In re Colah

6 Daly 51
CourtNew York Court of Common Pleas
DecidedApril 5, 1875
StatusPublished

This text of 6 Daly 51 (In re Colah) is published on Counsel Stack Legal Research, covering New York Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Colah, 6 Daly 51 (N.Y. Super. Ct. 1875).

Opinion

Daly, Chief Justice.

To avoid the necessity of evidence as to the value of the services of Mr, Jarvis, as committee of the estate, it was stipulated in writing by the attorneys of the ap[58]*58pellants, who are the committee appointed for Colah by the ■court in .Bombay, upon the arrival of the lunatic there, pursuant to the direction of this court, and the wife of Colah, residing in Bombay; that five thousand dollars, inclusive of the commission allowed by law, would be a reasonable and proper allowance to the committee if the court have any power to make an allowance, beyond the commission allowed by law. It is not ■questioned that the services of Mr. Jarvis in this case have been unusual and extraordinary; that they embraced services which he was not strictly bound to render, and that it was by a devotion of a large amount of his time, and especially by his activity and vigilance, that the money and property which this unfortunate East Indian merchant had with him, when he was found in this city bereft of reason, was secured and saved. Indeed, the appellants say in their points, that the stipulation was given to bring before the court the necessity of adhering to a well-established principle in a case where, if disposition rather, than duty prevailed, the rule would be disregarded, and I may add that this peculiar case has been so frequently and so fully before this court, that the fact is brought to our judicial knowledge, or it certainly has been to mine, that the getting and preservation of this property, or, indeed, I may say the rescue of a large part of it—nearly §70,000—was due to the unremitting efforts of the committee, and must have involved the devotion of a large amount of time.

It was held, by the unanimous decision of the Court of Ap■peals, in Tyler v. Gardiner (2 Abb. Ct. App. Dec. 247; 3 Keyes, 506), that the provisions of the Revised Statutes, fixing the allowance to be made for the services of guardians, executors and administrators, did not apply to a receiver, but that the •court, by whom he is appointed, has the power to fix the rate of his compensation, according to the circumstances of the particular case. The judge below held that the reasons given for this decision by Judge Parker, by whom the opinion of the •Court of Appeals was delivered, apply equally to a committee of a lunatic’s estate, and I think the judge was right in that conclusion. The reasons given in respect to a receiver are : 1. That "the statute does not fix the compensation of receivers, except in [59]*59•certain specified cases. 2. That the receiver is an officer of the court, and that the court, where there is no legislation to the contrary, has the authority to determine his compensation; and 3. That by the established rule of the Court of Chancery, the compensation or salary to be allowed to a receiver, was left to be fixed by the master, with reference to the labor and trouble of the case. All this applies to the committee of a lunatic’s estate. 1. He is not named in the statute, nor does he come under any one of the designations of guardian, executor or administrator. 2. He is an officer of the court (Ex parte Ord, Jac. R. 94), and the appointment cannot be controlled, even by a testamentary devise (Ex parte Ludlow, 2 P. Wms. 635). Upon the confirmation of the inquisition, the entire control over the lunatic and his estate is vested in the court (In the Matter of Clapp, 20 How. 389); and the committee, as its officer, acts in respect to the estate, by its authority and direction. He has to execute a bond, with two sureties, that he will faithfully perform his duty by conforming to the rules and practice of the court, and by observing its order and directions (2 Barb. Ch. R. 237, 663), (in the present case, the security is in $45,000); and, as a general rule, the committee cannot enter into any transaction or contract affecting the estate, nor pay any claim, nor institute any suit, without the sanction of the court (L'Amoureaux v. Crosby, 2 Paige, 428; Gorham v. Gorham, 3 Barb. Ch. R. 35, 36, 37; In the Matter of Salisbury, 3 Johns. Ch.R. 347; 2 Cary on Special Proceedings, and cases there cited, 27 to 30; 3 Adams’ Doctrine of Equity, 294 to 299). By the authority of adjudged cases and the practice of the Court of Chancery, the committee of the estate may he allowed by the court, in proper cases, a compensation or salary for his care, labor and trouble in taking charge of the estate.

Lord Hardwick (In re Annesly, Amb. 78), said the commitees of lunatics never have any allowance made to them for their trouble, that they were generally the relations or friends of the lunatic, who were supposed to have a regard for his welfare, and to undertake the case from charitable motives, and he refused to set a precedent; but as the management of the property in the case before him, was attended with great trouble, he [60]*60directed the committee to present a petition for an increase of maintenance, and said he would then order an additional allowance, which was doing indirectly what might as well have been done directly.

Lord Eldon, in Anon. (10 Ves. 104), said that he did not recollect an instance of allowing the committee of an estate of a lunatic anything for his care and trouble, and he refused to make an order for an allowance.

This practice, which required parties to undertake gratuitously onerous duties, and give security for the exact and faithful discharge of them, produced its natural effect. Cases occurred (Ex parte Warren, 10 Ves. 622), in which no one was found willing to incur this serious responsibility without compensation or indemnity, and Lord Eldon, some sixteen years afterwards, had to recede from this rigid rule in Ex parte Fermor (In re Errington, Jac. p. 404). “If the question were,” he "said, “ whether a committee is generally to receive a salary, I should say, No. But if the question were, whether there may not he cases where he ought to ha^e a salary, I should say, Yes,” and he made an order referring it to the master in that case, to ascertain what reasonable allowance under the peculiar circumstances of the case, it would be fit and proper to make to the committee for his care and pains in the management of the estate.” In re Palmer (cited in Shelford on Lunacy, p. 165), the committee appointed, in consequence of the large amount of the security and the trouble he would be put to in collecting the rents and interest, refused to act, without some remuneration for his trouble, and Lord Lyndhurst referred it to the master to ascertain and settle, a reasonable and proper salary, to be allowed to the committee for taking care of the estate. In re Smith (also cited in Shelford, p. 166), was a similar case in which an order was made referring it to the master to appoint a proper person with a reasonable salary, and that the court can and will in a proper case make such an allowance I think may be regarded as settled by the cases above cited, and in the Matter of Errington (2 Russ. 567). The rule as now understood is thus stated by Adams, a very careful and reliable elementary writer. “ Under special circam[61]*61stances

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Related

Gardiner v. Tyler
2 Abb. Ct. App. 247 (New York Court of Appeals, 1867)
L'Amoureux v. Crosby
2 Paige Ch. 422 (New York Court of Chancery, 1831)
In re Livingston
9 Paige Ch. 440 (New York Court of Chancery, 1842)
In re Colah
3 Daly 529 (New York Court of Common Pleas, 1871)

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Bluebook (online)
6 Daly 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-colah-nyctcompl-1875.