In re the Appointment of a Committee of the Person & Property of Marshall

15 A.D.2d 310, 223 N.Y.S.2d 207, 1962 N.Y. App. Div. LEXIS 12043
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 16, 1962
StatusPublished
Cited by1 cases

This text of 15 A.D.2d 310 (In re the Appointment of a Committee of the Person & Property of Marshall) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Appointment of a Committee of the Person & Property of Marshall, 15 A.D.2d 310, 223 N.Y.S.2d 207, 1962 N.Y. App. Div. LEXIS 12043 (N.Y. Ct. App. 1962).

Opinion

Botein, P. J.

On June 12, 1961, Special Term adjudged Michael T. Marshall, age 70, an incompetent person on the basis of the findings of a Sheriff’s jury. Mr. Marshall’s principal business, conducted chiefly through the medium of approximately 50 corporations of which he is sole stockholder, is the ownership and operation of 120 taxicabs and related garage and parking facilities. The jury valued his personal property at about $1,500,000, but since the taxicab medallions, as the municipal operating licenses are called, were taken at a low book value, the value probably approximates twice that figure. Additionally, certain New York and Florida real property was valued at more than $400,000. Total annual income of the incompetent was found to be approximately $56,000 — evidently before pay-[312]*312merit of income taxes, since the estate’s probable 1961 net income after taxes was estimated at about $25,000.

The presumptive distributees of Mr. Marshall’s estate upon his death are his wife, age 60, who resides with her husband in New York, and their only child, Michael, Jr., who is 29 years of age. Michael, Jr., is married and resides in Florida. In 1957 he suffered injuries which have left him almost completely paralyzed, in need of continuous nursing attention, and unable to sign his name except by mark. He has stated that for a period of two and one-half years he was in sole operating control of Marshall Motors, Inc., during which period that concern, evidently formed to do business in Florida with funds provided by the incompetent or one of his companies, lost $225,000.

On June 12, 1961, the date Marshall was adjudged incompetent, Mrs. Marshall was appointed committee of the person. Her then attorney, and one Frederick M. Weisse, who manages the taxi companies, as well as an attorney who had no previous connection with the Marshalls, were appointed committee of the property. The committee of the property was directed to make weekly payments to Mrs. Marshall as committee of the person at the rate of $27,578.76 per annum for maintenance and support of the incompetent. Payments, at the rate of $15,000 per annum, were also directed to be made to Michael, Jr., for his maintenance and support.

Mrs. Marshall had asked to be designated as one of the committee of the property. Denial of her request and differences with her attorney led to an application on her behalf, made by substituted attorneys, for reconsideration of the order of June 12, 1961. The application requested that Mrs. Marshall and Michael, Jr., or his designee be appointed committee of the property; and accompanying it was an affidavit by Michael, Jr., asking that he, or in the alternative his Florida attorney, be appointed. The court, in its opinion of August 21, 1961, indicated its willingness to add Mrs. Marshall and her son to the committee and its intention to retain the others, with certain restrictions as to commissions. Mrs. Marshall’s original attorney, however, resigned shortly thereafter.

On September 18, 1961 an order was entered which accepted the resignation and appointed Mrs. Marshall and her son to the committee of the property (the former to receive no commissions or allowances). The stranger attorney selected by the court and Mr. Weisse were redesignated, on condition, in the case of the latter, that he accept one third of the commissions which may be allowed to a sole member of the committee.

[313]*313On October 9, 1961 Michael, Jr., moved that the committee of the property be ordered to pay his debts, that his weekly allowance be increased to an amount consistent with an appended affidavit showing weekly expenses of $1,060, and that fees be awarded his attorney. The co-committeemen, in opposition, asked that the motion be referred to the Judge who had fixed the original allowance, that upon such reference the allowance be increased to $600 a week, that payment of the debts “ directly to the creditors enumerated in the moving papers ” be approved, and that the motion in all other respects be denied. An order entered October 25, 1961, which is the subject matter of the present appeal, provided for payments to the creditors of Michael, Jr., directed a reference to hear and report on the issues raised with respect to the resetting of his weekly allowance, and modified prior orders of the court to the extent of fixing the weekly allowance at $600 pending the reference. The balance of the motion was held in abeyance until receipt of the Referee’s report. The co-committeemen do not object to the provisions of the order relating to the payment of the debts, but have appealed from the other provisions.

There are aspects of this incompetency proceeding not raised specifically upon appeal that cause us grave concern. The history of the proceedings antedating the order appealed from does not entirely assure us that Mr. Marshall, the incompetent, is receiving in respect of the preservation of his estate the full care and protection to which a ward of the court is entitled. We do not, therefore, confine ourselves to the narrow issue raised on appeal. Of necessity, even if we were to limit ourselves to the fixing of Michael, Jr.’s, allowance, we would be constrained in the proper exercise of the court’s responsibility to its ward to consider the inroads upon principal that will be made by such allowance and other allowances, as well as expenses of administration—particularly in view of the relatively small income earned by so large an estate. Conscientious discharge of the court’s responsibility therefore commands a comprehensive review of the entire pattern of administration of the incompetent’s estate.

Islands of litigation between Michael, Jr., and his fellow committeemen, such as this application regarding the amount of his allowance, hardly further an efficient administration of the estate. Plainly, on the record before us, Michael, Jr., should not be a member of the committee. Not only does he reside in Florida “ out of touch with the interests of the incompetent here ” (Seitz Estates v. Seitz, 226 App. Div. 373, 381; and see Matter of Santora, 253 App. Div. 208, 209); he is physically [314]*314incapacitated and it is Ms announced desire to delegate Ms duties to attorneys. The court appointed him with reluctance upon the ‘ ‘ fervent urging ’ ’ of his mother and ‘ ‘ her belief that his physical paralysis has not impaired his thinking capacity. ’ ’ Much as we sympathize with one in his plight, her desire that he receive commissions surely should not be gratified if it is not contemplated that he perform services (see Matter of Rutledge, 162 N. Y. 31, 34) and what contribution to the conservation of the estate he can make in his unfortunate circumstances is hard to envisage. Furthermore, even were he entitled to commissions, it would seem proper that his allowance for maintenance should in some appropriate manner be adjusted to reflect this anticipated income; his own earnings, from whatever source derived, must be taken into account when measuring his monetary needs. The cleaner and more logical disposition of his application, however, dictates the fixation of an allowance that will reflect his needs as well as the size and nature of his father’s estate; an allowance that will not be distorted by added payments in the guise of commissions for alleged services that at best will contribute nothing to the appropriate administration of the incompetent’s estate.

Misgivings arise also in connection with the appointment of Mr. Weisse.

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Bluebook (online)
15 A.D.2d 310, 223 N.Y.S.2d 207, 1962 N.Y. App. Div. LEXIS 12043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-appointment-of-a-committee-of-the-person-property-of-marshall-nyappdiv-1962.