In re the Judicial Settlement of the Account of Proceedings of Malcomson

188 A.D. 600, 177 N.Y.S. 238, 1919 N.Y. App. Div. LEXIS 7794
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 3, 1919
StatusPublished
Cited by22 cases

This text of 188 A.D. 600 (In re the Judicial Settlement of the Account of Proceedings of Malcomson) 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 Judicial Settlement of the Account of Proceedings of Malcomson, 188 A.D. 600, 177 N.Y.S. 238, 1919 N.Y. App. Div. LEXIS 7794 (N.Y. Ct. App. 1919).

Opinion

Dowling, J.:

The proceeding is one for the judicial settlement of the account of the executors of Alfred S. Malcomson, deceased. A. Bell Malcomson is a brother of decedent and one of the [601]*601residuary legatees and devisees under his will; he was also a legatee thereunder in the sum of $25,000. He executed an instrument under seal whereby for a stated consideration of $19,000 he sold, assigned, transferred and set over unto Catherine A. Malcomson and Henry T. Malcomson, his sister and brother respectively, all his right, title and interest under said will. He also gave to the executors transfers and releases of his rights in an apartment house belonging to the estate and released them personally and as executors for all claims of any kind whatsoever. A. Bell Malcomson alleges that he never received any consideration of any kind for the execution of the papers enumerated, other than the payment of his special cash legacy of $25,000, to which he was entitled under the will, claiming that the papers were without consideration. A. Bell Malcomson filed his petition in the Surrogate’s Court, praying that an order be entered as follows:

“ First. That the executors forthwith make and file a complete and full account of all their transactions in and about the estate which they have in trust.
“ Second. That your petitioner have the right to file proper exceptions thereto and be heard thereon.
Third. That the amount of the residuary estate if any, be ascertained and certified.
Fourth. That the amount of the residuary estate of your petitioner under the will be ascertained.
“Fifth. That the paper executed by your petitioner on January 4th, 1911, hereinbefore recited purporting to assign to the executors personally his interest in the estate be disregarded except as a receipt for his money legacy, as being without consideration, against equity and good conscience and void and that the executors pay over to your petitioner the amount found to be due as his portion of the residuary of the estate and for such other and further relief as the Court may deem just.”

A citation was thereupon issued to the executors to show cause why an order should not be entered directing said executors forthwith to render and settle a complete and full account of their transactions in and about the estate which they have in trust and why the paper executed by the petitioner on January 4th, 1911, purporting to assign to the [602]*602executors personally Ms interest in the estate, should not be disregarded except as a receipt for Ms money legacy as being without consideration, against equity and good conscience and void, and why said executors should not pay over to said Abraham B. Maleomson the amount found to be due as his portion of the residuary of said estate.”

The executors filed answering affidavits denying that any fraud had been committed on petitioner, and averring that he had executed the assignment with full knowledge of all the facts and that by reason of the assignment the petitioner was no longer a party interested in the estate and had no right to demand an accounting. On November 2, 1918, an order was made directing the executors to render and file their account, and further consideration of matters contained in said petition be postponed to the settling of said accounts.” The executors had averred their willingness to account and that the reason why it had not been done sooner was because they expected to get releases from all parties interested and file them in lieu of a formal accounting. The executors filed a petition for a voluntary judicial settlement of their accounts and the two proceedings were consolidated by order dated February 3, 1919. A. Bell Maleomson meantime had filed objection to the account as filed by the executors. On March 18, 1919, the surrogate made the order now appealed from appointing the referee to report with his opimon upon the preliminary question as to the validity of the assignment of the legacy in question.

The executors deny the power of the surrogate to make the order, contending that petitioner’s only remedy was by an action in equity.

In 1910 (Laws of 1910, chap. 576) the Legislature amended the Code of Civil Procedure by adding a new section 2472-a, as follows:

“ The Surrogate’s Court has also jurisdiction upon a judicial accounting or a proceeding for the payment of a legacy to ascertain the title to any legacy or distributive share, to set off a debt against the same and for that purpose ascertain whether the debt exists, to affect the accounting party with a constructive trust, and to exercise all other power, legal or equitable, necessary to the complete dis[603]*603position of the matter. He must order the trial of any controverted question of fact of which either party has constitutional right of trial by jury and seasonably demands the same.”

