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This entry was published on 2014-09-22
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SECTION 1807
Effect of allowance of claim by fiduciary 1
Surrogate's Court Procedure Act (SCP) CHAPTER 59-A, ARTICLE 18
§ 1807. Effect of allowance of claim by fiduciary

1. Whenever a fiduciary shall allow a claim other than the fiduciary's
own the validity of the claim shall thereby be established, but if it
shall appear that the claim was improperly allowed or was fraudulently
or negligently paid, any party adversely affected thereby may file
objections thereto in any proceeding for the judicial settlement of the
account of the fiduciary. A copy of the objections shall be served upon
all parties who have appeared and if the claimant has not appeared a
copy shall be served upon the claimant personally or by mail. If the
court sustains the objections the claim shall thereupon be dismissed if
it has not been paid. If it has been paid, in whole or in part, and an
amended petition or objections request a direction that the claimant
repay to the fiduciary of the estate any amount of the estate assets
determined on the settlement of the account to have been paid to a
claimant as a result of fraud, negligence or collusion and if a
supplemental citation to this effect was issued and served upon the
claimant, then the court, is authorized in the accounting decree to
direct repayment by the creditor of the excess to the fiduciary of the
estate and may, in addition, impose a surcharge against the fiduciary or
otherwise as justice shall require. If there is no amended petition or
answer requesting a direction that the claimant repay the amount of
estate assets determined to have been paid as a result of fraud,
negligence or collusion then a surcharge shall be imposed against the
fiduciary in the amount the estate has been damaged by such fraud,
negligence or collusion.

2. In such accounting proceeding a party adversely affected may show
that a judgment on a claim against a fiduciary was obtained by fraud,
negligence or collusion. If the court determines that the judgment was
so obtained, a surcharge shall be imposed against the fiduciary in the
amount the estate has been damaged by such fraud, negligence or
collusion.