Schorner v. Schorner

128 Misc. 2d 415, 488 N.Y.S.2d 575, 1985 N.Y. Misc. LEXIS 2938
CourtNew York Supreme Court
DecidedApril 2, 1985
StatusPublished
Cited by3 cases

This text of 128 Misc. 2d 415 (Schorner v. Schorner) 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
Schorner v. Schorner, 128 Misc. 2d 415, 488 N.Y.S.2d 575, 1985 N.Y. Misc. LEXIS 2938 (N.Y. Super. Ct. 1985).

Opinion

OPINION OF THE COURT

Bernard F. McCaffrey, J.

At the outset, the court notes that until such time as the Legislature acts to bring into the twentieth century the amount of compensation the court may award for services rendered by referees appointed to sell real property pursuant to a judgment in a mortgage foreclosure or partition action, the court has no alternative but to limit such awards to the unrealistic statutory amounts of $200 in foreclosure actions and $500 in partition actions.

[416]*416The case at bar involves the application of a statute, a portion of which has not been substantially changed in over 125 years and which establishes compensation of a referee in a partition action sale of real property and a request under provisions of the CPLR for so-called “Additional costs” to be applied toward counsel fees in the same action. Said allowances, although intended by the Legislature to compensate a party for litigation expenses and which are permitted as of right, do not appear to be geared to today’s costs.

Pursuant to the order of this court dated January 17, 1985 (Wager, J.), a hearing was held in this partition action to determine if there should be confirmation of the referee’s report of sale which includes an award of fees to the referee in the sum of $4,540. In addition, the aforesaid order requires the court to determine if the plaintiff is entitled to reimbursement for approximately $22,000 for expenditures made by plaintiff for maintenance of the subject property over a period of time and whether plaintiff’s attorney is entitled to an award in the sum of $11,000 as and for plaintiff’s attorney’s fees in this action. The defendant defaulted and did not appear in the partition action.

The parties were divorced pursuant to a judgment of divorce granted August 10, 1982 (Miller, J.), at which time no disposition was made of the marital abode which had been held by the parties as tenants by the entirety. In the instant partition action brought by the plaintiff, the rights, shares and interests of the parties in the property in question were ascertained by the referee appointed for that purpose and included in the interlocutory judgment entered June 13, 1984 (Levitt, J.) to the effect that the plaintiff is seized in fee simple absolute of an equal undivided one-half interest as tenant in common with defendant herein, who is likewise seized in fee simple absolute of an equal undivided one-half interest therein, as tenant in common, subject to the following charges and encumbrances: (1) First mortgage (Bayside Federal Savings and Loan Association) outstanding in amount of $32,328.06; (2) Second mortgage (Small Business Administration) outstanding in amount of $62,746.65; (3) $13,178.11 representing expenditures made by plaintiff for upkeep and maintenance of the property to November 16, 1983 payable to plaintiff with the amount paid by plaintiff for the upkeep and maintenance of the property from November 16, 1983 to sale of property to be paid to plaintiff after said sum has been determined upon sale.

Said interlocutory judgment also provided for the balance, if any, of the proceeds of the sale to be payable to plaintiff and [417]*417defendant by the referee subject to disposition to be made by the court in a final judgment herein which shall provide for the allocation of costs and disbursements.

As indicated above, the application of the plaintiff to confirm the referee’s report of sale, the referee’s fees and the upkeep and maintenance costs of the property from November 16, 1983 to the sale, and the plaintiff’s request for attorney’s fees could not be determined on papers, and thus a hearing was required which was held before the court on February 20, 1985.'

It should be noted that the interlocutory judgment already had determined that the plaintiff was entitled to reimbursement in the amount of $13,178.11 from the eventual proceeds of the sale for expenditures made by plaintiff for the upkeep and maintenance of the premises up to November 16, 1983. Thus, where the order of Mr. Justice Wager setting the matter down for hearing indicated that the plaintiff seeks reimbursement of sums exceeding $22,000 for said expenditures over a period of time, it was already determined by Mr. Justice Levitt that plaintiff was entitled to $13,178.11 up to November 16, 1983 with the amount subsequent to that date up to the sale of the premises still to be determined. At the hearing of February 20, 1985 the plaintiff testified that he had expended the additional sum of $9,206.83 for the upkeep and maintenance of the premises and the plaintiff was awarded that sum, making a total award to plaintiff for his expenditures in maintaining the subject premises during the period August 12, 1982 through November 26, 1984 in the sum of $22,384.94.

Turning now to the award of fees requested by the referee in the sum of $3,646.90, the court notes that the referee’s request for fees and commissions originally was in the amount of $4,540 and this request had the approval of the plaintiff and the plaintiff’s attorney as being appropriate with the further request that same be approved by the court. Following the hearing, this request was revised to $3,646.90 which included $179.40 for incurred costs.

The referee indicates that this matter was rather difficult and unusual, pointing out that there were some 33 bids accepted at the time of sale with a sale price of $202,000. An escrow agreement had to be entered into concerning the distribution and payoff of the lienors on the property, as well as a division of the proceeds between the parties herein subject to the court order. In addition, all the figures will have to be recomputed. Further, it is contended that the partition sale caused problems concerning occupancy being given to the purchaser after the [418]*418final sale. Costs were incurred of $179.40 and total time spent was calculated at 18 hours, 48 minutes, with another four hours estimated to complete his activities in this matter. The referee’s usual hourly billing rate is $200 per hour. Said data is contained in an affirmation of services submitted on February 26, 1985; the referee also testified at the hearing.

The referee refers the court to CPLR 8003 (b) to the effect it indicates that a referee appointed to take security upon the sale and distribute, apply and report upon the distribution of any of the proceeds of the sale is entitled to one half of the commission upon the amount distributed as are allowed to an executor or administrator for receiving and paying out money. Thus, the referee applies the schedule for commissions in SCPA 2307 (1) and establishes his fees on the basis of 4% of the first $25,000 ($1,000), 31/2% of the next $125,000 ($4,375) and 3% of the next $52,000 ($1,560), for a total of $6,935, one half of which is $3,467.50.

Notwithstanding the fact the above percentages do not reflect the proper schedule in effect under SCPA 2307 (1), the court does not accept the application of same to the extent it is sought to be applied by the referee. CPLR 8003 (b), upon which the referee relies, indicates in the last sentence of the said subdivision as follows: “A referee’s compensation, including commissions, upon a sale pursuant to a judgment in an action to foreclose a mortgage cannot exceed two hundred dollars, or pursuant to any other judgment, five hundred dollars, unless the property sold for ten thousand dollars or more, in which event the referee may receive such additional compensation as to the court may seem proper.” (Emphasis supplied.)

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Cite This Page — Counsel Stack

Bluebook (online)
128 Misc. 2d 415, 488 N.Y.S.2d 575, 1985 N.Y. Misc. LEXIS 2938, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schorner-v-schorner-nysupct-1985.