In re Estate of Peters

• Decision Date: 02 October 2015
• Docket Number: 917 CA 14-01287.
• Citation: 17 N.Y.S.3d 805,2015 N.Y. Slip Op. 07083,132 A.D.3d 1250
• Parties: In the Matter of the ESTATE OF David C. PETERS, Coreen N. Thompson, Administratrix CTA, Petitioner–Respondent; Joan Peters, Objectant–Appellant. (Appeal No. 3.)
• Court: New York Supreme Court — Appellate Division

132 A.D.3d 1250

17 N.Y.S.3d 805

2015 N.Y. Slip Op. 07083

In the Matter of the ESTATE OF David C. PETERS Coreen N. Thompson, Administratrix CTA, Petitioner–Respondent; Joan Peters, Objectant–Appellant. (Appeal No. 3.)

917 CA 14-01287.

Supreme Court, Appellate Division, Fourth Department, New York.

Oct. 2, 2015.

Colucci & Gallaher, P.C., Buffalo (Molly M. Krauza of Counsel), for Objectant–Appellant.

Law Offices of John P. Bartolomei & Associates, Niagara Falls, D.J. & J.A. Cirando, Esqs., Syracuse (John A. Cirando Of Counsel), for Petitioner–Respondent.

PRESENT: SCUDDER, P.J., SMITH, CENTRA, PERADOTTO, AND CARNI, JJ.

OpinionMEMORANDUM:

In his last will and testament (will), David C. Peters (decedent), who was a citizen of the Tonawanda Seneca Nation (Nation), attempted to devise real property located within the Tonawanda Seneca Nation Territory or Reservation (Territory) to petitioner, and to bequeath a business known as Arrowhawk Smoke and Gas Shop and all of its assets (hereafter, businesses), to petitioner and Thomas Peters. Objectant, however, claimed ownership of the real property and the businesses. Petitioner is decedent's daughter, objectant is decedent's mother, and Thomas Peters is decedent's brother. The will also contained an in terrorem clause, directing that if anyone named in the will acted in any manner to oppose the probate of the will or “to impair, invalidate or set aside the [will] or any of its provisions,” any provisions for the benefit of that person would be revoked and that person would cease to have any “right, title, or interest in or to any portion of [decedent's] estate.” Following decedent's death, multiple petitions and/or complaints related to the probate of decedent's will were filed in Surrogate's Court, federal court, and this Court (see e.g. Matter of Peters, 124 A.D.3d 1266, 1 N.Y.S.3d 604 ; Matter of Tonawanda Seneca Nation v. Noonan, 122 A.D.3d 1334, 996 N.Y.S.2d 446, lv. granted 25 N.Y.3d 903, 2015 WL 1471820 ; Peters v. Noonan, 871 F.Supp.2d 218 ).

The focus of many of the court proceedings was the issue whether the Surrogate could exercise jurisdiction over property and businesses located in the Territory and objectant's claims that she owned the real property and businesses.

Insofar as relevant to this appeal, petitioner, who was appointed administratrix, C.T.A., after the coexecutors were removed, filed a petition (Petition I) seeking forfeiture and disgorgement of any bequests to objectant based on objectant's alleged violation of the in terrorem clause. Petitioner also filed a petition (Petition L) seeking a declaration of estate assets and, in particular, seeking a declaration that the businesses discussed in the will were assets of decedent's estate. Objectant objected to Petition I and filed a motion seeking to dismiss Petition L and to intervene in that proceeding.

In appeal No. 1, objectant appeals from an order in which Surrogate's Court granted Petitions I and L, thereby determining that the businesses were assets of the estate and that objectant had violated the in terrorem clause of the will by claiming ownership of the businesses. Appeal Nos. 2 and 3 are appeals from the Surrogate's ensuing decrees related to that order.

As a preliminary matter, we note that the appeal from the order in appeal No. 1 “must be dismissed because the right of direct appeal therefrom terminated with the entry of the decree[s] in the proceeding” (Matter of Winters, 84 A.D.3d 1388, 1388, 923 N.Y.S.2d 730 ; see Matter of Beiny, 16 A.D.3d 221, 222, 792 N.Y.S.2d 24, lv. denied 5 N.Y.3d 710, 804 N.Y.S.2d 34, 837 N.E.2d 733 ).

With respect to appeal Nos. 2 and 3, we agree with objectant that the Surrogate erred in summarily granting the petitions. All Surrogate's Court proceedings are special proceedings (see SCPA 203 ) and, in special proceedings, the court or Surrogate “shall make a summary determination upon the pleadings, papers and admissions to the extent that no triable issues of fact are raised. The court [or Surrogate] may make any orders permitted on a motion for summary judgment” (CPLR 409[b] ; see SCPA 102 ). Thus, if no triable issues of fact are raised, the Surrogate “must make a summary determination on the pleadings and papers submitted as if a motion for summary judgment were before it” (Matter of Korotun v. Laurel Place Homeowner's Assn., 6 A.D.3d 710, 712, 775 N.Y.S.2d 567 ; see Matter of Bahar v. Schwartzreich, 204 A.D.2d 441, 443, 611 N.Y.S.2d 619 ). Even assuming, arguendo, that petitioner met her initial burden of proof with respect to both petitions, we conclude that objectant raised triable issues of fact whether the businesses were assets of the estate and whether, by claiming ownership of the businesses, objectant violated the in terrorem clause.

Petitioner submitted documentary evidence establishing that decedent was the owner, sole incorporator, and/or sole proprietor of...