Griswold v. McDonald

81 Misc. 376, 143 N.Y.S. 341
CourtNew York Supreme Court
DecidedJune 15, 1913
StatusPublished
Cited by1 cases

This text of 81 Misc. 376 (Griswold v. McDonald) 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
Griswold v. McDonald, 81 Misc. 376, 143 N.Y.S. 341 (N.Y. Super. Ct. 1913).

Opinion

Delany, J.

The plaintiffs in this action as administrators of Henry U. Perry, deceased, seek the enforcement of a decree of the Surrogate’s Court of Sullivan county and certain other equities (about which there is no dispute), provided this court deems it proper that the enforcement of the surrogate’s decree should be directed. The defendants in this action are the heirs at law of Charles McDonald, deceased, and some of their sureties on undertakings given by them on the withdrawal of certain proceeds of sale under a judgment had in a partition action. It appears, ■ among other facts, that some time in 1891 Charles McDonald executed a bond and mortgage which were ultimately assigned to the committee of plaintiffs’ intestate, then an incompetent, to secure $23,000. On May 5, 1907, [379]*379McDonald, the mortgagor, died intestate, having prior to his death conveyed the mortgaged property, subject to the mortgage, to some other person, and on May 31,1907, one James A. Roberts was appointed administrator of the decedent’s estate. In November, 1907, the plaintiffs as committee of Perry, the assignee of the mortgage, began an action for foreclosure. An interlocutory jugdment directing the sale of the mortgaged premises was obtained; a sale was held and a final judgment for a deficiency of $9,110.24 was entered against Roberts, as administrator of McDonald, deceased. At about the time when the foreclosure action was begun, an action for the partition of the estate of McDonald, under section 1538 of the Code, was commenced by one of the heirs, and in January, 1910, final judgment in said action was entered directing the referee to divide the net proceeds of the sale in partition into eight equal parts and pay the same into the Supreme Court by depositing them with the treasurer of Sullivan county to the credit of the eight heirs entitled to share in the proceeds. Thereafter, several of the eight defendants withdrew their shares, and upon so doing each filed with the clerk of Sullivan county his bond with certain sureties, the condition of such obligation being that if the county treasurer should pay either of the aforesaid eight the amount deposited to his credit the person receiving the said payment would pay all claims not exceeding the amount of the deposit, to his credit when required to do so by order of the Supreme Court or by order of the Surrogate’s Court in a proceeding to mortgage, lease or sell the real property of McDonald, the decedent. The plaintiffs herein, as creditors of McDonald, deceased, began a proceeding in the Surrogate’s Court in Sullivan county in May, 1910, under the provisions of chapter 18, title 5, sections 2749 to 2801, of the Code, praying [380]*380for the decree for the sale, mortgage or lease, etc., of McDonald’s real property to pay his debts, and thereafter a decree was made wherein it was found that the judgment in the foreclosure action entered March 3, 1909, in favor of the plaintiffs, as committee, etc., against Roberts, as administrator of McDonald, was a valid and subsisting debt against the decedent McDonald’s real property of which he died seized; that the plaintiffs were entitled to have a sale of the same, and that, as it had already been sold, plaintiffs’ debt was a lien upon the proceeds resulting from the sale of the said real estate in the partition action, and which were deposited with the treasurer of Sullivan county. Regarding the fund resulting from the sale of the real estate in the partition action in the same light as if it were the real property itself (to which but for the change in its condition it is clear they, as creditors, would be entitled to have recourse), the plaintiffs proceeded under the provisions of chapter 18, title 5, sections 2749 to 2801 of the Code, before the surrogate and obtained the' decree, as set forth above, and they now seek to have that decree enforced against the fund in the hands' of the county treasurer and bring this action in this court because the .fund in question is under its control. The objections which are urged to the demands herein made are: First, that the proceeding conducted before the surrogate is not the proper one, and is justified by no provision of law, because there was no real estate of the decedent to sell at the time of the presentation of the petition to the surrogate for the sale of the decedent’s property to pay debts; and, second, that, even if it were the proper proceeding, the surrogate did not acquire jurisdiction of the same because of the failure of the petitioners to comply with certain statutory provisions necessary to confer jurisdiction, in that citation was not served [381]*381upon (a) the administrator of the decedent McDonald’s estate, (b) the occupants of the real estate of the decedent which had been sold in the partition action, and (c) the mortgagees of the interest of one of the heirs of the decedent.' Before the amendment to section 1538 of the Code, which now allows the sale of the real estate free and clear of the decedent’s debts in. a partition action, it could not be so sold, and, if sold by the heirs at law, a creditor, in a proper case, had a right to pursue the real property of the decedent and to resell it in pursuance of a decree providing for the payment of a decedent’s debts. The plaintiffs herein claim that there being no other provision of the Code applicable to a case where property is sold free from debts, the rights of a creditor are unaffected by the sale in the partition action, except that the money acquired from the sale stands in the place of the property sold, and is held for the benefit of the creditors, and may be reached in a proceeding under section 18, title 5, sections 2749 to 2601, the decree adjusting itself to the changed condition of the property. No reason appears to be in conflict with this contention. On this suggestion it may be said that chapter 18, title 5, is still effective. It has been held that: “ The funds in the hands of the chamberlain, being the proceeds of real property owned by the decedent at the time of his death, are clearly applicable to the payment of his creditors, and a proceeding under title 5, chapter 18, of the Code of Civil Procedure is the appropriate method to determine who are such creditors, and how much is due to each of them respectively, the decree in such a proceeding operating not on the. real estate itself, but upon the fund which represents it. ’ ’ See Lichtenberg v. Lichtenberg, 156 App. Div. 532. “Notwithstanding such sale the proceeds of the real property of the decedent stood in the place of the land until final distribution. ’ ’ Matter [382]*382of Dusenbury, 34 Misc. Rep. 666. I am therefore clearly of the opinion that the proceeding conducted before the surrogate was the proper one and that the prior sale of the property in the partition action did not affect it. The question, however, as to whether in this case the surrogate acquired jurisdiction will depend upon a. consideration of the provisions of section 2749 et seq. of the Code. The proceeding to sell real estate in the Surrogate’s Court is a statutory one. It is conceded that a compliance with the provisions of-the statute is necessary for the acquisition of jurisdiction.

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Bluebook (online)
81 Misc. 376, 143 N.Y.S. 341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/griswold-v-mcdonald-nysupct-1913.