In re the Judicial Settlement of the Account of Gourary

34 Misc. 3d 486
CourtNew York Surrogate's Court
DecidedNovember 1, 2011
StatusPublished

This text of 34 Misc. 3d 486 (In re the Judicial Settlement of the Account of Gourary) 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 the Account of Gourary, 34 Misc. 3d 486 (N.Y. Super. Ct. 2011).

Opinion

[487]*487OPINION OF THE COURT

Kristin Booth Glen, S.

This case, involving the construction of a latent ambiguity in a will clause, foregrounds the difficulty of determining close cases in the absence of a clearly enunciated burden of proof.

An earlier decision (Matter of Gourary, NYLJ, Nov. 16, 2010, at 43, col 3) denied summary judgment on an objection in this estate accounting challenging “[the Executor’s] claim that a rare book collection (the Collection)[1] worth more than $5 million at the time of decedent’s death was included in the specific bequest of tangibles,” finding a latent ambiguity2 requiring consideration of extrinsic evidence and directing a hearing on the issue. Familiarity with the facts set forth in that opinion is assumed, but a few need be repeated in order to place the resulting hearing, and testimony adduced there, in context.

Paul Gourary, the decedent, died on January 28, 2007, leaving an estate of approximately $17 million. His two-page will, admitted to probate on September 5, 2007, named his wife Marianne Gourary as his executor. In article second, it made a specific bequest of tangibles to Marianne, and in article third, it bequeathed the residuary, two thirds to Marianne and one third to his son John.

The article second specific bequest reads as follows:

“All household furniture and furnishings, books, pictures, jewelry and other article of personal or household use including automobiles, and all stick [sic] pertaining to my apartment in a cooperative corporation owning premise 45 East 85th Street, New York City, which I may own at the time of my death, I bequeath to my wife, Marianne c. gourary, if she survives me.”

[488]*488In her capacity as executor, Marianne signed and filed an estate tax return that specifically designated a “rare book collection” valued at $5.2 million, which she has deemed included in. the specific bequest to her. Whether the Collection was or was not. included in the specific bequest is the issue raised by John, as objectant to Marianne’s intermediate accounting.3

As this court’s prior decision noted, denying the cross motions for summary judgment,

“the record to date does not shed light on questions having material bearing on whether decedent intended all or some or none of his rare books or other rare collectibles to pass under article second as items of personal or household use as opposed to items held for investment purposes.”4

For example, the decision noted, the record did not disclose the number or proportion of items in the Collection that could be clearly characterized as “books,” as opposed to prints, broadsides, pamphlets, manuscripts, etc. Nor did it detail the items kept in decedent’s apartment as opposed to off-site in a safe deposit box. Nor was there information about how, if at all, the Collection, or portions of it, was insured.

Accordingly, a hearing was held on March 17, 2011, and, after the failure of settlement discussions, the instant decision makes findings of fact that resolve the ambiguity.

Evidence Adduced at the Hearing

Six witnesses testified at the hearing: petitioner/executor Marianne Gourary; Corinne Frugoni, Marianne’s daughter and decedent’s stepdaughter; Susan Boorsch, Curator of Prints, Drawings and Photographs at the Yale University Art Museum and formerly Associate Curator in the Department of Drawings and Prints at the Metropolitan Museum of Art; Eric Holzenberg, Director, The Grolier Club of New York; Rachna Sachdev, a partner at Green and Ettinger, the law firm of Paul Green, [489]*489now deceased, the drafter of the will at issue;5 and objectant John Gourary. Their testimony established a number of undisputed facts.

Decedent was a passionate collector of pre-1800 materials relating to festivals, or “fetes,” and had been engaged in assembling the Collection for many years, beginning before his marriage to Marianne. The Collection consisted of books (in a number of languages including languages which neither he nor Marianne spoke or read), prints, manuscripts, pamphlets, scrolls and broadsides.6 Most of the Collection was maintained in decedent’s apartment, the books in a glass-fronted bookcase prominently featured in the living room, with other items in storage boxes specially constructed to avoid damage from light and dust. Some 21 larger items were kept in a safe deposit box at a nearby bank. Marianne, a collector in her own right,7 assisted him in assembling the Collection, and whenever pieces from the Collection were lent to museums, including the Metropolitan Museum of Art, the Dartmouth Art Museum, the Brown University Art Museum, and the College of Staten Island, their provenance was described as that of “Mr. and Mrs. Paul Gourary.”8

The Collection was insured under the “Valuable Items” rider to decedent’s and Marianne’s household policy,9 which in turn referred to a “schedule consisting of books, manuscripts, drawings, etc. on file with company.” That schedule, attached to the [490]*490policy, includes an initial list of 241 items denominated “Books,” and 33 items under a separate heading, “Manuscripts - Drawings - Engravings.” There are 12 appended lists, apparently reflecting additions to the Collection, made over almost two decades. They are variously titled, “Books, Prints and Drawings” (1967, 1979, 1980, 1981, 1983); “Books, Drawings and Prints” (1969, 1971, 1974, 1975, 1976, 1978); and “Books, Manuscripts, Prints and Drawings” (1977). The letterhead on each of the lists is a printed title, “Paul Gourary” with “Mr. and Mrs.”10 handwritten above or in front of the printed matter. The values assigned to each item were, apparently, the purchase price, and according to Marianne, decedent specifically noted that the Collection was underinsured.

In their testimony, both Frugoni and Holzenberg put to rest any notion that decedent was “collecting for investment purposes.” However, shortly after decedent’s death, Marianne began the process of monetizing the Collection, first bringing the items in the safe deposit box to the apartment, and then engaging Christie’s to auction off the vast majority of the pieces contained in it.* 11

Perhaps the most significant testimony was that of Eric Holzenberg, who explicated the nature of “collections” and “collecting.” He explained, for example, that the Grolier Club is

“not a book club in the sense that people get together and discuss current novels or nonfiction books and discuss them back and forth. The Club is made up of people who are, certainly, concerned with books as information, as texts, but also as historical artifacts, as objects of art, and as the focus of collecting.”

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Bluebook (online)
34 Misc. 3d 486, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-judicial-settlement-of-the-account-of-gourary-nysurct-2011.