Whiting v. Marine Midland Bank — Western

80 Misc. 2d 871, 365 N.Y.S.2d 628, 1975 N.Y. Misc. LEXIS 2278
CourtNew York Supreme Court
DecidedFebruary 27, 1975
StatusPublished
Cited by12 cases

This text of 80 Misc. 2d 871 (Whiting v. Marine Midland Bank — Western) 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
Whiting v. Marine Midland Bank — Western, 80 Misc. 2d 871, 365 N.Y.S.2d 628, 1975 N.Y. Misc. LEXIS 2278 (N.Y. Super. Ct. 1975).

Opinion

Edward M. Horey J.

On August 23, 1973, Leah Whiting executed a general statutory power of attorney naming as attorney in fact one Elsie Stuhlmiller a long time friend and a former business associate of Mrs. Whiting’s husband.

As they developed, the principal duties of the attorney in fact were to conduct all necessary business transactions for Mrs. Whiting with the Marine Midland Bank-Western, executor of the estate of Mrs. Whiting’s deceased husband.

All transactions between the attorney in fact and the executor bank relative to the estate administration were harmonious until April 3, 1974. At that time, upon advice of its attorneys, the executor bank refused to honor the power of attorney and ceased to recognize Mrs. Stuhlmiller as an authorized attorney in fact for Mrs. Whiting. This abrupt change of relationship and recognition resulted solely from advice given to the representatives of the executor bank and to the Surrogate’s Court of Cattaraugus County by one Flora H. Welch, Senior Patient Resource Agent for the Department of Mental Hygiene of the State of New York. That advice of Mrs. Welch was contained in a letter dated March 21, 1974 addressed to the Surrogate’s Court of Cattaraugus County with a copy to the Trust Officer of the executor bank. It stated as follows:

"This patient was admitted to Gowanda State Hospital December 29, 1973 and discharged to the Extended Care Facility of Tri County Hospital, Gowanda, on March 13, 1974. Prior to her discharge this office had requested that the Attorney General petition for the appointment of a committee. We strongly felt that a committee was needed in view of [873]*873the physician’s report indicating that the patient was mentally incapable of managing her own assets. (Emphasis added.)

"Under the will of Harry Whiting the patient inherited real property and was also named as beneficiary on a $100,000 trust and a residual estáte trust. By terms of the will the patient had the unqualified right to request withdrawals of the principal of the trust.

"We were unable to proceed with committee appointment as a result of the patient’s discharge. However, we did obtain a statement from the attending physician which clearly indicates that Leah Whiting cannot be considered capable of managing her own assets. I have discussed this with Mr. James Huber, Trust Officer at the Marine Midland Co. and I have urged him to consider presenting a petition for appointment of a conservator under Section 77 of the Mental Hygiene Law. We do not feel that an informal arrangement, such as power of attorney granted by the patient to an Elsie Stuhlmiller prior to her admission, should be continued. I am certain that Gowanda State Hospital would be willing to provide the necessary medical evaluations needed in conjunction with conservator appointment. [Emphasis added.]

"Please contact this office if you require any further information or assistance.”

Following receipt of the letter the Surrogate of Cattaraugus County, on his own motion, entered an order dated April 3, 1974 requiring the executor bank to advise that court of the status of the administration of the estate of Harry Whiting pending in that court; what, if any, steps were being taken to preserve the assets of that estate bequeathed and devised to Leah Whiting or placed in trust for her benefit and the position of the executor bank in reference to the validity of the power of attorney made by Leah Whiting in favor of Elsie Stuhlmiller.

Upon the return of the order the attorneys for the executor bank advised the Surrogate’s Court that upon receipt of the advice from the Department of Mental Hygiene and solely because of that advice the executor bank had refused and continued to refuse to honor the power of attorney. The attorneys further advised that the executor bank was going to seek appointment as a conservator of Leah Whiting. Motion by the executor bank that all proceedings in Surrogate’s Court be adjourned indefinitely was denied. The Surrogate ordered that the executor bank advise the court again on or before [874]*874July 1, 1974 of the status of the administration of the estate and the progress concerning the appointment of a conservator.

Apparently distressed over the status of the outstanding power of attorney of August 23, 1973 appointing Elsie Stuhlmiller her sole attorney in fact and contending her competency, Leah Whiting executed a second general statutory power of attorney on May 3, 1974. In this instrument she named as attorney in fact Elsie Stuhlmiller and Franklin Herdeg, a cousin of Leah Whiting.

On July 1, 1974, in proceedings in Surrogate’s Court of Cattaraugus County, the attorneys for the executor bank advised the court that the executor bank continued to refuse to honor either the power of attorney made by Leah Whiting, dated August 23, 1973, or the power of attorney later made and dated May 3, 1974. The attorneys further advised that the executor bank had elected not to seek the appointment of a conservator in view of the assertion of competency made by Leah Whiting.

Counsel appearing for Leah Whiting advised the Surrogate’s Court that the refusal of the executor bank to honor either power of attorney was causing damage and injury to Leah Whiting, among other reasons, by clouding the validity of a will which she had executed; by forestalling the sale of certain real property, and more particularly, by terminating trust income required for her care and maintenance.

Counsel for Leah Whiting and counsel for the executor bank both conceded to the Surrogate that the issue outstanding was the validity of the powers of attorney and that the resolution thereof required a determination of the mental competency of Leah Whiting. Both counsel advised that their research disclosed no basis for jurisdiction of a Surrogate’s Court to make the requisite determination. The court suggested that appropriate proceedings be immediately instituted in a court having the necessary jurisdiction and adjourned the matter for ope month for advice on the commencement of litigation and the further administration of the estate.

By a summons and complaint verified the 18th day of July, 1974 this action, in Supreme Court, for a declaratory judgment was commenced. The verified complaint made by Leah Whiting, Elsie Stuhlmiller and Franklin Herdeg, as plaintiffs, seeks a declaration of rights in reference to the power of attorney granted by Leah Whiting to Elsie Stuhlmiller on August 23, 1973 and also a declaration of rights in reference [875]*875to the second power of attorney granted by Leah Whiting on May 3, 1974 to the same Elsie Stuhlmiller and Franklin L. Herdeg.

The answer of the Marine Midland Bank-Western admits all allegations of the complaint, except the alleged impropriety of the bank’s refusal to honor either power of attorney. The defense is that all of the facts and circumstances surrounding the admission and subsequent retention of Leah Whiting at the State hospital for the mentally ill, proceedings for the appointment of a committee, together with the conduct of her cousin, Franklin Herdeg, and her friend, Elsie Stuhlmiller in reference thereto, are indications and acknowledgments of mental incompetency sufficient to revoke the first power of attorney and prevent the effective execution of the second one. The number and complexity of the applicable statutory laws and regulations, together with the general application and seriousness of the factual situation presented, merits examination in depth.

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Bluebook (online)
80 Misc. 2d 871, 365 N.Y.S.2d 628, 1975 N.Y. Misc. LEXIS 2278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whiting-v-marine-midland-bank-western-nysupct-1975.