Jackson v. Kessner

206 A.D.2d 123, 618 N.Y.S.2d 635, 1994 N.Y. App. Div. LEXIS 11139
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 10, 1994
StatusPublished
Cited by18 cases

This text of 206 A.D.2d 123 (Jackson v. Kessner) 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
Jackson v. Kessner, 206 A.D.2d 123, 618 N.Y.S.2d 635, 1994 N.Y. App. Div. LEXIS 11139 (N.Y. Ct. App. 1994).

Opinion

OPINION OF THE COURT

Ross, J.

This appeal presents two issues for our review. The first concerns whether an individual who is both the executrix and sole beneficiary of a decedent’s estate can maintain an action for malicious prosecution in her individual capacity, where the underlying suit complained of was commenced against her solely in her capacity as executrix and involved a parcel of land that was the sole asset of the estate. The second, is whether, in this particular matter, so-called "new evidence” presented by the defendants was properly relied upon by the trial court to set aside the jury’s verdict awarding compensa[125]*125tory damages to the plaintiff. For the reasons that follow, we hold that dismissal of the cause of action asserted by the plaintiff in her individual capacity before trial was appropriate. Further, we hold that it was error to grant the defendants’ motion to set aside the jury’s verdict awarding compensatory damages to plaintiff in her capacity as executrix.

Plaintiff is the executrix and primary beneficiary of the estate of her deceased mother, Dora Frank Izsak. The sole asset of the estate is a parcel of real property located at 125 East 62nd Street, New York, New York. In her capacity as executrix of the estate, the plaintiff entered into a contract for the sale of the property with defendant United Development International, Inc. (UDI). Steven A. Kessner, who is identified in the complaint as the sole shareholder of UDI, apparently guaranteed the obligations of UDI under the contract of sale. Pursuant to the aforementioned contract dated April 28, 1989, UDI agreed, inter alia, to purchase 125 East 62nd Street for $1.1 million and gave a $45,000 down payment. However, when UDI failed to complete the Capital Gains Tax Questionnaire or appear for the closing on the adjourn date, the plaintiff declared a default and, pursuant to the contract of sale, retained the down payment for the estate. Purchasers, defendants herein, commenced an action for damages and filed a notice of pendency. After the notice of pendency was vacated, purchasers filed a second notice of pendency and belatedly asserted a claim for specific performance of the contract. Plaintiff promptly offered defendants an opportunity to close but defendants again failed to appear. By order and judgment entered July 18, 1990, Supreme Court, New York County (William J. Davis, J.), granted the plaintiff’s motion for summary judgment, dismissed the defendants’ complaint, which served as the basis for the aforementioned notices of pendency, and declared the real estate contract of sale terminated as of August 11, 1989 due to purchasers’ failure to close. This Court unanimously affirmed the July 18, 1990 decision of the Supreme Court (see, Kessner v Estate of Izsak, 170 AD2d 351).

Plaintiff commenced the underlying action for malicious prosecution, in her capacity as executrix of the estate and on behalf of herself individually, based primarily on the allegation that the sale of the property for $999,000 to a second buyer, one Adam Gordon, fell through upon Gordon’s discovery of the second notice of pendency filed by the defendants. In the order appealed, entered August 9, 1993, before the trial of the action commenced, the trial court (Gammerman, J.) [126]*126granted the defendants’ motion for summary judgment in part, and dismissed the malicious prosecution action maintained by the plaintiff in her individual capacity.

In connection with the appeal from that order, plaintiff argues that, while defendants sued her only in her capacity as executrix in the malicious prosecution action complained of (see, Kessner v Estate of Izsak, supra), the damages caused by defendants’ malicious acts (i.e., the frustration of sale of the estate property to Gordon), were actually suffered by her in her individual capacity as beneficiary of the estate. Plaintiff’s theory is that the beneficiary of an estate should be allowed to maintain an action for malicious prosecution against third parties whose litigation against the estate allegedly caused a diminution of value of estate assets. While plaintiffs specific theory, as the plaintiffs counsel indicates, may be novel in this State, such an action is insupportable by the law as it applies to malicious prosecution and estates.

It is axiomatic that only a party to the proceeding complained of is entitled to maintain an action for malicious prosecution (Crown Wisteria v F.G.F. Enters. Corp., 168 AD2d 238, 241; see, 59 NY Jur 2d, False Imprisonment and Malicious Prosecution, § 48, at 311). The action complained of as a malicious prosecution herein, was an action involving the sale of an estate asset by the plaintiff executrix. While plaintiff is both the sole beneficiary and the executrix of her mother’s estate, the law is clear that, in her individual capacity as beneficiary, plaintiff could have no part in that action. "It is elementary that the executors or administrators represent the legatees, creditors and distributees in the administration of the estate; that their duty is to recover the property of the estate; and that the legatees and next of kin are concluded by their determination in respect to actions therefor and have no independent cause of action, either in their own right or the right of the estate” (McQuaide v Perot, 223 NY 75, 79).

Virtually the same theory of recovery was presented to this Court and rejected in the analogous situation of Wierdsma v Markwood Corp. (53 AD2d 581). In that case, plaintiffs were the decedent’s two sons who sought to recover damages from the defendants who were the decedent’s financial advisors. The cause of action was based on the allegations that said defendants had fraudulently and negligently represented to the deceased that she owned sufficient property to satisfy all of the bequests in her will, including those made to the plaintiffs, without the necessity of her further exercising a [127]*127testamentary power of appointment. Plaintiffs claimed that as a consequence of defendants’ advice they were deprived of specific legacies as well as residuary interests in their mother’s estate. With reference to plaintiffs’ claims and their standing to sue, this Court held: "The essence of their complaint is that because of defendants’ wrongful advice, given to decedent as well as to her entire family, the size of her estate was not as large as it would have been had she exercised the power of appointment. Plaintiffs’ claim is thus no different from that of any other legatee or beneficiary who would have benefited had the estate been larger and is, in reality, merely one to recover estate assets. Such a claim is maintainable by the executors of the estate. The legatees and beneficiaries thereof have no independent cause of action either in their own right or in the right of the estate to recover estate property [citation omitted]” (53 AD2d, supra, at 581-582). Similarly, in the case at bar, plaintiff’s claim in her individual capacity is actually a claim to recover estate assets, i.e., a claim that the property would have sold for a higher price and that the estate would have been worth more, had the sale to Gordon been concluded.

It is of no consequence that the plaintiff is the sole beneficiary of the estate. While it is certainly true that plaintiff in her capacity as the only beneficiary is the only one ultimately affected by a diminution of the value of the estate, the distinction between an individual’s status as fiduciary of an estate and beneficiary cannot be disregarded.

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Cite This Page — Counsel Stack

Bluebook (online)
206 A.D.2d 123, 618 N.Y.S.2d 635, 1994 N.Y. App. Div. LEXIS 11139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-kessner-nyappdiv-1994.