manner (UDCA 1804). UDCA 1804 provides, in pertinent part, that:

“The court shall conduct hearings upon small claims in such manner as to do substantial justice between the parties according to the rules of substantive law and shall not be bound by statutory provisions or rules of practice, procedure, pleading or evidence, except statutory provisions relating to privileged communications and personal transaction or communications with a decedent or mentally ill person.” (Emphasis added.)

However, doing substantial justice still requires adherence to substantive law and a reasonable adherence to procedure (Woodson v Frankart Kings Inc., 98 Misc 2d 1101 [Civ Ct, Kings County 1979]). Moreover, doing substantial justice does not mean substantial justice for the plaintiff or the defendant alone, but rather substantial justice for both of the parties (see Schneider v Town of Orangetown, 171 Misc 2d 497 [1997]).

Here, the crux of the dispute lies within the meaning and purpose of CPLR article 12 which governs infant compromise proceedings and whether the defendant’s conduct was a violation of the compromise order. The purpose of infant compromise proceedings brought under article 12 of the Civil Practice Law and Rules is to ensure the safeguarding of funds to which an infant or incapacitated person becomes entitled as the result of a settlement or judgment (Valdimer v Mount Vernon Hebrew Camps, 9 NY2d 21 [1961]; Gold v United Health Servs. Hosps., 95 NY2d 683 [2001]). In accordance with the principle that a court must protect the interests of infants and other wards of the court, no settlement of a ward’s claim is enforceable unless the parties obtain judicial approval of the settlement. The court must scrutinize the fairness and reasonableness of a proposed settlement to ensure that it is in the ward’s best interest (Alex[377]*377ander, Practice Commentaries, McKinney’s Cons Laws of NY, Book 7B, CPLR 1207). Considerable amount of discretion is permitted by a court in inquiring into the reasonableness and propriety of the settlement of an infant’s cause of action (Maguire v New York R. T. Corp.,

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Collura v. Collura, 18 Misc. 3d 373 (N.Y. Super. Ct. 2007).

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