Matter of Benedict

147 N.E. 59, 239 N.Y. 440, 1925 N.Y. LEXIS 985
CourtNew York Court of Appeals
DecidedFebruary 25, 1925
StatusPublished
Cited by4 cases

This text of 147 N.E. 59 (Matter of Benedict) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Benedict, 147 N.E. 59, 239 N.Y. 440, 1925 N.Y. LEXIS 985 (N.Y. 1925).

Opinion

Andrews, J.

In 1919 two brothers, Sidney and Albert J. Levi, owned as tenants in common a lot in the center of the business district of Schenectady. On it was a large old-fashioned dwelling. The property was only suitable for business purposes but it could not be so used unless it was converted into stores at a large expense. Although worth $80,000 it could then be rented for but $400 a year, while the annual carrying charges were $2,500, Under such circumstances it was proposed to lease it to one Robert Glenn for twenty-five years, all *443 taxes, insurance, repairs and other expenses to be paid by the tenant so that the lessors might receive a net annual rent of $5,000. Obviously in view of this rental, changes and improvements were required. They were to be made by the tenant subject to the approval of the landlords and the understanding was that at least $20,000 was to be so expended. At the termination of the lease these improvements were to become the property of the lessors. But as usually happens when such terms are imposed the lessee was to be given an option to buy the property during his lease at a price varying from $85,000 to $95,000. In many other respects the rights of the owners were amply protected.

Not unnaturally Albert J. Levi and the wives of the two brothers expressed their approval of this lease and signed it. Some time before, however,' Sidney J. Levi had been adjudged an incompetent and one Benedict had been appointed a committee of his person and estate. Section 2348 of the Code of Civil Procedure authorized such a committee to apply to the court for an order directing that the real estate of the ward be leased or sold where the latter’s interest would be substantially promoted because the property was wholly unproductive or because of other peculiar circumstances. Acting under the authority so conferred Mr. Benedict presented his petition to the County Court. It was entitled: “ In the matter of the application of Charles H. Benedict, as committee of the person and property of Sidney J. Levi, an incompetent person, to lease real estate belonging to said, incompetent for a term of years,” and it set forth the facts that have been stated. The proposed lease was also referred to in the petition and was attached thereto. Thereupon an order was made appointing Mr. Benedict a special guardian of the incompetent for the purpose of leasing and conveying such premises,” and referring the matter to a referee to inquire into the merits of the application. A hearing was had, but one witness being *444 sworn, who testified, among other things, that the whole property was worth $80,000. The lease itself was received in evidence. The referee reported favorably, stating the value of the incompetent’s interest to be $40,000 and that the terms and conditions upon which the property was to be disposed of were set forth in the proposed lease submitted to the court. Thereupon the report was confirmed and the special guardian was directed “ to contract for the lease and conveyance ” of all the right, title and interest of the incompetent in the property at a sum not less than its value as set forth in the report and upon the terms and conditions specified therein. But before executing “ any lease or instrument of conveyance ” the guardian must make an agreement and again report its terms and conditions. Later the guardian did make such agreement and submitted to the court his report. He set forth the terms of the proposed lease including the option to purchase and presented the agreement itself containing the same option to the court. He further stated that these were the best terms he could obtain. There followed an order directing the execution of the lease upon the terms contained in the agreement. Next the guardian reported the execution of the lease and the report was confirmed.

Mr. Glenn entered into possession on May 5, 1919, and expended at least $20,000 in improvements. In August Mr. Benedict died and the Schenectady Trust Company was appointed committee of the person of the incompetent in his stead. In 1923 the tenant desired to exercise his option to purchase for $85,000 and the brother and the two wives were willing to execute the deed but the trust company refused to do so without an order of the court. The lessee, therefore, presented his petition asking that such an order be granted. The trust company answered denying the power of the court to make the order and questioning the validity of the original proceedings. The court denied the application *445 and the Appellate Division unanimously affirmed this result. We granted permission to appeal to this court.

We are not informed as to the theory upon which the courts below have acted. We assume, however, that they approved of some or of all of the various contentions presented by the respondent. It is, therefore, necessary for us to examine these questions.

1. It is said that because the title of the original petition and the prayer of the petitioner speak only of a lease of the property of the incompetent the court had no authority to permit an option to be inserted in the lease. We think that it had. Under the circumstances the court had power to direct either a sale or a lease. Again and again its attention was called to the proposed lease. The special guardian was named for the purpose of leasing and conveying ” the premises. He was later directed to contract for the lease and conveyance.” With all this before it even were there error in the title of the proceeding we think it immaterial. There is no possibility that the court was misled thereby. Further we are not convinced that such error existed. The document was primarily a lease and a lease made upon the condition that an option be given. The court might insert such reasonable conditions in the lease as it thought proper. (Code Civ. Pro. sec. 2355.) Clearly in view of the condition of the property, the amount of rental reserved and the expenditures which the tenant was to make this particular condition was neither unusual nor unreasonable. It was such a condition as might naturally be expected.

2. Assuming as the respondent maintains that' this was essentially, a sale, the order was not made without jurisdiction because the facts as to the value of the property were not shown by the testimony of at least two disinterested persons (Court Rule, 56). Failure to follow the procedure laid down by a mere court rule does not deprive the court of jurisdiction. An order made *446 upon less evidence than the regulation requires may not be attacked in this proceeding. (Cole v. Gourlay, 79 N. Y. 527.)

3. It is claimed that the original proceeding was terminated when the order was made confirming the report of the special guardian. No jurisdiction remains which justifies the granting of the order here sought. We do not agree with this proposition. Control of the court over the proceeding exists until the incompetency ends. (Code Civ. Pro. sec. 2361; Civ. Prac. Act, sec. 1403; Matter of Price, 67 N. Y. 231; Matter of Valentine, 72 N. Y. 184.)

4. The proceeding was begun by a petition of the committee of the incompetent as authorized by section 2349 of the Code.

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Cite This Page — Counsel Stack

Bluebook (online)
147 N.E. 59, 239 N.Y. 440, 1925 N.Y. LEXIS 985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-benedict-ny-1925.