In re the Guardianship of Leftridge

113 Misc. 2d 689, 449 N.Y.S.2d 892, 1982 N.Y. Misc. LEXIS 3363
New York Surrogate's Court·Decided April 21, 1982·Published·Cited by 1 cases

Opinion

OPINION OF THE COURT

Bertram R. Gelfand, J.

On this application by the guardian ad litem heretofore appointed to represent a nine-year-old infant (see Matter of Leftridge, NYLJ, May 11, 1981, p 13, col 3), the relief sought is the revocation of the letters of guardianship of the person and property of the infant heretofore issued to the infant’s father, Thomas Leftridge, an order directing the respondent guardian to account, and that the respondent guardian and the respondent Chase Bank N. A. (“Chase”) be adjudicated to be jointly and severally liable to the infant for the proceeds of a Totten trust bank account owned by the infant and allegedly improperly converted by respondent guardian which conversion was facilitated by [690] the negligence of respondent Chase in paying out the account.

Upon the return of process, respondent Chase filed an answer denying liability and placing at issue the subject matter jurisdiction of the court. The respondent guardian defaulted and the issues as to Chase were severed. The issues relating to the respondent guardian were disposed of by a decision rendered December 9,1981 in which the court determined that the letters of guardianship of the property heretofore issued to respondent guardian be revoked and that he is liable to the infant for the sum constituting the entire proceeds of the Totten trust bank account, plus interest, from the date of his wrongful appropriation of the funds (Matter of Leftridge, NYLJ, Dec. 15, 1981, p 13, col 1). There remain for consideration the issues relating to the liability of Chase. These issues have been submitted on an agreed statement of facts and the legal arguments addressed to the facts.

The infant was born on August 22, 1972. Her mother died on November 23, 1976. The infant’s father was appointed guardian of the infant’s person and property pursuant to a decree entered on June 6, 1977. The infant was the named beneficiary of the proceeds of a Totten trust bank account at the Chase which had been opened by her deceased mother. On July 13,1977 the guardian closed the account and was issued a check by the Chase for the total proceeds of the account payable to “Thomas Leftridge and Dollar Savings Bank,” the latter being the depository designatéd in the letters of guardianship. On July 15, 1977, the guardian deposited the check representing the infant’s funds into his personal account at the Dollar Savings Bank and subsequently withdrew these funds from this account. The funds were apparently appropriated for his own use, his whereabouts now being unknown.

In its answer, Chase predicates its denial of liability on essentially two grounds. Chase’s primary contention is that it is not a proper party to this proceeding since the provisions of SCPA 711 relate solely to relief against a fiduciary and that since Chase is not a fiduciary with respect to any party to the proceeding the court is without jurisdiction to entertain a proceeding against it for a [691] money judgment within the limited confines of a SCPA 711 proceeding.

Respondent Chase’s analysis of the clear import of SCPA 711 is well taken. However,. SCPA 711 is not the controlling statute governing the court’s jurisdiction. Nothing in the petition, the citation, nor the appointment and grant of authority by this court to the guardian ad litem limits either the authority of the guardian ad litem or the scope of these proceedings to the provisions of SCPA 711.

The guardian ad litem for the infant was appointed pursuant to a decision of this court rendered on May 6, 1981, giving him a mandate “to institute such proceedings as he deems appropriate to fully protect the rights of the infant and assure that all of her property is collected and deposited for her benefit” (see Matter of Leftridge, NYLJ, May 11,1981, supra; SCPA 1713, subd 4; 1722, subd 1). In instituting the instant proceeding, both the citation, and the petition upon which it was issued, clearly indicate that in addition to the relief sought against the guardian with reference to the revocation of his letters of guardianship, petitioner was seeking additional monetary relief against both the guardian and respondent Chase. There is ample statutory authority for the guardian ad litem to pursue such relief before this court.

The subject matter jurisdiction of the court is established by the ramifications of SCPA 201 (subd 3) which grants the court complete jurisdiction to administer justice in all matters relating to “estates”. That an estate includes the affairs of the guardianship of an infant’s property created by the court is established by the statutory definition of “estate” set forth in the SCPA. SCPA 103 (subd 19) specifically includes in the definition of “[e]state” “All of the property of a * * * infant * * * as originally constituted, and as it from time to time exists during administration”. The statutory structure conferring upon the Surrogate’s Court the duty and responsibility to appoint and oversee the guardians of the property of infants (SCPA art 17), which authority includes the duty to appoint a guardian ad litem where necessary in pursuit of this function, intrinsically incorporates the authority to entertain such proceedings as are necessary to effectuate the broad statutory [692] scheme which gives the Surrogate’s Court the responsibility to create, preserve and administer the estates of infants. The court clearly has jurisdiction where the claim involves funds which were directed to be deposited into a guardianship account as the infant’s property pursuant to an order of this court, and the factual allegations contending that the court’s order was not followed on the part of the guardian by misappropriation of these funds are intertwined with the allegations that the misappropriation was made possible as a result of the depository holding the funds delivering them negligently and improperly (NY Const, art VI, § 12, subd d; SCPA 103, subd 19; 201, 202, 209; art 17 [1701,1708,1713, subd 4; 1719,1722]; Matter of Morris, 134 Misc 374, 383; Matter of Lanier, 112 Misc 2d 491; Matter of Thompson, NYLJ, July 29, 1976, p 8, col 5). It is accordingly concluded that this proceeding involving an infant’s estate, a former fiduciary for his actions as such fiduciary and a third party, to wit, respondent Chase, is a proceeding within the subject matter jurisdiction of this court. There is no issue raised as to the court’s jurisdiction over the parties.

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In re the Guardianship of Leftridge, 113 Misc. 2d 689, 449 N.Y.S.2d 892, 1982 N.Y. Misc. LEXIS 3363 (N.Y. Super. Ct. 1982).

113 Misc. 2d 689 (In re the Guardianship of Leftridge) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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