In re Gilman's Estate

87 N.Y.S. 128, 92 A.D. 462

Opinion

McLAUGHLIN, J.

This appeal is from an order of the Surrogate’s Court of the county of New York, permitting the administrators of the estate of George F. Gilman, deceased, to compromise and settle a claim made against it by one Helen Potts Hall. The appellant attacks the validity’of the order upon two grounds: First, that the Surrogate’s Court did not have the power to make the order; and, second, if it did, it was improperly exercised. These questions will be considered in the order raised.

First. It must be conceded that a surrogate’s court is a court of limited jurisdiction, and has only such power as is conferred upon it [129] by statute. In determining the question, therefore, resort must be had to the statute, and unless such power has been there conferred, either in express words or in words from which an inference can fairly be inferred, then this order is wrong, and must be reversed. In this connection, however, it must be borne in mind that an executor or administrator, independent of a statute, has the power to compromise and adjust claims made either against or in favor of estates represented by him; the only risk he assumes in doing so being that unless the surrogate, or a court having jurisdiction of the subject-matter, thereafter sustains his acts, he will be subjected to a personal liability. Chouteau v. Suydam, 21 N. Y. 179. The first statute bearing upon the subject which I have been able to discover is chapter 80, p. 88, of the Laws of 1847. This act permitted a surrogate to authorize executors and administrators to compromise or compound any debt or claim belonging to the estate of their testator or intestate, but not a claim against it. This statute, however, was amended in 1888 (chapter 571, p. 928), by which the surrogate was granted power to authorize executors and administrators “to compromise or compound any debt or claim”; and, while it might be argued with some force that this language was sufficient to confer power upon the surrogate to authorize the settlement of a claim made against the estate, it probably was not so intended; at least, it is not sufficiently clear that such was the intent, when the whole act is considered, as to justify the court in thus construing it. But whatever doubt may have existed in this respect prior to 1893 was removed by the passage of chapter 100, p. 200, of that year, by which the original statute of 1847, as amended in 1888, was further amended by adding the words, “or to compromise or compound any debt or claim owing by the estate of their testator or intestate.” The words thus added, taken in connection with the other words used, clearly and unmistakably indicate an intent upon the part of the Legislature to confer power upon the surrogate to permit a settlement or compromise of a claim either made for or against the estate. But it is said that chapter 100, p. 200, of the Laws of 1893, was repealed by chapter 686, p. 1673, of the same year. This is undoubtedly true, but in repealing that act the amendment which was thereby added to section 2719 of the Code of Civil Procedure evidences, as it seems to me, that the Legislature intended to continue the power which had theretofore been conferred upon the surrogate with reference to a settlement or compromise, and not to diminish it. The section of the Code as thus amended is entitled “Payment of Debts.” It provides that every executor and administrator must proceed with diligence to pay the debts of the deceased, according to the order therein stated; prohibits preferences for the payment of a debt over other debts of the same class; makes provision for the payment of debts not due, as well as those already accrued; prohibits executors and administrators from paying debts due to themselves until approved and allowed by the surrogate; empowers him to give preferences to rents due and accruing on leases, and then provides: “The .surrogate may authorize the executor or administrator to compromise or compound a debt or claim on application and for good and sufficient cause shown. * * *” These words, when the section is properly construed, as it seems to me, include [130] claims made against the estate. It is with such claims that the section is dealing, and I do not .think what follows the words quoted— "and to sell at public auction, on such notice as the surrogate prescribes, any uncollectible, stale or doubtful debt or claim belonging to the estate”—destroys that effect or evidences contrary legislative intent. The meaning to be ascribed to the word “debt” is not uncertain. The Legislature has indicated that as thus used it includes every claim and demand upon which a judgment for a sum of money, or directing the payment of a sum of money, could be recovered in an action. Section 2514, subd. 3, Code Civ. Proc. Considering, therefore, the history of the legislation bearing on the subject, which has all finally culminated in section 2719 of the Code, and the evident purpose to be accomplished by that section, it seems to me the Legislature intended to confer power upon a surrogate to permit a settlement and compromise of any claim, whether it be for or against the estate.

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In re Gilman's Estate, 87 N.Y.S. 128, 92 A.D. 462 (N.Y. Ct. App. 1904).

87 N.Y.S. 128 (In re Gilman's Estate) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Chouteau v. . Suydam
21 N.Y. 179 (New York Court of Appeals, 1860)
Hall v. Gilman
77 A.D. 458 (Appellate Division of the Supreme Court of New York, 1902)