In re Kenny

15 Mills Surr. 308, 92 Misc. 330, 156 N.Y.S. 827
CourtNew York Surrogate's Court
DecidedNovember 15, 1915
StatusPublished
Cited by10 cases

This text of 15 Mills Surr. 308 (In re Kenny) is published on Counsel Stack Legal Research, covering New York Surrogate's Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Kenny, 15 Mills Surr. 308, 92 Misc. 330, 156 N.Y.S. 827 (N.Y. Super. Ct. 1915).

Opinion

Netciiam, S.

This is a motion made by the Brooklyn Savings Bank that as to itself this proceeding be dismissed for lack of jurisdiction.

The accountant, in his petition for the settlement of his account, alleges that the bank is a person interested in this proceeding, and in that behalf describes it as “ a depository of funds alleged to belong to the decedent.” In accordance with these allegations and the prayer of the petition, the citation in this proceeding was addressed to the bank, and has been served.

The account contains the following:

“ Decedent left a bank-account with the Brooklyn Savings Bank, in his own n'ame in trust for Rita Marie Bennett, his said grand-daughter, and the pass-book thereof came into my custody from the possession of decedent upon his death on April 15th, 1914.”

The Code directs that upon a settlement of the account of an executor there must be cited certain persons, described by classes. (Code Civ. Pro. § 2130.) It is to be confessed that this is not equivalent to a direction that no other person than those designated can be cited; but the Surrogate’s Court has no jurisdiction, either of subject-matter or person except such as is expressly or by necessary implication conferred by statute.” (Matter of Thompson, 184 N. Y. 36, 44.) Hence, unless jurisdiction of the person of the bank is conferred by statute it does not exist.

Although the bank is described in the petition as a depository of funds alleged to belong to the decedent, the statement in the account makes it clear that at the death of the decedent the bank was only a debtor either of the decedent or of the person named as a possible beneficiary of the deposit. The accountant insists [310]*310that he, as the representative of the decedent, is entitled to the amount of the deposit. He, therefore, limits himself to the claim that the bank owed a sum of money to the decedent at the time of death, either in the absence of a trust or on the theory that any trust which was created by the deposit for the benefit of the possible beneficiary- was void as, to the estate, or its creditors, upon some .equitable ground.

¡Nowhere in the statutes to which alone appeal must be made in support of- the jurisdiction .asserted is it either provided or implied that in an accounting by an executor such a debtor of the estate or the trastee of a voidable trust attempted by the decedent is a necessary or proper party. Except for the Code section to be quoted presently, the statute as it is does not differ from -the statute as it was before the revision of 1914.

Formerly it was implied, as it is now provided, that persons of prescribed classes should be cited. Then, as now, the statute contained no affirmation or suggestion that the court could take corporate jurisdiction of any persons -other than those to whom citation was to be addressed, -and there was u statutory silence as to whether any persons not among the classes indicated were either necessary or proper parties.

It results that, the cases which arose under the former conditions must -control the interpretation of the present statute. These cases held that persons not interested in the estate or fund, either -as persons entitled to a benefit in the estate under the will or as creditors of the decedent, were not' to be impleaded in an accounting. (Matter of Thompson, supra; Matter of Redfield, 11 Hun, 344; Duncan v. Guest, 5 Redf. 440; Matter of Witte,. Fowler, S., N. Y. L. J. Jan. 16, 1913; Matter of Collmar, 79 Misc. Rep. 592.) They apply to a person against whom the' accountant alleges a debit or other affirmative cause of action. But the executor resorts to section 2510 of the Code as a new source -of jurisdiction under which this present procedure is justified. That section is in part, as follows:

[311]*311“ Each surrogate must hold, within his county, a court, which has, in addition to the powers conferred upon it, or upon the surrogate, by special provision of law, jurisdiction, as follows:

“ To administer justice in all matters relating to the affairs of decedents, and upon the return of any process to try' and determine all questions, legal or equitable, arising between any or all of the parties to any proceeding, or between any party and any other person having any claim or interest therein who voluntarily appears in such proceeding, or is brought in by supplemental citation, as to any and all matters necessary to be determined in order to make a full, equitable and complete disposition of the matter by such order or decree as justice requires.”

The jurisdiction for which the executor contends would involve a departure from the traditions of this court so distinct and aggressive that nothing but clear words of grant would justify it.

In Matter of Thompson (supra), which was an accounting by the wife and executrix of the decedent, a creditor claimed that a part of the proceeds of a policy of insurance upon the life of the decedent, which the wife had collected, formed a part of the estate. The surrogate took cognizance of the question,, whether the proceeds belonged to the decedent’s wife or to his estate, and surcharged -the executrix with the sum involved, for the benefit of creditors. This was disapproved by the Court of Appeals, and of the question thus determined, Judge Yawxt said: “ The allegation that the insurance moneys were property of the estate did not give the surrogate jurisdiction to try the question of title or to enforce the lien any more than if a similar ■allegation had been made with reference to real estate, or to-personal property fraudulently transferred, or to the income from a trust fund in excess of the amount necessary to support the beneficiary, and the like. Such questions are still withheld from the Surrogate’s Court and when the Legislature intends to> extend its jurisdiction to those subjects it is safe to assume that [312]*312it will do so in express terms and not leave it to be inferred from vague and indefinite expressions.”

It is under the caution contained at the end of the quotation that we must proceed in considering section 2510 of the present Code.

The powers conferred by this section are guarded by provisions which indicate that the questions which the court may determine must be questions “ between parties to the proceeding ” or “ between .any party and any other person having any claim or interest who voluntarily appears or who is brought in by supplemental citation,” as well as by the further provision that such questions must peytain to matters “ necessarily to be determined ” in order to make a disposition of “ the matter.’’

The “ parties' to the proceeding ” can only be those who are properly such. It cannot he suggested that the jurisdiction conferred was intended to embrace anybody whom the petitioner in a proceeding unlawfully impleads. It is well understood that a party to a judicial proceeding is one whose interest in the subject-matter, whether favorable or adverse, is such that his presence upon the record is either necessary or proper.. This test throws the mind away from the mere fact that a person has been named as a party. It makes the nature of the ease the only standard.

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Bluebook (online)
15 Mills Surr. 308, 92 Misc. 330, 156 N.Y.S. 827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-kenny-nysurct-1915.