Ryerson Towers Inc. v. Estate of Brown

156 Misc. 2d 614, 594 N.Y.S.2d 108, 1993 N.Y. Misc. LEXIS 36
CourtCivil Court of the City of New York
DecidedJanuary 20, 1993
StatusPublished

This text of 156 Misc. 2d 614 (Ryerson Towers Inc. v. Estate of Brown) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ryerson Towers Inc. v. Estate of Brown, 156 Misc. 2d 614, 594 N.Y.S.2d 108, 1993 N.Y. Misc. LEXIS 36 (N.Y. Super. Ct. 1993).

Opinion

OPINION OF THE COURT

Judith J. Gische, J.

The unique issue before the court is whether service of process upon the Public Administrator is sufficient to confer personal jurisdiction over an estate: (a) which petitioner claims is worth less than $10,000, (b) where no probate proceeding has been initiated and (c) where no letters of administration have been issued. The Public Administrator has specially appeared in this proceeding to contest service of process upon it on behalf of the named estate respondent. Corespondent Rudolf Brown seeks dismissal of the entire proceeding based upon petitioner’s failure to serve a necessary party, to wit: the estate.

PROCEDURAL CONTEXT

Petitioner is a cooperative housing company organized under the Mitchell-Lama law. Pursuant to the rules and regulations governing such cooperative, on August 14, 1991 petitioner obtained a certificate of eviction from the Department of Housing Preservation and Development (HPD) authorizing petitioner "to immediately commence any legal proceedings deemed appropriate for the termination of a tenancy” against both "Laura Brown, Tenant (deceased) [and] Rudolf Brown, Occupant.” The certificate of eviction mentions in part that corespondent Rudolf Brown, who also appeared as a respondent in the administrative proceeding, submitted to the administrative tribunal a will purportedly made by Laura Brown in which Ms. Brown’s daughter and Rudolf Brown are named as the sole beneficiaries. The administrative tribunal [616]*616rejected Mr. Brown’s argument that as his mother’s beneficiary he was entitled to live in the apartment.

It is uncontested that the aforementioned will was never admitted to probate and that otherwise no estate representative, either permanent or temporary, was ever appointed by the Surrogate’s Court.

Petitioner thereafter commenced this summary dispossess-holdover proceeding. Service upon the estate of Laura Brown was made by service upon the Public Administrator.

DISCUSSION

In serving process on the Public Administrator to effect personal jurisdiction over the estate petitioner relies upon SCPA 1115 which provides in pertinent part: "1. Without the issuance of letters the public administrator by virtue of his office shall have all the powers of a fiduciary of a decedent’s estate whenever the gross assets of the estate do not exceed in value $10,000.”

The Public Administrator argues that such provision merely gives the Public Administrator the discretion to act as a fiduciary if he so chooses. He further argues that in circumstances like those at bar the Public Administrator chooses not to accept service of process based upon sound policy considerations. Such considerations include that: (1) such service is made without a prior showing of an actual estate (no death certificate has been presented to any court); (2) there may in fact be a will (the case apparently at bar); (3) other interested parties who may be entitled to act or otherwise may have an interest in the estate have not been given notice or a prior opportunity to be heard; and (4) there is no confirmation by someone with personal knowledge that the estate is indeed less than $10,000. The Public Administrator argues that SCPA 1115 was not intended to create a substitute method of service upon small estates like, for example, service upon the Secretary of State confers jurisdiction over corporations. Indeed permitting service of process on small estates in such a manner is not reasonably calculated to achieve actual notice to those persons who may have an interest in the estate and/ or the underlying proceeding.

Petitioner argues that the statute should be literally construed. Relying upon Matter of Pia (21 Misc 2d 464 [Sur Ct, NY County 1959]) petitioner argues that the Public Adminis[617]*617trator has no discretion to renounce appointment as an estate fiduciary.

SCPA 1115 however cannot be interpreted in a vacuum. It must be viewed in accordance with the other provisions of the SCPA relating to fiduciaries acting in estates under $10,000. The $10,000 limitation contained in the statute was clearly intended to make SCPA 1115 compatible with the small estate administration provisions contained in SCPA article 13. (2A Warren’s Heaton Surrogates’ Courts § 25.02 [9].) Indeed the legislative history reflects that SCPA 1115 was previously amended every time the dollar amount of SCPA article 13 was increased (see, L 1977, ch 221; L 1982, ch 519).

Article 13 does not confer authority upon the Public Administrator to act as the fiduciary in each and every estate for which the value of the gross estate is under $10,000. Instead SCPA 1303 (a) sets forth a list in order of priority of persons who may serve as a voluntary administrator. The list is different depending upon whether decedent dies leaving a will (apparently as here) or intestate. The Public Administrator’s right to act in a small estate comes only after a long list of other eligible candidates, which may include a named executor or executrix, beneficiary, fiduciary of a beneficiary, and/or family members. Accordingly SCPA 1115 was only intended to give the Public Administrator the powers of a fiduciary in those small estates in which the Public Administrator is otherwise eligible to serve under SCPA 1303.

Such interpretation of SCPA 1115 is consistent with the SCPA provisions relating to the powers of a Public Administrator in estates over $10,000. Thus SCPA 1118 and 1123 which set forth the general powers of the Public Administrator both before and after the issuance of letters have no application unless the Public Administrator is otherwise qualified to be the fiduciary under SCPA 1001 (8) (a).

There has been no showing at bar that the Public Administrator is otherwise the appropriate fiduciary to serve as a representative of this corespondent estate. This is not merely an academic concern on the part of the court or the Public Administrator. The HPD certificate of eviction informs us that in this very case there is a will as well as a daughter of decedent. If this court were to permit petitioner, essentially a stranger to the estate, to compel the Public Administrator to serve as a fiduciary and accept service of process simply because petitioner elected to serve the Public Administrator, [618]*618there could be no guarantee that the Public Administrator was otherwise the appropriate fiduciary within the intention of SCPA 1303 (a). Moreover, it is unclear on what basis petitioner claims the estate is actually less than $10,000.

Petitioner argues that once service is made it is for the Public Administrator to investigate and determine whether it is the appropriate fiduciary under the statute. This puts the proverbial cart before the horse. SCPA 1115 powers can only be effective if the Public Administrator is in the first instance the proper fiduciary under SCPA article 13.

Accordingly the court finds that SCPA 1115 does not permit a petitioner to designate the Public Administrator to accept service on behalf of the estate in the circumstances at bar.

Such interpretation of SCPA 1115 does not run afoul of the general principle stated in Matter of Pia (supra) that a Public Administrator cannot renounce an appointment. Here it is the failure to determine initial eligibility to serve which prevents SCPA 1115 from coming into play.

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Cite This Page — Counsel Stack

Bluebook (online)
156 Misc. 2d 614, 594 N.Y.S.2d 108, 1993 N.Y. Misc. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryerson-towers-inc-v-estate-of-brown-nycivct-1993.