In re the Estate of Balfe

174 Misc. 279, 20 N.Y.S.2d 474, 1940 N.Y. Misc. LEXIS 1808
CourtNew York Surrogate's Court
DecidedMay 29, 1940
StatusPublished
Cited by5 cases

This text of 174 Misc. 279 (In re the Estate of Balfe) 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 Estate of Balfe, 174 Misc. 279, 20 N.Y.S.2d 474, 1940 N.Y. Misc. LEXIS 1808 (N.Y. Super. Ct. 1940).

Opinion

Taylor, S.

After a more or less protracted trial involving objections to the trustee’s accounts in these two estates, the surrogate declined to surcharge the trustee and settled and allowed the accounts as filed (152 Misc. 739).

The parties, including the special guardian, feeling aggrieved appealed to the Appellate Division, and that court affirmed the surrogate’s decrees, save for a modification to the extent of eliminating the allowance for counsel fees (245 App. Div. 22).

[280]*280The interests of the adult and the infant parties were in no respect diverse, and the special guardian .throughout the trial in addition to taking part therein actively co-operated with counsel for the adult objectors.

It seems that after the decision of the Appellate Division an alleged compromise was made by which the adult objectors received certain sums of money, the trustee purchased from one of them certain of its own guaranteed mortgage certificates, waived its commissions and put certain sums into the principals of the Mary Balfe and Thomas Balfe residuary trusts, the waiver of commissions and the payment of sums into the principals of the trusts being for the interests of the infant beneficiaries. This compromise agreement was never submitted to this or any other court for approval.

One of the infant beneficiaries has since become of age and has disavowed and repudiated the alleged agreement of settlement, and now applies to this court for an order vacating its decrees and granting as to this beneficiary a trial of the issues de novo.

. Application for relief was made to the Appellate Division and i that application denied.

The petitioner asserts that a special guardian is wholly without power to compromise in behalf of his ward without application to the court for approval of such compromise. The trustee contends that no judicial approval of such compromise is required.

The briefs of counsel indicate painstaking research and nowhere in the petitioner’s brief is there cited any authority, statutory or otherwise, for the arguments put forth. The only case advanced by the petitioner is Honadle v. Stafford (265 N. Y. 354). While one may quote excerpts from opinions as laying down general principles, or establishing rules of law, it is nevertheless axiomatic that, generally speaking, portions of opinions are to be interpreted in the light of the question presented, and the actual decision reached. (Matter of Reilly, 165 Misc. 214; Dougherty v. Equitable Life Assurance Soc., 266 N. Y. 71; Matter of Suderov, 156 Misc. 661; affd., 249 App. Div. 763; affd., 274 N. Y. 525.)

Examining the Honadle case and the authority therein cited (Greenburg v. New York Central & H. R. R. R. Co., 210 N. Y. 505), with this admonition in mind, the rule laid down went no further than to hold that one is not protected in paying moneys adjudged to belong to an infant to the guardian ad litem until he has furnished ¡the security required by statute, or in paying such moneys to an 'attorney when the order expressly provides for its payment to the ¡guardian ad litem.

\ While Edsall v. Vandemark (39 Barb. 589) and, undoubtedly, .similar cases do state that a guardian ad litem does not have [281]*281authority to settle a negligence action without judicial authority so to do, it must be also kept in mind that, so far as the surrogate has observed, such guardians are limited by express language of their orders of appointment to the prosecution or defense of the action in behalf of their wards. Orders in Surrogates’ Courts appointing special guardians contain no such limitations.

The surrogate has expended some little effort in an examination of this question and has failed to find any satisfactory authority. It may be mentioned in passing that it will be found in many, if not all, of the cases examined that the payment of infants’ moneys was directed to be paid to the guardian ad litem who is generally prohibited from receiving money or property other than costs and expenses allowed to him until he was given sufficient security, approved by a judge of the court or a county judge. (Rules Civ. Prac. rule 41.) In this case it is to be observed that the special guardian received no portion of the infant’s funds.

There is authority (Matter of Field, 115 Misc. 733) for the contention that a special guardian may not compromise a will contest without the court’s approval, but here again is the distinction that such situations are controlled by statute (Dec. Est. Law, §19). In death actions, where limited letters are issued, the special guardian is limited to the prosecution of the action. (Surr. Ct. Act, § 122.) Section 213 of the Surrogate’s Court Act may be dismissed with the statement that its provisions are permissive only. (Matter of Corbin, 227 App. Div. 87.)

The surrogate finds it unnecessary to determine four square that court approval of compromise of infants’ claims is necessary for reasons hereinafter assigned, but it may be noticed in passing that section 64 of the Surrogate’s Court Act, which is authority for the appointment of special guardians, provides that the surrogate must appoint a competent and responsible person to appear as special guardian.” It may be said that a special guardian is in a sense the attorney for his ward (Matter of Mackenzie, 155 Misc. 822), with the supplemental statement that under many circumstances he ought not to go so far as an attorney may go in the making of admissions, for example. If this analogy is sound, then it would follow that judicial approval of a compromise is required, for an attorney is without authority to compromise his Ghent’s cause of action. (Appleton v. Greenfield, 244 App. Div. 732; Countryman v. Breen, 241 id. 392; affd., 268 N. Y. 643; Bush v. O’Brien, 164 id. 205.)

It is argued that vacatur of the decree in this court would place the petitioner in status quo ante compromise agreement, but this is unsound for the reason that the status of the case at the time [282]*282of the compromise agreement was a decision by this court, adverse to the petitioner and its affirmance by the Appellate Division, leaving to the petitioner only the right to apply to the Appellate Division for a reargument, or to appeal to the Court of Appeals, or both. A trial de novo in this court is not a substitute for or the alternative of an appeal to the Court of Appeals.

Assuming that the so-called compromise agreement should have been submitted to this or some other court for approval, which was not done, the most the petitioner could ask would be to be put back into the position in which he was immediately prior to the making of the agreement (that is, be revested with the right to apply to the Appellate Division for reargument, or to appeal to the Court of Appeals, or both), and obviously this court is wholly without authority to place him in that position.

No complaint is made of the trial in this court, for the petitioner has offered to stipulate that if a trial de novo were granted, all the testimony heretofore taken may be read into the new trial, although the suggestion is made that some additional evidence might be offered.

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Bluebook (online)
174 Misc. 279, 20 N.Y.S.2d 474, 1940 N.Y. Misc. LEXIS 1808, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-balfe-nysurct-1940.