In re the Estate of Schanzer

7 A.D.2d 275, 182 N.Y.S.2d 475, 1959 N.Y. App. Div. LEXIS 9886
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 17, 1959
StatusPublished
Cited by43 cases

This text of 7 A.D.2d 275 (In re the Estate of Schanzer) 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 Estate of Schanzer, 7 A.D.2d 275, 182 N.Y.S.2d 475, 1959 N.Y. App. Div. LEXIS 9886 (N.Y. Ct. App. 1959).

Opinion

M. M. Frank, J.

The petitioner appeals from an order of the Surrogate’s Court which denied her application, pursuant to the Surrogate’s Court Act (§ 231-a), for an order fixing counsel fees payable to the respondent at $4,500, and directing the respondent to refund the amount of $13,000 paid by the petitioner in excess thereof, and which granted the respondent’s cross claim for $4,032.60. There is no dispute that the respondent had received a total of $17,500 prior to the time this proceeding was started.

The petitioner, who is over 70, is the executrix and sole beneficiary of the estate of her late husband. When the decedent committed suicide in March, 1956, the respondent, who had represented him, was immediately retained as counsel. At the time, the subject of fees was not discussed.

On June 7, 1956, the petitioner signed a retainer agreement, reading, in part, as follows: “ I, Ida Schanzer, as Executrix of the Estate of Charles Schanzer, individually and as sole beneficiary of the probated will herein, do hereby agree that in addition to all of his disbursements, expenses and costs that the legal fees * * * are hereby computed, set, fixed and determined at fifteen per cent (15%) of the gross estate payable on demand. Dated: June 1, 1956.” It is evident, therefore, that the respondent undertook to represent the petitioner on a quantum meruit basis from the inception of his activities in March, until June.

[277]*277The transfer tax proceedings fix the gross estate at $143,-550.66. Hence, counsel fees computed at 15% thereof would be $21,532.60. Included in the gross estate was a life insurance policy in the sum of $6,000, payable directly to the executrix; $31,000 on deposit in banks; $81,350 in securities, listed on the stock exchange; several small items of no particular significance; and approximately $30,000 in accounts receivable. Obviously, except for the collection of the receivables, no complicated problem was involved in the transfer of the assets to the executrix, or in the administration of the estate.

It is urged that a serious dispute was raised by one John McCafferty, who claimed ownership of the grocery business operated by the decedent, purported to be worth $60,000. The respondent suggests that it was through his efforts that the claim was ultimately settled for $5,000. The record contains very little more with respect to the merits of this claim, or the value of the business. The gross estate schedules do not reflect any assets of the grocery business other than the accounts receivable.

The respondent urges that, in the absence of proof that a written retainer agreement was fraudulently or otherwise wrongfully procured, the courts may not interfere with the arrangement when made b}r an adult, competent client, who, as in this case, is the sole beneficiary of the assets of an estate. That proposition is correct as a general statement. (See Matter of Fitzsimons, 174 N. Y. 15, 23; Matter of Peters, 271 App. Div. 518, 523; Ward v. Orsini, 243 N. Y. 123, 127; Matter of Sasson, 231 App. Div. 524, 526; Matter of Woolfson, 158 Misc. 928, 931; Matter of Mason, 174 Misc. 218, 222.)

However, the petitioner argues that the rule is inapplicable here. In support of her application, she claims that the retainer agreement is unconscionable on its face; that there was overreaching; that she signed it without full knowledge of its effect and consequences; and that the agreement was abandoned because neither party complied with its terms.

The testimony indicates that the petitioner is somewhat illiterate. For example, although she signed a release, it is apparent that she did not understand its significance. She: asserts that she was not fully aware that she had signed a. retainer or that it contained a provision for the payment of 15%. She testified that she was never informed as to the sum she would be required to pay, having only been told, “ We are friendly. I am going to treat you right.” The respondent never denied this testimony. Moreover, he testified to but one conversation, limited to his request that she read the retainer [278]*278carefully and sign it, with which she complied. Simultaneously with the execution of the retainer, she signed a check for $5,000 on account of fees, and a number of other papers and checks.

