In re the Estate of Goodwin

114 Misc. 39
New York Surrogate's Court·Decided December 15, 1920·Published·Cited by 4 cases

Opinion

Cohalan, S.

Jurisdictional question:

Objection is made to the account upon the ground that the administrator has failed to account for the [40] proceeds of a judgment in the sum of $15,374.56, which was satisfied of record on August 5,1919. Upon showing that the judgment was assigned by the decedent during his lifetime the administrator moves to dismiss this objection upon the ground that a determination of this issue involves the exercise of general equitable power which the surrogate does not possess. The administrator relies upon Matter of Schnabel, 202 N. Y. 134, and the objecting creditors upon Matter of Watson, 215 id. 209.

In Matter of Schnabel, supra, it appeared that the intestate had delivered to his wife, the administratrix, a bill of sale which transferred to her a saloon business. Upon her accounting objections were filed upon the ground that she had not accounted for the proceeds of the sale of the saloon business. The administratrix set up the bill of sale, which was found to be fraudulent and void. The Court of Appeals held that notwithstanding the provisions of section 2731 of the Code of Civil Procedure, the surrogate had no jurisdiction to set aside the bill of sale.

In Matter of Watson, supra, a similar situation arose. Objections were made to the executors’ account upon the ground that they failed to account for a ruby ring and a pearl necklace which it was alleged belonged to the testatrix at the time of her death. One of the accountants claimed that the ring and necklace had been given to her by the decedent. Upon the authority of Maitter of Schnabel, supra, the Appellate Division decided that the surrogate had no jurisdiction to determine the issue. The Court of Appeals, however, said (215 N. Y. 211):

The appellant in this case merely invoked the jurisdiction of the surrogate to compel an executor to account for the property of the testator, and the exercise of that jurisdiction depended solely on the [41] determination of the question of fact whether the property belonged to the testatrix at the time of her death. If the mere assertion of a claim of ownership by an executor ousts the surrogate of jurisdiction to compel an account of the property of the testator, it will be a simple matter to accomplish that result in every case in which an executor may prefer some other tribunal. Section 2731 of the Code of Civil Procedure, prior to the amendment of 1914, provided in part as follows:

‘ On the judicial settlement of the account of an executor or administrator, he may prove any debt owing to him by the decedent. Where a contest arises between the accounting party and any of the other parties respecting property alleged to belong to the estate, but to which the accounting party lays claim either individually or as the representative of the estate, or respecting a debt, alleged to be due by the accounting party to the decedent, or by the decedent to the accounting party, the contest must, except where the claim is made in a representative capacity, in which case it may, be tried and determined in the same manner as any other issue arising in the surrogate’s court.’ It would seem that the present case falls within both the letter and the spirit of the provision just quoted.”

Section 2731 of the Code of Civil Procedure as above quoted (now 2679) is substantially the same as now, so far as this question is concerned. To show “ That the Surrogate’s Court has jurisdiction to try and determine the issues arising upon such a contest as was involved in this case ” (p. 213), the Court of Appeals in the Watson case (p. 213) cited several Surrogate’s Court cases, among which are Matter of Ammarell, 38 Misc. Rep. 399, which involved an assignment, and Matter of Munson, 70 id. 461, which involved the validity of a mortgage and other instruments, and [42] Matter of Archer, 51 id. 260, which involved an assignment of savings bank accounts. In each of these cases the sáme question of jurisdiction was raised that is involved in this case. After citing these cases the Court of Appeals said (p. 213): “ Plainly the Surrogate’s Court has jurisdiction to try and determine issues arising upon any contest respecting a debt alleged to be due by the accounting party to the decedent or by the decedent to the accounting party. With equal reason it should have jurisdiction to determine conflicting claims of ownership to personal property between an accounting party and his estate. The trial and determination of such issues falls far short of the exercise of general equitable jurisdiction, and we think that the statute was intended to confer jurisdiction in both classes of cases.” By the above language and by the citation of Surrogate’s Court cases involving the validity of assignments and mortgages it appears that the Watson case practically overruled the earlier Schnabel case. Section 2731 of the Code of Civil Procedure (now 2679) is now held to mean just what it says.

If the question of jurisdiction were in any doubt after the Watson decision the subsequent revision of chapter 18 of the Code of Civil Procedure, in 1914, including the enactment of section 2510 of the Code of Civil Procedure, as it now reads, seems to give to the Surrogate’s Court an ample grant of jurisdiction. Even under the narrowing constructions of section 2510 of the Code of Civil Procedure, that have been adopted by the Appellate Division beginning with the Holdworth case (166 App. Div. 150), subdivisions 3 and 4 of section 2510 of the Code of Civil Procedure, read in connection with the general grant of jurisdiction contained in the first paragraph of the section, are certainly sufficient. Matter of [43] Brady, 111 Misc. Rep. 492. The motion to dismiss this objection is denied.

Question of gift:

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In re the Estate of Goodwin, 114 Misc. 39 (N.Y. Super. Ct. 1920).

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