In re the Accounting of Kirsch

192 Misc. 891, 80 N.Y.S.2d 429, 1948 N.Y. Misc. LEXIS 2577
CourtNew York Surrogate's Court
DecidedMarch 10, 1948
StatusPublished

This text of 192 Misc. 891 (In re the Accounting of Kirsch) 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 the Accounting of Kirsch, 192 Misc. 891, 80 N.Y.S.2d 429, 1948 N.Y. Misc. LEXIS 2577 (N.Y. Super. Ct. 1948).

Opinion

Delehanty, S.

The will of deceased in paragraphs II and III acknowledges an indebtedness to a nephew and makes provision for payment of $5,000 to him. Between the date of the will and the date of deceased’s death deceased apparently made efforts to pay his nephew the snm contemplated under the will and after failing in such efforts made a codicil in which he gave further instructions respecting the debt and its payment. The account now filed states that ah action against the executors and others was initiated by the beneficiary of the noted paragraphs of deceased’s will and codicil. In such action the plaintiff sought judgment that he was entitled to one quarter of the assets and property of deceased. The action was dismissed on the merits with costs. An appeal is, pending undetermined. The executors ask to be instructed how they can discharge the estate obligation to the plaintiff in that action. He still has failed to take the $5,000 directed to be paid him.

The account also states that this nephew of deceased claims $6,000 because of a ruble transaction between him and deceased in 1918. This claim and another set forth in the account were rejected by the executors. The claim mentioned second was adjusted by delivery to claimant of certain tangible personalty and was withdrawn at the hearing. In the accounting proceeding the liability of the estate under the claim first mentioned was litigated. As it was stated originally, the ■ claim was for the sum of $6,000. At the trial the claim was amended by increasing it to $6,300. As the issues were finally submitted by claimant in his reply brief, the court is asked to award claimant $6,300 with interest from July 24, 1924, or, in the alternative, $6,000 from December 24, 1944. The alternative positions taken by claimant appear to be due to his desire primarily to rely upon a claim for the dollar value of certain rubles paid to or advanced for account of deceased by claimant and his desire secondarily to rely upon a bargain alleged to have been made between him' and deceased under which the latter undertook to pay $6,000.

In each aspect the claim stems from transactions occurring in 1918 in the Ukraine. In that year objectant was a practicing attorney at Kiev and deceased was a merchant conducting busi-’ ness either there or in Odessa. The military developments of that year caused deceased to desire to remove his business assets from territory likely to be invaded. Deceased got money from claimant for his own use in leaving the Ukraine and in addition had the benefit of moneys paid by the claimant in aid of the removal of deceased’s property from the threatened area. [894]*894The total advances to or for account of deceased amounted to 45,000 rubles. The transactions concededly gave rise to a legal liability of deceased to make repayment. That liability arose under Russian law and was of course dischargeable in Russian rubles. Both deceased and claimant were presumably citizens of the Ukraine and their legal rights were determinable under Russian law which governed that territory.

The Russian ruble currently used in commercial transactions in Kiev in 1918 had an exchange value. It is sufficiently shown that 45,000 rubles then had a dollar value of $6,300. However, there was no dollar transaction between deceased and claimant. There was no obligation on the part of deceased to pay anything but rubles at the time the transactions occurred. The rubles of that day were later devalued under decrees of the Soviet Union. The law of Russia applicable at the time of the transactions and that of the Soviet Union enacted later each established a period of limitations which concededly would bar the claim if advanced solely because of the original transactions.

Such original transactions are relied upon by claimant not as the basis to the claim now made but as the basis to an alleged agreement made at Paris, France, on July 24, 1924. By that date both deceased and claimant had left the Ukraine hnd had reached Paris. It is quite apparent that the subject of deceased’s obligation to claimant had been under consideration at Paris. Eventually a letter was written by deceased to objectant on the stated date. This document is relied upon by objectant as creating a wholly new liability to claimant under French law. The validity of the claim for $6,300 depends upon the validity of that contention.

The letter is held by the court to have been nothing more than an offer by deceased to dispose of his' moral and legal obligations arising out of the original ruble transaction. The offer •was never accepted by claimant. Intrinsically the letter does not create any new or separate obligation on the part of deceased. It was an expression of his sense of obligation because of the earlier transactions. It was dealt with by claimant in 'this aspect and it constituted only one of a number of evidences of the existence of a dispute between deceased and claimant respecting the extent to which deceased should make provision for claimant. The practical interpretation of the letter by claimant himself requires the court to hold that , it furnishes no basis to the claim now primarily asserted by him. Since the court has that viewpoint respecting the letter it need give no [895]*895consideration to the discussions at the trial about the correct translation of a particular Russian word found in the letter. The acknowledgment of the original obligation is clear enough in the letter and such acknowledgment sufficed to toll the Russian Statute of Limitations. But such tolling of that statute gives no aid to claimant for again the statute (whether the old or new) has run against any claim based on the original ruble transaction.

The court now turns to the alternative claim for $6,000. Again claimant says that a new agreement was made in New York City by deceased on December 24, 1944, and that under such agreement $6,000 became payable by deceased. That amount with interest from December 24, 1944, is alternatively claimed. Some point is made by the estate representatives respecting the manner in which the claim is stated and the differences between its formulation in the respective bills of particulars furnished by claimant. Point is also made that the agreement alleged constitutes at most an executory accord and under the statute must be in writing to be enforcible. The court gives no consideration to these contentions because it finds no proof of any such agreement as that asserted by claimant to have been made' on December 24, 1944. All that occurred on that date was a continuation of the dispute between deceased and claimant as to how much deceased should pay claimant. No agreement to make any payment on any terms was proved and so the claim on the alternative basis fails for lack of proof.

These rulings require that objectant’s third objection be overruled. There are left for consideration his objections first, second and fourth. The first and second in effect ask the court to hold in suspense determination of the total interests of objectant in the estate. The court cannot do that. It must assume that the judgment in the Supreme Court is correct and that the claim for an interest in the estate larger than that described in the will is without basis. Accordingly objections first and second are overruled.

The remaining objection and the terms of the petition require the court to make' direction for the disposition of the sum of $5,000 payable to objectant under the will and codicil. The account states that objectant has made various assignments of his interests in this fund. The' petition asks the court to determine what to do about the assignments.

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192 Misc. 891, 80 N.Y.S.2d 429, 1948 N.Y. Misc. LEXIS 2577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-accounting-of-kirsch-nysurct-1948.