Case ID: ad_54/html/0281-01.html
Source: Caselaw Access Project
Author: {"author": "O'Brien, J.:", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

In the Matter of the Judicial Settlement of the Account of William M. Hoes, Public Administrator of the County of New York, as Administrator, etc., of Patrick McElroy, Deceased, Appellant. Mary Dickey and Others, Next of Kin, Appellants; Catharine Shandley, Claimant, Respondent.
    
      Surrogate—power of, to order a reference to determine as to the rejection of a disputed claim and its being haired by the Statute of Limitations.
    
    An administrator served a person who had filed a claim against the estate with a notice stating “I doubt the justness and validity of your claim of §3,480 against the above-named estate, and I hereby consent that said claim be heard and determined by the surrogate upon the judicial settlement of my accounts as provided by section 2743 of the Code of Civil Procedure," indorsed “ notice of rejection of claim and consent to have surrogate hear and determine.” Four years later, upon the filing of the administrator’s accounts, the claimant united in and accepted the administrator’s consent to have the surrogate hear and determine the claim on the judicial settlement of such account.
    The surrogate thereupon made an order—reciting that the public administrator objected “to a reference on the ground that said claim was duly rejected by said administrator on the 19th day of August, 1896, and that no action on said claim had been begun within six months after such service, or a consent filed with the surrogate that said claim be heard upon the judicial settlement of the accounts of said administrator within a like period, and that said claim is now barred by the Statute of Limitation ” — which referred the claim to a referee “ to hear and determine the same and to report to this court with his opinion.”
    
      Held, that such order was proper under section 2546 of the Code of Civil Procedure.
    Appeal by William Hoes, public administrator of the county of Hew York, as administrator, etc., of Patrick McElroy, deceased, from an order of the Surrogate’s Court of the qounty of Hew York, entered in said Surrogate’s Court on the 10th day of August, 1900, directing a reference of the claim of Catharine Shandley against the estate of Patrick McElroy, deceased.
    Letters of administration upon the estate of Patrick McElroy, deceased, were granted to the public administrator on the 2Yth day of July, 1895. The claim of the respondent Catharine Shandley was filed with him July 10, 1896, and on July M and again on August 19, 1896, the .public administrator served on the claimant a printed paper in the following words : “ Ton will please take notice that I doubt'the justness and validity of your claim of $3,480 against the above-named estate, and I hereby consent that said claim be heard and determined by the surrogate upon the judicial settlement of my accounts as provided by.section 2743 of the Code of Civil Procedure.”
    Indorsed on this notice was the following: “Notice of rejection of claim and consent to have surrogate hear and determine.”
    A copy of the notice was filed with the surrogate by the administrator on the 21st of August, 1896. On May 4, 1900, the admiti- ■ istrator filed his account or proceeding, making the claimant a party, who then appeared and united in and accepted the administrator’s consent for the surrogate to hear and determine the claim on the judicial settlement.
    Thereupon the surrogate made the order referring the matter to a referee “ to hear and determine the same and to report to this court with his opinion.” and it is from the order thus made and entered that this appeal is taken by the administrator and by Others who are next of kin.
    This order recited, among other things, “ the attorney for the Public Administrator objecting to a reference on the ground that said claim was duly rejected by said administrator on the 19th day of August, 1896, and that no action on said claim had been begun within six months after such service, or a consent filed with the Surrogate that said claim be heard upon the judicial settlement of the accounts of said administrator within a like period, and that said claim is now barred by the Statute of Limitation.”
    
      Frank W. Arnold, for the administrator, appellant.
    
      M. J. Sneudaira, for the next of kin, appellants.
    
      Michael J. Kelly, for the claimant, respondent.
   O'Brien, J.:

With respect to maims presented to an executor or administrator three courses are open. He may, when the demand is made, formally or by acquiescence tacitly admit its justice and validity. He may reject the claim. Or, neither admitting nor rejecting it, he may consent as stated in section 1822 of the Code of Civil Procedure that “ said claim may be heard and determined by him (the surrogate) upon the judicial settlement of the accounts of said executor or administrator.” And where the claim is disputed or rejected, as provided in the same section, the claimant must commence an action for the recovery thereof * * * within six months after the dispute or rejection.”

Upon the accounting of the public administrator here, therefore, the question arose whether the claim of Catharine Shandley had been rejected, and if not, whether it was a valid one. To determine this issue, among others, the reference was ordered.

The contention of the appellants that the surrogate had no power to order the reference we regard as without merit for the reason that section 2546 of the Code of Civil Procedure expressly provides that In a special proceeding * * * the surrogate may in his discretion appoint a referee to take and report to the surrogate the evidence upon the facts or upon a specific question of fact, to examine an account rendered, to hear and determine all questions arising upon the settlement of such an account which the surrogate has power to determine, and to make a report thereon, subject, however, to confirmation or modification by the surrogate.”

It is reasoning in a circle to contend, because the necessary jurisdictional facts are, not before the surrogate, that he has no power to act, when the purpose sought by "‘"he reference is to ascertain the facts upon which his determination of the jurisdictional and other questions must depend. ■ As said in Matter of Pearsall (21 N. Y. St. Repr. 306): “ The claim that the surrogate had no power to determine this question, even if that could be considered now, is clearly without foundation, as it is only upon the existence of certain facts that the jurisdiction of the surrogate can be exercised.” So here, after the ascertainment of certain facts which the surrogate has undoubted power to obtain by means of a reference, he can determine, besides the others, the question of jurisdiction.

As shown by the order appealed. from, the public administrator-objected to a reference “ on the ground that said claim was duly rejected * * * and that no action on said claim had been begun within six months after such service, or a consent filed with the surrogate that said claim be heard upon the judicial settlement of the accounts of said administrator within a like period,, and that said claim is now barred by the Statute of Limitation.”

This question as to the Statute of Limitations, together with the others raised by the notice which had been served by the administrator, that he doubted “ the justness and validity of your claim, ” were the ones referred; and when the facts are found by the referee, the issues will again .come before' the surrogate for his determination. Thus it will be seen that the situation was one wherein the surrogate had power, under section 2546 of the Code of Civil Procedure, to appoint a referee.

We think, therefore, that the order- should be affirmed, with ten dollars costs and disbursements.

Van Brunt, P. J., Patterson, Ingraham and Hatch, JJ., concurred. -

Order affirmed, with ten dollars costs and disbursements.