In re the Estate of Mason

174 Misc. 218, 20 N.Y.S.2d 501, 1940 N.Y. Misc. LEXIS 1812
CourtNew York Surrogate's Court
DecidedMay 15, 1940
StatusPublished
Cited by2 cases

This text of 174 Misc. 218 (In re the Estate of Mason) 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 Mason, 174 Misc. 218, 20 N.Y.S.2d 501, 1940 N.Y. Misc. LEXIS 1812 (N.Y. Super. Ct. 1940).

Opinion

Wingate, S.

The present proceeding is a sequel to one decided almost a generation ago (Matter of Mason, 121 Misc. 142), in which this court admitted to probate the nuncupative will of an American [220]*220soldier who had been taken prisoner by the Germans in an a-ltack on the Hindenburg line on September 27, 1918, and who was last seen by any person appearing before the court on his removal in a German ambulance while delirious and suffering from a severe attack of influenza.

His fianceé retained the present petitioners as her attorneys to seek the probate of an alleged nuncupative will predicated on two statements made by the deceased to fellow soldiers shortly before the attack. Obviously, as they had not married, she possessed no devolutionary rights in his estate unless this alleged will was admitted to probate.

The agreement of retainer which she then signed authorized the present petitioners to represent her in any action or proceeding I may institute or bring to probate the last Will and Testament of Ernest C. Mason, deceased, formerly Private, Co. A, 106th Infantry, and in any other action or proceeding necessary to recover any share or interest I may have in said Ernest C. Mason’s estate, and also any action or proceeding to recover my share or interest in the United States Government life insurance taken out by said Ernest C. Mason, deceased.”

The document further provided that the client agreed to pay her attorneys thirty-three and one-third per cent of any and all recovery which may be obtained, either as the result of any action or proceeding, or through compromise or settlement.”

The proceeding for probate was instituted. This court held that the established facts were such as to raise an inference of the death of the soldier and admitted the will. It may be observed parenthetically that advices from the United States Army Graves Registration Bureau subsequently reached the court as an individual that the body of the soldier had been found and identified. No appeal was prosecuted from the decision, with the result that by reason of the services of the present petitioners the fianceé of the deceased soldier was established to be his sole distributee, and received letters testamentary in respect of his estate.

The estate of the deceased, at that time, amounted to approximately $1,600 and the petitioners then received compensation pursuant to the terms of their retainer of approximately one-third of this sum, or about $500.

The deceased was, however, insured under a $10,000 war risk policy which, by its terms, was payable to his estate. Under the law as it then existed, such a disposition was not permissible and installment payments were made to two uncles of the deceased who were the proper beneficiaries under the law, until their respective deaths. At that time $7,677 remained unsatisfied, and in March, [221]*2211939, this was paid to the former fianceé, by reason of her relationship as sole testamentary beneficiary. The attorneys have now instituted the present proceeding to obtain a further payment equivalent to one-third of this sum, as a part of the reasonable and agreed compensation for their services pursuant to the terms of the retainer.

The respondent has interposed an answer consisting of denials and of seven affirmative defenses and the petitioners have now moved to strike out all of the latter pursuant to rule 109 of the Rules of Civil Practice. Despite the broad scope of the motion, the arguments and memoranda of the parties have been addressed solely to the “ Ninth ” and “ Tenth ” paragraphs of the answer, which assert in substance that the petitioner-attorneys performed no services whatsoever in connection with the collection of the insurance (which is admitted) and that the retainer agreement, in so far as it purported to predicate any remuneration upon the sums receivable by reason of the war risk insurance, is contrary to Federal Statute and * * * therefore void and contrary to public policy.”

Since this is the sole question which has been argued and briefed and basically underlies the entire asserted right of the attorneys, it, alone, will be considered at this time.

The Federal statute upon which the principal reliance of the respondent is predicated is contained in section 551 of title 38 of the United States Code. This enacts in substance that except where a suit on an insurance claim is brought, as contemplated in section 445, “ payment to any attorney or agent for such assistance as may be required in the preparation and execution of the necessary papers in any application to the Veterans’ Administration shall not exceed ten dollars in any one case.” Violation of this limitation is declared to be a misdemeanor.

In Margolin v. United States (269 U. S. 93, 101) it was held that this statutory limitation on compensation was operative despite the fact that the attorney, in addition to overseeing the preparation and execution of necessary papers ” in the application to collect insurance, conducted an extended correspondence with the Veterans’ Bureau in respect thereof and made a trip from New York to Washington in its promotion, and in Hines v. Lowrey (305 U. S. 85, 90) it was applied to compensation to counsel for the committee of an incompetent veteran whose allowance in excess of the prescribed sum was awarded by a State court.

These decisions are merely outstanding examples of the invariably applied rule that where the service, compensation for which is sought, is the collection of government compensation or insurance, [222]*222remuneration in excess of that specified in the statute is not permissible. They have no application to the present case. Here the attorneys are not seeking compensation for services rendered in the collection of insurance. They did not collect it and make no claim for having done so. That their retainer was primarily, if not, indeed, exclusively, for the purpose of obtaining an adjudication of the status of their client as the person solely entitled to testamentary distribution of the assets of the deceased soldier, is obvious from the fact that under the Federal statute, as it then stood, the insurance was permissible of payment only to the blood relatives or immediate family of the insured. In September, 1920, at the time the retainer was signed, there was no reason to believe that any other person could ever participate therein. It was not until almost five years later that the law was amended to permit of this result. Indeed, this alteration in the law occurred almost two years subsequent to the time when the attorneys had achieved the primary purpose for which they were retained, of establishing the status of their client as the sole testamentary distributee of the deceased.

Their service was performed and they had entitled themselves to remuneration therefor. Since both of the parties were competent adults it was open to them to fix this remuneration in advance, and, in the absence of any inequitable dealings in the inception of the contract, a court of general jurisdiction would presumably enforce it according to its terms (Ward v. Orsini, 243 N. Y. 123, 127; Rodkinson v. Haecker, 248 id. 480, 489;

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Related

In re the Estate of Schanzer
7 A.D.2d 275 (Appellate Division of the Supreme Court of New York, 1959)
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11 Misc. 2d 893 (New York Surrogate's Court, 1958)

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Bluebook (online)
174 Misc. 218, 20 N.Y.S.2d 501, 1940 N.Y. Misc. LEXIS 1812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-mason-nysurct-1940.