Since the respondent relies upon the retainer to sustain his recovery thereunder, it should appear from the record that he complied with it throughout. In that connection, it is significant that when two relatives of the petitioner discussed the question of fees with the respondent after the dispute arose, he did not mention the existence of the retainer. It is equally significant that in discussions with new counsel retained by the petitioner, the respondent did not disclose that he held a signed retainer and asserted no claim for fees predicated thereon. As appears from the schedules in the transfer tax proceedings, the collected receivables amounted to $28,750.60. For this service, the respondent deducted $7,500, which was not in accordance with his retainer of 15%, but was in excess of 26%. As evidence of the value of his services, the respondent directs attention to affidavits indicating that the executrix took a credit of $25,000 for legal fees. They were prepared by the respondent at the time that he had a retainer calling for 15%. In providing for that credit, it is apparent that he ignored the contract.

The conclusion is inescapable that after its execution, the parties disregarded the explicit terms of the retainer, and until this litigation commenced, the respondent evaluated his services on a different basis. A contract duly executed and thereafter abandoned or ignored by the contracting parties is unenforcible. Moreover, an abandonment may be inferred from the conduct of the parties and the attendant circumstances (Green v. Doniger, 300 N. Y. 238, 245; Rodgers v. Rodgers, 235 N. Y. 408, 410; Schwartzreich v. Bauman-Basch, Inc., 231 N. Y. 196, 205; 6 Williston on Contracts [rev. ed.], § 1826, p. 5171).

Retainer contracts between attorney and client, as a matter of public policy, are of special interest and concern to the courts. They are not always enforcible in the same manner as ordinary commercial contracts. This is especially true when an agreement is consummated after the relationship has been established, and trust and confidence have been reposed in the attorney by the client. In this case, the confidential relationship of attorney and client came into being several months before the retainer was signed. Under the circumstances, our courts, as well as those in other jurisdictions, have repeatedly held that the burden of proving that the arrangement for compensation was fair and reasonable and fully comprehended by the client rests with the attorney. (Matter of Vaupel, 266 App. Div. 723; [279]*279Frost v. Bachman, 259 App. Div. 745, 746; 5 Am. Jur., Attorney at Law, § 160; Ann. 19 A. L. R. 847, 855.)

In Matter of Howell (215 N. Y. 466), in which a retainer signed by an elderly woman was in question, the court said (p. 472): ‘ ‘ Here we have the alleged contract made * * * at a time when the relation of attorney and client had existed for a long period of time and was still in force. In determining the validity and conclusiveness of such contracts, in view of the confidential relation between the parties, the same will be carefully scrutinized by the courts.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Nicholas A. Gabriele, P.C. v. Feldman
Appellate Terms of the Supreme Court of New York, 2017
Matter of Talbot
134 A.D.3d 726 (Appellate Division of the Supreme Court of New York, 2015)
Nicholas A. Gabriele, P.C. v. Fay
50 Misc. 3d 73 (Appellate Terms of the Supreme Court of New York, 2015)
In re Talbot
84 A.D.3d 967 (Appellate Division of the Supreme Court of New York, 2011)
Barry Mallin & Associates P.C. v. Nash Metalware Co.
18 Misc. 3d 890 (Civil Court of the City of New York, 2008)
Seth Rubenstein, P.C. v. Ganea
41 A.D.3d 54 (Appellate Division of the Supreme Court of New York, 2007)
In re the Estate of Feroleto
6 Misc. 3d 680 (New York Surrogate's Court, 2004)
Schweizer v. Mulvehill
93 F. Supp. 2d 376 (S.D. New York, 2000)
Van-Go Transport Co. v. New York City Board of Education
53 F. Supp. 2d 278 (E.D. New York, 1999)
Savitsky v. Sukenik
240 A.D.2d 557 (Appellate Division of the Supreme Court of New York, 1997)
In re Whitehead
169 Misc. 2d 554 (New York Supreme Court, 1996)
In re the Estate of Warhol
165 Misc. 2d 726 (New York Surrogate's Court, 1995)
Matter of Cooperman
633 N.E.2d 1069 (New York Court of Appeals, 1994)
Jones v. Trice
202 A.D.2d 394 (Appellate Division of the Supreme Court of New York, 1994)
In re the Estate of Mehr
152 Misc. 2d 419 (New York Surrogate's Court, 1991)
Cass & Sons, Inc. v. Stag's Fuel Oil Co.
148 Misc. 2d 640 (New York Supreme Court, 1990)
Carver v. Apple Rubber Products Corp.
163 A.D.2d 849 (Appellate Division of the Supreme Court of New York, 1990)
Rosenman & Colin v. Richard
850 F.2d 57 (Second Circuit, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
7 A.D.2d 275, 182 N.Y.S.2d 475, 1959 N.Y. App. Div. LEXIS 9886, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-schanzer-nyappdiv-1959.