Under the provisions of this section, it has been held that the surrogate had power to set aside assignments of legacies on the ground that they were procured by fraud. (Matter of Thornburgh, 72 Misc. Rep. 619; Matter of Dollard, 74 id. 312; affd., 149 App. Div. 926; Matter of Finkel, Surr. Mem. Dec. 1916, p. 995; affd., 177 App. Div. 885.)

By chapter 443 of the Laws of 1914 the Legislature enacted an entire revision of the sections of the Code of Civil Procedure relative to Surrogates’ Courts and the proceedings therein. Section 2510 contained therein, so far as it is material to the present question, reads as follows:

“ Each surrogate must hold, within his county, a court, which has, in addition to the powers conferred upon it, or upon the surrogate, by special provision of law, jurisdiction, as follows:
To administer justice in all matters relating to the affairs of decedents, and upon the return of any process to try and determine all questions, legal or equitable, arising between any or all of the parties to any proceeding, or between any party and any other person having any claim or interest therein who voluntarily appears in such proceeding, or is brought in by supplemental citation, as to any and all matters necessary to be determined in order to make a full, equitable and complete disposition of the matter by such order or decree as justice requires.
And in the cases and in the manner prescribed by statute: * * *
“ 3. To direct and control the conduct, and settle the accounts, of executors, administrators, and testamentary trustees; * *

The preliminary grant of power is broader than that contained in former sections 2472 and 2472-a, which formed the basis for the new section.

It seems to me that the action taken by the surrogate comes clearly within the general grant of power and jurisdiction to him by the Legislature, and that as the proceeding [604]*604in which the order was made is one of the eight classes of proceedings enumerated in the section in which such jurisdiction may be exercised, his order was warranted and valid.

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

Related

In re the Accounting of Balsam
26 Misc. 2d 802 (New York Surrogate's Court, 1960)
In re the Accounting of Bourne
4 Misc. 2d 610 (New York Surrogate's Court, 1957)
In re the Estate of Sexton
182 Misc. 986 (New York Surrogate's Court, 1944)
In re Wilson
253 A.D. 722 (Appellate Division of the Supreme Court of New York, 1937)
In re the Estate of Poth
155 Misc. 116 (New York Surrogate's Court, 1935)
In re the Estate of Winslow
151 Misc. 298 (New York Surrogate's Court, 1934)
In re the Estate of Burr
143 Misc. 877 (New York Surrogate's Court, 1932)
In re the Estate of Caplan
139 Misc. 142 (New York Surrogate's Court, 1931)
Heavner v. Clarke
229 A.D. 786 (Appellate Division of the Supreme Court of New York, 1930)
In re the Estate of McGrath
133 Misc. 30 (New York Surrogate's Court, 1928)
Schley v. Donlin
131 Misc. 208 (New York Supreme Court, 1927)
In re the Estate of Peno
128 Misc. 718 (New York Surrogate's Court, 1927)
In re the Estate of Frame
128 Misc. 788 (New York Surrogate's Court, 1926)
In re the Estate of Haigh
125 Misc. 365 (New York Surrogate's Court, 1925)
In re the Estate of Hawes
119 Misc. 359 (New York Surrogate's Court, 1922)
In re the Estate of Yard
116 Misc. 19 (New York Surrogate's Court, 1921)
In re the Estate of Tyrrell
115 Misc. 714 (New York Surrogate's Court, 1921)
In re the Judicial Settlement of the Supplemental Account of Proceedings of Aldrich
194 A.D. 815 (Appellate Division of the Supreme Court of New York, 1921)
In re the Judicial Settlement of the Accounts of Mutual Trust Co.
112 Misc. 317 (New York Surrogate's Court, 1920)

Cite This Page — Counsel Stack

Bluebook (online)
188 A.D. 600, 177 N.Y.S. 238, 1919 N.Y. App. Div. LEXIS 7794, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-judicial-settlement-of-the-account-of-proceedings-of-malcomson-nyappdiv-1919.