In re the Judicial Settlement of the Estate of McDonald

5 Mills Surr. 471, 51 Misc. 318, 101 N.Y.S. 275
CourtNew York Surrogate's Court
DecidedJuly 15, 1906
StatusPublished
Cited by4 cases

This text of 5 Mills Surr. 471 (In re the Judicial Settlement of the Estate of McDonald) 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 Estate of McDonald, 5 Mills Surr. 471, 51 Misc. 318, 101 N.Y.S. 275 (N.Y. Super. Ct. 1906).

Opinion

Heaton, S.

This proceeding was instituted for a judicial ■settlement of the accounts of the administratrix. The Syra[472]*472cuse Casket Company, claiming to be a creditor of the deceased,, was cited in this proceeding by direction of the surrogate, and. appears.

The intestate was killed in Syracuse on the 13th day of June, 1905, and the funeral was furnished by one Gaynor at an expense of $291 and the claim therefor assigned to the Syracuse Casket Company. On the 26th day of June, 1905, the widow, who was a resident of this county, as was also her husband, applied for limited letters of administration and the same were granted to her on that day.

Thereafter, on the 25th day of April, 1906, such claim for funeral expenses was presented to her and she refused to pay the same and suit was thereupon brought 'against her as such administratrix in the Supreme Court of Onondaga county to recover therefor. On the 21st day of March, 1906, the administratrix was permitted to compromise and settle her cause of action against the employers of the deceased for negligently causing his death, for the sum of $1,200, and she gave an additional bond to cover the amount of such recovery. When this proceeding came on for hearing it appeared that no money or other property of the deceased had come to the hands of the administratrix and that her account contained but the one item of receipt, namely, the amount recovered as damages, and but a single item of disbursements, namely, the amount paid for the expenses of collecting the damages.

The claimant moved, first, to dismiss the proceedings on the ground that one year had not expired since the granting of letters and, 'as no notice to creditors had been published, that the surrogate had no jurisdiction to make a decree of distribution; second, for an adjournment of the proceedings pending the trial' of the Supreme Court action. The administratrix claimed that, as there had been no property of the deceased received by her, this was a proceeding to distribute damages under section 190$ [473]*473of the Code and that the claimant was not an interested party and could not he paid his claim from the fund in court.

"Where the deceased leaves no estate and the only money or property which is -in the hands of the administrator is the proceeds of the recovery, the proceeding for its distribution is not governed by the general rules applicable to 'the settlement of estates, but is a special proceeding, provided for by section 1908,, and the jurisdiction of the surrogate is limited and restricted to the terms of that section and to making the decree therein provided for. The money so received does not become general assets of the estate; it is not subject to the payment of the debts of the deceased nor to the ordinary rules applicable to the settlement and administration of the estates of deceased persons.. Stuber v. McEntee, 142 N. Y. 200; Mundt v. Glokner, 24 App. Div. 110; 48 N. Y. Supp. 940.

The cause of action is not one in relation to the estate of the deceased and is not for the benefit of persons interested in such estate as creditors or otherwise, but the representative acts solely as trustee for the specified beneficiaries for whose exclusive use the recovery may be had. Matter of McCullough, 18 Misc. Rep. 721; 43. N. Y. Supp. 968; Hegerich v. Keddie, 99 N. Y. 258.

From these authorities it is apparent that this recovery is no part of the estate of the deceased, and, therefore, the provisions regulating the settlement of the estates of deceased persons cannot apply, that is, cannot be used or taken to pay the debts of the deceased, and, therefore, there need be no advertisement for creditors.

The motion of the claimant to dismiss the proceeding for lack of jurisdiction is denied.

Shall the motion to postpone this hearing to await the result of the action in the Supreme Court be granted ?

If the funeral expenses are not a charge against this fund, then the action in the Supreme Court will not result in a judg[474]*474ment which will make them such a charge, and the position of .the claimant in this court will not be changed. If such expenses ;are a charge upon the fund and can be allowed without the consent of the administrator, then the surrogate has sole authority rnnder the section to determine the sum to be allowed for the reasonable funeral expenses, and to direct their payment.

The surrogate must either determine and enforce the rights of the claimant to payment, or adjudge that he has no remedy in this or any other court as against this fund.

The Code of Civil Procedure, section 1903, makes the damages recovered the exclusive property of the widow and child of the deceased and provides that the plaintiff administratrix must distribute the amount recovered .as if it was unbequeathed assets left in her hands after payment of all debts and expenses of administration, except that she may deduct therefrom the -expenses of the action, the reasonable funeral expenses of the deceased, and her commissions upon the residue. These deductions must 'be allowed by the surrogate upon such notice as he directs.

Where the plaintiff administratrix deducts the expenses of the action and of the funeral in her account and no objection to the necessity or reasonableness of the charge is made by any of the next of kin, scuh charges are by express authority of the •statute payable from the fund; and, if objection is filed to any of the items thereof, the surrogate may try the question of the necessity and reasonableness of such charges and determine the ■amount of the credit to be allowed; but the right in such a case to have such expenses, when properly determined as to amount, paid from the fund is settled by the section itself. Matter of Snedeker, 95 App. Div. 149; Lee v. Van Voorhis, 78 Hun, 575; 61 N. Y. St. Repr. 220; affd. 145 N. Y. 603.

Where, however, the plaintiff administratrix fails to pay the expenses of the action or the funeral expenses and does not seek ■to deduct them from the recovery, but resists their allowance [475]*475and deduction, is the charge upon the fund abrogated and the remedy of the claimant lost ?

The amendment charges the funeral expenses upon the fund where there is no general estate from which they can be paid for the following reasons:

First. The amendment places the funeral expenses upon the same footing as the expenses of the action, and the latter expenses may be deducted without the consent of the plaintiff. In Lee v. Van Voorhis, 78 Hun, 575; 61 N. Y. St. Repr. 220; affd. 145 N. Y. 603, the court said, “ and section 1903i provides that the amount of his (the attorney’s claim shall be deducted from the recovery by the administrator.” While the case is not ■exactly in point, the Court of Appeals in Lee v. Vacuum Oil Co., 126 N. Y. 579-587, made this remark concerning the relation of the recovery to the attorney’s charges in this class of .cases: They (the attorneys) now have recourse to an ample fund provided by the settlement for the payment of their lawful charges.”

Second. It is conceded that the section charges both classes of expenses upon the fund provided the plaintiff administratrix ■consents thereto.

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Related

In re Riley
45 Misc. 2d 658 (New York Surrogate's Court, 1965)
In re the Judicial Settlement of the Account of Meng
17 Mills Surr. 195 (New York Surrogate's Court, 1916)
In re the Judicial Settlement of the Account of Huth
13 Mills Surr. 387 (New York Surrogate's Court, 1914)
Cunningham v. City of New York
141 N.Y.S. 1000 (New York Supreme Court, 1913)

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5 Mills Surr. 471, 51 Misc. 318, 101 N.Y.S. 275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-judicial-settlement-of-the-estate-of-mcdonald-nysurct-1906.