Mahler v. American Airlines, Inc.

49 Misc. 2d 693, 269 N.Y.S.2d 342, 1966 N.Y. Misc. LEXIS 2318
CourtNew York Supreme Court
DecidedJanuary 11, 1966
StatusPublished
Cited by3 cases

This text of 49 Misc. 2d 693 (Mahler v. American Airlines, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mahler v. American Airlines, Inc., 49 Misc. 2d 693, 269 N.Y.S.2d 342, 1966 N.Y. Misc. LEXIS 2318 (N.Y. Super. Ct. 1966).

Opinion

Clare J. Hoyt, J.

These actions arise from the crash of an American Airlines plane in Jamaica Bay, New York on March 1, 1962, in which decedents Joseph M. Sarley and his wife Beverly J. Sarley were killed. They were survived by four infant children.

[695]*695Decedents resided in Westchester County. Letters testamentary were issued by the Surrogate of that county to Mary Ann Mahler, the sister of Mr. Sarley, who is the plaintiff in these actions. Mrs. Mahler has also been appointed guardian of the person and property of each infant by the Broome County Surrogate and she is presently acting as such.

These actions, along with 13 others, were consolidated for joint trial in New York County Supreme Court on the issue of liability. Several actions were settled. Five remained for trial with the actions at bar. The suits against the codefendants were dismissed and the jury found for plaintiffs against defendant American Airlines, Inc. Thereafter and in October of 1965 the issue of damages in these actions was tried in this court, resulting in verdicts of $215,129.47 in the case of Joseph M. Sarley and $107,-564.73 in the case of Beverly J. Sarley. Judgments were entered on October 14, 1965 for $262,366.63, including interest of $46,-790.66 and costs of $446.50 in the Joseph M. Sarley case and for $131,406.56, including interest of $23,395.33 and costs of $446.50 in the Beverly J. Sarley case.

The executrix has invoked the concurrent jurisdiction of this court under section 133 of the Decedent Estate Law for the approval of the settlement of these actions, for the fixing of attorneys’ fees, for the allowance of the disbursements to the attorneys, and for the allocation of the recoveries to the four children after the payment of fees and expenses.

Although judgments have been entered in the amounts indicated, the executrix seeks approval of settlements in the amounts of the judgments which the defendant American Airlines, Inc. has agreed to pay upon the execution and delivery of releases by the executrix and a stipulation vacating and setting aside the judgments and discontinuing the actions on the merits. In effect, both sides arc waiving an appeal from the judgments and are agreeing to settle and compromise the actions for the amounts of the judgments. A compromise on this basis is justified. It is highly improbable that the verdicts if reviewed as to amounts would be disturbed. The court can express no opinion as to the merits of an appeal from the finding of liability. A settlement precluding a reversal of such finding is certainly in the best interests of the children for whose benefit these actions were brought.

The executrix is thus authorized and empowered to execute and deliver releases to defendant American Airlines, Inc. upon payment to her as executrix of the amount of the judgments entered in both actions, subject to the payment of the compensation liens hereafter mentioned, and her attorneys are authorized and directed to execute and deliver stipulations vacating and [696]*696setting aside the judgments and discontinuing the actions on the merits.

Before attention can be directed to the allocation of the net amounts distributable to the beneficiaries, a determination must be made as to the compensation to be allowed the attorneys for their services and the payment of their disbursements. The executrix has specifically waived any claims to commissions on these recoveries.

The attorneys of record were retained by the executrix shortly after the accident. She entered into a retainer agreement with them, whereby the attorneys were to receive, subject to the approval of the court, one third of the net recoveries after the deduction of taxable costs and disbursements and expenses for expert testimony, investigation or other services properly chargeable to the actions. The agreement further provided that any fees payable to associate counsel who might be engaged by the retained attorneys, would be paid out of the retained attorneys’ fees and would not be in addition thereto. The executrix in her petition and the attorneys of record in an affidavit annexed thereto seek payment to the attorneys of $4,722.65, the expenses incurred by the attorneys of record and the associate counsel. These items appear to be proper charges and payment of the same is allowed. The attorneys of record seek an allowance of $88,880.93 from the proceeds of the Joseph M. Barley action and $45,227.57 from the proceeds of the Beverly J. Barley action, a total of $134,108.50. These figures are arrived at by deducting from the judgment in each action the taxable costs and disablements and one half of the expenses to arrive at the amount of the recovery subject to the fee, taking one third thereof as the fee and adding thereto in each case one half of the expenses incurred.

The agreement between the executrix and the attorneys of record to pay fees of one third is subject to review to determine its reasonableness in the light of services rendered (Matter of Meng, 227 N. Y. 268; Matter of Schneider, 116 N. Y. S. 2d 30). Where the representative shares in the award, his share is subject to the fee upon which he has agreed, but other beneficiaries are not bound by the agreement. .The fee as to their share is subject to the court’s determination of reasonableness (Matter of Peterson, 257 App. Div. 449; Matter of Williams, 116 N. Y. S. 2d 82).

Here all the beneficiaries are infants. They are not bound by the agreement, by virtue of the power of the court under section 133 of the Decedent Estate Law to fix the reasonableness of the fee and by virtue of section 474 of the Judiciary Law which pro[697]*697vides that the court must determine and fix attorney’s fees in actions brought on behalf of infants. Part III of the Rules of the Appellate Division, Second Department, 1‘ Regulating the Conduct of Attorneys and Counselors at Law ”, provides in rule IV thereof for schedules of contingent fees that will be deemed reasonable in personal injury and wrongful death actions. Paragraph (f) of subdivision (5) of said rule IV provides, however, that the schedules are not deemed applicable for the fixing of compensation for attorneys representing infants where statutes or rules provide for the fixation of such compensation by the court.

Thus the court must determine the reasonable value of the services rendered irrespective of the retainer agreement. Petitioner and her attorneys seek compensation on a contingent fee basis of one third of $388,157.57, being the total judgments less the taxable costs and disbursements and the attorneys’ expenses.

It is the opinion of this court that a fee on this agreed percentage would be disproportionate to the services rendered where it is applied to such a substantial recovery. Petitioner and her attorneys seek to apply this agreed percentage to two separate verdicts, each substantial in amount. The verdicts result from companion actions involving the death of both parents and the services rendered in the two actions would not have been proportionately reduced had but a single action been brought for the death of one parent.

The retained attorneys engaged associates as trial counsel and much of the pretrial proceedings were conducted by the trial counsel, who represented many other plaintiffs in suits arising from this accident. The liability trial was conducted by trial counsel in a joint trial in which they represented plaintiffs in several companion actions. The damages trial of the actions at bar was also conducted by trial counsel.

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Related

In re Acquafredda
189 A.D.2d 504 (Appellate Division of the Supreme Court of New York, 1993)
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52 Misc. 2d 653 (New York Supreme Court, 1967)

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Bluebook (online)
49 Misc. 2d 693, 269 N.Y.S.2d 342, 1966 N.Y. Misc. LEXIS 2318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mahler-v-american-airlines-inc-nysupct-1966.