Conant v. Wright

19 Misc. 321, 44 N.Y.S. 727
CourtNew York Supreme Court
DecidedJanuary 15, 1897
StatusPublished

This text of 19 Misc. 321 (Conant v. Wright) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Conant v. Wright, 19 Misc. 321, 44 N.Y.S. 727 (N.Y. Super. Ct. 1897).

Opinion

Eussell, J.

The plaintiff, by his .complaint, seeks to invalidate and declare void a decree of the Surrogate’s Court of St.' Lawrence county appointing the defendant.Wright trustee, as successor to Isaac L. Seymour, and directing payment of commissions to the executors of a deceased trustee; to compel the payment to the' plaintiff by the defendants, of a sum so paid as commissions and to enjoin the defendant Wright from accounting as testamentary trustee.

The creator of the trust by will, George N. Seymour, died in 1859, leaving his children surviving, George D. Seymour, Isaac L. Seymour and Sophia M. Oonant. He left his widow and the two sons executors and also appointed them as trustees of a fund •of $22,000 to be held in trust for the daughter, Sophia M. Oonant, the income thereof to be paid to her use and' the principal sum to'vest in her children or heirs, the plaintiff being her sole surviving heir, Mrs. Oonant having died after the proceedings in Surrogate’s Court complained of were taken. At the beginning of those proceedings "Isaac L. Seymour was the only surviving executor or trustee and his effort to resign his trust and obtain his discharge produced the events out of which this cause of action arises.

Attached to' the complaint are copies of the proceedings taken In Surrogate’s Court. On the 7th day of December, 1892, Isaac L. Seymour petitioned the Surrogate’s Court, stating in his petition that Sophia M. Oonant was willing he should be relieved from [323]*323his duties and another trustee substituted; that the executors of his former cotrustee, George D. Seymour, account for the trust estate coming to their hands and that the petitioner’s account, as trustee, be judicially settled and a decree made allowing him to resign his trust and discharging him, and for a citation to all persons interested, with a general prayer for relief.

Hpon that petition a citation was issued, served upon all the parties in interest, including Mrs. Conant and the plaintiff. On the return day of the citation all the parties in interest appeared except Mrs. Conant and the plaintiff. On the 13th day of February, 1893,' a decree was made by the surrogate embodying the account of Isaac L. Seymour, as sole surviving trustee, and of the executors of the deceased trustee, George D. Seymour, reciting that the trustee and executors have fully accounted and adjudging that the account was thereby finally and' judicially settled' and allowed, and also ordering and adjudging that sufficient reasons exist for allowing Isaac L. Seymour to resign his trust and discharging him accordingly. His account was thereby accepted and allowed and, it being necessary to appoint another trustee to complete the execution of the trust, the defendant George A. Wright was appointed sole trustee and Isaac L. Seymour, and the executors of George D. Seymour, were required forthwith to pay over all moneys and other property belonging to their trust to the new trustee to the end that a final decree be made discharging them accordingly, and accepting the resignation of the said Isaac L. Seymour. The decree further .provided that as the executors of the deceased trustee claimed commissions upon the trust estate, and it being stipulated in open court that such contest be settled by allowing commissions on the income account only, with annual rests, such commissions were allowed, one-third to Isaac L. Seymour and two-thirds to the executors of George D. Seymour, they waiving all claims to commissions on the principal of the trust estate. And it was further provided that the expenses, of the accounting be taken from the- principal of the estate. Isaac L. Seymour was directed to retain the amount of the commissions, being $2,214.59, and the amount of expenses, dr if he and the exécutors chose they might turn over to the new trustee the whole of the trust estate, in which case he should repay them the aforesaid commissions and expenses.

On the 8th day of March, 1893, the new trustee,' Wright, receipted the property as delivered to him by Isaac L. Seymour [324]*324and the executors, and on the 2d day of March, 189é, an order was made discharging Isaac L. Seymour as such trustee and also discharging the-executors. It was stated, however, in the receipt and the. order1 that, in place of the-gas stock to the amount of $275, the note of one Findlay was taken, indorsed personally by the said, Isaac L.'Seymour. "

It is further alleged that in March and April, 1893, the new trustee, Wright, paid to the executors of the deceased trustee their two-thirds of the commissions and to the counsel for the parties who appeared the expenses allowed by the surrogate, obtaining ' the money by selling Hnited States and West Shore bonds belonging to the trust estate, the former trustee, Isaac L. Seymour,, having refused, tó accept any commissions, and .he is -not made a party to this suit.

It is also alleged that shortly after the death of Mrs. Oonant, Wright, the new trustee, while evading a delivery of the trust fund.to the plaintiff,-in May, 1896, filed a petition for -the settlement o'f his. account as -trustee, and procured the same to be served ' upon the plaintiff, but has delivered only' a portion of the personal estate and has sold some of the real estate. The persons to whom he has sold-the. real estate have not. been ina.de parties to this litigation, and, therefore, this suit cannot be an adjudication finally affecting the right of those parties to hold the lands conveyed: As now "claimed, the real object of the action is to have set aside the proceedings of the surrogate discharging Isaac L. Seymour, appointing Wright trustee, allowing commissions and expenses and obtain the payment by Wright and the executors of the deceased trustee of-the amount owing plaintiff for the sums paid for commissions and expenses and to procure an injunction against an accounting by Wright in the Surrogated Court..

The. right to maintain this action depends upon the solution of the fundamental question on which the claim of the plaintiff' is based, that the Surrogate’s Court had no jurisdiction to appoint a- new trustee until the surviving trustee was fully discharged,, and had not' only ceased to have any power as a trustee but had also ceased to be in any way responsible for any. of the assets belonging to the . trust. For if the surrogate had jurisdiction in a. proceeding' in-which the-life beneficiary and the plaintiff'were duly .served- with process, any errors committed by him, if there were errors, cannot be attacked collaterally, and can only be reviewed by motion before •him or by appeal’.

[325]*325If the statutes of the state have so enlarged the jurisdiction of the surrogate as to permit him to decide when a trustee should be relieved of his duties and a successor appointed, it would seem at first glance that, on the question of pow;er, the surrogate should have the right to stop a trustee from further exercising the duties of his trust where the circumstances indicate either an improper administration. of his duty 'or a failure of mental, physical or financial ability to continue the active performance .of his trust obligations. In that event, necessarily, he could not be discharged from all responsibility to the estate insta/nter with his deprivation of power voluntarily or involuntarily made, for, until an accounting, his pecuniary obligations to the estate should remain. We must then inquire whether, incidentally or expressly, the letter and spirit of the statutes for this emergency clothe the surrogate with the proper authority.

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Bluebook (online)
19 Misc. 321, 44 N.Y.S. 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conant-v-wright-nysupct-1897.