Opinion
338889.
Decided July 26, 2006.
Kenneth Adler, Esq., Melville, NY, (Attorney for Petitioner).
Amy B. Siegel, Esq., Setauket, NY, (Attorney for Respondent).
This is a proceeding by a creditor for limited letters of administration seeking to enforce a judgment obtained against the decedent in the U.S. District Court, Eastern District of New York on February 9, 1996, the decedent's death having occurred a number of years later on April 22, 2002.
The judgment arises from an action commenced by the decedent, Richard D'Angelo, against State Farm Fire and Casualty Company ("State Farm") to compel State Farm to pay on D'Angelo's homeowner's insurance policy after a fire destroyed his residence. At trial, a jury found for State Farm on its counterclaim that D'Angelo, or his agent, had deliberately set fire to the residence. Judgment was awarded in the amount of $235,994.88, representing the sum that State Farm had paid to satisfy the mortgage on the premises. The U.S. Court of Appeals affirmed the judgment by summary order dated December 3, 1996.
On September 29, 1997, real property located in Huntington Station, New York, in which record title was in the name of the decedent was scheduled to be sold pursuant to an execution issued upon the judgment. However, on September 24, 1997, D'Angelo obtained a temporary stay of the sale pending the return day of the application to vacate the execution sale.
On December 16, 1998, the Supreme Court, Suffolk County vacated the stay and held that an attempted transfer of the Huntington Station property to D'Angelo's wife and to Titan Realty Corp. were ineffective and a fraud on creditors. The decision of the court in part states: "In the instant situation, Mrs. D'Angelo alleges that the deed [to her] went unrecorded for ten (10) years and was conveniently found on the evening of the Sheriff's Sale. This is contrary to the evidence and sworn testimony and is nothing more than a blatant attempt to defraud the judgment creditor." ( Rosemarie D'Angelo v. State Farm Casualty Co., Sup. Ct., Suffolk County, Dec. 16, 1998, Berler, J., Index No. 24047/97). The decision concludes by stating that the various transactions "may very well be tainted with criminal fraud" and refers the matter to the District Attorney of Suffolk County.
D'Angelo then began a series of three actions in the federal courts commencing in 1999 and ending in March of 2002 to vacate the judgment, each of which was denied, two of the decisions being affirmed by the U.S. Court of Appeals.
Following D'Angelo's death, State Farm commenced a proceeding in February of 2006 to extend the lien of the judgment under CPLR 5203(b) against the "Estate of Richard D'Angelo" and his son, also Richard D'Angelo. However, no representative of D'Angelo's estate having been appointed, the proceeding was dismissed. Consequently, the present petition by State Farm seeks the issuance of limited letters of administration.
The son, Richard, as a distributee has filed both verified objections and a motion to dismiss the administration proceeding on several grounds. Initially the objectant claims State Farm, not being "an interested person" is ineligible to petition for letters, citing SCPA 1002(1). While it is true that a creditor by definition (SCPA 103(39]) is not a "person interested," SCPA 1002(1) lists in the alternative several potential petitioners including "a creditor or person interested in an action brought or about to be brought in which the intestate . . . if living would be a proper party."
The argument is also made that since the decedent allegedly left no assets, administration of his estate is unnecessary. In Matter of Smith, ( 49 Misc 2d 897) a remarkably similar case, the court agreed with the argument that in the absence of any assets administration should generally not be granted, but went on to hold that "where a debt is claimed against a decedent by an alleged creditor, a representative must be named in order that a cause of action may be presented against the decedent's estate" ( Matter of Smith, 49 Misc 2d 897; see also, Matter of Garfinkel, 119 AD2d 911; Smith v. Planas, et al, 151 F.R.D. 547).
SCPA 702 specifically provides those instances in which limited letters of administration may be granted including "to the defense of any claim or cause of action against a decedent or his fiduciary" (SCPA 702) and "to the appearance in and conduct of an action in which a decedent or his fiduciary is a necessary or proper party" (SCPA 702).
Finally, the argument by the objectant that the ten (10) year lien of the judgment against the Huntington Station property has expired under CPLR 5203(a), or the contrary argument by State Farm that the period of the lien has been extended by various court-ordered stays thereby enabling an extension of a lien under CPLR 5203(b), are matters which must await further proceedings in the Supreme Court. The court, however, cannot fail but to make some observations. State Farm has so far sought to extend the lien of its federal money judgment under CPLR 5203(b), but the Supreme Court, Suffolk County decision and order of December 16, 1998 vacating the stay of an execution sale also held that the two deeds of the Huntington Station property, one to Mrs. D'Angelo, and the other to Titan Realty Corp., a corporation controlled by the decedent's son were ineffective. However, the holding that the two deeds were ineffective apparently has not been properly docketed against the Huntington Station property in the "block index" as is permissible under CPLR 5018(a), since the objectant claims a recent title search reveals that his corporation, Titan, holds title. However, CPLR 5019(a) authorizes the correction of judgments or orders to reflect the actual holding of the court (Siegel NY Prac [4th ed.] § 420). Moreover, while the life of a judgment as a lien against real property is 10 years (CPLR 5203[a]), the life of a judgment is 20 years (CPLR 211[b]; Siegel NY Prac [4th ed] § 434, 517). If the Supreme Court, Suffolk County Order of December 16, 1998 were properly docketed against the Huntington Station property, the realty would still be held by the decedent and absent any intervening encumbrances an execution could issue even after the expiration of the 10 year lien (CPLR 5235; Atlas Refining Co. v. Smith, 52 AD 109; Siegel, NY Prac [4th ed] § 517).
Being satisfied that there is occasion for the appointment of a representative in this estate, limited letters of administration will be granted to the public administrator unless an eligible distributee qualifies by August 4, 2006 (SCPA 1006).
This is the decision and order of the court.