Dillon v. Marelli

185 Misc. 2d 461, 713 N.Y.S.2d 449, 2000 N.Y. Misc. LEXIS 349
CourtNew York County Courts
DecidedAugust 16, 2000
StatusPublished

This text of 185 Misc. 2d 461 (Dillon v. Marelli) is published on Counsel Stack Legal Research, covering New York County Courts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dillon v. Marelli, 185 Misc. 2d 461, 713 N.Y.S.2d 449, 2000 N.Y. Misc. LEXIS 349 (N.Y. Super. Ct. 2000).

Opinion

[462]*462OPINION OF THE COURT

Meryl J. Berkowitz, J.

Defendant Susan E. Marelli, as administratrix of the estate of Robert Vorbeck, deceased (hereinafter Marelli) has moved this court pursuant to CPLR 1312 (4) for the release of funds to pay past and future expenses, including professional (legal and accounting) fees, and to permit the estate to maintain a “miscellaneous reserve fund for future fees and expenses.” Plaintiff has opposed this relief, except as to fees and expenses pertaining directly to administration of the estate after the date of Marelli’s appointment, which it leaves to the court’s discretion to allow “reasonable and bona fide” fees.

This is a civil preconviction forfeiture action wherein the criminal defendant, Robert Vorbeck, died during the pendency of the criminal proceeding but after the issuance of an order of attachment and restraining order in this action. On February 10, 2000, this court issued an order confirming the order of attachment. It appears that the total value of these attached assets is approximately $800,000.

Defendant Marelli has stated in her affidavit dated March 25, 2000, that the estate has no assets other than those under attachment with which to pay its expenses as required under the last sentence of CPLR 1312 (4). Defendant requests the sum of $167,952.83 for its debts and anticipated expenses and professional fees as of May 23, 2000. This does not include the sum of $9,017.43 released pursuant to a so-ordered stipulation dated May 5, 2000.

Plaintiff opposes much of the requested relief on several grounds. First, it opposes reimbursement of monies expended by former defendants Lorraine M. Vorbeck and Joseph J. Vorbeck, parents of the deceased. Second, it opposes relief of monies expended by Marelli prior to her appointment as administratrix of the estate. Lastly, plaintiff opposes the propriety of certain expenses listed by Marelli as administration expenses (and of a future “reserve” fund) and the reasonableness of the professional fees requested. It appears from a review of the documents submitted by Marelli that much of the nonfees debts or expenses incurred were expended on behalf of Robert Vorbeck after his arrest or on behalf of his estate prior to appointment of Marelli. Additional funds were or will be expended for maintenance, operation or preservation of property which is the subject of the order of attachment.

CPLR 1312 (4) provides that a party may obtain the release of funds for “the payment of reasonable living expenses.” Since [463]*463the relevant party herein is an estate, the court finds that this language is broad enough to include reasonable expenses of administration of the estate. Additionally, certain of the claimed past and future expenses directly relate to “maintenance, operation, or preservation” of attached property, that is, a co-op apartment in New York and real property in Pennsylvania. Further, since the plaintiff has not shown there are any other assets with which to pay these expenses, the administration of the estate cannot proceed without release of necessary and reasonable sums.

The court has reviewed the specific items on the list set forth as schedule A to the moving papers and, for purposes of this litigation only, finds that Marelli is entitled to the release of monies for the following debts or expenses already incurred:

Funeral luncheon $ 284.70
Dinner - wake 507.70
Funeral flowers 350.00
Attorneys’ fees (criminal proceeding) 5,000.00
Attorneys’ fees (administration proceeding) 2,500.00
$ 8,642.40

The parties agree that the court issue an order allowing the following sums be released to Marelli upon receipt of funds from the sales of the respective properties and appropriate proof of the sums due:

Maintenance costs (co-op)
Costs related to co-op sale
Pa. property annual dues
Pa. property tax
Costs related to Pa. prop, sale
$ 4,720.81
2,338.05
50.70
50.91
7,500.00 (estimated)

Defendant shall prepare appropriate orders on notice upon receipt of the proceeds of said sales and itemization of the estimated items.

Defendant requests the release of between $6,000 and $10,000 for accounting fees for the estate, but acknowledges that only seven hours of work has been performed to date by the accountant (at $300/hour). Neither an affidavit by the accountant nor a retainer agreement has been provided to the court. However, there is no dispute that accounting work is reasonable and necessary for administration of the estate and the court will allow release of $2,500 for said purpose, without prejudice to renewal or further request in Surrogate’s Court or this court.

[464]*464More troubling is the requested release of approximately $133,500 for past and future attorneys’ fees in both the administration and forféiture proceedings. Marelli acknowledges that $2,500 has been paid to counsel for his services in the administration proceeding; the court has above approved reimbursement from estate funds of said sum. The court will not now grant future legal fees as to the administration proceeding and denies that portion of the motion, without prejudice to its renewal or further request in Surrogate’s Court or this court.

Marelli’s counsel states that he and his associate have expended over 390 hours on this case to date (counsel has provided a breakdown of these hours by category of work performed). At the stated hourly rates, the request for services to date exceeds $100,000. Counsel also requests an additional sum for anticipated future legal services.

Plaintiffs position is that the sums and the hourly rates requested are excessive and that movant has not provided a retainer agreement nor any explanation as to the large amount of time spent on this matter to date (except that defendant states it to be a case of first impression). Plaintiff also suggests Code of Professional Responsibility DR 2-106 (22 NYCRR 1200.11) as an appropriate framework in which to determine reasonable attorneys’ fees.

The court is aware that attorneys’ fees are, in the absence of agreement, to be determined in the court’s discretion based upon a review of all the circumstances of case. The court also recognizes that the statutory scheme affords the court discretion to determine “reasonable and bona fide attorneys’ fees and expenses for the representation of the defendant in the forfeiture proceeding” to be paid from the assets under attachment if no other assets are available to pay said sums. (CPLR 1312 [4].)

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Cite This Page — Counsel Stack

Bluebook (online)
185 Misc. 2d 461, 713 N.Y.S.2d 449, 2000 N.Y. Misc. LEXIS 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dillon-v-marelli-nycountyct-2000.