NY Est Pow & Trusts L § 5-4.6 (2021)
2021 New York Laws EPT - Estates, Powers and Trusts Article 5 - Family Rights Part 4 - Rights of Members of Family Resulting From Wrongful Act, Neglect or Default Causing Death of Decedent 5-4.6 - Application to Compromise Action

§ 5-4.6 Application to compromise action  (a) Within sixty days of the application of an administrator appointed under 5-4.1 or a personal representative to the court in which an action for  wrongful act, neglect or default causing the death of a decedent is pending, the court shall, after inquiry into the merits  of  the  action and the amount of damages proposed as a compromise either disapprove the application  or  approve  in  writing a compromise for such amount as it shall determine to be adequate including approval of attorneys fees  and other payable expenses as set forth below, and shall order the defendant to  pay  all sums payable under the order of compromise, within the time frames set forth in section five thousand three-a of the civil  practice law  and  rules,  to  the  attorney  for  the  administrator or personal representative for placement in an interest bearing escrow  account  for the  benefit  of  the distributees. The order shall also provide for the following:  (1) Upon collection  of  the  settlement  funds  and  creation  of  an interest  bearing  escrow account, the attorney for the administrator or personal representative shall pay from the account all due  and  payable expenses,  excluding  attorneys  fees,  approved  by  the court, such as medical bills, funeral costs and other liens on the estate.  (2) All attorneys fees approved by the court for  the  prosecution  of the  action  for  wrongful  act,  neglect  or  default, inclusive of all disbursements, shall be immediately payable from the escrow account upon submission to the  trial  court  proof  of  filing  of  a  petition  for allocation  and  distribution  in the surrogate's court on behalf of the decedent's estate.  (3) The attorney for the administrator or personal  representative  in the  action  for  wrongful  act, neglect or default who receives payment under this section shall continue to serve as attorney  for  the  estate until the entry of a final decree in the surrogate's court.  (b)  If  any of the distributees is an infant, incompetent, person who is incarcerated or person under disability, the  court  shall  determine whether a guardian ad litem is required before any payments are made, in which case the court will seek an immediate appointment of a guardian ad litem  by the surrogate's court or, if the surrogate's court defers, the court shall make such  appointment.  Any  guardian  appointed  for  this purpose  shall continue to serve as the guardian ad litem for the person requiring same for all other purposes.  (c) The filing fee in the surrogate's court shall be computed based on the amount of the gross estate prior to any  payments  made  under  this paragraph.  (d) The written approval by such court of the compromise is conclusive evidence  of  the  adequacy  of  the compromise in any proceeding in the surrogate's court for the  final  settlement  of  the  account  of  such administrator or personal representative.  (e)  Nothing  in this section shall be deemed to preclude the attorney for the administrator or personal representative  from  petitioning  the surrogate's  court  for  approval of a compromise and for allocation and distribution thereof.  (f) No letters of administration shall be issued which will in any way serve to abrogate the rights  or  obligations  of  an  administrator  or personal  representative or an attorney representing an administrator or personal representative under this section.