In re the Estate of Stern

161 Misc. 272, 291 N.Y.S. 732, 1936 N.Y. Misc. LEXIS 1530
CourtNew York Surrogate's Court
DecidedNovember 30, 1936
StatusPublished
Cited by1 cases

This text of 161 Misc. 272 (In re the Estate of Stern) 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 Stern, 161 Misc. 272, 291 N.Y.S. 732, 1936 N.Y. Misc. LEXIS 1530 (N.Y. Super. Ct. 1936).

Opinion

Wingate, S.

The instant proceeding presents a question of procedure under section 115-a of the Surrogate’s Court Act, which is novel, so far as the diligence of counsel and the independent research of the court have disclosed.

Caroline Stern Lauricella was appointed administratrix of the estate of Helen Stern on April 19, 1935, and qualified as such by filing a bond in the penal sum of $3,500 with New Amsterdam Casualty Company as surety. Her accounts in that capacity were settled by decree dated October 30, 1936, pursuant to the terms of which she was charged with the sum of $4,357.39 which she was directed to pay out in two general classes of payments aggregating $699.83 and $3,657.56, respectively. The former and preferred total was directed to be paid to four named parties or their attorneys for costs, and to the surety for unpaid bond premiums. The decree then proceeded:

“ Ordered, adjudged and decreed that out of the balance of $3,657.56 remaining in the hands of said administratrix as assets of the estate, the said administratrix pay the judgment creditors herein in the order of preference as follows:
(a) To Carrie E. Stern, as Executrix under the last will and testament of Solomon C. Stern, deceased, for a judgment docketed April 8, 1930, by Solomon C. Stern for $1,754.75, with interest to date of this decree of $691.76, making a total of $2,446.51.
“ (b) To Abraham & Straus, Inc., for judgment docketed May 20,1930, for $688.77, with interest to date of this decree, of $266.65, making a total of $955.42;
[274]*274“ (c) To Harry Burtensky, for judgment docketed October 18,1930, for $1,510; the balance, or the sum of $255.63.”

The administratrix having failed to make the directed payment to Carrie E. Stern, the latter issued execution against her and this has been returned wholly unsatisfied. She now seeks a fixation of the liability of the surety on its bond and a direction for payment of the sum so to be fixed.

The administratrix and her surety and all of the other payees under the decree have been served or have appeared in the proceeding, and all the respondents with the exception of Abraham & Straus, Inc., and the administratrix have filed duly acknowledged waivers consenting that “ an order be made fixing and determining the liability of the ” surety.

The surety has answered, admitting the essential allegations of the petition, expressing its willingness, if permitted, to pay into court the full amount of its obligation under its bond and be wholly discharged from the matter, alleging the failure of the payees under the decree, other than the petitioner, to issue execution and praying that if an order be made directing payment by it to any creditor, that such “ order contain a provision that an execution has been issued and returned unsatisfied by the creditor directed to be paid, or in the alternative that the issuance of an execution against Caroline Stern Lauricella therefor, has been waived by her, if such be the fact.”

In purported response to the last suggestion, an affidavit has been filed by an attorney who describes himself as associated with the attorney for the administratrix, in which he asserts on information and belief that the administratrix “ is entirely without funds with which to pay the persons who by the decree are entitled to receive payments out of the assets of the estate.” It may be noted parenthetically that this affidavit fails to state that none have been paid by her in whole or in part.

This affidavit then continues: .“Your deponent believes that it would be for the best interests of the administratrix that no further executions be issued by way of the other creditors of the estate and on her behalf hereby waives the further issuance of any such executions.”

The composite result of the record is to leave the status of all parties other than the petitioner in an extremely confused and unsatisfactory state. It is apparently the desire of all concerned that this court adjust the rights and equities of all, with a minimum of effort on their part, but they seem to fail to appreciate that a pro.ceeding under section 115-a of the Surrogate’s Court Act is a separate and independent proceeding, which must have a substratum of solid fact to justify any judgment attained.

[275]*275As this court pointed out in Matter of Reppucci (145 Misc. 671, 674), the purpose of the enactment of section 115-a of the Surrogate’s Court Act was merely to endow the surrogate with co-ordinate authority to fix and enforce the liability of a surety upon a bond given in his court where otherwise a resort to an action in another tribunal for the purpose was essential. The result of this grant of authority did not, however, in any material particular, alter the nature of the factual demonstration requisite to a grant of relief but merely permitted the suitor to achieve it, where warranted, in a new forum. As in other instances of the grant of co-ordinate jurisdiction to a new tribunal, the underlying bases of relief are to be amalgamated, as closely as may be, to those previously in vogue in the court of primary jurisdiction. (Matter of Ashner, 231 App. Div. 127, 130; Matter of Manzi, 155 Misc. 670, 677; Matter of Rosenberg, 157 id. 490, 494.)

Unless expressly limited in the grant, the powers of the tribunal to which the new authority is accorded are to be deemed co-extensive with those of the one formerly possessing exclusive power. Consonant with this principle, it follows that the Surrogate’s Court, under section 115-a of the Surrogate’s Court Act, now possesses authority to adjust the relative rights of a number of parties possessing an aggregate of claims in excess of the penal sum of the bond of a surety similar to that inherent in the Supreme Court prior to the effective date of the enactment. (Cf. Guffanti v. National Surety Co., 196 N. Y. 452, 457.)

Since, however, a recovery by any person on a bond in the Supreme Court would be conditioned on a demonstration of the occurrence of facts and the transpiring of events requisite to the maturing of the right ágainst the surety, such a showing is equally a condition precedent to any recovery in this court.

A basic essential to any recovery against a surety is a demonstration of a default in the performance by the principal obligor of the obligation primarily resting upon him. (Matter of Penna, 160 Misc. 525, 527, and authorities there cited.)

In the present case the record may be searched in vain for any intimation that the administratrix has failed to make any one of the directed payments other than that due the petitioner. There is consequently nothing in the record upon which the court can base a determination fixing the liability of the surety to any person other than the petitioner.

If, as in the usual case, the rights of the creditors of the principal were equal, so that all were entitled to share pari passu in the lesser obligation of the surety, this lack of demonstration of their aggregate existing rights against the principal would be fatal to any determina[276]*276tion regarding their respective individual rights, since a payment, if made, by the principal debtor to one of their number would not effect a pro tanto

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Bluebook (online)
161 Misc. 272, 291 N.Y.S. 732, 1936 N.Y. Misc. LEXIS 1530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-stern-nysurct-1936.