In re the Judicial Settlement of Account of Proceedings of Security Trust Co.

132 Misc. 466, 230 N.Y.S. 519, 1928 N.Y. Misc. LEXIS 1020
CourtNew York Surrogate's Court
DecidedMay 14, 1928
StatusPublished
Cited by5 cases

This text of 132 Misc. 466 (In re the Judicial Settlement of Account of Proceedings of Security Trust Co.) 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 Judicial Settlement of Account of Proceedings of Security Trust Co., 132 Misc. 466, 230 N.Y.S. 519, 1928 N.Y. Misc. LEXIS 1020 (N.Y. Super. Ct. 1928).

Opinion

Feely, S.

From the agreed state of fact submitted herein, it

appears that this testator, without disclosing to a public hospital, upon such threshold inquiry as it made, that he was worth over $400,000, somehow availed himself of the more distinctly charity service of the hospital, which, finally, in passing him from its out-patient department to its in-patient service, as such charity patient, exercised its exclusive privilege in designating from its staff two surgeons to treat him for an ailment necessitating a major operation, theretofore diagnosed in a series of observations, in the out-patient department, over a period of six months. With these staff surgeons, directly, this patient made no financial arrangement when he finally decided to submit to operation; but he then did agree with the hospital to pay, and did pay, the usual, though inadequate, fixed charge in such cases for room, nursing and post-operative care. He thereupon received valuable surgical service from the hospital at the hands of the staff as aforesaid. [467]*467Upon Ms death, a month later, the facts as to his financial standing became known at the hospital; and the two surgeons who had operated on him then made claim against Ms estate for the reasonable value of their surgical services.

In those circumstances, the only question now put up to tMs court is whether these two surgeons can recover. Have they a legal claim against his estate?

The applicant was suffering from an ailment that is characteristic of advanced years; and he probably had been so afflicted for some time before he first went to the hospital. A week after he was first examined there, he was advised that the only remedy was surgical and radical, a perineal prostatectomy; yet he struggled along without operative treatment for six months, until, finally, Ms condition became such that he was forced to go back to the hospital for the operation.

It does not exactly appear how, or why, he entered the outpatient department, at the outset. Apparently, he could not have been so dressed then as to suggest wealth. The stipulation reads that in answering such questions as may have been put to him-by the admitting clerk regarding Ms financial condition, he did not disclose the fact that he was financially able to pay.” This statement is not positive, either as to the questioning, or as to the answering. On his initial visit the first thing was observation and diagnosis; and talk, if any, as to money matters at that time was, probably, slight or casual. If his appearance then was neither that of a wealthy man, nor evidently that of a pauper, but that of modest, middle class, or the shabby genteel, a sense of tact may have forborne to press the financial investigation with the newcomer to the point of making him state positively he had no ready means whatever. The investigation appears to have been very meagre, indeed, at tMs first visit; but somehow it resulted in'Ms being classed as an out-patient. So, when he came back six months later for the operation, he was already on the record as an out-patient and was then so regarded; and then, naturally, the only things he was asked to pay for were for room, nurse and care. It was only then he decided to have the operation; and having been already classified as an out-patient, the matter of the surgeon’s recompense was not talked about at all.

It seems improbable he deliberately offered himself to the hospital, at any time, as so much clinical material, merely to escape paying a private surgical fee or that he schemed to sneak by, under the pretense of being a pauper. Had his initial approach to the hospital been through introduction of an extramural physician, the matter of the surgeon’s recompense would have been discussed, [468]*468as was that of the room and nursing. The stipulation somewhat broadly declares that he obtained admission to both departments with the purpose of obtaining both medical and surgical services without charge; and that he had ho expectation or intention of paying for the medical and surgical services which were rendered him.

Whether he secured that service by fraud, or, rather, through mistake, the fact remains that, in one way or another, the benefit he received was more than he paid for. His contract was made with the hospital rather than with the surgeons. He agreed to pay, and did pay, just what he was asked to pay for. The original mistake was in not finding out he was able to pay more, as he should have done, or in his notion that the service was free.

This feature of mistake, in connection with the contract that was made, takes this case out of the rule, as expressed by Landon, J., in his dissenting opinion at General Term in City of Albany v. McNamara (49 Hun, 356, 360), that “the deceased was admitted to the hospital as a poor person and there is no evidence or finding of any mistake or misrepresentation. Money or support given in pure charity cannot be recovered for upon the surmise that the charity was not worthily bestowed.”

Professor Woodward, in his work on Quasi-Contract, states the rule to be that “ if one, at the time of conferring a benefit upon another, confers it as a gift, that is, without intending thereby to establish contractual relations, it cannot afterwards be claimed that the benefit was conferred in misreliance upon a supposed contract,” and restitution cannot thereafter be claimed. He cites the case of St. Joseph’s Orphan Society v. Wolpert (1882, 80 Ky. 86), where the plaintiff society had supported and educated four children who were supposed, when received, to be penniless, but were afterwards discovered to have had then a small sum that they had received from their mother’s estate, and some United States pension money through their father’s service. There the court said: “ It has been held too often to admit of doubt or discussion, that an executed gift or gratuity cannot be revoked by the donor, no matter what may have been the condition of the donee, or what charities he shall receive, or property acquire in the future, unless the donation or gratuity were the result of fraud or mistake in its execution.” The court then emphasizes the fact that the plaintiff was a corporation,- organized for charity, and that it could have made a contract with the guardians of these children; and then continues: “There was no mistake in the execution of these charitable donations, which do not partake of the nature of a contract to the same degree that ordinary gifts do; but the objects of this charity seem to have been less needy [469]*469than appellant supposed, and this is all we are authorized to infer from the allegations of the petition.”

In City of Albany v. McNamara (117 N. Y. 168) the testatrix became an inmate of a hospital and paid it, regularly, for her room and received its receipt in full; ” but somehow the city had also paid the hospital on account of her support as a poor person, upon bills presented by the hospital containing her name, three years’ support amounting to 1538.28; for which the city made claim against her estate when it discovered the facts.

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Bluebook (online)
132 Misc. 466, 230 N.Y.S. 519, 1928 N.Y. Misc. LEXIS 1020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-judicial-settlement-of-account-of-proceedings-of-security-trust-nysurct-1928.