In re Estate of O'Day

13 Mills Surr. 341, 88 Misc. 408, 150 N.Y.S. 425
New York Surrogate's Court·Decided December 15, 1914·Published·Cited by 4 cases

Opinion

Fowler, S.

In an. accounting proceeding where there is no contest the parties ask, in behalf of a special guardian whose [342] infants have no present interest in the estate in the hands of the accountants, my consent that compensation he allowed to him for the guardian’s services, payable out of the principal of the estate which belongs to others and in which his infants have no present interest. This application is sought to be justified by the new section (Code Civ. Pro., § 2748) enacted by the Surrogates’ Law of 1914, as follows: “ A special guardian for an infant or incompetent shall receive a reasonable compensation for his services to be fixed by the surrogate, payable from the estate or fund, or from the interest of the ward therein or from both, as the surrogate may direct.”- I have often looked at that section since its enactment, and the more I look at it the more I distrust a construction of it which would invest me with a general power to grant compensation in my own arbitrary discretion and at no fixed rate out of estates belonging to others in the hands of executors or testamentary trustees. I distrust such assertion of the surrogate’s power, and I distrust such a construction of the section as would give the surrogate such a plenary power. . Such a construction does not seem to me consistent with the public interest or with precedent or principle, or with the responsibilities of a Surrogate’s Court situated in such an exceptionally rich community as this. I know very' well the dangers of such an arbitrary power, not perhaps so much to large estates, which are able to protect themselves by costly contentions, but to the countless poorer estates distributable to helpless children or widows, where the imposition of a relatively large allowance by me would often be an irremediable wrong.

This new section is in terms contrary to the long settled policy of this State. I do not mean to impute to the legislature the slightest intention of enacting a mischief, but I feel bound to inquire what they must be taken to have meant by that new section, and how it ought to be construed-so as to- fit it harmoniously into the settled jurisprudence of this State. ISTo injustice [343] can be presumed to have been intended by the legislature. What then does the new section intend?

In the first place, it will be observed that the new section contains no real limitation, on its face, on the amount of the proposed allowance. It does not read compensation in no case to exceed fifty thousand dollars, or five hundred dollars, or fifty dollars even.” In a vast estate I might be persuaded to estimate the allowance to be made to the guardian at too large an amount, or in another instance at a sum so large as to exhaust the estate here to he distributed. The statute would not, in terms, forbid this. Under similar conditions that very eminent man, Mr. Bradford, who sat in this seat, protested against a construction of a contemporaneous statute in this State which left to the surrogate the power of fixing costs without reference to any standard in the way of a fee bill. To give the law before him consistency with justice Mr. Bradford read into the act a superseded fee bill of another court. (Western v. Romaine, 1 Bradf. 38.) This was going a long way, but his construction was followed. (Willcox v. Smith, 26 Barb. 329, 330.) This wise course prevented such scandalous practices as those animadverted on in Matter of Stevens (114 App. Div. 607, 614; affd., 188 N. Y. 589).

It must be recognized that before the late. Surrogates’ Law of 1914 the Court of Appeals had distinctly denied that a Surrogate’s Court had power to award a special guardian compensation out of the general estate. (Matter of Robinson, 160 N. Y. 448, 452; Matter of Budlong, 100 id. 203, 205; Matter of Holden, 126 id. 589; Matter of Farmers’ Loan & Trust Co., 49 App. Div. 1.) The legislature is to be presumed to have known this and also that it was a general principle of law in this State that costs and allowances of guardians could not be made payable out of other people’s property, (Gott v. Cook, 7 Paige, 544.) On what theory such a sudden departure from precedent was justified I am not informed.

[344] There has been even since the Revised Statutes a distinction between the allowance of costs to guardians payable out of the 'estate and compensation to guardians payable only out of the infant’s share. (2 R. S., § 10, p. 223; Matter of Budlong, 100 N. Y. 205.) It is now claimed, not particularly in this matter, as the parties here acquiesce in my conclusion, that the new section of the Surrogates’ Law of 1914 (Code Civ. Pro., § 2748) obliterates all this distinction, and that the surrogate may now allow to the special guardian compensation in his discretion out of the property of others than the infant represented by the special guardian. I doubt, since looking into it, if this construction can be taken to express the intention of the legislature. The statute is to be read as a whole. Section 2561 of the former Code of 1913, it will be observed, is re-enacted by the new Surrogates’ Law as section 2746 of the Code of 1914. If Surrogate Bradford could read as he did an old fee bill into an indefinite act relative to costs to be granted by the surrogate, why is it not possible to read into the present section 2748, section 2746 of the Code of Civil Procedure in which the legislature defines what is “ reasonable compensation. ? ” So doing would prevent injustice in any future case, and make the new section 2748 consistent with precedent and with the wise policy heretofore pursued in this State.

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In re Estate of O'Day, 13 Mills Surr. 341, 88 Misc. 408, 150 N.Y.S. 425 (N.Y. Super. Ct. 1914).

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