Case Name: In the Matter of the Judicial Settlement of the Accounts of Harriet Rutledge, as Executrix of the Last Will and Testament of Walter Heard, Deceased. Harriet Rutledge, Individually and as Executrix et al., Appellants; Helen M. Collier, Contestant, Respondent
Court: New York Court of Appeals
Jurisdiction: New York
Decision Date: 1900-02-27
Citations: 162 N.Y. 31
Docket Number: 
Parties: In the Matter of the Judicial Settlement of the Accounts of Harriet Rutledge, as Executrix of the Last Will and Testament of Walter Heard, Deceased. Harriet Rutledge, Individually and as Executrix et al., Appellants; Helen M. Collier, Contestant, Respondent.
Judges: Bartlett, Vann and Cullen, JJ., concur with Gray, J., for affirmance: Martin and Werner, JJ., concur with Parker, Ch. J.
Reporter: New York Reports
Volume: 162
Pages: 31–42

Head Matter:
In the Matter of the Judicial Settlement of the Accounts of Harriet Rutledge, as Executrix of the Last Will and Testament of Walter Heard, Deceased. Harriet Rutledge, Individually and as Executrix et al., Appellants; Helen M. Collier, Contestant, Respondent.
(Argued January 23, 1900;
decided February 27, 1900.)
Executors and Administrators—Power of Surrogate to Dent Commissions. A surrogate may, in his discretion, upon the settlement of an executor’s accounts, deny him the statutory commissions if he has been guilty of misconduct, as the language of section 2730 of the Code of Civil Procedure, providing that on the settlement of the account of an executor or administrator, the surrogate “ must allow to him for his services ” the commissions fixed by law,'is not necessarily exclusive of all discretion in the surrogate, and its exercise should be left to him upon the facts.
Matter of Rutledge, 37 App. Div. 633, affirmed.
Appeal from an order of the Appellate Division of the Supreme Court in the fourth judicial department, made February 3, 1899, affirming a decree of the Surrogate’s Court of Ontario county settling the accounts of Harriet Rutledge, as executrix of the last- will and testament of Walter Heard, deceased.
The nature of the proceeding and the facts, so far as material, are stated in the opinion.
Henry M. Field for Harriet Rutledge, individually and as executrix, appellant.
The surrogate erred in refusing to credit executrix with her legal commissions, as fixed by section 2730 of the Code of Civil Procedure. (Cook v. Lowry, 95 N. Y. 103 : Story’s Eq. Juris. § 1272; Roosevelt v. Raphet, 6 Abb. [N. C.] 447.)
Frank Rice for Eliza C. Redhouse, executrix, and others, appellants.
John Gillette for Helen M. Collier, contestant, respondent.

Opinion:
Gray, J.
Hpon the accounting of this executrix, objections were filed and a hearing had before the surrogate, who rendered his decision with findings of fact and conclusions of law; upon which a final decree,, of the Surrogate's Court for the county of Ontario, was duly entered, which judicially stated and settled the account. Hpon ajppeal, the decision was unanimously affirmed by the Appellate Division, in the fourth department, and appeals were taken by- the executrix and by other parties interested in the estate, and in its distribution, to this court.
I think no error has been presented, which, in view of the unanimous affirmance of the decree of the Surrogate's Court, would warrant a reversal of the order and that it should be affirmed. The only question, demanding any consideration by this court, arises upon the exception of the executrix to the surrogate's conclusion that she was not entitled to commissions. There had been the finding of fact that she " did not give proper personal attention to the estate she had in charge, but delegated to her counsel duties which were imposed upon her as such executrix, knowing that he represented conflicting interests." The question is whether a surrogate has the power to withhold commissions upon the facts of the case; or whether he is without discretion in the matter and must, in all cases, allow commissions at the rate fixed by the statute.
It may be that this question is still open to us : but I do not think that it can be said that the question of the right to deny commissions was not deliberately passed upon in Stevens v. Melcher (152 N. Y. 583). The point was distinctly made by counsel in that case that "the General Term erred in affirming the judgment of the Special Term and referee in refusing to allow commissions to Mrs. Stevens." Mrs. Stevens was the executrix, whose commissions were in question, and it was claimed, in answer to the appellants' point, that, under the facts found by the referee, his conclusion as matter of law that Mrs. Stevens was not entitled to commissions, necessarily, followed. The controversy with respect to commissions was discussed in the opinion; which, after referring to the facts which the referee had found relative to the manner in which Mrs. Stevens had discharged her duties as executrix, held that, upon the findings, the conclusion of the referee should be sustained.
In Wheelwright v. Rhoades, (28 Hun, 57), which related to the settlement of the accounts of executors, it was said by Davis, P. J., delivering the opinion of the General Term, in the first department, that " it is in the power of the surrogate or court to deny all commissions where there has been misconduct on the part of executors, resulting in losses to the estate greater than the lawful compensation. And executors may be personally charged with losses and injuries prejudicial to their trust, and' denied commissions altogether, in the sound discretion of the court, in cases deserving great severity of censure."
In Matter of Curtiss, (9 App. Div. 285), the Appellate Division, in the second department, affirmed a decree of the surrogate upon his opinion. Surrogate Silkman, in that opinion, used this language: " Under the provisions of the code as they exist, there is no power to deny such commissions, except for misconduct on the part of the executor or trustee."
In Matter of Estate of Harnett, (15 N. Y. St. Rep. 725), Surrogate Ransom held that the administratrix should be denied commissions; because she had been grossly delinquent in her administration of the estate.
It is sought to make a distinction between what a court of equity may do and what the Surrogate's Court, being one of limited jurisdiction, may do with respect to executor's commissions. It is said that while a court of equity, with its general powers and jurisdiction, might withhold commissions, in its discretion; a Surrogate's Court, for .the lack of those powers, is under the strict mandate of the statute. The provision of the statute, which is found in section 2730 of the Code, reads that, " On the settlement of the account of an executor or administrator, the surrogate must allow to him for his services," etc, and it is argued that in that language there is no room for the suggestion that anything is left to the discretion of the surrogate. I do not feel so confident, however, that the language requires of us that we read it with such strictness. , Is there not an implication that services must have been rendered and, further, that the services must have been beneficial to the estate ? If no services were rendered and the executor, or administrator, was delinquent in that respect; or if the services were such as were prejudicial to the just and lawful administration of the estate, then, were there such services rendered to the estate, for which the surrogate must allow commissions ? I doubt it and I doubt if there be any good reason for our making the distinction which is contended for. I cannot think that, where the authority for commissions to an executor, or administrator, depends upon one statutory provision, they may be denied, if the accounting happens to be in a court of equity, and must, under all circumstances, be allowed, if the accounting happens to be in the Surrogate's Court.
I am of the opinion that the language of the statute is not necessarily exclusive of all discretion in the surrogate and that its exercise should be left to him.upon the facts; in the review of which by the Appellate Division ample opportunity for correction is afforded. I do not know that there is any public-policy involved in this matter and, yet, it seems to me that a' better policy is subserved by making the allowance of com-' missions to executors and administrators to depend upon the faithful rendition of services by them and by giving such a construction to the section of the Code in question, as will vest some discretion in the surrogate upon the subject.
The order appealed from should be affirmed; with costs to all parties appearing in this court by counsel and filing briefs, payable out of the estate.